Drilling Optimization Solutions. Created by: Richard M. Burgess Operations Director

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Drilling Optimization Solutions Created by: Richard M. Burgess Operations Director

Optimized Drilling System: a Workflow More than matching a drill bit, mud and bottom-hole assembly, an Optimized Drilling System (ODS) results from an approach that integrates technology, processes and people across all stages of the drilling process. Well Construction Requirements Wellbore Stability & Geopressure Analysis Design Well Trajectory & Casing Program Drilling Fluids Design Drill Bit and Hole Enlargement Design ODS Engineer BHA Design Drillstring Design Hydraulics Design CONFIDENTIAL - ARION Engineering Services Ltd. 2

Optimization Drilling System: a Workflow Pre Drill Offset Analysis Modeling Execution Performance Review Knowledge Capture Well Objectives Drilling Hazards Geomechanics Performance Analysis Data Base Rock Strength Analysis Drill Bit System Design BHA Hydraulics Road Map Execution RTOC Wellsite Technical Limit Coaching Post run reports Customer review Drilling environment overview Design Review Closing the Loop Capture and Communicate Lessons Learned - Optimize CONFIDENTIAL - ARION Engineering Services Ltd. 3

Why will it help? This service provides experienced engineers with specialized knowledge dedicated to improving drilling performance. Assist in reducing non-productive time Improve drilling performance/reduce operating cost by optimizing drilling rates, hole cleaning and managing actual wellbore pressures Prevent damaging conditions that cause premature equipment failure Improve operational efficiency by determining the correct response to a problem and only performing actions when hole conditions dictate Minimize unplanned events through defined processes to determine the exact conditions at any point in the drilling process Capture and effectively document knowledge and lessons learned for the well delivery process to ensure continuous performance improvement Optimize drilling rates Identify and eliminate vibration and wasted energy Identify optimum hydraulics Recommend optimal drilling parameters for each assembly Prevent damaging conditions that cause premature equipment failure Improve operational efficiency Determine the correct actions necessary to ensure operational efficiency and avoid wasted time by performing them only when the hole conditions dictate Apply knowledge of complex inter-relationships within the drilling process to choose a response to a problem that will not negatively impact other drilling processes CONFIDENTIAL - ARION Engineering Services Ltd. 4

Why will it help? Minimize unplanned events Employ a range of specialized models to determine expected drilling conditions Employ the correct measurements to determine the actual drilling conditions React rapidly to developing problems by identifying any differences between the real-time and modeled responses Provide the correct solutions to drilling problems by determining the root cause through analysis of the appropriate measurements Capture knowledge Experience and lessons learned are effectively documented and accessible to the well delivery process to ensure continued performance improvement Multiple locations can access the experience of an ODS Engineer based in a real-time center (RTC) or remote operations center (ROC) The service focuses on three areas of the drilling process: Drillstring Integrity Hydraulics Management Wellbore Integrity CONFIDENTIAL - ARION Engineering Services Ltd. 5

Drill String Integrity CONFIDENTIAL - ARION Engineering Services Ltd. 6

Drill String Integrity Focuses on: Prevention of mechanical overload Protection from fatigue Protection from excessive shocks and vibration This is achieved by fully understanding the expected conditions and using all available tools to: Model BHA forces and natural frequencies Measure down hole forces and vibration Optimize BHA design and the selection of drilling parameters to prevent premature failure of drill string components Compare the performance of drilling assemblies to determine the most efficient design and bit selection Power in (Rig) RPM Torque Power out (Drill string) Drag Vibrations Power out (Bit, Drive System/BHA, Fluid) ROP Dysfunctions Whirl, stick slip Balling (hydraulics) Operating Parameters CONFIDENTIAL - ARION Engineering Services Ltd. 7

MSE Applied to the Drill String Process (SPE/IADC 92194: Maximizing Drill Rates with Real-Time Surveillance of Mechanical Specific Energy, F. Dupriest, W.Koederitz, presented in Feb 2005 in Amsterdam at 2005 SPE/IADC Drilling Conference) CONFIDENTIAL - ARION Engineering Services Ltd. 8

Why will it help? MSE permits a wider understanding of the whole drilling system. In pre-well planning phase, MSE can be used in conjunction with rock strength analysis to estimate ROP. Gives drilling time expectations. In the execution phase, MSE can be constantly optimised to maximize bit life & maintain optimal parameters for the lifetime of the bit. Comparisons of actual versus predicted MSE s and ROPs can detect drilling dysfunctions. In the post well analysis phase, MSE signatures can be related to lithology, vibration modes and capture the lessons learned. Evaluation of drilling performance and preparation for the next well. Objective - eliminate waste of energy, reduce invisible lost time, reduce vibration and drill efficiently. CONFIDENTIAL - ARION Engineering Services Ltd. 9

Hydraulics Management CONFIDENTIAL - ARION Engineering Services Ltd. 10

Hydraulics Management Focuses on: Managing annular pressures within wellbore pressure boundaries Optimizing circulating system pressure losses Optimizing hole cleaning/reduce clean-up cycles Optimizing ROP without exceeding the maximum EMW Optimizing pipe and casing running speeds This is achieved by fully understanding the expected conditions and using all available tools to: Model static and real-time hydraulics Measure surface and downhole pressures (SPP, internal and annular PWD measurements) Measure flow rates and pit volumes to identify gains/losses to the mud system Use torque and drag road maps to compare predicted and actual conditions to identify hole cleaning efficiency and cuttings bed buildup CONFIDENTIAL - ARION Engineering Services Ltd. 11

Wellbore Integrity CONFIDENTIAL - ARION Engineering Services Ltd. 12

Wellbore Integrity Focuses on: Define the upper and lower wellbore pressure limits Predict pore pressure caused by all mechanisms Predict fracture pressures Predict and identify hole collapse and mechanism of collapse Predict mud losses and loss intervals This is achieved by fully understanding the expected conditions and using all available tools to: Model wellbore pressure limits to define boundary conditions Historical drilling data and regional stress data is used to identify wellbore stability concerns prior to drilling Use measured formation evaluation data and surface acquired data to refine the pre-drill model and reduce uncertainty CONFIDENTIAL - ARION Engineering Services Ltd. 13

Challenges Addressed CONFIDENTIAL - ARION Engineering Services Ltd. 14

Challenges Addressed CONFIDENTIAL - ARION Engineering Services Ltd. 15

Thank you ARION Engineering Services Ltd. MORE KNOWLEDGE, FEWER SURPRISES CONFIDENTIAL - ARION Engineering Services Ltd. 16