subsea annulus managementcall for proposals

June 2013

Aims

This is an open invitation to any organisation, from any sector, seeking partners and funding for innovative technologies in the oil and gas industry to submit high quality proposals for research, development and/or field trial of potential solutions that will help address issues related to Subsea Annulus Management.

Justification

ITF members have explicitly identified the current shared challenges they are facing across the industry in dealing with subsea annuli.

Who Should Respond

The invitation is open to all relevant industry sectors and all credible entities from small and medium sized enterprises, to academic and research institutions, to large industry players alike.

Benefits of Participation

• Funding: Up to 100% funding for any stage of the research, development and demonstration cycle

• IP Protection: A proven confidential, collaborative and standard contractual process• Exposure and validated applications for your scientific and technological expertise• Access to the key global players in the oil and gas sector

How to Participate

Your contact point for this challenge is Mark Anju. To contact Mark, please email m.anju@itfenergy.com or alternatively call +44 (0) 1224 222420

Subsea Annulus Management Challenges

The prime areas of concern have been identified by ITF members as follows:

• Pressure management• Well Integrity• Data and Communications• Monitoring of Suspended Wells• Innovative Leak detection and management technologies

Pressure Management

In the subsea environment, when wells are drilled and subsequently cased, B and C annuli are created. Subsea Xmas trees do not provide access to these annuli besides the A annulus between the production tubing and the production casing. Therefore the management of annular-pressure build up (APB) is critical in this environment. For example, if the B and/or C annulus become sealed due to cement top or mud solids outside the next casing string, reaching the shoe of the prior casing string, then we could potentially have overpressure in the B and/or C annuli of the well when flow commences. This overpressure could lead to a failure of one or more casing strings and could also potentially lead to collapse of the production casing string, the key barrier in any well. It is therefore critical to have appropriate pressure management strategies in place to tackle this issue. Whilst there are strategies in place to mitigate against this, the industry requires innovative solutions to address this issue that provide a step change to current practice

The Challenges:

• Solutions to prevent overpressure due to leaks and/or thermal expansion • Technologies to detect and adequately manage overpressure considering pressure

relief methods, penetrations and communication between annuli - Factors to consider include strategies for mitigating against damage during

drilling, installation and operations - Considerations also for design, testing and material selection

Well Integrity

NORSOK D-010 defines Well Integrity as the ““Application of technical, operational and organizational solutions to reduce risk of uncontrolled release of formation fluids throughout the life cycle of a well”. Within the well integrity framework, a variety of areas are managed to ensure well integrity. These are; accountability/responsibility, well operating processes, well service processes, tubing/annulus integrity, tree/wellhead integrity and testing of safety systems. It is imperative that adequate techniques for monitoring well integrity in order for operators to assess the condition and integrity of the well tubulars. Operators regard well integrity as paramount to their operations and would like technologies to assist them in reducing the number of interventions over the life of the well, elongate well life as well as a reduction in operating expenses.

The Challenges:

• Innovative designs of wellheads to allow operators to monitor and control pressure as well as minimise the number of well interventions that will reduce operating expenses

• Technologies for prevention of cement top from the production casing getting into the surface casing shoe

• Develop innovative well life cycle strategies to prolong the life of the well and also develop strategies for well abandonment from day one

• Developing new methods for maintaining integrity through successive casing strings and ensuring casing connections are gas tight throughout the casing string

Data and Communications

Data and communication in annuli is particularly challenging especially in the subsea environment. Operators need to fully understand the annuli conditions to enable them make appropriate decisions and take the appropriate actions with regards to their subsea wells. Especially when there is an abnormal pressure or temperature build up as this may be as a result of an integrity challenge. For example, faulty threads in tubulars, corrosion between annuli or changes in reservoir conditions. There is a requirement for permanently installed devices that survive throughout the life of the well to provide operators up to date, real time information about the well conditions.

The Challenges:

• Technologies that can be installed during well construction to obtain real time measurement in annuli (i.e. pressure, temperature. chemistry) that are reproducible throughout the life of the well

- Solutions must also consider power requirements and how components can be retrieved from the annulus if they require replacement

- Solutions can also consider data transmission rates, for example 1 per week - Modifications for suspended wells can also be considered - There is limited space within the annuli for installation so it is important to consider

size as well - Sensor packaging is also critical especially if acoustic solutions are proposed due to

signal to noise ratios

Monitoring of Suspended Wells

Suspended wells are generally described as wells on which operations have been discontinued. Generally these wells are uncompleted and operations terminated during drilling operations which have not been plugged and abandoned permanently. Operators monitor these wells to ensure hydrocarbons do not seep out of the wells and contaminate the marine environment. In some cases these wells may be suspended for a number of years prior to being produced from. Inspection and maintenance is a challenge especially in remote locations and existing wells where retrofit solutions are challenging.

The Challenges:

• Develop retrofit capability for existing wells that are challenging to monitor and inspect - Considerations also for the frequency of data collection, how data will

be analysed, interpreted and transmitted • For new drilled wells, innovative designs that will allow operators sufficient flexibility to monitor

and manage suspended wells efficiently during the life of the well, that will take into account the dimensions of the annuli

- Considerations also for the frequency of data collection, how data will be analysed, interpreted and transmitted

Innovative Leak Detection and Management Technologies

A variety of studies have taken place into studying leaks, causes and remediation in the subsea industry. Typically leaks are currently detected using techniques such as surface detection, inspection and permanent subsea monitoring. A variety of techniques like acoustics and passive acoustics, bio sensors, capacitance, fibre optics, optical cameras, fluorescent, methane sniffers and mass balance methods are commonly used to detect leaks. Fundamental to operations, early warning systems for detection of leakages enable stakeholders monitor and apply corrective action if required. Innovative solutions are sought to address these issues as well as develop proactive leak detection techniques, therefore these applications should be considered a pre-design requirement.

The Challenges:

• Technologies that can be installed during well construction that are passive but become active upon detection of a leak and seal such leaks (i.e. platelets)

- Component mix of compounds to seal leaks in-situ can also be considered - Components should provide significant advantages over bust discs and foam

• Innovative well designs and materials that can mitigate against thermal expansion and prevent leaks from occurring

• Design technologies that can accurately inform operators when a leak occurs and the causative factors in order to mitigate against future operational challenges

Technology Challenge Timeline

The ITF Technology Challenge follows a staged timeline from the identification of the challenge through to the launch of successful projects. The following list of tasks describes the key milestones and their associated dates.

Action Date

Call for Proposals Issued 13 June 2013

Deadline for Receipt of Proposals 31 July 2013

Publish to Members for Review 14 August 2013

Member Review and Voting September 2013

Technical Clarification Meeting October 2013

Members Finalise Committment to Sponsor November 2013

Note: If there is significant interest in a proposal, ITF has a mechanism for fast tracking projects.

Process for Submitting a Proposal

1. Download & complete the ‘Expression of Interest Form’ This form is available via http://www.itfenergy.com/index/itf-document-download

2. Complete the ‘Project Presentation Template’ This template is available via http://www.itfenergy.com/index/itf-document-download

3. Email the completed ‘Expression of Interest Form’ and ‘Project Presentation Template’ to ITF Email the completed forms in Microsoft Word format (not PDF format) to Mark Anju at m.anju@itfenergy.com no later than 31 July 2013.

Proposals received after this date may not be processed.

ITF’s Role & Approach

The Industry Technology Facilitator (ITF) is a not for profit organisation owned by, major oil and gas operators and service companies. Our key objectives are to identify technology needs, foster innovation and facilitate the development and implementation of new technologies. To date, ITF has been responsible in launching more than 200 new collaborative and revolutionary joint industry projects (JIPs).

• ITF’s is an internationally recognised champion for facilitating research, development and deployment of technology innovation within the upstream oil and gas and related energy industries

• ITF uses a proven process, working in collaborative participation with both its members and industry to identify technology needs and potential solutions

• ITF has contractual confidentiality arrangements with all its members and will enter into a parallel agreement with all developers submitting proposal applications

• Proposals submitted under this Theme will be reviewed for financial sponsorship by all ITF members therefore this is an excellent opportunity to gain a global audience in seeking support for your technology

For details of ITF’s full Portfolio of Members, please visit www.itfenergy.com

Contact Information

If you would like to discuss any matters related to this call or any other issue related to ITF, please contact any of the following people: Technology Challenge Manager and primary contact point for this Call:

Mark AnjuSenior Technology Analyst

e: m.anju@itfenergy.com t: +44(0)1224 222410

info@itfenergy.com

www.itfenergy.com