How to avoid fluid losses that slow drilling OVERVIEW As a result of the highly fractured geology in Kurdistan, operators encounter constant fluid and cement losses. Many report that wells expected to take three to four months to drill actually take nine to twelve. Normal approaches to drilling make fluid losses worse by putting additional pressure on formations. That can lead to even more fractures. The additional pressure can also slow the rate of penetration and reduce field production. Halliburton helped pioneer underbalanced drilling and is a world leader in delivering products and services that make it possible. Less pressure on formations helps reduce fractures, widen the ECD window, increase ROP, optimize casing design, and reduce skin damage effect on the formation. It can improve production and reduce costs, making oil and gas extraction more economical and creating more local jobs. CHALLENGE Fluid loss This mountainous region contains a complex network of natural fractures. Many operators encounter frequent fluid loss due to this highly fractured geology. Drilling can put additional pressure on formations, causing even more loss. Operators need a way to minimize fluid loss and drilling time. Development of local skills and economy Kurdistan is growing quickly. But sustaining that growth will require a well-developed oil and gas industry that can sustain itself. The government wants to work with companies willing to train local employees, create local infrastructure and share their knowledge. SOLUTION Underbalanced drilling Halliburton is a world leader in underbalanced drilling. Various Halliburton groups offer underbalanced drilling equipment, fluids, services and foamed cements. Halliburton underbalanced solutions can help complete projects more quickly and safely while enhancing reservoir performance. Knowledge transfer and sustainable development Worldwide, 92 percent of Halliburton s employees are hired from local populations where the company operates. The Halliburton workforce development program trains them in their home regions. Halliburton also mentors local suppliers and builds sustainable, local-sourcing partnerships., Rapid start-up Many operators in Kurdistan need equipment and crews quickly to meet contract requirements. Areas without a robust oilfield infrastructure can experience logistical delays. A shortage of trained suppliers can even force operators to work with people who compromise results. Local presence and logistical support Boots & Coots, a Halliburton service, already operates in Kurdistan. So does Halliburton Completion Tools, Cementing and Drill Bits & Services. Seven more service lines will join them by 1Q13. Halliburton also has a large presence in Iraq and can support Kurdish operations quickly if needed.
DRILLING TIME REDUCED BY In the Bermudez region of Mexico, Halliburton used managed pressure drilling to reduce drilling time by approximately 50 percent compared to other recently drilled wells in the same fields. 50% 50% 3500 bbl/day 11K bbl/day In Thailand, Halliburton used underbalanced drilling in an area with extensive natural fracturing. After two days of drilling the production index increased from 10 Mscfd/ psi to approximately 30 Mscfd/psi. Drilling time reduced by 50% Halliburton used its GeoBalance Optimized Pressure Drilling service in Southern Mexico to drill a well with a naturally fractured formation notorious for kick and lost circulation. The well produced 11,000 barrels of oil (bbl) per day compared to the field average of 3,500 bbl per day. 92% LOCAL EMPLOYMENT Currently more than 92 percent of the Halliburton workforce worldwide is localized. Halliburton is committed to local employment and the transfer of knowledge through hiring and education programs.
Extreme fluid losses in highly fractured formations Fluid losses due to the naturally fractured formations in Kurdistan have hampered exploration. Many wells expected to be drilled in three to four months are actually taking nine to twelve months. Operators need a way to stop these fluid losses, increase rate of penetration and decrease drilling time. Many Halliburton services specialize in preventing fluid loss Halliburton is a pioneer in underbalanced drilling and provides specialized services and equipment that can help solve fluid loss. In difficult drilling situations, Halliburton s GeoBalance Managed Pressure Drilling Service provides drilling optimization and minimizes reservoir damage. Baroid Fluid Services, another Halliburton service, provides drilling and reservoir fluid solutions along with fluid additives to help prevent fluid loss and enhance productivity. Baroid also provides waste management solutions and solids control equipment customized to maximize drilling efficiency. Halliburton has also developed lightweight and foamed cements that deal specifically with fluid loss. Halliburton currently conducts more than 800 cementing jobs monthly in the region and recently developed a new system specifically designed for the types of fluid losses found in the Middle East. GeoBalance Service increased production in Mexico An operator required a managed pressure drilling operation performed in one of the highest producing oil fields in South Mexico. The well was in an area with a naturally fractured formation. Halliburton recommended using its GeoBalance Managed Pressure Drilling Service, saving the customer one day of rig time, but the larger benefit was in production. The well produced at a rate of 11,000 bbl per day compared to the field average of 3,500 bbl per day. Underbalanced drilling lead to major gas discovery in Thailand In Northern Thailand, an operator using conventional drilling in an area with extensive fractures experienced loss of hydrostatic head and a gas kick at the surface. Halliburton used underbalanced drilling to overcome lost circulation and safely maintain pressure control. In the first two days of drilling, the production index increased from 10 Mscfd/psi to 30 Mscfd/psi, and the operator discovered additional major gas reserves. Foamed cement increased profitability of wells An operator in the Canatrell fields, one of the largest fields in Mexico, needed a light-weight cement to decrease the cost of drilling and improve production. Traditionally, the lower limit for cementing has been 7.5 to 8.5 pounds per gallon. However, these slurries were not light enough. Halliburton used an ultra-light foamed cementing technology to produce successful circulation and an effective seal. The use of this foamed cement slurry delivered downhole densities as low as 5 pounds per gallon, decreasing costs and increasing production.
Drilling time cut in half with managed pressure drilling An operator in the Bermudez region of Mexico used conventional drilling fluids in an underpressured, fractured field. Drilling resulted in lost circulation and associated problems with differential sticking and poor hole cleaning. Halliburton used managed pressured drilling to address these challenges, reducing drilling time by approximately 50 percent compared to other recently drilled wells in these fields. Development of local economy and workforce Operators in Kurdistan are dedicated to improving the country s economy and infrastructure. The government wants companies who will help improve the longterm economy by hiring and training local people, and developing local suppliers. Halliburton commitment to local employment and knowledge transfer Currently more than 92 percent of the Halliburton workforce worldwide is local. Halliburton transfers knowledge through hiring practices and education programs. Halliburton mentors local suppliers and builds sustainable-sourcing partnerships through its Supplier Diversity Program. Halliburton training centers located around the world provide structured training for every stage of an employees career. Increased investment in Brazil with Halliburton Technology Center One example of Halliburton s commitment to local employment and the transfer of knowledge is in Brazil. Halliburton invested more than $200 million dollars in three years in the country, building facilities and a technology center to train local workers. 96 percent of the 1,800 Halliburton employees in Brazil are local. With the new technology center, that number could grow. Logistical excellence in start-up operations Some operators in Kurdistan need companies that can begin operations within weeks of contract award. Halliburton already has an established a presence in Kurdistan. Boots & Coots has two offices and a warehouse to keep stock available for fast delivery. It also has engineers on the ground and can be on a rig anywhere within 24 hours notice. Halliburton is already the main supplier of drill bits for several operators in the country. Halliburton also has a strong presence in Southern Iraq and can quickly transport crews and equipment to meet customer needs in Kurdistan. Halliburton presence continues to grow in Kurdistan Halliburton services and products will continue to flow into the country over the course of the next year. By the end of 2012, Halliburton will have motor, drilling tools and SDL units in Kurdistan. Baroid Drilling Fluids, a Halliburton service, will have a team to support full operation in the country by the start of 2013. Baroid has a fully functional lab in Kurdistan and is already working in the region. Most Baroid fluid products are already in Kurdistan, with additional specialty products and equipment available nearby. By the first quarter of 2013, virtually every Halliburton product service line should have a presence in Kurdistan.
Papers showing Halliburton thought leadership in preventing fluid loss: Offshore Automated Managed Pressure Drilling in Fractured Basement Granite Reservoir: Case Study, Challenges and Solutions www.onepetro.org/mslib/app/preview.do?papernumber=spe-130318-ms&societycode=spe Comparison of Under-balanced and Managed-Pressure Drilling Techniques www.aade.org/techpapers/2007papers/web/managed_pressure_drilling/aade-07-ntce-39.pdf Maximizing Reservoir Potential Using Enhanced Analytical Techniques with Underbalanced Drilling www.onepetro.org/mslib/app/preview.do?papernumber=00090196&societycode=spe New Ultra-Lightweight Cementing Technology Proven with Case Studies, Combines Benefits of Current Leading Methodologies www.onepetro.org/mslib/app/preview.do?papernumber=spe-92970-ms&societycode=spe Foamed Cement vs. Conventional Cement for Zonal Isolation Case Histories www.onepetro.org/mslib/app/preview.do?papernumber=00062895&societycode=spe Successful Liner Application Using Foamed Cementing Technology for Low-Pressure, Naturally Fractured Formations www.onepetro.org/mslib/app/preview.do?papernumber=00069489&societycode=spe Offshore Automated Managed Pressure Drilling in Fractured Basement Granite Reservoir: Case Study, Challenges and Solutions www.onepetro.org/mslib/app/preview.do?papernumber=spe-130318-ms&societycode=spe Underbalanced Drilling Of Fractured Carbonates In Northern Thailand Overcomes Conventional Drilling Problems Leading To A Major Gas Discovery www.onepetro.org/mslib/app/preview.do?papernumber=00090185&societycode=spe Comparison of Under-balanced and Managed-Pressure Drilling Techniques www.aade.org/techpapers/2007papers/web/managed_pressure_drilling/aade-07-ntce-39.pdf Maximizing Reservoir Potential Using Enhanced Analytical Techniques with Underbalanced Drilling www.onepetro.org/mslib/app/preview.do?papernumber=00090196&societycode=spe Innovative MPD Techniques Improve Drilling Success in Mexico www.onepetro.org/mslib/app/preview.do?papernumber=spe-104030-ms&societycode=spe New Ultra-Lightweight Cementing Technology Proven with Case Studies, Combines Benefits of Current Leading Methodologies www.onepetro.org/mslib/app/preview.do?papernumber=spe-92970-ms&societycode=spe Cementing Technologies for Low Fracture Gradient and Controlling Loss Circulation www.onepetro.org/mslib/app/preview.do?papernumber=spe-102074-ms&societycode=spe Superior Zonal Isolation Provided by Ultralightweight Cementing Technology Increases Profitability of Wells In Difficult-to-Cement Areas www.onepetro.org/mslib/app/preview.do?papernumber=spe-104066-ms&societycode=spe New Binary LCM System Helped Cure Losses during Cementing while Minimizing Risk of Plugging for Slim Liners www.onepetro.org/mslib/app/preview.do?papernumber=spe-150712-ms&societycode=spe SPE 62895 Foamed Cement vs. Conventional Cement for Zonal Isolation Case Histories www.onepetro.org/mslib/app/preview.do?papernumber=00062895&societycode=spe www.halliburton.com Sales of Halliburton products and services will be in accord solely with the terms and conditions contained in the contract between Halliburton and the customer that is applicable to the sale. H09485 2012 Halliburton. All rights reserved.