Design & Planning

Commitment & Leadership

Policies and Objectives Improvement

Organisation and Resources

Contractor and Supplier Management

Corrections

Risk Management

Design and Planning

Implementation and Monitoring Control

Assessment and Continuous Improvement

1 RKH
 What is a Project?
• A ‘true’ project is:
“a one-time, unique endeavour by people to do something
that has not been done that way before” (Anderson, Grude,
Haug, Turner)
• 5 Major Elements:
Scope
Organisation
Quality
Time
Cost
2 RKH
 Workscope & Organisation
• Basic Workscope and Organisation will have been
established at Contract Award.
• Workscope will fall into three main categories
– Project Management
– Design
– Operations
• Organisation will depend on Workscope & Schedule

3 RKH
 Work Breakdown Structure - Project Level
ID Name Start Duration % DoneProcess Document Responsible Depends on
PROJECT Set UP Process 01 Dec '96 79d 0%
1 PREPARE PROJECT MANAGEMENT 01 Dec '96 79d 0%
2 Initialise/Edit WEMS at Project, Field (Design) and 02
Well
Dec
(Programme)
'96 1d Level0%
3 Develop Field Master Project Schedule and Interfaces01 Dec '96 0d 0%
4 Develop Works Contract for Integrated Services02 Dec '96 79d 0%
5 Develop / Agree workscope for each service provider
20 Mar '97 1d 0%
6 Agree Remuneration package for each Service02 Provider
Dec '96 1d 0%
7 Develop 3rd Party agreements to complete project20 Mar
workscope
'97 1d 0%
8 Agree Terms and Conditions 02 Dec '96 1d 0%
9 Sign Works Contract 02 Dec '96 1d 0%
10 Develop Contract / Alliance Agreement 02 Dec '96 1d 0%
11 Develop Alliance Operating Principles and Roles02 Dec '96 1d 0%
12 Review the total Project Work Scope 02 Dec '96 1d 0%
13 Review / Agree total Project Budget Cost 02 Dec '96 1d 0%
14 Agree Basis for Risk and Reward 02 Dec '96 1d 0%
15 Circulate/Review Draft 02 Dec '96 1d 0%
16 Sign Alliance Agreement 02 Dec '96 1d 0%
17 Develop Project Organization & Resources 02 Dec '96 1d 0%
18 Set up Project Steering Committee / Alliance Board
02 Dec '96 1d 0%
19 Define Project Team Positions and Required Competencies
02 Dec '96 1d 0%
20 Define Project Organigrams 02 Dec '96 1d 0% O>Org.ppt
21 Define Roles/Responsibilities across project 02 Dec '96 1d 0%
22 Define Reporting relationships 02 Dec '96 1d 0%
23 Define Personnel Positions / Competencies and 02Succession
Dec '96 Plan
1d 0% O>Persplan.mpp
24 Define / Develop Training Requirements 02 Dec '96 1d 0% O>Persplan.mpp
25 Define Ops principles / Guidance on RACI 02 Dec '96 1d 0%
26 Agree RACI Chart for running organisation 02 Dec '96 1d 0% O>Raci.xls
27 Develop Goals for teambuilding and define responsibilities
02 Dec '96 1d 0%
28 Develop Schedule for Teambuilding exercises 02 Dec '96 1d 0%
29 Develop Goals for Cross Cultural Issues and define
02 Dec responsibilities
'96 1d 0%
30 Define Communication Channels with other Project
02 DecGroups
'96 1d 0%
31 Establish Project Multidiscipline Workgroups / Goals
02 Dec and'96Responsibilities
1d 0%
32 Define Workgroups participants and communication
02 Dec / reporting
'96 1dmethods0%
33 Prepare Project QHSE Management System 01 Dec '96 1d 0%
34 Identify/Summarise Risks to Project Performance02 Dec
Contract
'96 1d 0%
35 Prepare/Maintain Project Assurance Plan 02 Dec '96 1d 0%
4 RKH 36 Agree Policies with Operator and Drilling Contractor
02 Dec '96 1d 0%
 Work Breakdown Structure - Design Level
ID Name Start Duration % Done Process Document Responsible Depends on
FIELD DESIGN PROCESS 01 Dec '96 76d 0%
1 ORGANISE FIELD DESIGN PROCESS 02 Dec '96 1d 0%
2 Review Scope of Design Work 02 Dec '96 1d 0%
3 Agree and document Design Policies to be used 02 Dec '96 1d 0%
4 Update Preliminary Project Schedule, Resources 02 Dec
and'96
Responsibilities
1d 0%
5 REVIEW FIELD OBJECTIVES AND FIELD / WELL 01PROPOSAL
Dec '96 1d 0%
6 Meeting with Operator : Review Development02 Proposals
Dec '96 and Well1d Information
0%
7 Identify possible external specialist design work02 Dec '96 1d 0%
8 Identify possible R&D work from Product Lines02orDec external
'96 contractor
1d 0%
9 Develop the FIELD / Well Proposal 01 Dec '96 0d 0% PROP.MPP O>PROP.doc
10 MEETING - Project Team Review Field / Well01 Proposal
Dec '96with Operator
0d 0%
11 WELL PROPOSAL APPROVED BY OPERATOR 02 Dec '96 1d 0% O>WELPROP.DOC
12 REVIEW CONCEPTUAL WELL TEST / COMPLETION 02 Dec '96 OBJECTIVES
1d 0%
13 Meeting with PE group to Review outline Well 02 Test
Dec/ Completion
'96 1d
Objectives0%
14 Identify Interfaces between Geological / Well Test
02 Dec
/ Completion
'96 Objectives
1d 0%
15 Identify potential interfaces between Well / Test02
/ Completion
Dec '96 designs
1d 0%
16 Conceptual Well Test / Completion Approved by 02Operator
Dec '96 1d 0% O>BODCCP.doc
17 Enter Conceptual Completion document into WEMS 02 Dec '96 1d 0%
18 DEVELOP DRILLING BASIS OF DESIGN 01 Dec '96 76d 0% O>BOD Drilling.doc
19 Review Goals in Well proposal 02 Dec '96 1d 0%
20 Perform Offset Drilling Data Analysis 01 Dec '96 0d 0% BODODA.MPP O>BODODA.DOC
21 Casing / Hole size Basis of Design 01 Dec '96 0d 0% BODCSG.MPP O>BODCSG.DOC
22 Tieback Basis of design 01 Dec '96 0d 0% BODTBK.MPP O>BODTBK.doc
23 Directional Basis of Design 01 Dec '96 0d 0% BODDIR.MPP O>BODDIR.DOC
24 Drilling Fluids Basis of Design 01 Dec '96 0d 0% BODMUD.MPP O>BODMUD.DOC
25 Cementing Basis of Design 01 Dec '96 0d 0% BODCMT.MPP O>BODCMT.DOC
26 Bits/Hydraulics/Hole Cleaning Basis of Design02 Dec '96 1d 0% O>BODBIT.DOC
27 Jack Up Riser / Conductor Basis of design 01 Dec '96 0d 0% BODJUR.MPP O>BODJUR.DOC
28 Semisub Riser Basis of design 02 Dec '96 1d 0% BODSSR.MPP O>BODSSR.doc
29 Well Control Basis of Design, and Kick Detection 01 Dec
Methods
'96 0d 0% BODWCN.MPP O>BODWCN.doc
30 Wellhead (surface) Basis of Design 02 Dec '96 1d 0% BODWHD.MPP O>BODWHD.DOC
31 Mudline Suspension Basis of Design 02 Dec '96 1d 0% BODMLS.MPP O>BODMLS.doc
32 Wellhead (subsea) Basis of Design 02 Dec '96 1d 0% BODSSW.MPP O>BODSSW.doc
33 Evaluation Basis of Design 01 Dec '96 0d 0% BODEVL.MPP O>BODEVL.DOC
34 Suspension or Plug & Abandonment Basis of Design 01 Dec '96 0d 0% BODP&A.MPP O>BODP&A.DOC
35 Environmental Basis of Design 02 Dec '96 1d 0% O>BODENV.doc
36 Identify ROV requirements and equipment specifications
02 Dec '96 1d 0% O>BODROV.doc
37 Identify / document RIG Upgrade requirements02orDec Rig'96
Equipment1dSpecifications
0% O>BODRIG.doc
38 HTHP Checklist 17 Mar '97 1d 0% O>HTHPCHK.doc
39 QHSE Considerations 02 Dec '96 1d 0%
40 Risk Management 02 Dec '96 1d 0%
41 Perform High level risk assessment of design
02 Dec topics.
'96 Enter1dresults into0%
"Risk View"
42 Confirm that a detailed Risk Assessment02 has
Decbeen
'96carried1d
out on individual
0% design topics
43 Confirm that the Risk Register and Action02Plan
Decare'96complete
1d for this Design
0%
44 Confirm that any outstanding Risks are clearly
02 DecIdentified
'96 1d 0%

5 RKH
 Well Construction RACI
De c isio n Ca te g o ry Onsho re
BM CPM IPM WOS RM SDE SPE OC SCR SSR
A) We ll De sig n a nd Pro g ra m m ing
1 De fine we ll o b je c tive s (We ll Pro po sa l) C C C C A/ R
2 We ll de sig n to TD A C R C C
3 Co m p le tio n De sig n A C C C R C
4 Te sting De sig n A C C C R C
5 AFE Ap pro va l A C R
6 Drilling Pro g ra m (HSE & p a rtne rs) C C C A R
7 De ta ile d o pe ra tio na l se que nc e s A C
8 Lia so n with Pa rtne rs A R

R Re sp o n sib le (w o rks issu e s, m a ke s d e c isio n s)

A Ac c o u n ta b le (re vie w s d e c isio n s, e n su re s w o rk is d o n e ,
a u th o rity if n o c o n c e n su s)
C C o n su lt (sh o u ld b e c o n su lte d b e fo re d e c isio n is m a d e )
I In fo rm (m ust b e in fo rm e d o f o u tc o m e )

6 RKH
 Typical Single Well Resources
Position Dec Jan Feb Mar Apr May June Jul Aug Sep
98 99 99 99 99 99 99 99 99 99

Project Manager Stage 1

Well Engineering
Snr. Drilling Engineer
Stage 2
Comp/Prod. Engineer Procurement &
Tendering
Logistics / Proc. Supv. Mob / Demob

Rigsite Engineer Stage 3

Project
Project Controller Execution

Wellsite Supervisor Stage 4

Final well report
QHSE Engineer

7 RKH
 Detailed Planning
Design and Planning incorporates Quality, Time and Cost

Quality Time

Cost

8 RKH
 The IPM D-E-E Cycle

Evaluate
Evaluate Design & Plan
Design

Execute
Execute
9 RKH
 The WEMS* D-E-E Process
Design & Plan
Project Wellhead
Fluid
Directional
Process Maps
Design Templates
Objectives Cementing
Casing
Project Schedule
Designs
Roles & Responsibilities
Options
Policies
Policies & Procedures
Risk
Design Risk
Auditable Trail
KEY Documents:
Well Proposal
Basis of Design
Operations Programs
QHSE Plan
Permit Documents
Evaluate Execute
Well AFE
Performance Database Wellhead Wellhead
Program
Fluid Risk Register Fluid
Auditable Trail Directional Directional Policies & Procedures
End of Well Report
Process Improvement Cementing
Casing
Cementing
Casing
Guidelines
Actual vs Plan Designs Designs
Performance Curve
Benchmarking Options
Policies
Options
Policies
Auditable Trail
Continuous Risk Risk
Safety Report
Improvement Operational Risk
10 RKH Operational Learning
 Project Management vs Operations Mgt.
•Operations
Project
 Repetitive
Unique
 Finite
Eternal
 RevolutionaryChange
Evolutionary Change
 Disequilibrium
Equilibrium
 Unbalanced
Balanced Objectives
Objectives
 Transient
Stable Resources
Resources
 Flexibility
Stability
 Effectiveness
Efficiency
 Goals
Roles
 Risk & Uncertainty
Experience
11 RKH
 Well Construction Contract
Prepare Contract/Workscope

Mobilise Team

Prepare Basis of Design

Prepare Drilling Prog. Well 1 Drill Well 1

Prepare Drilling Prog. Well 2 Drill Well 2

Prepare Drilling Prog. Well 3 Drill Well 3

Prepare Drilling Prog. Well ‘n’ Drill Well ‘n’

De-Mobilise Team

12 RKH
 Key Design & Planning Steps &
Documents
Generate Well Objectives
• Key Well requirements
• Key Well success factors
• Starting Point for Design
Develop Design
• Options generation
• Product Line
Involvement
• Engineering Applications
•Generate
DesignProgram
consistency
• Well Specific Trajectory
• Detailed Instructions
Evaluate
• Actual vs Planned
 Well Proposal
• Specifies Subsurface Environment and Well Objectives.

• Key Design Criteria:

– Formation type
– Formation Pressure
– Fracture Pressure
– Temperature
– Depths
– Hydrocarbon type
– Hazards (Shallow Gas, H2S, CO2 etc)
14 RKH

• Challenge Assumptions
 Basis of Design ( BOD)
BOD Document for each design element
Content of each individual Design document:
– Reference to Policy or Code used in the design
– Required Design Safety Factors
– Methodology
– Source of input information
– Goals and Assumptions
– Well objectives and key success factors addressed by the design
– Design Options discussion and evaluation.
– Summary Results of simulation work performed (e.g. hydraulics, casing
wear, torque etc)
– Justification for selected design option
– Limits of applicability of the selected design over life of well
15 RKH
 Features of the BOD
• Captures Reasoning
• Considers Complete Life of a Well Cycle
– Clearly States the Design envelope of the well
• Primary Design Document for similar wells in a Field
Development
• For Non-continuous Operations:
– May apply to only first phase of Well Operations
• For Field Development
– May apply to each well type
– Updated with lessons learned
– Always Current
• Sets design criteria and options for Product Line Audit Packs
16 RKH
 Well Program

• Derived from the authorised BOD

• Design Summary specific in Individual well MD

• Includes information on the Design Envelope of the well

• Used for Well Notification

17 RKH
 Difference Between Design and Program
Design:
• Link between Well Objectives and Program

Well Objectives
Design Well Program
(Well Proposal)

Program:
• Link between Design and Operations

Design Well Program Operations

18 RKH
 Program and Operations Program

•Program

• Well Proposal
• High Level Operations Sequence
• Program Summary Sheet
• Operations Program
• Time Depth Plot
• Detailed Programs
• Detailed Operational Sequences
(or Guidelines)
• (Cost Information)
19 RKH
 Detailed Planning
Design and Planning incorporates Quality, Time and Cost

Quality Time

Cost

20 RKH
 Time vs Depth Curves
0

500

1000

1500
Depth

2000

2500

3000

3500

4000

4500
0 1 2 3 4 5 6 7
21 RKH Duration (Days)
 Time vs Depth Curves
Operating Company Elf Congo Spud Date
Well Name KOBM1-06 To Date
Rig Searex-9 Planne d End Date
Fie ld (if applicable) Kombi Expected End Date

Start of KOBM1-06 - 15 July 1999 P

P la
la nne
nne d
d De
De pth
pth
0
Actual Depth
Planned Depth
0
2000
22" hole

200 18 5/8" casing

200
400

400
400 17 1/2" hole
Skidded to KOBM101 on 24 Jul y 1999
600
RD TRD)TR) T )

Skidded back to KOBM1-06 on 1st September 1999

600
600
D (M

13 3/8" casing
800
n(Mm(M

800
inmi m

800
pethpi nth

1000
1000 12 1/4" hole
D eDpeDth

1000

1200
1200
1200

1400
1400
1400

1600
1600 Log - 9 5/8" casing 8 1/2" hole
1600 TLC/Liner/Completion

1800
1800
1800 0.00 2.00 4.00 6.00 8.00 10.00 12.00 14.00 16.00 18.00 20.00 22.00 24.00 26.00 28.00
0
0.00 22.00 4 4.00 6 6.008 10
8.00 12
10.00 14
12.00 1614.00 18 16.00
20
Days 22
18.00 24
20.00 26
22.00 28
24.00 30 26.0032 34
28.00
Days
Days

22 RKH
 Detailed Planning
Design and Planning incorporates Quality, Time and Cost

Quality Time

Cost

23 RKH
 Design & Planning - Well Costs

Cost Specification
• Fixed Costs
• Daily Costs
• Unit Costs

24 RKH
 Fixed Costs
• Wellheads
• Site Preparation
• Casing
• Cement
• Tubing
• Packers

25 RKH
 Daily Costs
• Rig Dayrate
• Tool Rentals
• Specialist Services
• Salaries & wages
• Fuel
• Lubricants
• Drilling Consumables (dope, soap & rope)
• Transport
26 RKH
 Unit Costs
• Well Consumables
– e.g. price per tonnes of baryte or bentonite

Unit Costs normally optimised at tendering stage

27 RKH
 Example Onshore Exploration Well
Fixed Items
Site Survey & Rental 72000 12%
Rig Mob/demob 46000 7%
Wellhead 26000 4%
Conductor & Casing 40000 6%
Rock Bits 17000 3%
Coreheads 13000 2%
Cementation 35000 6%
Transport/Cranes 10000 2%
Electric Logging 30000 5%
Disposal 8000 1%
Accommodation 5000 1%
Well Engineering 50000 8%
352000 57%

28 RKH
 Example Onshore Exploration Well
Daily Items
Rig Dayrate 97000 16%
Mudlogging 30000 5%
Mud Engineering 10000 2%
Fuel 10000 2%
Tool Rentals 5000 1%
Water Supply 5000 1%
Wellsite Supervision 15000 2%
Wellsite geologist 8000 1%
Overheads 70000 11%
250000 41%
Unit Items
Mud Chemicals 14000 2%
14000 2%
29 RKH
 Cost Planning - AFE
• AFE - Authorisation for Expenditure
• Predicts cost of proposed well
• Accuracy depends on amount of available information
• Normally broken down into circa 100 coded items
• Phases
– Preparation
– Drilling
– Testing
30 RKH
– Abandonment
 Estimating
• Timing - Review Similar Wells
• Quotes from:
– Drilling Contractors
– Service Companies
– Wellhead Companies

31 RKH
 IPM Project Cost Recovery
Recoverable Lost / Unidentified Recoverable Lost / Unidentified
Project Total
Management
Overhead
Project Total
Management Overhead
G&G Costs
G&G Costs “Unrecoverable” Costs
Engineering
reduced and made
Engineering Overhead
Overhead more visible
Procurement
Procurement
HQ and support costs IPM Mang, Eng & Proc
Logistics Costs Identified in
on projects not visible
IPM component
or deemed recoverable Logistics
Construction now recoverable
by Partners
Construction

Drilling Rig
Drilling Rig
Major indirect
Drilling Services
cost reduction
Drilling Services

100% 0% -100% 100% 0% -100%

Set Against Production Set Against Production
 ID Name
Design Process Checklist % Done Document Details
Casing Basis of Design 0%
1 Estimate Time to Complete Work Below: 0% Edit Tasks (Insert & Deactivate), Estimate Duration & Work, Verify RACI, Verify links. Enter sub project duration opp
2 Define Casing Goals 0% O>BODCSG.doc
3 Review Well Proposal 0% I>PROP.DOC This may be a "Field Proposal" rather than a well specific proposal.
4 Document Draft Casing Goals 0% Ensure compatible with well goals
5 Document Design Policy being used 0% This must be formally agreed.
6 Define Casing Assumptions 0% O>BODCSG.DOC
7 Document main Lithology units 0% Check range of Lithologies -- What are the MAX or MINS that can be tolerated in this design/ What would invalidate
8 Define Pore/Frac Press. & Temp. Profile used in the 0%design Check range of Pressures and Temperatures to determine the MAX or MINS tolerated in this design/ What would in
9 Document important Offset data for casing considerations
0% Look for Lost Circ, hole Instability, LOTs, H2S / CO2, Well Control, Stuck Pipe, Casing Wear, Casing Problems Colla
10 Document Completion requirements 0% Ensure production casing compatible with Completion requirements. Consider size of safety valve, pressure test re
11 Document produced fluid assumptions 0% Identify the possibility of H2S, CO2 or other corrosive fluid either initially or later in well life
12 Revise/Agree Casing Goals & Assumptions 0% Review & Agree goals & assumptions; Verify Goals with Well Proposal if necessary.
13 Design Casing Plan 0% O>BODCSG.DOC
14 Casing Size / Hole Size Programme 0%
15 Document Casing Seat Selection 0% Consider Legislation, Tubular Design, Well Control, Shoe Integrity, Hole Stability, Casing Wear & Zonal Isolation Re
16 Define Mud weight assumptions 0% Ensure that the casing design accounts for maximum and minimum possible mud weights in each hole section.
17 Calculate Design Kick Tolerance 0% I>KICKTOL.XLW Ensure method and assumptions clearly stated. Ensure calculated KT meets Policy requirements. Use CLIENT me
18 Verify Required Casing Size at TD 0% Review Well Proposal and well completion / well test requirements.
19 Develop / Document Hole/Casing Size Program 0% Consider Required Hole/Casing Clearance, Directional Issues, Hole Cleaning Capacity, Use of Liners & Requiremen
20 Casing and Coupling Specification 0%
21 Define Load Assmptns& Minimum Acceptable0% Safety Factors Clearly define internal and external fluid, and pressure load.
22 Perform Casing Analysis 0% Use "Stresscheck" for normal temperature wells. For wells above circa 275 degF BHST, consider using Wellcat.
23 Define Temperature assumptions for each design 0% scenario If required (casing Design Policy).
24 Perform Temperature Simulation (if required) 0% Required if BHST above circa 275 degF. Can be run as part of Wellcat design or independently.
25 Define Casing Wear assumptions for each design 0% load This will depend on available drillpipe hardbanding. For Armocor assume initially at least 10% WEAR.
26 Define Casing Pressure test requirements 0% In some cases this may be the limiting design condition. Ensure that pressure test requirements are fully justified a
27 Document Life of Well Considerations 0% Consider water injection, gas injection, formation pressure decline / increase, change in nature of produced fluid, cu
28 Develop Casing Design 0% Iterate Tubular Design or Modify existing design. Change Required Number of Casing Strings, Hole Size Program, C
29 Confirm compliance with NACE for corrosive environment
0% or requirement for CRA.
Specialist input required prior to confirming requirement for CRA material.
30 Confirm Coupling specification meets all well conditions
0% Consider effects of Tension, Compression and Bending on the integrity of the coupling seal. In wells with high buck
31 Confirm that all Special casing joints or Cross 0%
over joints satisfy the casing designSpecial
criteria
Joints may see higher stress values than the casing. These must be purchased thru an approved supplier.
32 Identify any Operational issues arising from the0%selected design For example requirement for annular bleed off on well warm up, requirement for special running or testing procedure
33 Safety Critical Factors 0% O>BODCSG.DOC
34 Identify and document all SAFETY Critical Factors in0% this design Factors which if not met may cause the well to lie outwith the design envelope and lead to escape of fluid. e.g. Sho
35 Define how safety critical factors are addressed in the
0%design
36 Equipment 0%
37 Specify Equipment requirements 0%
38 Identify and document long lead or special order equipment
0%
39 Manufacturing Specification 0%
40 Identify Safety Critical Equipment 0% Equipment will be supplied only by an approved and certified supplier
41 State minimum manufacturing specification and test0% requirements API or other code. Specify also pressure test or other special requirements
42 Identify other Special Considerations 0% Consider FEA or other design check requirement for cross overs or other special tools having variable dimensions o
43 Design Verification 0%
44 Verify that the selected design meets the well Goals.0%
45 Does the Design comply with Stated Policy? 0%
33 RKH 46 Have deviations from Policy been identified and Policy0% Dispensation procedure followed?
47 Does Kick Tolerance comply with Policy. Are assumptions
0% clearly stated?
48 Does this design require independent verification or 0%
Peer review according to IPM Policy or Procedures?
49 Has an independent design verification or Peer review 0%been completed?
50 Have expected BH conditions resulted in special considerations
0% in this design?
51 Have casing design issues affecting well completion 0% or tieback been adequately addressed?
 Difference between Design and Program
Design - Link between Well Objectives and Program

We
ll W
el
l
D
E
S
I
GN P
r
o
gr
a
m
O
b
j
e
ct
iv
es

Program - Link between Design and Operations

D
E
S
I
GN P
r
o
gr
a
m O
P
E
R
AT
I
O
NS

34 RKH
Design to Drilling Program
DESIGN PROGRAM OPS PROGRAM
SUMMARY (Full Rig info)
DETAILED
FIELD or WELL Finalised Well Programs
Proposal Specific Proposal DTLCSG.doc
prop.doc prop.doc DTLWHD.doc

FIELD Bases of WELL PROGRAM Operations

Design SUMMARIES Sequences
BODCMT.doc PRGCMT.doc OPS1.doc etc
BODCSG.doc etc PRGCSG.doc etc

Compiled document Compiled document Compiled document

BOD Drilling.doc PRGDrilling.doc OPRDrilling.doc

35 RKH
 DESIGN PROGRAM
Program Model OPERATIONS
PROGRAM
PARTNER GOVERNMENT RIG
APPROVAL APPROVAL OPERATIONS

WELL Finalised
PROPOSAL WELL
PROPOSAL

BASIS OF PROGRAM
DESIGN SUMMARY

HIGH LEVEL
OPS
SEQUENCE

DETAILED
PROGRAMS

OPS
SEQUENCES

36 RKH
 Examples of Well Program (summary)
Compilation of individual summary documents e.g.

•Casing:
– Final casing Specification, shoe depths, Kick Tolerance, Design factors,
– Design limits, Pressure test requirements.
•Mud
– Spec by interval (MW, type, PV, YP, etc), Contingency plans (lost circ etc),

• Cement:
– Slurry specifications, excesses., planned TOC, centralisation,

37 RKH
 Detailed Programs
Detailed Instructions on Implementation some aspect of the
Well Program

Included in Drilling Operations Program sent to Rig

Example
– Detailed Mud Program
Mud formulation information, mixing procedures, pill make up, solids control plan and
other information required to run the mud system.

– Detailed Wellhead Installation Program

Detailed hook up and test details. Probably based on manufacturer’s standard procedures
38 RKH
 Operational Sequences

• Done by Hole Section or by Specific Operation (e.g.Run

Liner)

• Can be collated in a Field Operations Manual (FOM)

• Key Area for Continuous Improvement

• Reflects the latest Procedures

39 RKH
 Operations Program

• Compiled from:
• Detailed Programs
• Operational Procedures or Guidelines
• AFE (option)
• Contingency Procedures
– Environmental Plan, H2S Plan, Stuck Pipe / Fishing Plan)

40 RKH
 Programme Checklist - Example
ID Name % Done Document Details
PRGCHK.mpp 0%
1 PROGRAMME CHECKLIST 0%
2 WELL NAME: 0%
6 SECTION CHECKLIST 0% To be completed by the Engineer responsible for the individual se
7 WELL PROPOSAL 0%
8 Has the Well Proposal design subprocess been completed in compiling 0%
the finalised Well Proposal?
9 Has an authorised Well Proposal been issued to the Project Team with0% clear well objectives?
10 Is the authorised Well Proposal a significant deviation from previous proposal
0% documents?
11 If yes, has this deviation been assessed as part of auditable process? 0%
12 Has the assessment of Shallow Gas risk changed for this finalised Proposal?
0%
13 Have the Well Proposal requirements been subject to an operational risk 0%assessment?
14 Have all risks been worked to as low as reasonably practical? 0%
15 Does the Well Proposal information include Design and Operational lessons0% learned from previous wells?
18 Casing Programme 0%
19 Has the Casing Basis of Design been approved? State Reference. 0%
20 Is the Casing Programme in this well a deviation from the approved Basis 0% of Design?
21 If yes, has this deviation been assessed as part of auditable process? 0%
22 Does the Programme conform with stated Policy? 0%
23 If not has a Policy dispensation procedure been followed? 0%
24 Have the design loads, design envelope, FIT, pressure test requirements 0% been included in the well programme?
25 Have operational limitations or requirements identified in the DESIGN 0% been clearly stated in the Programme?
26 Has the casing programme been subjected to an operational risk assessment0% ? State Reference.
27 Have all risks been worked to as low as reasonably practical? 0%
28 Are outstanding operational risks clearly indicated in the Programme? 0%
29 Does this programme include all relevant Design and Operational learning 0% from previous wells?
30 Directional Programme 0%
31 Has the Directional Basis of Design been approved? State Reference.0%
32 Is the Directional Programme in this well a deviation from the approved0% Basis of Design?
33 If yes, has this deviation been assessed as part of auditable process? 0%
34 Has the Well Planning Audit pack been independently verified and signed 0% off? State document Reference.
35 Does the Programme conform with stated Policy? 0%
36 If not has a Policy dispensation procedure been followed? 0%
37 Have the design limitations for the trajectory, target and well survey been
0% included in the Programme?
38 Have acceptability criteria for well surveys been clearly stated? 0%
41 RKH
 Programme Approvals
||
TECHNICAL PROJECT / GOVERNMENT ||
APPROVAL PARTNER APPROVAL ||
APPROVAL ||
WELL PROPOSAL ||
+ BOD PROGRAM ||
PROGRAM
||
||
||
||
||
PROJECT || ISSUE TO RIG
APPROVAL ||
||
DETAILED || OPERATIONS
PROGRAMS || PROGRAM
+ OPS ||
SEQUENCES ||
||
||
42 RKH
Technical Integrity Assurance Programme

• What is it?
• Why have it?
• How do we do it?
• A practical example of it?
Technical Integrity Assurance Programme
A Systematic, Formal and Ongoing Procedure
to Promote & Confirm

• Projects are Planning & Programming their Well Operations

in a manner that Identifies and Manages the Major Well Risks
• Operations are carried out in line with the Programmes,
Standard Well Systems & Good Practice.
• Learning & Experience is Shared between Projects
• Common Worthwhile Systems are Shared within Projects
Technical Integrity Assurance Programme -
Objectives
• No Release of Hydrocarbons
• Risk to Health & Safety of People from Wells is ALARP
• Promote Cross Project Learning
• Ensure Technical Integrity of Wells & Well Operations within
Individual Projects
• Demonstrate Central Support to Projects
• Major Technical / Financial Risks are Managed
• Confirm Compliance with Policies and Standards
Technical Integrity Assurance Programme -
Process

• Objectives
• Who Should Carry out
• What needs to be Included in the Review
• What has to be Provided to Carry out
• What is done with Results
• How do we confirm success of the Review Process
 Well Reviewer

• Well Engineer in Division / Region

– General awareness of activities
– Knowledge of local conditions
– Independent of day -to-day operations
– Familiar with contracts and major project drivers
– Competence - experienced well construction engineer
Potential to use Petroleum Engineer for Completions
 Data Needed for Review

• Daily, Weekly, Monthly Report

• Early advice of MOFs / Well control incidents
• Approved Drilling, Completion, Testing,
Abandonment Programmes
• Proposed & Actual Well Operations Schedule
• Issued Exemptions to Policies
 Review Commitments (example)

• All Programmes reviewed within 14 days or prior to

operations started
• All daily reports received, read within week received
• Other reports read within 14 days
• Well Team Member will attend first pre-spud
meeting & at least twice yearly
Practical - Technical Integrity Assurance
Programme
• Set-out Specific Objectives of the Review
• Review Individual Well Ops Programmes
– Identify significant Issues-Risk, Safety, Policy, etc
– Identify Critical Activities to be Monitored
Critical Casing Setting Depths
Project Leadership
• Resolve all Issues Identified with Project
• Confirm Critical Activities are Carried Out
• Visits to Confirm Systems Actually Work
 Resources Required

Operations Review Indirect Support Direct Support

Well Operations Review Programme Construction Construction
(Days) (Days) (Days) (Days)
Development Well - Basis of Design 2 N/A N/A
Development Well - Drilling 1 1
Development Well - Completion 1 0.5
Exploration / Appraisal Well (Known Area) 1 2
HPHT Well - Drilling 2 5
HPHT Well - Testing 2 5
 Partex - Kazakstan: Objectives
• No Release of Hydrocarbons
• Risk to Health & Safety of People from Wells is ALARP
• Prevent Poor Practices in Programming and Well Operations.
• Confirm that Staff are Using WEMS
– Tender & Operations
• Promote Cross Project Learning
– Wytch Farm / ETAP Horizontal Wells
– Forties / Wytch Farm Pumped Completions
– Mittelplate - Downhole Pressure Monitoring
• Ensure Project Staff are Familiar with & Comply with Operator, IPM &
Project Policies, Standards and Legislation.
Technical Integrity Assurance Programme

• Review Drilling Engineering Study

– Prior to Tender Submission
• Review Basis of Design
– 6 Weeks prior to spud first well
• Review Individual Well Drilling Programs
– 2 Weeks prior to Spud
• Review Individual Well Completion Programs
– 2 Weeks prior to Operations Start
Technical Integrity Assurance Programme
Define Critical Issues
• Estimated Time vs Depth
– Poor offset Data - (Risk & Reward)
• Policies, Procedures & Regulations
– Partex / Oman Oil Corporation have no Well Policies
• Horizontal Well Length
– Rig Suitability
• Formation Damage
– High Back Pressure Drilling 6” Horizontal Hole
 Well Operations Review - Outputs
Output of Programme & Operations Review
• Programme Review Returned to Project
– Critical Items Identified
– Policies / Standards at Risk
– Relevant Experience from other Projects
• Weekly contact with Project on Operational issues
– Operations Review Closed-out
• Database Well Incidents / MOFs