Management Des Opérations: Management Des Operation Prepared by Abidi Saad Elfakeur 2017

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Management des

Opérations

Management des operation Prepared by Abidi Saad Elfakeur 2017


INTRODUCTION
Drilling is very expensive, and if hydrocarbons are not
found there is no return on the investment. With only
limited information available a large risk is involved.
Having decided to go ahead and drill an exploration
well proposal is prepared.
The objectives of this well will be:
• to determine the presence of hydrocarbons
• to provide geological data (cores, logs).
• to flow test the well to determine its production
potential, and obtain fluid samples.
Management des operation Prepared by Abidi Saad
Elfakeur 2017
The life of an oil or gas field can be sub-divided into
the following phases:
• Exploration
• Appraisal
• Development
• Maintenance
• Abandonment

Management des operation Prepared by Abidi Saad


Elfakeur 2017
Management des operation Prepared by Abidi Saad
Elfakeur 2017
exploration phase
The length of the exploration phase will depend on
the success or otherwise of the
exploration wells.
If an economically attractive discovery is made on the
prospect then the company enters the Appraisal phase
of the life of the field.

Management des operation Prepared by Abidi Saad


Elfakeur 2017
Appraisal phase
During this phase, more seismic lines & more wells
will be drilled to establish the lateral and vertical
extent of (to delineate) the reservoir.
further information, on the basis of which future plans
will be based. will be combined with all of the
previously collected data.
If the prospect is deemed to be economically
attractive a Field Development Plan will be submitted

Management des operation Prepared by Abidi Saad


Elfakeur 2017
Development phase
If approval for the development is received then the
company will commence drilling
Development wells and constructing the production
facilities according to the Development Plan.

Management des operation Prepared by Abidi Saad


Elfakeur 2017
Maintenance phase
Once the field is ‘on-stream’ the companies’
commitment
continues in the form of maintenance of both the wells
and all of the production facilities.
After many years of production it may be found that the
field is yielding more or possibly less hydrocarbons
than initially anticipated at the Development Planning
stage and the company may undertake further
appraisal and subsequent drilling in the field.

Management des operation Prepared by Abidi Saad


Elfakeur 2017
Abandoned phase
At some point in the life of the field the costs of
production will exceed the revenue from the field and
the field will be abandoned.
All of the wells will be plugged and the surface facilities
will have to be removed in a safe and environmentally
acceptable fashion.

Management des operation Prepared by Abidi Saad


Elfakeur 2017
OBJECTIVE OF WELL PLANNING
Well planning is an orderly process involving a number
of steps.
The flow path for well planning is given in fig. below
The objective of well planning is to formulate a drilling
programme for many variables for drilling a well that
has the following characteristics:
(1) Safety
(2) Minimum cost
(3) Usable.

Management des operation Prepared by Abidi Saad


Elfakeur 2017
OBJECTIVE
Safety

Safety should be the highest priority in well planning.


Personnel considerations must be placed above all the
other aspects of the plan. The second priority involves
the safety of well and rig-equipment. The contingency
plan for fire and blowout should form an integral part
of well plan.

Management des operation Prepared by Abidi Saad


Elfakeur 2017
OBJECTIVE
Minimum cost

An important objective of well planning is to minimize


the cost of the well without sacrificing or
compromising on the safety aspects. In most cases, the
cost of the well can be reduced to certain extent as
additional effort is given to the well planning

Management des operation Prepared by Abidi Saad


Elfakeur 2017
Usable
OBJECTIVE
The objective of drilling a hole to the target depth will
not be achieved if the final well configuration is not
usable. Usable means:
* The final hole diameter is large enough to facilitate
desired completion
* The pay zone is not irreparably damaged

Management des operation Prepared by Abidi Saad


Elfakeur 2017
Management des operation Prepared by Abidi Saad
Elfakeur 2017
OBJECTIVE

Management des operation Prepared by Abidi Saad


Elfakeur 2017
INPUT WELL PLANNING
INPUT DATA FOR

The informations required for planning of a well are:


(1) The objective of the well.
(2) Well data package consisting of seismic data, location map,
structural map, expected pore pressures, offset and correlation
logs and information on formation type, top and thickness.
(3) Offset and correlated drilled wells data consisting of bit
record, mud reports. Mud logging data, drilling reports, well
completion reports, complication reports and
production/injection histories.
(4) Proposed logging, testing and coring programmes.
(5) Government reflection and Company's policy.

Management des operation Prepared by Abidi Saad


Elfakeur 2017
DRILLING PROGRAMME PREPARATION
The preparation of good Drilling Programme is very vital for safe and effective drilling
operation.
Drilling Programme can be broken down into 12 main sections:

(1) Well details


(2) Well objectives
(3) Casing policy
(4) Wellhead selection
(5) BOP requirements
(6) Cementing programme
(7) Deviation programme
(8) Survey requirements
(9) Mud programme
(10) Bit and Hydraulics programme
(11) Evaluation requirements
(12) Estimation of well cost

All Drilling Programmes will contain the above information in some form. These sections
are covered in more detail below. Specialised wells could also contain other relevant data.

Management des operation Prepared by Abidi Saad


Elfakeur 2017
DRILLING PROGRAMME FOR WELL

CONTENTS 5. DRILLING SPECIFICATION


5.1 Hole Sections
5.2 Casing Programme
1. GENERAL DATA 5.3 Cementing Programme
2. DRILLING RIG DATA 5.4 Drill String
3. GEOLOGY 5.5 Mud Programme
3.1 Geological Column 5.6 Hydraulics Programme
3.2 Formation Tops 5.7 Casing Pressure Tests & L.O.T.
4. WELL DATA 5.8 Surveying
4.1 Pore Pressure Profile 5.9 Well Control
4.2 Fracture Pressure Profile 6. BILL OF MATERIAL
4.3 Temperature Gradient 7. FORMA TION EV ALUA TION
4.4 Potential Hole Problems 7.1 Wireline Logging
4.5 Formation Dip 7.2 Coring
4.6 Expected Hydrocarbon Shows 7.3 Testing
8. SUSPENSION / ABANDONMENT
9. SAFETY REGULATIONS
10. PROGRAMME TIMINGS

Management des operation Prepared by Abidi Saad


Elfakeur 2017
DRILLING PROGRAMME FOR WELL
GENERAL DATA DRILLING RIG DATA
1.1 Location 2.1 Rig Name
1.2 Fields/Structure 2.2 Rig Type
1.3 Well Name 2.3 Derrick
1.4 Well Type 2.4 Travelling Block
1.5 Location Data 2.5 Rotary Table
1.6 Water Depth 2.6 Draw Works
1.7 Well Objectives 2.7 Drum Size
1.8 Target Tolerance 2.8 Wire Rope
1.9 Total Depth 2.9 Pumps
1.10 TD Criteria 2.10 BOP
2.10.1 Annular
2.10.2 Ram Type
2.11 BOP Control System
2.12 Solid Control Equipment
2.12.1 Shale Shaker
2.12.2 Desilter & Desander
2.13 Engines
2.14 Hydraulic Choke
2.15 Well Head
Management des operation Prepared by Abidi Saad
Elfakeur 2017
DRILLING PROGRAMME FOR WELL
GEOLOGY

3.1 Geological Column


3.2 Formation Tops
Formation Depth(m) Error Bar(m)

WELL DATA

4.1 Pore Pressure Profile


Depth(m) Pore Pressure (kg/cm2) EMW (sg)
4.2 Predicted Fracture Gradient Profile
Depth (m) Fracture Pressure (kg/cm2) EMW (sg)
4.3 Temperature Gradient
4.4 Potential Hole Problems
Hole Sections
Section I
Section II
Section III
4.5 Formation Dip
4.6 Expected Hydrocarbon Shows

Management des operation Prepared by Abidi Saad


Elfakeur 2017
DRILLING PROGRAMME FOR WELL
DRILLING SPECIFICATIONS
5.1 Hole Sections
Hole/Casing Depth (m) Casing Setting
Size (inch) Depth Criteria
5.2 Casing Programme
Size Setting Depth Weight Grade Connection
(inch) (m) (Kg/m)
5.3 Cementing Programme
Casing Top Lead/Tail Type Density (sg)
5.4 Drill String
5.5 Mud Programme
Hole Size Mud Type Density (sg)
5.6 Hydraulics Programme
5.7 Casing and Leak-off Testing
5.7.1 Casing Tests
5.7.2 Leak-off Tests
5.8 Survey Programme
5.9 Well Control
5.9.1. Well head
5.9.2. BOP Stack
5.9.3. BOP Drill
5.9.4. BOP Testing Procedure
5.9.4.1. Function Testing
5.9.4.2. Pressure Testing

Management des operation Prepared by Abidi Saad


Elfakeur 2017
DRILLING PROGRAMME FOR WELL

BILL OF MATERIAL
6.1 Phase I
S.No. Material Description
6.2 Phase II
S.No. Material Description
6.3 Phase III
S.No. Material Description
FORMATION EVALUATION
7.1. Wireline Logging
7.1.1. Operational Logging Suite
7.1.2. Top Hole Logging Suite
7.1.3. Intermediate Logging Suite
7.1 .4. Final Logging Suite
7.1.5. Cased Hole Logs
7.2 Coring
7.3 Testing
SUSPENSION/ABANDONMENT
SAFETY REGULATIONS
WELL PROGRAMME TIMINGS

Management des operation Prepared by Abidi Saad


Elfakeur 2017
DRILLING PERSONNEL
Drilling a well requires many different skills and involves many companies. The oil
company who manages the drilling and/or production operations is known
as the operator.
There are many different management strategies for drilling a well but in virtually all
cases the oil company will employ a drilling contractor to actually drill the well.
The drilling contractor owns and maintains the drilling rig and employs and trains the
personnel required to operate the rig. During the course of drilling the well certain
specialised skills or equipment may be required (e.g. logging, surveying). These are
provided by service companies. These service companies develop and maintain
specialist tools and staff and hire them out to the operator, generally on a day-rate
basis.

Management des operation Prepared by Abidi Saad


Elfakeur 2017
DRILLING PERSONNEL

The contracting strategies for drilling a well or wells range from day-rate contracts
to turnkey contracts. The most common type of drilling contract is a day-rate
contract. In the case of the day-rate contract the operator prepares a detailed well
design and program of work for the drilling operation and the drilling contractor
simply provides the drilling rig and personnel to drill the well. The contractor is paid
a fixed sum of money for every day that he spends drilling the well. All consumable
items (e.g. drilling bits, cement), transport and support services are provided by the
operator.

Management des operation Prepared by Abidi Saad


Elfakeur 2017
DRILLING PERSONNEL

In the case of the turnkey contract the drilling contractor designs the well, contracts
the transport and support services and purchases all of the consumables, and charges
the oil company a fixed sum of money for whole operation. The role of the operator
in the case of a turnkey contract is to specify the drilling targets, the evaluation
procedures and to establish the quality controls on the final well

Management des operation Prepared by Abidi Saad


Elfakeur 2017
DRILLING PERSONNEL
In all cases the drilling contractor is responsible for maintaining the rig and the
associated equipment.
The operator will generally have a representative on the rig (sometimes called the
“company man”) to ensure drilling operations go ahead as planned, make decisions
affecting progress of the well, and organise supplies of equipment. He will be in daily
contact with his drilling superintendent who will be based in the head office of the
operator. There may also be an oil company drilling engineer and/or a geologist on
the rig.

Management des operation Prepared by Abidi Saad


Elfakeur 2017
DRILLING PERSONNEL
The drilling contractor will employ a toolpusher to be in overall charge of the rig. He
is responsible for all rig floor activities and liaises with the company man to ensure
progress is satisfactory. The manual activities associated with drilling the well are
conducted by the drilling crew. Since drilling continues 24 hours a day, there are
usually 2 drilling crews. Each crew works under the direction of the driller. The crew
will generally consist of a derrickman (who also tends the pumps while drilling),
3roughnecks (working on rig floor), plus a mechanic, an electrician, a crane operator
and roustabouts (general labourers).
Service company personnel are transported to the rig as and when required. Sometimes
they are on the rig for the entire well (e.g. mud engineer) or only for a few days
during particular operations (e.g. directional drilling engineer).
Management des operation Prepared by Abidi Saad
Elfakeur 2017
DRILLING PERSONNEL
An overall view of the personnel involved in drilling is shown in Figure

Management des operation Prepared by Abidi Saad


Elfakeur 2017
RIG COMPONENTS

A drilling rig is a device used to drill, case and cement water, oil and gas wells.
The correct procedure for selecting and sizing a drilling rig is as follows:
1. Design the well
2. Establish the various loads to be expected during drilling and testing and use the
highest. This point establishes the DEPTH RATING OF THE RIG.
3. Compare the rating of existing rigs with the design loads
4. Select the appropriate rig and its components.

Management des operation Prepared by Abidi Saad


Elfakeur 2017
RIG COMPONENTS
Types of Rigs
Drilling rigs are classified as
• Land rigs
• Offshore rigs
There are two types of offshore rigs:
1. Floating rigs:
• Semisubmersible
• Drillships
2. Bottom-supported rigs: There are three types:
• Jack-ups
• Platform
• Barge
Management des operation Prepared by Abidi Saad
Elfakeur 2017
RIG COMPONENTS
Rig Components Sizing
The major components that need to be selected and sized for the purpose of rig sizing
are:
1. Hoisting
2. Rotating Equipment
3. Circulating System
4. Tubular Goods
5. Pressure Control
6. Derrick Capacity And Substructure
7. Power Requirements for the above
Management des operation Prepared by Abidi Saad
Elfakeur 2017
RIG COMPONENTS
Hoisting
Drawworks: this is an assembly of a rotating drum, a series of shafts, clutches, chains and
gears for changing speed and for reversing,
Crown Block: A block located at the top of the derrick. It contains a number of sheaves on
which is wound the drilling line.
Drilling line : is reeved round the crown block and travelling block sheaves with the end line
going to an anchoring clamp called “DEAD LINE ANCHOR”.
The static line is called the deadline.
Travelling Block: a diamond-shaped block
containing a number of sheaves which
is always lessthan those in the crown block.
The Hook: connects the Kelly or topdrive with
thetravelling block.
Management des operation Prepared by Abidi Saad
Elfakeur 2017
RIG COMPONENTS
Rotating Equipment
The main components are:
1. Rotary table
2. Kelly
3. Top Drive (this is equivalent to the Kelly and rotary table, i.e. either top drive or
Kelly/rotary table
4. Swivel
5. Rotary hose

Management des operation Prepared by Abidi Saad


Elfakeur 2017
RIG COMPONENTS
Rotating Equipment
The Kelly/Top Drive:
The Kelly/ top drive provide the rotation required for rock breakage (drilling). The Kelly
is the rotating link between the rotary table and the drill string.
The Kelly comes in lengths ranging from 40 to 54 ft with cross sections such as hexagonal
(most common), square or triangular.
The top drive is basically a combined rotary table and Kelly. It is powered by a separate
motor and transmits rotation to the drill string directly without the need for a rotary table.
The Rotary Horsepower requirement is usually between 1.5 to 2 times the rotary speed,
depending on hole depth. Hence for rotary speed of 200 rpm, the power requirement is about
400 HP.

Management des operation Prepared by Abidi Saad


Elfakeur 2017
RIG COMPONENTS
Rotating Equipment
Rig Floor Equipment and Instruments Instruments
1. Tongs • Standpipe pressure gauge
2. Iron Roughneck • Weight indicator
3. Slips • Pump speed
4. Bit breakers • Pit level indicator
5. Lift Nipples • Gas detectors
6. Mud bucket
7. Elevators
8. Safety clamps

Management des operation Prepared by Abidi Saad


Elfakeur 2017
RIG COMPONENTS
Circulating System
Mud pump: The heart of the circulating system is the mud pumps. There are two
types of pumps used in the oil industry: Duplex and Triplex.
A basic pump consists of a piston (the liner) reciprocating inside a cylinder. A pump
is described as single acting if it pumps fluid on the forward stroke (Triplex
pumps) and double acting if it pumps fluid on both the forward and backward
strokes (Duplex).
Mud Handling Equipment:
Shale Shakers:
Mud Pits
Mud degasser
Centrifuges and mud cleaners
Desanders and desilters
Management des operation Prepared by Abidi Saad
Elfakeur 2017
RIG COMPONENTS
Tubular
The components of the drillstring are:
1. Drillpipe
2. Drillcollars
3. Accessories including:
• Heavy-walled drillpipe
• Stabilisers
• Reamers
• Directional control equipment
The selection of the above equipment determines the loading
on the derrick.

Management des operation Prepared by Abidi Saad


Elfakeur 2017
RIG COMPONENTS
Pressure Control Equipment

BOPs equipment are selected base on 8. Accumulator and BOP Control


the maximum expected wellbore System (Koomey Unit
pressures. 9. Drilling spools: used as an element
This is the sizing exercise. between rams to provide mud exit
Select: lines such as choke and kill lines.
1. Diverter if required, 10. Drillpipe Blowout Preventers:
2. Annular preventer include:
3. Ram preventers • Kelly cock
4. Blind or Shear rams • Drop in valve (check valve)
5. Choke manifold • Float valve
6. HCR valves • Full opening safety valves
7. Choke and Kill lines

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RIG COMPONENTS
Pressure Control Equipment

Management des operation Prepared by Abidi Saad


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RIG COMPONENTS
Derrick Capacity and Substructure
The derrick provides the necessary height and support to lift
loads in and out of the well. The derrick must be strong
enough to support the hook load, deadline and fastline
loads, pipe setback load and wind loads.
There are two types of derricks:
1. Standard Derrick: is a bolted structure that must be
assembled part by part, usually used on offshore platforms.
2. Mast or Portable derrick: This type is pivoted at its base
and is lowered to the horizontal by the use of drawers after
completing the well and the rig is ready to move to another
location. the mast dismantles into a number of pin-jointed
sections, each of which is usually a truck load.
Management des operation Prepared by Abidi Saad
Elfakeur 2017
RIG COMPONENTS
Power Requirements
The total power requirement of a rig is the sum of the power requirement
of:
1. Drawworks
2. Mud pumps
3. Rotary system
4. Auxiliary power requirements for lighting etc.
5. Life support systemsThe above total power may not be required in a
continuous but in an intermittent mode.
The actual power required will depend on the drilling job being carried
out. The maximum
power used is during hoisting and circulation. The least power used is
during wireline
operations.
The majority of rigs in current use require between 1000 – 3000
horsepower.
Management des operation Prepared by Abidi Saad
Elfakeur 2017
WELL COSTING
Content

1 Reasons
2 Factors Affecting Of Well Costs
3 Drilling Time Estimate
5 Elements of Well Costing
6 Risk Assessment In Drilling Cost Calculations
7 Contracting Strategies

Management des operation Prepared by Abidi Saad


Elfakeur 2017
WELL COSTING
Reasons
As will be discussed later, there many elements which
comprise the well cost. These range from rig, casing,
people, drilling equipment etc.
The final sheet summarizing the well cost is usually
described as the AFE: “Authorisation
For Expenditure”. The AFE is the budget for the well.
Once the AFE is prepared, it should
then be approved and signed by a senior manager from
the operator.

Management des operation Prepared by Abidi Saad


Elfakeur 2017
WELL COSTING
Reasons
There are several reasons for producing a well cost,
including:
1. Budgetary control
2. Economics
3. Partners recharging
4. Shareholders

Management des operation Prepared by Abidi Saad


Elfakeur 2017
WELL COSTING
Factors Affecting Of Well Costs
Well costs for a single well depend on:

1. Geographical location: land or offshore, country


2. Type of well: exploration or development wells, HPHT or sour
gas
3. Drillability
4. Hole depth
5. Well target(s)
6. Profile (vertical/ horizontal /multilateral)
7. Subsurface problems
8. Rig costs and performance: Type, and rating of rig
9. Completion efficiency
10. Knowledge of the area: exploration or development
Management des operation Prepared by Abidi Saad
Elfakeur 2017
WELL COSTING
Factors Affecting Of Well Costs
The total well costs for a development drilling
programme comprising several wells depend on:
• Rig rate
• Well numbers and well type
• Total hole depth
• Well layout and spacing
• Specifications of equipment
• Target tolerances
• Water depth
Management des operation Prepared by Abidi Saad
Elfakeur 2017
WELL COSTING
Drilling Time Estimate
The time spent on a well consists of:

• Drilling times spent on making hole, including


circulation, tripping, directional work, geological sidetrack
and hole opening.
• Flat times spent on running and cementing casing,
making up BOPS and wellheads.
• Testing and completion time.
• Formation evaluation time including coring, logging
• Rig up and rig down of rig.
• Non-productive time, “(NPT)”
Management des operation Prepared by Abidi Saad
Elfakeur 2017
WELL COSTING
Drilling Time Estimate
Before an AFE can be prepared, an accurate “estimate”
of the time required to drill the well
must be prepared. The time estimate should consider:
1. ROP in offset wells. From this the total drilling time
for each section may be determined.
2. Flat times for running and cementing casing
3. Flat times for nippling Up/down BOPs and nippling
up wellheads
4. Circulation times.
5. BHA make up times.
Management des operation Prepared by Abidi Saad
Elfakeur 2017
WELL COSTING
Drilling Time Estimate
Estimated flat times planned drilling times

Using data from Table below, a time-depth curve, beow can be


constructed. The graph shown is the planned time curve. During drilling,
actual drilling times are plotted on the same graph to compare actual
performance against planned performance.
Management des operation Prepared by Abidi Saad
Elfakeur 2017
Management des operation Prepared by Abidi Saad
Elfakeur 2017
WELL COSTING
Non Productive Time

The time required for any routine or abnormal operation


which is carried out as a result of a failure is defined as Non
Productive Time (NPT)
Waiting on weather or Waiting on Orders, people or
equipment is not NPT. This is standby time.
Non-Productive Time (NPT) in drilling operations currently
account for 20% of total productive time.

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WELL COSTING
Non Productive Time
Classification of NPT

1. Rig equipment
2. Surface Equipment
3. Downhole Equipment
4. Drillstring Equipment
5. Logging equipment
6. Stuckpipe and Fishing of BHA equipment
7. Miscellaneous fishing
8. Casing Hardware and Cementing Equipment
9. Fluids
10. Hole problems
11. Well Control
12. Testing and Completion NPT
Management des operation Prepared by Abidi Saad
Elfakeur 2017
WELL COSTING
Elements of Well Costing
There are three main elements of the well cost. No
matter what service or product is used, it will fall
under one of the following three cost elements,
namely:
1. Rig costs
2. Tangibles
3. Services

Management des operation Prepared by Abidi Saad


Elfakeur 2017
WELL COSTING
Elements of Well Costing
Rig Costs
As the name implies, rig costs refer to the cost of hiring the drilling rig
and its associated equipment. This cost can be up to 70% of well cost.
Rig cost depends entirely on the rig rate per day, usually expressed as
$/day.
Rig rate depends on:
• Type of rig
• Market conditions
• Length of contract
• Days on well
• Mobilisation/ Demobilisation of rig and equipment
• Supervision
• Additional rig charges

Management des operation Prepared by Abidi Saad


Elfakeur 2017
WELL COSTING
Elements of Well Costing
Tangibles
Tangibles refer to the products used on the well include:

• Casing
• Tubing/completion equipment
• Wellhead/accessories
• Bits
• Coreheads
• Cement products
• Mud products
• Solid control consumables
• Fuel and lubes
• Other materials and supplies

Management des operation Prepared by Abidi Saad


Elfakeur 2017
WELL COSTING
Elements of Well Costing
Services
This group of costs refers to any service required on the well.
1.Communications: This refers to telephones, data transfer etc. A lump sum cost
or cost per day is usually used.
2.Rig positioning: The cost required to position the rig. This is usually required
in offshore operations.
3.Logging (wireline): The cost of wireline logs, both open hole and cased hole
logs.
4.MWD: This is the cost of MWD/LWD(measurement while drilling or logging
while drilling).
5.Downhole Motors: The cost of using downhole motors during directional
drilling
6.Solids Control Equipment: This cost refers to the consumables required for
solids control equipment
7.Mud Engineering: This is the cost of the mud engineer and the services required
to maintain the mud.
Management des operation Prepared by Abidi Saad
Elfakeur 2017
WELL COSTING
Elements of Well Costing
8.Directional Engineering: This is the cost of the
directional engineer, software and support required during
directional drilling
9.Surveying: This is the cost of running surveys inside the
hole to determine hole angle and azimuth.
10.Cementing: This is the cost of renting the cementing unit
and the cement engineer.
11.Mud Logging: This is the cost of renting the mud logging
unit and the engineers
12.Fishing: This is an ad-hoc cost of renting fishing
equipment and cost of engineers. parts of the hole.
13.Downhole tools: Any tool required which is not supplied
by the drilling contractor; including jars, shock subs etc.
14.Casing services:This refers to the equipment required to
run the casing and cost of engineers.
Management des operation Prepared by Abidi Saad
Elfakeur 2017
WELL COSTING
Risk Assessment In Drilling Cost Calculations
The decision of drilling well will depend on the estimated.
Hence it is essential that cost estimates as low as possible
and produced in a consistent manner.
These criteria are achieved through the application of risk
assessment.
Well cost estimates are made up of two major elements:
• Time dependent costs
• Tangible costs

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WELL COSTING
Risk Assessment In Drilling Cost Calculations
Time dependent costs are dependent entirely on the time
required to drill the well.
Tangible costs can well be defined at the budgetary (before
a detailed well plan is made) The risk involved in estimating
tangibles is usually small.
Risk assessment is defined in terms of the probability of
meeting a given target. There are three levels of risks:
1. P10
2. P50
3. P90

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WELL COSTING
Risk Assessment In Drilling Cost Calculations
P10 Estimate: This is an estimate which has only a 10%
chance of being achieved. This is a highly optimistic
estimate which can only be achieved under exceptional
circumstances.

Estimating the P10 valueAs there is no exact method for


estimating P10, it is now customary to base P10 value on the
best possible performance on any operation on any well in
the area. For example, if it took 10 hours to run and cement
casing in well 1, but took longer on other wells, then the
P10 value for running and cementing the casing is 10 hours.

Management des operation Prepared by Abidi Saad


Elfakeur 2017
WELL COSTING
Risk Assessment In Drilling Cost Calculations
P50 Estimate: This is the key figure in most well cost
estimates. As implied, there is a 50% chance of that
the well will be drilled for less than this figure and a 50%
chance that it will cost more.
Estimation of P50 Value: Assume that the approach for
calculating well costs was based on first estimating the P10
value. The P50 value should then be derived from the
assumed P10 value.
If the P10 time for
drilling 36” hole, is 1.5
days, then the P50 value
is: 1.5 + 0.17 =1.67 days
Management des operation Prepared by Abidi Saad
Elfakeur 2017
WELL COSTING
Risk Assessment In Drilling Cost Calculations
P90 Estimate:This is an estimate of well cost which is likely to be
met 90% of the time and that well cost can not be exceeded
except under exceptional cases.
Estimation of P90 Value
Applying the same approach as for the P50 value, the P90 for the
36” hole may be derived as follows:
The P90 value is the P10 value plus 0.28 days, i.e. 1.78 days.

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Drilling Contracting Strategies
There are basically four types of contracts which are currently
used in the oil industry:

1. Conventional
2. Integrated Services (IS)
3. Integrated Project Management (IPM)
4. Turn Key

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Drilling Contracting Strategies
1. Conventional

This is the most involved type of contract


the operator has total control on the operation and carries
full risk
the advantage that lessons learnt during drilling operations
are kept with the company and used to improve future
operations.
The contractor will be paid if operations are completed
ahead of the planned drilling time.
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Drilling Contracting Strategies

2. Integrated Services (IS)


major services are integrated under two or three main
contracts.
The lead contractors would subcontract all or parts of
it to other subcontractor, and is free to choose its
subcontractors.
The operator still holds major contracts such as rig,
wellheads and casing.
Also the operator appoints one of its staff to act as a
coordinator for the drilling operation.
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Drilling Contracting Strategies
3. Integrated Project Management (IPM)
In this type of contract, a main contractor is chosen. This contractor is the
Integrated Project Management (IPM) contractor.
The contractor is responsible for 20-30 service companies, Service companies
may be responsible for other service companies.
The drilling operation will be controlled by a representative from the IPM
contractor.
The incentive contract based on beating the time curve is the most common
one.
this is the worst kind of contract for the operator because:
• There is virtually no learning for the operator. Lessons learnt are lost as the
IPM contractor
• The incentive contract is built on a time curve developed and based on the
contractor’s experience. Use of better equipment and personnel may beat the
IPM contractor’s time-curve.
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Drilling Contracting Strategies
4. Turn Key:
This is the easiest of all the above contracts.
The operator chooses a contractor.
The contractors submits a lump sum for drilling a well: from
spud to finish with operator virtually not involved.
The contractor carries all risks if the well comes behind time
and also gains all benefits if he should drill the well faster.
Contractors only opt for this type of contract if they know the
area extremely well or during times of reduced activities.

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The Key To Good Drilling Operations
In the drilling business, the communication is the key to
successful drilling operations. "The one thing that all
successful operators and contractors have in common is
good communication."
Communication in drilling begins before the first foot is
drilled.
It begins in the pre-planning and pre-spudmeeting.
In order for effective communication to take place in that
meeting, many things must be considered.

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The Key To Good Drilling Operations

Here are just a few of those considerations.


1. The meeting must be well planned by the engineer. (He
must meet with a number of people before he even makes
his plans.)
2. The purpose of the meeting needs to be very clearly spelled
out. Here are five purposes for that pre-spud meeting:
1. to open all doors of communication,
2. to reduce unscheduled events,
3. to review the well plans,
4. to review the geological considerations
5. to co-ordinate the responsibilities between the contractors,
service companies and the operators.

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The Key To Good Drilling Operations

3. The meeting needs to have the right people at the meeting.


1. The Operator's Superintendent
2. the Contractor's Superintendent
3. The tool pushers and
4. The drillers,
5. the foremen,
6. the engineers,
7. the geologist, and
8. the representatives from the service companies.
Unless all these key individuals are at the meeting to both
communicate their concerns with others and come to a mutual
understanding of how the program is to be implemented, the
efficiency, profitability and success of the entire drilling
operation is jeopardized.
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The Key To Good Drilling Operations

Communication does not stop at the pre-spud meeting. It continues


throughout all the various meetings that are held. At the
Operator/Contractor meeting, which should be private, they need to
review their respective responsibilities, the MMS requirements, the
IADC report, the BOP drills….
In addition to good communication at the various meetings, there also
needs to be good communication between the crew and the home
office.
there is another type of communication that is extremely important in
a drilling operation. The driller must learn to communicate with the
bottom of the hole. He can do this through monitoring trends. The
various trends tell the driller exactly what is happening down below
and gives him the information that everyone needs to make critical
decisions on a daily basis.

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The Key To Good Drilling Operations

Good communication helps management properly


supervise and optimize their operations.
Five objectives for success Drilling Operations are:
How to supervise a drilling operation.
How to preplan field operations.
How to analyze and solve drilling problems.
How to prevent unscheduled events.
How to communicate on the rig.

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Hierarchy Drilling Crew

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Contractor Crew
ROUSTABOUT

The Lease Hand is the entry level position to the drilling industry. The Lease Hand works
closely with the Rig Manager and the Driller to ensure the efficient operation of the rig
site.

Duties:
General housekeeping activities associated with daily operations,
May be required to drive the crew vehicle to and from camp locations,
Handle cords, hoses and light fixtures,
Assist trucks move equipment on/off site,
Shovel duties/pound ground rods,
Carry planks/grating,
Operate pressure washer – washing the rig,
Assist crew members in various activities,
Shadow mentor and asking questions,
Learn the company policies and procedures and,
Learn and adhere to all Company, Customer and Government Safety Policy, Procedures
and Practices and Regulations.

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Contractor Crew
FLOOR HAND
The Floor Hand works the drill floor operating manual tongs and pulling slips when
tripping drill pipe in and out of the hole. The Floor Hand reports to the Motor Man and
the Driller. The Floor Hand assists in various jobs around the drilling rig (e.g. pressure
washing, hauling mud products, etc.). The position requires a H2S Alive certificate and
workers are required to be fit and able to lift heavy loads.

Duties:

Assist the Derrick Hand and Driller on the drill floor while making trips,
Ensure the drill floor is kept clean,
Conduct preventative maintenance on equipment,
Assist the Derrick Hand in mixing mud and chemicals,
Assist in cleaning and painting as required by the Driller,
Assist in moving the rig, rigging up and rigging out,
Perform the duties of an all-around worker on the drilling rig and,
Learn and adhere to all Company, Customer and Government Safety Policy, Procedures
and Practices and Regulations.

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Contractor Crew
DERRICK HAND

The Derrick hand is responsible for maintaining circulation equipment while drilling. During tripping
operations the Derrick Hand works above the rig floor at the monkey board. The Derrick Hand
would have worked their way up through the drilling rig positions, have a good knowledge all
positions and will relieve the Driller once deemed competent.
Duties:
Work on the catwalk or operate the hydraulic catwalks,
Work and maintain circulation on mud tanks,
Mix mud & organize mud products,
Work and maintain pumps,
Work at heights while tripping and conducting derrick inspections,
Assist the crew in nipple up procedures,
Supervise and assist during rig up/out operation,
Assist in running casing,
Ensure anyone climbing the derrick uses a full body harness and fall protection above 2 meters,
Clean and practice good housekeeping in work areas and,
Assist the Driller in the maintenance of the drilling rig and other equipment.
Learn and adhere to all Company, Customer and Government Safety Policy, Procedures and Practices
and Regulations.

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Contractor Crew
ASSISTANT DRILLER
The Assistant Driller will occasionally operate the main controls on the drilling rig; and assists in
managing the crew on shift to ensure they follow Company Policy and Procedure. The Assistant
Driller reports to the Driller and Rig Manager and communicates with the 3rd party services
contractors on the drill floor.

Duties:
Operate rig floors controls,
Run or assist in running special tools into the hole,
Constant lookout for unsafe conditions or acts,
Document daily activities in the Tour Report,
Assist the Driller in providing on the job training to all crew personnel in all aspects of operations,
Help the Driller lead crew meetings on Safe Work Procedures,
Supervise crew on shift during various activities through progressing of well,
Follow company procedures for hiring, progressive discipline and termination,
Supervise crew during rig up/out operations. Assist trucking companies with equipment spotting,
Assist the Driller in getting the Rig Manager information on parts required and maintaining rig
supplies and,
Report and investigate with the Rig Manager all accidents on his shift.
Learn and adhere to all Company, Customer and Government Safety Policy, Procedures and Practices
and Regulations.

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Contractor Crew
DRILLER
The Driller operates the main controls on the drilling rig; and manages the crew
on shift to ensure they follow Company Policy and Procedure. The Driller
reports to the Rig Manager and communicates with the 3rd party services
contractors on the drill floor. The Driller is responsible for disciplinary action.
Duties:

Operate rig floors controls,


Run or assist in running special tools into the hole,
Constant lookout for unsafe conditions or acts,
Document daily activities in the Tour Report,
Lead crew meetings on Safe Work Procedures,
Supervise crew on shift during various activities through progressing of well,
Provide on the job training to all crew personnel in all aspects of operations,
Supervise crew during rig up/out operations. Assist trucking companies with equipment
spotting,
Follow company procedures for hiring, progressive discipline and termination,
Provide Rig Manager with information on parts required, maintaining rig supplies and,
Report and investigate with the Rig Manager all accidents on his/her shift.
Learn and adhere to all Company, Customer and Government Safety Policy, Procedures
and Practices and Regulations.
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Contractor Crew
RIG MANAGER
This individual will have worked his way from the Floor Hand position up through the ranks becoming familiar with
equipment and company procedures. The Rig Manager will have a minimum of 1 year Relief Rig Manager
(Driller/Relief) and two years of drilling experience. He must have requisite computer skills and have all the necessary
training for the position. The Rig Manager possesses the ability to observe and train workers with different
background and abilities.

Duties:
Respond to the requests of the Operations Manager and the Field Supervisor,
Manage all activities on location with the rig, crew and the equipment,
Communicate with the oil and gas company representative (clients),
Assess crew-member competencies and determine training needs,
Execute approved training and operational plans directing drilling crews as required,
Ensure compliance to policies and programs for all individuals reporting to the drilling site,
Prepare and conduct site safety meetings,
Organize the rig move and the moving/spotting of the rig and equipment on location,
Ensure maintenance of the rig equipment is completed as required by company policy,
Manage maintenance and equipment upgrades within Company’s’ financial expectations. Maintain all documentation
on a daily and monthly basis,
Ensure good communication between the Nisku Engineering and Personnel departments in arranging off site training
and recruiting, maintaining/upgrading rig and associated equipment,
Ensure compliance with all Company, Customer and Government Safety Policy, Procedures and Practices, and
Regulations.
Monitor and correct activities and/or behavior to ensure compliance to environmental policy and procedures,
Ensure all required documentation is maintained, including certifications and daily tour reports and,
Prepare and submit daily reports to Operations.

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Operator Crew
SENIOR DRILLING SUPERVISOR
The Senior Drilling Supervisor is responsible for the supervision and implementation of the well
programme, and to ensure that all well operations are conducted in a safe and efficient manner,
within the requirements of Company policy and Country legislation.

Duties:
To supervise contractors in the execution of all drilling and associated programmes, ensuring that all
objectives are met in a safe and efficient manner and in keeping with all regulatory requirements.
To co-ordinate and provide the necessary leadership to carry out all activities with respect to the
various offshore programmes. To co-ordinate the collection of all data to be transmitted back to the
base office, and to ensure the correctness, content and quality of such data. To be the custodian and
responsible person for the drilling reporting.
To liaise and report directly to the Offshore Installation Manager with a view to keeping him fully
abreast of current drilling and associated activity and to make him aware of any condition which may
require certain operating conditions or priority setting.
To continually monitor the effectiveness of the ongoing process and to report on same. To be able to
suggest and discuss any changes which may be required to the programme with a view to
improvement.
To supervise the maintenance work of drilling related equipment, in accordance with procedures, to
ensure safe and efficient operation.
To take prompt action, in the event of an emergency within the drilling package, to safeguard life and
minimise damage to properties and any detrimental effect on the environment.
To evaluate and report on the performance of service contractors to safeguard the technical and
commercial interests of the company.
To execute thoroughly, any incident investigation, analysis and follow up in order to prevent
recurrence.
To train, develop and motivate subordinates (also from other disciplines and contractors), and render
technical support and guidance with the aim to promote team spirit
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Operator Crew
SENIOR DRILLING SUPERVISOR
Duties:
Reports to the Drilling Superintendent
Monitor the daily drilling and completion operations. Update the appropriate charts, files and directional well course maps
Prepares Drilling Programs/ Load out list for each well. Document to be issued 1 week before spud.
Prepares drilling section of the implantation report.
Prepares program amendments: Changes to the manual / well programs or in case of unscheduled events, i.e. Squeeze
procedures, side track procedures, temporary abandonment procedures, etc…
Assembles and prepares the EOWR.
Analyzes and updates the equipment inventory spreadsheet for Float equipment, Casings, Liner hangers and Wellheads.
Prepares Ordres de Founrniture and follow up with A&C to ensure all equipment is ordered and delivered in a timely fashion in
order to minimize freight cost and meet the drilling requirements.
Reviews and analyzes past drilling programs and actual well data in an effort to identify safer and more environmentally sound
operations techniques, and areas where new innovative drilling ideas can be implemented. Recommends ways to reduce cost
while drilling and completing a well.
Participates in the preparation of the monthly drilling report.
Plans, implements, and monitors drilling fluid properties daily and ensures that post-well mud appraisal reports are prepared by
the drilling fluid contractor. Check invoices.
Plans, implements, and monitors cementing design proposals and ensures that post-well cementing appraisal reports are
prepared by the cementing companies. Check invoices.
Prepares calculations and makes recommendations pertaining to casing, tubing and drill string designs.
Liaison with the representatives from the Geology, Reservoir and Production Departments during the planning, execution, and
post-well analysis stages for each well.
Coordinate pre spud meetings.

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Game Plan Exemples

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Game Plan Exemples

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Game Plan Exemples

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Game Plan Exemples

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Reference
HUSSAIN RABIA: well engineering & construction
Associate Editions; J.C Rastogi: DRILLING
OPERATIONS MANUAL

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