Information to action: the pivotal role of accurate diagnosis in the management of well integrity issues Tobben Tymons Marketing Manager, Wireline, Eastern Hemisphere SPE Aberdeen, 23rd January 2013
Agenda 1. Integrity 2. Diagnosing integrity issues 3. Case studies The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 2
Integrity A global issue The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 3
A typical well > 2000 components harsh conditions wells fail The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 4
What is well integrity? The application of technical, operational and organisational solutions to reduce risk of uncontrolled release of formation fluids throughout the life cycle of a well. NORSOK STANDARD D-010 The well-operator shall ensure that a well is so designed, modified, commissioned, constructed, equipped, operated, maintained, suspended and abandoned that a) so far as is reasonably practicable, there can be no unplanned escape of fluids from the well; and b) risks to the health and safety of persons from it or anything in it, or in strata to which it is connected, are as low as is reasonably practicable. DCR, Part IV, regulation 13 The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 5
Two main types of well integrity failure Leak flow tubing, casing, valves, packers Annular flow cement integrity, packers, plugs The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 6
A global challenge % of wells with integrity issues Gulf of Mexico Gulf of Mexico North Sea, UK North Sea, UK North Sea, Norway North Sea, Norway 45% 6,650 wells 1 34% 1,600 wells 2 18% 482 wells 3 1 US Minerals Management Service survey, 2004. Reported 6,650 out of 14,927 active wells had sustained annular pressure in deepwater and shelf GOM. 2 SPE forum North Sea Well Integrity Challenges, 2009. Approx. 100 participants indicated no. of wells with at least one anomaly. Average 1,600 out of 4,700 active wells. 3 Norwegian Petroleum Safety Authority, Well Integrity study, 2006. Study sampled 406 of 2,682 wells. 18% of wells had well integrity failures or issues. 7% completely shut in owing to integrity issues The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 7
Safety, environment and new regulations Recent events have triggered new regulations and underlined the importance of better well integrity The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 8
The cost of well integrity failures Global wells affected by integrity issues Global wells affected by integrity issues 38% 760,000 wells 1 Shut-in permanently Shut-in temporarily Operating under dispensation Operating normally 19% shut-in 80% efficiency >$1 billion/day lost 1 OTM Consulting 2009. Calculated percentages of global wells (oil & gas) operating under dispensation or shut-in permanently or temporarily. Global averages developed from OTM s internal regional market models for all oil and gas wells. Issue fractions weighted by number of wells per region. 2. BP Statistical review of world energy 2010; US EIA-28 2009; OTM Consulting 2011. 2009 oil production 79,948 thousand bopd; 2009 gas production 284.5 billion cubic feet per day, 50,271 thousand boepd. Average 2009 oil price $61/bbl, average gas price $4.4/thousand cubic feet ~$25/boe. [BP 2010]. Aggregate global lifting costs (combined oil and gas calculated using $ per bbl or boe) $11.50. [US EIA-28, 2009]. Aggregate global revenue oil $49.5/bbl, gas $13.5/boe. Global operating wells oil ~900,000; gas ~1,100,000 [OTM Consulting 2011] Assume 19% of operating wells are shut-in due to integrity issues then production comes from oil 729,000 wells (average 110 bopd/well); gas 891,000 wells (average 56/ boepd/well). Assume that shut-in wells would produce same average per day then potential production oil is 110*171,000=18,810 thousand bopd; gas is 56*209,000 = 11,704 boepd. Therefore lost revenue oil is 18,810*49.50 = $931 million/day; gas is 11,704*13.50 = $158 million/day. Total lost potential revenue is $1,089 million/day. The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 9
Integrity, efficiency & profit Efficiency = Output / Input Profit = Revenue - Cost Better well integrity à Hazards Intervention costs Well performance Well life The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 10
Diagnosing integrity issues How information leads to action The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 11
Failures affecting well integrity & performance Most common failures 1 Archer customer survey, 47 global participants, June 2013 The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 12
Well integrity management process - Symptoms and behaviour Data - Actual vs. design, past & present, localized or field wide - Diagnosis and prognosis Information - Identify cause of issue, the extent and severity - Develop strategy Prioritization - Establish time frame and sequence in overall scheme - Implement strategy Action - Manage issue or intervene to resolve SPE North Sea Well integrity forum, Nov 2009 The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 13
Dealing with well integrity Integrity management challenges Well integrity management challenges Gathering & analysing data Competency Equipment availability 77% 1 SPE North Sea Well integrity forum, Nov 2009 & Drilling Engineering Association (DEA) Europe, March 2010. Data compares main challenges faced by operators in managing well performance. 100+ operator participants. The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 14
Case studies and driving factors Case study 1 Offshore, North Sea (UKCS) Case study 2 Onshore, Middle East (Qatar) Case study 1 Case study 2 Safety Environment Economic Bringing workforce to hazardous environment Risk of release at seabed High operating cost Large workforce in industrialised zone Risk of groundwater contamination High production value The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 15
Case study 1 Don South West, UKCS The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 16
Don South West Background Located 180 km North East of the Sullom Voe Terminal in block 211/18a Discovered in 1981 Subsea field development supported by the Northern Producer FPF Production Production commenced in June 2009 with a total production of over 2 million m3 of oil and 75 million Sm3 of gas to date Production is achieved from 5 production and 4 water injection wells Oil is exported to the Thistle Alpha platform and gas is exported to the Thistle Alpha/Dunlin Alpha platforms The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 17
Background Well history Completed February 2010 as gas lift production well Brought on line March 2010 Tubing to annulus communication Discovered in March 2011 during integrity test Test confirmed that the leak was below the SSSV Calculated leak rate > acceptable leak rate Continued production under a WORA (Well Operations Risk Assessment) Repair at earliest opportunity The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 18
Background Multiple scenarios for failure 283 connections between SSSV & Packer 3 gas lift mandrels & associated valves Chemical injection valve Production packer A sting in the tail A similar completion had been pulled as part of a side track operation Cracked weld observed within GLM The well featured in this case study has GLM from same batch All installed mandrels passed NDT, but cannot rule out as cause of issue The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 19
Repair or workover? Repair Failure of GLV or tubing connection Workover Failure of GLM welds or production packer Repair Workover Materials cost Operating cost Deferred production Economic impact Lower Lower Limited Minimal Higher Higher Extended Significant The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 20
Operational strategy Intervention performed July 2011 Performed on Transocean s John Shaw Services from 16 specialist providers Archer selected to provide integrity diagnostics LeakPoint: ultrasound leak detection SPACE/20M: 3D ultrasound scanning Onshore testing prior to mobilising Full scale test at DTL facility Verify the application of SPACE technology to image and measure welds Determine operating parameters and operational limits in advance The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 21
Operational strategy Perform leak detection survey Leak at GLV? no Leak at packer? yes yes no Change valves & test Perform 3D imaging survey Success? no Cracked weld or large hole? yes yes no Set straddle and test Return well to production Kill well and pull completion The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 22
Better information LeakPoint service selected as diagnostic solution Real time results Multiple leaks in single run High sensitivity (0.02 L/min) High vertical resolution (4 ) Accurate diagnosis Identified leaks at all three gas lift locations The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 23
Better information LeakPoint service selected as diagnostic solution Real time results Multiple leaks in single run High sensitivity (0.02 L/min) High vertical resolution (4 ) Accurate diagnosis Identified leaks at all three gas lift locations The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 24
Better information LeakPoint service selected as diagnostic solution Real time results Multiple leaks in single run High sensitivity (0.02 L/min) High vertical resolution (4 ) Accurate diagnosis Identified leaks at all three gas lift locations The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 25
Better information LeakPoint service selected as diagnostic solution Real time results Multiple leaks in single run High sensitivity (0.02 L/min) High vertical resolution (4 ) Accurate diagnosis Identified leaks at all three gas lift locations Leaks centred on gas lift valve The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 26
Better information LeakPoint service selected as diagnostic solution Real time results Multiple leaks in single run High sensitivity (0.02 L/min) High vertical resolution (4 ) Accurate diagnosis Identified leaks at all three gas lift locations Leaks centred on gas lift valve Confirmed integrity of other completion components The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 27
Better action Decision made to change GLV All leaks isolated to GLV/GLM assemblies Information revealed low probability of GLM weld failure Integrity verified by logging after GLV change out Confirmed all 3 GLV activated under annulus pressure Confirmed all 3 GLV sealing when gas lift shut in Dispensation lifted and well returned to full production The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 28
Accurately diagnosing the root cause was a key factor in re-establishing well integrity. The information obtained enabled us to select the optimal remedial action, minimise rig time and allowed gas lift operations to be resumed. Alex Pirie Completions Team Lead EnQuest The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 29
Case study 2 Pearl GTL, Qatar The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 30
Pearl GTL facility Background Located in Ras Laffan Industrial City, 80 km north of Doha, Qatar Fully completed in 2013 at a cost of ~$19 billion Pearl facility ~3.5km 2, RLIC total area ~100km 2 Production Process around 1.6 billion cubic feet a day of wellhead gas from the world s largest single non-associated gas field, the North Field Production is achieved from 7 monobore wells, cased and perforated and stimulated Production is supported by 2 onshore water disposal wells completed with carbon steel tubing The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 31
Background Well history Completed July 2008 as water disposal well One of only two water disposal wells for Pearl facility Tubing to annulus communication Discovered in January 2011 during Water injection package commissioning check Leak only apparent when the well has been shutin (annulus pressure vacuums while injecting) Calculated leak rate 0.03 L/min << acceptable leak rate for liquid 0.40 L/min Key risk for continued injection is exposure of the production casing to oxygen corrosion The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 32
Background Scenario A Water leaking past seal stack into A-annulus Single leak with limited flow path for leaking fluids Reduced flow volume in contact with casing Reduced corrosion risk The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 33
Background Scenario A Water leaking past seal stack into A-annulus Single leak with limited flow path for leaking fluids Reduced flow volume in contact with casing Reduced corrosion risk Scenario B Water leaking past seal stack into A-annulus Multiple leaks providing flow path for leaking fluids Increased flow volume in contact with casing Increased corrosion risk The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 34
Monitor and manage, or workover? Monitor and manage Single leak into closed volume Workover Multiple leaks with active flow path Manage Workover Materials cost Operating cost Deferred production Economic impact Minimal Minimal Minimal Minimal High High Significant Significant The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 35
Better information LeakPoint service selected as diagnostic solution Real time results Multiple leaks in single run High sensitivity (0.02 L/min) High vertical resolution (4 ) Accurate diagnosis Leak at seal stack identified No further leaks in completion No leaks in production casing The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 36
Better action Decision made monitor and manage the situation Single leak and rate within acceptable range Minimal corrosion risk to production casing Monitor leak rate and repeat survey at frequent intervals Water injection maintained at full rate under dispensation Full water disposal capacity Production safeguarded The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 37
Accurate diagnosis of the mode of failure and confirmation of the leak rate gave us the assurance that allowed injection to continue. The information obtained provides a baseline against which we can monitor to determine if the leak is increasing Rod West Completion & Well Intervention Engineer Qatar Shell The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 38
Summary Better information, better action, better outcome Information accurate diagnostics Action rapid, effective intervention Outcome Hazards Intervention costs Well performance Well life The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 39
Acknowledgements On behalf of Archer I would like to thank the following: SPE for inviting me to present to you here today EnQuest and Shell for allowing the case study to be shared My co-authors Alex Pirie, EnQuest Rod West, Shell The audience for your attention and participation in this event The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 40
Thank you. Questions? The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 41
Overview of Archer The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 42
Our business focus The well The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 43
Our purpose Better wells to help our customers produce oil and gas, safely and profitably, with no harm to people or the environment, for the longest possible time. The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 44
Archer s heritage Archer is the joining together of several well-specialist companies with a 40-year heritage in oil services The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 45
Our scale and reach > 100 global locations 8,131 employees 2012 revenue ~$2.5 billion 134 Wireline trucks 33 Offshore Wireline units 24 Coiled tubing units 23 Snubbing units 20 Nitrogen units 140,000 HHP capacity 77 land rigs 31 platforms 2 MODU The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 46
Our global footprint North Dakota Wyoming Colorado Oklahoma New Mexico Texas Michigan Pennsylvania West Virginia Arkansas Mississippi Louisiana Bergen Aberdeen Newcastle Stavanger Esbjerg London Pau Al Khobar Doha Abu Dhabi Dubai Beijing Lagos Kuala Lumpur Labuan Santa Cruz de la Sierra Tartagal Aracaju Catu Rio De Janeiro Rio Grande Singapore Jakarta Perth Nequen Buenos Aires Rincon de los Sauces New Plymouth Pico Truncado The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 47
Four specialist areas Integrity Intervention Unconventional Production drilling The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 48
Archer s portfolio of services Integrity Intervention Unconventional Production drilling Prevention Wireline Directional drilling Engineering Cementing technology - Slick Managed pressure drilling Land drilling Gas-tight suspension plugs - Electric Drilling & completion fluids Platform drilling Asset integrity (RIS) - Composite Tubular services Modular rigs Perforating Perforating Diagnostics Production logging Pressure control Integrity diagnostics Coiled tubing Pressure pumping Wellbore imaging Snubbing Fracturing valves Fishing Rentals Remediation Scale removal Gas-tight suspension plugs Well cleaning Casing exit technology Well cleaning Decommissioning (P&A) The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 49
Life-of-well integrity solutions Cflex TM Annular seal integrity extends well life Point TM Bringing clarity to well integrity management Tornar TM Reliable wellbore and BOP cleaning LOCK TM Gas-tight well suspension plugs SPACE TM 3D perspective on well performance TASK TM Removes scale safely Prevention Diagnostics Remediation The pivotal role of accurate diagnosis in the management of well integrity. Archer 2013 50