Tài liệu THE OFFICIAL 2013 OFFSHORE TECHNOLOGY CONFERENCE NEWSPAPER pdf

Although this single company is, of course, justtheoretical, Roelofsen’s point is that further industrycollaboration could go a long way toward achievingsome of the gains that the single

Technology Drives

Exploration Focus

n With more than 40 major upstream projects slated through the end of

the decade, BP is relying on technology and a talented workforce to meet

future energy demands.

BP plans to help meet the world’s growing energy

de-mand by pumping as much as 80% of its capex into

upstream operations

Technology will be at the heart of meeting the demand,

which is expected to jump 36% by 2030, creating a need

for 16MMb/d more oil than is needed today, according

to Lamar McKay, BP’s upstream chief executive

Speaking during the sold-out “Unlocking the Future:

BP’s Global Upstream” topical breakfast Monday at OTC

2013, McKay said BP plans to drill as many as 25 new

ex-ploration wells per year as the company continues to

ac-quire and interpret seismic data

“By testing at least 10 new material conventional and

unconventional opportunities every decade, we want to

be able to add at least two more new significant

produc-ing areas over the next 10 years, each with multibillion

barrel potential,” McKay said “Worldwide, we have

ac-cessed acreage coveringmore than 150,000 sq milessince 2010 at’s an arearoughly the size of Califor-nia and twice as much as weacquired in the previousnine years.”

Areas holding promiseinclude Brazil, Canada,Trinidad & Tobago,Uruguay, Australia, and the

US, among others However,

BP is focused heavily on Angola, Azerbaijan, the Gulf ofMexico (GoM), and the North Sea, areas that combinedare expected to generate half of the company’s operatingincome by 2020, McKay said

Admittedly an upstream-biased business, BP has slated

BY VELDA ADDISON

The operator-funded DeepStar global technology

initiative has been the upstream industry’s mostsuccessful collaboration in tackling the challenges ofthe deep

But according to a panel of leading experts fromoil companies and contractors, the need for plentymore collaboration and standardization as the off-shore industry pushes into the world’s ultra-deep wa-ters is crucial if it is to achieve its aims of bothaccessing new reserves and also maximizing produc-tion from its existing assets

Speaking at an OTC 2013 DeepStar panel session

on Monday, Occo Roelofsen, director of the globaloil and gas practice at McKinsey & Co., highlightedthe offshore industry’s success in pushing its averagewater depth 100 m (328 ) deeper every year over thepast 10 years “We predict that over the coming 10years the industry will also see its deepwater liquidsproduction grow by 7% over that period.”

The need, therefore, for collaboration initiativessuch as DeepStar is vital for its success, he contin-ued If the Gulf of Mexico was being operated byone single company, it would dramatically speed upthe process of bringing fields onstream, developingstandardized technical solutions, and maximizingthe value of its assets This theoretical single opera-tor, Roelofsen said, would have around US $50 bil-lion of projects today in action but would have thepotential to turn those projects into assets with a netpresent value of up to $110 billion mainly throughoptimization

It also would have the ability to reduce capex andopex by an estimated $46 billion over the nextdecade, he added

Although this single company is, of course, justtheoretical, Roelofsen’s point is that further industrycollaboration could go a long way toward achievingsome of the gains that the single entity company

| THE OFFICIAL 2013 OFFSHORE TECHNOLOGY CONFERENCE NEWSPAPER | DAY 2

OFFSHORE TECHNOLOGY CONFERENCE | HOUSTON, TEXAS

SM

Petrovietnam

Expands Operations

n Diversification through offshore exploration and foreign ventures

helps achieve growth.

Petrovietnam has gone from being an E&P company

in Vietnam to a vertically integrated energy company

in Vietnam that is involved in oil and gas production,

re-fining and petrochemicals, international E&P, power

generation, and oilfield services e company has been

expanding its operations internationally to increase its

reserve position

Petrovietnam has gone from being an E&P company

in Vietnam to a vertically integrated energy company in

Vietnam that is involved in oil and gas production,

re-fining and petrochemicals, international E&P, power

generation, and oilfield services

e company has been ing its operations internation-ally to increase its reserveposition

expand-“We have been producing oiland gas mostly on the continen-tal shelf We are exploring off-shore We have not found muchonshore,” Dr Do Van Hau, pres-ident and CEO of Petrovietnam,

Dr Do Van Hau

COLLABORATION

IS KEY TO DEEPWATER ADVANCES

n Joint industry projects can lead to increased technology capable of maximizing production.

See BP continued on page 46

See PETROVIETNAM continued on page 21 See ADVANCES continued on page 3

BY SCOTT WEEDEN

Lamar McKay

BY MARK THOMAS

3OTC SHOW DAILY | MAY 7, 2013 | TUESDAY

9 a.m to 10 a.m .Coffee

9 a.m to 5 p.m .University R&D Showcase

9 a.m to 5:30 p.m .Exhibition9:30 a.m to 12 p.m Technical Sessions12:15 p.m to 1:45 p.m Topical Luncheons

2 p.m to 4:30 p.m .Technical Sessions

3 p.m to 4 p.m .Happy Hour

4 p.m to 6 p.m .WISE Networking Event:

Women in the Industry Sharing Experiences

7 p.m to 11 p.m .OTC Night at the Ballpark at Minute Maid Park

ADVANCEScontinued from page 1

The OTC 2013 Daily is produced

for OTC 2013 The publication

is edited by the staff of Hart

Energy Opinions expressed

herein do not necessarily

reflect the opinions of Hart

Energy or its affiliates.

Hart Energy Publishing LLLP

would achieve “Deepwater and oil and gas has been all abouttechnology Technology is a very important component, but Iwould say an important next step is in the economics and col-laboration to find more value.”

Another speaker, Steve urston, Chevron’s vice president ofdeepwater exploration and projects, said, “e fact is that what

is normal today was considered ‘impossible’ 10 years ago Andwhat is ‘impossible’ today will be normal in 10 years from now

So in terms of technology, we need it all, from top to bottom.”

He highlighted dual-gradient drilling technology as being a clearexample of a DeepStar technology that went from an initial re-search project in 1996 to full deployment in 2013 e techniqueessentially eliminates water depth constraints for deepwater wells

by replacing the mud in the riser with sea water density fluids

Projects such as this are the lifeblood of DeepStar, which mains the industry’s most well-known collaboration, havingbeen in existence for more than 20 years and having successfullyidentified and executed hundreds of R&D projects so far It hasinvested more than $100 million in these projects and 325 tech-nical reports

re-e focus of its current Phase 11 work program is on ter developments in water depths of up to 3,048 m (10,000 ),involving more than 30 separate projects, but its goals are aimed

deepwa-at developing new enabling technologies for economic tion in depths of up to 3,658 m (12,000 )

produc-According to Greg Kusinki, Chevron’s DeepStar director, thejoint industry project is already under way with the process ofdeciding what will be tackled in Phase 12 e member companyoperators will start discussing potential projects in June beforevoting on which ones to select in September or October Phase

12 will kick off officially in January 2014

e current member operators of DeepStar are Anadarko troleum, BP, Chevron, ConocoPhillips, Maersk Oil, MarathonOil, Nexen Petroleum, Petrobras, Statoil, Total, and WoodsideEnergy, but it also has more than 60 contributing member com-panies for Phase 11

Pe-“Generally, DeepStar will continue with the successful driven process with strategic overarching top-down direction,”Kusinki said “e needs will be both near-term to five years, andlonger term to 10 years.”

need-He said that the management committee will be encouragingbigger impact projects that are conducted in a more collabora-tive manner, particularly with larger contributors “DeepStarexpects to continue interaction with regulators to ensure Deep-Star-developed technologies can be readily accepted for deploy-ment and use.” n

Panelists in the DeepStar plenary session yesterday at OTC focused on key issues such as standardization and collaboration and how the industry can improve its economic performance on major deepwater projects Panelists included moderator Greg Kusinski

of Chevron (speaking at the podium), Kevin Kennelly of BP, Ram Shenoy of ConocoPhillips, John Gremp of FMC Technologies, Solange Guedes of Petrobras, Steve Thurston of Chevron, Alain Goulois of Total, and Occo Roelofsen of McKinsey & Co.

(Photo by Gary Barchfeld Photography)

Spotlight Award Winners Address Subsea Challenges

OTC 2013’s Spotlight Award winners include companies

and technologies that are helping to move the offshore

industry forward In Monday’s show daily, the first of the 15

award winners were reviewed ey included ABB for its

Onboard DC Grid power distribution, automation, and

elec-tric propulsion system and Baker Hughes for the Fastrak

LWD fluid analysis sampling and testing service Dow Oiland Gas, PIH, Trelleborg Offshore, and Bayou Wasco Insu-lation also won for the Neptune Advanced Subsea Flow As-surance Insulation System FMC Technologies won for itsCondition and Performance Monitoring (CPM) sowareservice, and FMC teamed up with Sulzer Pumps Ltd to takehome an award for the High-Speed Helico-Axial MultiphaseSubsea Boosting System Finally, GE Oil & Gas le with two

awards, for its RamTel Plus and ROV Subsea Display Panel,and another for the Deepwater BOP Blind Shear Ram

Riserless drilling technology addresses deepwater hazards Reelwell has received an award for the Reelwell Riserless

Drilling Method (RDM) technology e company scribed its RDM technology as a new solution for drillingE&P wells, enabling the drilling of well sections with

de-challenging pressure conditions anddrilling to targets beyond conventional

reach Reelwell developed the new methodwith support from Petrobras, RWE, Shell,Total, and the Research Council of Norway

e RDM technology involves a drillstring or closed-loop flow circulationsystem, top-drive adapter, dual-float valve,and flow-control unit It differs from con-ventional drilling in the circulation flowpath of the drilling fluid, with the dual-drillstring acting as a riser During conven-tional drilling, the drilling fluid returns tosurface via the wellbore annulus, whereas

dual-in the new riserless drilldual-ing technique, thefluid returns to surface via the inner pipe

of the dual drillstring RDM is based onpumping the drilling fluid into the dualdrillstring annulus through the top-driveadapter and down to the dual-float valve atthe top of the conventional bottomhole as-sembly From the dual-float valve, cuttingsare transported back to surface inside theinner string, ensuring that the hole remainsclean at all times, the company said.According to Reelwell, the system im-proves offshore drilling safety because of itsability to perform managed-pressure andunder-balanced drilling operations withoutpressurized equipment on surface More-over, the design eliminates the potentialhazards from drilling with a riser in ultra-deep water

For more information about RDM-R,visit Reelwell at booth 5241

Drilling riser transport system reduces cost and risk

SBM Offshorehas received an award for its

Drilling Riser Trip Savertechnology erail-mounted transport apparatus relocates

a suspended drilling riser with a drillingriser tensioner system and surface BOP inplace e technology can be used whiledrilling multiple subsea wells consecu-

BY HART ENERGY STAFF

In Reelwell’s Riserless Drilling Method, omitting the riser is possible using a dual- drillstring to transport cutting to surface (Image courtesy of Reelwell)

5OTC SHOW DAILY | MAY 7, 2013 | TUESDAY

tively, reducing risk while also saving time by avoiding

the removal of the suspended drilling riser from the well

bay of the vessel In addition to substantial time savings,

safety risk is reduced by minimizing dropped object

haz-ard concerns during simultaneous drilling and

produc-tion operaproduc-tions while live wells are in producproduc-tion

A floating, offshore drilling, and/or production

plat-form is equipped with a rail-mounted transport system

that can be positioned at a plurality of selected positions

over the well bay Using the transport system, the drilling

riser is lied just clear of a first subsea wellhead and

po-sitioned over an adjacent, second subsea

wellhead using guidelines to restrain the

disconnected bottom end of the riser

dur-ing transfer e system allows for the

drilling riser to be parked on an existing

subsea wellhead while the rig is skidded

and positioned over another well slot in

order to deploy the production riser, run

the completion string, and install the

sur-face production tree

According to SBM, the technology was

introduced for the first time in April 2012

in a client bid request for a dry-tree

ten-sion-leg wellhead platform (TLWP)

appli-cation in West Africa in 800-m (2,625-)

water depth is method of handling and

transferring a high-pressure drilling riser

from one well to another on a dry-tree

TLWP had previously not been developed

For more information about the Drilling

Riser Trip Saver, visit SBM Offshore at

divi-in a controlled way to allow welddivi-ing This removal iscalled a “cutback.” Some of the manual processes used

to form the cutback in the past include wire brushing,

grinding, and scraping The most significant vantages of these methods are safety risks of exposure

disad-to high-speed cutting devices, excessive noise, highlabor costs, inconsistent cutback profiles, and thegeneration of large amounts of nonrecyclable waste.The Robotic Cutback System addresses all of these is-sues The system has been integrated into two spe-cially designed shipping containers, allowing it to betransported and erected quickly without the need for

See SPOTLIGHT continued on page 22

The Drilling Riser Trip Saver method and

apparatus can be used to consecutively

drill multiple subsea wells

(Image courtesy of SBM Offshore)

The Mobile Robotic Cutback System can

pro-duce higher quality cutbacks with an

ex-panded ability to deliver new geometries

allowing pipeline engineers to optimize the

design of the joint protection system and

deliver a uniform coating over the field joint

(Image courtesy of ShawCor)

Regional Report: Brazil Bonanza in the Spotlight

Petrobras is the operator of the vast majority of the

coun-try’s offshore mega projects e company has a total

of 25 new production units due to start up between 2013

and 2017, with another 13 due by 2020 is growing fleet

of 38 new offshore production facilities includes 13 new

units between 2013 and 2017 that have yet to be contracted

is build-or-lease program for FPSOs mainly destinedfor ultra-deepwater projects has been the engine roomdriving the global floating production systems sector

Since the year 2000, says analyst Infield Systems, the trendfor floating platform installations beyond water depths of

500 m (1,640 ) and greater has been primarily driven byBrazil, which since that year has consistently held a 35%

market share of Capex at this water depth level

In terms of spending by Petrobras alone, the companyrecently had its business plan approved for 2013 to 2017and will invest a total of US $236.7 billion, with the E&Psector taking up 62% ($147.5 billion) of the total Of thetotal, 73% will be allocated to production development,16% to exploration, and 11% to infrastructure, according

to Petrobras e goal is to hit a production target for oiland natural gas liquids (NGL) of 2.5 MMb/d in 2016,

raising this to 2.75 MMb/d in 2017 and 4.2MMb/d by 2020

From 2013 to 2015, a total of 11 new duction units are expected to come on-stream, representing a capacity increase of1.45 MMb/d for Petrobras

pro-Much of the emphasis is focused on thepre-salt reserves in the Santos and CamposBasins Petrobras confirmed earlier thisyear that oil production from its operatedfields in those basins hit 300,000 b/d of oil,just seven years aer oil was first found inthe pre-salt layers

But it is also pushing on with its efforts

to improve the overall production curve forits existing oil and gas fields, with initiativessuch as its Campos Basin Operational Effi-ciency Improvement Program, designed toincrease the reliability of meeting its pro-duction targets by improving operationalefficiency levels and the integrity of pro-duction systems in the Campos Basin.Solange Guedes, E&P executive managerfor production engineering at Petrobras,highlighted in a plenary session at OTCyesterday the operator’s efforts to revitalizeits aging fields ese include the deepwa-ter Marlim field offshore Brazil, whichstarted producing in 1991 but has in recentyears seen its production levels fall from apeak of more than 600,000 b/d to its cur-rent level of around 200,000 b/d

“is required a novel approach to crease the oil recovery rate and extend its life,which led to the testing of an oil/water sepa-ration system, which began operations inApril,” she said is is the world’s first sys-tem for deepwater subsea separation ofheavy oil and water, with the water reinjectedback into the reservoir to boost production

in-e subsea separation module is designed toseparate heavy oil, gas, sand, and water at adepth of 900 m (2,950 ) of water

e Brazilian Pavilion is located at booth

1117, organized by the IBP (Brazilian troleum, Gas & Biofuels Institute) n

Pe-BY MARK THOMAS

ARCTIC TECHNOLOGY CONFERENCE

Save the Date:

February 10-12, 2014

George R Brown Convention CenterHouston, TX

Banquet Dives Deep to Honor Recipients

Those who have spent Sunday aernoons cheering on

the Houston Texans at Reliant Stadium would

scarcely have recognized it Sunday night Festooned in

an underwater theme that included giant jellyfish, the

stadium was transformed into a subsea paradise for the

OTC 2013 Awards Banquet

Aer opening remarks from OTC Chairman Steve Balintand Houston Mayor Anise Parker, Chuck Richards, dinnerchairman, introduced the annual beneficiary of the banquet,the Offshore Energy Center (OEC) Several companies in-cluding Chevron, Oceaneering, Shell, and Total helped spon-sor the award, along with Baker Hughes, BP Reliant Park andHouston Convention and Visitors’ Bureau, the Society of Pe-troleum Engineers (SPE), Technip, and Transocean

“We look for charitable organizations that make a ference in the lives of people or address important envi-ronmental issues We also want to support a worthyorganization that’s connected to the offshore industry and

dif-to the communities where we operate,” Richards said Executive Advisory Board Chairman Steve Newman con-tinued the introductions, noting that the center is notable forits Ocean Star museum, a converted oil platform in Galve-

ston that has been turned into a center thatteaches the public about the offshore industry

Aer the OEC recognition the awardspresentation began Kenneth E Arnold, asenior technical advisor for Worley Par-sons, won a distinguished achievementaward for individuals based on his work toestablish oilfield facilities engineering as arecognized technical engineering specialty

“I never thought this would happen,”Arnold told the audience “e people whowon this award before me were my men-tors I guess I must be old enough now.”Total took home honors in the distin-guished achievement award for companies,organizations, or institutions for its pio-neering Pazflor project e project is no-table for using the world’s largest FPSOvessel along with a very complex subseanetwork e field is 150 km (94 miles) off-shore Angola and produces 220,000 b/d.Heritage awards are bestowed each yearbased on continuous distinguished service

in exploration, drilling, production, andR&D is year two recipients – JamesBrill, professor emeritus at the University

of Tulsa, and E Dendy Sloan of the orado School of Mines – were honored.Brill has helped to pioneer the understand-ing of multiphase flow, authoring more than

Col-200 technical papers and research reports onthe topic He said his interest was piqued inthe early 1960s when he took a graduatecourse on artificial li taught by KermitBrown that he said became the first multi-phase course in the world “He worked ourfannies off, and I loved it,” Brill said “By theend of the semester, we submitted a paper tothe SPE annual fall meeting in Denverbased on our homework assignments, and

it was soon published in the ‘Journal of troleum Technology.’ Kermit Brown had a

Pe-BY RHONDA DUEY

See AWARDS continued on page 10

Steve Balint (left) presents Kenneth E Arnold with the Distinguished Achieve- ment Award

(Photos by Gary Barchfeld Photography)

Stay Connected with Social Media at OTCLIVE

Day 1 of OTC was one to remember From the thousands

of attendees representing countries across the globe, to

the more than 2,700 exhibitors presenting their

state-of-the-art technology, to a special guest visit, OTC was bustling both

in person and on social media Check out some of the

pop-ular conversations taking place on the OTC platforms

Twitter:e hashtag #OTCHOUSTON is wildly popular

on Twitter At one point, it was even “trending” on Twitter,meaning it was one of the most shared, used, and talkedabout topics on the site Follow the hashtag to see what ex-hibitors are showcasing at their booths, takeaways fromtechnical sessions, and more Join us on Twitter and connectwith other OTC attendees www.Twitter.com/OTCHouston

Facebook:Our online community loves photos is

proved especially true when we shared photos from the nual OTC dinner, attendees in action, and the Crown Prince

an-of Norway’s tour an-of the exhibit floor Post your OTC photos

on our wall for everyone to enjoy www.Facebook.com/OTCevents

YouTube: Miss a session? Want insights from OTC boardmembers? Want video coverage? Each day, we post DailyHighlights video segments produced on-site by OTC-TV

ey are the guys with the blue shirts walkingaround OTC If you see them, smile becauseyou’re on OTC-TV www.YouTube.com/

eOTCvideos

LinkedIn: OTC attendees are taking theconversation from Reliant Park online, byconnecting, networking and sharing on thebusiness networking site, LinkedIn Jointhe official group or one of the more spe-cific subgroups to connect with like minds.Search “Offshore Technology Conference(OTC)” in the groups search field n

BY ANTHONY D DARBY

massive impact on my life.”

Brill went to Tulsa in 1966 as a youngassistant professor During his tenure atthe university he went on to develop re-search projects in fluid flow and paraffindeposition

Sloan has published 230 papers and fivebooks on methane hydrates, developingmodeling and simulation tools that are nowroutinely used for the design and operation

of offshore production systems Hefounded the International Conference onGas Hydrates in 1993, a conference that isstill going strong 20 years later

“We all realize that this heritage award isnot given to one person but to a groupcomposed of the past and present family ofstudents who have done much of the inno-vation and all of the laboratory effort thathas culminated in our results,” Sloan said

“Students are the principle product of ourlaboratories.” n

AWARDScontinued from page 8

James Brill (top right) and E Dendy Sloan (bottom right) receive their Heritage awards from Steve Balint

Agility is Key in Project Management

Size and agility are two highly prized physical

attrib-utes in sports In project management, especially

with the megaprojects of today, the two together can be

both help and hindrance Operators and contractors

working in the highly volatile environment of offshore

development are moving to an agile approach for fasterresponse to changing circumstances

Chris Ross, senior consultant for CRA Marakon,kicked off the first of Monday’s OTC 2013 technical ses-sions, “Agile Strategies in Offshore Development,” asmoderator He nimbly navigated the discussion that fea-tured operator and service provider organizations that

have had success in implementing agile project ment strategies

manage-“e reality is, as the saying goes, ‘when man plans,God laughs,’” Ross said Agility in project management,

he added, requires rethinking the conventional approach The session featured audience interaction via liveelectronic polling One poll showed that 95% consider

agility in offshore development projects to

be more important today than it was fiveyears ago

Featured panelists included Dick ney, founder and director, Westney Con-sulting Group; Stuart Wheaton, groupdevelopment and operations manager, Tul-low Oil; Sandeep Khurana, manager of de-velopment, major projects group, NobleEnergy; Dennys Moreira de Campos,Brazil IPM operations manager, Schlum-berger; and Erik Namtvedt, president,FloaTEC

West-e panel addressed key questions such

as types of projects that are particularlysuited to an agile approach, to what extentagility requires a departure from the con-ventional practice, and how an agile ap-proach increases or decreases project risk

In addition, a clear purpose and a respectfor the culture and values of the team areequally important Perhaps most critical,Westney said, is effective performancemanagement and the establishment of “de-cision rules.” e technically complex proj-ects, he continued, requires the partnering

of conventional best practices and plete flexibility for success

com-One approach

Classic project execution, Stuart Wheatonoffered, involves many basic steps like costmanagement, scheduling, and productionramp up Project management in othercountries, such as in Ghana where Tullow’sJubilee project has experienced great suc-cess, raises additional concerns, includingsensitivity to environmental issues andproject transparency Wheaton said that in-country involvement by and with the hostcountry at all levels is critical

For example, he said, Tullow’s social formance activities included the develop-ment of the Takoradi Polytechnic Facilityfor training of the local workforce and theMalaria Burden Project In Ghana, 30% ofworking time is lost due to malaria, accord-ing to Wheaton

per-Another way in which Tullow has foundits success is through the use of integrated

BY JENNIFER PRESLEY

continued on next page

13OTC SHOW DAILY | MAY 7, 2013 | TUESDAY

project management teams that bring both

the primary company employees and

con-tractors together “under one roof.”

Wheaton encouraged the use of early

team building as a way of enforcing core

team values When creating teams, it is

vital to create a project culture and

process that is both technically sound and

streamlined

In closing, Wheaton offered that agility

in project management is necessary and

that it is also a state of mind Any project

can do it, he said, the key is getting aligned

early and being flexible enough to handle

the project “unknown unknowns.” n

NETL RESEARCH

PRESENTATION

Dr Barbara Kutchko,

ultra-deepwater complementary

program research lead at

the US Department of

En-ergy's National Energy

Tech-nology Laboratory, will

present the results of recent

research and development

in the application and

in-tegrity of foamed cements

The presentation,

"Improv-ing the Science Base for

Wellbore Integrity: Foamed

Cements," will take place at

the Department of Energy

exhibit in booth 4056 at

noon today, May 7, and on

Wednesday, May 8 The

presentation is open to all

interested OTC attendees

continued from previous page

Monday's technical session on agile

proj-ect management included panelists (left

to right): Erik Namtvedt, FloaTEC;

Den-nys Moreira de Campos, Schlumberger;

Sandeep Khurana, Noble Energy; Stuart

Wheaton, Tullow Oil; Dick Westney,

West-ney Consulting Group; and moderator

Chris Ross, CRA Marakon

(Photo by Gary Barchfeld Photography)

Completion System for Maximizing

Recovery in Deepwater Wells

At OTC 2013 Baker Hughes is presenting two

technolo-gies to meet the challenges of deepwater completions:

one for the sandface and one for the upper completion

Baker Hughes’ multizone single-trip (MST) tion system delivers frac-packing or gravel-packing treat-ments to multiple zones in a single downhole trip, whichcan improve project economics by reducing completiontime and cost The system has a proven track record in

comple-wells in India and Indonesia, where ithelped reduce the costs of sand controloperations by 40% to 60% while allowingfor a large production casing inside diam-eter for improved production rates andmaintaining well integrity throughout theoperation However, use in the Gulf ofMexico has posed unique challenges thathave required careful planning

Recently, Baker Hughes worked closelywith Petrobras to complete its Cascade 5well, located in 2,484 m (8,149 ) of water

e MST was used to conduct frac-packcompletions through 10⅛-in casing in thishigh-pressure Lower Tertiary formation

e well had a bottomhole pressure ceeding 19,000 psi and was successfullystimulated at a pumping rate of 32 bbl/minwith an average of 260,000 lbm of proppantper zone Petrobras did not incur any lost-time incidents or nonproductive time(NPT) related to the deployment and op-eration of the MST and achieved additionaldeepwater firsts in the process e well’stotal depth was 8,103 m (26,586 ), making

ex-it one of the deepest frac-packed wells onrecord and the deepest application of theMST system

For many operators, being able to treattwo or more zones in one trip has resulted

in a cost savings of 45% or more compared

to treating the multiple zones in individualtrips With the MST system operators canselectively produce zones, access marginalzones, and treat and produce longer zonesmore economically e MST system pro-vides flexibility while maximizing hydro-carbon recovery by enabling selective orcommingled production e one-tripprocess and predeployment preparationcan save time, reduce risk and NPT, andmaximize safety

Baker Hughes also has developed a newtubing-retrievable subsurface safety valvefor ultra-deepwater, deepwater, andHP/HT applications

REACH subsurface safety valves can beset as deep as 6,096 m (20,000 ) and canensure fail-safe closed operation using re-liable field-proven heavy-sprung closuretechnology e new valve offers a single

CONTRIBUTED BY BAKER HUGHES

See COMPLETIONS

continued on page 28

The MST completion system delivers turing and gravel-packing treatments, which can reduce completion time and cost (Image courtesy of Baker Hughes)

frac-Saudi Aramco has announced the opening of three

research centers in the US with Houston named one

of the cities to house a new facility focused on upstream

research Houston joins two other US-based centers in

Cambridge, Mass., and Detroit designed to extend the

energy giant’s global R&D network

The Houston Research Center, expected to be

op-erational later this year, will consist of teams spanning

upstream subsurface domains Saudi Aramco

cur-rently is hiring experts from around the world to

work in this center, which has a state-of-the-art

lab-oratory to develop technology to advance the

discov-ery and recovdiscov-ery of oil and gas

In opening these research centers, the company looks

to further strengthen its collaboration with others and to

provide solutions to challenges in the upstream and

downstream sectors of the industry esespecialized centers of excellence will ad-dress far-reaching challenges

The three centers join a worldwidenetwork of research centers established

by Saudi Aramco to leverage scientificexpertise and further complement thework done by the its Exploration and Pe-troleum Engineering Center’s AdvancedResearch Center (EXPEC ARC) and Re-search and Development Center(R&DC), both of which are located inDhahran, Saudi Arabia These R&D cen-ters are devoted to original researchfrom the upstream E&P sector to down-stream refining The work supportsSaudi Aramco’s strategic aims to increaseoil and gas reserves, improve recoveryrates, and develop improved refiningprocesses

The Houston Research Center, located

in the city’s “energy corridor” west ofdowntown along Interstate 10, wasstrategically placed in a major hub for oiland gas R&D The facility is near energy-related companies, chemical and oilfieldfluids manufacturers, and service com-panies, as well as R&D labs and top pe-troleum engineering universities The Cambridge Research Center wasstrategically located in a standalone cen-ter adjacent to the Massachusetts Insti-tute of Technology (MIT) to supportcomputational reservoir modeling, nan-otechnology, and advanced gas mem-brane systems

e Detroit Research Center, sited insoutheastern Michigan in the city of Novi,was strategically located to take advantage

of collaboration with leading research ganizations for joint research on fuel effi-ciency and engine development

or-Saudi Aramco R&D representativessay much of their research happens inpartnerships with premier universitiesand technology providers as well as in-dependent researchers and developersacross the globe

e three US-based centers will employexperienced professionals with advanceddegrees in petroleum engineering, geol-ogy, chemistry, materials science, orother related fields The company alsohas research centers in Thuwal, SaudiArabia; Delft, the Netherlands; Paris;and Beijing; and a technology center inAberdeen, Scotland

Learn more about the company’s search centers by visiting aramcoser-vices.com n

re-New Research Center Opening in Houston

the Houston Research Center located in the city’s “energy corridor” with more than 4,181

sq m (45,000 sq ft) of office and laboratory space The new facility will focus on upstream research to advance the discovery and re- covery of oil and gas (Image courtesy of Saudi Aramco)

There are few more high-profile issues in the offshore

oil and gas sector today than that of well integrity

While parts of the world such as the Far East are still

allowing certain amounts of self-regulation, offshore

re-gions such as the Gulf of Mexico (GoM) and the North

Sea are seeing increasingly strict well management

re-quirements from organizations such as the US Bureau of

Ocean Energy Management (BOEM) and Norway’s

Pe-troleum Safety Authority (PSA) – to name just two

A study of wells on the Norwegian Continental Shelf by

the PSA, for example, found that every fih well analyzed

had well integrity weaknesses In addition, a 2011 Society

of Petroleum Engineers paper (“Well Integrity Analysis in

Gulf of Mexico Wells Using Passive Ultrasonic Leak

De-tection Methods,” ISBN 978-1-55563-342-4) found that

45% of GoM wells had sustained casing pressure

ese regulatory requirements are

in-creasing the onus on operators to establish

structural integrity and contingencies at

the planning stage, recomplete existing

producing wells to comply with new

legis-lation, ensure that well integrity is not

compromised by trouble zones and stuck

casing, and reinstate well integrity quickly

when damage does occur

Furthermore, operators and drilling

con-tractors today have to not only guarantee

the safe and reliable containment of well

fluids throughout the life of the well, but

they must also work within an environment

of increased pressures to maximize

produc-tion while at the same time managing costs

To date, however, well integrity has been

viewed primarily as a reactive process where

problems are dealt with and fixed only aer

they have happened and where unplanned

events simply cannot be planned for

It is against this backdrop that

Ab-erdeen, Scotland-based Meta has a clear

message to take to operators and drilling

contractors – that well integrity can be

planned for and that preexisting

technol-ogy limitations relating to well integrity

can be overcome

Underpinning Meta’s vision is a

technol-ogy called Metalmorpholtechnol-ogy, which uses

the established metal working principle of

autofrettage to create durable and

perma-nent metal-to-metal and gas-tight

connec-tions that provide isolation integrity over

the lifetime of the well Metalmorphology

and Meta’s selection of morphable products

deliver or reinstate original well integrity

and come with no reductions in inside

di-ameters or reliance on elastomeric seals

Metalmorphology is central to a number

of products that are helping redefine well

in-tegrity e Meta Liner Tieback, for example,

uses the morphing technology to connect

the liner to a tieback string of casing,

result-ing in a V0, metal-to-metal, gas-tight, and

load-bearing connection that is qualified to

the highest industry standards e Liner

Tieback solution can play a crucial role in

planning for well integrity contingencies as

well as enabling existing wells to be

recom-pleted to meet evolving legislation without

the need to change completion parameters

e Meta Internal Clad System uses

Metalmorphology to shape metal for total

isolation and for the installation of clad

through clads e system seeks to bring an

end to limitations as to where and when

op-erators can isolate zones and can prevent the

need for complete well workovers with the

accompanying lost production and expenses

In this way, operators can better plan their

drilling and production strategies, develop the formationsthey want to maximize production, and provide an alterna-tive to the long-held belief of producing from the “bottomup” of the well

Other Meta solutions include the Meta Casing nect, which adopts Metalmorphology to deploy itselfover existing casings, thereby allowing operators to rein-state well integrity and focus on their original well plans;

Recon-and the Meta Isolation Barrier, which provides a nent barrier to annular or zonal flow within the well

perma-For too long well integrity has been defined by a reactiveapproach, and the limitations of current well planning andintervention technologies where unplanned events lead torising costs, lost production, and deviations to original drillingand well production programs ese new morphable solu-tions instead allow for building in contingencies, reducingrisk, and protecting and enhancing future production

To learn more, visit metadownhole.com n

Redefining Well Integrity

CONTRIBUTED BY META DOWNHOLE

17OTC SHOW DAILY | MAY 7, 2013 | TUESDAY

Meta’s metal-to-metal, load-bearing, life-of-well phable” technology can optimize downhole isolation for well integrity applications

“mor-(Image courtesy of Meta Downhole)

When NASA first envisioned the Neutral Buoyancy

Laboratory (NBL), it was designed to simulate

complex space operations Here, procedures and

time-lines could be tested in a safe, controlled underwater

en-vironment before operations were executed in the

unpredictable environment of space

Today, an expanded partnership between Raytheon and

NASA leverages this same technology and environment to

elevate subsea testing for the oil and gas industry e NBL’s

capabilities for test control and monitoring and underwater

operations can be used to develop, test, and troubleshoot

procedures for new subsea tools, technologies, equipment,

and methodologies prior to deepwater deployments – all

within a highly realistic underwater environment

“is is a unique resource for the oil and gas industry,”

Tracy Cox, director of applied strategies for RaytheonProfessional Services, said “We provide hands-on testingand state-of-the-art simulations that help operators be-come safer and more efficient.”

Raytheon experience with high-stakes “failure is not

an option” organizations includes NASA, the US military,and the Federal Aviation Administration

“is partnership provides state-of-the-art, fully mented subsea testing environments to deliver significantcost benefits by reducing risks through preevent validationand verification in a controlled, consistent subsea simula-tion,” Tom Ellis, Raytheon’s NASA program manager, said

instru-Testing for assured success

Benefits to the oil and gas industry of this underwater

test-ing environment include reduced risk of shore and subsea operations; acceleratedschedules for critical projects; lower costswithin a realistic testing environment; earliertroubleshooting and refinement of technol-ogy; and optimized productivity of resources

off-in a centralized Houston-area location

e operational excellence and safetyculture of NASA’s NBL is applied to a range

of technologies and operational ologies, including simulation of high-riskinterventions, repair and inspectionmethodologies, and integration of ROVs,AUVs, and ADSs with custom test tools Test support capabilities at the NBL in-clude integrated engineering and manufac-turing support for prototyping, poolsidepower and air, full range surface and sub-surface video capability, control roomoversight, wireless information technologyaccess, and dive operators experienced inSCUBA and surface-supplied dive systems

method-e Wet SIT advantage

e Wet system integration test (SIT) andtimeline development offered at the facilityhelps emerging technology become more ef-ficient and productive Simulations and WetSITs in the NBL’s controlled environment canreduce operators’ costs, enhance realism, andprovide earlier opportunities for technologyrefinement and enhancement

From previous efforts, NASA andRaytheon understood that computer simu-lations can be too idealistic For example, inearly design revisions, buoyancy controlchallenges were underestimated, and at-tached tool behavior was inaccurate A WetSIT increases simulation and training reli-ability by using an underwater environmentwith full use of control systems, includingthrust, buoyancy, added mass, attached toolbehavior, and overall system response.Prior to offshore implementation, proce-dures and designs can be modified duringNBL Wet SIT simulations, saving time andeffort in the more expensive, less forgivingoffshore environment Unlike other testingfacilities available to offshore operators, theNBL has all the capabilities needed for suc-cess integrated into one facility

is intermediate testing step lowers riskand increases reliability while enhancing proj-ect execution, management, and safety,thereby ensuring overall operational readinessprior to a move to a deepwater environment

To learn more about the underwatertesting facility visit train4space.com orrps.com or visit Raytheon during OTC

Australia’s planned and potential LNG developments

have made it a world leader in this activity sector, but

rising costs have seen one of the country’s major players

– Woodside – recently scrap its plans for an onshore

liq-uefaction solution and go back to the drawing board

Woodside decided in April that plans for its Browse

LNG project at James Price Point near Broome, Western

Australia, did not achieve the appropriate commercial

return levels e project partners are now considering

other development concepts, including a floating LNG

(FLNG) solution

e company has since entered into an agreement with

Shell that sets out the key principles that would apply if

the Browse reserves were developed using Shell’s FLNG

technology “e agreement provides a framework thatwould enable the Browse joint venture to progress FLNG

as a development concept,” Woodside said in a statement

Woodside CEO Peter Coleman said FLNG had the tential to commercialize the Browse resources in the ear-liest timeframe, as well as strengthen the Australianoperator’s relationship with Shell – something that could

po-be highly po-beneficial in the offshore Australian gas sectorgiven both companies’ assets in the arena

“is agreement enables Woodside, as operator of theBrowse LNG development, to strengthen our develop-ment and operational capabilities through the potentialuse of Shell’s ‘design one build many’ FLNG technology,”

Coleman said “It also provides the opportunity for ern Australia to become an industrial, operational, andtechnology center for excellence for FLNG worldwide.”

West-Woodside said it “will immediately engage with the jointventure participants regarding the agreement, the extent ofwork on alternative development concepts, and the obliga-tions under the Browse retention leases e selection of any

development concept requires approval bythe Browse joint venture participants.”

Rising costs

e Browse LNG rethink was prompted by

a technical and commercial evaluation ofthe proposed James Price Point onshore fa-cility, which according to Woodside showedthe concept did not “meet the company’scommercial requirements for a positive finalinvestment decision.”

e company added, “A tender tion has recently been completed for all up-stream and downstream scopes of work,which showed that the development wouldnot deliver the required commercial re-turns to support a positive final investmentdecision by Woodside

evalua-“Woodside will immediately engage withthe Browse joint venture to recommend eval-uation of other development concepts tocommercialize the Browse resources, whichcould include FLNG technologies, a pipeline

to existing LNG facilities in the Pilbara, or asmaller onshore option at the proposedBrowse LNG precinct near James Price Point.”Woodside’s latest move puts the FLNGoption in pole position and underlines theprogress the solution has made in recentyears, the most high-profile example beingShell’s Prelude development

Regarding the current state of theBrowse project, Coleman said, “The costescalation on Browse has been consistentwith other projects in Australia Unfortu-nately, the cost escalation has been suchthat the total costs for Browse have re-sulted in the current development notbeing commercial The decision is a com-mercial one.”

On the search for a new development lution, he continued, “We’ve been monitor-ing different development options as we’vebeen progressing our reference case Overthe past two to three years there have been

so-a number of fso-actors which hso-ave chso-anged inthe LNG industry, such as costs and tech-nology for example

“One of the alternatives is FLNG nology, and that is something we will rec-ommend the joint venture consider as wemove forward ere are other possibilities,which we have looked at previously oseother options could include a pipeline toexisting facilities in the Pilbara and asmaller onshore option around James PricePoint It is too early to say if any of thoseare commercial.”

tech-Browse holds reserves of 15.5 Tcf(439.1 Bcu m) of dry gas and 417 MMbbl

of condensate n

Woodside, Partners Browse New

LNG Solutions for Western Australia

BY STEVE HAMLEN

Woodside has signed an agreement with Shell that could see an FLNG solution similar to Shell’s planned Prelude facility used on the companies’ Browse LNG project offshore Western Australia

(Image courtesy of Shell)

21OTC SHOW DAILY | MAY 7, 2013 | TUESDAY

To disassemble topsides of offshore platforms, workers

used to have to manually disassemble the structure into

transportable individual parts on the high seas – work that

is both time-consuming and hazardous In the future a new

vessel from the Allseas Group will li the platforms from

their steel “jacket” and transport them onto land, which

could make disassembly safer and more cost-effective

A prerequisite for that simplified process is a topside

liing system (TLS) e TLS can li 48,000 tons, which

is equivalent to 80 fully loaded Airbus A380s As

engi-neering partner to the Allseas Group, Bosch Rexroth

de-veloped and engineered the drive and control system

solution and the major components for the TLS For

Allseas Group owner Edward Heerema, the engineering

is the heart of the project “We had to lay

the foundation for all of the ship’s

func-tions here at’s why nothing could be

forgotten: All technical requirements had

to be precisely met, and all possible

scenar-ios had to be run through.”

To make that happen, Allseas brought

Bosch Rexroth on board as a long-term

partner Rexroth possesses experience in

designing and realizing drive and control

solutions for offshore installations and

maritime applications An international

team comprised of industry specialists and

technology experts developed a TLS drive

and control system, based on the principles provided byAllseas “No comparable system has ever been created be-fore, making this an exciting task, even for our experi-enced engineers,” Ron van den Oetelaar, Bosch Rextothproject manager, said

In complex cosimulations Rexroth reviewed the designand dimensioning of major components with a focus onadhering to high safety standards e company-ownedsoware takes both mechanical strengths and specific hy-draulic characteristics into consideration In addition toengineering products and services, Rexroth also suppliesthe 5-MW central hydraulic power unit as well as nu-merous key components and subassemblies for the TLS

e new vessel, Pieter Schelte, is being built in a SouthKorean shipyard and is set to begin disassembling thefirst offshore platforms in early 2014 n

TLS-Equipped Vessel for Safer

Topsides Disassembly

CONTRIBUTED BY BOSCH REXROTH

The Pieter Schelte vessel will be able to lift and port topsides of offshore platforms with a weight of up

trans-to 48,000 trans-tons in one piece

(Image courtesy of Bosch Rexroth)

said at the OTC 2013 topical breakfast May

6 on “Energy Challenges and

Opportuni-ties in Vietnam and Beyond.”

“Currently, there are 90 petroleum

con-tracts with our partners in Vietnam Oil

production is now at 320,000 b/d at this

point,” he said Natural gas production is

now at 1 Bcf/d, and the company plans to

increase production to 1.5 Bcf/d in the next

four to five years

Diversifying internationally

“We have been going overseas since the early

2000s,” he continued “We are now working

in 15 countries with 20 projects in Russia,

Central Asia, Southeast Asia, South

Amer-ica, and North Africa Of the projects we are

implementing overseas, three are under

pro-duction, and our share is 36,000 b/d We

started production two years ago By 2015

overseas production will be 50,000 b/d.”

Five other projects are under development

internationally One project in Algeria should

begin production in 2014 with peak

produc-tion of 40,000 b/d Two other projects in

Rus-sia are slated to start production in 2014 and

2015 e company also is in a project in

Venezuela that is producing very heavy oil

Petrovietnam is expanding by

diversify-ing with overseas ventures e company

has a project in Peru, where it bought a 50%

interest in Block 67 First oil is expected in

November 2013 with maximum

produc-tion of 60,000 b/d, Dr Khanh Van Do,

pres-ident and CEO of Petrovietnam

Exploration Production Co., said

Offshore Myanmar, the company is the

operator of one block with an 85% interest

e company is seeking other partners to

PETROVIETNAM

continued from page 1

See PETROVIETNAM

continued on page 46

concrete foundations The new system is faster and

safer, the company said, and can produce higher quality

cutbacks with an expanded ability to deliver new

geome-tries is allows pipeline engineers to optimize the

de-sign of the joint protection system and deliver a uniform

coating over the field joint, which can ensure a consistent

U value over the entire pipe length, the company said

Subsea hot tap technology saves production uptime

Statoil ASA has received an award for its Remotely

Welded Retrofit Subsea Hot Tap Teetechnology In August

2012 the company carried out the first hot tap installation

in connection with preparations for its Åsgard subsea gas

compression development in 265-m (869-) water depth

in the Norwegian North Sea

e remotely operated hot tap operation consists of a

robot welding a T-piece onto the pipe while gas is flowing

through it Once complete, a remote-controlled drilling

machine drills holes in the producing pipeline, with no

ef-fect on pressure and production e company cited hot

tap technology as a technological breakthrough for oping marginal fields and also for extending the lifetime ofmature assets Further, the ability to connect anywhere onthe pipeline without stopping production can yield consid-erable flexibility and significant savings, the company said Statoil started working to develop remotely operatedhot tap technology for offshore pipelines in 1999 Ac-cording to the company, these operations had previouslybeen performed on Tampen Link on the Statord field

devel-in the North Sea and on the Ormen Lange field devel-in theNorwegian Sea, but the critical T-piece already had beeninstalled on the pipeline in advance

For more information about the technology, visit toil at booth 430

Sta-Automated rigs increase completions efficiencies Superior Energy Serviceshas received an award for its

Complete Automated Technology System(CATS), an shore and offshore completion services rig that uses re-motely operated or preprogrammed robotics to controlvarious completion components, including a snubbing unit,BOP/well control stack, pumps, circulation tanks, top drive,

on-closing systems, and pipe-handling systems,

as part of a single unit

According to the company, the system

is leading the industry into automated wellcompletion services with a focus on long-lateral applications The use of remotelyoperated or preprogrammed robotic com-ponents allows for safer, more precise op-erations as well as data collection ofoperations, bringing the industry closer to

a manufactured well design that deliversconsistent repeat performance of comple-tion designs, the company said The rig re-quires minimal crew sizes and featuresintegrated software systems that replaceeducated guesses with analytical data forenhanced decision-making to increase ef-ficiency at the wellhead

For more information about the CATStechnology, visit Superior at booth 5833

Flexible offshore solution turns associated gas into fuel

Wärtsilä Corp.has received an award for the

Wärtsilä GasReformer, which uses steam forming technology to convert associatedgas recovered in offshore oil production to

re-a qure-ality thre-at cre-an be used re-as fuel in thecompany’s range of gas-fueled engines

e technology is based on a known alytic process from the petrochemical in-dustry and refineries, where hydrogen isproduced from various hydrocarbon feeds

e GasReformer exploits the same alytic process, but it operates under differ-ent conditions e technology canimprove the methane number of any fuelgas up to 100±5 by converting the heavierhydrocarbons to synthesis gas and finally tomethane Traditionally such gases would beflared and otherwise wasted

cat-According to the Global Gas Flaring duction Partnership, approximately 150

Re-The Remotely Welded Retrofit Subsea Hot Tap Tee nology’s ability to connect anywhere on the pipeline without disruption to production can yield significant cost savings (Image courtesy of Statoil ASA)

tech-A step toward automating well completion services, CATS rigs use remotely operated

or preprogrammed robotics to control completion components as part of one unit (Image courtesy of Superior Energy Services)

SPOTLIGHTcontinued from page 5

The Continuous Motion Rig is fully robotized and capable

of running jointed drillpipe and casing continuously (Image courtesy of WeST Drilling Products)

23OTC SHOW DAILY | MAY 7, 2013 | TUESDAY

Bcu m (5.3 Tcf) of gas are flared or ventedvery year,

caus-ing some 400 million tons of CO2 in annual emissions

at is equivalent to 30% of the EU’s gas consumption

Using an 8-MW GasReformer combined with a dual-fuel

engine, operators can reduce the need for bunkered fuel

oil by about 20 tons per day, according to Wärtsilä

For more information about the Wärtsilä GasReformer

technology, visit Wärtsilä at booth 1325

A safer approach to cutting

drillpipe and casing

Welltec has received an award for its Well

Cutter technology e tool enables

drillpipe, liner, tubing, and casing recovery

operations without the need for explosives

by using a rotating head to remove pipe

in-crementally, preventing the creation of

shavings A “polishing” trip with drillpipe

also may be eliminated as a result of the

smooth, bevel surface produced from its

cut Conveyed on electric line for accurate

depth control, the tool incorporates a

fail-safe mechanism that prevents it from

get-ting stuck in the event of power failure By

eliminating the use of explosives that can

pose operational risks, especially when

si-multaneous operations are being

con-ducted, the HSE impact is significantly

improved e transfer of explosives also

can cause logistical requirements and

sig-nificant operational delays, which makes

the tool an attractive alternative for pipe

recovery operations, the company said

For more information about the Well

Cutter, visit Welltec at booth 1453

Robotic rig technology provides continuous drilling WeST Drilling Products AShas received an award for its

Continuous Motion Rig(CMR) technology, the world’sfirst fully robotized rig developed to eliminate safety riskfor personnel and address downhole problems associatedwith differential sticking and pressure fluctuations

During the last 20 years the drilling industry has dertaken extensive mechanization and automation oftasks on the drill floor that traditionally have been man-ual Amid efforts to increase the efficiency and safety ofdrilling operations through automation, day rates for as-sociated rig rental and services have increased signifi-cantly Alternatively, the CMR technology providescontinuous drilling movement of up to 3,600 m/hr(11,810 /hr) compared to a standard 600 m/hr to 900m/hr (1,970 /hr to 2,950 /hr), allowing for full circula-tion and the facilitation of managed pressure and under-balanced drilling at maximum tripping speed According

un-to WeST, the rig is capable of reducing overall drillingtime up to 50% and overall drilling cost up to 40%

For more information about the CMR technology, visitWeST Drilling Products at booth 5241 n

By turning waste gas into fuel, the Wärtsilä

GasReformer system significantly lowers

operating costs, particularly for oil

plat-forms and FPSO vessels that demand high

levels of power, while enhancing

environ-mental sustainability

(Image courtesy of Wärtsilä Corp.)

The Welltec Well Cutter eliminates the

need for explosives in drillpipe and casing

recovery operations

(Image courtesy of Welltec)

Plans for a potential LNG terminal onshore East Africa’s

Tanzania are emerging aer a milestone drillstem test

on an ultra-deepwater gas discovery produced better than

expected results

e UK’s BG Group confirmed in a press release it had

completed the successful drillstem test in Block 1, with

ini-tial results from the Mzia-2 well showing better than

ex-pected properties in the deeper Cretaceous reservoir e

test on Mzia-2, the first done on a Cretaceous discovery in

deep water off Tanzania, flowed at a maximum rate of 57

MMcf/d of natural gas, constrained by testing equipment

Mzia-2 is 4 km (2 miles) from the original Mzia-1

dis-covery and sits in around 1,620 m (5,315 ) of water

ap-proximately 45 km (28 miles) off the coast of southern

Tanzania It is approximately 22 km (14 miles) to the north

of the Jodari-1 discovery well, also in Block 1, where a

suc-cessful drillstem test was completed in March 2013 on theshallower Tertiary reservoir

BG’s minority partner in the Mzia field, Ophir Energy,has revealed in a separate press release that it has now up-graded its mean reserve estimates for the find by 22% from3.5 Tcf of recoverable gas to 4.5 Tcf

BG Group Chief Executive Chris Finlayson said in BG’srelease: “e successful Mzia-2 drillstem test follows com-pletion of a multi-well appraisal program earlier this year

on the nearby Jodari field Results from the current paign demonstrate the excellent quality of our interests off-shore Tanzania, where our resources are helping supportplans for a multi-train LNG export project

cam-“While we continue exploration and appraisal offshore,

BG Group and others are jointly studying suitable sitesfor a potential onshore LNG terminal and anticipate pro-viding proposed locations to the Tanzania government

in the next few months.”

Ophir added in its release that the Mzia-2 appraisal welldrilled in February 2013 had confirmed an estimated 62

m (203 ) of net gas pay in Cretaceous reservoirs, lishing pressure communication between the Mzia-2 andMzia-1 gas columns, and determining a vertical gas col-umn of at least 200 m (656 ) for the field

estab-e Mzia DST was designed to be the first test of ceous age reservoirs in the Tanzanian deepwater play, itsaid Ophir had previously estimated that a threshold flowtest rate of 10-20 MMcf/d would be required to confirmthe commerciality of future production wells from thisasset “On test, the Mzia-2 DST flow rate was at the veryupper limit of the expected range e 60-hour main flowperiod flowed at the maximum equipment limited rate of

Creta-57 MMcf/d with a low drawdown (<600psi) Successfulcompletion of the Mzia-2 appraisal program has validatedthe resource potential of the field and confirmed that ex-cellent development well productivity may be expected,” it

stated in the release

Ophir went on to say in the release that theDST results suggest that the reservoir pa-rameters that had previously been used tocalculate recoverable volumes in the Creta-ceous reservoirs were conservative, and thatalthough further appraisal drilling will likely

be required to determine the total able resource of the field, it now estimatesthat mean recoverable resources from Mziahave increased to 4.5 Tcf

recover-Ophir CEO Nick Cooper said in thatcompany’s release: “e recent Jodari flowtest demonstrated the excellent reservoirdeliverability potential of the younger Ter-tiary reservoirs in Tanzania is Mzia flowtest is a landmark result as the first timethat the older, Cretaceous reservoir hasbeen flow tested in Tanzania By flowing at

an equipment-constrained 57 MMcf/d theMzia field has significantly exceeded ourexpectations

“e Mzia-2 DST result has increased timated recoverable resources from the field

es-to an estimated 4.5 Tcf is flow test resultwill boost expected production rates and im-prove development economics for this asset.With this better than expected reservoir per-formance in the Cretaceous, the Ophir-BG

JV will reassess the potential of both the lier Papa-1 discovery and the remainingprospects of similar Cretaceous age is isanother important step forward in Tanzania’sfirst LNG development project and illus-trates the potential for further considerableupside in our acreage in Tanzania.”

ear-e drillship Deepsea Metro-1 has nowrelocated to Block 4 to drill exploration wellNgisi-1, adjacent to the existing Pweza andChewa discoveries According to Ophir,Ngisi-1 is designed with two deviated wellpaths to test separate compartments of theNgisi prospect and the deeper Chewa dis-covery It estimates Ngisi-1 could increasethe mean in-place resource of the Chewa-Pweza-Ngisi hub to 5.8 Tcf in place (4.1 Tcfmean recoverable) and “will provide criticalscale for gas aggregation and developmentfrom Block 4,” according to its release

BG and Ophir will use data from the rent exploration and appraisal campaign and

cur-a recently completed 3-D seismic survey tohelp identify new targets for a third explo-ration program beginning later this year.Prior to Mzia-2, BG’s acreage offshoreTanzania had produced seven consecutivenatural gas discoveries, two successful ap-praisal wells, and a successful test on Jodari

e UK company is operator with a 60%interest in Blocks 1, 3, and 4, with Ophirholding 40% n

Successful Mzia Test Firms Up Tanzanian LNG Plans

BY MARK THOMAS