SPE/IADC-184650-MS

The Floating Factory Concept: Engineering Efficiencies Up Front to Reduce

Deepwater Well Delivery Cost

James Hebert, Diamond Offshore

Copyright 2017, SPE/IADC Drilling Conference and Exhibition

This paper was prepared for presentation at the SPE/IADC Drilling Conference and Exhibition held in The Hague, The Netherlands, 14–16 March 2017.

This paper was selected for presentation by an SPE/IADC program committee following review of information contained in an abstract submitted by the author(s).
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Abstract
Deepwater drilling needs improved efficincy. Since well delivery cost is a major component of deepwater
projects, a 20% reduction in well delivery cost may pull deepwater projects back over the economic
threshold. However, sustainability requires looking beyond market cycle price consessions and focus on
longer term technology and innovation to drive down the well duration and cost. Accordingly, the
industry needs to apply engineered soultions to increase operational efficiency and safety as compared to
existing 6th Gen drillship designs.
This paper introduces a next generation drillship design concept, featuring a factory-like approach to
well construction, grounded with input from operators and third-party service providers. Capitalizing on
Lean methodologies, the design combines improved safety with automation and robotics to reduce
bottlenecks and minimize controllable flat time for the entire well life cycle with a reduction in well
duration and cost by 15 to 30%.
The author examines the distinctive vessel layout including a large flat and un-obstructed work deck, a
high variable load capacity of 27,500 short ton (ST), and increased personnel on board capacity to
improve the off-line transition from the drilling to completion phases. In addition, the reorganized drill
floor replaces the standard derrick and substructure with a Dual Multi-purpose Tower (DMPT),
employing robotic pipe manipulators capable of handling 180-ft stands. To meet future well design
requirements, the hoisting system is engineered for at least a 1,500 ST static hook load at the elevators.
Further, independent mud and brine systems with 11,000-bbl and 17,000-bbl capacities, respectively,
with off-line tank and suction line cleaning, improve well displacement safety and efficiency. Moreover,
a unique power distribution network improves both thruster availability and also allows maintenance
while operating efficiently in an open buss configuration, thereby stretching the dynamic positioning
(DP) operating envelope.
The target of this efficiency and safety-centric initiative is to reduce the operator's well cost and
allowing future optimization of 40,000-ft-plus well designs in 13,200-ft water depth.

Introduction
The drop in commodity prices has accentuated the need to significantly reduce deepwater well delivery
costs. The economic and technical pressures of deepwater and ultra-deepwater theaters are magnified
further
2 SPE/IADC-184650-MS

as operators design wells to target deeper horizons, such as the Gulf of Mexico's Lower Tertiary/Wilcox
trend.
From a total well construction perspective, sustainable deepwater operations must evolve beyond
market cycle price consessions towards a step-change advancement in technology and processes,
engineered to drive down well delivery time and costs. This evolution must center on minimizing the
excessive flat times all-too emblematical of the global deepwater drilling rig fleet (Valenta, et al, 2014),
which will require a design strategy that focuses more on divergent thinking and looking outside the
traditional toolbox.
A number of authors, for example, have discussed the emerging transference of Lean manufacturing
methodologies from the factory to the rig floor to identify and reduce non-value added activities (Morey,
2013; Bartholomew, 2012; Charles, et al, 2012). Consequently, on a rig, any process that, by design,
deepens or changes the wellbore diameter is considered Lean, while tripping, rig-up/rig-down and similar
activities are considered non-value added and should be minimized.
With this view of future requirements and the tools available, it is incumbent upon the industry apply
engineered soultions to increase operational efficiency and safety as compared to existing 6th Gen
drillship designs.

New Drillship Design Concept

The prevailing necessity to substantially reduce controllable flat time throughout the life cycle of
deepwater and ultra-deepwater wells was the predominate driver in a next-generation drillship design.
Conceptually, the 738-ft × 128-ft vessel (Fig. 1) is designed for 13,200-ft of water and more than 40,000-
ft well depths.

Figure 1—Rendering of the new generation drillship design, employing the floating factory concept.

In keeping with the factory-like approach to well delivery, the development initiative for the next
generation drillship design adopted the fundamental principles of the Lean methodology with the
objective to isolate and improve inefficiencies from the drilling package. Specifically, the application of
Lean manufacturing concepts to achieve a factory-like approach to well construction targets a range of
non-value- add activities. These include the historical flat spots on the drilling curve, such as tripping,
drill-line slip and cut and the sequential rigging-up and rigging down of equipment between operational
phases. The drilling equipment, for instance, was specially selected for its documented capacity to
improve performance.
Further, the design includes a 276 ST active heave compensation crane (AHC) to accommodate heavier
subsea installations in deeper water which can occur simultaneously to other drillfloor activities.
The development initiative focused heavily on the hull design, particularly in increasing both the deck
space and storage capacity to enable parallel rig floor operations. Considerable attention, likewise, was
directed to the DP and power management and delivery systems with the objective to reduce weather-
related and/or system failure non-productive time (NPT), thereby expanding the operability window.
Similarly, another key design consideration to increases the safe operational window by reducing the
center of gravity and pushing the weight load outward, thereby reducing vessel roll - a major NPT
contributor related to weather.

Multi-party input
Underpinning the design development program was the need to identify the equipment, process and
vessel arrangement that would effectively address the entire well life-cycle requirements envisioned from
2020 thru 2030 and beyond. Accordingly, a Voice of Customer (VoC) initiative was performed, whereby
the design, equipment selections and vessel arrangements were presented to multiple major and
independent operators and also third-party service providers, to solicit input and suggestions. The
collaborative multi- party initiative, which ran concurrently with the ongoing design development,
enabled constructive input to be captured and incorporated in the early design stages.
All pertinent input was considered in formulating the basis of design with the over-arching objective of
achieving breakthrough performance in HSE and drilling, as well as completion/workover efficiency and
mobilization/logistics.

Basis of Design
Central to the overall design strategy was the full integration of a new generation drilling package with
the differentiating objective to address all of the non-value add activity which the drilling contractor can
directly influence. Specifically, these repetitive drilling curve flat-spots include increasing tripping speed,
reducing connection time and improving offline activity. Moreover, hull-specific considerations,
including useable deck space, storage capacity and personnel-on-board (POB), were increased to allow
the space and resources to reduce the sequential rig-up/rig-down on the critical path. Thus, more of these
activities could be conducted offline, benefitting the well construction schedule, as well as reducing the
risks of logistical delays.

HSE
Importantly, HSE-related issues were accorded the highest priority in the design, particularly in the areas
of emergency egress, ergonomics, material handling. Enhanced safety engineered into the design is
reflected in the expansive flat work deck, which improves material handling and eliminates hazards
associated with traversing stairs.

Hull Design
The design features a flat and unobstructed work deck with variable deck load (VDL) capacity of 27,500
ST. Functional on-deck storage capacity has been increased to 49,500 ft2 - which is significantly larger
than 6th Gen drillships - with below-deck storage for up to 13,200 ft of riser joints. Furthermore,
increasing the POB capacity to 240 improves the transition from drilling to completion activities. The
increased storage
capacity allows equipment to be readily accessible for both ongoing and subsequent operations, including
completions and well tests. Increased on-board storage also reduces the logistical and economic
constraints and risks of requiring stand-by supply vessels or the effects of adverse weather conditions
which impacts material offloading.
 As shown in Fig. 2, designing the work deck flush with the drill floor likewise reduces the vertical
movement of personnel and equipment, minimizes blind spots, improves visibility and provides a safe
and easy access to and from the dual well centers, thereby enhancing operational safety.

Figure 2—Along with increased capacities, the forward and aft work decks are flush
with the drill floor, thereby reducing vertical movement and enhancing overall safety.

Reconfigured Drill Floor

A key efficiency enabler of the floating factory concept was replacing the typical derrick and substructure
with a new generation Dual Multi-Purpose Tower (DMPT), incorporating automated tripping and robotic
pipe handling with multi-functional manipulators (Wijning, 2015; Wijning, et al, 2015; Liou, 2013). The
drilling package is specially engineered to handle and run 180-ft stands of drill pipe and casing, thereby
reducing connection times.
Unlike traditional drilling systems, the DMPT (Fig. 3) is designed with dual redundant drawworks,
including both active and passive heave compensation systems, and no V-door limitations. Along with the
redundancy advantages, the dual drawworks system eliminates the conventional critical path (non-value
add) slip-and-cut time as the drill-line is replaced at a comparably longer interval and abets planning for a
rig move or other non-critical path activity. The system includes a uniquely engineered splittable block
that expedites reeving changes to meet specific load requirements, which when integrated with 180-ft
stands and the robotic pipe handling system, can generate tripping speeds of 5,000 ft/hr, depending on
hole conditions.
 Figure 3—The reconfigured drill floor replaces the standard derrick and substructure with a Dual
Multi-Purpose Drilling Tower (DMPT) and two well centers to facilitate concurrent operations.

To meet expected water depth and well design requirements going forward, the hoisting system is
designed for 1,500 ST static hook load at the elevators. By comparison, the rated nominal hook loads of
6th Gen drillships averages around 1,250 ST.
The new generation drill floor includes physically separated drilling and construction well centers to
reduce the risk to personnel during concurrent operations. Along with stand building and running open
water casing strings, preparation and running the BOP and subsea tree can all be conducted offline. Both
well centers operate from two setback drums, individually rated to 950 ST with slots to hold 3 ½- in. to 7-
in. OD drill pipe and 5-in to 16-in. casing.

Independent Mud and Brine Systems

Independent dual mud and completion brine storage/delivery systems will provide flexibility by allowing
offline pit/suction line cleaning, offline fluid storage and handling to allow efficient change from drilling
to completion fluids, ostensibly saving a day at minimum. In addition, the simultaneous on-board storage
capacities for 11,500 bbl synthetic-based mud (SBM) and 17,000 bbl brine and associated spacers are
envisioned to reduce logistical risk and associated supply vessel costs. The total liquid mud capacity
represents an average 8,200-bbl increase over typical 6th Gen drillships. Moreover, the arrangement of
the individual pit volumes can be purposely modified via a simple physical change, such as a spectacle
flange, to reduce the risk of cross-contaminnation which could occur by pushing the wrong button on a
touch screen control panel.
The dual mud pit system includes independent suctions for up to seven mud pumps. Combined with
cylindrical pits with conical bottoms, this configuration facilitates off-line cleaning and minimizes waste.

BOP System
The design comprises dual 15K, 7-ram subsea BOP system compliant to the 2016 well control rules
mandated by the US Bureau of Safety and Environmental Enforcement (BSSE). For a 20K version, the
main structure, piping and space were consider in the deign to reduce the cost and time to install the
equipment upgrades.
Engine Room Configuration
Unlike most 6th Gen drillships, which are designed with three engine rooms each housing two large
engines, the floating factory concept provides three medium-sized engines in each of the three rooms. The
three extra engines provide sufficient flexibility to optimize engine-loading, thereby reducing fuel
consumption, engine wear and emissions output.
In addition, based on recommendations of the Marine Technical Society on DP operations in critical
activity (Shah, et al, 2010), some operators and regulatory agencies require DP vessels to operate in an
"open-buss" mode during critical activities, whereby the buss- tie breakers are opened to remove the
power connection between the engine/switchgear rooms. While the open-buss mode may reduce the
chance of a failure in one engine room affecting another engine room, it can create conflicts between the
needs of operations and maintenance. For engine rooms with only two engines, taking one engine out-of-
service for planned or unplanned maintenance leaves no reserve to support the lone operable engine.
Accordingly, the loss of the second engine could lead to a Yellow Alert situation and, at a minimum,
suspend drill floor operations. With the three engines per engine room incorporated in the floating
factory concept, one engine can be taken off-line for maintenance while configured in the open-buss
mode, with reduced effect on operations. Thus, the floating factory is designed to operate comfortably in
either open or closed-buss modes.

DP Power System
The design employs distinctively independent and redundant power supply to the DP system, conceived
to extend the DP operational envelope. Specifically, power is supplied to each thruster from two separate
engine/switchgear rooms, incluing dual windings in the thruster motors. Consequently, a failure in one
engine room will only cause a 50% loss of thruster input power. Since 50% power in normal DP ranges
equates to 67% thrust output, the loss of an entire engine/switchgear room on the floating factory concept
normally will not result in a Yellow Alert condition, which would likely occur should this situation arise
on a 6th Gen drillship.

Third-Party and Completions Equipment Rig-up

Along with the increased POB and deck space for storing completions and workover hardware, including
4,700 ft2 specifically dedicated to well testing, the design streamlines the transition to
completion/workover operations. Furthermore, the liberal and more flexible deck space, combined with
direct crane access to the drill floor, allows completion tools to be prepared off-line and re-configured in
larger pieces to reduce
the non-value add time of rig-up and rig down in the well construction critical path. In addition, utility
stations are conveniently located to allow plug-and-play connections for power, air, communications and
data transfer for third-party equipment, thereby reducing rig-up and rig-down time and cost.

Comparative Efficiency Analysis

To analyze the efficiency gains from the floating factory concept, both quantifiable and estimated
methodologies were combined to provide an overall efficiency improvement in generic terms. The
quantifiable gains were applied to the drilling process for which the non-value-add aspects are relatively
more consistent with the main variants being the number of casing strings and setting depths of the well
design. This situation allows for a direct comparison where a quantifiable calculation can be made with
relative precision. Conversely, for other non-value-add aspects such as logistical constraints, weather
related non-productive time (NPT) and well completion activity have higher degrees of variability as
related to the geographic location and the well completion strategy employed and as a result, the
efficiency for these activities can only be estimated.
Quantifiable Methodology
To calculate the quantifiable efficiency gains produced by the floating factory concept, the performance
of the DMPT provides the best methodology. For the analysis, actual data of the drilling phase from
multiple deepwater wells in the Gulf of Mexico, West Africa and Brazil were used as the data set. By
studying each critical path activity's actual duration and then applying a time reduction from the
efficiency gains from the DMPT provides an estimate of the efficiency savings with significant precision.
The main efficiency gains from the DMPT include:
• Spud-to-BOP run sequence with increased off-line activity
• Un-restricted high-speed tripping of drill pipe and bottom hole assembles
• 180-ft stands reduces connection time while restricted tripping of drill pipe and casing
• 180-ft stands reduces connection time while drilling
• Reduced time for slip changes during pipe diameter changes
• Elimination Drill-line slip and cut operations on the critical path
The efficiency analysis methodology and boundary conditions were subsequently applied to multiple
wells. Table 1 summarizes the results of a comparative analysis from one example Gulf of Mexico well
in 5,900 ft water, which was drilled to a depth of 31,300-ft in 115 days with a 6th Gen Dual Activity
Drillship. For that well, the floating factory conservatively would have saved 18.4 days, representing a
16%
improvement in the well delivery time.

Table 1—Quantifiable Efficiency Analysis of floating factory concept for a GOM deepwater well

DMPT Efficiency Aspect Quantification Assumptions Floating Factory Savings (Days)

Spud to BOP Run Sequence
Unrestricted Hi-Speed Tripping
Where surge and swab is not a limiting
factor
Increased offline casing and BOP handling 1.4
High Speed Tripping of Drill Pipe and BHA only
• 5,000 ft/hr in open water and riser 4.2
• 4,000 ft/hr inside casing down to 16-in OD

180-ft Stands saves 2 connections per 1,000-ft

• Tripping inside 16-in and smaller casing

Restricted Tripping
• Ability to run 16-in Casing from setback vs. 8.3
Where surge and swab is a limiting factor from main deck
• Large bore or specialty tools

Reduced Drilling Connections 180-ft Stands saves 2 connections per 1,000-ft 0.7
Pipe OD range from 3 ½ in to 9 ¾ in do not require insert
Dual Multi-Size Power Slips changes. 1.7
Casing Slips can be installed quickly
Drill-line Slip & Cut Slip & Cut is not required 2.1
Total Days Saved 18.4 Days
Percentage of Total Well Time Saved 16%

The results concluded that unrestricted hi-speed tripping and connection savings from 180-ft stands
produced the largest savings components. From this, one can reasonably see a trend in which efficiencies
become more pronounced in proportion to deeper water and well depths with corresponding increases in
tripping requirements.
Estimated Methodology
The floating factory concept's hull design plus other aspects of the DMPT provides additional efficiency,
but these non-value-add activities require the use of an estimated methodology as they are to varied to
quantify in generic terms. These activities involve logistical constraints, weather related non-productive
time and well completion operations which all have higher degrees of variability as related to the
geographic location and the well completion strategy employed. Table 2 summarizes the estimated
efficiency savings applied to a similar GOM as referenced above.

Table 2—Estimated Efficiency Analysis of floating factory concept for a GOM deepwater well

Floating Factory Efficiency Aspect Estimate Assumptions Floating Factory Savings (Days)
Improves logistics by increasing the amount of materials
and equipment which can be stored on board improving off-
Increased Deck Storage Area 4 to 7
line rig-up & rig down capability. Also decreases risk of
potential weather related NPT.

Provides space for extra 3rd Party personnel to support the

Increased POB 2 to 4
off-line rig-up & rig-down activity.
Allows off-line handling, storage and treatment of drilling,
completion fluids, including spacers & flushes. Provides
Dual Mud System 1 to 7
for safe and off-line cleaning of Shaker Pits, Mud Pits and
suction piping.

Improves the ability to be assembled and tested off-line and

Direct Crane Access to a Large Drill
placed on the Drillfloor as larger systems as compared to 1 to 2
Floor area
handling with drill floor tuggers.
Supports the ability to rig-up & rig down items such as
Off-line Rig-Up & Rig Down of
Lift-Frames, Surface Flow Trees, and hoses of- line while 1 to 2
Completion Equipment
deploying the Sub-Sea Trees.
Total Range of Days Saved 9 to 22

Overall Efficiency
By combining the results from Table 1 and Table 2, then a projection can be made that savings range of
27 to 40 days can be achieved for a for a GOM production well, in generic terms. Assuming the
completion operations took an additional 40 days resulting in the total well time of 155 days, the overall
savings can be projected as 19% to 29%.
Appling the same methodologies as above for shallower wells with less casing strings, such as those in
Brazil and West Africa, the projected savings are in the range of 15% to 20% as the DMPT efficiencies
in Table 1 are reduced with the lower tripping activity. However, logistical constraints in some remote
operating areas could result in higher savings for the topics in estimated topics Table 2.

Conclusions
The floating factory concept represents a step-change advancement in drillship design by engineering
in HSE, drilling and completion efficiencies at the onset to reduce total well delivery time and costs.
Combining a factory-like approach to well construction with an improved drilling system, mud system,
increased storage and POB capacities, combine to improve the HSE profile while also significantly non-
value-add activity achieving the objective to move deepwater and ultra-deepwater wells into a more
competitive threshold. Importantly, the floating factory concept is engineered to optimize total well life
cycle and address well requirements out to 2030 as envisioned by both operators and service/equipment
providers.
Acknowledgments
The author wishes to thank the management of Diamond Offshore for permission to publish this paper.
Special appreciation also is extended to the many major and independent operators and third-party service
and equipment providers whose input was valuable in the development of the floating factory concept
design and outfitting.

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