UNIVERSITI TEKNOLOGI PETRONAS

PETROLEUM ENGINEERING DEPARTMENT

Section 1
Overview of Drilling
Operations
PAB 2033 DRILLING ENGINEERING MAY 2013
Learning Objectives
To explain the importance of drilling in exploration,
appraisal and development of a field
To understand different well types
To explain the steps involved in drilling and completing
a well
To identify major cost elements when drilling a well

PAB 2033 DRILLING ENGINEERING MAY 2013
Contents
1.1 Why we drill a well?
1.2 Drilling history
1.3 Field life cycle
1.4 Well types; exploration, appraisal, development etc.
1.5 Drilling process
1.6 Drilling economics

PAB 2033 DRILLING ENGINEERING MAY 2013
1.1 Why we drill a well?
To gather information
- For subsurface evaluation
To produce hydrocarbon
- To get oil and gas
To inject gas or water
- Reservoir maintenance
- Gas conservation
To kill a well
- To regain control of a blow out
To get geothermal power
- To produce steam for electricity
PAB 2033 DRILLING ENGINEERING MAY 2013
1.2 Drilling history
When was the first well drilled?
- Worldwide
- Malaysia
- PETRONAS
Question 1.2
PAB 2033 DRILLING ENGINEERING MAY 2013
1.2 Drilling history
Worldwide
First commercial well was drilled in USA in 1859
Drilled by Col Edwin L. Drake
Answer 1.2
PETRONAS
First well was for Duyong field in August 1980
Drilled by PETRONAS Carigali Sdn. Bhd.
PAB 2033 DRILLING ENGINEERING MAY 2013
1.2 Drilling history
Answer 1.2
Malaysia
First well was drilled in Malaysia was in 1910
Drilled by Shell in Miri (Canada Hill) aka Grand Old Lady
PAB 2033 DRILLING ENGINEERING MAY 2013
1.2 Drilling history
Appreciate history!
PAB 2033 DRILLING ENGINEERING MAY 2013
1.3 Field Life Cycle
Wild Cat
Appraisal/ Delineation
Acquisition
Exploration
Development
Production
Abandonment
Water/Gas/Combination injection well
Production well
Infill well
Work over
PAB 2033 DRILLING ENGINEERING MAY 2013
1.4 Well Types
Exploration wells
Wild Cat
The first exploration well drilled in a new field with no
offset well information available to obtain data and
prove hydrocarbon presence.

Appraisal/ Delineation
The subsequent wells drilled after a wild cat well to
further assess the field and confirm its commerciality.
PAB 2033 DRILLING ENGINEERING MAY 2013
1.4 Well Types
Exploration wells
Exploration well is the
only way to prove that
hydrocarbon are
present
Followed by appraisal
and development wells
PAB 2033 DRILLING ENGINEERING MAY 2013
1.4 Well Types
Development wells
Oil and/or gas producer
Drilled to produce the hydrocarbon, oil and/or gas
Water injector
Drilled for reservoir pressure maintenance
Gas injector
Drilled for reservoir pressure maintenance or gas conservation
(avoid flaring of gas, prohibited under certain environmental
conditions)
Combination wells
Combination of the above e.g. oil producer with gas injector or
appraisal development wells
PAB 2033 DRILLING ENGINEERING MAY 2013
1.4 Well Types
Other wells
Geothermal well
Drilled in volcanic areas to inject water and produce steam to
generate electricity
Water well
To produce water for daily activities or source of mineral water
Drilling cuttings disposal
Use to reinject cutting into formation for disposal
PAB 2033 DRILLING ENGINEERING MAY 2013
1.5 Drilling process
Drilling proposal and Drilling program
Drilling proposal is prepared by the geologist and
reservoir engineer in the operating company
- Provides information how the well will be designed and the
drilling program will be prepared.
PAB 2033 DRILLING ENGINEERING MAY 2013
1.5 Drilling process
Drilling proposal and Drilling program
Drilling program is prepared by the Drilling Engineer
- Type of drilling rig
- Proposed location
- Hole sizes and depths
- Casing sizes and depths
- Drilling fluid specification
- Directional drilling information
- Well control equipment and procedures
- Bits and hydraulics program
PAB 2033 DRILLING ENGINEERING MAY 2013
1.5 Drilling process
1. Rig up
PAB 2033 DRILLING ENGINEERING MAY 2013
1.5 Drilling process
2. Making hole by drilling
3. Setup the casing
4. Cement the annulus
PAB 2033 DRILLING ENGINEERING MAY 2013
1.5 Drilling process
5. Repeat steps 2,3 and 4 using smaller drill bit and casing
PAB 2033 DRILLING ENGINEERING MAY 2013
1.5 Drilling process
6. When reached the target, clean the well.
7. Install the production casing
PAB 2033 DRILLING ENGINEERING MAY 2013
1.5 Drilling process
Typical well configuration
PAB 2033 DRILLING ENGINEERING MAY 2013
1.6 Drilling economics
Drilling costs in Field Development
It can make up 25-35% of total development costs for
offshore field.
Any delays can give serious impact on the economic
feasibility of the development
Operators are anxious to reduce the lead time to a minimum
One well can cost up to more than $10 millions
PAB 2033 DRILLING ENGINEERING MAY 2013
1.5 Drilling process
Drilling operations
PAB 2033 DRILLING ENGINEERING MAY 2013
1.6 Drilling economics
Drilling costs in Field Development
Cost
($ million)
Platform structure 230
Platform equipment 765
Platform installation 210
Development
drilling
475
Pipeline 225
Onshore facilities 50
Miscellaneous 120
Total 2,075
Table 1: Estimated development costs for a field
PAB 2033 DRILLING ENGINEERING MAY 2013
1.6 Drilling economics
Drilling costs estimates
Before drilling program is approved it must contain an
estimate of the overall costs involved
In new area, well cost can only be a rough approximation
In most cases, reasonable approximation can be made based
on previous well data available.
Types of drilling costs;
Time-related cost Drilling contract, transport,
accommodation, fuel, power
Depth-related cost Casing, cement, bits,
Fixed cost Wellhead, equipment,
Special/contract cost perforation, etc
PAB 2033 DRILLING ENGINEERING MAY 2013
Review
Why we drill a well?
Drilling history
Field life cycle
Well types; exploration, appraisal, development etc.
Drilling process
Drilling economics