Low cost drilling and completion project (North Sea)

David Saul Project Leader Low Cost Infill Drilling ProjectDEA Meeting Low Cost Wells - 12th December 2003

Low Cost Drilling and Completion Project (North Sea)

Beyond the Best Delivery Standard North Sea Diversity Prize for North Sea Low Cost Infill Campaign What is Low Cost Drilling & Completion? Track Record Alaska CTD Field Examples Way Forward

Agenda

New Well Delivery StandardPost WellEvaluationCompletions

Excellence

DrillingExcellenceCapital &

ProductionForecasting

PortfolioOptimization

OptionGeneration

Joint Session of D&C and R&W GO Teams 24th Sept 2003

DrillingExecution

CompletionsExcellence

DrillingExecution

Completions

Wells and Programmes of wells will be planned and executed under the principles of Beyond the Best including Completions Excellence.

HSE management, contract management and Procurement processes will be in place for all operations

The principles of Beyond the Best will be adopted

Mandatory Processes and ToolsDrilling and Well Operations PolicyCommon Process Minimum Conditions of Satisfaction

Available Processes and ToolsCommon Process OnlineCompletions Excellence Completion Efficiency ToolkitBeyond the Best Toolkit

New Well Delivery Standard

CommonProcess

MarketPlace

Technology

People

DrillingExecution

CompletionsExcellence

DrillingExecution

Completions

North Sea Field Diversity

DeepwaterSubsea Developments

DeepwaterPlatform Developments

HPHTFields

OnshoreDevelopments

Jackups withWellhead Towers

DepletedGas Reservoirs

UnconsolidatedSand Reservoirs

FracturedCarbonates

This level of field diversity makes identification of one size fits all silver bullet solutions difficult to develop

Technology Tool Box

Platform TTRD

Subsea TTRD

Coiled Tubing Drilling

Hydraulic Work Over

Drilling

ThroughTubing

Technologies

Increasing Cost

Mono-boreWells

Casing WhileDrilling

Entire NewWell

Technologies

DisposableWells

CementedCompletions

Slim HoleSide-tracks

ERDSide-tracks

Multi-laterals

Solid ExpandableTubulars

CasedHole

Technologies

RotarySteerables

ExpandableScreens

Game Changing Technologies

COST

BBL

Decrease

Increase

Platform TTRDSubsea TTRDCTDCasing While Drilling CWDSolid Expandable Tubulars SETExpandable ScreensSlim Hole Side-tracksCemented CompletionsDisposable wellsOverburden UBD (for ROP)

Multi-lateralsExtended Reach DrillingSmart CompletionsReservoir UBD (for higher recovery)

Barriers

Diversity of Technical challenges and multitude of potential solutions- lack of focus

Technology planning, vision and challenge within existing processes has to improve

Diversity of fields and partnerships makes campaign approach to Technology application difficult.

Identification and definition of small targets

Alaska CTD low cost technology for reservoir access

CTD Objectives: Low cost, high quality horizontal sidetracks. Access previously uneconomic reserves. Offer standard and unique completions. Advantages: Save big $$$ drilling through tubing. High build rates to get to targets sooner. Can drill with wellhead pressure or losses. Coil and jointed pipe capability.

Magnus Technical Challenges Slot constrained EOR campaign in progress New reserves require high step

outs to access

Keys to Success Clear Technology Plan Appropriate resources Team stability Performance culture

Technology Solutions New slots outboard of jacket Slot splitter technology Level 3 Multi-laterals ERD

Wytch Farm

Frome 750m

Bridport 900m

Sherwood 1600m

Technical Challenges Environmentally sensitive area Small pools New reserves require high step

outs to access

Keys to Success Track record of technology

application (10km wells) Appropriate and focussed integrated

team Team stability in small office Low cost culture

Technology Solutions Star Burst Multi-lats (3&4 leg) Bare-foot completions ERD

Foinaven

6 reservoir levels, multiple compartments,

contacts

Technical Challenges Deepwater, harsh environment Expensive wells (c $25m each) Subsea completions Sand control

Keys to Success Technology developed off line by

dedicated integrated options team Material prize Potential to apply technological

solutions on other subsea fields

Technology Solutions Well De-scoping Evaluate multi-lateral opportunities Possible Subsea TTRD application

Way ForwardNorth Sea assets are becoming increasingly dependent on non conventional D&C technology application to unlock remaining reserves competitively.

To be fully successful we aim to:- Focus on 2 or 3 Specific Technologies and put resources in place to support execution and delivery with distinction- Improve Technology Planning within the region to provide clarity, direction and hardware.- Resource Integrated Project Teams early to ensure adequate FEL and rigorous application of BtB

Tender Assist Coiled Tubing Drilling Concept

TTRD or CTD into

Subsea wells

CTD into Platform

wells

Bridge link for access and umbilicals

David Saul Nov 03

706 and Dunbar

Could This be Made to Work?

Alaska developing and using technology to deliver low cost barrels

.and the North Sea?