NOVEMBER 2015

EXPLORATION | DRILLING | PRODUCTION

OILFIELD TECHNOLOGY NOVEMBER 2015 | EXPLORATION | DRILLING | PRODUCTION www.oilfieldtechnology.com
See it. Sample it.
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14 34

Contents November 2015

Volume 08 Issue 11

03 Comment 34 Stimulating sandstone reservoirs

Thomas JØrgersen, Fishbones, Norway, highlights the potential of
stimulation technology to increase well productivity.
05 World news
39 The key to connectivity
10 What’s new in West Africa? Kerry Daly, Expro, USA, explains how reservoir optimised perforation
David Bizley, Oilfield Technology, takes a look at the challenges and solutions can unlock hydrocarbon flow to produce vital revenue.
opportunities facing the oil and gas industry in West Africa.

43 An intelligent approach
14 Searching with satellites Savio Saldanha, Halliburton, USA, discusses zonal control in multizone
Michael Hall, Airbus Defence & Space, discusses how the latest satellite mature fields.
technology and derived products and services are being applied to increase
exploration efficiency and reduce risk.
47 Improving efficiencies
Craig Webster, AGR, UK, gives an overview of the role of the production
19 Illuminating reserves technologist.
Julie Wilmore, Brad Torry, Henrik Roende, Chris Egger and Adriana Thames,
TGS, USA, examine a data driven solution designed to improve imaging of
current and future reserves in the Mississippi Canyon. 51 Challenges of scale management
Gavin Forbes, Intertek, UK, examines the modern day obstacles facing scale
management in oil wells.
24 Challenges of the deep
Joe Killen and William Wills, Avalon Sciences, discuss the requirements
and delivery of seismic monitoring within extreme high pressure and 55 Screening out the problem
temperature borehole environments. Richard Jackson, 3M Oil & Gas, UK, explains how new ceramic technology
is helping to achieve a level of sand control that enables operators to fully
exploit their assets.
31 Making the right choices
Mark Freeman and Jake Steele, Tercel, review the benefits of a customisation
process in the design of drilling equipment. 59 Dust in the wind
Steve Hiner and Charlie Brake, CLARCOR Industrial Air, UK, examine dust
filtration solutions used to protect gas turbines.

63 Considering compression
Front cover Colman de Jong and Brian Todd, Dresser-Rand within Siemens Power
OILFIELD TECHNOLOGY

and Gas, review compression solutions for an economically challenged oil

Tercel Oilfield Products EXPLORATION | DRILLING | PRODUCTION NOVEMBER 2015
market.
designed and manufactured
the MicroCORE Cutting
System to deliver a two-in-one 67 Accommodating expatriates
Manton Townend, Air Energi, Singapore, explains how high costs and low
NOVEMBER 2015 | EXPLORATION | DRILLING | PRODUCTION

innovative solution to drill

transparency makes navigating South Korea’s property market without local
further and faster.
support a costly business.
By redistributing the high
energy consumption from the 69 Dangers of exposure
centre of the bit to the more Michael Tzouvelekis, Dräger, highlights the increasing dangers of exposure to
efficient areas of the cutting hydrogen sulfide in the oil and gas industry.
structure, the bit delivered
ROP gains up to 82% faster
than traditional cutting
www.oilfieldtechnology.com

structures.

Untitled-2 1 26/10/2015 09:17

OFC_OT_November_2015.indd 1 30/10/2015 15:11

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 Thinking about Mexico?
Go big, go Gigante.

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© 2015 TGS-NOPEC Geophysical Company ASA. All rights reserved.

 Comment David Bizley, Editor
david.bizley@oilfieldtechnology.com
Editorial
November 2015
Contact us
Managing Editor: James Little

W
james.little@oilfieldtechnology.com
inter is coming; the nights are drawing in and the weather is Editor: David Bizley
worsening, at least in the Northern Hemisphere. The year is gradually david.bizley@oilfieldtechnology.com
drawing to a close, yet the price of crude oil still spends most of its Editorial Assistant: Louise Mulhall
time hovering around the mid-to-high US$40s, only occasionally spiking above louise.mulhall@oilfieldtechnology.com

US$50. The return to prices above US$60, which more optimistic estimates had Design
promised would begin to occur around now, has yet to materialise. Production: Ben Munro
As the year progressed, it became increasingly obvious to many that ben.munro@oilfieldtechnology.com
this downturn was unlikely to disappear overnight. In fact, the problem of oversupply looks like it might
Sales
be around for a while yet: Russia continues to produce oil at well over 10 million bpd, levels not seen
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other large producers, such as Russia, joined it in doing so,1 but this looks unlikely. Indeed, even if such ben.macleod@oilfieldtechnology.com
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chris.lethbridge@oilfieldtechnology.com
Secretary General, Abdallah Salem el-Badri prefers to think of them as a “recommendation” rather than
a production quota.2 Meanwhile US output, boosted over recent years by the meteoric rise of shale Website
production, continues to average around 9.2 million bpd. Website Manager: Tom Fullerton
With this in mind, it is far from surprising that oil and gas companies are still tightening their belts and tom.fullerton@oilfieldtechnology.com
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US$200 billion of planned projects have been postponed or cancelled. The Financial Times goes so far as
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to state that “any new project requiring an oil price of more than US$60 a barrel, almost 50% below last
angharad.lock@oilfieldtechnology.com
year’s peak, is now either being scrapped or deferred until industry costs have come down sufficiently.”3
BP and Shell have both recently announced further, significant cost reductions. BP revealed that it Marketing
plans to drop Capex to below US$20 billion (almost US$5 billion lower than at its peak) and will continue Circulation Manager: Victoria McConnell
victoria.mcconnell@oilfieldtechnology.com
with its planned US$10 billion divestment programme. Shell’s CEO Ben van Beurden announced at the
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According to some analysts, these kinds of actions, along with asset divestments and contract jo.repton@oilfieldtechnology.com
renegotiations are exactly what the industry needs, even if they do make for a bitter pill to swallow. During Reprints:
the years of US$100/bbl oil, average productivity actually declined: For example, the average number of reprints@oilfieldtechnology.com

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cautious estimate of US$60/bbl as a baseline to be achieved in roughly two years.
Demand for oil and gas isn’t going to disappear any time soon, in fact the low price will likely
drive demand growth upwards. Changes are also afoot on the production side: the US EIA predicts
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US oil production to fall to 8.9 million bpd in 2016, marking the first decline in US output since 2008. Oilfield Technology subscription rates: Annual subscription
Per Magnus Nysveen, head of analysis at Rystad Energy, was quoted by CNN Money as saying, “This is very £80 UK including postage/£95/e135 overseas (postage airmail)/
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demand can happen earlier.”5 It’s now fairly universally agreed that the industry won’t be emerging from Subscription claims: Claims for non receipt of issues must be
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thought? Applicable only to USA & Canada: OILFIELD TECHNOLOGY
(ISSN No: 1757-2134, USPS No: 025-171) is published monthly
by Palladian Publications, GBR and is distributed in the USA
References by Asendia USA, 17B S Middlesex Ave, Monroe NJ 08831.
Periodicals postage paid New Brunswick, NJ and additional
1. http://www.wsj.com/articles/russian-oil-output-rises-to-post-soviet-high-in-september-1443777432
mailing offices.
2. http://www.forbes.com/sites/gauravsharma/2015/06/05/its-an-opec-recommendation-not-quota-says-secretary-general/ Postmaster: Send address changes to Oilfield Technology, 701C
3. Adams, C., ‘Oil Majors Ruthless On $60-A-Barrel Target’, Financial Times, 29 October, 2015. p. 21. Ashland Ave, Folcroft PA 19032.
4. Ibid.
5. http://money.cnn.com/2015/10/06/investing/us-oil-production-declines-gas-prices

November 2015 Oilfield Technology | 3

Sharpen your drilling
performance.

Improve torsional and lateral stability while drilling interbedded or directional intervals
with the Talon™ Force high-velocity PDC drill bits with Stabilis™ reinforced cutters.

The cutter’s innovative geometrical design increases its durability and nearly triples
the impact strength to deliver longer runs and higher ROP in challenging formations.

Visit BakerHughes.com/TalonForce to learn how you can take your drilling

performance to the next level.

© 2015 Baker Hughes Incorporated. All Rights Reserved. 43672 10/2015

World news November 2015

In brief
Statoil delays start date of US$7 billion field Angola
According to the Financial Times , Statoil has pushed back the start date for its Chevron has announced that its
largest project in the UK North Sea for more than a decade, instead affirming that its subsidiary, Chevron Overseas
US$7 billion Mariner field will not come online until the latter half of 2018. (Congo) Limited, has started oil and gas
In an accompanying statement, Statoil revealed that Mariner is just one of two production from the Lianzi Field, located
projects which is to have its start-up date delayed. The other was Aasta Hansteen, in a unitised offshore zone between the
situated just inside the Arctic Circle in Norwegian waters. The decision is a blow to Republic of Congo and the Republic of
hopes that recent UK tax cuts could prompt a swift revival in North Sea spending and Angola.
production. Positioned 65 miles (105 km) offshore
The region is among the hardest hit by the ongoing downturn in crude prices which in approximately 3000 ft (900 m) of water,
has forced the world’s biggest companies to reduce their expenditure. Lianzi is Chevron’s first operated asset
Royal Dutch Shell has announced that it would take a US$2 billion writedown after in the Republic of Congo and the first
cancelling its Carmon Creek oil sands project in Canada, while BP has pushed a final cross-border oil development project
investment decision on its Mad Dog 2 project in the Gulf of Mexico, to the middle of next offshore Central Africa. The project
year. is expected to produce an average of
Mariner, about 150 km east of the Shetland Islands, is the largest development on 40 000 bpd.
the UK continental shelf in more than a decade, with Statoil investing US$7 billion.
It is expected to produce more than 250 million bbls of oil during its 30-year lifespan, Norway
with peak production estimated at around 55 000 bpd.
Jacktel AS, a wholly owned subsidiary of
Master Marine A, located in Oslo, Norway,
Equatorial Guinea expands TWMA strengthens has been awarded a contract for the
major crude oil project Maersk Oil UK offering Haven jack-up accommodation rig for the
installation and commissioning period for
The Ministry of Mines, Industry and TWMA has been awarded two major the Johan Sverdrup Project Phase 1.
Energy, representing the Government of contracts, building on a strong relationship To ensure required capacity
Equatorial Guinea, announced that it has with Maersk Oil North Sea UK (Maersk Oil) for working on the Johan Sverdrup
signed a Memorandum of Understanding spanning more than a decade. field, Haven will undergo an upgrade
with three companies to build a crude The projects, which are led by an related to strength and length of
oil and petroleum products storage tank Aberdeen-based team, involve work on the legs, including provision of new
farm on Bioko Island, Equatorial Guinea. the Culzean development – one of the spud-cans/suction-caissons. The upgrade
In an expansion of the previous largest gas discoveries in recent years is expected to be performed at a yard in
project plan, the Bioko Oil Terminal will in the UKCS – and the continuation Norway.
incorporate a significant amount of crude of provision of innovative technology
oil storage space, as well as storage across Maersk Oil’s Central North Sea
for associated petroleum products. operations.
Papa New Guinea
It will serve the Gulf of Guinea region To ensure the company continues to Searcher Seismic has announced the
and facilitate processing and export to offer cost-effective and safe solutions Haere 2D Seismic Survey offshore PNG.
consumers regionally and globally. available to the global oil and gas The survey, in cooperation with the
The Ministry of Mines, Industry industry, multi-million pound equipment Department of Petroleum and Energy
and Energy of Equatorial Guinea, investments are being made. The new (DPE) and project partner BGP, comprises
Taleveras Group, Gunvor Group and the work will also result in the creation of up ~17 000 km of 2D long-offset, high
Strategic Fuel Fund will jointly participate to 20 new jobs. resolution, broadband seismic over the
in the Bioko Oil Terminal development. Neil Potter, Chief Operating Officer at Gulf of Papua.
The tank farm will be operated by the TWMA, said: “We are delighted to have The BGP Explorer has now mobilised
Strategic Fuel Fund, which operates been selected to support Maersk Oil for the project.
Saldanha Bay in South Africa, one of on these projects as they expand their The new survey brings Searcher’s
the world’s largest petroleum storage drilling activity within the UK sector of total data library in the Gulf of Papua to
facilities. the North Sea.” 58 000 km.

November 2015 Oilfield Technology | 5

 World news November 2015

Diary dates Energy majors collaborate Gassco extends

for North Sea efficiencies operationship
25 - 26 November, 2015 Petrofac, Faroe Petroleum and Eni Hewett Gassco is now operator of the new
Middle East Heavy Oil Congress have established a cost saving partnership Utisra High Gas Pipe (UHGP), which is to
Manama, Bahrain to drive efficiencies and commercial transport rich gas to Britain’s Scottish
E: mehoc@dmgeventsme.com synergies across their UK operations in the Sea Gas Evacuation (sage) system and
www.meheavyoil.com Southern North Sea. St Fergus in Scotland.
The tripartite agreement sees Running for 294 km, this pipeline
09 - 11 February, 2016 collaboration between Petrofac (Duty starts at the Edvard Greig field
Holder) and the respective equity owners approximately 57 km north of Sleipner in
IP Week and operators of the Hewett, Schooner the northern North Sea.
London, UK and Ketch gas fields to share logistics “We have collaborated closely and
E: ipweek@energyinst.org
and accommodation services across the well with development operator Statoil
www.energyinst.org/events/ip-week
facilities. Faroe Petroleum is operator and while readying the UHGP”, reports
60% equity holder in the Schooner and Kristin Kinn Kaste, vice president for the
24 - 26 February, 2016 Ketch fields, and Eni Hewett is operator transport network at Gassco.
AOG and 89% equity holder in the Hewett “The next milestone will be to
Perth, Australia complex. complete dewatering and start to fill with
E: aog@infosalons.com.au Deirdre Michie, Oil & Gas UK’s gas, and the line is expected to become
www.aogexpo.com.au Chief Executive, commented: “To build operational by the end of this year. This
on the work of individual companies means we’re now responsible for more
01 - 03 March, 2016 Oil & Gas UK has put in place the than 8300 km of gas pipelines.”
Efficiency Task Force to provide the Gassco became operator on
IADC/SPE
Fort Worth, USA catalyst for pan-industry improvement – in 1 November for the UHGP joint venture,
E: jpayne@spe.org processes, standardisation and behaviours and is also responsible for technical
www.spe.org/events/dc/2016 so that the UK oil and gas industry can management of the new facility.
continue to attract investment and support The UHGP rich gas line ties into the
hundreds of thousands of high skilled jobs existing Saga pipeline and has a technical
07 - 10 March, 2016
for decades to come.” capacity of 5 million m3 per day.
GEO 2016
Manama, Bahrain
E: aridgway@oesallworld.com Eni makes tough decisions: Reduces stake in Saipem
www.geo2016.com
According to the Financial Times, Eni has reached a deal to reduce its stake in Saipem, the
Web news pipeline and services company in a bid to wipe €5.1 billion of debt from its balance sheet
as it adjusts to the lower oil prices.
highlights The long anticipated deal – which entails the sale of a 12.5% stake in Saipem
to Italy’s sovereign wealth fund for €441 million – also chimes with efforts by
ÌÌEnergy majors to drive efficiencies in Claudio Descalzi, Chief Executive of Eni, to refocus the company on its upstream
business. In a statement, Mr Descalzi said the agreement marked a ‘significant step’ in
North Sea operations
the company’s transformation.
ÌÌSeatronics: new partnership with “The additional financial resources will be used to develop the very significant oil
LateraL AS and gas reserves we have discovered over the past few years and to strengthen our
ÌÌBP study sees technology boosting balance sheet in line with our targets”, he said.
energy supplies and providing path to Shares in Saipem increased by 9.5% in Milan, while Eni gained 0.7%.
lower carbon future One of the world’s largest oilfield services groups, Saipem has been hit hard by the
decline in the crude price.
The company slashed 9000 jobs this year as clients cancelled contracts. Separately,
To read more about these articles it has launched a new capital-raising effort through the sale of new shares worth
and for more event listings go to: €3.5 billion.
Eni has also been hard hit by the oil price dip, with its shares losing nearly 9% of
www.oilfieldtechnology.com their value over the past year. However, its prospects were boosted in August when it
announced the discovery of a giant gas field off the coast of Egypt, the largest yet found
in the Mediterranean Sea.

6 | Oilfield Technology November 2015

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 World news November 2015

Global oil reserves likely to double by 2050, says BP Strong gas shows for
Warro-6, Western Australia
According to Reuters, the world will not be at risk of running out of oil or gas for decades
ahead. Oil major BP predicts that existing technology is capable of unlocking so much Transerv has announced that Warro-6
that global reserves will almost double by 2050 despite growing consumption. commenced drilling in the 8 in. hole on
“When taking into account all accessible forms of energy including nuclear, wind and 30 October and is currently drilling ahead
solar, there are enough resources to meet 20 times what the world will need over that at 4387 m RT.
period” said David Eyton, BP Group Head of Technology. The progress of Warro-6 has been
“Energy resources are plentiful. Concerns over running out of oil and gas have marked by strong gas shows in a number
disappeared,” Eyton said at the launch of BP’s inaugural Technology Outlook. of sandstone units below 4147 m RT
Oil and gas companies have invested heavily in squeezing the maximum from existing and continues to experience significant,
reservoirs by using chemicals, super computers and robotics. The halving of oil prices since elevated gas readings in the sands to its
last June has further dampened their appetite to explore for new resources, with more than present depth (4387 m) which is 70 m
US$200 billion worth of mega projects scrapped in recent months. below the lowest known gas in previous
By applying these technologies, global proven fossil fuel resources could increase Warro wells.
Once Warro-6 as reached total
from 2.9 trillion (boe) to 4.8 trillion boe by 2050, nearly double the projected
depth and the electric logs have been
2.5 trillion boe required to meet global demand until 2050, BP said.
interpreted a full report on the well
“With new exploration and technology, the resources could leap to a staggering results will be provided by the company.
7.5 trillion boe”, Eyton said. Warro-6 is being drilled vertically to
“We are probably nearing the point where potential from additional recovery from a planned total depth of approximately
discovered reservoir exceeds the potential for exploration.” 4500 m RT. The well is located 2.7 km to
Governments are expected to agree on a framework to limit global warming by the north of Warro-5 and 1.7 km WSW
limiting carbon emissions at the United Nation’s climate summit in Paris starting this of Warro 3 and 4. Warro-6 is located in a
month. European oil companies have urged policy makers to introduce a global price on flank position on the western side of the
carbon that will favour the use of cleaner natural gas at the expense of coal. field.

Farstad Shipping contract
for new vessel
Farstad Shipping ASA has been awarded
a three year contract with further
up to three years operations for CSV
Far Sentinel (2015, VARD 3 07, 9.200 DWT)
by Subtec S.A. de C.V. for delivery of light
construction work, IMR and other subsea
related activities in the Gulf of Mexico.
“This is an important and significant
contract for Farstad Shipping. It proves
that even in a very challenging market,
we are able to conclude long-term
contracts for our vessels. This contract
secures valuable competence and
activity for our employees”, said CEO
Karl-Johan Bakken.
“By this, we have now signed
important contracts for both of our
subsea new buildings delivered in 2015.
We hereby confirm Farstad Shipping’s
strong position into the subsea market,
which is vital for us in the time ahead”,
said Bakken.
The contract is scheduled to begin
during December 2015.
Blink exploration well in
the Norwegian North Sea
Faroe Petroleum has announced the
results of the Blink exploration well in the
Norwegian Sea (Faroe 25%).
The 6406/12-5 S (Blink) well was drilled
on the Halten Terrace, approximately
27 km south west of the Njord field and
five km north east of the Pil discovery well.
Well 6406/12-5 S followed on directly from
the Boomerang exploration well which
encountered a 26 m gross Upper Jurassic
intra-Spekk/Rogn sandstone containing
estimated recoverable resources of
between 13 and 31 million boe.
Graham Stewart, Chief Executive of
Faroe Petroleum commented: “Whilst the
results of the Blink well are disappointing
we look forward to advancing the options
for monetising the significant combined
Pil, Bue and Boomerang discoveries, on
which the Blink well result has no bearing.
The company continues to perform very
well despite continuing low oil prices, with
low operating costs, a good cash position
and strong production rates.”
Statoil exploration bid for
offshore Mozambique
Statoil has submitted a winning bid on the
A5-A block offshore Mozambique in the
fifth competitive bidding round.
The successful bid will grant the
company an exploration license for
offshore Mozambique.
The A5-A block is located in the
Northern Zambesi basin in the Angoche
area about 1500 km2 north of the capital
Maputo. The block covers an area of
5145 km2 in water depths ranging from
200 to 1800 m.
Eni is the operator of the joint venture
with 34% participating interest. Partners
are Statoil and Sasol with 25.5% each
and ENH with 15%. The minimum work
programme includes seismic and three
commitment wells.
“The Angoche area is a very promising
frontier basin with significant oil potential
and builds on Statoil’s exploration strategy
of access at scale”, says Nick Maden, senior
vice president for Statoil’s exploration
activities in the Western Hemisphere.

8 | Oilfield Technology November 2015

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What’s new in
West Africa?
David Bizley, Oilfield Technology, takes a look
at the challenges and opportunities facing the
oil and gas industry in West Africa.

10 |
T
he impact of low oil prices has been felt by producers
across the globe; no region, no matter how dynamic, has
completely avoided the impact of the downturn. The
squeeze has been felt in Houston, with redundancies and lay-offs
becoming an unpleasant reality for many oilfield veterans;
Sheikh Sabah al-Ahmed al-Sabah, Emir of Kuwait, has urged his
government to adopt urgent reform measures and cut national
spending in the wake of a 60% drop in income.1 Even Saudi Arabia
is rumoured to be setting up a special department to manage
spending cuts.2
Oil producers in Africa have also felt the impact of reduced O&G
spending with national governments cutting back on costs and
IOCs reining in Capex and Opex. Despite this, there is still reason for
optimism; Infield Systems Ltd, for example, has predicted that Africa
will account for 20% of all offshore oil and gas Capex over the next five
years. With West Africa positioned as the key offshore region on the
continent, the future of the industry here looks comparatively bright.

West African O&G at a glance

The West African O&G industry is far from immune to market turmoil
and has felt the impact of the downturn just like anywhere else, with
many operating companies (both indigenous and international)
posting shrinking profits and even outright losses. Two such
examples are African Petroleum, which operates across five countries
in West Africa and posted a net loss of just over US$8 million for
H1 2015, and Oando Energy Resources, which focuses mostly
on on- and offshore Nigeria, and posted a net loss of more than
US$50 million for the same period.
However, despite these losses the region continues to show
promise; the rig count drop experienced earlier this year was lower
than that experienced in other regions and, despite taking something
of a hit, exploration activity is still ongoing.3
Indeed, a series of recent discoveries has fuelled industry
optimism: Total and Foxtrot International both made finds offshore
Côte d’Ivoire; Hess Corporation struck hydrocarbons offshore
Ghana; Kosmos Energy encountered 117 m of net hydrocarbon
pay with the Tortue-1 well offshore Mauritania; and Cairn Energy’s
SNE-1 discovery offshore Senegal was one of 2014’s largest. With
this spate of discoveries in mind, it is perhaps unsurprising to note
that the West Africa Transform Margin (WATM) currently boasts an
enthusiasm-bolstering 65% exploration success rate.4

Problems with piracy

As well as opportunities, however, West Africa also faces plenty of
challenges, many of which have little to do with lower oil prices.
Piracy, oil theft and institutional corruption are ongoing hazards and
pose significant concerns for IOCs hoping to invest in the region.
Of these challenges, piracy is perhaps the most alarming; the
Gulf of Guinea saw more than 100 attempted vessel hijackings in 2013
alone. Reports have also shown that over recent years the violence of
pirate attacks in the Gulf of Guinea has increased, with crewmembers
being kidnapped, tortured, and shot. As of 2013, rates of kidnapping
for ransom were also on the rise.5
Making the problem of piracy particularly intractable is the trend
for hijacking attempts to occur well within territorial waters and close

| 11
to terminals and harbours rather than on the high-seas; this limits the
ability of international military forces to intervene. As a consequence,
operators are left relying on local naval and coastguard forces, which
in turn are often prohibited from entering the territory of neighbouring
nations, thus hindering their ability to pursue pirates and hijackers.6
Local laws also complicate the matter of providing vessels with
adequate security; international maritime security firms are banned
from carrying firearms in many of the region’s territorial waters,
limiting their efficacy. When armed guards are available, they can
often only be sourced from local government forces, which have been
cited as having generally poor professional standards.
Focus: Nigeria
Nigeria, which has access to 37 billion bbls of proven crude oil
reserves and over 5 trillion m3 of natural gas, is Africa’s largest
hydrocarbon producer and one of the continent’s economic
powerhouses. However, some long-term forecasts are predicting a
gradual drop in output as a consequence of underinvestment.7
As the scope of the current downturn in oil prices became clear,
NNPC (Nigeria’s state oil company) slashed its budget for joint
venture operations by 40% to US$8.1 billion. This is expected to
have a knock-on effect to the country’s oil output as joint ventures
between various IOCs and NNPC account for roughly half of all
production. Some reports have calculated that, as a result of this
cut in expenditure, various projects amounting to the equivalent of
an additional 750 000 bpd will never get off the ground.8
However, investment in the Nigerian oil sector from IOCs had
been in a state of decline for several years before NNPC’s cuts, with
recently developed fields failing to sustain output and exploratory
drilling declining. Some companies, such as Shell and Chevron,
have even begun to divest their assets, whilst ConocoPhillips
has left the country altogether after selling its upstream assets to
Oando Energy Resources.
Exactly why IOCs are losing enthusiasm for Nigeria is down
to a variety of factors, but perhaps the most obvious reasons are
security related. To quote Shell on the matter, “The Niger Delta is
one of the most challenging locations in which Shell companies do
business. Crude oil theft, sabotage and illegal refining have become
increasingly serious problems, with long-term social, economic and
environmental impacts.”9 Some reports have calculated that as much
as 100 000 bbls of oil are stolen each day, often taken directly from
pipelines via a dangerous process known as bunkering. There are
even reports that senior politicians and military officers are involved
in the industrial-scale theft, which generally sees stolen oil shipped
out to tankers waiting offshore and sold to international markets.
As mentioned earlier, piracy and kidnapping are also significant
concerns for companies operating on and offshore Nigeria.
Gerry Northwood, COO of maritime security firm MAST, was quoted as
saying: “While the Nigerian Government and Nigerian Navy should be
commended for the effort recently made to try and eradicate product
theft, [...] kidnap and ransom of personnel is likely to remain a threat
for the foreseeable future.”
The threat posed by Boko Haram, an Islamist militant group
operating largely in the northeast of the country, also remains an
ongoing security concern despite recent advances made against the
group by Nigerian security forces with US assistance.
Despite these challenges, one can perhaps be hopeful that
Nigeria has turned a corner with the election of its new President,
Muhammadu Buhari. Buhari has vowed to clean up the industry,
combat oil theft, and eradicate Boko Haram. Solving these issues,
will be key to restoring IOC confidence and enthusiasm when it
comes to investing in Nigeria.
12 | Oilfield Technology November 2015
Focus: Ghana
Ghana is believed to hold between 5 and 7 billion bbls of crude oil
and up to 6 trillion ft3 of natural gas, giving it some of Africa’s largest
proven reserves. The country’s oil industry has grown significantly
over the last decade, especially since Tullow Oil’s discovery of the
major Jubilee field, and has attracted a number of major operators
including Kosmos Energy, ENI, and Hess Corporation.
Ghana appears to hold significant future prospects for oil and
gas operations and the government is keen to encourage growth in
this sector; “Recent discoveries are that the country’s oil and gas
resources stretch across the country’s shoreline from Cape Three
points in the West to Keta in the East. The Volta Basin as well is also
believed to hold oil and gas reserves. Government through GNPC
[Ghana National Petroleum Corporation] is seeking to fully maximise
Ghana’s prospects in the oil industry. It has recently sought to extend
the country’s continental shelf to increase the country’s oil and gas
scope.”10
Earlier this year, Ghana received US$700 million in guarantees
from the World Bank for its new Sankofa gas project, which is
expected to attract just under US$8 billion in investment. The
Sankofa project, located 60 km offshore, holds approximately
1.5 trillion ft3 of gas and 500 million bbls of oil and is expected to
provide 80 000 boe/d by 2019.
Concerns had been raised after the neighbouring nation of
Côte d’Ivoire asked the International Tribunal for the Law of the Sea
to settle a maritime border dispute with Ghana; this could have had
grave implications for the future of Tullow Oil’s US$4.9 billion TEN
project, which lies in the disputed territory. Fortunately for Ghana
and Tullow, the Tribunal ruled that development of the TEN project
could continue on the proviso that no further drilling be carried out.
However, this was a temporary settlement and the Tribunal has not
yet come to a decision over the merits of the case. A final decision
is expected in 2017, with analysts predicting a ruling in Ghana’s
favour.11
The future of Ghana’s oil and gas industry looks comparatively
bright, though like elsewhere, it too will have to endure the
challenges posed by the current low oil price.
Summary
West Africa remains a challenging region for oil and gas companies,
despite long-term industry activity. Problems such as piracy,
kidnappings and corruption pose significant security risks for
operators. However, for those willing to make the investment and
take adequate precautions, the lower operating costs and significant
untapped potential of West Africa make it an attractive opportunity.
As a consequence, the region is likely to see continued growth over
the coming years.
References
1. http://www.reuters.com/article/2015/10/27/kuwait-economy-emir-
idUSL8N12R30S20151027
2. http://www.bloomberg.com/news/articles/2015-11-02/saudi-arabia-said-to-
create-special-office-to-help-cut-spending
3. http://energy.globaldata.com/resources/expert-insights/oil-and-gas/exploration-
activity-in-africa-undeterred-by-slump-in-oil-price
4. http://energy.globaldata.com/resources/expert-insights/oil-and-gas/
interest-remains-across-frontier-of-west-africa-as-exploration-transitions-to-
development
5. http://www.skuld.com/topics/voyage--port-risks/piracy/overall/piracy---gulf-of-
guinea/general-information
6. Ibid.
7. http://energy.globaldata.com/resources/expert-insights/oil-and-gas/reversal-of-
fortune-in-nigerias-oil-sector-challenged
8. Ibid.
9. http://www.shell.com/global/environment-society/society/nigeria.html
10. http://www.pwc.com/gh/en/industries/energy-utilities-mining.html
11. http://www.reuters.com/article/2015/04/25/us-ghana-ivorycoast-oil-
idUSKBN0NG0IX20150425
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SEARCHING WITH
SATELLITES
Michael Hall, Airbus Defence & Space, discusses how the
latest satellite technology and derived products and services are
being applied to increase exploration efficiency and reduce risk.

14 |
A
round the world, decades of successful oil and gas
exploration has left geologists and seismic engineers with
an increasingly difficult task – to discover and evaluate
well-hidden geological features that have the potential to hold
recoverable hydrocarbon resources.
This article discusses how the latest satellite technology
and derived products and services are being applied to increase
efficiency and reduce risk. These specialist data sets, are being
continually developed, evaluated and combined with other tools to
help the industry identify new opportunities where oil and gas can
be extracted safely and cost-effectively.

Licenced to search
When a country announces an oil and gas exploration licencing
round, suitable baseline information, such as geological data,
infrastructure or terrain information may not be available.
Increasingly, explorers are using fast developing satellite technology
to support operational activities. Traditional earth science
disciplines used by upstream companies, including geology,
geophysics and geochemical sampling, are being augmented with
earth orbiting satellites, which support geological interpretation,
seismic planning, engineering applications, offshore oil seep
detection and asset monitoring for any location in the world.

| 15

Figure 1. WorldDEM™ Wilpena Pound, Australia.
(Copyright DLR e.V. DLR e.V 2014 and Airbus DS Geo GmbH 2014).
Figure 2. TerraSAR-X Acquisition- Gulf of Mexico, US, acquired
October 2010. Darker areas indicate possible oil on the sea surface.
(Copyright DLR e.V. 2010, Distribution Airbus DS Geo GmbH).
16 | Oilfield Technology November 2015
The increased appetite for exploring less accessible locations
means oil and gas explorers are also turning their attention to
a host of previously undeveloped frontier areas. From offshore
Croatia, the Irish Atlantic and Canada’s East Coast through to the
Torres Basin and Southeast Asia, governments around the world
are looking to promote their territories to attract investment.
Advances in satellite technology and image analysis are
supporting this shift through the development of radar and
optical sensors with resolutions of less than 1 m and the
capability of frequent revisit rates. In addition, the latest
generation of satellites are equipped with sensors capable of
obtaining the data required for producing three dimensional
models of the ground’s surface, known as ‘digital elevation
models’ (DEM). Searching for oil and gas reserves onshore and
offshore is greatly enhanced by the use of this satellite data.
Onshore, structure and stratigraphy of the surface geology can
be assessed using optical and radar imagery, while assessing
offshore potential, radar sensors can be used to identify natural
oil seeps by identifying slicks on waterbodies, be it on oceans
or lakes.
Onshore search
Having an up-to-date satellite based overview of an area of
interest provides a wealth of information on the distribution
and extent of human activity in the region. This land cover
information can be fed into the planning process to minimise
disruption to local communities. Environmental and safety
concerns can be also mitigated by identifying environmentally
sensitive locations and existing access routes that can then
be used to support logistical operations and ground survey
planning.
Using satellite imagery for onshore geological mapping is
an established technique used across the sector, particularly
for remote, inhospitable areas. Initial data collection includes
understanding structural issues such as bedding dip and
orientation, fault identification and classification, which
together with spectral and textural information allows the
assessment of surface stratigraphy.
Follow up work often involves gathering higher resolution
data over specific areas from satellite constellations, including
optical satellites such as SPOT6 (1.5 m resolution) and Pléiades
(0.5 m resolution).
Understanding the Earth’s surface
When analysing terrain features for geological interpretation or
seismic planning, accurate terrain height information such as
digital elevation models (DEM) and 3D representations of the
target landscape are critical.
DEM are created using advanced processing of satellite
imagery. There are two distinct types of elevation models:
digital terrain models (DTM) and digital surface models (DSM).
A DSM is an elevation model which contains objects on the
ground’s surface, whereas a DTM typically has been edited to
remove objects such as vegetation and infrastructure – leaving
it clear for pipeline companies to accurately plan routes.
Satellite imagery and interpretation suppliers offer a
range of DEM products, based on a client’s detail and accuracy
requirements, which are either proprietary or available
‘off-the-shelf’. Airbus Defence and Space’ ‘WorldDEM™’ is one
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 of these datasets. WorldDEM is an edited DSM with hydrological
consistency including the flattening of water bodies, consistent
flow of rivers and editing of shorelines. A distinguishing feature
of this dataset is its standardised, orthorectified pole-to-pole
coverage of the earth’s surface.
Using elevation data assists hydrocarbon explorers to
develop an understanding of the surface characteristics of
an area contributing to informed decisions on whether to bid
for specific licence blocks. When opportunities are identified,
companies can use this data to prioritise which areas should
be the focus of its exploration efforts and where further data
gathering from geologists and seismic teams is required.
Looking at high resolution elevation models,
the Elevation1 DEM (with a 1 m posting), is among the most
accurate satellite-based elevation models currently available.
Elevation1 is aimed at providing high-resolution elevation
information, where accuracy and resolution is critical such as
in engineering projects focused on facility or detailed pipeline
planning.
Using satellite imagery, near-shore bathymetric information
can be obtained in water depths up to around 30 m in areas
with clear water. This bathymetric information can be used
for a range of applications in the coastal transition zone,
an environment which is often lacking suitable water depth
information. Application areas include the assessment of an
area or block identified as a possible exploration target in
shallow waters, or where pipelines and other infrastructure are
being planned, for example offshore in West Africa. In addition,
near-shore bathymetric mapping offers a fast, cost-effective
way of gathering data for use in future surveys or to optimise
grid alignment for seismic studies, as well as to risk-rank ‘go’ or
‘no-go’ areas prior to expensive seismic acquisition.
Offshore hydrocarbon potential
Geologists seeking indicators of a deeply buried working
petroleum system within a basin often look for evidence of
surface oil slicks. Radar satellite imagery is an established
method for identifying these offshore surface oil slicks, with
the technology based on the dampening effect oil has on the
sea surface wave amplitude, which directly influences the
backscatter returned to the satellite radar sensor. In effect, the
influence the oil is having on wave conditions is being assessed,
rather than direct observation of the oil itself.
By collating information on oil, geographic information
system (GIS) databases have been developed, which
include slick source points, slick vectors, and confidence
levels. Airbus Defence and Space’s Global Seeps product is
a non-exclusive database of offshore potential oil seepage
slicks, constructed from over 19 000 satellite scenes and
60 million km2 of data. It holds more than 22 000 potential
identified and interpreted slicks. Each slick is characterised and
ranked according to the probability of it being sourced from
natural seepage or man-made pollution. The interpretation
process is undertaken manually by an experienced team of
analysts. Ultimately, this valuable seep data is then integrated
and compared to other geological or geophysical data such
as seismic to assist in developing an understanding of the
hydrocarbon system of a region and potential target areas and
therefore allowing more informed decisions.
18 | Oilfield Technology November 2015
Image analysis and archives
Satellite imaging companies are continuously adding images
to their archives to ensure the data they are providing is as
up-to-date as possible. In order to extract the maximum value
from this satellite imagery, satellite operators typically have
teams of in-house specialists able to process and analyse
the imagery to further support oil and gas exploration and
production companies together with related service companies.
Associated application areas include:
ÌÌ Environmental studies: Baseline assessment of
environmental conditions including previous exploration
activities and pollution before a new exploration project
starts.
ÌÌ Geological assessment: Interpretation of structural features
and stratigraphy for optimising seismic and fieldwork
planning.
ÌÌ Infrastructure and land-cover interpretation: Mapping of
access roads, other infrastructure and land-cover types.
ÌÌ Security and monitoring: Archive data gives a snapshot
of the situation on the ground at any given time, this can
be reviewed alongside images obtained at a later date to
identify change or to continually monitor assets remotely.
Prospecting offshore Canada
When Canada-based energy corporation Nalcor started
prospecting off Newfoundland and Labrador, as well as areas
off Greenland’s southwest coast, the company used the Global
Seeps database, augmented with seismic data, to better
understand future exploration potential across a vast, largely
unexplored area.
The collected data helped in the targeted seismic acquisition
process and improved chances of finding hydrocarbons and
evidence of active petroleum systems.
Nalcor’s oil and gas division is a partner in three offshore
developments in the region – the Hebron oilfield, the White Rose
Growth Project and the Hibernia Southern Extension.
A wide range of satellite data was weather-screened to
ensure its suitability for oil slick mapping during the Nalcor
project. Suitable satellite scenes were analysed by technical
image analysts, to identify oil seeps and slicks. Each slick was
characterised and ranked according to the probability of it
being sourced from natural seepage or man-made pollution.
Distinguishing between slick and pollution enhanced Nalcor’s
understanding of the region, allowing the company to
demonstrate there is a positive correlation between some slick
locations and subsurface hydrocarbon migration.
Essential tool
Satellite imaging is now an integral part of a hydrocarbon
explorer’s toolbox, offering consistent interpretation of surface
geology and terrain characteristics onshore, together with giving
an insight into the presence of working hydrocarbon systems
offshore. Combining such imagery and derived information
with other supporting geoscience datasets such as 2D or 3D
seismic data is providing improved efficiency in the exploration
workflow, assisting in the discovery of oil and gas resources in
remote and often hard to access locations. The application of
satellite produced data and intelligence is only set to increase,
with the current price of oil driving efficiency and the need for
effective risk-ranking of exploration opportunities.
Julie Willmore, Brad Torry, Henrik Roende,
Chris Egger and Adriana Thames, TGS,
USA, examine a data driven solution designed
to improve imaging of current and future
reserves in the Mississippi Canyon.

ILLUMINATING
RESERVES
W
ith considerable seismic coverage in the Gulf of Mexico progressing from
narrow azimuth (NAZ) to wide azimuth (WAZ) to multi wide azimuth
(MWAZ)/full azimuth (FAZ); what comes next? In the world of low commodity
prices and the desire of E&P companies to improve return on investment (ROI), how
can companies get more from their seismic data? The simple answer is acquiring the
right data to meet the objectives. Historically new marine seismic has been acquired in
accordance with the current technology available (a.k.a. technology driven solutions).
In today’s information era with access to hardware and software for modelling, the
value of ‘data driven solutions’ has become reality. Utilising salt models driven by
existing seismic data optimisation of acquisition parameters is conducted through the
application of full waveform modelling. An illumination study was conducted using 3D
ray based modelling (NORSAR™) with unrestricted offsets and azimuths and 2D finite
difference modelling of various cable lengths to optimise new acquisition.

| 19
 With increased focus on sub salt prospectivity, the
need to provide greater certainty to field/reservoir size and
requirements for derisking long term investment, the request
of geoscience teams is to advance these understandings. Due to
complex ray paths associated with salt provinces the advantages
of multi azimuth recording have been well documented. So why
then is it impossible to image certain salt flanks and subsalt
regions? The answer: the necessary data has not been acquired.
The basis for this study was the complex Kepler salt and
prolific hydrocarbon resources of the Mississippi Canyon region
(Figure 1) where the overall salt interpretation is regarded as
very good. The Mississippi Canyon is an area with existing NAZ,
WAZ and MWAZ seismic data which produced a reliable velocity
model. This model (Figure 2) provided the data driven input to
this study.
The existing data represents a traditional orthogonal WAZ
survey in a 7 km offset configuration. Using this as the starting
velocity model the study focused on illuminating a flat and
regionally dipping surface below the salt. Justification for the
two planar sub salt surfaces was to show the differences and
implications that sub salt structure will have on the ability to
image these surfaces.
Analysis of the hit target counts, rose diagrams, illumination
surface maps, finite difference amplitude and other observations
from the modelling leads to increased understanding of modern
day requirements for seismic acquisition.
On the basis of the illumination study new vessel
configurations were evaluated to acquire data with offsets to
16 km. Initial results from the acquisition are providing validity
to the modelling observations and points to the importance
of data driven solutions to meet the expectations of today’s
geoscientists.
The study area
To validate observations a 20 block area surrounding the Kepler
salt complex in Mississippi Canyon was the basis for this study.
Figure 1. Study area shown in orange.
20 | Oilfield Technology November 2015
This area was chosen as the current orthogonal WAZ projects,
Justice and Kepler, provide a solid baseline salt model from
which modelling is built. Figure 1 shows the general study area
outline and Figure 2 the starting velocity model for analysis.
With primary objectives for the study to illuminate salt
flanks, under salt canopy and subsalt the initiative was
focused on understanding ray paths to critical target horizons.
Without strong confidence in the illumination targets, derisking
exploration targets is at risk. With this assessment it was
determined to establish two primary targets for analysis. To
capture salt flanks/canopy of complex salt structures the first
target horizon was established at 4500 m depth (Figure 2).
For the second target, the deeper turbidite sands beneath the
Louann salt was interpreted at 10 000 m depth. Given the lack
of strong coherent sub salt reflectivity the subsalt horizon
was modelled as both a flat reflector and a dipping reflector
(Figure 2). Analysis of both resultant products would determine
any sensitivity on the sub salt reflectors.
Illumination methodology
To understand the complexity of limited ray paths impacted by
the salt-sediment boundaries the model was run with unlimited
offsets and azimuths – a data driven solution. The only limit
was to restrict the maximum take-off angle to 60˚, thus all post
critical angles (refractions) were not included. With numerous
options to visualise and understand the results, the primary
tool presented here is looking at the subsurface coverage on
the target horizon using rose diagrams. The rose diagrams are
created by simulating all source-receiver combinations from
ray paths landed on the surface (essentially providing the
number of times the particular sub-surface point is sampled
and from which directions and offsets the rays have travelled).
Rose diagrams are then computed for each sub surface point
(based on the defined subsurface sample interval (25 m). The
results show the ‘illumination distribution’ as a function of
shot-receiver azimuth (0 - 360˚) and shot-receiver offset (km).
Observations –
sediment/salt surface
Figure 3 shows a sampling
of the rose diagrams
along the salt-sediment
boundary. In reviewing
the rose diagrams it
becomes clear that there
exists a bias towards
certain azimuths based
on the location of the
measurement relative
to salt configuration.
This bias will exist in all
areas but will be variable
depending on the shape
and distribution of the
salt. Primary observations
are the importance of
capturing data from all
azimuths (hence the value
of MWAZ data). When
reviewing offsets however
the story becomes a
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little different. Under the salt overhangs and on the steeply
dipping flanks, limited ray paths out to 20 km are observed (the
majority exist below 8 km) contributing to the illumination.
Moving away from the salt flanks and into the sediment
(Figure 4), the azimuthal bias plays a very limited role in
improving the illumination (why NAZ data was historically
successful in the early days of exploration in the GoM).
Additionally the conclusion from analysis of the results suggests
for target horizons along the top of salt and in the sediment
section can be successfully achieved with maximum offsets
to 8 km.
Observations - presalt surfaces
Rose diagrams for the presalt surfaces tell a different story.
Figure 5 shows a series of rose diagrams and illumination of
the presalt surface (scenario 2 dipping horizon). This shows
that although azimuth is still important, offset becomes the
key factor in illuminating the subsalt surfaces. In this modelling
the subsalt events were interpreted as a planar and a dipping
surface to assess the difference in observations and represent
what is known will be a rugose subsalt surface. The results of
the comparison are key to subsalt imaging. As expected, the
Figure 2. Inputs to the illumination study; velocity model, salt bodies
and target horizons.
Figure 3. Rose diagrams from salt flank section of salt horizon.
22 | Oilfield Technology November 2015
dipping horizon showed a preference for a NE-SW acquisition
(based on the dip of the surface). The more staggering
observation clearly illustrated by the rose diagrams is the
amount of data contributing to the illumination beyond 12 km
offsets.
3D wavefield reconstruction
To validate these observations, specific acquisition geometries
were tested. The geometries were chosen based on historical
WAZ acquisition parameters for the GoM with additional offsets
(as identified above) to demonstrate their value.
The specific geometries tests were:
ÌÌ 4 x 8 km shooting direction of 135˚ – subsalt horizons only.
ÌÌ 4 x 9 km shooting direction of 45˚.
ÌÌ 6 x 9 km shooting direction of 45˚.
ÌÌ 4 x 12 km shooting direction of 45˚.
ÌÌ 4 x 16 km shooting direction of 45˚.
Figure 4. Rose diagram from within sediment section of salt horizon.
Figure 5. Rose diagrams from dipping presalt horizon.
Figure 6. (A) Illumination maps for Figure 7. Illumination maps for the smooth
the sed/salt horizon: (A) 4 x 9 km pre-salt horizon: (A) 4 x 9 km (B) 4 x 16 km.
(B) 4 x 16 km.
The results of this step are shown
via illumination hit maps (Figures 6 - 8).
As the benefits of MWAZ acquisition
are well documented the primary
purpose of this step was to show the
uplift of long offsets. Figure 6 shows a
comparison between 4 x 9 km (A) and
4 x 16 km (B) acquisition. The results
confirmed the previous observation that
the offset beyond 8 km does not make
a significant contribution in imaging
the sediment section nor the salt flanks
Figure 9. 2D finite modelling.
(although the overall number of hits
increased). This will vary with the salt
configuration but a reasonable conclusion is that offset is more
critical in areas of salt diapirism.
A different story is clear when we look at the subsalt
illumination. Figures 7 and 8 show the illumination hit counts
for the 4 x 9 and 4 x 16 km geometries for both the smooth and
dipping deep horizon. The 4 x 9 km geometries for both horizons
show poor illumination under the salt body. Now look to the
dipping surface and it becomes clear that a material step change
occurs between the 9 km and 16 km configuration. Considering
that in reality it is known that this surface will not be completely
smooth, the importance of long-offset data becomes critical to
illuminating subsalt plays.
2D finite modelling
As validation for the above observations, additional finite
difference modelling was conducted to assess the potential
uplift from longer offsets. Using the existing PSDM volume
and the associated velocity model (a data driven solution) a
reflectivity model was created. Using this model, shot gathers
were forward modelled with offsets to 20 km. These shot gathers
were migrated using maximum offsets of 8 km, 12 km, 16 km
and 20 km respectively and stacked with the same velocity
model. The results (Figure 9), confirm the waveform modelling.
Increasing the offset makes a limited difference in the sediment
Figure 8. Illumination maps for the dipping
pre-salt horizon: (A) 4 x 9 km (B) 4 x 16 km .
and salt flanks but makes a material difference in the subsalt
illumination. The presalt horizon under the salt flank is
visible with 8 km image but the material gain with offset to
12 or 16 km is confirmed. In this specific case, the difference
in the images between 16 km and 20 km is not material and
would probably not justify the additional acquisition expense.
Conclusions
Historical NAZ, WAZ and MWAZ data in the Gulf of Mexico has
served its purpose well in illuminating sediment sections
and salt flanks in areas of diapirism. As the industry moves
to new deeper exploration and more complex salt overhangs,
data driven solutions reveal that azimuth alone doe not
provide the optimal solution. In the Kepler area it has been
demonstrated for subsalt exploration the true value exists
in acquiring long-offset data. It is critical in each scenario to
assess the length of offsets required (hence the importance of
data-driven solutions). In this study it can be concluded that
the largest material uplift is in offsets from 8 - 16 km.
As a result of this case study new data has been acquired
to validate these findings. Early results show validation
of the modelling and should lead to materially improved
subsalt imaging and greater understanding of subsalt
paleo topography and the controls on exploration targets.
November 2015 Oilfield Technology | 23
CHALLENGES OF THE

24 |
 Joe Killen and William Wills, Avalon Sciences, discuss the
requirements and delivery of seismic monitoring within extreme
high pressure and temperature borehole environments.

F
or the last few decades, borehole seismic arrays have
been used regularly by service companies to acquire high
resolution seismic data across the globe. The associated
technology is developing rapidly as boundaries are pushed and
new plays become viable. However, in order for borehole seismic
methods to continue to be fully established as an added value
option, certain key technological challenges need be identified
and overcome.
Borehole seismic recording traditionally involves placing
geophone receivers within wellbores via a wireline (Figure 1).
The advantages of such operations are well understood within
the upstream industry. At its most basic, a single downhole
tool can provide checkshot time to depth correlation, where
straightforward analysis of the direct downgoing P-wavefield
arrival can allow a much improved calibration of velocity model
information for surface seismic datasets. Seismic velocity models
can even be augmented further by deploying a downhole source
within a neighbouring well. This cross well geometry can correct
for errors derived from sonic logs recording in layers featuring
significant vertical transverse isotropy (VTI). 1
Applications of borehole seismic have gone well beyond
that of velocity calibration, vertical seismic profiling (VSP)
is an established technique for higher resolution imaging
and mapping of subsurface layers. In comparison to surface
methods, the shorter travel paths of the upgoing wavefield to the
downhole receivers from a reflected horizon results in less signal
attenuation whilst providing higher frequency information, thus
giving a much more enhanced vertical resolution.2 The lower
noise environment downhole compared to a surface production
zone also augments signal-to-noise ratio and picking accuracy.
Further analysis of up waves reflected from impedance contrasts
located below TD will also give some information for predicting
proximal horizons ahead of the bit.
There are a range of methods for acquiring this data,
depending on survey geometries and required information.
Offsetting the source in various locations from the rig ‘walkaway’
will provide an increased aperture and penetration into the
formation, whilst shot points located vertically incident to the
well ‘walk above’ will facilitate very high resolution upwave
reflections of formations located just below the deviated well
azimuth. More intricate surveys with spiralling source positions
away ‘walk around’ from the well head and rerecorded over
several months can add significant value to an exploration target
through delivering 3D and event time-lapse (4D) seismic plots
with much analysis dependant on the horizontal components
HXHY of the downhole 3-C sensor pack.

| 25

Figure 1. Downhole geophones with locking arm to couple to
formations/casing.
Figure 2. Schematic of a thermoelectical cooler (TEC).
Figure 3. Schematic showing the thermal pathway and temperature
management system of downhole electronics.
26 | Oilfield Technology November 2015
In contrast to VSP surveys, microseismic monitoring involves
passive monitoring of relatively low magnitude (Mw <2) events,
often those generated during the process of hydraulic fracturing
of high porosity, low permeability plays such as shales and tight
sands, using water/sand/chemical proppant under extreme
pressure in order to allow a pathway for gas extraction. Accurate
time picking and velocity modelling is required in order to locate
the microseismic hypocentres. The use of three component
downhole sensors have advantages over surface seismic
monitoring in terms of noise reduction, immunity to distortion of
unconsolidated weathering layers, as well as depth correlation.
This all allows for a reduced uncertainty in both the location
and nature of the frack event foci and so improved estimation of
stimulated reservoir volume (SRV). Despite all these advantages,
new exploration frontiers are meaning the demands placed on
downhole seismic equipment are ever increasing.
The demand: pressure, temperature, sensitivity
With the current stagnation in the global economy and
tightening of exploration expenditure, borehole hardware
must continue its adaptability and respond to industry trends
if it is to stay current and relevant. As conventional reserves
are dwindling, operators are looking towards deepwater and
uncharted areas for new plays. As a result service companies
are increasingly being asked to work in deeper, higher pressure,
higher temperature reservoir zones. HPHT production well
technology has been available for many years, capable of
dealing with pressures in excess of 20 000 psi (1379 bar) and
temperatures greater than 266˚F (130˚C). Until recently
borehole seismic technology has been limited to this range
~302˚F (150˚C), and 25 000 psi (1724 bar) due to hardware
milestones. However, in order to keep pace with the rest of
the industry and maintain its relevance as a key component of
upstream exploration, downhole technology has begun to make
breakthroughs to operate at ultra-high pressures (30 kpsi+) and
temperatures 356˚F (180˚C+) whilst still providing the gain
step advantage in sensitivity and signal to noise expected of
boreholes seismic over surface methods.
An example of image zones that present such technological
challenges is the deep sounding undeformed reflectors of
the Tertiary Wilcox Trend situated within the deepwater
Gulf of Mexico (GoM). Here, the combination of high pressure and
temperatures due to large water depths, deep reservoirs, and
complex overlying salt layers present considerable problems to
the exploration industry. Salt canopies up to 20 000 ft (6000 m)
thick and covering approximately 90% of the trend3 have proven
very difficult for standard surface seismic surveys. Despite
advances in wide azimuth (WAZ) surface seismic surveying
and prestack depth migration method (PSDM) poor vertical
resolution due to a combination of salt layer geometry, multiple
generation above salt layers, low amplitude first arrivals and
distortion from weathering layers, often result in relatively poor
velocity models unable to accurately image deep reservoirs.4
By augmenting surface data with 3D VSP information obtained
with the use of three component receivers located proximal to or
beneath the salt canopy, the industry has found potential to not
only improve first arrival signal-to-noise, and they are also less
subject to wavefield distortion and regional anisotropy.
Current economic conditions and prices have forced
emphasis to be placed on efficiency of systems and reduce rig
downtime by ensuring VSP survey time is reduced to a minimum.
By using long arrays or permanent seismic recording systems,
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Figure 4. Downhole ‘Quad’ geophone receiver pack with four
geophones per axis wired in series. Signal is multiplied by the number of
connected geophones when wired in series.
Figure 5. RH12 Well view of ZO VSP at ASL Cornwall Rosemanowes
(UK). ‘Quad’ and ‘Dual’ geophones were deployed in the shallow section
(850 - 1000 m TVD). Single vibroseis sweeps were performed for each
sensor pack type.
Figure 6. Time domain comparison of first arrivals of ‘Dual’ sensor pack
versus ‘Quad’ sensor pack shows a significant difference in sensitivity.
First arrival signal amplitude on the ‘Quad’ sensor is 6 dB (x2) that
recorded on the ‘Dual’ sensor pack (100 ms time shift has been applied to
‘Quad’ pack for display purposes).
28 | Oilfield Technology November 2015
it is possible to undertake 3D VSP surveys and surface seismic
surveys simultaneously. Such concurrent surveys are attractive
to service companies and operators, especially when such
acquisition is associated with the high cost of drilling deepwater
wells and the challenges associated with their re-entry. This
has led to time-lapse seismic surveys (4D) being seen as the
next significant seismic technique to be applied routinely in
the deepwater GoM. The method can be applied to characterise
reservoir properties, monitor production efficiency, and
estimate volumetric from inception through the life of the field.5
Temperature and pressure are not the only demands placed
on a downhole seismic system. The boom over the last 10 years
in exploration and production of unconventional reserves has
been celebrated by many across the globe, however public
scepticism of heavy oil, subsalt plays and shale oil and gas
has meant governments are enforcing stricter regulations and
demanding more stringent monitoring of reservoirs, especially
in more populated areas. As a result, a new market is growing
for the provision of high sensitivity instrumentation to be a
key provider in enforced reservoir monitoring of low amplitude
frack-generated microseismicity.
Meeting the challenge
The major difficulties surrounding ultra high temperature
wells are cooling issues associated with electronics. Strides
in development in insulation and active cooling have meant
operating temperature limits are continuously being pushed.
The latest innovations in temperature management of
down-hole electronics consist of various techniques including
vacuum insulation, heat pipes, phase change media and
thermo-electric cooling (TEC).6 These so far have allowed
continuous digital operation at 356˚F (180˚C). TECs are
solid state heat pumps that transfer heat. TECs contain two
semiconductors connected by a thermally conducting plate on
either side. A Peltier effect is generated where once a DC current
is applied, a temperature difference is induced at the boundary
of the semiconductors. Heat is transferred from one side of the
TEC to the other (Figure 2).
The advantage of using solid state TECs compared to
conventional refrigerator/radiator technology is the lack of
moving parts and the minimisation of noise applied to the
geophone receivers. Such refrigerant components are thus
often used in production environments such as logging/seismic
logging while drilling.6
To improve the efficiency of heat transfer away from the
TEC, heat pipes can be utilised (Figure 3). Heat pipe technology
works by relying on release of latent heat during phase change
of water inside a heat pipe. At the hot end of the heat pipe, the
liquid is turned into a vapour, and rises to the cold interface
where it condenses to a liquid and releases latent heat. The
liquid is then cycled to the hot interface by either a wick, or by
gravity. Heat pipes can be extremely efficient and the very high
rate of thermal transport in a small area makes them perfect for
transport of heat.
Insulation of electronics is a key component of thermal
management. The challenge associated with insulation is
to limit conduction pathways. Manufacturers deliver this by
vacuum flasking temperature sensitive printed circuit boards.
High precision fabrication such as electron beam welding is
required to ensure vacuum fidelity.
High pressure instrumentation is dependent on robust seals
and electronic feed throughs. Downhole tools are evolving to
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by looking ahead.
For more than 75 years, Frank’s
International has been making history in
tubular oil and gas services by anticipating
change and staying ahead of industry
needs. Today, more than ever, our
innovative technologies and proprietary
tools, available in 60 countries on six
continents, are helping customers meet
new challenges and get the most from
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replace conventional o-ring seals with metal-metal seals. This
not only delivers a higher pressure rating but is much more
resistant to aggressive borehole substances such as H2S. These
extra high pressure seals employ metal C rings which are
fitted and emplaced under specific torque settings providing
a 30 000 + psi pressure rating. The metal-metal seal principle
is based on the plastic and elastic deformation of the c ring
during compression which creates a seal capable of not only
withstanding ultra high pressures but for long durations. This
has the ‘dual’ benefit of low maintenance costs coupled with
reduced rig downtime.
Geophone receiver improvements
Geophone sensitivity is an often overlooked hardware
property for accurately defining arrival time picks in low
signal to noise (S/N) environments commonly associated with
large offsets, microseismicity and proximity to production
wells. With the use of passive transducers (Figure 4) signal
is multiplied by the number of connected geophones when
wired in series with local thermal noise increasing at a much
smaller rate. This can therefore add much value when such
sensor packs are deployed within high temperature well
environments.
Testing at the Rosemanowes Deep Well test facility
(Figure 5) has been undertaken to compare amplitude
signal to noise of ‘Dual’ Geophone receivers containing two
geophones per axis, and ‘Quad’ geophone receivers containing
four geophones per axis within an ASR downhole satellite.
Comparison of the two systems shows a significant
difference in sensitivity between sensor pack types (Figure 6).
Not only is first arrival signal amplitude considerably greater
for ‘Quad’ sensor pack receivers, analysis of the pick
amplitude ratio to RMS noise (Figure 7) shows an average
of 6 dB improvement when doubling the number of phone
elements. It should be noted thermal noise (Johnson-Nyquist
noise) can have an impact on sensitivity, especially during
operations in hot well conditions. The increased coil
resistance due to higher temperature results in greater
thermal noise of the system and therefore affects the
geophone sensitivity. It is in well environments such as this
that quad geophone receivers will give
better S/N improvements compared
to dual receivers as signal is doubled,
whilst only featuring a marginal
increase in thermal noise (Figure 8).

Harder, better, faster, stronger

Borehole seismic technology is
making vast technological leaps in its
efforts to provide the latest market for
continuous operation in increasingly
hostile well environments.
Manufacturers and service providers
alike must remain flexible and
maintain their ability to move with
industry requirements, as well as
predicting and preparing for future
Figure 7. Downhole Testing – two and four element signal pick amplitude to RMS noise ratio (S/N) trends. The future potential of fibre
performance plotted against depth. Ratio of pick amplitude to RMS noise amplitude. optic and distributed acoustic sensing
will also be ever an increasingly
complimentary technology. Pushing
tool longevity and sensitivity
capabilities remains as important as
ever for both the presently cautions
seismic exploration market and
growing regulation driven market for
semi/permanent monitoring.

References
1. Verdon, J., & Wills, W., ‘Reducing velocity
model uncertainty and improving
microseismic event location accuracy’, EAGE
PSW Lisbon Proceedings, (2014) pp. 19 - 22.
2. Hardage, B., ‘Developments, trends and
future directions in VSP and Crosswell
seismic profiling’, (2001).
3. Lewis, J., Clinch, S., Meyer, D., Richards,
m., Skirius, C., Stokes, R., et al,
‘Exploration and Appraisal Challenges in
the Gulf of Mexico Deep-Water’, Wilcox,
(2007).
4. Wills, W., ‘Into The Abyss’, GeoExPro
Edition 9, (2013).
5. Shirley, K., ‘Time is Proving the Value of
2D’, Explorer, (September, 2001).
Figure 8. Thermal noise (Johnson-Nyquist Noise) and SMC 2400 geophone sensitivity versus coil 6. Hughes, T., ‘CFD Modelling of Thermal
Management in Downhole Tools’, (2015).
resistance at 302˚F (150˚C).

30 | Oilfield Technology November 2015

Mark Freeman and Jake Steele, Tercel, review the benefits of a
customisation process in the design of drilling equipment.

MAKING THE
RIGHT CHOICES

W
hen selecting the right PDC drill bit for a well interval, the
drilling team makes their selection based on the expected
performance and objectives in the particular application. This
evaluation involves considering durability, cutting efficiency, stability
and steerability among other key attributes, but in many cases, the
decision is impacted and constrained by another key consideration – the
availability of the product.
Behind every drilling product in the industry lies a high value
investment. Significant research and development efforts as well as
field testing analysis to establish new design points and validate new
materials takes the concept to the finished product. In the case of
Tercel’s MicroCORE technology, all of these processes were carried out.
By focusing on both the product’s capabilities as well as the
customisation process, this product line has been designed to deliver on
agility in the hole and to provide operators with increased flexibility.

Design and delivery

Developing a truly fit-for-purpose PDC bit requires time to evaluate the
application, design and manufacture the product, and finally, deliver

| 31
the product to the drill site. In most cases, this process can take
many weeks and even months as the bit sits in various process
queues waiting for attention. On the drill site, this would be
called ‘flat time’ or ‘non-productive time’ because it is time that
passes where no value is created.
Figure 1. The rapid customisation process.
Figure 2. Chart showing ROP being maintained.
32 | Oilfield Technology November 2015
As part of the product development process, a ‘Business
Process Reengineering’ approach was undertaken, which
involved putting the customer at the centre of all processes
associated with customising the newest drill bit. The result is
a process called rapid customisation (Figure 1). Utilising this
streamlined approach to product design and delivery in a variety
of applications across the globe has resulted in new designs
being consistently delivered to rig sites in timeframes measured
in days rather than months. To put this in perspective, an
Australian operator recently approached Tercel asking for help
with a challenging 6 ⅛ in. section. The relevant regional drilling
data was analysed, combined with geological prognosis and
operational objectives to develop a bespoke, purpose-built bit.
Following the analysis of the data, and approval from the
client, a specification was issued to the design team who got
to work, combining all the features necessary to achieve the
defined performance within the operational parameters. The
CAD files then passed into manufacture and three days later
the finished product was ready for delivery. Thanks to the
rapid customisation process, the whole process from initiation to
rig-site delivery was only 10 days.
What this means to clients is two-fold. First, there is less
compromise on bit design at the start. If there is no product on
the shelf that is ideal for the application, a fit-for-purpose bit
can be developed to meet the timeframe. Secondly, using this
approach to product development means that learnings from
each run in the application can be incorporated very quickly,
which results in rapid performance gains and time shaved off
day curves.
Technology overview
At the heart of the technology is the ‘no-centre’ feature which
cleverly avoids cutting the formation in the central area, and
releases it uncut into the annulus. This feature improves drilling
speed, as it is widely understood and acknowledged in drill bit
design that the central area is the most inefficient part of the
cutting structure, as the cutters here have very low rotational
velocities. Simply removing the need to cut formation removes
the inefficiency, giving more energy to where it is needed most
– at the nose and shoulder.
The company was given a performance ROP benchmark to
beat through a difficult section of anhydrite in the North Sea,
UK. Although the dull condition of the pulled bits is normally
very good with little wear on the cutters, the ROP generally falls
off significantly upon entering this deeper part of the section. A
highly efficient cutting action in this formation has proved to be
a significant advantage as the technology was able to maintain
drilling speeds through the anhydrite.
This technology has had many runs in a variety of shale
plays in the US, specifically in North Dakota where the
MicroCORE Accelerator concept is well suited to the lithology. In
some applications during 2015, the feature has been combined
with Phoenix PDC cutters which, due to their agile design,
added a 200 ft/hr improvement to ROP.
Abrasion resistant cutters
Just as a drill bit concept goes through a rigorous development
process before being commercialised, the same applies when
introducing more durable and abrasion resistant cutters
to the bit face. Today, the Phoenix cutter is available on all
MicroCORE designs and is helping push performance further. In
an almost identical 6000 ft section in Europe, through a variety
of challenging formations, the bit was pulled with worn cutters
on the shoulder, graded 2 or 3 following the IADC dull grading
convention. This year however, after using Phoenix cutters, the
condition of the cutters appears almost new, with no chipping
or spalling to the surfaces. It is clear then the bit could have
drilled significantly further.
The improvement comes from a collaborative approach from
the company’s engineering team in developing and testing the
Phoenix cutter. By using this technology, the cutter suite has
superior abrasion and impact characteristics. This means in
practice that not only are these cutters able to outperform the
company’s previous cutters by 95% in distance drilled, but also
give higher thermal resistance than leached cutters.
Evolution
This performance originates from the cutting structure of the
technology, which despite maintaining the same concept over
its lifespan, has certainly undergone something of a facelift
during 2015 and has evolved and improved since first inception
back in 2006. Despite the performance improvements possible
with a MicroCORE bit, it was interesting to find out how the
visual impression of the design hindered its take-up in the early
stages of life. In some cases there were doubts about drilling
with a bit where the cutting structure is a significant departure
from what is very well known. While some of the early models
did look a little unconventional, the design has changed over
time and today, on first glance, it is actually quite difficult to
see that it is a no-centre design. The concept was retained and
improved via customer feedback. For example, one customer
noted that the appearance of the early MicroCORE bit appeared
unbalanced due to the blade spacing required to allow passage
of the drilled core. This led to concerns that bit dynamics
were compromised and that there would be an increased risk
of drillstring vibration, cutter damage and tool failure. Later
versions incorporating the Accelerator feature into a standard
design have helped remove these concerns.
Other aspects
Not only are the ROP numbers impressive, but attention is
also being draw towards less emotive attributes which are
improved by the technology, such as stability and durability.
While it is true that many operators want faster drilling rates,
Figure 4. Evolution of the MicroCORE drill bit line.
in many applications it may not be operationally possible to
achieve them, for example due to rig capability, cuttings control
or logging quality; this fuels an increasing demand for other
drill bit abilities which act to enhance the drilling system as a
whole. A stable bit is a crucial factor in not only maintaining
the integrity of the bit cutting structure (in turn improving
durability), but also in minimising downhole vibrations which
reduce damage to expensive downhole tools.
Designs with a conventional face profile often trade off
their ability to steer responsively, by improving stability;
however, the secondary strength of the ‘no-centre’ technology
is its inherent profile, acting as a natural centralising feature.
This centralisation feature means that the bit remains stable,
maintains its cutting structure for longer, limits damage to
BHA tools, and carries this out without losing the ability to be
agile downhole and steer where pointed when called on. This
improves drilling speed by sliding less and rotating more.
Conclusion
By remodelling conventional bit design, MicroCORE technology
has been shown to provide enhanced ROP and generate real
bottom-line cost saving improvements to a drilling programme,
breaking the trend seen in more traditional bit designs where
performance has begun to plateau. Combining this advanced
drill bit technology with a streamlined custom-design and
manufacturing process allows operators to meet their
operational targets more easily.
Figure 3. Left: previous cutter. Right: 2015 Phoenix cutters.
November 2015 Oilfield Technology | 33
RESERVOIRS

34 |
Thomas JØrgensen, Fishbones, Norway,
highlights the potential of stimulation
technology to increase well productivity.

T
he roots of a tree consist of many branches allowing water and nutrition
to be effectively absorbed from the soil. The multilateral stimulation
technology for oil and gas reservoirs is analogous to a tree root system.
In a short pumping job, numerous laterals – similar to tree roots – are extended
simultaneously from the mother bore into the formation to connect to the
reservoir, creating highways for hydrocarbons to flow into the well (Figure 1).
The technology for stimulating carbonate reservoirs – using a patented
jetting system – has been well-documented throughout the concept,
development and field trial stages, and is proven to significantly increase well
productivity. More recently, as part of a joint industry project, the company has
worked to develop similar technology for sandstone reservoirs.

Operating in sandstone reservoirs

The multilateral stimulation technology for sandstone and other clastic
formations is called Dreamliner MST. The technology was developed
and qualified in a joint industry project (JIP) with Statoil, Eni, Lundin and
Innovation Norway. The first installation took place in a subsea well in the
Norwegian Sea in July 2015. The technology comprises an MST sub that houses
three small-diameter, high-strength tubes called needles, each having a drill bit
on the front end and a turbine on the back end (Figure 2). The sub is made up
to a full-length casing joint and the needle assemblies, up to 36 ft (11 m) long,
complete with turbines are installed in the subassembly. The subs are run
as integral parts of the liner in the open hole and are positioned across the
formation where laterals are desired. Numerous subs can be run along the liner
with the maximum number of subs depending on individual well factors, such
as the length of the open hole.
The MST equipment is run into the production zone in conjunction with
standard liner hanger equipment and liner casing. The liner hanger slips are
set and the setting tools are released. Fluids are then circulated to activate
the system. During circulation, the turbines rotate and transfer torque, thrust
and lubrication through the needles to the (needle) bits in order to drill the
laterals. The lateral drilling process is initiated by increasing flow rates to a
predetermined level, at which point the turbines will reach the working RPM
required to drill. The wellbore fluid can be drilling mud or completion fluid. The
rotating drill bits are pressed against the formation while drilling the lateral; all
of the laterals are drilled simultaneously and circulation maintained until all
the needles have extended. During the drilling process continual circulation
ensures the cuttings powder from the drill bits is removed from the lateral and
transferred up the mother bore to the surface. The liner top packer is then set
and the liner hanger setting tools are retrieved; the upper completion can then
be run and the well is ready to produce. Production occurs in the annulus and
all the needle annuli, and flows into the liner through production valves in the
MST subs. The turbines inside the liner are designed to dissolve over a short
period of time once they are exposed to production fluids.

Applications and benefits

MST increases productivity from medium tight to tight reservoirs and is
applicable in both new and existing wells. An open hole mother bore is
required. MST can bring the following benefits in various applications:

� Bypass low permeability layers that restrict vertical flow towards

the horizontal wellbore. In most reservoirs, vertical permeability is
significantly less than horizontal permeability. One of the most limiting
factors of horizontal wells is that they do not perform well in reservoirs
with poor vertical permeability. The MST lateral penetrates through low

| 35
 permeability layers to connect up to layers that would otherwise
not be produced effectively. This will accelerate production, or even
increase reserves.
ÌÌ Connect to natural fractures, if they are present. Many naturally
fractured reservoirs have been developed successfully with horizontal
wells. However the success of such wells depends on intersecting
sufficient natural fractures to create a large reservoir contact area.
The very nature of the MST completion gives it a much larger chance
of intersecting natural fractures, compared to a simple horizontal
wellbore, since the laterals reach far out into the reservoir.
ÌÌ Avoid unwanted zones. One of the issues with hydraulic fracturing
in many reservoirs is the risk of fracking into water or gas bearing
zones. Many horizontal wells are drilled in thin reservoirs, where the
distance to water and gas is small enough to preclude the use of
hydraulic fracturing. With MST, the laterals have a defined maximum
penetration length, and the lateral length can be tailored to fit within
the reservoir thickness.
ÌÌ Bypass near-wellbore skin. Skin damage is a significant problem in
horizontal wells, and it is difficult to remove, especially as the well
gets longer. The MST laterals physically bypass near-wellbore skin to
produce from undamaged reservoirs. This benefit is present even in
homogeneous reservoirs.
ÌÌ Improve inflow/outflow conformance. Production logging from
horizontal wells usually shows very poor conformance. Most of the
Figure 1. MST completion.
Figure 2. Dreamliner MST assembly.
36 | Oilfield Technology November 2015
production comes from a very small part of the horizontal section.
This could be due to uneven skin damage, natural fractures or
reservoir heterogeneity. The MST completion mechanically improves
the conformance by spacing the laterals along the entire wellbore,
helping to improve conformance along the horizontal section.
ÌÌ Connect to sweet spots away from the wellbore in case they were
missed during the drilling phase.
Development of MST for sandstone formations
From its headquarters in Norway, Fishbones developed MST for
sandstone formations during a two-year JIP with Statoil, Eni, Lundin
and Innovation Norway. The technology was qualified in a two-stage
process towards the latter phase of the project. First, simultaneous
drilling of full-length laterals was proven in a selected, representative
sandstone formation outcrop in Continental Europe. Second, the whole
system was qualified in a full-scale test setup where all operating steps
were confirmed functional and in sequence. The company constructed a
tailor-made test unit, following a detailed HAZOP, to allow for circulation
of heated oil-based mud. The test also included setting the open hole
anchor, activating the shoe, initiating the turbine rotation to effect drilling
of multiple laterals in cement blocks. The JIP culminated with a fully
functional 5.5 in. MST system for sandstone formations and the award of a
contract for installation in a subsea well offshore Norway.
Job design and reservoir simulations
Before any MST installation occurs, the company performs a detailed
study of reservoir and well parameters to ensure a successful result.
Furthermore, the company also tests core samples to verify that the
actual formation can be drilled (or jetted) and to determine the rate of
penetration (ROP).
Reservoir simulations are another important part of the MST well
screening and well planning processes. In order to evaluate the potential
production improvement from employing the MST, it is important to be
able to accurately model the completion either in an existing reservoir
simulation model or in a specially-constructed reservoir simulation model
(usually a single-well or sector model). Using a simulator that has been
developed and benchmarked with an established 3D reservoir simulator,
MST completions can be effectively modelled. The quick-look single well
simulator compares productivity from barefoot open hole with an MST
completion and allows optimisation of the number and spacing of subs
to be deployed for each given application. The simulator can be used for
both oil and gas wells, with and without pressure support, and for water
injectors.
Hydraulic calculations form an essential part of MST job preparation.
The pressure and flow regimes in the liner must be modelled to ensure that
the conditions are within the equipment operational envelope throughout
the whole liner length. Fluid is distributed out through the needles along
the liner length, so the flow rates and differential pressures are lower in
the toe of the well than in the heel. The system must also be compatible
with other equipment in the well, such as the liner hanger. To this end, the
company uses a simulator that has been developed to model the system
hydraulics for successful pumping job execution.
First installation
MST for sandstone formations was installed for the first time in a new
subsea well offshore Norway in July 2015. The target formation was a
tight sandstone with an underlying gas bearing formation that ruled out
any hydraulic fracturing. A total of 48 Dreamliner subs were deployed
over the 2000 m (6600 ft) open hole interval to a TD of 6500 m MD
(21 300 ft).  Subsequent mud circulation over a period of 6 hours, utilising
only rig pumps, effected drilling of 144 needles, creating laterals extending
in a radial pattern from the mother bore. Well operations are still ongoing
at the time of writing; the well is yet not in production.
Leading edge manufacturing,
design, and materials combine for
excellent and reliable performance.
Precision machined
bearing surfaces
ensure maximum run
life in demanding
applications

World class hard

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 IN PE E
CL U
S

UD RO
IN PE
G C
78th EAGE Conference & Exhibition

VIENNA 2016
Efficient Use of Technology - Unlocking Potential

CALL FOR ABSTRACTS:

15 January 2016

30 May – 2 June 2016 | Reed Messe Wien

www.eage.org/event/vienna-2016
Kerry Daly, Expro, USA, explains how reservoir
optimised perforation solutions can unlock
hydrocarbon flow to produce vital revenue.

C
onnecting oil or gas-bearing formations with the wellbore is where the extraction process really begins.
The foremost goal of any operator is to safely recover the most oil or gas in the shortest amount of time
to maximise return on investment (ROI).
From an economic perspective, the decision to spend money – from securing exploration acreage through
to drilling and completions – relates to recovering viable reserves. From a service company standpoint, tools,
equipment and service provision are focused on ultimately delivering hydrocarbons to the consumer.
The interface between the wellbore and the formation is key, and the completion will account for this,
whether it is a trickle requiring artificial lift or a gusher requiring high pressure well containment.

| 39
 The aim behind Expro’s TCP technology is to maximise oil
flow in all phases of a well’s life – from E&A to production and
workover/intervention to abandonment.
The company’s TCP team will review reservoir conditions
and model application options to propose and validate the most
appropriate perforation system. Outcomes can then be verified
and further analysis on well performance can be undertaken.
Figure 1. TCP solutions feature a new series of firing heads.
Figure 2. TCP technology can enable operators to maximise the
recovery of reserves.
40 | Oilfield Technology November 2015
Cased hole versus open hole
Approximately one third of new wells globally are completed in
open hole1; often referred to as a sandface completion. When
operators complete a well this way and decide against running
production liner (casing); allowing the formation fluids to flow
without restriction into the well bore, perforating is not required.
The rock type is a key determining factor however many
other considerations come into play such as completion
cost, well maintenance and longevity, and production
management. Stimulation services such as acidising,
fracturing, frack-packing or gravel-packing may still occur in
open hole, however techniques may vary.
There are circumstances where open hole completions
are not feasible. If the formation is weak, causing the
wellbore to collapse, then running casing may be preferred.
Or if mud infiltrates the formation during drilling, causing
damage near the wellbore which prohibits the flow of oil
or gas, then perforating beyond this damaged zone may be
required.
Running and cementing casing across the producing
formation allows the operator to optimise perforating
throughout the producing intervals; having the ability to
segregate and isolate flow thereafter, particularly as water
breakthrough occurs.
TCP and wireline
If a decision is made to case the wellbore across the
reservoir, then the operator can consider TCP or electric
wireline (E-line) perforating options. As always, this decision
is based on many factors, not least whether the well will be
perforated underbalanced or overbalanced; prior to or after the
upper completion has been installed.
In terms of E-line, this involves sending an electric current
down the line to ignite a detonator which fires the perforating
guns. This method also includes select-fire, which can be run
with tractors, coiled tubing or slickline.
However, the inherent risk in running electric detonators is
that they can pose a safety hazard to personnel on the surface
due to potential accidental firing from miscommunication,
stray voltage, lightning strike or static electricity.
Furthermore, only a limited number of guns can be run due
to surface lubricator length and the lack of formation control
(underbalance/overbalance) after the first zone is fired
(equalises afterwards).
In terms of TCP, this can be tubing, pipe or coiled tubing, and
can also include slickline firing systems. The primary benefit
is that the firing system does not rely on electricity, so surface
safety is enhanced. There is still slight potential risk due to
mechanical impact, shock or heat, however, this is normally
mitigated within the design and/or running procedure.
A key benefit in using TCP is that extremely long intervals
can be run. Expro recently completed a 5000 ft+ zone in a single
firing which resulted in the beneficial cleanup of the formation
for a major operator in Alaska. This was due to utilising pressure
differentials from the formation to the wellbore which surges
and carries potentially damaging debris out of the perforation
tunnels.
In this example, as is often the case with horizontal well
laterals, the depth exceeded 5000 ft and deploying a continuous
length of TCP guns on tubing, as preferred by most operators,
takes several hours. In turn, this can create risk and higher costs
for both equipment and personnel.
COILED TUBING TECHNOLOGY
FOR TODAY’S COMPLETION CHALLENGES
Cudd Energy Services (CES) develops coiled tubing solutions to meet the
challenges of conventional and unconventional well completions.
Our technology features a wider selection of string designs with higher yield
strength capacities and increased rigidity. This provides quicker trip times,
increased productivity and improved operational safety.
Each operation is implemented by highly qualified personnel, who possess
extensive in-house training and industry certification, to ensure each operation
is completed safely and efficiently.

For more information about our coiled tubing solutions, visit us at www.cudd.com.

Figure 3. By incorporating DST tools, the well can be perforated, underbalanced
and subsequently killed before pulling out the TCP guns.
By redesigning the deployment equipment, a combined
clamp became the primary lifting mechanism with
load-carrying capability. The rapid assembly and deployment
of 5000 ft+ of guns saved 13 hours of rig time, estimated at
US$25 0002 and would be significantly more in higher cost
environments, such as offshore deepwater, where rig day rates
are much greater.
Well control can be included in TCP string design, particularly
in ‘shoot and pull’ applications; i.e. the well is perforated on a
workstring on a separate trip prior to installing the completion.
By incorporating certain drill stem test (DST) tools (tester valve,
circulating valves, packers etc.) the well can be perforated
underbalanced and subsequently killed in a controlled manner
before pulling the guns out of the hole on the workstring.
Similarly, TCP is often chosen by operators in
exploration/appraisal wells, attached below the DST tools, again
allowing underbalanced perforating on a single trip. This also
allows larger (OD) and longer guns to be utilised; otherwise
smaller, thus lower performing wireline guns would have to be
deployed through tubing on multiple trips to allow the well to
be perforated underbalanced; even then only the first gun run
would perforate under static underbalanced conditions, as the
formation would then be in communication with the wellbore.
Firing heads
Expro’s TCP solutions feature a new series of firing heads and have
been utilised by super-major operators in global deepwater fields,
with support from in-house reservoir engineering professionals in
pre-job modelling and rapid special modification services.
With many different types of firing heads including drop
bar, pressure activated, time delay, differential pressure, and
annular or tubing pressure fired, their use is dependent on
the operators’ wellbore and desired completion method. The
prime consideration of any firing head should be safety – the
company’s inherent design criteria is proven by risk analysis and
qualification testing.
If in a vertical or deviated well up to 60˚, running a drop bar
firing head or combination drop bar/pressure activated firing
head (top dual redundant) may be chosen. Adding a pressure
component to this firing head allows for safe handling on the
surface as the firing pin is locked until a certain amount of
hydrostatic pressure, present only at depth in the wellbore,
surrounds the assembly. Running this firing head on the top gun
42 | Oilfield Technology November 2015
with a pressure activated firing head at the bottom provides
a truly redundant firing option.
Ancillary equipment – vents and releases
Run in conjunction with TCP equipment as part of the bottom
hole assembly, vents open or close at selected hydrostatic
pressures to allow the circulation of wellbore fluids or
production of hydrocarbons after perforating. Automatic or
mechanical releases allow guns to drop off after perforating to
remove flow restrictions and allow full-bore access across the
perforated interval(s) for future well intervention operations.
Gun and speciality systems
It is important to select the best available technology for specific
formation and wellbore parameters. The critical parameters
of gun systems are the temperature rating of explosives used,
pressure ratings of carriers and tensile and load ratings of
threads. The company’s systems ensure all parameters are
carefully designed and checked with pre-job models to ensure
compliance to industry and client requirements.
As TCP services can be used in many stages of a well lifecycle,
in different formation types and geographic locations, various
perforating solutions exist.
DST operations, particularly in costly operating environments,
benefit greatly from having real time visibility of downhole data.
The company’s wireless well solutions provides this service,
which enables downhole pressure/temperature gauge data to be
accessed and transmitted to surface in real time, thereby allowing
the operator to make informed decisions on the length of flow
(pressure drawdown) and shut in (pressure build-up) periods. This
ensures that well test objectives are met yielding valid results in an
optimised timeframe. As this is done through wireless telemetry this
two way communications platform can be utilised further.
The company has also developed an ‘intervention-less’ safety
impact mechanical firing head which operates acoustically to fire
the TCP guns. No drop bar is needed, making the system safer and
multiple firing heads can be run when several zones require to be
perforated independently and tested sequentially on the same test
string.
Actively providing solutions in extended reach horizontal wells,
Expro TCP combines technology with coiled tubing, clean-out
tools (mills and motors) and agitators/vibrators/water hammers,
which are necessary because the total depth of these wells
commonly exceeds coiled tubing running capacity (due to friction
and buckling). Using bespoke patented technology, the company
combines these tools in a single assembly, ultimately eliminating
one or more coiled tubing trips thus saving time and cost.
Conclusions
Expro’s aim is to provide operators with a holistic well flow
management solution throughout the well’s life cycle. By
providing flexible and engineered systems, TCP can enable
operators to achieve their goal of maximising the recovery of
reserves by matching particular reservoir parameters with the
best available perforating technology. From shallow land wells
to deepwater HPHT environments offshore, the company has
safe, field proven systems in place that are designed to optimise
wellbore connectivity with the reservoir.
References
1. Rystad Energy, (2014).
2. Expro, ‘Expro Excellence/TCP’, (2015).
AN
INTELLIGENT
APPROACH
Savio Saldanha, Halliburton, USA, discusses zonal control in multizone mature fields.
W
ith significant advancements in drilling and completion
technologies, many operators are revisiting their
strategies for their mature fields as an incremental
source of oil production. Various enhanced oil recovery (EOR)
techniques have been explored to exploit these incremental
reserves. Wells are being strategically re-drilled to accommodate
a desired injection flood pattern, laterals are sidetracked from
the existing wellbores to maximise the drainage area, and long
extension horizontal wells are being drilled to maximise the
payzone for production or injection. The economic benefits
of multilateral (MLT) or extended reach technologies are well
known. Operators are continually looking to increase the number
of laterals in a single wellbore or extend the reach of a horizontal
wellbore. The challenge, however, lies in determining how
to efficiently control the number of laterals or the numerous
compartments in a horizontal well. Intelligent completions
provide operators with the ability to optimise their reservoir
management processes by enabling remote monitoring and
| 43
Figure 1. Electro-hydraulic control manifold.
Figure 2. ICV electro-hydraulic manifold.
control of their reservoir intervals. The reliability and benefits
of current intelligent completion technology is known and
widely accepted. Intelligent completions have been deployed
in many MLT wells or extended reach horizontal wells
worldwide. However, the maximum number of zones that can
be controlled economically and efficiently using the traditional
direct hydraulic (N+1) control architecture is six zones.
The limitation for using direct hydraulics to control more
than six interval control valves (ICV) in a single wellbore
include the following:
ÌÌ Limited penetration for additional hydraulic lines with
existing wellheads.
ÌÌ Add-on cost/ft for each additional line required for every
additional ICV.
ÌÌ Longer valve actuation times for extended reach wells.
ÌÌ Special flatpack, clamps, and handling accessories (for
more than six lines).
New ICV control system
To address these limitations, Halliburton has recently
developed and trial tested a new electro-hydraulic downhole
ICV control architecture called the SmartPlex® downhole
44 | Oilfield Technology November 2015
control system with a major operator in the Middle East. The
new control system provides selective control of ICVs in an
intelligent completion, which is operated remotely from the
surface. With three control lines (two hydraulic lines and one
electrical line), up to 12 ICVs can be selectively controlled.
The system uses passive electrical components to enable
multiple ICVs to be connected to the same three control lines.
Each ICV is coupled to a manifold (Figure 1) that houses an
electromechanical gate. A surface controller enables remote
selection of any gate in the system. After the desired gate
is selected, electrical current from the surface is activated
to open the selected gate. This action enables hydraulic
fluid from the surface to communicate with the desired ICV.
Depending on the direction in which the ICVs need to move
(i.e., open or close), pressure is applied to the corresponding
control line, and remains under pressure until all ICV moves
have been completed in the desired direction (i.e., open moves
for all desired ICVs before proceeding to close moves).
Reliability of an electrical or electro-hydraulic downhole
ICV control system is essential for a multizone intelligent
completion system. To address reliability concerns, the
electrical control line and the electrical chamber of the control
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system manifold are filled with dielectric hydraulic fluid and
maintained under pressure to keep the internal biased to the
external environment, preventing failure of the termination as
a result of fluid ingress (flooding) into the electrical chamber.
A special electrical wellhead outlet at the surface enables the
hydraulic fluid in the electrical line to be monitored and filled,
if required.
The most basic version of the new control system in a
multizone completion will operate simple open/close ICVs.
However, for advanced reservoir management applications, an
upgraded version of the control system enables the ICVs to be
manipulated to the desired choke position. The choke positioning
of the ICV is achieved by controlling the time required for the fluid
to vent from the closed chamber of the ICV for a desired choke
position. A surface callibration followed by an in-situ calibration
is conducted to validate the time required for the choke to travel
from a full-close to open position. This total time is then divided
by the number of choke settings on the ICV flow trim to derive
the time required to vent (fluid from the close chamber) for each
choke setting. The two callibration events assures accuracy of the
choke positioning. The results of the calibration for each choke
setting is entered from the surface automated panel. The surface
automated controller handles all ICV operations intelligently. First,
the desired ICV is selected, and then the desired choke setting
is selected. The surface controller handles the ICV manipulation
automatically by controlling the time that the directional control
valve (DCV) at the surface panel remains open (for the close line)
for the desired ICV choke setting. After all ICV open moves in the
system are conducted, the controller automatically bleeds down
all system pressures.
Benefits
The new control system provides many advantages for ICV
control, as compared to all-hydraulic or all-electrical control
systems.
� As the system uses three control lines to control up to
12 ICVs, the number of control lines required for each
valve is reduced. On a 12-zone completion, the new
control system provides more than 75% savings in control
line cost, as compared to a 13 line flatpack using direct
hydraulics.
� Significant Opex savings are derived when comparing the
time required to actuate ICVs with the new control system,
as compared to those that use a direct hydraulics control
system. With the new system, the hydraulic control lines
are pressurised once and remain pressurised until all valve
actuations are complete. This functionality effectively
reduces the operational time required to pressure up and
bleed down control lines multiple times to move multiple
ICVs with direct hydraulics control architecture.
� The new system uses a simple method to discretely
position the ICV choke by controlling the time required
for the fluid to exhaust from the hydraulic chamber of the
valve. This simple method eliminates the need for high end
J-slot or hydraulic metering modules that can significantly
increase equipment costs, which are impractical for the
cost-sensitive mature field.
� The reliability of electrical systems has improved over the
years; however, a single failure mode (such as a termination
failure) can bring down the entire system. The new control
system addresses this failure mode by fluid-filling the
electrical system with a pressurised dielectric hydraulic
fluid and keeping it biased to the outside environment. This
46 | Oilfield Technology November 2015
approach is not only proven and reliable, but also eliminates
the need for expensive electrical bulkhead termination,
keeping the price point for this system in line with the
mature field market segment.
Field trial
A major operator in the Middle East has been trial testing
various technologies to improve and optimise its reservoir
drainage area. Zonal control is an essential requirement
for this strategy. The pilot well was an extended reach
horizontal well that was compartmentalised into six intervals,
with a requirement to monitor and control each interval. A
six-zone SmartPlex system using ICVs (Figure 2) for zonal
control was proposed. On the monitoring side, permanent
downhole electronic gauges, multi-dropped on a single
tubing-encapsulated conductor (TEC) wire, were planned. A
fibre optic line was also planned as part of the completion
solution for distributed temperature profiling. Finally, for zonal
isolation inside casing, packers with the ability to feed through
the required control lines were recommended.
A team of dedicated individuals both from the operator
and service companies had numerous meetings to discuss and
formulate a plan to perform the completion in accordance
with the design. Several system integration tests (SITs) were
performed to enable the operational crew to become familiar
with the technology, especially with splicing and terminating
electrical and hydraulic lines. Bottomhole assemblies (BHAs)
were prepared in the shop to minimise the number of electrical
or hydraulic lines that would be terminated on the rig floor,
reducing rig time. Job safety analyses were conducted to ensure
that all rig site activities could be optimised, yet be performed
safely.
The job was successfully completed with no health, safety,
or environment issues or downtime. Because this was the first
installation of this technology, extra precautions taken resulted
in a slower make-up and run-in-hole time, as compared to
conventional intelligent completions. Once on bottom, all ICVs
were functioned open and closed. The control lines were then
fed through the tubing hanger, the tubing spaced out, and the
hanger landed. The tubing was then pressurised to set all of
the zonal isolation packers. The special wellhead outlet was
connected to the wellhead, and the control system electrical line
was fed through the outlet. After the wellhead was installed, the
ICVs were tested again with the portable control unit. At the time
of writing, the automated control panel was being installed at
the wellsite.
Conclusion
Lessons learned from the first successful field trial will be used
to refine field procedures for subsequent installations. The
technology has given the client confidence to implement the
new control system on additional wells. A second generation of
the control system is currently being developed that will enable
electronic gauges to be deployed on the same electrical line
that controls the ICVs; this enhancement will provide additional
cost savings by eliminating the electrical line currently required
to deploy several electronic gauges on a single line. The field
trial has proven the reliability of the new technology; the cost
savings and benefits described in this article make the new
downhole ICV control technology a suitable solution for zonal
control in multizone completions for mature fields.
Craig Webster, AGR, UK,
gives an overview of the role
of the production technologist.

T
he role of the production technologist can
mean different things to different people
(and organisations). However, the discipline
is extensive and considers the production of
hydrocarbons from the near wellbore all the way
to the wellhead, flowlines and separator. As a
result, a good understanding of all the associated
disciplines from petrophysics, reservoir engineering,
drilling and completions to production chemistry,
metallurgy and geomechanics are required in
order to take a holistic approach to design and
implementation strategies from greenfield through
to brownfield sites.
In terms of the field life-cycle the production
technologist usually becomes involved at the point
where field development plans (FDP) are being
developed, providing input relating to sandface
completion types, artificial lift requirements
and production chemistry considerations. Their
involvement is continuous through the front end

| 47

Figure 1. AGR has a global subsurface team with over 100 professionals.
engineering design (FEED) stage as well as detailed well design and
to finally looking at production issues, brownfield optimisation and
decommissioning.
Delivering the right product
For the production technologist, properly framing a project is key to
ensuring the final deliverables will meet the client’s requirements.
In order to achieve this, a production technologist often utilises
a framing process for larger projects to ensure the clients
expectations are fully met.
A recent framing session the author had was with a North Sea
operator, revolved around the possibility of extending CoP by
focusing on water injection. Due to the complexity of the problem,
including ageing topsides and subsea equipment as well as limited
allocation data and multiple reservoir blocks, the solution was
neither trivial nor obvious. Since there are pressure and rate
restrictions at various points in the system, spending cash in one
area can result in moving the choke point to another area of the
system.
With a direct relationship between volume injected and oil
produced, the challenge was to understand where to invest capital
for the best possible prize, with cognisance of the fact that high
initial investments, even if they give the best rate of return, might
not be in the best interests of all the stakeholders.
By developing a number of high level strategies (ranging from
‘do nothing’ to ‘fix-all’) and linking these to the key decisions
for each of the technical areas (i.e. reservoir, wells, subsea and
facilities) it is possible to determine the best solution based
on pre-defined selection criteria (e.g. NPV, rate of return on
investment) optimising the operation whilst reducing unnecessary
expense.
Saving rig time and cost
The advances in drilling and completion technology over the
50-year life span of the North Sea petroleum industry have assisted
in the economic development of more and more marginal fields as
well as extending the life of old mature assets. Although DECC and
the OGA are preparing for a significant increase in well and facilities
decommissioning there are still great opportunities for future
drilling and production optimisation.
A North Sea operator working a central North Sea asset
commissioned AGR to look at how to reduce costs whilst still
maintaining productivity from their infill drilling campaign.
Historically the infill wells have been long, horizontal, cased and
perforated wells. With completed intervals in excess of 2000 ft,
perforating alone was costly, in the region of £2.5 million per well.
48 | Oilfield Technology November 2015
When taking into account the additional cost of casing and cementing
materials and operations, the total well cost (both in terms of
materials and rig days) was becoming less and less viable.
By moving from a cased and perforated completion to one
incorporating a pre-drilled liner (PDL), it was clear that significant
savings could be made. However, simply running in a pre-drilled
liner instead of cementing, casing and perforating has the potential
to create more problems than it could solve. Key aspects that AGR
considered included:
ÌÌ Formation damage and return permeability.
ÌÌ Selection of a drill-in fluid to prevent significant losses and allow
flow back.
ÌÌ Potential for sanding (moving from a perforated completion to
essentially an open hole completion).
ÌÌ Requirements and operation of a washstring and washdown shoe.
ÌÌ Requirements for a formation isolation valve (FIV).
ÌÌ Additional runs to test above and below the FIV.
The greatest concern when moving from a cased and perforated
completion to a PDL is that the drilling mud causes excessive
damage to the formation. While this is still a concern for a cased and
perforated well, generally the perforations will by-pass any damage.
For a PDL completion, the mud should be selected to minimise
formation damage and maximise return permeability. The correct
selection of drill-in mud and associated breakers help to ensure that
formation damage would be kept to a minimum.
Although the operator stressed the fact that there had been
little if any sanding, the change in the wellbore geometry (small
perforation diameter to large openhole diameter) will result in a
change in the stress distribution around the wellbore. While the hoop
stress will decrease for increasing diameter, there is an associated
increase in the radial stress that could lead subsequently to shear
failure of the sandface under production conditions resulting in solids
being produced into the wellbore.
Having established that the well can be drilled (without
excessive damage to the formation) and produced (without failure
of the sandface) the ability to run the PDL along a 2000 ft horizontal
section needs to be considered. In order to minimise risk of sticking
while running in hole it was recommended that a concentric
wash pipe with a flow crossover should be used, such as the
Baker SLZXP liner hanger and running tool. This allows circulation
down the inside of the PDL and flow through the PDL/openhole
annulus if required. Given the extra weight of the washpipe a review
of the torque and drag is essential to ensure that the completion can
be run to depth taking into account the increased friction factors
associated with sliding horizontal pipe in open hole and the slightly
reduced strength of the pre-drilled liner due to the holes.
Finally, in order to protect the formation while the upper
section of the well is cleaned out and the upper completion run,
an FIV should also be considered. A ball-type capable of providing
bi-directional pressure sealing with mechanical closing and
pressurising the tubing to open is recommended. The option to
mechanically open should also be considered as a contingency.
While testing the FIV from above is straightforward, an additional run
maybe required to perform an inflow test in order to ensure that the
FIV is providing a suitable barrier from below.
Whilst there are significant savings to be made from avoiding
cementing and perforating operations through the utilisation of
a PDL, there are additional costs associated with the PDL such as
return permeability testing, to ensure that the formation will remain
competent during production as well as the additional runs with
washpipe and infllow testing. However, even taking these into account
there is potential to save in the region of five to seven days of rig time
(equating to £450 000 - £630 000) by moving to this type of completion.
Incorporating the savings on perforation, and depending on rig rate,
it was established that savings in the region of 40% for the lower well
could be made by moving to a different completion philosophy.
Basis of design for CO2 injection wells
With over £2.5 billion being invested by the UK and European
governments in carbon capture and storage (CCS) there is a lot of scope
for developing an understanding of how gas, liquid or supercritical CO2
flows from the wellhead to the formation and through the reservoir. As
part of National Grid’s submission to the European Energy Programme
for Recovery (EEPR) AGR provided integrated services to look at
the geological structure of the storage site (known as 5/42) and the
requirement for the wells to allow successful continuous injection of
CO2. The scope of the production technologist was two-fold. Firstly to
consider the basis of design for the CO2 injection wells and secondly to
assess the life of field in-well monitoring requirements.
The design of a well for injecting CO2 into either a saline aquifer or
a depleted hydrocarbon reservoir needs to consider a number of key
factors:
ÌÌ The rate, pressure and temperature of the CO2 arriving at the
installation.
ÌÌ The initial and final reservoir pressures of the proposed storage
site.
ÌÌ The composition of the CO2 stream (i.e. quantity and type of
impurities).
ÌÌ The reservoir fluid properties.
For injection into depleted hydrocarbon zones, arrival pressure
and temperature are critical. Choking back the CO2 at surface can lead
to significant temperature drops due to the Joule-Thomson cooling
effect (it is possible for temperatures to drop from approximately
10˚C (typical subsea temperature) to -60˚C. Further adiabatic cooling
in the wellbore and near wellbore area has the potential to result in
the formation of ice or even CO2 hydrates in the formation, depending
on the reservoir pressure and residual water saturation.
The final reservoir pressure, for which integrity of the storage site
can be maintained, primarily has an impact on capacity – but it can
also impact on the number of wells required to provide injection at a
continuous rate. As the reservoir pressure increases, more and more
wells are required to maintain the constant injection rate. However,
in the case of highly depleted hydrocarbon storage sites, where
initial injection is in gas phase, there may actually be a reduction in
the number of wells required for continuous injection. This is due to
the increased density of the CO2 as it moves from gaseous to super
critical ‘dense’ phase. As a result, the design of a single type well
is challenging for CO2 injection due to the changing nature of the
injected fluid and the reservoir response.
Metallurgy of the well is greatly impacted by impurities in the CO2
stream. High levels of dehydration, typically less than 100 - 200 ppm H2O
can allow standard carbon steel tubulars to be used, depending on the
operating conditions except perhaps for those exposed to the reservoir.
Summary
As illustrated by assignment examples above, the scope of the
production technologist is broad. While they may specialise in
one or two areas, they will have a wide understanding of the
issues surrounding reservoir engineering, drilling, completion and
production. This knowledge, when applied holistically, can aid in
operational excellence, providing cost effective solutions that can
improve production efficiencies across the life of the field.

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COUNTERING
THE CHALLENGES
OF SCALE
MANAGEMENT
Gavin Forbes, Intertek, UK, examines the obstacles
facing modern day scale management in oil wells.
S
cale management in oil wells is a challenge with which all operators
will be familiar. It is a long-standing issue within the industry and one
which has become increasingly complex over the years.
When North Sea oil and gas production commenced in the 1970s, most
fields were designed with wells located in the topsides of assets, making it
relatively easy and cost-effective to monitor and prevent scale occurring. In
the last 20 years, there has been a shift towards subsea well completions.
Subsea fields are tied back to existing platform infrastructures
or FPSO vessels via a manifold or flowline, as this makes oil and gas
production more economically viable. The production fluid from each well
tends to be commingled into a single flowline making it more difficult to
monitor each individual well for changes.
As oilfield technology has evolved, more and more HPHT fields are
being developed. These fields can present new challenges, such as very
high salinity brines, exotic scales and compatibility issues.
Downhole scaling removal and mitigation
Oil and gas wells produce brines containing dissolved salts which can
form deposits of inorganic scales internally. These scales can build up
on perforations, casing, production tubulars, valves, pumps, downhole
completion equipment and throughout the production system – from
pipelines to produced water treatment processes. This is comparable to the
scale found in a domestic kettle, but in far greater amounts. If left untreated
it can prove to be extremely costly as it will impair production, eventually
requiring a workover or even abandonment of the well.
There are normally two options for managing the problem; remove
the scale and/or inhibit the scale either by downhole injection or reservoir
placement of scale inhibitor, i.e. scale inhibitor squeezing. Mechanical
techniques such as milling and chemical solutions (acid and chelant
scale dissolvers) can remove scale from tubing, flowline, valving and surface
equipment. These methods are extremely expensive for subsea wells
as hiring a diving support vessel to enable the work to take place costs
hundreds of thousands per day.
Scale inhibitor squeeze is the most common solution for preventing
the recurrence of scale. Typically a 10 - 20% solution of scale inhibitor
chemicals in seawater is pumped down the tubing of the well and flushed
out into the formation, where it will either be absorbed by or precipitate
on to the rock. The treatment is left to soak for six to 12 hours, after which
the well is opened up and the scale inhibitor slowly leeched back into the
water flow. It is then produced through the perforations and through the
tubing, effectively protecting the whole completion from scale build-up.
The treatments can be designed to last anything between three to
| 51
24 months. A re-squeeze is scheduled when the well is expected to drop
below its minimum inhibitor concentration level, which is determined from
a laboratory test.
Types of oilfield scale
The most common oilfield scales found are calcium carbonate,
barium sulfate, strontium sulfate and calcium sulfate.
Calcium carbonate is formed as a result of a self-scaling process. The
main mechanism for its formation is the loss of dissolved carbon dioxide
from the water phase as pressure drops. This reduces carbonic acid,
leading to an increase in pH and a decrease in the solubility of the
calcium carbonate. Calcium carbonate is easily removed by the addition of
corrosion-inhibited mild acids such as acetic or formic acids.
Figure 1. Pipe damaged by scale.
Figure 2. The brine reservoir purged with a CO2 gas mix after the
addition of iron (II).
52 | Oilfield Technology November 2015
Sulfate scales generally precipitate when two incompatible waters mix,
although it is not uncommon for cases of self-scaling barium sulfate to exist.
As it is available in plentiful supply, seawater is often injected into offshore
reservoirs for pressure maintenance and voidage replacement. Seawater
is rich in sulfate; formation waters commonly contain levels of barium,
strontium and calcium. Mixing these waters results in sulfate deposition,
with barium sulfate being the least soluble of the three.
Wells have been known to scale up with formation water barium levels
as low as 15 mg/l. The solubility of barium and strontium sulfate increases
with rising temperatures, while solubility of calcium sulfate decreases. If
mixing happens within the reservoir away from a vertical wellbore, there
will generally be little impact on the production of hydrocarbons. Mixing
beside or inside the wellbore will have a significant impact on production.
Sulfate scales are harder solids than calcium carbonate and are notoriously
difficult to remove, both chemical and mechanical methods can be
deployed depending on the location of the scale and economic factors.
Halite (sodium chloride), zinc sulfide and lead sulfide are known as
exotic scales. All three of these scales tend to be found in HPHT wells which
typically also have very high levels of total dissolved solids. Halite can be
formed when there is a decrease in temperature and evaporation of water
as halite solubility decreases with falling temperatures. Mitigation methods
for halite scale tend to be more basic, with downhole wash water being an
option at the design stage.
Surveillance
The production chemist’s role is to ensure that produced water from the
individual wells or the flowline/riser is sampled, stabilised and analysed
correctly so they have the appropriate data to make an accurate scaling
assessment.
The analysis and stabilisation techniques currently used have some
pitfalls and chemists have differing views on how to manage them. For
example, if the sample is not stabilised correctly, ions can precipitate, giving
inaccurate levels from the water analysis. Air ingress will oxidise dissolved
iron to form the insoluble ferric hydroxide and H+ ions, which will lower the
pH of the sample. Also, analysis of the total alkalinity by the acid titration
method, normally done at-site, can give an artificially high result if there
are organic acids present in the sample. To avoid these uncertainties, we
recommend to clients that three subsamples of the original sample, all
stabilised differently at site, are sent onshore to the lab.
Once the chemist is satisfied with the water chemistry data they
need to assess the water for signs of active scaling, residual scale inhibitor
and seawater breakthrough (from an individual well if the reservoir is
water-flooded). The typical technique is to check for drops in barium,
strontium, calcium and sulfate concentrations, along with increases in all
these ions once a well has been squeezed. The seawater breakthrough
calculation can be more complicated in some reservoirs as there are
so many variables and ion exchanges.1 The chloride ion concentration
is generally a good indication as it is not affected by exchanges or
precipitation like other ions.
Scale predictions
As an independent consultancy, the most common requests for scale
modelling received by Intertek are ‘health check’ style reviews to provide
assurance that clients’ current approaches to scale inhibition are correct.
Alternatively, the company is also requested to correct these approaches if
modelling results are more or less severe than expected.
A challenge to overcome is the view that scale modelling requires only
simple water chemistry, along with temperature and pressure data, to
conduct. In fact, this data will only create a very basic model and the results
will be applicable to sulfate scales alone, as these are not dependent on
in-situ pH. A comprehensive scale model, and crucially one that accurately
models calcium carbonate precipitation, requires a full description of the
well stream, including the flow rate of oil, gas and water, under defined
conditions and detailed water and hydrocarbon composition.
In addition, basic water chemistry data can often contain gaps
or fundamental errors, either from poor sampling practices or a
misrepresentation of certain analytical data. With the inception of
sophisticated scale models capable of complex phase behaviour
calculations, it is possible to develop a rigorous scale model to build a scale
management philosophy from reservoir to produced water disposal.
Comingled flow
Assessing wells forming part of a subsea tieback is difficult, as just one
water chemistry analysis is obtained per flowline and the flowline can
have a comingled flow from up to six wells. Some fields have the luxury
Figure 3. Scale 2 - Arrangement for anaerobic static scale inhibitor jar
tests with brine containing iron (II) ions .
Figure 4. Anaerobic brine dispenser with three way valve.
54 | Oilfield Technology November 2015
of a test flowline, which one well can be routed to at a time and through
which samples can be obtained.
In a comingled situation, if a well has been squeezed and
residual scale inhibitor needs to be determined, it is hard to establish
when the well will require re-squeezing. As a squeeze treatment
is designed to protect a known volume of water production, the
simplest way is to base the re-squeeze date on the cumulative water
production and set a re-squeeze trigger volume. There are also
new advances in technology which enable the operator to squeeze
with the same scale inhibitor chemistry that has altered tags for
detection.2 However, as dilution occurs from comingled flow water,
production rates from each well need to be considered to ascertain
a dilution factor. The dilution creates another difficulty to overcome,
as there are analytical limits to scale inhibitor detection using
inductively coupled plasma (ICP) spectrophotometry, typically down
to 1 ppm. To get around this, new analytical methods have been
discovered that enable the scale inhibitor to be detectable down to
below 1 ppm.3
High-salinity formation waters
Oilfields producing formation waters with very high salinity are common
in regions such as North Africa4,5 and are becoming more prevalent with
the increase of HPHT fields. Problems typically encountered with high
salinity brines are:
ÌÌ Precipitation of halite and sulfide ‘exotic’ scales.
ÌÌ Scale inhibitor ineffectiveness due to incompatibilities with the
high levels of calcium and iron present.
ÌÌ Difficulties with corrosion inhibitor partitioning into the brine phase.
ÌÌ General incompatibilities with other process chemicals.
The majority of these issues are identified when fields are in their
development phase and mitigations can be put in place in time for
production. The injection of a wash water downhole or at the wellhead
can remove any halite deposits and dilute the brine so that the corrosion
inhibitor will partition to the brine phase. However, there are limited scale
inhibitor chemistries available on the market that will prevent sulfide
scales forming and work with high levels of dissolved iron present.
Conclusion
As well as advances in technology for scale inhibitor chemistry, research
and development is underway to develop new chemistries that will
work in these brines and conditions. Intertek Production and Integrity
Assurance, has developed an in-house method for evaluating scale
inhibitor performance in high-salinity/high-iron content brines,4,5 which
provides more tailored solutions for operators.
As the needs of the oil and gas industry change and new
technologies are introduced, the challenges for issues like scale
management also shift. Technologies need to be developed to keep
up with these problems and although those discussed here are in their
early stages, they represent a significant step towards tackling scale
management challenges.
References
1. Webb, P. and Kuhn,O., Shell, ‘Enhanced Scale Management through the
Application of Inorganic Geochemistry and Statistics’, SPE 87548.
2. Poynton, N., Leontieff,.A, Molliet, A. and Cook, S., Baker Hughes; Tiovonen, S.,
Kemira, ‘Development of a New Tagged Polymeric Scale Inhibitor with Accurate
Low-Level Residual Inhibitor Detection, For Squeeze Applications’, SPE 155187.
3. Thomson, A., Heath,. S and Juliussen.,B, Champion Technologies; Gundersen, T.,
Andresen, A., Dahlgren, P., Vitas, ‘Emerging 4th Generation Analytical Technology
for the Individual Analysis of Multiple Families of Co-mingled Scale Inhibitors in
Deepwater Wells’, SPE 155171.
4. Stott, J. and Crossland, A., CAPCIS Ltd, ‘Scale Inhibition of High Iron Content
Brines from North Africa’, Geilo Scale Paper, (2006).
5. Stott, J. and El Shaari, Y., Intertek-CAPCIS Ltd, ‘Complexities and Pitfalls of Scale
Inhibitor Evaluation: Case History Illustrations from North African Fields’, TOG
Scale Paper, (2010).
 RICHARD JACKSON, 3M OIL & GAS, UK, EXPLAINS HOW NEW CERAMIC
TECHNOLOGY IS HELPING TO ACHIEVE A LEVEL OF SAND CONTROL
THAT ENABLES OPERATORS TO FULLY EXPLOIT THEIR ASSETS.
T
he current low oil price has posed a significant biggest
challenge and has impacted on the global energy landscape.
While the fall in prices has resulted in lower domestic
fuel prices, the effect on oil producers has been somewhat less
attractive. Some independent operators are already struggling with
the economic burden, and even global operators are under intense
pressure to reduce investment in new projects and generate a greater
return from their existing assets. With some estimates suggesting that
oil prices will remain low for the foreseeable future, this is a scenario
that demands immediate attention.
Experience tends to suggest that when confronted with difficult
conditions such as this, oil producers can be tempted to focus their
operations on their core competence – conventional oil recovery.
This is particularly true of the larger national and international oil
companies who still need to fulfill production quotas and return
revenues to satisfy their shareholders and governments.
| 55

Figure 1. Sand is a constant presence in many drilling and extraction operations, and for many field operators it represents a
constant, and potentially costly, headache.
So how can these operators limit risk and maintain their production
revenues? One solution is to concentrate on well intervention activities
and unlock the potential that exists within their current well stock, but
unfortunately, this is where the subject of sand control raises its head.
Sand is a constant presence in many drilling and extraction operations,
and for many field operators it represents a constant, and potentially
costly, headache. Controlling the levels of sand in a well stream is essential
if the field operator is going to minimise the damage that it can cause
– both by abrasion and by increasing the operating cost of maintaining
hydrocarbon export quality.
Traditionally, operators have used conventional metal screens
at the sand face to filter out sand or proppant and ensure productive
hydrocarbon rates. This solution can certainly be effective in many
applications, but it is not without its drawbacks. Where potentially high
mobile sand or proppant levels are present in a well, rapid erosion from
abrasion can progressively limit the effectiveness of a metal screen, and
also shorten its operating life. As the metallic sand screens lose their
ability to control sand and proppant at the sand face, greater levels of
erosion, both downhole and throughout the production train, lead to
increasing incidents of maintenance and downtime, along with the
resulting financial penalties that this brings.
Damage to production equipment – both downhole and on the
surface – can often be significant and expensive to repair. If the situation
is not monitored and managed effectively, it can lead to a gradual
degradation of the well itself. Falling yields, increasing costs and perhaps
even an eventual well shutdown can then follow.
Fortunately, operators faced with this scenario have a more effective
and practical solution to turn to, whereby the conventional metal screens
are replaced by advanced ceramic alternatives. Offering increased levels
of performance, longevity and reliability, these ceramic sand screen
systems are now being adopted by operators around the world.
Engineered advanced technical ceramics
Ceramics have been used in industrial and petroleum applications,
both downhole and topside, for many years. With a leading ceramics
manufacturer devoting considerable resources to development,
design and engineering processes this has led to today’s advanced
56 | Oilfield Technology November 2015
ceramic materials. These
can now be manufactured
and integrated to
withstand the rigours
of even the most
demanding applications,
including high‑pressure,
high‑temperature oil and
gas wells.
The effectiveness
of engineered ceramic
technology has already
been proven in many
different industrial sectors.
Defence, automotive
manufacturing, nuclear
and chemical production
are just some of the areas
where the benefits of
ceramic technology have
been used, in applications
including seal and bearing
duties.
The key to the growing
success of today’s new
ceramic sand screen
systems lies in the hardness of the material they are made from. The harder
a material is, the more resistant it will be to the abrasive effects of the sand
or proppant, and with a degree of hardness that is almost the same as that
of diamond, the advanced and highly engineered ceramics allow us to
manufacture screens that can provide significant improvements in terms
of operating life and effective performance. Some of today’s engineered
ceramic materials have a hardness that is 20 times that of metal. Indeed, the
widely recognised Knoop hardness test has shown that current materials
such as stainless steel – and even metals that are harder – can be far
outperformed by modern silicon carbide ceramics.
Filtration performance
Ceramic technology based on a ‘wire wrap’ philosophy of basic design
has allowed the creation of new screening solutions that deliver both
impressive filtration performance and greatly improved protection
against the damaging effects of the large volumes of sand or proppant
produced in a typical challenged well environment. Ceramic sand screen
systems show little or no evidence of abrasion damage when subjected
to challenging reservoir conditions, and their performance can outstrip
even the most advanced metallic alternative by a considerable margin. In
short, they represent a major step change in tackling this problem. Even
the temperatures encountered in a typical drilling operation pose no
problem for ceramic screens. They can be engineered to withstand extreme
thermal challenges, and also provide great resistance to attack from such
corrosion‑inducing substances as hydrogen sulfide, hot sulfuric acid or
chlorides.
Another advantage of modern ceramic materials is the high resistance
to collapse they can provide, which can give them twice the stiffness of
many metals. This is of particular benefit when they are required to resist
the great pressures and stresses found in a typical drilling and extraction
operation, and it gives a good indication of the high levels of reliability
they can deliver in a sand screen application.
Enhanced sand control
The type of single‑layer high laminar flowscreen systems that ceramic
screens can offer represent a real breakthrough in sand control that is
especially well-suited to demanding conditions. This can bring particular
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Figure 2. Combining ceramic technology with existing construction
principles enables the creation of new screening solutions that offer
greatly improved protection against the damaging effects of sand.
Figure 3. The design of ceramic through‑tubing sand screens can be
adapted to suit different well requirements.
benefits to reservoirs where severe abrasion and heavy chemical
attack threaten the functionality of critical parts and components, or in
unconsolidated reservoirs where the sand grains are only loosely packed
together.
Ceramic sand screen systems can be designed for pre‑well
construction projects, but it is worth noting that they are equally suited to
post‑well operations. They can be used for re‑optimising and unlocking
hydrocarbon potential within existing low‑ or non‑producing well stock,
either at workover or low‑cost intervention where a well is suffering from
sand control problems induced by existing failed metallic screens. This is
one of the key benefits of ceramic sand screen systems as it allows them
to unlock – economically – new opportunities from individual wells, and
even from whole reservoirs that might otherwise have been abandoned.
Various design options are available with ceramic screen systems. They
can be made in stand‑alone, high performance modules that are well‑suited
to well control in unconsolidated formations, and where proppant flowback
poses a risk. Compared to conventional metal screens they have excellent
thermal properties, including good thermal resistance and co‑efficient of
thermal elongation. They can have a modular construction which provides
greater flexibility over the length and facilitates easy operational planning,
especially as they can usually be deployed via wireline, slickline, coiled
tubing or by a conventional rig system.
Ceramic through‑tubing sand screen designs are also available and
provide superior corrosion resistance and thermal properties when
compared to metal screens. These can be used in a variety of applications
ranging from enhanced oil recovery (EOR) in mature fields, through to
well interventions where conventional metallic sand control systems have
failed. Again, they can be deployed by various means through the existing
production tubing, and they offer a quick and long‑lasting method of
re‑establishing sand‑free production.
58 | Oilfield Technology November 2015
Whatever design option is chosen, it will usually offer a high degree
of adaptability to suit different requirements for well bore diameters,
declination, sand grain or proppant size, distribution, modular length and
flow‑through area. This makes ceramic screens ideal for use in standard
workover operations and completions, and their ability to operate beyond
the limits of state‑of‑the‑art metallic sand screens allows them to offer a
whole new approach to sand control and better maximise hydrocarbon
recovery.
Intelligent configuration
It is interesting to examine how ceramic sand screen systems are
actually constructed. A typical design will usually be based on a stack of
ceramic rings placed between an upper and a lower coupling element,
and mounted on a tubular support such as a perforated base pipe. The
rings are made from sintered silicon carbide which provides excellent
resistance to abrasion, corrosion and heat, plus high degrees of hardness
and stiffness, and a low density. The actual geometry of the rings, and the
profile of the gaps between them, can be varied to suit virtually any sand
or other particle size, to accommodate well geometry and environment.
The stack of rings is also designed and integrated to combine
qualified slot sizing stability with high system flexing ability. This enables
successful running in high deviated well bores, thus contributing to the
screen’s overall reliability and longevity. Further protection is provided by
an additional metallic shroud that fits around the entire assembly. Each
screen can be manufactured as a self‑supporting structure, or can have an
internal perforated tube added that provides additional support.
These ring stacks incorporate v‑shaped ‘keystone’ gaps which
improve flow characteristics and allow bespoke screens to be designed
to suit individual well requirements. This ensures that any pressure loss
across the screen is negligible, enabling optimisation of through flow.
The oil and gas industry has traditionally taken a conservative
approach to the adoption of new technologies, such as ceramic sand
screen systems. Some new developments take many years to achieve
widespread acceptance. However, evidence from customers who are using
these screens in the field is positive and that can only help accelerate the
speed with which they are adopted. The case of one particular major gas
exploration and production company is a case in point.
Proven in practice
At an onshore gas production facility in Bolivia, the operator was using
traditional metallic screens to manage sand issues. Unfortunately, these
screens were failing after just two months, and the complex nature of the
well’s workover activity, as well as the remote location of the site, meant
that replacing them was a difficult process. The solution they chose was
to install ceramic sand screen systems provided by 3M, and the results
were dramatic. Production rates improved by 25%, helping to generate
an extra US$237 000 of revenue per month. The cost of the ceramic sand
screens was recovered in just 17 days, and at the time of writing, they
had remained operational for 17 times longer than the premium metallic
screens that had been used previously.
The benefits of this solution are not restricted to onshore applications
either. In 2009, sand control issues prompted a leading North Sea operator
to shut down a gas production well that it had operated for some
six years. In 2011, the operator was looking to recover more gas from
the well, and installed 3M ceramic through‑tubing sand screens.
When production recommenced it was sand‑free, and the cost of this
intervention was recovered in just one week. After 46 months of further
production, the well is still producing and it has so far delivered a
US$11 million return on investment.
This new technology offers a proven way to combat sand control
problems, and as these examples show, it has significant potential for
helping oil producers address some of the financial challenges they face in
today’s oil market.
D U S T
IN THE

W I N D

Steve Hiner and Charlie Brake,

CLARCOR Industrial Air, UK, examine
dust filtration solutions used to protect
gas turbines.

G
as turbines are used in all types of environments
throughout the world – some much more challenging
than others. It is well accepted that an efficient filtration
system is needed to protect the performance of the turbine and
avoid unnecessary shut downs or expensive repairs; but how do
operators know what is best for their particular application and
how can they be sure that changing environmental conditions do
not end up costing them a great deal of money?
Seasonal winds, such as the Harmattan that blows across
the West African region, carry dust that can seriously impact a
turbine’s performance. The winds are unpredictable. They can
arrive earlier or later from year to year; last for varying amounts of
time, and have differing levels of severity in terms of the amount
of dust they carry. Compared with sand storms in regions such
as the Middle East, Harmattan dust is much finer and requires

| 59
different filtration strategies. When the Harmattan blows
across coastal locations, further consideration must be given to
determine the best filtration solution to handle a mixture of fine
dust, salt and moisture – a combination that can quickly block
filters and devastate the performance of a turbine installation.
The Harmattan
In Africa, the Harmattan is as much a season as it is a wind
because of the impact it has on the environment. With the intense
heat of the Sahara desert, the wind can lift dust particles as high
as 6 km into the air and carry them for thousands of kilometres. In
some areas of West Africa the wind can be so heavily charged with
Figure 1. Satellite image of a massive Saharan dust storm blowing westward
off Northwest Africa shows how powerful the winds are and how far out into the
ocean the dust is carried. (Image credit: NASA).
Figure 2. The impact of both dust and moisture from fog on the operations of
this coastal site led to frequent gas turbine shutdowns. They chose filters from
CLARCOR Industrial Air as their filtration solution to help extend gas turbine
availability and provide more reliable production capabilities.
60 | Oilfield Technology November 2015
dust that visibility may be greatly reduced for a considerable
period of time. Significant quantities of the dust can also
be carried for many hundreds of kilometres out over the
Atlantic Ocean where it can also settle on offshore vessels
and structures.
Types of dust
Dust is present all over the world but in some areas high
concentrations present a real risk to the performance of
gas turbine installations. Whether the dust comes from a
quarry, agricultural land, industrial/construction area, dry
lakebed or area of low rainfall; long before it becomes a
visible hazard the dust can have detrimental effects on a
turbine’s performance. The design of an effective filtration
system needs to consider the risk dust presents in terms
of concentration, particle size and type of dust along with
the influence of other environmental factors to ensure it
protects the turbine from damage.
A measure of dust concentration on its own may not
give the full picture. A high concentration level may be
attributed to fewer large dust particles, which are more
easily captured using coarse filter media. If, however, the
concentration is due to many more small particles, as may
be seen with seasonal winds, this requires a much higher
level of filtration. It should be noted that the further away a
location is from the source of a dust storm, the more likely a
high dust concentration will be formed of a greater number
of smaller particles.
The need for protection from dust
Dust can cause numerous issues for an installation in terms
of both damage to machinery and degradation of turbine
performance. Large dust particles of sizes greater than five
microns can cause erosion, affect turbine efficiency, and, if
the erosion causes parts in the front end of the equipment to
break, these may travel through and cause severe machine
damage. Finer dust can stick to parts of the machine and
change operating aerodynamics. This, in turn, reduces
turbine efficiency and increases operational costs.
Whether from mist, fog or rainfall; if moisture is present
in the atmosphere, it combines with high levels of dust
to form mud on the inlet filters – increasing the system
pressure loss and potentially tripping the turbine. If,
however, moisture is allowed to wash through to prevent
mud from forming, it will carry contaminants with it and
cause increased fouling, damage and corrosion.
Operators must also consider the impact of salt. When
there is moisture present, salt can migrate through a filter in
liquid form. This can create a sticky layer on the compressor
blades to which fine dust adheres and the effects of fouling
increase. Salt will also combine with fuel in hotter areas
of the turbine to form sodium sulfate which can react with
turbine metal to cause accelerated corrosion that can have
devastating effects on the machine.
Dealing with dust
No filter is 100% efficient, so some dust will always make
its way to the turbine. Whatever the application, however,
contaminants such as sand and salt can have a huge impact
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 on turbine output, heat rate and system availability – adding
significant operating and maintenance costs as well as the cost
of lost production. There are often two, three or four stages
of filtration to deal with various aspects of an environment.
The front stage is normally a crude weather protector and the
second stage is typically a low efficiency pre-filtration. It is the
final stages of the system that handle finer particles and provide
the highest filtration efficiencies.
Static filters are suitable for low to average dust
concentrations and a pre-filtration stage can handle large dust
particles. To keep operational efficiency at acceptable levels,
however, self-cleaning filters are more commonly used when
handling large amounts of dust particles, with high efficiency
rated filters required to be effective against the fine dust as
carried by winds such as the Harmattan. A multi-stage pulse
system with high dust efficiency F9 or EPA/HEPA filters is also a
suitable option. If the dust is ‘sticky’, the use of longlife filters in
an oversized filter house which accommodates even more pulse
filters can provide a good return on investment.
In areas of high moisture, the installation of coalescers
is recommended for self-cleaning pulse systems to work
efficiently. These help stop contaminants from swelling and
blocking the filter system or passing into the turbine in their
liquid phase. The challenge is that coalescers require significant
additional maintenance to keep them clean and functioning
efficiently. To combat this increased overhead, a coalescer (the
TS1000) is able to remove moisture while allowing sand and dust
to pass through. This provides much longer periods between
clogging resulting in significantly less downtime for cleaning
and maintenance.
Efficiently handling high levels of moisture is vital if the
filtration system is to continue to work effectively. The use of
hydrophobic and advanced fibre coated filters prevents sticky
contaminants from getting to the blades which would otherwise
then promote fouling. This results in significantly improved heat
rate and reduced power output losses between turbine washes.
In coastal installations, the additional threat of salt needs to
be assessed and its removal considered in the filter design.
Understanding the cost impact of taking the turbine offline
should be assessed against any increased filtration costs – but
a more effective solution does not always mean significantly
higher investment.
Determining which filter is best
Industry standards do not cover testing of filters for dusty winds
and sand storms but certain oil and gas operators have defined
their own test methods. Some filter manufacturers use these
tests to enable them to develop solutions to better protect
machinery in dusty environments. Filter solutions have been
assessed by their impact on real-world gas turbine installations
and, although no one filter solution is suitable for all installation
environments, modern filtration technology can deliver
significant benefit to operators.
Filter standards and many filters available today have
been designed for markets such as HVAC and pharmaceutical.
Membrane filters for example, offer great efficiencies but they do
not handle moisture and the hydrocarbon contaminants that are
present in oil applications without being significantly affected.
Membrane filters can plug quickly and react unpredictably
62 | Oilfield Technology November 2015
which leads to high pressure spikes and unplanned shutdowns.
Glass-fibre media with added hydrophobic properties and
advanced fibre coatings offer a more robust solution in this
application, which make them tolerant to moisture and
hydrocarbon fouling. With a thicker filtration layer, moisture
does not quickly block the filter and sudden changes in
performance are much less likely to occur.
The construction of a filter also needs to be suitable for
the environment where it will be installed. If easily damaged,
contaminants will bypass the media, making the filter’s
efficiency rating academic. Space for the filter house is another
consideration for operators, especially when looking to retrofit
a filter solution. Using filters with a higher density of media
will help if space is restricted but, if the number of filtration
stages have to be limited, the selection of media type is critical
particularly where moisture and salt are present.
Experience has shown that filters with the same efficiency
rating on paper may give very different performances in harsh
operating environments. While generic standards offer some
guideline as to what will work best with fine dust, the wider
performance of the filter in relation to operating conditions
should be considered and this is best based upon the
performance of the turbine throughout a filter’s life. Assessing
the performance of gas turbines in varied geographical locations
and conditions, media types, and filter constructions leads
to the development of better filtration solutions and reduced
ongoing costs.
Summary
Despite being seasonal, high levels of dust can mean an
increased rate of compressor fouling, turbine degradation
and a greater need for downtime to off-line wash if a filter
system is designed for lower dust environments. Winds such
as the Harmattan carry fine dust across hundreds of miles. To
effectively remove this, high efficiency F9 or EPA/HEPA filters will
be needed but operators must also understand the impact of
other environmental factors to maximise operational efficiency
while optimising system availability. The return on investment of
higher efficiency filter systems may make sound business sense.
Some modern filter media have been specifically designed
with detailed understanding of real-world operating conditions
in the challenging environments that are often seen in oil and
gas applications. Although on paper, they may offer the same
efficiency rating as other media; the latest media technology
handles moisture better, is easier to maintain, can give lower
operating differential pressures and provides sustained
performance for greater turbine protection. Understanding what
is available and the best solution for specific site conditions can
save operators considerable time and cost throughout a filter
system lifetime.
For both new and existing turbine installations, the
suitability of inlet filter options to the prevailing and seasonal
conditions should be carefully reviewed. Filter manufacturers
with OEM gas turbine experience can provide expertise
on modern advances in filtration solutions and the latest
technology available. Since no one filter solution fits all needs,
these manufacturers can design bespoke solutions for an
application to help ensure turbines are well protected and,
ultimately, that profitability is maximised.
Colman de Jong and Brian Todd,
Dresser-Rand within Siemens Power
and Gas, review compression solutions for
an economically challenged oil market.
CONSIDERING
COMPRESSION
F
acing one of the worst downturns in more than 45 years, the oil
industry is currently selling oil between US$40 and US$50/bbl and
many analysts predict oil prices to stay low in 2016.
Naturally the downturn has caused oil producers to reduce capital
expenditures (Capex) by postponing major oil projects and cutting
back on exploration. However, in order to remain viable and keep oil
production from falling, oil companies cannot cut all Capex expenses, so
many projects continue to move forward.
Due to the economy, oil producers have changed the scope of these
projects. Platforms built are now smaller, significantly reducing the space
available to place important turbomachinery such as compressors and
gas turbines.
Additionally, oil companies invested in the growing FPSO market
are now utilising smaller ships than in the past. A mid-sized FPSO unit is
estimated to cost between US$400 million to US$500 million, while the
Capex for larger units could be as high as US$2 billion.
In addition to the smaller footprint of platforms and vessels, oil
producers making capital investments are looking for ways to reduce
their operating expenditures (Opex). In most cases oil companies
are looking for new technologies that can increase efficiency, lower
downtime caused by maintenance, and reduce cycle times to meet
tighter and more demanding schedules.
In order to achieve the desired Opex reduction goals, all capital
projects depend first on the objectives the operator wishes to
achieve. This means that there is no bad decision when choosing a
compression solution complete with the associated drivers. The best
compressor/driver solution depends entirely on the situation and
the project objectives. The best custom solution, in most cases, will
optimise the economic return.
When it comes to selecting the right compressor/driver technology
for a project, there are a number of specific technical factors to consider,
such as space, weight, reliability, maintainability, ship movement, nozzle
loads and more.
In addition, the drivers’ power level and compressor efficiency are
two technical characteristics that will also impact the project’s economic
return. The efficiency of the turbo compressor used has a direct impact on
the production capacity when there is a fixed amount of power available.
The spare power available from one driver compared to another could be
used to optimise a solution.
Squeezed for footprint
In 2013, Petroleos Mexicanos (PEMEX) needed a compression and
turbine driver solution that would fit in a very tight space on its existing
Abkatun-D Platform located in the Tabasco Field of the Bay of Campeche.
| 63
 Due to recent changes in Mexican environmental regulations, the project also required
PEMEX to reduce and eventually eliminate gas flaring on its offshore platforms. In order to
comply with this requirement, it was determined that additional compression capacity was
needed on the platform to move the gas to a downstream collection point.
PEMEX turned to Dresser-Rand which in turn recommended using two single-lift
compression trains, each containing two DATUM® compressors driven by VECTRA®
Figure 1. Delivery of CO2 and natural gas mixture to the CO2 membrane.
Figure 2. Dresser-Rand Technology eliminates CO2 pumping system.
Figure 3. Compression technology with Voith Vorecon for variable speed.
64 | Oilfield Technology November 2015
power turbines. The compressor unit in low pressure service
on each module is configured as a double-flow machine and
provides the inlet flow capacity of a compressor much larger
in size.
In high pressure service on each module, the compressors
incorporate rotary separation technology within the
compressor body to remove liquids from the incoming gas
stream, eliminating the need for conventional external
separation equipment such as scrubbers.
The DATUM I compressor model is part of the DATUM
integrated compression system (ICS) product line, which
can integrate rotary separator technology, together with
a high-speed, close-coupled, gas-cooled motor, magnetic
bearing rotor system, dedicated unit controls, process coolers,
valves, instrumentation, and interconnecting piping.
The ICS concept significantly reduces the footprint,
height and weight of the overall compression module when
compared to conventionally packaged equipment, associated
flanged piping joints and the internal volumes containing the
gas, which minimises the gas inventories within the process
equipment, and reduces potential leak locations, resulting in
HSE advantages.
Strong results under extreme pressure
When Petrobras’ exploration projects yielded strong potential
oil deposits offshore in the pre-salt fields, there were some
significant challenges that would need to be overcome in order
to produce oil from the fields effectively and efficiently.
The greatest challenge of the pre-salt fields was the need
to compress gases that are almost 65% heavier than typical
natural gas blends.
In order to achieve this goal, Petrobras turned to
Dresser-Rand to develop centrifugal compressor technology
that could achieve the needed discharge pressure to effectively
compress these heavy gases and eventually be installed on
three different FPSO vessels.
The company developed a pilot project which involved
the mechanical and aerodynamic testing of the high-pressure
CO2 compressors for Petrobras’ FPSOs in the Tupi Field. The
tests were held on the Cidade de Angra dos Reis FPSO vessel
(Tupi I), the Cidade de São Paulo FPSO (Tupi II), and the
Cidade de Paraty FPSO vessel (Tupi III).
The process for the testing at Tupi I began with the mixture
of CO2 and natural gas in the Main A compressors where it is
compressed and delivered to the CO2 membrane (Figure 1). At
this point, CO2 is separated from the gas stream and directed
to the CO2 compressor and compressed from very low pressure
to 310 bar. The CO2 is then cooled and pumped from 310 bar to
550 bar and injected back into the ground.
Conversely, the CO2 free natural gas is transported to the
export B compressors where it is compressed to 250 bar and
either exported onshore for pipeline service and/or further
compressed and re-injected back into the ground at 550 bar for
continued oil production.
This solution was unique in taking the discharge pressure
up to 310 bar instead of 250 bar, thereby reducing the required
number of CO2 pumps in the series from five to four. The
separation of CO2 from natural gas was one of Petrobras’
requirements for this particular FPSO.
The configuration of the testing at Tupi II used a similar
process as the test at Tupi I with a mixture of natural gas and
CO2 (Figure 2). The mixture enters the Main A compressors,
where again, the gas is compressed and sent to the CO2
membrane where the CO2 is separated from the gas stream.
The CO2 free natural gas is transmitted to the Export B
compressors, compressed to 250 bar and either exported
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onshore for pipeline service and/or further compressed and re-injected back
into the ground at 550 bar by the combined CO2 and natural gas injection
compressors.
The now separated CO2 gas stream is sent from the CO2 membrane to
the CO2 compressor and compressed from very low pressure to 250 bar.
The CO2 is then transmitted to the combined CO2 and natural gas injection
compressors and compressed to 550 bar and re-injected back into the
ground.
What is unique about this arrangement is that there is only one set of
compressors. The combined CO2 and natural gas compressors compress
both natural gas and CO2 and combinations of both natural gas and CO2
to 550 bar for re-injection, eliminating the need for pumps. Additionally,
the constant speed motor drive motor for this application was process
controlled with suction throttle valves.
The Tupi III test was identical to the Tupi II test using a single set
of compressors for combined CO2 and natural gas injection instead of
a separate set of compressors and pumps (Figure 3). This particular
application used a variable speed drive with Voith Vorecon, and the process
was thus speed controlled.
The performance tests for the high pressure compressors for all three
test sites resulted in each compressor meeting or exceeding all aerodynamic
and mechanical requirements. Rotor dynamic stability was also measured
at full load conditions confirming that all stability criteria were achieved.
In addition, the Tupi III units achieved the highest pressure ever
recorded by a centrifugal compressor operating with a CO2 rich gas, and
the highest discharge gas density for any gas compressed by a centrifugal
compressor at 550 bar (7975 psi).
The result of the testing provided a proven option to replace the more
expensive CO2 pumping systems that were previously thought to be the
only feasible solution for high pressure CO2 re-injection applications. It also
removes one of the highest technology risks of all of the compression duties
typically found in upstream applications, whether offshore or onshore.
More importantly, it reduces Capex, footprint, weight, and operating
costs while increasing reliability by eliminating the need to install, operate
and maintain high-pressure injection pumping systems downstream of the
compression system.
This is especially significant given the burgeoning deepwater
production and CO2 compression markets that are envisioned over the
foreseeable future.
The company is in the process of completing 80 compressor skids for
eight Petrobras FPSO vessels.
Technology designed to reduce cycle time
Over the last 20 years, a large portion of global offshore oil exploration,
drilling and production has moved from relatively accessible shallow water
to increasingly deep and ultra-deep waters.
Significant investment in fields off the Brazilian and West African coasts
has driven demand for FPSOs and this is likely to continue to expand in the
next decade. South-East Asian projects will follow the same trend but with
lower oil production volumes in less deepwater.
Figure 4. Industrial RB211-GT30.
66 | Oilfield Technology November 2015
The FPSO has proven to be an efficient approach to offshore production
as it can be moved from the production location in case of storms, political
unrest, or an alternate commercial opportunity. The main power loads on
offshore installations are driven by electric motors, rather than directly by
gas turbines.
This reduces capital costs by allowing the power production to be
centralised in a smaller number of larger gas turbines driving AC generators.
It is a more reliable solution as industry standard is to install one more gas
turbine generator set than is required, thereby having spare available when
others are down for repair or planned maintenance.
Offshore project costs are increasing and schedules becoming
tighter. In order to compete in today’s oil and gas environment, operators
require suppliers to reduce cost and delivery time as well as maximise the
availability and reliability of their products.
To help reduce cycle time and meet these increasingly demanding
schedules, Siemens combined its resources with Dresser-Rand and
Rolls-Royce Energy and knowledge in aero-derivative gas turbines,
industrial turbines, steam turbines, packages, compressors and controls to
develop the Industrial RB211-GT30 (Figure 4).
The Industrial RB211-GT30 core drives a 2 pole generator in either 60 Hz
or 50 Hz service without the need for a gearbox. The package’s design is
30% smaller and lighter than its predecessor. The torque tube and 3-point
mount design was designed specifically for offshore duty. The fuel and lube
oil systems are all identical to its predecessor but are incorporated into the
base of the package.
The core gas turbine uses the same gas generator as the Industrial
RB211, currently in service. The Rolls-Royce RB211 gas generator has
over 35 million hours of service and over two million hours in industrial
applications. This gas generator is coupled with the power turbine from the
Rolls Royce MT-30 gas turbine unit used by the US Navy and British Royal
Navy. The power turbine is derived from Rolls Royce aero technology with
over 24 million hours of operating experience and over two million hours
experience in industrialised form.
Designed specifically for offshore power generation with features to
reduce Capex and Opex, the Industrial RB211-GT30 package is one of the
lightest in the industry weighing less than 150 t, thus reducing the cost of the
topside infrastructure required for installation.
Project schedule pressures and cost overrun risk due to delays are a key
concern of the industry.
The Industrial RB211-GT30 package’s modular construction reduces
build cycle time, allowing delivery to the module yard within 12 months of
an order.
On the operating cost side, several features offer advantages. Both
left and right handed engine removal offers flexibility of module design to
minimise operating cost and space. The gas turbine sits in a cradle and a rail
system that is built into the doors of the enclosure.
Once the doors are open to the horizontal position the entire turbine,
gas generator or power turbine can be removed or installed using this rail
system. The mechanical handling design also used on Industrial Trent 60
packages reduces gas turbine, gas generator or power turbine exchange
time significantly.
Auxiliary systems, such as lube oil and fuel system, are modular and
housed in the base of the package. All transmitters and indicators are
mounted on the exterior of the enclosure and all electrical connections are
pre-wired to junction boxes which are shipped in folded position. All of these
features were specifically designed to minimise installation/commissioning
time, maintenance expense and downtime while maximising availability.
The combined offerings of the three companies expanded choices for
customers in the marketplace that could help reduce Capex and Opex.
Conclusion
As low oil prices continue to be the way of life for oil companies, finding
ways to reduce Capex and Opex expenditures are key for future viability
and success. Increasingly, oil producers are looking for ways to reduce
footprint and cycle times on platforms and FPSO vessels. An investment in
compressor and driver technology could be one of the key ways to further
reduce Opex and Capex expenditures.
 Manton Townend, Air Energi, Singapore, explains how high costs and low

G
transparency makes navigating South Korea’s property market without local

A T I N
support a costly business.

AC COMM O D
P A T R I A T E S
E X

A
vailability may have improved in recent months, but those
responsible for securing suitable expat accommodation around
South Korea’s shipyards should not be lulled into a false sense of
security.
Home to three principle offshore shipbuilders - Samsung Heavy
Industries, Hyundai Heavy Industries, and Daewoo Shipbuilding & Marine
Engineering – South Korea is arguably the world centre for the fabrication
and construction of ships and offshore facilities. These shipyards are
responsible for constructing some of the world’s major floating liquefied
natural gas (FLNG) projects, and a boom in shipyard activity has cemented
South Korea’s position on the map for the oil and gas industry’s
international and expatriate workforce.
Despite challenging economic conditions, South Korea remains
host to some of the most significant projects currently being undertaken
by international oil companies (IOCs). Ichthys, Hebron, Moho Nord,
Point Thomson and Prelude are just some of the major projects currently
underway. These projects have stretched the experience – if not the
qualifications – of the local talent pool. Senior piping engineers, project
managers, and superintendents, preferably with experience in the
country’s shipyards, are still in high demand.
Supply and demand
For IOCs, the challenge of getting the right people to the right
place at the right time – and for the right price – is a familiar one.

| 67
The oil and gas industry has always depended on a highly qualified,
international and itinerant workforce. Everything from tax and
immigration status, to accommodation and related services, needs to be
arranged in a seamless manner.
The culture is welcoming, but substantially different to those in
other parts of Asia or western countries. So while the rewards of working
at the leading edge of the oil and gas industry are great, so too are the
demands. Although resourcing requirements vary according to project
type and phase, expatriates are typically contracted for between two and
three years depending on their role on a project.
But South Korea presents its own unique challenges when it comes
to housing staff and managing their domestic arrangements. In recent
years these challenges could be neatly summed up: shortage of supply.
The sheer numbers of people coming to the shipyards outweighed the
quantity of high-quality, western-style apartments that were available in
key locations. It can even be argued that the presence of capital-intensive
projects in the shipyards when high oil prices reduced the emphasis on
cost-reduction helped drive up the price of accommodation.
Housing construction currently underway will alleviate this problem
to some extent, with more accommodation becoming available by the
end of 2016. In addition, the oil-price driven cancellation or delay of
planned shipyard projects is making more units available than before.
Availability and suitability
Accommodation is more than a simple numbers game. Although the
unexpected availability of housing units may alleviate some of the
immediate pressures, it does not solve some of the more fundamental
housing difficulties.
The first of these is that staff cannot be housed just anywhere. Now
that supply is not necessarily a problem, IOCs may have the illusion of
choice. But it is essential that they make decisions for their people based
on complete information rather than opting for the first solution that
appears available.
There are certain parts of Ulsan or Geoje, for example, which are
better suited to young professionals with families, while others are
better for single professionals without dependents. The location of good
international schools is one factor, as there is a comparative shortage
of places when compared to Seoul, for example, or even other expat
‘hotspots’. Proximity to the yards is another factor, as this has a direct
impact on transport and logistics arrangements.
However, some of the more traditional regions of South Korea,
such as Okpo and Bangeojin, are experiencing significant change as
improvements to infrastructure get underway. New roads, tunnels
and bridges are making it easier for people to get around, thus further
alleviating some of the issues related to accommodation. Workers now
have the added option living outside the major hubs, and commuting to
the shipyards instead.
All of this means that there can still be long lead times when it comes
to securing accommodation. It is certainly not something that can be left
to the last minute in the hope that what is available will be suitable.
Contracts and services
While market conditions continue to remain flat and demand for
accommodation eases, landlords are beginning to reduce rental rates
and offer more flexible lease terms. For example, traditional two-year
contracts are being replaced by one-year or even shorter terms.
Naturally, this suits the IOCs as it gives them more flexibility and less
exposure to risk of penalties for early termination.
However, if availability has changed, then the lack of transparency
has not. The South Korean property market remains remarkably
opaque and unfamiliar to western businesses. IOCs increasingly want
to be sure about who they are contracted with, for how much, what
68 | Oilfield Technology November 2015
the specifications are, what services and maintenance contracts are
included, and what – exactly – they are getting for their money. That is
far from straightforward in South Korea. There are plenty of different
vendors, property agents, developers, service providers, representatives
and general middle men involved. Working out who is responsible for
a given block and who to enter a contract with to secure it can be a
labyrinthine process.
Then, of course, there are the services that may or may not come
as part of the package. Arranging a broadband and television service
at home can be daunting enough. Doing so in a country where the
market, the providers and the contractual norms are all unfamiliar has
the potential to add extra unnecessary cost. Relying on an agent may be
simpler, but the mark-up may not.
Naturally, this is not helped by a very real language barrier. In
contrast to other areas where similar numbers of international workers
are gathered, English and other European languages are not widely
spoken in South Korea’s port cities.
Finding alternatives
As a result, accommodating staff can still present a fairly major risk
to margins, just at the time when they are being squeezed by the
fall in wholesale oil prices. Many IOCs are attempting to address this
conundrum by introducing cost-cutting initiatives.
Some companies are now placing more single status workers, which
means that they can accommodate them in one location or housing
development. Housing single professionals in smaller, studio-style units
or obtaining discounts on volume are two ways significant savings can be
made. This also makes it more cost-effective for operators to transport
them to and from the shipyards via shuttle bus. However, securing access
to larger accommodation blocks that cater just for single workers or are
all in the same location, can be a challenge.
Equally, there are savings to be had on hotel expenses for IOCs who
have high numbers of short-term business visitors – if they know where
to go. But even these cost-saving measures may not deliver the savings
expected without local expertise. Take hotels: the easy option is to stay
at main hotels that are well known, but are not cheap as a result. On the
other hand, local knowledge opens up access to perfectly acceptable but
more cost-effective business hotels that are not necessarily found by an
English Google search.
The need for local expertise
Perhaps more than any other location, South Korea demands reliable,
professional and deeply knowledgeable on-the-ground support to
smooth the path through a complex local housing market. That support
also has to provide transparent services. Firms that go it alone or depend
on generalist service providers have found that they are getting badly
burned in an unfamiliar environment – particularly now the oil price has
exposed costs to greater scrutiny than ever.
This is why the majority of IOCs work closely with recruitment
partners from the outset of a project. The question of how to get people
there, how to accommodate and look after them, and who is really
responsible, should be a top priority – especially in a country such as
South Korea, where aspects such as meeting the needs of the expatriate
must be considered in detail.
The reality is that transparency and expertise at every stage of
the housing supply chain saves money. The price for exactly the same
accommodation in exactly the same building can vary by up to US$1000
per person per month, depending on the contract, who it is with, and
who arranged it. When that is multiplied by several hundred people, it
becomes a significant opportunity cost. With margins this tight, working
with specialists – and the right specialists at that – makes more sense
than ever.
 DANGERS OF
EXPOSURE
Michael Tzouvelekis, Dräger, highlights the increasing dangers of
exposure to hydrogen sulfide in the oil and gas industry.
T
he oil and gas industry faces increasing dangers of exposure
to hydrogen sulfide as the North Sea reaches maturity and
decomissioning work rises. As companies look for measures
to mitigate the threat, this article examines Dräger’s efforts to
improve awareness and training.
Oil and gas installations across the North Sea and beyond
produce enormous amounts of oil and gas each day, but producing
them now and in the future is not without risk.
In these locations, hydrogen sulfide, H2S – or ‘sour gas’
as it is commonly referred to – can be present and will spread
rapidly. It is colourless, highly flammable and toxic, and over
100 ppm, it is also odourless. A worker’s health will be damaged
at a concentration of up to 300 ppm, while a concentration of
1000 ppm is immediately fatal. If the concentration continues to
rise, hydrogen sulfide becomes explosive starting at a concentration
of 44 000 ppm.
Hydrogen sulfide is one of the global top priority risks and that
is why active monitoring for the gas and good planning and training
programmes for workers are crucial to prevent injury and death.
Workers in oil and gas drilling could be exposed to it when
pumping seawater into rock formations as part of work to maintain
pressure. This can lead to a build-up of H2S as organic matter
degrades and produces the gas in the absence of oxygen.
As higher sulfide levels occur in increasingly depleted wells, well
expirations are going to be key growth markets for H2S training and
safety services in the future.
| 69
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Why is protection against Table 1. Top tips for employers
H2S so important? Training
Train people so that they understand the risks and what to do about them. A lack of training can cause an
essential element of control to be lost
Up to 40% of the world’s untapped
Ensure staff involved with risk control tasks have the appropriate competencies for those tasks. Failure to
gas reserves are sour and some of the Competence
do these things leads to mistakes.
biggest oilfields yet to be developed
Priorities,
in the UK North Sea contain heavy or attention Get workers involved and communicate with them about their job and equipment design so that
sour oil, with high concentrations of and conflict demand-capacity mismatches can be fixed.
resolution
H2S, for example, Mariner, Bressay,
Ensure standards and procedures get used. Sometimes, an organisation fails to update its own knowledge
Bentley, Kraken and Perth. Assurance
base
There are other areas
throughout the world where there are heavy concentrations of H2S too,
such as Italy and the Caspian sea.
As fields get older, they tend to start producing H2S in the wells,
even if it was not present before. H2S is often a byproduct of the use of
saltwater injected into wells.
A report by the Energy Division of HSE’s
Hazardous Installations Directorate, suggests that the
decommissioning of offshore installations could accelerate from
2017, involving many installations, up to 5000 wells and 10 000 km of
pipelines.
This difficult process means risk assessments are vital. These need
to be carried out early with escape, evacuation and rescue measures
put in place, as many assets have remained in situ for years and taking
them apart brings with it new safety challenges.
Metal fatigue, including hydrogen embrittlement or sulfide stress
cracking, can result in a release of hydrogen sulfide gas if it is not
tackled effectively. When entering a well that has been abandoned,
maybe for years, workers need to prepare for the worst-case scenario
because they will be dealing with a lot of unknowns.
As production declines in the UK Continental Shelf, the most easily
accessed fields have been exhausted. With new fields in deeper waters,
under higher temperatures and pressures, as well as longer pipelines,
logistics are becoming increasingly difficult which not only challenges
the integrity of assets, but means workers are faced with a more
dangerous environment in which to operate.
While there has been significant investment in new infrastructure,
around half of offshore platforms are beyond their original design
life with many assets commissioned in the early 1970s now forecast
to continue operating to 2030 and beyond. Investment in new assets
and the extension of the life of existing plants present both safety and
commercial challenges.
Preparing the next generation
With older engineers who have worked in the industry since the early
days of North Sea exploration and production approaching retirement
age and fewer engineering graduates now coming through from UK
universities, it is essential that oil and gas companies work to ensure
that knowledge is not lost during the ‘great crew change’.
It is vital that anyone working in an area where concentrations
of hydrogen sulfide may be present should not only share their
knowledge of oilfield operations, but also have the very best training.
Just seconds of exposure at low concentrations can be lethal, shutting
down the system that regulates breathing.
To ensure that oilfield workers are adequately protected in the case
of extraordinary H2S concentrations, they must have self-contained
respiratory protection devices (SCBAs) with a correspondingly high
protection factor available.
Under extreme conditions explosions may be expected from a
concentration of 40 000 ppm H2S. Therefore, the respiratory protection
device must be certified for use in explosive environments.
There should also be a contingency plan to ensure all staff have
been shown how to use hydrogen sulfide safety equipment correctly
in all hazardous areas. Gas detection equipment should be present
wherever hydrogen sulfide might exist, as well as respiratory protection
for normal and emergency use.
Training should include recognising the characteristics, sources
and hazards of hydrogen sulfide and knowing how to react in response
to H2S warnings in the workplace. It should also include rescue
techniques and first-aid procedures in light of H2S exposure, especially
with regards to confined space entry procedures.
Workers should have a plan ready at the time, because if the H2S
sensor alarm goes off, they need to know how to react immediately.
Having a plan and equipment at the ready ultimately saves time and
money, which otherwise could be lost due to inactivity if the platform
has to be abandoned.
Having a workforce with the best training and technology in place
can reduce operating costs by up to 50% and increase productivity by
up to 20% for production.
The hanging face of the offshore industry
Advancements in gas detection methods over the years and new
technology means hydrogen sulfide safety is easier to get to grips with
than ever before for today’s offshore operators.
Training also helps workers recognise the dangers of H2S and
today we are not just better at educating workers, but they are also
better equipped.
The oil and gas industry as a whole is making tremendous
efforts to raise awareness of H2S in order to have incident-free and
environmentally-safe operations now and in the future.
Testing
To ensure safety remains paramount, the company has developed a
test process. Previous special tests used aerosols as a substitute for
H2S, but to test as close to reality as possible, the company uses a
realistic simulation of gas.
This gas is safe for the test subject, but has structural properties
that are very similar to hydrogen sulfide and the company is testing
the protective masks under real world conditions. The fit of the masks
are vital as since the company supports its customers across the world,
head shapes differ significantly. Five head shapes were determined that
are common to the world’s population and with these head shapes, the
company tests its masks. However, even the best protective masks are
useless if the escaping gas is not detected in a timely manner.
Due to the often difficult conditions on the oil and gas platforms,
gas detectors must meet the highest standards as well. They must
deliver fast and reliable results in order to detect H2S. The company’s
gas detectors can measure even small amounts precisely and are able
to respond very quickly if abnormal values are noticed.
Conclusion
With the increasing likelihood of oilfield workers encountering H2S,
as assets mature and require decommissioning, effective detection
systems and training, will remain a key safety priority for the
foreseeable future.
November 2015 Oilfield Technology | 71
Coming up next month
December
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- Reservoir geoscience

- Drilling optimisation

- Enhanced oil recovery

- Well control

- Fluids, proppants and Image from Saint Gobain

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fracture conductivity

- Riser design and analysis

- Health and safety

- Software solutions

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