Petrobras sets new pre-salt production record

On 18 May, Petrobras set a new pre-salt production record, with output of 322,100 barrels of oil per day (bpd), 11,000 bpd up on the previous record of 311,500 bpd, set on 17 April.

In addition to encouraging figures for pre-salt production, the company also achieved record output in Espírito Santo, with a monthly average figure of 322,700 bpd, surpassing the previous record set in December 2011.

During May, the production of oil and LNG for all Petrobras fields in Brazil averaged 1.892 million bpd, 1.7% down on the April figure (1.924 million barrels). Including the share operated by Petrobras for partner companies, exclusive oil output in Brazil was 1.942 million bpd. This drop was partly offset by the increasing contribution from pre-salt areas to consolidated output results.

In May, total output of oil and natural gas from domestic fields was 2.267 million barrels of oil equivalent per day (boed), 2.1% down on the previous month. Including the share operated by Petrobras for partner companies, total output was 2.359 million boed.

Added to the company’s output abroad, Petrobras’ total oil and natural gas output in May averaged 2.500 million boed, 2% down on the April figure. The drop in output was due to scheduled maintenance shutdowns on platforms P-25 and P-31, in the Campos Basin’s Albacora field, and on FPSO Cidade de Angra dos Reis, operating in the Campos Basin’s Lula field pilot project.

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Baker Hughes drilling fluid system optimizes circulating pressures

Posted on 02 July 2013

The Baker Hughes MPRESS drilling fluid system was developed and tested using a rigorous quality assurance program at the Baker Hughes fluids labs in Houston.

Baker Hughes’ recently commercialized the MPRESS drilling fluid system, which enables operators to manage circulating pressure more efficiently by reducing stand pipe pressure and applying more horsepower to the bottomhole assembly and drill bit.

The shear-thinning rheological profile of the MPRESS system has a “rapid-set/easy-break” gel structure that minimizes the cuttings in the vertical section of the wellbore from settling into the curve during connections and trips. It also has elevated ultra-low-shear-rate viscosity (ULSRV) that minimizes the likelihood of the cuttings in the lateral section from agglomerating on the bottom of the wellbore “gluing down” during connections. Both the rapid-set gels and elevated ULSRV help keep the wellbore clean and minimize torque and drag associated with cuttings beds in the lateral section. In addition, the gels within the MPRESS system have the ability to break easily, reducing surge pressure when tripping in the hole so mud losses are reduced.

The MPRESS system  reduces viscosity in the drillstring, while optimizing viscosity in the annulus for more efficient cuttings transport. The pressure saved in the drillstring can be used to increase flow rate, provide more power to motors and bits, and save wear and tear on surface equipment. In combination with other Baker Hughes technologies, such as the Autotrak Curve rotary steerable system and Talon high-efficiency PDC bits, the pressure profile of the MPRESS system enables efficient drilling of challenging lateral sections in unconventional reservoirs.

MPRESS, Autotrak and Talon are a trademarks of Baker Hughes.

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Deloitte and NASA bring space-age risk management to oil and gas industry

In a move designed to bring advanced risk-management capabilities to America’s energy industry, the Deloitte Center for Energy Solutions and the NASA Johnson Space Center have entered into a strategic alliance to offer services, such as operational risk-management, to oil and gas companies.

“Activities like deepwater drilling, undersea production and pipeline operations all face the same kind of ‘black swan’ events that pose a threat to space exploration,” said David Traylor, a principal at Deloitte & Touche LLP.  “Ultimately, proactively identifying and mitigating low-probability yet high-impact events can save lives, resources, money, reputation and environmental disruption.”

Deloitte and NASA will jointly offer a range of services in the quickly evolving risk-sciences arena, such as risk modeling and simulation, to help oil and gas companies eliminate blind spots in their decision making. Such services apply sophisticated risk-modeling and simulation tools and techniques, like Bayesian networks and agent-based modeling to reduce uncertainties in engineering and operations at oil and gas companies – in much the same way NASA has done with its space program.

As part of NASA’s 135th and final space shuttle mission, for example, it used risk-modeling and simulation techniques to evaluate the potential risk scenarios of using a Soyuz spacecraft to rescue a stranded crew from the International Space Station – with no backup shuttle capability. This process identified risks linked with the Russian vehicle and helped drive a decision to extend crew time on the space station.

“NASA is a leader in applying risk strategy to highly complex systems that operate in extremely demanding environments, while Deloitte is a leader in providing valuable professional services to oil and gas companies,” said veteran astronaut William “Bill” McArthur Jr., director of Safety and Mission Assurance at the Johnson Space Center. “Energy companies facing catastrophic consequences from low probability risks will now have a range of tools and techniques to minimize the probability of these risks and improve their overall safety culture.”

Deloitte and NASA also expect that oil and gas companies will find Deloitte’s risk-sensing services valuable in emerging risk identification – a set of complex tools and techniques, like precursor analysis and event-occurrence trending, to highlight changes in risk likelihood.

NASA used these techniques when it was having problems with the space shuttle’s attitude-control thrusters, which could limit the ability to control the position of the shuttle while in orbit. Because the thrusters could not be tested on the ground, precursor analysis was used to determine leading indicators and surrounding events preceding thruster usage – allowing the space agency to resolve the problems before future missions.

Deloitte and NASA’s offerings will also include what Mr Traylor calls “dynamically improving risk-management techniques,” such as artificial-intelligence tools applied to remote decision-support systems.

In addition, Deloitte and NASA will offer services aimed at helping oil and gas companies measure and monitor the effectiveness of their risk culture among their employees and contractors – enabling them to detect whether their work environments and processes are increasing the likelihood of a risk occurring.

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Baker Hughes’ new gravel-pack, frac-pack system completes job in Gulf of Mexico

Posted on 28 June 2013

Baker Hughes completed the first commercial frac-pack job with its SC-XP system in the GOM for a major operator in the South Timbalier field.

Baker Hughes recently performed the first commercial frac-pack job with the SC-XP system in the Gulf of Mexico (GOM) for a major operator in the South Timbalier field. The system was used to frac pack a completion in 7 ?-in. casing at a depth of 12,600 ft (3,840 meters).

The new gravel-pack and frac-pack system is designed to increase operational efficiency by withstanding higher bottomhole temperatures and to improve production ratings compared to previous sand control systems. The SC-XP gravel-pack and frac-pack system combines field-proven technology and design enhancements in a single package. Its new design provides advanced performance in extreme environments, as recently demonstrated during the frac-pack completion of a well in the GOM.

The single-platform SC-XP system can be used for both frac packing and openhole gravel packing. The system incorporates the critical features of field-proven Baker Hughes gravel pack systems coupled with engineering design enhancements onto a single optimized platform. It can be run into the well up to 30% faster than previous systems. Available in 7 ?-in. and 9 ?-in. sizes, the SC-XP system can operate reliably at temperatures up to 400°F (204°C), treating pressures of 15,000 psi, and can convey proppant volumes up to 1,600,000 lb at a rate of 65 bpm, while still preserving casing integrity.

The system has undergone extensive erosion and stack-up testing at Baker Hughes technology centers and test wells. The SC-XP system is a Baker Hughes PayZone solution, designed to help operators maximize recovery from their reservoirs.

SC-XP is a trademark of Baker Hughes.

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New Energy in Depth website consolidates shale information

Posted on 26 June 2013

A new Energy in Depth (EID) website has been launched that brings together EID’s various state and regional programs.

A new Energy in Depth (EID) website has been launched that brings together EID’s various state and regional programs and leverages social and digital media tools to engage and educate various stakeholders. ?“Back when we first launched EID, most reporters thought ‘hydraulic fracturing’ was an injury you got while water skiing, and I don’t even want to tell you what they thought ‘fracking’ was,” said Jeff Eshelman, VP of public affairs and communications for IPAA and executive VP of EID. “EID today is viewed by journalists, policymakers, the public and our industry colleagues as a critical, credible and timely source of news, views and research on all things shale. It’s our hope that the launch of this new online platform strengthens that reputation moving forward.”

With the launch of EID’s new web portal, several state and regional efforts are being consolidated into one program, and readers can filter and access content according to specific needs, broken down by state or region. The new EID site hosts state-specific tabs for Ohio, California, Illinois, Michigan and Texas, as well as regional pages for the Marcellus (Pennsylvania, New York and West Virginia) and the Mountain States (Colorado, Nevada, Montana and Utah). Additional tabs are expected in the coming months.

A new web-video series has also been launched to address and correct common and pervasive myths impacting the debate over the development of oil and natural gas from shale. The first video explains the truth behind the myth of high radon content in the Marcellus Shale, a talking point that opponents of a pipeline project in New York frequently cite as a reason to stop development. Additional videos in a similar format will be released on the website every couple weeks.

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New representatives to enhance IADC presence in Europe

By Amy Rose, director of external relations

John Atkinson will serve as regional director – North Sea, based in Aberdeen.

John Boogaerdt will serve as regional director – Europe, based in The Netherlands.

To more effectively represent members in Europe and the North Sea, IADC recently appointed John Boogaerdt and John Atkinson as regional representatives. Mr Boogaerdt will serve as regional director – Europe, based in The Netherlands, and Mr Atkinson will serve as regional director – North Sea, based in Aberdeen; they join IADC’s Denmark-based representative Jens Hoffmark, regional vice president – European operations.

“At the heart of everything that IADC does is a commitment to enhancing operational integrity and championing better regulation. Our regional representatives are based in the same areas across the globe that our members are, allowing IADC to truly represent industry interests internationally,” said Stephen Colville, IADC president and CEO.  “IADC regional representatives, who have deep knowledge and understanding of the regulatory and legislative environment in their assigned area, are invaluable to achieving those goals.”

Besides its three Europe-based representatives, IADC also has a team of regional representatives in Australia, Asia Pacific, the Middle East and Africa.

With more than 35 years of experience with Shell, OMV, Parker Drilling and Schlumberger Business Consulting, Mr Boogaerdt is a senior oil industry professional. His experience encompasses a wide range of E&P subjects, with specific expertise in management of major oil and gas projects. In 2005, he became senior vice president of production at OMV. In 2009, he was named managing director at Parker. From 2011, he served as wells committee manager at the International Association of Oil and Gas Producers.

He has worked and lived in the UK, Austria, Norway, Malaysia, Egypt, Oman, China and the Netherlands.

Mr Atkinson has more than 40 years of experience in the industry. He previously served as vice chairman and chairman of the IADC Australasia Chapter and as vice chairman of the IADC North Sea Chapter. He began his career with Ben Line Group before joining Ben Odeco and later Atlantic Drilling. He joined Diamond Offshore Drilling UK in 1992 as technical services and safety case manager. Over the next 18 years, Mr Atkinson held various positions within Diamond across the world, including Malaysia, Singapore, Australia and Scotland.

“John Boogaerdt and John Atkinson bring with them valuable experience with which to positively impact industry interests in Europe and the North Sea, and I am proud to welcome them to our team,” Mr Colville said.

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Maersk Drilling: Angola and Nigeria are focal points in strong West African market

By Astrid Wynne, contributing editor

The Maersk Deliverer deepwater semi is contracted to Chevron in Angola into 2014. Angola and Nigeria are two of Maersk’s biggest target areas, where the company sees robust growth continuing for the coming years.

Significant development campaigns, particularly in Angola and Nigeria, continue to drive aggressive growth in West Africa, and Maersk Drilling sees the region as a market that could overtake the two other Golden Triangle markets over the next few years. “If we look at the last six months, Brazil is on a downward trend, with rigs being released, and the US GOM hasn’t really picked up on activity yet, although it remains a very strong market. West Africa has had by far the most activity,” Michael Reimer Mortensen, director of the deepwater team, commercial department at Maersk Drilling, told Drilling Contractor. “We’re seeing more exploration work by both the big oil majors and smaller independents.”

“If we look in our crystal ball towards 2025 to 2030, Angola and Nigeria have the biggest acreage that is known to be developed by the oil companies. They are in the middle of a massive increase in rig activity and development activity,” Mr Mortensen continued. To illustrate his point, he noted that Total has an outstanding tender for two new floaters in Nigeria and two in Angola. ExxonMobil in Nigeria is also carrying out an evaluation on tenders for two semis for two-year contracts. Then there are the extensions on existing contracts. In Angola, Cobalt International has an outlook for longer-term contracts, and other oil companies are carrying out surveys on rig availability and indicative pricing and pre-qualifications on fields slated for development in the next year or two, Mr Mortensen added. “Our focus is linked to our customers’ focus, and our customers are targeting Angola and Nigeria. Other markets have great potential, though exploration activity is higher than development activity. We’re seeing Ghana with some huge discoveries and some big developments.”

As testament to Ghana’s up and coming status, Hess announced in February its seventh successive exploratory well on the Deepwater Tano/Cape Three Points Block with the Pecan North 1 well. Just a month earlier, Eni had reported the successful drilling of the first oil delineation well in the Sankofa East oil discovery. They estimated the discovery has approximately 450 million barrels of oil in place, with recoverable resources of up to 150 million barrels.

The other side of the continent, East Africa is also one to watch. Several discoveries have taken place in the region over the past year, such as Statoil’s third discovery in Block 2 offshore Tanzania of 4-6 trillion cu ft, announced in March. Mr Mortensen said East Africa is an area that is often brought up in client meetings and conferences; however, he sees no “hard focus” on the part of oil companies in the near term. This is more likely a result of companies prioritizing resources in a heated market rather than a lack of attractive opportunities, he explained.

Maersk Drilling currently has two floaters in Africa. The Maersk Deliverer semi is contracted to Chevron in Angola until Q3 2014 with a 12-month option. Another semi, the Maersk Discoverer, is contracted to BP in Egypt until Q3 2016. The company also has two uncontracted newbuild drillships that could find their way to Africa upon delivery – the Deepwater Advanced III and IV are due out of Samsung’s yard in Q2 and Q3 2014, respectively. No contracts are finalized at this point, but Mr Mortensen said he sees an extended presence in West Africa for the company’s deepwater arm.

“We have a definite strategy to reach 30 rigs (total) by 2018. Short term, in the next five years, I would like to see four or more of these rigs added to our West Africa operations,” he said. “We feel it’s an exciting place to work, and we think that our way of doing business is well suited to the area.”

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