Revision update NORSOK D-010, Rev.4

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Revision update NORSOK D-010, Rev.4 WIF Workshop 6.6.2012 by Terje Løkke-Sørensen, add energy

The short version We received over 300 comments, variable degree of relevance / complexity. 20 technical editors working 80% complete in processing comments, 55% overall There will be changes: formation strength, cement height/bonding, P&A, MPD, more Original target date for issuing industry hearing is 1.11. (30.3). >Your last chance to make a difference!

Why update? Standard Norge has a requirement for periodic revision. Last revised Aug. 2004 Change proposals has been received Recommendations from OLF Well Integrity and P&A Forum are transfered to D-010 Assess experience / learning from Montara/Macondo incidents Make it more international?

The Work > Milestones Work Invite industry to submit comments Read and evaluate comments Formulate changes (80% complete) QA check changes (ongoing) Tidy up language throughout the standard Issue rev.4 for hearing Processes comments from hearing Final issue Revised Milestones (original dates) Obtain comments round 1 (24.08.11) Obtain comments round 2 (15.11.11) Kick-off meeting w. Editor Group (26.10.11) New: Issue draft to EGD/DMF (15.8.12) Issue draft for Industry Hearing (30.3. 2012 1.11.2012) Industry hearing ( 8 4 weeks) Final (4 12 weeks) -> 30.6..2012 1.5.2013 10 months delay, mainly due to: large number of comments difficult comments/issues Editors busy with other work

Who does what? T.Løkke-Sørensen has been engaged by Standard Norge to coordinate the work Editor group process comments and formulate changes Standard Norge: Ensure compliance with general NORSOK requirements host LiveLink / e.mail provide secretarial support coordinate hearings OLF Expert Group Drilling and DMF will act as reference group and provide guidance and quality assessment Clauses 1. Scope 2. Normative and informative references 3. Terms, definitions and abbreviations 4. General principles 5. Drilling activities 6. Testing activities 7. Completion activities 8. Production activities 9. Sidetracks, suspension and abandonment activities 10. Wireline operations 11. Coiled tubing operations 12. Snubbing operations 13. Under balanced drilling and completion operations 14. Pumping operations 15. Well Barrier Elements Acceptance Tables Annex A (Normative)

Editor Group NORSOK D- 010 rev. 4 Main Editor Co-editor Name, Company Name, Company 1. Scope Terje Løkke-Sørensen Michelle Monteau, Statoil 2. Normative & Informative Ref. Terje Løkke-Sørensen Michelle Monteau, Statoil 3. Definitions and Abbreviations Terje Løkke-Sørensen Michelle Monteau, Statoil 4. General Principles Tore Fjågesund, Lundin Dag Sande, Statoil 5. Drilling Activities Ørjan Bustnes, Spring Energy Arne Hjelle, Statoil 6. Testing Activities Gary McDonald, Wintershall Arild Fosså, Statoil 7. Completion Activities Lars-Endre Hestenes,BG John Helge Olsen, Statoil 8. Production Activities Anders Hjellen, BP Hilde Brandanger Haga / WIF 9. ST, Susp. & Aban. Activities Garry Brewster, Talisman Svein Inge Rafoss, Statoil 10. Wireline Operations Alistar Buchanan, Statoil Terje Olsen, COP 11. Coiled Tubing Operations Kenneth Maribu, COP Alistar Buchanan, Statoil 12. Snubbing Operations Jack Nerdrum, Wild Well Control Alistar Buchanan, Statoil 13. Under Balanced D&C Ops. Per Cato Berg, Statoil Connor Stricklan, Shell 14. Pumping Operations Kristian Haarestad, PTC Not needed Annex A Ørjan Bustnes, Spring Energy Not needed

Sources of Comments Comments obtained through invitation - + 300 Recommendations from OLF s Macondo report Recommendations from PSA s Macondo report

Regulations vs. D-010 D-010 has become a integral part of the guidelines to PSA s regulations and is often refered to Short comings is corrected by adding regulatory requirements We should consider to include these Short comings in D-010 Rev.4 will be included in the regulations for 2014 (given release by August 2013). Til 84 Overvåking av brønnparametere Kravet til innsamling innebærer blant annet at data som kan indikere en mulig brønnkontrollhendelse blir målt, registrert og behandlet. For å oppfylle kravet til innsamling bør standarden NORSOK D-010 kapittel 4.7.2, 5.7.3 og 5.7.4.2 brukes, med følgende tillegg: ved prøving av formasjonens oppsprekkingsstyrke bør det trykkprøves til maksimalt for-ventet trykk for brønnseksjonen.

D-010 vs. Regulations D-010 has instructions which are specifically linked to PSA -> PSA has expressed no concern if these links are removed in order to make the standard less «Norwegian». 4.10.4 Special well incident reporting The Petroleum Safety Authority (PSA) shall be notified immediately in the event of shallow-gas is detected and in the event of well influx/inflow (kick) where the following steps have occurred: a) Positive indication of flow from wellbore. b) The wellbore is closed by shutting in the BOP/safety valve. c) Pressure or pressure build up is registered in the closed-in wellbore. d) Kill operation is initiated, which can be 1) bull heading; 2) driller's method or weight and weight method; 3) volumetric method. Additional information shall be reported by completing the relevant sections in SPA s Common Data Reporting system.

OLF Macondo recommendations OLF s Macondo recommendations; 1.1 - Include the requirement for locking casing hangers in the applicable standard. 1.2 - Expand the requirements related to negative pressure testing in the applicable standard. 2.1 - Introduce and define the term critical cement job in the relevant standard. 2.2 - Introduce the requirement for independent design verification of critical cement jobs in the relevant standard http://www.olf.no/en/activities/hse-and- operation/lessons-learned-for-the-deepwater- HorizonMacondo-accident 3.1 - Implement periodic physical testing of emergency subsea well control activation systems as a standard, and include the requirement in the relevant standard. 3.5 - Establish a recommended practice for prepping BOP s for ROV activation in the relevant standard. -

Industry Comments Section 2: A: Chapter no. 3: B: Suggested text 4: C: Com m ents secondary well barrier 3 3.1.32 second barrier that prevents flow from a source change from "object" to "barrier" or "well barrier", which better covers what is meant 3 3.1.46 well barrier element WBE object that alone can not prevent flow from one side to the other side of it self, but together with other well barrier elements can form a well barrier the original sentence did not really cover the full meaning 3 3.1.19 permanent abandonment well operation where the well or part of the well is plugged and abandoned permanently, and with the intention of never being used or re-entered again poor grammar - change from "permanent abandonment" to "permanently abandoned"? alternatively change from well status to "well operation" or similar 3 3.1.26 primary well barrier; first well barrier that prevents flow from a source change from "object" to "barrier" or "well barrier", which better covers what is meant 3 3 Term's, definitions and abbreviations A clear understanding of the terms used on page 7 is essential for people to understand how to apply the well barrier techniques. Worth considering spending time to make all these as clear 3 3,1,46 I believe that the definition could be clearer. The example given is "CT BOP". I've read the definition and considered the example many times but cant get it clear in my head 3 3.1 Terms and definitions Add: Dependent barrier element= a barrier element whose failure can have a detrimental effect on the well integrity BOP connector, wellhead and surface casing can be such elements if drilling in deep water without riser margin. If these fail, you may also loose the primary barrier. This phenomena is not to be confused with a common barrier. It may also be worthwhile to describe this further in chapter 4.2.3.3. The remedy to this is initially similar to the common barrier, by awareness, 3 3.1.15 leak testing add: Normally used in conjunction with testing to a pressure not exceeding maximum working pressure (also see 3.1.25 pressure testing) Emphasize that this is to verify a maximum working pressure 3 3.1.25 pressure testing Application of pressure to verify the design pressure of the equipment in question. Normally used in conjunction with factory acceptance testing or recertification where operational safety factors are not included (design pressure being higher than working Emphasize that this is to verify a design pressure 3 3.1.26 Primary w ell barrier A first object (typically weighted fluid) or envelope that prevents flow from a source. The primary well barrier is always in direct contact with the pressure source The primary barrier is not necessarily one object (except for fluid), but mostly a chain of objects constituting an envelope. Emphasis that the primary barrier always sees pressure. 3 3.1.32 Secondary w ell barrier 3 3.1.40 temporary abandonment A second barrier envelope beyond the primary barrier acting as redundancy. This should be shown as the ultimate closure as close to the inflow source as possible. This should not be confused with a second element in a sequence. Well status, where the well is abandoned with the intention that the operation will resume, or the well will be used for another purpose, within a specified time frame (from days up to Add sentence before current text: The quality of being safe and robust in its design and use through (delete "to reduce..) The secondary barrier is not one object, but a chain of objects constituting an envelope. It is important to emphasis that this is not number two in a sequence which many people believe. Should be aligned with text in 4.2.2. Shorten the text, and remove well control comment, there shall always be adequate well control functions in place (although not necessarily a drilling BOP) Integrity in its common sense is " being honest and firm in your moral principles". We have translated a human behaviour to a technical term - it is believed that it is more appropriate to link this to being "safe and robust" rather than "reducing risk of formation fluids...") 3 3.1.51 w ell integrity Consider providing clear guidance on performing inflow tests on wells. leak testing guidelines 4 4,2,3,5 are quite specific, perhaps inflow testing should be too It should not be for the standard to tell what to report to the authorities, the authorities should 4 4.10.4 Special w ell incident reporting Remove prescribe this in their legislation. Statement like this also anchor the standard to Norway. 4 4.2.1 Well barriers general Remove first paragraph Repetition of definition 3.1.45

Out - in 4. General Significantly altered Out: WC equipment arrangement Activity program content SIMOPS & Critical Activities 8. Production Ref. previous presentation In (new/strongly enhanced) When and how to make WBS Inflow testing - how Formation testing and acceptance Reilef well plan & well capping WI management system

Out - in 9. P&A Significantly upgraded Out: - In (new/strongly enhanced) Definition of suspension vs. temp. P&A Examples of P&A options Flow-chart decision making: Section milling Squeeze or circ. cement into annulus WBEAC: Casing cement, 30 m of bonded cement Cement plug Shale formation (new) Altenative (to cement) casing bonding material (new) 13 UBD / MPD Significantly upgraded Out: - In: MPD with surface BOP Operating limits WC action procedures and drills WBEAC: UBD/MPD choke system (new) Staticallly underbalanced fluid column(nw)

!!! WHEN IS YOU LAST CHANCE TO COMMENT ON REV.4?

A standard is worth nothing unless it is referred to! Knut Heiren, Standard Norge, 2004