SPE 117432

Well Design, Execution & Collaboration: An Operators Tool for the Planning
and Drilling of a Deepwater Gulf of Mexico Well
John L. Breidenthal, Chevron, SPE, and Christopher A. Ochterbeck, Landmark

Copyright 2008, Society of Petroleum Engineers

This paper was prepared for presentation at the 2008 Abu Dhabi International Petroleum Exhibition and Conference held in Abu Dhabi, UAE, 36 November 2008.

This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents of the paper have not been
reviewed by the Society of Petroleum Engineers and are subject to correction by the author(s). The material does not necessarily reflect any position of the Society of Petroleum Engineers, its
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Abstract

As Exploration and Production (E&P) companies look to drill in record-setting water depths, facing extreme conditions and

ever-increasing technical challenges, they will need the best people, processes and technology available in the petroleum

industry. To compensate for this, Chevrons Deepwater Exploration and Production (DWEP) Business Unit undertook a

project to optimize the use of their unique project management process, the Chevron Project Development and Execution

Process (CPDEP). This project, called the Well Design, Execution and Collaboration Center (WellDECC), is a combination of

people, processes, and technology working to use, align with and augment CPDEP throughout DWEP. This paper outlines the

basic CPDEP phases and how WellDECC supports and enhances this process.

The CPDEP consists of five phases: identify and assess opportunities, generate and select alternatives, develop preferred

alternatives, execute, and operate and evaluate. Chevron initially developed its current process in the upstream side of the

business and ultimately adapted it for all projects. WellDECC was created using this process in 2004 with the primary

objective of bolstering CPDEP within DWEP. WellDECC is currently in the last stage, operate and evaluate, as we enter 2008.

In recent years, sharply increasing water depths have been accompanied by similar increases in technical challenges and

drilling costs; a robust project management process is essential for success in this environment. Chevron Drilling and

Completion (D&C) and the Geological and Geophysical (G&G) communities came together and developed the concept of

WellDECC to be fully engaged in each of these phases.

One of the important considerations when planning WellDECC was the selection of an operating platform that would
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seamlessly integrate cross-functionality to best support CPDEP. Halliburton (Landmark and Sperry Drilling Services) was

ultimately selected as the primary provider for WellDECCs tools and support. By combining 3-D earth-model visualization,

well-construction engineer tools, real-time telemetry functions, real-time drilling parameters, Logging While Drilling (LWD)

viewing and data storage, WellDECC has the people, processes and technology to best accomplish its mission.

The CPDEP Phases

Phase 1: Identify and Assess Opportunities

The initial phase of CPDEP in the Deep Water Business Unit starts with prospect recognition within the G&G community.

Outside of providing assistance with basic information and geodata management, WellDECCs involvement remains very

limited in supporting this phase. During initial planning of WellDECC, it was determined that the scope of Phase 1 was too

broad for significant value to be added through its services.

However, as part of the creation process, it was also determined that adequate facilities are needed for effective planning and

collaboration when identifying and assessing opportunities. In this early, conceptual phase, a workspace is needed where earth

scientists can visualize their state-of-the-art earth model and discuss regional trends and possible hydrocarbon accumulations.

Equipped with the latest technology, the Visualization Center centers around three rear-projected screens in a room with

seating capacity for approximately 50 people. In the largest of the WellDECC facilities, the Visualization Center has high-

performance Windows and Linux machines and three cameras set up to enable video-conferencing. It is this functionality that

has enabled effective presentations of opportunities to both senior management and partners, both of which are critical steps in

Phase 1 of CPDEP.

Phase 2: Generate and Select Alternatives

CPDEP Phase 2 is the initial process of refining project objectives and adding to the possible alternatives.

WellDECCs philosophy is that the best solutions are derived from a diverse team of subject matter experts using the best

tools, technologies and processes. Utilizing this philosophy from the start of Phase 2 is a large group of diverse professionals,

including geophysicists, geologists and experienced representation from D&C. Early collaboration between G&G and D&C is
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essential due to the compounding benefit of good project planning and execution. A prime example of this is when alternatives

that G&G might favor may be risky from a drilling perspective and, conversely, D&C may promote a less risky alternative that

may not meet geological goals of the well. One of the main steps of CPDEP Phase 2 is the building of a three-dimensional

earth model. Using this model, all formation issues and refined well objectives are discussed, including formation evaluation

plans, pore pressures, fracture gradients, well bore stability, offset wells, coring and sidetracking possibilities.

For 3-D visualization, WellDECC utilizes an integrated viewer and well planning module. When selecting an integrated

viewer it was important that it can be used to visualize large amounts of data from various software sources that the G&G

community uses. In addition to effectively displaying well data from the project database management system, such as wells in

multiple projects, log curves, picks, and dip-meter information, the viewer also integrates two- and three-dimensional seismic

volumes and horizons with Computer-Aided Design (CAD) and earth-model data. One key feature of this particular software

is the inclusion of graphical symbols that are placed along drilled or proposed well paths in the area of interest that represent a

particular event that occurred or should be expected during drilling. For example, if a previously drilled well in the area

experienced a kick at a certain depth, then the kick icon would be seen on that wells path in the 3-D model at the correct

depth. Further information about that event can be seen by clicking on the icon which brings up the drilling report for the

event or other attached files. Being able to see local problems when planning a new well not only enhances the collaborative

well-planning session but can lead to a significant reduction of costly non-productive time (NPT) by anticipating potential

problems.

WellDECC includes a Collaboration Room where the predefined opportunities and their alternatives are further visualized,

debated, altered and optimized. The room itself is large enough to comfortably accommodate up to 15 participants seated in

front of a large screen displaying up to three rear-projected images. The Collaboration Room was designed so that discussions

amongst the diverse team members and involvement of WellDECCs subject matter experts can take place in a more effective

small-group/team environment while having all of the technological advantages of the much larger Visualization Center.

During Phase 2, several key processes take place that result in the selection of the optimal alternative. The key objectives of

the well, called the Value Based Well Objectives, and the risks associated with each plan are analyzed. At this time,

WellDECC is relied upon heavily to do calculations on each alternative for detailed review by the team. By using an integrated

suite of software that bridges the earth science and engineering domains, significant value is added by improving the quality of

and expediting the time taken for every iteration. The collaborative setting and visual atmosphere of WellDECC greatly assists
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in achieving the desired outcome of Phase 2, which is consensual team agreement on the optimal preferred alternative.

Phase 3: Develop Preferred Alternative

Having generated alternatives to a proposal and narrowed these based on the well objectives, its time to fully develop the

preferred alternative. Just as in Phase 2, collaboration is an important concept here as well. Drilling engineers are fully

engaged in Phase 3 and are working with G&G to finalize pore pressures, fracture gradients and well-bore stability predictions

prior to executing the drilling operation. The preferred alternative that was selected in 3-d viewing environment can now be

seamlessly copied into drilling engineers suite of applications where the directional well planning software optimizes the path

(typically to reduce torque and drag) as well as any planned sidetrack contingencies.

The drilling applications that are used in WellDECC and across Deep Water E&P are standardized in one database so that

from the directional drilling software the final well path can be used, along with pore pressure and fracture gradient data, to

feed the casing design software used to aid in selecting the casing points. The next step is to open the calculated data and run

stress analysis on casings and liners. Using a standard suite of applications enables easy transition between applications,

ensuring everyone is using the latest information available. Some wells also require a complete temperature/pressure profile

for a thorough stress analysis lasting the duration of the well; WellDECCs in-house expertise accomplishes this in a minimal

amount of time using software specializing in high pressure high temperature wells. Finally, a comprehensive application

performs torque/drag, hydraulics and swab/surge analysis. Within the software, WellDECC developed a variety of templates

that capture specific pipe and load cases unique to operations in the Gulf of Mexico deep water which makes for an even more

efficient workflow. The end result is that during collaborative well planning, a change to one or multiple variables can be

rapidly reinterpreted and results re-calculated. This makes for very fast iterations when investigating what if scenarios.

One of the recognizable benefits WellDECC enhanced as part of Phase 3 is the collaborative well planning session. The

communication barriers that were inherently present are now removed by enabling face-to-face collaboration among the key

players in the process. The combined and simultaneous efforts of the subject matter experts coupled with the latest integrated

technology enable an almost immediate generation of a solution, which nearly eliminates the transition time between iterations

and projects.

The importance of good project planning with respect to the overall value of the project cannot be overemphasized. Figure 1
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shows the incremental value creation of a well-planned project (Phases 1, 2, and 3) versus a poorly planned project. As the

figure illustrates, a project that is planned well but executed poorly has higher value than a poorly planned project that is

superbly executed.

Phase 4: Execute

Phase 4 is dominated by actual execution of the project; in the case of the Deep Water Business Unit, this is primarily the

drilling or completion of the opportunity.

At the beginning of Phase 4, each deepwater drilling or completion operation in the Gulf of Mexico has a WellDECC Team

Room assigned to it in the office where it will support the entire execution phase. The Team Rooms are equipped in a manner

similar to that of the Collaboration Room but on a smaller scale. The rooms each have three large projection screens and all of

the software capabilities of the Collaboration Room. There are multiple cameras placed throughout the room, which add video-

conferencing capabilities to all meetings. In addition, the displays from any of the computing equipment, including the

advanced three-dimensional models previously created can be sent to the rig for easy remote viewing and collaboration.

Conversely, on each of the rigs, there is a conference room where the rig team uses a similar camera setup to broadcast live

images of them back to the team room in Houston. The video-broadcasting capabilities at the rig are not limited to the rig

conference room. Using a rig-controlled switching device, video from any of the cameras on the rigs closed-circuit network

can be sent to the office. One primary use of this functionality is sending the live (or recorded) image captured from the

camera on the Remote-Operated Vehicle (ROV) to the Team Room. A good example of this is when the superintendent in the

office needs to understand the extent of a saltwater flow encountered during drilling or following completion of a cement job.

WellDECC has made significant improvements during Phase 4 of CPDEP and continues to refine the processes currently

being used for execution. One of the initial implementations and key responsibilities of WellDECC is to ensure that real-time

drilling data (drilling parameters, mud log, LWD, etc.) is transmitted from the rig via satellite and made available to the

appropriate team members, whether they be in the office or at home. Using an integrated data management service,

WellDECC made available real-time data to any of the projects team members in any location in the world via a web-based

application. Still in use today, WellDECC supports this system using one of the full-time subject matter experts located

onsite. As part of WellDECCs continual evaluation process, similar systems by other service companies has also been used

successfully. As part of the integrated solution, this real-time LWD data can be streamed directly into the project database
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management system. A number of geologists, geophysicists and petrophysicists access the database from offsite locations

(like their homes during off-hours) to display real-time LWD/Measurement While Drilling (MWD) information against a

seismic backdrop. This real-time data is also used in the 3-d viewing application to display planned vs. actual data or for

evaluating sidetrack options.

Unlike the philosophy some operators have taken, WellDECC is not a 24/7-365-day-per-year monitoring center. The approach

here is to provide expertise at the rig site; monitoring for the purpose of making interventions (for kicks, washouts, etc.) is not

the goal. WellDECCs emphasis during rig operations is to provide specialized data (acquired while drilling) to the decision

makers and stakeholders of the project. Specialty curves, like total energy at the bit, specific energy at the bit, vibration, offset

well data and an assortment of pressure gradients, are some of the plots made continuously available to field personnel and

office staff. It is felt this approach of analyzing and providing as much relevant data as soon as possible creates the best

possible environment for rapidly making decisions in an ever-changing environment. An example of this was a recent GOM

deepwater well that unexpectedly encountered a thin tar zone, which ultimately required a sidetracking operation.

WellDECCs tools and resources helped the team quickly analyze the problem, generate alternatives, define a sidetrack path to

the target and perform the necessary engineering analysis with the latest information available.

Another function handled at WellDECC during Phase 4 is critical Rotations per Minute (RPM) speed analysis. This is done on

each Bottomhole Assembly (BHA) prior to running through the rotary to try to avoid twist-offs due to severe vibration.

WellDECC passes on this analysis through the operations chain of command to the rig.

Phase 5: Operate and Evaluate

This phase is often referred to as simply as the Look Back, and WellDECC performs several functions. The most

comprehensive of these is the Hole Section Review Report. This report contains formation evaluation data curves for each hole

section, such as gamma ray, resistivity, pore pressure, fracture and overburden gradients. Additionally, drilling parameters

such as equivalent circulating densities, rate of penetration, specific energy, d-exponent, bit performance (with photos),

vibration, stick-slip and mud log data are included. Other important information, such as BHA details, critical frequencies

analysis, bending moments, bit grading and performance, and a summary narrative of the hole section with discussion of

lithology, trending, and NPT events are included with this report. Upon the completion of the project, each Hole Section

Review Report is combined and edited to produce an End of Well Report.

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Another role of WellDECC in the look-back phase is to ensure that certain data is archived into appropriate databases such as

the G&G and Drilling databases. All of the drilling data captured into the integrated data management service is archived for

future use, if needed. There have been a number of occasions when a customer has wanted to research a particular event or

portion of the hole, and the re-loading of data as it occurred has been the only way to get a complete picture of the

operational environment at the times of interest. Lessons can then be learned and used for future drilling projects. An example

of this occurred shortly after WellDECC became operational. After a twist-off, the data history leading up to that NPT event

was constructed and studied, resulting in a lesson learned that was subsequently communicated to the entire drilling

community. Part of the lesson learned was an improved graphical display of vibration data viewable at the rig site. It can be

said that there has not been another twist-off of a BHA since that time (over three years). No claim is made that WellDECC is

the sole reason for improved performance on twist-offs. However, the data collected and presented to drill teams certainly

achieved a higher degree of awareness of what the real-time data can tell us when clearly presented while drilling.

WellDECC as an operating facility and functional group is itself currently in Phase 5. Three years of operation has taught us

that complacency in WellDECC deliverables is not an option. There have been challenges and obstacles along the way, and

available technologies are ever-changing. To get a handle on WellDECC performance and customer satisfaction, a couple of

important actions were taken. First, through a comprehensive survey, our customers were given the opportunity to tell us what

was working and what needed improvement. Secondly, metrics were identified and defined to analyze a multitude of factors.

These metrics were selected with heavy emphasis on what WellDECC customers, using the survey, said added value. It is

beyond the scope of this paper to describe in detail what all of these metrics are, but it can be stated that reliability of real-time

data is at the top of the list. This means that every customer wants and expects real-time telemetry of rig operations (whether it

be geological or engineering data) to be available for viewing and analysis at all times. Reliability also means that the

hardware and software that WellDECC manages are also available and ready for use. To meet these reliability goals, the

cooperation and teamwork of cross-functional groups are absolute necessities. Third parties at the rig site, satellite providers,

primary vendors, company IT personnel and others all must consistently work together to achieve success. WellDECC tracks

this reliability data, and the goal has always been to realize favorable trends.

Another challenge has been to meet the needs of customers in providing a user-friendly facility so that the daily work (real-

time operations or front-end planning) can proceed efficiently. To achieve an interactive meeting between rig and office

personnel as described in Phase 4 above, a certain level of WellDECC-specific IT competency is required. The intrinsic
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flexibility and capabilities within a WellDECC Team Room can have the disadvantage of making it not as user-friendly as

some would like. Ideally, any customer would be able to utilize all the functionality without needing any outside help. In

reality, this has not always been the case, and a WellDECC or IT person has been needed to operate the rooms equipment in

some instances. In fairness, these customers want to spend their time focusing on the well and not how operate the IT system.

As part of Phase 5, WellDECC is currently looking at options to make the facilities more user-friendly, thus improving

manpower efficiency and utilization.

Conclusion

Since the inception of WellDECC, the people, processes and technologies introduced have made a significant impact on the

daily activities within DWEP. Strategically implementing CPDEP into DWEP and using WellDECC to augment this solution

have positioned Chevron and its Deepwater Business Unit to face the harsh conditions and difficult challenges of drilling the

Gulf of Mexico deep water.

Value Identification Value Realization

Good
Good Project
Project Execution
Definition A

V
A B
L
U Poor Project
E Execution

Poor Project
Definition
D
Phase 1 Phase 2 Phase 3 Phase 4 Phase 5
Identify Generate and Develop Execute Operate
Opportunity Select Preferred
Alternatives Alternative

Figure 1: CPDEP Impact on Asset/Project Value, PM100SP Chevron Project Development & Execution Process (CPDEP)

Overview for Small Projects, 2005