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Drilling Overview for

Non-Technical People

Rio de Janeiro Brazil


July 21, 2008

Kyle Eastman

© Chevron 2005 DOC ID


AGENDA
 Safety moment

 Basic petroleum geology

 Well construction basics

 The drilling rig

 “Drilling a Well” Animation

 When thing‟s go wrong

 Frade specific information

 Questions throughout the presentation

© Chevron 2005 DOC ID


Safety Moment
 Video to show “planning can make it possible”

© Chevron 2005 DOC ID


© Chevron 2005 DOC ID
Basic Petroleum Geology

© Chevron 2005 DOC ID


Geology is critical for well design

 During drilling rock characteristics and associated


drilling conditions can change many times,
therefore an understanding of the anticipated
geology is essential for properly designing the well
and then drilling it efficiently and safely.

© Chevron 2005 DOC ID


Types of Rocks

Non-Reservoir: Shale
• Igneous: Rocks formed by solidification of
hot mobile material called magma Sandstone
• Metamorphic: Rocks formed by Limestone
transformation of pre-existing igneous or
Calcareous shale
sedimentary rocks as a result of high
temperature and pressure Anhydrite

Argillaceous Limestone
Reservoir:
• Sedimentary: Rocks formed from Quartz
accumulations of sediment which may
Conglomerate
consist of rock fragments of various sizes,
the remains of animals and plants, the Clay
product of chemical action or Dolomite
evaporation, or a combination of these.
Most petroleum reservoirs are found in Lignite
sedimentary rocks, mainly sandstone,
limestone and dolomite because they
have porosity.
© Chevron 2005 DOC ID
PetroleumProspect
SystemComponents
Elements

Anticlinal Trap
Top Seal Rock
(Impermeable)

Reservoir Rock

Potential
Migration Route
Faults & Fractures
Unconformities Source Rock
Salt Faces and Welds (Organic Rich)
Porous and Permeable Beds

24803
In the example above the source rock is connected to the reservoir by a fault
(migration route). As hydrocarbons are expelled from the source they travel along
permeable paths created by the fault. The oil will them migrate through the
reservoir to the top of the structure due to buoyancy effects where they are trapped
by the overlying impermeable formation (Top Seal)
© Chevron 2005 DOC ID
Well Construction Basics

© Chevron 2005 DOC ID


Well Construction

Well construction is an engineering design process that


starts with a clear understanding of the objectives to be
achieved. As a minimum, the following data are required to
commence the design and planning process

• Well depth
• Location – land, offshore (water depth)
• Geology – lithology, structural features, hazards, stability
• Formation Pressure profile
• Fracture Gradient profile
• Downhole target(s) – vertical or directional well
• Type of well – exploration, delineation, appraisal,
development
• Evaluation requirements – sampling, coring, logging, testing
• Type of fluid and anticipated flow rates

© Chevron 2005 DOC ID


Drilling Fluid

Transport cuttings
to surface

Support & stabilize


the wellbore

Minimize loss
of circulation

Cool & lubricate Control subsurface


the bit pressures

© Chevron 2005 DOC ID


Casing

Any given well requires several strings of


casing, starting with the largest diameter pipe
on top. Subsequent strings of casing are
Conductor
progressively smaller in diameter as they must
pass through the inside of the previous casing.
The diameter of the deepest casing is
generally dictated by the size of the Surface
production tubing required for anticipated
flow rates.
Intermediate
The primary purpose of each casing string is
to isolate one geological regime from the
other and enable further drilling with full
control of anticipated downhole pressure
conditions of the next interval. An Production
understanding of downhole pressure
variations is essential for selecting the
setting depth of each casing.
© Chevron 2005 DOC ID
Cement

Casing Support
Zonal Isolation
Casing bonded with
Properly cemented formation rocks
casing prevents supports its own
communication weight and
between zones load of surface
of differing equipment that is
characteristics to mounted on it
enable drilling
deeper Cement

Low pressure
loss zone Casing Protection
Casing
Some formations
Higher
pressure contain fluids that can
permeable attack casing
zone

© Chevron 2005 DOC ID


Roller Cone Bits

Milled Tooth

Tungsten carbide insert (TCI)

© Chevron 2005 DOC ID


Fixed Cutter Bits

PDC, Polycrystalline Diamond Compact

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Diamond Bit Terminology & Features

Crown

Junk Slot Diamond Gauge

Shank

Breaker Slot

API Pin
Connection

© Chevron 2005 DOC ID


Coring Bits

Cutters made from diamonds or PDC

Various profiles depending on formation or rock properties

Numerous sizes to accommodate rock recovery objectives

© Chevron 2005 DOC ID


What is Directional Drilling

Directional wells are deviated from


Vertical (Straight)
Directional wells are drilled with
intention to control :
 inclination (angle)
 azimuth (direction).
Think 3-D when Directional

© Chevron 2005 DOC ID


Why Drill Directional

On Land:

 Surface constraint due


to land owner, natural
event, etc.

 Relief well in blowout


situation

 Horizontal

© Chevron 2005 DOC ID


Why Drill Directional

Offshore:

 Save Cost on Platforms

 Relief well in blowout situation

 Horizontal

 Extended Reach

 Multi-Lateral

© Chevron 2005 DOC ID


The Drilling Rig

© Chevron 2005 DOC ID


Main Systems of a Drilling Rig
 Hoisting

 Rotating

 Circulating

 Power

© Chevron 2005 DOC ID


Hoisting System
CROWN BLOCK

Used for raising and


lowering the drilling
assembly, and for DERRICK
TRAVELING BLOCK

running casing,
completion equipment HOOK

and other tools in and FAST LINE DEAD LINE

out of the hole.


ROTARY TABLE

DRAWWORKS DRILLING LINE


SUPPLY SPOOL

SUBSTRUCTURE

DEAD LINE ANCHOR

© Chevron 2005 DOC ID


Typical Rig Floor Layout

Auxiliary Brake

Console
Drawworks
&
Controls

Rig Floor Rotary Table

© Chevron 2005 DOC ID


Driller’s Console

Gauges read:
• Hook load
• Weight on bit
• Pump pressure
• Pump strokes
• Rotary speed
• Torque
• Mud volume
• Change in mud volume
• Return mud flow
• Alarms and limit
switches can be set for
critical measurements

© Chevron 2005 DOC ID


Driller’s Console – Modern Rig

© Chevron 2005 DOC ID


Rotating System

Rotary Table
or Top Drive
Rotates the
Drill String

The Drill String


acts as the
connecting link
with the bit

The Bit Rotates


to Cut the Rock

© Chevron 2005 DOC ID


Rotating System

A hexagonal or square
pipe, called Kelly, is
connected to the
topmost joint of the
drill string. The rotary
table and Kelly drive
bushing impart
rotation to the drill
string while allowing it
to be moved up or
down.

© Chevron 2005 DOC ID


Rotating System – Top Drive

As an alternative to
the Kelly and rotary
table, most modern
rigs employ a Top
Drive system for
rotating the drill
string. A powerful
electric or hydraulic
motor is suspended
from the travelling
block.

© Chevron 2005 DOC ID


Circulating System

During drilling, fluid is


continuously pumped
down the drill string,
through the bit, and up
the annular space
between the hole and
the drill string. Its
main purpose is to
bring up the cuttings,
cool the bit, maintain
hole stability, and
prevent formation
fluids from entering
the wellbore.
© Chevron 2005 DOC ID
Two Mud Pumps – fully hooked-up

Pulsation dampener

Suction tank

Triplex pumps Suction charge


pumps
Electric motor

High pressure Pump suction line


discharge line

© Chevron 2005 DOC ID


Electric Rig Power System

Most modern rigs are electric. Engines &


Generators
Generally, large diesel
engines are the primary Drawworks

source of power. Electric Motor

power generated by the Rotary


engines is first converted SCR Motor

from AC to DC in the Silicon &


Control
Controlled Rectifier (SCR) System
Motor
unit. DC motors supply power
Mud Pumps
to the drawworks, rotary, and
Motor
pumps. AC power is still used
for auxiliary equipment. Driller’s
Console

More and more AC motors


are taking the place of DC
motors

© Chevron 2005 DOC ID


Types of Drilling Rigs

Platform Semi-Submersible T.L.P.


Land Rig Jack-up Drill Ship

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Platform Rig

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Jackup Rig

Derrick cantilevered
over stern of hull

Well conductor

© Chevron 2005 DOC ID


Semi-submersible
Semi-submersible Rig Rig

Cajun Express

© Chevron 2005 DOC ID


Drill Ships

Transocean “Discoverer 534”


and “Discoverer Enterprise”

Transocean
“Deepwater Discovery”
(+800ft long)
© Chevron 2005 DOC ID
Inland Barge

Land

Jackup
Semisubmersible

Drillship

Types of
Drilling Rigs

© Chevron 2005 DOC ID


“Drilling a Well” Animation

© Chevron 2005 DOC ID


When Things go Wrong

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Brazil – Frade Specific
Information

© Chevron 2005 DOC ID


Brazil Overview
Reserves shown in MMBOE Gross (Net)

Frade Field BM-C-4


Guaraná Prospect

Brazil 120 kms offshore Brazil


Frade
Water Depth 1050-1300 m P10: 128 (60)
P50: 258 (120)
Discovered in 1986 P90: 349 (163)

First oil: GO-36 Forecast


April 2009 Roncador

Rio de Janerio Concession through 2025

Maromba Papa-Terra
P10: 72 (20) P10: 245 (83)
Scale 100 km P50: 127 (34) P50: 334 (113)
P90: 217 (59) P90: 467 (157)

Brazil Reserves Overall


Atlanta 1.098 BBOE Gross
Oliva
74 MMBOE
P10: 244 (45)
P50: 305 (56) 0.374 BBOE CVX Net
© Chevron 2005 DOC ID P90: 382 (70)
Frade Project
Development Overview

 Drilling Program
 3 Stratigraphic Wells
 12 Horizontal Producers
 7 Near Vertical Water Injectors
 FPSO
 Converted VLCC tanker
 1.5 MM bbls storage
 Turret mooring w/ tandem offloading
 Topsides Design Capacities
 Oil: 100 kbpd
 Liquid: 150 kbpd
 Produced H2O: 130 kbpd
 H2O Injection: 150 kbwpd
 Gas: 106 mmscfd
 Transportation
 Oil: Tanker (Suezmax) - GoM
 Gas: Pipeline (BR infrastructure)
 Capex
 2.5 B$ Gross
 1.3 B$ CVX Net
 1st Production Nov-Dec 2008
 30 Months Execution Phase
 Commenced Phase 4 2Q 2006
 Reserves
P1 : 88 MMBO P50: 243 MMBO P90: 328 MMBO

© Chevron 2005 DOC ID


Well Planning

 Stratigraphic Wells
 Detailed wireline logging program

 Extensive coring program

 Data used by reservoir engineers and geologists to


further appraise the field

© Chevron 2005 DOC ID


Seismic Arbitrary Line PGS_NearMid_11_20
MDS1
Stratigraphic Well - MDS1 PSDM07_10-20FinalStack

ESE WNW

Top
N580

MDS1

2000m Basemap

Axial
N570

N560

Oligocene
N545_2
2500m

Core Point
Azul TD

0 meters 500
© Chevron 2005 PSDM
DOC ID Depth
Well Planning
Stratigraphic Well

MUS2

1 Stratigraphic Wells
Max Deviation = 28o

© Chevron 2005 DOC ID


Well Planning

 Injector Wells
 Located on the periphery of the Frade field

 Used for injecting produced water to maintain


reservoir pressure support.

© Chevron 2005 DOC ID


© Chevron 2005 DOC ID
Seismic Arbitrary Line PGS_NearMid_11_20
ODI1
ODI1 PSDM07_10-20FinalStack

North South
ODI1

2000m
Basemap
N570

N560
Top
N545_1
Top
N545_2

Oligocene

2500m

Water Injection
Azul Completion

TD
0 meters 500
© Chevron 2005 PSDM
DOC ID Depth
Well Planning
Injector Well

ODI1
7 Injectors MUI1
Max Deviation = 50o MDI1
OUI1
MUI2
N5I1
OUI2

© Chevron 2005 DOC ID


Well Planning

 Producer Wells
 Produce Oil from Frade Field

© Chevron 2005 DOC ID


Seismic Arbitrary Line PGS_NearMid_11_20

Production Well - ODP1 PSDM07_10-20FinalStack

NNE SSW

ODP1 Top
N580

2000m ODP1

Basemap

Axial
N570

Lateral Section 1050m

N560

2500m Oligocene

Heel
Toe

Azul

0 meters 1000
PSDM Depth
© Chevron 2005 DOC ID
What do the Frade Wells Look Like
Producer Well

12 Producers
3.5o/100ft BUR
Min Horizontal Length = 784m
Max Horizontal Length = 1130m
Avg Horizontal Length = 973m

© Chevron 2005 DOC ID


PRODUCERS: Subsea Horizontal Well RT to MSL - 25m
w/ Gas Lift & Open-Hole Horizontal Water Depth - 1050 - 1300 m

Gravel Pack (OHHGP) 36" Casing (drill/jet)


m TVD – RT 60m BML
12 wells 800 m to 1100 m horizontal sections m MD – RT 60m BML

17-1/2" / 13-3/8" Int Csg


m TVD – RT 1780m BML
5000 psi
m MD – RT 1800m BML, varies by well
Horizontal Subsea Tree
12-1/4" Hole / 9-5/8" Csg
m TVD – RT 2100-2350m
m MD – RT 2300-2600m

Control 8-1/2" Hole / 5-1/2" 13Cr Screen


Lines Production Flowline m TVD – RT Same as 9-5/8” Csg Point
Gas Supply /
Subsea Wellhead m MD – RT 9-5/8” Csg Point + 800m to
Service Line
1200m
36” Casing Control Lines
TR-
20” Casing (Optional) 2 x 3/8” Chemical Injection
SCSSSV 1 x 1/4” for P/T Sensor Cable
1 x 1/4” for for Variable Orifice Gas Lift
13.3/8” Casing
Valve
PT Gauge 2 x 1/4” SCSSV
MISR
Bundle 1 x 3/8” Methanol injection
5.1/2" Production Tubing Protectors, Encapsulation, & Flat-Packing
Dual Chemical to be Determined
Inj. Sub
Gas Lift Valve FSV 800-1100 m 8-1/2" Hole

10-3/4” x 9 5/8” Casing

5-1/2" Premium Alloy Screen, 13Cr Base Pipe Gravel Packed


© Chevron 2005 DOC ID
Frade Drilling Rigs
Noble Leo Segerius
Drill-ship, built 1981
Working in Brazil for Petrobras
Tentative arrival 2nd August „08
210 day term + 45 day option
US $525k /day
US $900k / day – US$10 / second

S-706
3rd Generation Semi, built 1976
Extensive upgrade commenced
In Singapore, schedule depart Dec „08
Commence operations Mar „09
5 year term (2-yr Ext. by Corporation)
P10 – rig available Oct „10
US $300k /day

© Chevron 2005 DOC ID


Brasco Logistics Base - Niteroi

© Chevron 2005 DOC ID


Frade Support Vessels
 PSV: Platform Supply Vessel
 Supplies deck cargo, diesel, and liquid mud

 TSV: Tug Supply Vessel


 Supplies liquid mud, deck cargo, and maneuvers oil
tankers for FPSO

 MSV: Multi-Services Vessel


 Engineering services to support setting tree on
wireline and manipulating jumpers and flying lead on
sea floor.
 Greater than 52 beds to accommodate work crews.

 Supplies deck cargo and liquid mud for drilling rig

© Chevron 2005 DOC ID


Chouest Vessels

PSV

TSV

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Norskan MSV

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TSV Photo

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MSV Photo
Heli-pad for helicopter
landing
Large Crane for running
Subsea Trees

© Chevron 2005 DOC ID


Acknowledgements

Special thanks to:

 Reinaldo Bruzual

 Rafael Teixeira

© Chevron 2005 DOC ID


Q&A / Discussion Session

?
© Chevron 2005 DOC ID
Drilling Overview for
Non-Technical People

Rio de Janeiro Brazil


July 21, 2008

Kyle Eastman

© Chevron 2005 DOC ID


Back-Up Photo Slides

© Chevron 2005 DOC ID


Station Keeping – Dynamic Positioning Thrusters

© Chevron 2005 DOC ID


Dynamic Positioning Thrusters

© Chevron 2005 DOC ID


ROV Support System
Control cabin,
launch arm, ROV and tether system
tether system, being launched
and ROV on rig
deck

Buoyancy

Thrusters ROV Launch


Typical
ROV
© Chevron 2005 DOC ID
Drilling Equipment – Subsea BOP Stack
BOP on deck Running BOP from rig

© Chevron 2005 DOC ID


Marine Drilling Riser

© Chevron 2005
70ft Riser joint, fitted with syntactic foam buoyancy
DOC ID
Typical Subsea Horizontal Tree

© Chevron 2005 DOC ID


Tension Leg Platform

2,860 ft WD

Shell Auger TLP

© Chevron 2005 DOC ID


Spar Type Drilling & Production Unit

A Deepwater production
facility. Essentially this is a
traditional production
platform, mounted on a
moored cylindrical column.

© Chevron 2005 DOC ID


Genesis Spar - Drilling & Production Unit

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Genesis Spar – Float Out

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FPSO
Floating Production Storage and Offloading Unit
A Deepwater production facility - a
Tanker Ship with production facilities
mounted on the deck.

http://www.fpso.net/
© Chevron 2005 DOC ID
Captain Field - FPSO

© Chevron 2005 DOC ID

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