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Technical limit thinking produces steep learning curve - Shell

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<strong>Technical</strong> <strong>limit</strong> <strong>thinking</strong> <strong>produces</strong><br />

<strong>steep</strong> <strong>learning</strong> <strong>curve</strong><br />

Daysto drill a well went from almost 100to below 60 daysin Saih Rawl.<br />

OlutayoAjimoko,Petroleum Development Oman*<br />

<strong>Technical</strong> <strong>limit</strong> <strong>thinking</strong> is a conceptual feedback tool for<br />

maximizing drilling efficiency.It involvesfirst determining the<br />

conditions and engineering practicesthat willlead to the minimum<br />

time and/or cost at which a given well can be drilled,<br />

and then employing motivational and training techniques to<br />

implement those practices. <strong>Shell</strong> and Petroleum Development<br />

Oman (PDO) produced a highly developed technical <strong>limit</strong><br />

program for the challenging Saih Rawl gas field, which culminated<br />

in the landmark drilling of the field'sfirst sub-60-day<br />

well, Saih Raw1228, in 57.89 days, against an AFE time of75<br />

days. <strong>Shell</strong> and PDO leveraged the methodology to further<br />

teamwork, knowledge management and bit optimization to<br />

progressivelyreduce well construction time.<br />

BACKGROUND<br />

Saih Rawl is an onshore deep gas field in southern Oman<br />

and the biggest gas field in the country. It is split into three<br />

geographically and tectonically separated blocks: SR Main to<br />

the north, SR Graben and SR South, Fig. 1.<br />

The field is a large, elongated northeast-southwest-oriented<br />

anticline, with the anticlinal axisdipping to the southwest. A<br />

system of northwest-southeast-trending faults delineates and<br />

sealsthe structure's northern boundary. The varying compartmentalization<br />

of the fault system accounts for the high anisotropy,<br />

and thus for the extreme drilling challengesencountered<br />

in the different lithological packages.<br />

A typical well design in the Saih Rawl field starts with a<br />

I7Y2-in. hole from surface to the Naith limestone at about<br />

950 m (3,100 ft) to set 133h-in.casing.This is followed by a<br />

I2IA-in. section to about 3,200 m (10,500 ft), where the 9%in.<br />

casing is set in the AI KhlatalHasira formation. Thereafter,<br />

a 2,050-m (6,730-ft), 83h-in.section is drilled to section TO<br />

in the Amin formation. The I7Y2-in.section and I2IA-in.section<br />

are drilled on rotary.<br />

At the beginning of field exploration in 1991 and of exploration<br />

on surrounding wells, the 83h-in. section was initially<br />

drilled with roller-cone bits on rotary assemblies.In the intervening<br />

time, roller-cone bits have been gradually replaced by<br />

diamond-impregnated bits, so that by 2005, the entire 83h-in.<br />

section from drillout to TO was drilled almost exclusivelywith<br />

turbine drive systemsand diamond-impregnated bits.<br />

TECHNICAL LIMIT WELL<br />

The technical <strong>limit</strong> is defined as a measure of perfect performance<br />

<strong>limit</strong>ed only by technology availableand/or by the<br />

'Since writing this article, Mr. Ajimoko has changed employment. He now<br />

works for BP.<br />

DRILLING TECHNOLOGY<br />

laws of physics. In well drilling, this performance measure is<br />

the minimum possible time and/or cost to drill a typical well<br />

in a given field. In Saih Rawl, lessonslearned in previouswells<br />

helped the team to identify the optimization practices that<br />

would lead to a technical-<strong>limit</strong> well, Fig. 2. Among these:<br />

· A Le Fleur circulation packer could be used, and downtime<br />

could be minimized to reduce the flat spot berween the<br />

I7Y2-and 12IA-in.sections.<br />

· A higher-capacity centrifuge could optimize hydraulics<br />

to speed up the 8%-in. section. · A wireline formation tester could be run to eliminate<br />

three logging trips and a wiper trip.<br />

In addition, the technical <strong>limit</strong> well would maximize trip<br />

efficiencies,optimize hole cleaningand mud conditioning and<br />

increasebit life.The team determined the Saih Rawl technical<br />

<strong>limit</strong> well time to be 32.7 days.<br />

Removingtechnological<strong>limit</strong>ations from the equation yields<br />

the "perfectwell time," a theoretical construct that can be useful<br />

for defining drilling targets. The perfect well time is the<br />

minimum time in which a well could be drilled <strong>limit</strong>ed only<br />

by the physics of the drilling practice, calculated from clearly<br />

definedphysicalfactorsthat constrain the drilling time: the rock<br />

strength, operational <strong>limit</strong>s, number of casingstrings,hole size,<br />

etc.The perfectwell time in Saih Rawlis 18.4 days,Fig.3.<br />

WELL CONSTRUCTION<br />

Historically, about 70% of the total well construction time<br />

in Saih Rawl, as in most deep gas wells, is spent drilling ahead<br />

and tripping. The bit penetration rate and bit life, therefore,<br />

both have a major impact on well construction time and cost.<br />

Hypothetically, if both penetration rate and bit life could be<br />

doubled, an average 30% total reduction in drilling time and<br />

cost would result.<br />

A dynamic drilling optimization process has evolved for drilling<br />

the Saih Rawl field. The drilling program employed on Saih<br />

Rawl 228 involved drilling the I7Y2-in. tophole section with a<br />

roller-cone bit to a TVD of959 m (3,150 ft) in the Naith-A formation<br />

and casing off with I33h-in. casing. The casing was set<br />

about 15 m (49 ft) into the Naith-A limestone to minimize the<br />

exposure time of the Shargi shales and to reduce casing costs.<br />

Next, rwo PDC bits on rotary drilled the I2IA-in. surface-hole<br />

section to a TVD of 3,049 m (10,000 ft) in the AI Khlata sandstone,<br />

and it was cased off with a 9%-in. casing. It was critical in<br />

this hole section to case off the potentially hydrocarbon-bearing<br />

Shuaiba and Mafraq formations above the AI Khlata, and to isolate<br />

the troublesome and time-dependent Gharif shales.<br />

The 83h-in. section was drilled to a TVD of5,287 m (17,350<br />

ft) in the Amin formation with four diamond-impregnated bits<br />

World Oil JULY 2007 103


DRILLING TECHNOLOGY<br />

....... I. . . . .<br />

'~ ...~.... ....... ;.:.:.:.<br />

......... .......<br />

:I:.:';,-.:.:.: I . .~. . .<br />

:.:-:':.:.:.:':<br />

...,.... .. ....... ,.11I......<br />

.' '.".... , ~ ...118....<br />

I<br />

Formation<br />

FiqaArada<br />

FiqaShargi<br />

NaithAIB<br />

!NaithE.<br />

.NahrUmr<br />

Shuaiba<br />

Kharab<br />

Lekhwair<br />

Habshan<br />

Tuwaiq<br />

Dhruma<br />

Mafraq<br />

Sudair<br />

KhuffU<br />

KhuffM<br />

KhuffL<br />

GharifU<br />

1>fiarifM<br />

GharifL<br />

AIKhlata<br />

Baseincise<br />

valley<br />

188<br />

230<br />

974<br />

1;'237<br />

1,391<br />

1,481<br />

1,546<br />

1,585<br />

1,808<br />

1,933<br />

1,973<br />

2,110<br />

2,182<br />

2,237<br />

2,693<br />

2,879<br />

2,988<br />

3,061<br />

3,110<br />

3,207<br />

SahNihayadal 3,424<br />

Ghudun I 3,564<br />

Barakat<br />

Mabrouk<br />

455<br />

762<br />

2,351<br />

4,370<br />

4,442<br />

4587<br />

4:j94<br />

4800<br />

.5'010<br />

-<br />

5,348<br />

"'5;166-<br />

5.363<br />

:10<br />

:10<br />

:10<br />

:10<br />

:10<br />

:10<br />

:10 I Possible<br />

:10 losses<br />

:10<br />

:10<br />

:10<br />

:10 Possible<br />

:10<br />

:10 I<br />

:10<br />

losses<br />

Possible<br />

losses<br />

:10<br />

:10 Water<br />

:1:1If<br />

:10 1<br />

:10<br />

Water<br />

Water<br />

:10<br />

:10<br />

:10<br />

:10<br />

:10<br />

Gas/cond.<br />

Gas/water<br />

Water<br />

Gas-<br />

-mis<br />

Water<br />

Fig. 1. A stratigraphic column showing the formation tops<br />

associated with the Saih Rawl gas field.<br />

on turbine. The 83/s-in.section servedasboth the intermediate<br />

and production sections.A tapered completion string of 4\12<br />

x 5 x 5Y2-in. chrome tubular was then run and cemented in<br />

place.The chrome tubular was selectedto mitigate corrosion.<br />

The 83/s-in.section presentsthe greatestchallenge to successfully<br />

drilling useableholes in Saih Raw!, becausethe rock<br />

strength is very high, with unconfined compressivestrength<br />

sometimes on the order of 60,000 psi. In addition, local lithological<br />

variation, compounded by diverse anisotropies, makes<br />

drilling optimization difficult. It follows that this is the most<br />

104 JULY2007WorldOil<br />

E 1,000<br />

.c<br />

c.<br />

CD<br />

"C<br />

~3,000<br />

5,000<br />

SaihRawltechinical<strong>limit</strong><br />

well time=32.7days<br />

Rig days<br />

ITI1)Wheeledloads;2) Nightmoves;3) Sparemudtanksandauxiliaryequipt;<br />

4) Incentivesfor movers.<br />

~ 1)OriIl1~-in. sectionin36hours;2)Optimizeholecleaningandhydraulics.<br />

[[] 1)Minimizedowntime,reduceflatspot;2) EmployLeFleurCirculationpacker.<br />

@]1)OriIl12'4-in.sectionin4 dayswith 1 POCbit,includingwipertrip;<br />

2)Optimizehydraulics;3) UsemodifiedOBM.<br />

[[] 1)Increasetrip efficiency;2)Improveholeandmudconditioning.<br />

[I] 1)Orill83/s-in.sectionin 2 bit runswI infinitelydurableimpregnatedbits.<br />

2) InstallcentrifugewI highercapacityto optimizehydraulics.<br />

II] 1)Runpressuretesterandeliminate3 loggingtrips pluswipertrip.<br />

Fig.2. The drilled depth is plotted againsttime for the<br />

technical <strong>limit</strong> well, along with practices that would be used to<br />

achieve the <strong>limit</strong>.<br />

'"<br />

Theperfectwell<br />

(18.4days)<br />

to<br />

C<br />

'"<br />

Ec<br />

'5i<strong>Technical</strong><strong>limit</strong><br />

Q..well(32.7days)<br />

Basecase<br />

well(60.7days)<br />

-----------.<br />

ILaserdrilling(6)I<br />

IIntelligentandautomatedrigsystem(F)I<br />

Liquidcasing/drillingwithcasing(E)I<br />

IIntelligentrockandfluid evaluationlogs(0)I<br />

~<br />

IMaximumvaluedrilling(C)I<br />

I Minimumcostdrilling(B)I<br />

~<br />

IOptimizedrig moves,offlinemaximization(All<br />

Experience<br />

Fig. 3. The performance <strong>curve</strong> of the perfect well is shown.<br />

crucial hole section, accounting for about half of total well<br />

construction time. Moreover, it penetrates the Miqrat and<br />

Barik objective reservoirs.Drilling the section with diamondimpregnated<br />

bits is a lesson learned following several uneconomic<br />

and failed attempts to drill the section with PDC bits<br />

on rotary and with motors.<br />

CRITICAL SUCCESS FACTORS<br />

Approaching the technical <strong>limit</strong> requires optimizing all the<br />

factors that enter into the drilling operation. Optimizing the<br />

staff includes both increasing their productivity and encouraging<br />

and using crew members' ideas for optimizing other<br />

factors, such as knowledge management and drillbit performance.<br />

<strong>Shell</strong> and PDO used these strategies in Saih Rawl to<br />

cut well time by over 40%.<br />

Teamwork. The foundations of any successful team effort<br />

are open, free communication and a shared goal.The rig team<br />

is put on an incentive program at the beginning of the contract,<br />

and the performance incentive goal bonds the rig team<br />

together. The rig team consists of the drilling contractor, the<br />

service vendors and the drilling optimization engineer. The


DRILLING TECHNOLOGY<br />

160<br />

140<br />

120<br />

100<br />

en<br />

~ 80<br />

60<br />

40<br />

20<br />

o<br />

...............<br />

Saih Saih<br />

Rawl Rawl<br />

197 204<br />

Saih Saih Saih<br />

Rawl Rawl Rawl<br />

208 215 221<br />

I<br />

Saih Saih<br />

Rawl Rawl<br />

225 228<br />

Fig. 4. Lessons learned while drilling the Saih Rawl204<br />

well helped operators progressively reduce drilling time to<br />

ultimately achieve a sub-50-day well.<br />

cohesiveness established early in the campaign has sustained<br />

the continuous performance improvement of the rig. The initial<br />

motivation for performance was the reward incentive, but<br />

this was largely superseded by the operational excellence principles<br />

and technical <strong>limit</strong> philosophies that the drilling office<br />

team incorporated into the modus operandi. The following<br />

key points are worth mentioning:<br />

· Continuity. The rig has maintained most of the crew<br />

members who began the contract in 2003. As a result, rig efficiency<br />

and effectiveness have been excellent.<br />

· Competition. Desire to outperform other rigs in the<br />

field forged a stronger bond between the rig team and the office<br />

team, perhaps overriding the team incentive alone.<br />

· Communication. Goals were clearly communicated and<br />

understood across the team.<br />

· Operational Excellence. OE is a process-oriented enterprise<br />

program that drives improvements in the way a work<br />

group or corporation delivers products and services to its customers.<br />

Operational excellence calls for more than subject<br />

matter expertise and a talented internal team.<br />

The OE philosophy in PD~'s Exploration and Gas department<br />

aims to incorporate the following principles:<br />

Ideas from field staff drive success. The Saih Rawl well<br />

engineering and rig team members are motivated to improve<br />

operations. Team members are respected and their suggestions<br />

are encouraged. A constant feedback and feed-forward cycle<br />

ensures continual improvement.<br />

Analysis paralysis breeds crisis. Rather than focusing on<br />

analyzing potential problems or improvement opportunities,<br />

which may allow them to become much more troublesome<br />

and costly, team members are empowered to make decisions<br />

and solve problems at the lowest possible level. This has minimized<br />

operational failures while drilling in Saih Rawl. Every<br />

team member is empowered to stop work not only for safety,<br />

but also to increase operational excellence.<br />

Ideas need champions. Leadership in the department<br />

aims to encourage originators of ideas to champion them by<br />

spearheading the efforts to develop and implement them.<br />

Team leaders also sometimes discretionally select champions<br />

to serve as focal points, enabling an all-inclusive performance<br />

improvement environment.<br />

Knowledge management. The Saih Rawl experience illustrates<br />

that the time value of knowledge supersedes the time<br />

value of money, especially when drilling for deep gas. The primary<br />

objective of the team's knowledge management strategy<br />

106 JULY 2007 World Oil<br />

--......- - -<br />

-<br />

- -<br />

- -<br />

Fig. 5. The 12V4-in.Hycalog DSX290A2 PDC drillbit.<br />

wasto drill each hole section correctlythe first time. Recycling<br />

of knowledgeand lessonslearned were de-emphasized in favor<br />

of reinforcingpracticesworth replicating or best practices, and<br />

this expedited decision making.<br />

Total Quality Well Delivery(TQWD) was achievedin Saih<br />

Rawl field by adequately managing lessons learned from past<br />

wells and applying them to subsequent wells, Fig. 4. Team<br />

motivation was emphasized over complex logic to achieve<br />

TQWD.<br />

Benchmarking also played an important role. Historically,<br />

three KCA Deutag rigs operated in the field since 2003, and<br />

they all drilled the same well types. Therefore, data exchange,<br />

information sharing and benchmark practices worth replicating<br />

were easilyestablished,and most of the unpleasant lessons<br />

did not have to be learned twice.<br />

Staff continuity also contributed to maintaining a useful<br />

knowledge base. Staffmembers moving up or moving on had<br />

replacements waiting within the crew and being mentored.<br />

This practice and long tenures (at least 2 yr) of the incumbents<br />

have facilitated a downward trend of the performance <strong>learning</strong><br />

<strong>curve</strong>. Extensive lessons were learned on Saih Rawl 204,<br />

which took more than 130 days to drill. The well was especiallyproblematic<br />

due to the difficult directional work carried<br />

out, and the lessonslearned were passed on.<br />

Knowledge management in the Saih Rawl field has had to<br />

be dynamic since 2003, becauseat any point in time there are<br />

at least three rigs drilling different hole sections or performing<br />

different phases of well construction. The drilling team<br />

was given the rare opportunity of simultaneously <strong>learning</strong>before-doing,<br />

<strong>learning</strong>-while-doing and <strong>learning</strong>-aFter-doing.<br />

The end result is the progressivedownward trend in <strong>learning</strong><br />

<strong>curve</strong> time.<br />

Bit optimization. The biggestfactor to reduce wellconstruction<br />

cost and time is drilling useable boreholes more quickly.<br />

Bit optimization is a continuously evolving process in Saih<br />

Rawl field. Drilling optimization engineers, supplied by the<br />

vendors who worked in the PD~ officeas part of the rig team,<br />

have sped up bit technological advancement and optimized<br />

the bit-application process.


Fig. 6. The 83fa-in.Smith K507BCTPXX diamond-impregnated<br />

bit.<br />

To date, the biggest improvement has been recorded in the<br />

121,4-in. section with innovative developments in POC bit<br />

technology. The typical formations penetrated in the 121,4-in.<br />

section include shale, sandstone, limestone, clays, dolomites<br />

and sometimes streaks and beds of pyrite, the latter having been<br />

penetrated in the dolomitic limestone of the Khuff formation.<br />

To improve drilling efficiency and meet the challenges<br />

posed by the formation vagaries, the bit design has undergone<br />

several iterations and revisions in cutter size, number of<br />

blades, diamond hardness and bit proflle. The POC bit durability,<br />

stability and aggressiveness also have undergone several<br />

tunings and re-tuning.<br />

The Hycalog OSX290 drillbit has proven to be a game<br />

changer, as the bit has helped reduce construction time in the<br />

121,4-in. section by an average of 41 %, Fig. 5. The bit has a<br />

parr-ring design that ensures total lateral stability and a proprietary<br />

"steering wheel" to ensure good borehole quality.<br />

Notable progress has also been recorded in the 83h-in. section<br />

typically drilled with a diamond-impregnated bit on a<br />

turbine drive. The hole section is very tough due to the uncompromising<br />

mix of lithologies, and reliability is the prime<br />

objective. The Smith K507BCTPXX has proven to be the<br />

most reliable bit from the stock on offer; the choice was<br />

reached after several wells, Fig. 6.<br />

There are two scenarios for performance opportunity in<br />

this section. The first is improving the durability of diamondimpregnated<br />

bits and making them stay in the hole longer.<br />

This strategy gives a longer section interval but at a slower<br />

drilling rate. The second scenario is sacrificing the durability<br />

to achieve faster ROP. The downside to this strategy is that it<br />

will require more bits to drill the section. So far, the second<br />

scenario has given the best result and is the preferred strategy.<br />

The most critical success factor is pulling the bit at the right<br />

time, and this was determined by employing Minimum Specific<br />

Energy (MSE) and Economics Gradient Curves (EGC).<br />

DRilLING THE LIMIT<br />

<strong>Technical</strong> <strong>limit</strong> is a means to an end, not an end in itself It<br />

is only a vehicle to stimulate creative <strong>thinking</strong> and shift paradigms<br />

from the school of "business as usual" and "this is the<br />

way we do it," to a "what if?" or "can do" mentality. If an organization<br />

or business does what it has always done, the same<br />

results will be achieved.<br />

Living the <strong>limit</strong> raises the bar of operational excellence and<br />

safety by two notches. First, it involves innovative <strong>thinking</strong>,<br />

employing synergies and taking creative ownership of the results.<br />

Creative ownership of results involves turning failures<br />

into launching pads to future success and perpetually pursuing<br />

business improvements. Implementation of technical <strong>limit</strong><br />

<strong>thinking</strong> in the Saih Rawl has contributed to well cost and<br />

time reduction of over 40% since its implementation. WO<br />

THE AUTHOR<br />

Olutayo Ajimoko worked for <strong>Shell</strong> E&P as a well<br />

engineer in charge of two heavy land rigs drilling<br />

deep gas in the Saih Rawl field. He provided singlepoint<br />

well engineering, operations and logistics<br />

support to the combined drilling budget. He joined<br />

Petroleum Development Oman as a well delivery<br />

consultant and was actively involved in the implementation<br />

of the technical <strong>limit</strong> philosophy. He<br />

cross-trained as a production technologist with<br />

extensive deepwater experience working for Star<br />

Deep Water Petroleum Ltd. in Nigeria and the US. Mr. Ajimoko previously<br />

worked for Texaco and Chevron. He is currently employed by BP.<br />

'''T~. ..1..1 ,",-:1 II II \J '"'11"'1"''1"'"7

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