Sandnes Norway today 2012 HALLIBURTON. ALL RIGHTS RESERVED.

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1 Sandnes Norway today 1

2 Sandnes Norway July

3 Summer in Norway = never dark 3

4 Wilder, Wetter, Warmer transient refugees in Stavanger

5 Wilder, Wetter, Warmer transient refugees in Stavanger

6 Drilling Cracow & Water Waste Management OFFSHORE OIL WASTE TORLEIV BILSTAD UNIVERSITY OF STAVANGER Norway In collaboration with

7 Zero discharge White Paper 1996/97: 7

8 Drilling Production of oil and gas 8

9 9 - Discharge regulations - Norway Zero discharge goal for 2005 in White Paper 1996/97 Zero harmfuldischarge to sea 68 o N substituting harmful chemicals improved treatment or injection of produced water assessment of cuttings discharge 9

10 Produced water Norwegian Continental Shelf Water production and discharge Norwegian Continental Shelf Reinjected Produced water Discharge 200 Mill m Discharge Discharged

11 Muddy Drill Cuttings 11

12 Schematics of Drilling Rig 12

13 Full scale Drilling Rig in The North Sea 13

14 Cuttings removal from wells 14

15 Drilling fluids are used when a hole is drilled Why use drilling fluids? Control formation pressure. Prevent formation loss Maintain wellbore stability Lubricate Remove cuttings Cool Transmit signals(pressure pulse) from mud to MWD & LWD tools Drilling fluids is utilized by the oil and gas producing companies, when they are drilling a well. Specific Gravity 15

16 Why drilling fluids? Drilling fluids are used when a hole is drilled Control formation pressure Maintain wellbore stability Lubricate Remove cuttings Cool Transmit signals(pressure pulse) from mud to MWD & LWD tools Drilling fluids is utilized by the oil and gas producing companies, when they are drilling a well. 16

17 Mud & Drilling 17

18 Why drilling fluids? Drilling fluids are used when a hole is drilled Control formation pressure Stabilize for cementing Transmit signals, pressure pulses from mud to MWD & LWD tools MWD = measurement while drilling LWD = logging while drilling 18

19 Summarize: Why drilling fluids? Increase Efficiency Leif Erikson day rate 2012 = RP NOK US$ PLN

20 Formation gas kick, no drill casing and a wild well 20

21 Indonesia not Iceland Lapindo Mud Volcano 21

22 A continuous flow since

23 people displaced 23

24 Our BLUE Planet in trouble 24

25 Free as a bird 25

26 Free?? 26

27 Drill Cuttings Particles of crushed sedimentary rock produced during drilling operation Ground rock coated with a layer of drilling fluid A typical oil-based drilling fluid waste: 70 % mineral solids 15 % water 15 % oil 27

28 Clean drill cuttings 28

29 Separate cuttings from drilling mud 29

30 Drill Cutting Removal & Disposal 30

31 Soil Washing and Oilfield Solids Cleaning 31

32 Drill Cutting & Solid Pulverizer 32

33 Re-injection 33

34 Monitoring discharges of cuttings & mud 34

35 Ospar: 720 installations 35

36 Decommissioning/reuse 36

37 Dr. Aleksandra Jamrozik Thermomechanical Cuttings Cleaner UiS

38 Typical TCC Offshore Process 38

39 TCC Process Flow Diagram 39

40 Drilling Waste Management FINISHED on time?

41 The drilling industry in Norway Fields being developed Name Operator Production start Skarv BP Norge Q Gaupe BG Norge Q Oselvar Dong Q Marulk ENI Norge Q Vigdis North East Statoil Q Goliat ENI Norge 2013 Ekofisk South ConocoPhillips 2013 Gudrun Statoil 2014 Valemon Statoil

42 Largest discoveries in in the World in in

43 Type Rig Activity of rigs, February and rig 2012per activity February Scandinavia 2012 February 2012 Sector Jackup Semisub Drill ship Active Platforms Land Norwegian sector Danish sector Total

44 Well activity Well 2012 activity - Scandinavia Scandinavia NORWAY Forecast Actuals per April 2012 EXP DEV EXP DEV DENMARK Forecast Actuals per April 2012 EXP DEV EXP DEV

45 Drilling waste - what is it? Oily water Slop water (drilling slop) + Oily drill cuttings Both are classified as Hazardous waste + non-oily drill cuttings UiS & 45

46 Did specify why drilling fluids Now: What are drilling fluids? Aqueous Non aqueous WBM OBM Diesel SBM Water Based Mud Oil Based Mud Synthetic Based Mud 46

47 Water Based Mud BaSO4 Bentonite clay Polymers CaCO3 Salts Deflocculants: Lignosulfonate Viscosifier: WBM SW/FF/Brine Iron (III) oxides 47

48 Oil Based Mud Water Weighting agents Emulsifers Mineral oil or (diesel) Yellow & red chemicals 48

49 Environmental friendly WBM 1970 UK USA, Canada and Norway became concerned about discharging fluids 1990 Introduction of SBM (Synthetic) to replace OBM. OBM is bio-accumulating and toxic 1993 Against the law to release particles (cuttings) containing more than 1% oil. 49

50 Modern WBM Contains green chemicals and/or sea water Bioaccumulation Pose little or no risk to the environment Reduction of chemicals 99% the last 10 years 50

51 Regulations Water based (WB) drill cuttings may be discharged Oil based (OB) drill cuttings shall not be discharged The Barents sea 0-discharge area Permit is required for all discharges Permit is required for sub surface injection Regulations for handling and treating waste onshore different from offshore. Requirements in permits generally stricter offshore and may depend on location. UiS & 51

52 Why is still OBM used? Reservoirs with HTHP (High Temp and High Pres) cracks the polymers. Deeper wells. Used in the lower sections (17 ½, 12 ¼, 8 ½ ) High inclination on the well increase the chance on fracturing the well. Requires good well stability and efficiency When ROP (rate of penetration) > 50 degrees High recycle rate (70%, WBM 45%) Personnel safety on Norwegian continental Shelf is 1st priority 52

53 Drill cuttings 53 Oil based drill cuttings separated from drilling fluid Most used separation technique - the «Shale shaker» (vibrating screens) 53

54 Is Oil Based Mud really that bad? Research have shown OBM discharges are killing species and reducing biodiversity due to reducing oxygen and clog the filter feeders Spawning grounds for fish are damaged by drilling discharge Norway has big coral reefs (Lophelia pertusa) 54

55 Summary: Drilling Fluid Properties/Functions 1) Control formation pressure 2) Stabilize wellbore 3) Transport drill solids to surface 4) Keep drill solids in suspension 5) Cool and lubricate drill string & bottom hole assembly (BHA) 6) Provide buoyancy to drill string and casing 7) Transfer hydraulic energy 8) Medium for wireline logging and logging while drilling 9) Minimize formation damage 10) Protect drillstring and casing against Corrosion UiS 55

56 Offshore drilling waste Disposal options Discharge to sea Injection sub surface (underground) Send to shore for treatment and disposal (landfill) Treat offshore discharge or send to shore Choice depends on location, type of drilling fluid, laws/regulations, cost Most operator adopt a best available technique (BAT) approach combined with risk assessment in order decide. UiS & 56

57 Discharge of cuttings, sand and solid particles Cuttings from drilling and well activities, sand and other solid particles shall not be discharged to sea if the content of formation oil, other oil or base fluid in organic drilling fluid exceeds ten grams per kilo of dry mass = 1 % The operator shall obtain a permit pursuant to Chapter 3 of the Pollution control Act to inject materials such as cuttings, sand and solid particles. UiS & 57

58 Drilling waste produced offshore Norway (tons) Year Total drilling waste to shore WB drill cuttings discharged OBM Cuttings Injected Increasing amount sent onshore due to problems associated with re-injection of drill cuttings Majority of the amount to shore split between 4-5 of the major bases along the coast of Norway. 58

59 Drill cuttings logistics 59 Rig to shore base Supply vessel using cuttings skips or dense phase transfer and larger bulk tanks. RUSSIA At Base Intermediate storage awaiting further transport Base to treatment site Normally by boat or truck. NORWAY SWEDEN FINLAND Empty containers or tanks needs to be cleaned and returned. Alternatively a dedicated cuttings boat may go directly to the treatment site. 59

60 Thermomechanical Cuttings Cleaner (TCC) High throughput performance. >99% base oil recovery No flashpoint or toxicity degradation <2% solids in recovered oil Three recoverable byproducts Base Oil Water Solids Eliminates ship to shore transportation of cuttings. Mobile unit allows for quick mobilization Overall reduction in HSE exposure 60

61 Drill Cuttings transfer & transport UiS

62 Cuttings transfer & storage 62

63 Rig and Vessel Installations 63

64 Cuttings Transport Tank (CTT) Easy to empty, short circulation time The CTT is filled using air conveying pump systems i.e. SV-400. Transported & secured like standard cargo containers Easy access to valves & manifolds 64

65 Halliburton Cuttings Transport Tank (CTT) Easy and fast to empty No man handling No utility consumption Short turnaround time 65

66 Cuttings injection - CRI UiS &

67 Basic Principles Classification Shaker Cuttings Injection Pump Disposal Well Water & Waste Fluids Fracture Fines Tank (For Slurry Homogenisation) 67 Coarse Tank (Centrifugal Pump w/ Grinding Impeller)

68 Injection Locations Between casing strings Above production zone Into an existing well 68

69 Oseberg B CRI East side 69

70 East side pictures Southeast view 70

71 Drilling Slop Slop is usually a mix of rain water and wash water with the remains of discarded drilling, completion and similar fluids A typical rig produces 100 to 300 m3 every month 1000 m3 per month is not uncommon, depending on the operation Solids 10% Oil 10% Water 80% 71

72 Baroid Surface Solutions Offshore Slop Treatment Unit Challenge Closed rigs and drain system layouts Limited possibility of segregation of various types of slop. Rain water, and high usage of water for cleaning purposes, results in large volumes of slop. High cost for the operator Ship to Shore Onshore treatment Solution Treat waste at point of origin Less waste transported to shore 72

73 Continuous discharge monitoring Advanced sensors OIW EX 1000: UV-fluorescensce Continuous on-line monitoring of discharge water Easy to connect and easy to operate Data storage and transfer of records. Samples sent to lab for 3rd party verification on regular basis > 99% correlation to ISO

74 Produced water - Selection of BAT Aliphatic hydrocarbons BTEX Naphtalenes PAH ring - 4 ring + Alkyl-phenols C0 C3 C4 - C5 C6 - C9 Metals (Cu, Cd, Hg, Zn, Pb, Ni) Added chemicals Corrosion inhibitor Biocide Scale inhibitor Flocculent Emulsion breaker H2S-scavenger

75 The drilling industry in Norway Drilling waste drill cuttings and drilling slop Drilling waste disposal options Regulations Drilling waste volumes and logistical challenges The process of drilling oil and gas wells Drilling Waste Management and strategies Drilling waste handling on the rig technologies Onshore drilling waste treatment - technologies Treatment on the offshore rig - technologies Water management in the field 75 UiS &

76 Drilling Production of oil and gas 76

77 Injection of produced water

78 Produced Water: Separation and polishing Choke technology Separator technology Oil Droplet separation Chemical Injection Points Sand/Particle Handling OnLine OiW monitoring

79 C-TOUR

80 See you in April? 80

81 Indonesians Anno 800 AC 81

82 Wilder, Wetter, Warmer transient refugees in Stavanger

83 Water Management Technologies Separation at platform and discharge to sea Separation at platform and reinjection into the reservoir Separation at seabed and reinjection Oil GEL Water Oil Selective water shut off Water pump Electric cable Oil pump Hydrocyclone separator 2 7 Oily water reinjection Downhole separation and reinjection Sidetracking into zones with higher oilfraction

84 CO2 Capture and storage (CCS) removal of CO2 from natural gas Carbon capture and storage Sleipner (1 mill ton/year) In operation since 1996 Monitoring in Utsira Sleipner Snøhvit (0.7 mill ton/year) In operation since 2007 C l 84

85 Produced Water Treatment Mitigation Measures Zero harm Water treatment technology Substitusion of added chemicals C-Tour EPCON Reduce/optimise chemical use Re-injection or disposal H2S removal EIF - risk management tool

86 Statoil - Exploration and Production Norway 5 major environmental aspects / ISO Oil and natural components in produced water 2. Chemicals in produced water and discharges for drilling & wells 3. Emissions of NOx and CO2 for power generation and flare 4. Waste 5. Acute discharges C l 86

87 Modern WBM 3 KLIF = Climate and pollution agency BAT = Best available technology 87

88 88 - Possible dangers and threats to the environment when chemicals are used Are the chemicals toxic to marine life? Can the chemicals accumulate in the food chain? Are the chemicals persistent or biodegradable? C 10 H 18 N 3 O 2 Microbial degradation CO2 +H 2 O+NH 3 88

89 8 9 89

90 Modern WBM 4 90

91 Future (in Norway) OBM 91

92 Modern WBM 2 92

93 Fjord leading to my hometown of Sandnes - Norway 93

94 Components of a Drilling Fluid D r illin g M u d D r illin g M u d L iq u id s - O il - W a t e r - E s t e r - O le f in S o lid s S o lu b le S a lt s - N a C l - K C l - C a C l 2 - G ly c o l, S ilic a t e s W e ig h t in g M a t e r ia l - B a r it e - H e m a t it e - I lm in it e D e s ir e d S o lid s - B e n t o n it e - P o ly m e r s - T h in n e r s - O t h e r D r ille d S o lid s - S a n d s - S ilt - S h a le - A n h y d r it e 94 L o w G r a v it y S o lid s

95 Treatment of OBM Shipped to shore, thermal treeatment (expensive) Recycled Reinjection (preferred by KLIF, and less expensive) 95

96 Best Available Techniques (BAT) Substitution program for replacement of enviornmental unacceptable chemicals Statoil work together with their suppliers Has achieved very good results the last 10 years regarding discharge of unacceptable chemicals Select technology to avoid chemicals (BAT): Use of high quality material in flowlines to avoid corrosion inhibitor Effects water cleaning and enviornmental impact Reuse of drilling chemicals / drilling mud - 96

97 The business we re in...drilling The Circulating System Cuttings Transport 97

98 Select environmental acceptable chemicals BIODEGRADATION Day 0 O2 seawater with natural bacteria fauna O2 O2 O2 O2 O2 R-OH R-OH O2 R-OH O2 Biodegradation OECD 306 sea water test Day 28 O2 CO2 H2O seawater with natural bacteria fauna CO2 H2O O2 H2O CO2 CHEMICAL + OXYGEN CARBONDIOXIDE + WATER + S + P + O + N

99 No light No algae warm & CO 2 water (ph) No corals 99

100 Corals & water 100

FIELDS UNDER DEVELOPMENT. Ga p fr FACTS 111

FIELDS UNDER DEVELOPMENT. Ga p fr FACTS 111 11 FIELDS UNDER DEVELOPMENT n Ga p fr 2011 FACTS 111 0 10 20 G 30 Blo pro Goliat 70 Hammerfest 70 Dis Dev Ope Lice Rec Tromsø Exp As o Bodø 65 Dev No The me ins Marulk Skarv 65 Trondheim Res and the Jur

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