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1 Statement of standard

Surveying and anti-collision are critical to D&M’s business, and we will advise clients on the best
methodology for well placement and safety on any well we drill. This standard outlines mandatory
requirements which must be followed by all D&M personnel.

The preventive and mitigating actions as stipulated in any exemptions to this standard and agreed
with the client must be approved by D&M Management as per D&M -SQ- S010A D&M Risk -
Contingency - Management of Change and Exemption Standard.

This standard is governed by API Q2 Aligned D&M-SQ-S007.

2 Objective

The objective of this standard is to specify surveying and anti-collision related requirements in the
well design and drilling execution.

Compliance with this standard will ensure D&M delivers consistent, accurate well placement and
competent anti-collision risk management to our customers.

3 Scope

This standard applies to all aspects of the D&M business, including but not limited to, survey
database management, well design, quality assurance, drilling execution, and survey management,
including third- party survey contractors.

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D&M-SQ-S002 Well Surveying and Anti-Collision Standard

4 Implementation and monitoring

Definitions

See appendix A for a full list of definitions.

Responsibilities

D&M Geomarket Product and Service Delivery Managers are responsible for the implementation
and support of this standard. They are also responsible for ensuring that all individuals involved in
planning and execution are properly trained and certified to meet the requirements under the
standard.

A list of technical and management sign-off authorities will be displayed in each


Location/GeoMarket.

4.2.1 Well design approval

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It is mandatory that every well design is signed off by the originator, the local technical sign-off
authority, the external GeoMarket expert approver depending on the risk level, D&M
management and the client as per D&M- SQ-S011 D&M Drilling Engineering Standard.

4.2.2 Well design audit and control

The hemisphere head drilling engineering has responsibility for the audit and control of the well
design approval process, including regulating expert approver sign-off privileges.

4.2.3 Execution

The MWD engineer or third-party surveyor is responsible for the delivery of quality surveys. The
directional driller (DD) is responsible for all aspects of well placement, including anti-collision
monitoring.

D&M-SQ-S002 Well Surveying and Anti-Collision Standard

The DD/ROC/drilling engineer (DE) have full authority to stop drilling if any of the anti-collision
monitoring in both current bit depth or 60 m (180 ft) projected ahead indicates a violation of the
anti-collision rules stated in this standard at the rig site.

The DD and the DE have a responsibility to deliver the correct definitive well path to the client. The
DD has a specific responsibility to ensure that the number of wells in his/her database agrees with

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the number of wells in the vicinity. This will be recorded by the DD and sent to the DE; any
discrepancy must be investigated before drilling. The DE is responsible for the delivery of the final
definitive surveys to the client.

The Geomarket Product and Service Delivery Managers will be responsible for compliance with
this standard.

Survey database management

4.3.1 General

Sufficient survey data shall be retained such that all positions and map reference systems for all of
the wells being used for anti-collision analysis can be positively verified. The client may have a
third-party contractor to manage the database. The identity of the party responsible for the
maintenance of the survey database must be clearly understood and documented at the start of
any contract. Schlumberger requires that the responsible D&M DE maintains an up-to-date survey
database. This shall be backed up on a weekly basis and stored in the DEC server under a clearly
defined structure by client and date.

4.3.2 Definitive survey database

The definitive survey database represents the most accurate and current description of all well
paths within a defined work area. The definitive surveys must be clearly marked as such to
distinguish them from other surveys. Electronic copies of the well path surveys and supporting
documents will be kept electronically on a server in a clearly defined structure. Equally, the
definitive sign-off sheets signed by the client should also be available electronically. Supporting
documentation requirements will be part of a work process in every Geomarket to be agreed with
the hemisphere head of drilling engineering and the surveying head of domain.

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It should be noted that a "working" definitive survey and a final definitive survey are different; a
final definitive survey is the most accurate description of the entire well path, while the "working"
definitive surveys are the most accurate description of the well path to the present TD position.
The "working" definitive survey will be annotated as such and should be clearly defined in the
DD/DE's database. This is to ensure that we know which survey is definitive throughout the drilling
of the well.

4.3.3 Legacy data: Accuracy and completeness

Several different contractors may have recorded the well's survey data, and its accuracy may be
suspect or unknown. The imported surveys will have the appropriate tool error models assigned.
Verifying the accuracy of any survey database MUST before performing an anti-collision scan. The
completeness and correctness of imported legacy data must be reviewed, verified, and approved
in writing or electronically by the client before any subsequent wells are planned and executed in
the operating area. Refer to the legacy survey data checklist in the DEC portal at the job level for
details. As offset wells become included in anti-collision scanning and have an OSF

<5 or are captured by the surface rule for any well design, they MUST be verified (and identified in
the database as such) prior to the definitive well plan being created.

4.3.4 Subcontractor surveys

Subcontractor surveys are critical to the success of directional services. The DEC is responsible for
ensuring that all subcontractor surveys, whether contracted directly by Schlumberger or not,
conform to the requirements of this standard. Documentation to that effect will be held in the
well survey file (WSF), e.g., Gyro QC reports.

The DD will be responsible for the QA/QC and acceptance of third-party surveys at the rig site. The
gyro survey sign-off sheets will be used to facilitate this.

4.3.5 Survey database transfer

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A survey database transfer requires that every directional survey is checked and direct
comparison of wellbore position calculations across software platforms and between the new and
old databases is made. If

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the offset wells have an OFS<5, then validation of those wells shall be conducted using all the
available sources of corroborating information.

Refer to the legacy survey data checklist in the DEC portal at the job level for details.

4.3.6 Training and certification

Any team member involved with planning and execution must be trained and certified competent;
they must be proficient at drilling in close- approach (refer to 4.7.2: Anti-collision analysis)
environments and have their D&M anti-collision certification up-to-date and recorded in QUEST
(this will be done annually). This includes management (to Product Line Manager,PLM), DD, DE,
and DD consultants.

Geometric trajectory planning

The sign-off and approval process outlined here must be auditable through the use of proper
documentation as per the D&M-SQ-S011 D&M Drilling Engineering Standard.

The execution of the well must be monitored to verify that the integrity of the original design is
maintained. The survey program MUST be included in the well plots. Contingency plans should be
devised for situations when the survey program may not be met.

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4.4.1 Classification of well types

All wells considered under this standard shall be classified as either "single well" or "nearby well."
Any well whose classification is not immediately clear will be treated as a nearby well. A single well
is a well that has a separation from all other wells at the surface that is twice the subject wells MD,
or the subject wells MD plus the MD of the longest well in the field whichever is the greater.

An exemption may be requested in exceptional circumstances where a defined boundary exists,


and this would allow a limit to the standard global scan shown above. The exemption must be
granted by a SIII or above Drilling or Survey domain.

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4.4.2 Ellipsoid of uncertainty (EOU)

The calculation of the EOU involves the use of survey tool error models in the well planning. The
selection of tool error models must agree with the survey tools and conditions that were used to
acquire the surveys that define the position of the subject of offset wellbores. For anti-collision
purposes, the most current version of the Schlumberger catalog of tool error models is to be used.
The tools in this catalog use the ISCWSA modeling framework. The EOUs for anti-collision purposes
shall be scaled to the 3D 95.0% confidence level.

4.4.3 Magnetic interference

Magnetic interference calculations shall be performed in advance to ensure that the survey
acceptance criteria values of total field strength [B] and dip angle can be met for normal

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operations. DMAG may be used to compensate for drillstring interference, but only if it meets with
the DMAG usage procedures available from InTouch and D&M-SQ-S011 Drilling Engineering
Standard. An estimate of drillstring interference will be conducted for every BHA by the DE and
MWD rig crew and held in the electronic WSF.

MagScan must be used to predict when the MWD survey is likely to be free of external magnetic
interference. It is mandatory in a top hole scenario where external magnetic interference is
expected that gyro surveys are run until free of magnetic interference. If while planning or drilling
a sidetrack the subject wellbore is likely to have external magnetic interference for more than 100
m (330 ft), then a Gyro should be run. If the client refuses to run a Gyro in either situation, then an
exemption must be raised. It is mandatory that north-seeking Gyros are used as the gyro tool in
this instance. If a client is unwilling to do this, an exemption must be raised. However, if the area
affected by predicted magnetic interference uses any of the SLB Inclination only error models and
does not break the drill ahead rules, then an exemption is not required.

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4.4.4 Anti-collision analysis

Every well design and execution shall be the subject of an anti-collision analysis in accordance with
this standard. Wells that are defined as single wells from a global scan are by default exempt,
although this must be confirmed by a global scan. All surveying and anti-collision analysis will be
conducted with the latest version of Drilling Office software.

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If the client requires us to run their own anti-collision policy, then we must also run the SLB policy
at the planning stage. An analysis of both scans will be conducted, and any wells that fail the SLB
drill ahead rules will be investigated for HSE or non-HSE risk and discussed with the client. If the
residual risk is non-HSE and the client is made aware of the drill ahead risk, then the use of the
client's anti-collision policy can be used in the execution phase.

This anti-collision analysis shall be included in the well design file (WDF), and shall be rigorously
checked during the well design process. This analysis is performed using standard Schlumberger
Drilling Office well- planning software that contains details of the positions of all wells, along with
their associated uncertainties, in the form of a definitive survey database.

Where the results of the anti-collision analysis indicate a violation of the drill-ahead conditions
described in this standard, the well trajectory must be redesigned and an additional analysis
performed.

Where no other design option is reasonably available, an expert approver may approve an
exemption, depending on the specific circumstances and the risk assessment. The expert approver
is the responsible person for confirming the anti-collision analysis has been satisfactorily
completed and the risk mitigated. It is the responsibility of management to grant an exemption (if
appropriate) to this standard.

If the drill-ahead anti-collision condition is PROJECTED to be violated during execution without the
appropriate exemption in place, then drilling operations must STOP immediately. Drilling will only
start after completion of the Hazard Analysis, and Risk Control (HARC) assessment is completed by
the responsible

DE and the granting of an exemption to drill ahead. A QUEST Risk Identification

Report (RIR) must be opened and classified as per the D&M Appendix to SLB-QHSE-S002 SQ/PQ
Event Reporting and Management Standard,

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and an appropriate investigation conducted by the DE and Geomarket Product and Service
Delivery Managers.

Schlumberger uses the oriented separation factor (OSF) methodology. During an anti-collision
scan, any well that breaks the drill ahead rules must be included in the detailed anti-collision scan
report. Traveling cylinder plots shall be used at an appropriate scale to identify the wells that are
at risk of collision. These will include appropriate depth annotated tolerance lines, plan revision,
offset well annotation, magnetic parameters and north reference.

The anti-collision scan will include a “global scan.” A record that the global scan has been
performed will be documented in the WDF.

4.4.5 Major and minor risk wells

A minor risk well is defined as a well that violates the criteria: 1.0 < OSF <=

1.5 and a major risk well occurs when the OSF <= 1.0. When a well fails the Surface Rule, it will be
a major risk well.

4.4.6 The drill-ahead anti-collision conditions

To avoid hitting other wells, we need to apply a minimum separation from offset wells for the well
path. This is called the minimum allowable separation (MAS), including allowances for hole size
and casing radii.

There are two rules to define the MAS: Rule 1. “Surface Rule” and Rule 2. “OSF Rule.” Both rules
will apply at all times, with the largest MAS value being dominant.

At or near-surface, OSF values are unrealistically high, because the EOUs are very small. The
Surface Rule has been implemented to impose a minimum separation between wells until the OSF
Rule MAS value becomes dominant.

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Surface Rule

This rule stipulates a single distance value, MAS, that applies along the entire well path to TD.

For all wells, the single MAS distance value is calculated at the well reference point (WRP),
which is located at the trajectory position at its

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point of ground penetration. This will be ground-level (GL) or mud-line (ML) as appropriate.

The Surface Rule will apply to all offset wells with a MAS@WRP (as computed below) which is ≤ 10
m to the subject well. For all offset wells with a MAS@WRP > 10 m, a maximum MAS value of 10 m
is to be used.

Figure 4-1: MAS calculated from a subject well (grey)

Surface Rule Formula:

Surface Rule. MAS = (R1 + R2) + 0.8(ct-to-ct at WRP – (R1 + R2)) Which can be refined to:

MAS = 0.8(ct-to-ct @ WRP) + 0.2(R1 + R2)

When:

R1 = subject well radius

R2 = largest hole offset well radius

Clearance @ WRP = ct-to-ct @ WRP – (R1 + R2)

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This makes sure there is always a separation between offset and subject wells. The effect is that
the offset wells have a no-drill zone of 80% of the initial clearance @ WRP.

Thus,

ADP = ct-to-ct – MAS

The MAS is individually calculated for each offset well. (For example, if there are

12 offset wells on a platform, there will be 12 individual MAS values calculated.)

Oriented Separation Factor (OSF) > 1.5 Rule

This rule stipulates that the OSF between the planned well trajectory, and all offset wellbores
must be greater, but not equal to, a value of 1.5 at all analysis points examined.

1. The OSF value is a ratio of the sidewall-to-sidewall clearance divided by the relative
positional uncertainty between the wellbores.

2. The borehole radii to be used are:

a. planned trajectory: open-hole size

b. offset borehole: tubular size or open-hole size.

3. The EOU size shall be scaled to the 3D 95% confidence level.

Please note this diagram is a geometric representation; OSF is probabilistic, not geometric.
Therefore, this diagram does not represent the literal definition of OSF; but is a generalized
representation.

OSF Rule. MAS = 1.5 * (relative positional uncertainty) + R1 +R2

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Special care needs to be taken if you have offset wells that are highly inclined and are “coming
toward you.”

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For details, see the anti-collision procedures via InTouch in the D&M Wellbore Anti-Collision
Procedure.

All wells must have surface positioning uncertainty applied, as appropriate.

If the wellbore trajectory fails either the Surface or OSF Rules, then an exemption must be raised.

Splitter wells: In case of wells sharing the same conductor (splitter wells), an exemption to this
standard is needed until a ct-ct distance of 10 m (33 ft) between the splitter wells is achieved. This
will be the case even if the Surface and OSF Rules are not broken.

The only exceptions not requiring exception are for the following activities:

1. Sidetrack and bypass wellbores for the first 150m (500ft) MD from the kick-off point. A
zero tool code may be used to the sidetrack point for the sake of anti-collision analysis only and
not for target sizing.

2. Relief well.

3. Steam-assisted gravity drainage (SAGD) and U-tube drilling. These cases must have a HARC
approved in QUEST prior to drilling.

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The exemption process and management of change

An exemption request must be initiated for any well that violates the drill- ahead anti-collision
conditions or any other part of this standard. The exemption approval process clearly defines the
prevention and mitigation measures required to minimize the consequences of a collision. It
should be noted that Schlumberger should attempt to get the client to mitigate risks that allow the
well to fall within the drill-ahead condition, such as resurveying an offset wellbore to reduce the
positional uncertainty.

This standard recognizes two types of risk.

1. Health Safety and Environment (HSE) Risk, where the consequences of a physical well
collision can result in health, safety, or environmental loss (e.g., due to well “blowout”).

2. Financial Risk, where the consequences of a physical well collision are financial only and
need to be categorized per Schlumberger Service Quality (SQ) Loss Category.

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To get an exemption approved, the residual risk after prevention and mitigation measures are
implemented must be as low as reasonably practicable (ALARP).

Any change to the requirements of an exemption to this standard or a material change to the well
trajectory or objectives will require a Management of Change (MOC) to be conducted as per the
D&M Appendix to SLB-QHSE-S010 Management of Change and Exemption Standard.

The criticality and the severity of the exemption risk will determine the final sign-off authority.

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It is important to note that the likelihood and severity of the risk will be assessed after the
following points have been considered and included in the exemption or MOC as standard risk
mitigation measures:

• The surface locations of the relevant offset wells have been physically verified (as per
4.2.3: Execution).

• Do the offset wells flow naturally to the surface?

• Is the survey interval short enough to give the DD enough information to drill the well
safely?

• Is there a minimum of 60 m (180 ft) projection ahead of the bit at every survey?

• Are Gyro surveys run where MWD surveys suffer from external magnetic interference?

• Will all parties be aware of the details of the collision risk and the specific risk mitigation
measures in place?

Client indemnification

In all cases, operators must be made fully aware of the risks involved when the D&M drill-ahead
anti-collision condition is not satisfied, and there must be a documented response from the client,
even if it is a refusal and recorded in its corresponding QUEST record. Schlumberger retains the
right to not drill the well or the hole section concerned if it determines that the HSE risk cannot be
eliminated or the remaining financial risk is unacceptable. Similarly, Schlumberger also retains the
right to stop drilling operations already underway.

It is important to have indemnification clauses in the Master Service Agreements. If a Master


Service Agreement does not exist, then

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indemnification must be put in place through the use of the Schlumberger Terms and Conditions.
Never assume that indemnification is in place, rather this must be confirmed in every case.

Survey program

The survey program is the planned series of surveying operations to be used in each phase of
drilling. The survey program must fulfill the well design surveying requirements during the
execution in order to satisfy this standard. This is approved as part of the well design approval.

The survey program shall be presented in the WDF and the wall plots as a listing or table indicating
as a minimum:

• survey depths for each survey tool to be used

• required survey intervals

• whether run in cased hole, open hole or drill pipe

• any special corrections or contingencies

• tool error code to be used for that survey.

The wall plots will be the definitive source for reference values; they will be generated within
three months of the well spud date.

The survey program for the final definitive plan must also include the EDI, MagScan report and DO
sag estimates. The analysis must show that the choice of the survey tool and planned tool error
model are suitable for the expected environment such as a gyro tool where you have magnetic
interference.

4.7.1 Target sizing

The “drilling target” shall be established by reducing the “geological target” by the amount
representing the positional uncertainty at the target penetration depth, so that if the survey
program is followed and the drilling target is penetrated, the well objectives based on position are
achieved. The dimensions of the target must be discussed with the client, paying particular

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attention to the dimensionality of that target (1D, 2D or 3D) and the required confidence level.
This will be noted in writing from the client. A 95% confidence level will be standard unless
decided otherwise by the client.

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Equally, if there are no geological targets, an estimate of a reasonable geological target can be
provided by the DE based on the client selected surveying tools. The client must be made aware of
this issue in writing or electronically Drilling targets shall be displayed on all wall plots, along with
the survey program used to generate them. If a client has no geological targets, then the plot must
clearly state this.

The method and calculation of the drilling target must be traceable. The results have to be
reproducible with the information stored.

4.7.2 Anti-collision analysis by parts

The anti-collision analysis shall be performed by sequentially scanning each part of the survey
program. When a close-approach situation exists, the issues may be alleviated by revising the
survey program, resurveying other nearby wells, or redefining the trajectory of the planned well as
defined by the drill-ahead anti-collision condition explained in 4.4.5: Major and minor risk wells. If
none of these options is possible, then it will be necessary to obtain an exemption (see

4.5: The exemption process and management of change).

4.7.3 Survey contingency planning

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Efforts must be made to perform reasonable contingency planning in advance, in order to
maximize the operational effectiveness of the survey program. For instance, using a gyro while
drilling tool when magnetic interference from offset casing is anticipated where you are within
10.0 m (33 ft) of an offset casing. MagScan will be used to assess the impact of offset magnetic
interference.

A contingency survey can consist of having a backup tool on the rig.

The use of DMAG must be controlled using the DMAG Usage Procedure. Effectively, it should not
be used as a survey tool code for anti- collision/target sizing purposes without an understanding
by the DE and the client of the risk involved being in place.

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4.7.4 Well trajectory files and approval

The well trajectory file is the mandatory documented proof that this standard has been observed
and executed correctly. It may consist of written or electronic information from the client, hard-
copy or electronic output from a well design software package, information about nearby wells,
and any other relevant information.

As a minimum it will contain in either electronic or hard copy:

• Approved well program from the operator specifying the Coordinate Reference System,
certified template or land pad, surface location Well reference point with associated uncertainties,
vertical datum and bottom hole target with tolerances

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• The physical location of the definitive survey database used for the anti- collision scan

• The survey program broken into its constituent parts

• Results of anti-collision scans conducted using the appropriate parts along with the
required plots signed off by the originator (DE), local sign- off authority, the D&M manager in
charge, and the operator. This sign- off forms the well design approval and is the certification that
the well design is acceptable under this standard.

4.7.5 Changes to well trajectory design

Once signed-off for execution, the well design may not be revised without the explicit written
approval of the local sign-off authority, accompanying the details of the revision in the well design
file.

In addition, before execution, the revised well design must be signed by the Product and Service
Delivery Manager

and by the client. Any changes to the survey program or well trajectory must follow the
Management of Change and Exemption Process, and be approved by all the original sign-off
authorities prior to drilling execution.

Survey quality

4.8.1 General

Every well shall be surveyed in accordance with this standard. Each survey carried out shall
independently satisfy the service provider's or operator's

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specific quality control requirements for that survey before being considered for inclusion in the
final well trajectory calculation. If overlapping survey tools are run in a well, this must be used as
an additional survey QC. The DE is responsible for survey quality control on the wells they design.

4.8.2 Survey quality control

Quality control includes ensuring that surveys meet these field acceptance criteria (FAC). The
HDGM and GARM models will be used to calculate the references except where the client dictates
otherwise and dated within three months of the spud date:

1. Magnetic Survey, FAC

a. Total Gravity Strength

- [G] = Reference – 2.5 mG (gravity)

b. Total Field Strength

- [B] = Reference – 300 nT (magnetic)

c. Dip Angle

- Dip = Reference – 0.45 deg (magnetic).

References are based on the current magnetic model and proprietary gravity model (available in
Survey Tool Box, Drilling Office or the MWD surface system software).

2. Gyroscopic survey quality control includes ensuring that contractor- specific terms for
drift, repeatability, Earth rate, mass balance offset, run a comparison, benchmarking and roll tests
are met as per the Gyro sign- off sheets by the DD at the rig site.

The DD, with the MWD engineer or the gyro surveyor, shall check at the wellsite that comparisons
between survey tool runs provide confirmation of well position with survey benchmarking. Any
discrepancies must be investigated and discussed with the DEC.

Any survey suspected of having reduced quality must be reported to the OSC in the first instance
and then the drilling engineering organization for further analysis so that appropriate actions can
be taken to conform to this standard.

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Survey interval (frequency)

The survey frequency will be part of the survey program shown on all wall plots. The survey
frequency must allow for the maximum BHA DLS and the accuracy of the survey tool in use. If the
survey frequency defined in the survey program is not met when drilling, then the DE organization
must be informed. Depending on the impact, a Management of Change may be required.

4.8.3 Regulatory requirements

All government regulations relating to well position and spacing requirements, in the jurisdiction
where the activities are planned to take place, will be strictly adhered to at all times. All local
regulations, as defined by federal, national, or local regulatory agencies, will be adhered to.

4.8.4 Reference data

At the wellsite, the MWD engineer or gyro surveyor must obtain a sign-off from the client and the
directional driller on grid correction, magnetic declination, well location, and all relevant reference

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data on the standard form available in the surface acquisition system. (In some cases, such as land
drilling, the coordinate data must be cross-checked and validated with the GPS receiver.) Strict
adherence to this procedure is mandatory in order to prevent gross errors. Equally, the DD shall
check the wells in the Drilling Office surveys database are matched by the number of wells on the
rig and the surrounding area from which drilling is going to commence. The rig plots will be the
definitive source for survey reference data.

4.8.5 Survey processing

All survey enhancement processing will be performed by a survey specialist or a surveying domain
certified drilling engineer, OSC engineer, or directional driller. This may include the calculation and
approval of the use

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of depth correction, cDNI, Smart Depth, DMAG and GRS, DSAG and HDS, in both the planning and
in the real-time execution phases of the well design. Enhanced survey services will require
additional operational procedures to be defined for all relevant parties involved from the wellsite
back to the DEC. These procedures will be approved by the Area survey domain champion.

4.8.6 Definitive survey sign-off

On completion of the execution phase, the DE shall prepare and obtain approval of the lead DE or
survey specialist and the client for the definitive survey. In cases where D&M has drilled the entire
well, this will represent the best description of the well path possible, with an EOU report and
evidence that the position-related well objectives have been achieved, i.e., that the EOU at all of
the targets computed with the as-drilled trajectory showed intersection of the drillers target. In
other cases, the definitive survey may consist only of the definitive listing of one survey program
part of the well.

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No definitive survey or part thereof, which has been prepared by the DE, will be delivered to the
client or used in any future anti-collision analysis unless it has been certified correct and complete
by the DE or survey specialist. Where a survey specialist is not resident in the DEC, this duty will
normally be performed by the drilling engineering manager, or by a senior drilling engineer who is
an appointed sign-off authority.

The definitive survey sign-off sheet should be kept electronically in the well survey file.

The definitive survey sign-off will include a minimum level of background material as defined per
Geomarket by the Hemisphere head of drilling engineering and the surveying head of domain.

Schlumberger-Private

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