quality in drilling and completion

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Junior Production Engineering/Best PracticesRev. 00 - Jan. 05/EP

of 53Eni Corporate University – Eni E&P Division

G R O U P

QUALITYIN DRILLING & COMPLETION

ACTIVITIES

C. LANZETTA





QUALITYIN DRILLING & COMPLETION

ACTIVITIES

C. Lanzetta





WHAT IS QUALITY?

WHAT IS QUALITY ASSURANCE?

WHAT IS QUALITY CONTROL?

WHAT IS TOTAL QUALITY MANAGEMENT?

Quality Definitions





• It is the capability of a product or service to

satisfy the specified Customer Requirements• It is the key to Customer satisfaction

• It is the main tool to reduce / eliminate : – mistakes

– defective materials (and extra costs)

– inefficiencies in the processes

What is Quality?





What is Quality?

Agreed Upon Requirements

Wants

Needs

Agreed-Upon

Requirements





• extra costs

• something that is added to the process

• a method to produce extra paper

• a more expensive method to do the same job

• a new idea

Quality is not





What is Quality Assurance (QA)?

A useful definition of QA is that it is:

A Management System designed to givemaximum confidence that a given acceptable

level of quality is being achieved in a Product orService with a minimum total expenditure.






– QA is what a lot of us call Good Management

Practice– The essence of QA is contained in the statement:

• GET IT RIGHT

• FIRST TIME (no reprocessing)• EVERY TIME (process consistency and repeatibility)

• ON TIME

- To achieve this, business must be managed in alogical and organised manner.






IT IS NOT:

• something that is added on or into a process orsystem,

• a method of producing more paper,

• a more expensive way to do the same job,• and its not a new idea.





What is ISO 9000

ISO 9000 is a series of standards that establish minimum

requirements for Quality Systems.They describe a system for planned and defined activitiesthat assures attainment of a minimum level of quality thatmeets the requirements of contracts and evidence that those

requirements have been met.





Evolution of ISO 9001 QMS Standards

• ISO 9001:1987

• ISO 9001:1994

• ISO 9001:2000

• ISO/TS 29001:2003 &API Q1 (7th Ed.)(Identical Standards)

– ISO 9001 Published and began gaining popularity worldwide as a QualityManagement System Standard.

– Recognized as a set of “good business practices”, many of which most “good” companies already implementing.

– Contained 20 Quality System “elements” covering all phases of anorganization’s activities (excluding commercial).

– Retained 20 element format and tightened up some verbiage to reducebroad interpretations of some requirements.

– Added new requirements for “Design Validation” to existing “DesignControl” requirements.

– Added requirements for “Preventive” actions in addition and to supplement “Corrective” actions.

– Changed from a 20 element format to a 5 element format.

– Objective to cover all industries (including service organizations, software,etc.).

– Added new requirements for Quality Objectives, Customer focus andcommunication, continuous improvement.

– Reduced number of documented procedures from 19 to 6 [ i.e., 1)

Document Control, 2) Records Control, 3) Audits, 4) Control ofNonconforming Product, 5) Corrective Action, 6) Preventive Action.]

– QMS Requirements for Petroleum, Petrochemical and Natural GasIndustry. (Effective Sep 15, 2003 and Dec 15, 2003 respectively)

– Incorporates ISO 9001:2000 verbatim and includes supplementalrequirements of 9001:1994 and API Spec Q1 6th Ed.





What is a Quality Management System?

A Quality Management System means that all your:

– SYSTEMS,

– PEOPLE AND

– PROCESSES

are welded into one cohesive system to give you and yourcustomers the maximum confidence that you are consistentlyachieving an acceptable level of quality. To remain

competitive you must achieve this objective with a minimumtotal expenditure.





What is Quality Control (QC)?

Quality Control is the totality of activities (measurements,

tests,...) that ensures that bad Products and Services areseparated from good products and that the customer doesnot receive the bad products.

Quality control activities (e.g. inspection) are a cost which donot directly add value to the product or service – however,they do provide confidence that all problems will be identified

and resolved before it is too late.





What is Quality Control (QC)?

Q.C. is part of the Quality System.

Q.C. is the physical checking that the work has been performedaccording to Contractual Requirements.

The results of Q.C. are such things as:

– Reports (NDT/Destructive Testing)– Pressure tests charts/NDT Graphs

– Mill Test Certificates





QA and QC

If your QC activities continually find errors it means that your

QC system is working well but that your fundamental QASystem is not working.

If you have a good QA System your QC will prove that workis being done correctly.

The Quality of a product starts at the beginning not at theend when you do your QC.





Quality Management System (QMS)Drilling & Completion

ContinuousImprovement

EngineeringWell Design

Construction /OperationalExecution

Goods / ServicesProcurement

Customers’ Requirements

Engineering Well Design

Goods Procurement

Services Procurement

Incorporate and DisseminateLessons Learned

Final Well Documentation /

Evaluate KPI’s / Lessons Learned

Well Completion(Installation of Equipment)

& Execution of Services

Well Drilling(Installation of Equipment

& Execution of Services)

Planning & Budgeting (P&B)





DRILLED WITH MINIMUM SHIFT FROM DESIGN TRAJECTORY

ORE TARGET ACHIEVEMENT WITHOUT ANY FORMATION DAMAGE

REGULAR HOLE SURFACE (SKIN FACTOR)

GOOD CEMENTING OF ALL CSG. STRINGS

CORRECT FUNCTIONING OF ALL SEALING PARTS

DRILLED AND OPERATED WITHOUT ANY ENVIRONMENTAL DAMAGE

Quality Requirements in Wells Construction





SUPPLIERS QUALIFICATION

VENDOR LIST UPDATING

PROCEDURES REVIEW

TECHNICAL SPECIFICATIONS

QUALITY PLANS

CLARIFICATION AND KICK-OFF MEETINGS

CONTINUED...

Q.A. in Well Operations





FIELD AND MANUFACTURING SURVEILLANCE

AUDIT AND ASSESSMENT

FAILURE ANALYSIS

FEED-BACK MANAGEMENT

QUALITY RECORD MANAGEMENT

Q.A. in Well Operations





NOT REPEAT THE SAME ERRORS

MAKE STATISTICS AND CALCULATE QUALITY INDEX FOR SUPPLIERS,GOODS AND SERVICES

CONTROL THE TIME EVOLUTION OF PARAMETERS AND INDEXESRELEVANT TO SUPPLIERS AND SERVICES

SUPPORT SUPPLIER QUALIFICATION

MEASURE IMPROVEMENTS AND FIX NEW QUALITY TARGETS

FEED-BACKIs essential to:





PERFORMANCE EVALUATION

SYSTEMS FOR Eni-Agip VENDORS

Drill ing, Completion & Workover





TOOLS USED TO COLLECT FEEDBACK

• Form FB 01 (rig-site)

• Form FB 02 (District)

• Form “Evaluation of fluids assistance

service suppliers”

• Audit and technical assessment report

Performance evaluation systems for Eni vendors





FB01 - Malfunction & Failure Report

Originates the report

Contractor’s comments

Rig site

Operating Base

District

Add comments

and cost lossClassification

Data base

Headquarter

Performance evaluation systems for Eni-Agip vendors





FB02 - Contractor Evaluation

FB01

Originates the reports

at the end of the job

Operating Base

DistrictRig si te Headquarter

Classification

Database







FB01

Rig site

FB02

Operating base

DistrictHeadquarter

Elaborates Data

Evaluates Indicators

Analyses Trends

Contractor’s Evaluation Process





PERFORMANCE AND RELIABILITY

INDICATORS

• Failure indicator (IF) from forms FB 01

• Performance indicator (IP) from forms FB 02

• Deviation indicator (IS) from fluids service evaluation

forms

• Scoring model for audits






FAILURE INDICATOR (IF)

I.F. = Economic value of failures x 100

Total Invoiced






Performance indicator (IP)

I.P.Rig = (scores x weights)

I.P.Supplier = (scores x weights)

n° of wells






USING FEEDBACK AND INDICATORS

• Monitoring the quality of the services offered by each Contractor – Updating of the Vendor List

• Performance of inspections/audits of vendor quality systems

• Support for technical opinions in tenders• Update of technical specifications, internal standards and company

procedures

• Identification of particularly critical areas• Calculation of indicators and coefficients to realign economic

aspects in the tenders when assigning “type A” contracts






ORGANISATION CHART

STAP DEPARTMENT

Drilling & CompletionStandards

Well DataAcquisition &Management

TechnicalSpecificationsEquipment &

Services

OperatingManuals & Procedures

&KnowledgeManagement

Well Equipment& Materials

Q.C.

OperationsFeedback

Cost Control





Eni E&P Division - SPEO/STAP

Drilling & Completion Manuals & Procedures System

Best Practices and Fundamentals





The Drilling & Completion

“Manuals & Procedures” System

of Eni E&P division





Provide a corporate standard for all contexts where

Eni Agip operates either directly or through its Subsidiaries, in

order to lay the foundations of

Aims of the “Manuals & Procedures”

improved integration between men and tools

and synergy between Corporate Headquartersand Operating Districts/Companies worldwide





The manuals issued over recent years by theSPEO/STAP “ Manuals and Procedures” Unit

Drawn up on Eni E&P experience

The technical know-how and experience that SPEOpersonnel has gathered working in the operative districts

in Italy and abroad

The external “ state of art” , through the contribution of

contractor company specialised in preparing manuals for

several major oil companies

The Drlling & Completion manuals are prepared on the

basis of :





Drilling & Completion

Manuals & Procedures

System Manuals

Best Practices

Procedures

Corporate Headquarters

Technical Know-how and

Experience gathered in the

Districts and Subsidiaries

Integration of the

external “ state of

art”

SPEOSpecialists in SPEO

The Manuals & Procedures System

O i i f h





Agip Charter of

Fundamental Company

Principles

Drilling & Completion(SPEO) Activ ity Process

Design / EngineeringManuals

General OperativeProcedures

Specific Manuals

Specific Procedures

Operative ProgramsJob Instructions

Agip Charter of

Fundamental Company

Principles

Drilling & Completion(SPEO) Activ ity Process

Design / EngineeringManuals

General OperativeProcedures

Specific Manuals

Specific Procedures

Operative Programs

Job Instructions

Organisation of the

“Manuals & Procedures” System Agip Charter

SPEO Activity

Best Practices

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“Best“Best PracticesPractices and Minimumand Minimum RequirementsRequirements for for

Drilling & CompletionDrilling & Completion Activities Activities” ”





They are a sort of “ route map” which gives the best

operative practices and addresses to the documentsof the Manuals & Procedures System

BP & MR Contents

The contents are organised in 3 main sections:

Planning

Operations

Reporting & Feedback

(PL)

(OP)

(RF)





A sample of BP & MR Contents






““DrillingDrilling && CompletionCompletion Fundamentals” Fundamentals”





The “Drilling & Completion Fundamentals”

Drill ing Design Manual

Drilling Procedures Manual

Casing Design Manual Directional Control and Surveying Procedures

Well Control Policy Manual

Overpressure Evaluation Manual

Drilling Fluids Operations Manual

Completion Design Manual

Completion Procedures Manual

Well Test Procedures Manual

General Wireline Procedures Manual





Casing and Tubing Design

Down Hole Safety Valves Engineering and Maintenance Tubing Connections Selection

Well Name Designation

Preparation of the Geological and Drilling Well Program

Preparation of the Final Well Report

Reporting Forms preparation after each operation

Handling and Running Procedures for Tubular Equipment

Wellsite Safety Procedures in H2S Environment

Simultaneous Operations Procedures

etc.

Contents of the 11 “ Fundamentals”

A step beyond the titles to understand what is inside :





Covering the main Drilling & Completion activities

(for both Planning and Operations)

Reduced spreading of information on numerous documents(the “Fundamentals” are 11 manuals)

Organisation of the manuals to allow easier diffusion in Eni Agip Districts and Affiliated Companies (all documents are

written in English)

Features

A)

B)

C)





The manuals are available to all Eni AGIP Districts and

Subsidiaries worldwide in the following formats :

HARDCOPY - both A4 and A5 (this is the very poular pocket book format)

SOFTCOPY - accessible by logging onto the SPEO Web site in the Eni

Intranet network (feasible for the Corporate Headquarters Units, the Italian Districtsand several Eni Agip Subsidiaries worldwide)

SOFTCOPY - on dedicated CD-Rom (very useful for foreign Subsidiaries where

connection with Eni Intranet is not available or for rig site utilisation)

Distribution of the “Manuals & Procedures”





Drilling & Completion WORLDDril ling & Completion WORLD--WIDE ACTIVITIESWIDE ACTIVITIES

CHINACHINAUKUK

NORWAYNORWAY

AZERBAIJAN AZERBAIJAN

KAZAKHSTANKAZAKHSTAN

EGYPTEGYPT

LIBIALIBIA

ALGERIA ALGERIA

TUNISIATUNISIA

USAUSA ITALYITALY

ECUADORECUADOR

BRAZILBRAZIL ANGOLA ANGOLA

NIGERIANIGERIA

CONGOCONGO

DRILLING SHIP Saipem 10000DRILLING SHIP Saipem 10000





Eni Agip Division

Drilling & Completion Manuals & Procedures System

JOURNEY THROUGH THE MANUALS





The Best Practices & Minimum Requirements document is

the basis for the preparation of the Check Lists we use to

carry out the Assessments of Drilling & Completion

Operations in the Districts and Subsidiaries

Audit Check Lists

Organisation of the

Agip Charter





Organisation of the

New “Manuals & Procedures” System

g p

SPEO Activity

Best Practices

M a n u a

l M a

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M a n u a

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quality in drilling and completion

Documents