2016.otcnet.org Tuesday, May 3 | Houston, Texas

| THE OFFICIAL 2016 OFFSHORE TECHNOLOGY CONFERENCE NEWSPAPER | DAY 2

BP Executive: True Test Fiery Ice of Downturn Will Come Takes Center During Recovery Stage n Leading experts to discuss advances n Energy demand is expected to increase by one-third by 2035, but oil and gas in E&P testing of gas hydrates during companies need to start looking at hydrocarbons as products to streamline. Wednesday luncheon. BY DARREN BARBEE “It’s how we will improve through BY JENNIFER PRESLEY the productivity of our oil sector and magine the oil and gas world as an assembly line, put costs on a downward curve.” t is the ice that burns, and it is more than an industrial Ichurning out cubes of oil and natural gas. Assem- For instance, BP’s Mad Dog Ihazard plugging pipelines. It goes by many names—fire bly lines are efficient. Changes mean swapping out Phase 2 project in the Gulf of Mex- in the ice or fiery ice being two of the more popular descrip- one part—not the entire system. Industrial and avia- ico went through about $10 billion tors. Gas hydrate is the curious clathrate formed by natural tion companies typically cut costs annually. But on the in cost trims, Looney said. gas and water. Found in the Arctic and in the deepwater hydrocarbon conveyor belt, cost efficiency doesn’t seem “This was a $20 billion project, continental margins around the globe, the energy poten- to follow any logical pattern. Bernard Looney and we’ve brought it down to under tial of this other unconventional hydrocarbon is keeping “In oil and gas, specifically the upstream, costs as we $10 billion with expected returns researchers busy unlocking its secrets to better understand know tend to follow oil price and in general have trended improved despite a lower oil price,” he said. its environmental and economic impact. upward over time,” said Bernard Looney, BP’s CEO for However, the real value might be in opening up the “Gas hydrates present an enormous potential to upstream, May 2, at OTC. “We need to change this.” company to using more technology and collaboration. contribute in the natural gas supply basket and can The U.S. shale revolution, Looney said, is part of the In 2015, the company teamed with Maersk to train rig affect the gas market, if commerciality is established way forward—a fundamentally different mindset that teams in an immersive simulator in advance of an Egyp- within the foreseeable future,” said Pushpendra the industry should adopt. tian project. Kumar, Keshav Dev Malviya Institute of Petroleum “This combination of innovation and continuous Exploration, ONGC. improvement is the driving force for the future,” he said. See DOWNTURN continued on page 23 In light of the current market difficulties, the impor- tance of a goal like gas hydrate commercialization might not be immediately clear. However, for countries like Japan, Korea and India, the need is there. “Gas hydrates are very important for India in view of the huge demand-supply gap leading to the import of Petrobras, Partners Rise LNG at high cost and planning for natural gas transpor- tation through transnational pipelines,” Kumar said. Encouraging results from recent exploration and to Challenges with Lula field testing programs show that gas hydrate deposits are technically recoverable. These results and more will be the focus of a special lunch discussion on Wednes- day, May 4, titled “Gas Hydrate Exploration and Pro- NE Pilot duction Testing: Encouraging Results and Future Plans” from 12:15 p.m. to 1:45 p.m. Scheduled to join n Production from the field is pushing Petrobas closer to its 1-MMbbl/d Kumar on the panel are Dan McConnell, Fugro; Tim- othy Collett, U.S. Geological Survey; and Ray Boswell, presalt goal. U.S. Department of Energy. Collett will provide an overview of world activities, BY VELDA ADDISON Add to this the pressures of being a fast-track proj- including the first gas hydrate marine production test ect in the early development stage of the Santos Basin in Japan. Boswell will present on current perspectives hen Petrobras and partners began the Lula NE Presalt Cluster, a new frontier in 2009, charged with not on gas hydrate evaluations as a resource, including Wpilot project offshore Brazil, they had a tall order only gathering data that could prove beneficial in future the latest concepts of resource volumes, exploration to fill—implementing new technologies as part of a fast- field developments but also for generating revenues to approaches and production technologies. track project facing several technical challenges. help finance other nearby presalt fields while doing its Kumar will specifically cover results from the 2006 Indian These include reservoir fluid variations, the presence of part to help the company reach a 1-MMbbl/d target National Gas Hydrate Program Expedition 01 and from the fluid contaminants such as CO₂, a high gas-oil ratio and water from presalt fields in 2017. recently completed Expedition 02 in his presentation. He depths of 2,120 m (7,300 ft) with no “off-the-shelf” proven also will speak to the efforts being made by India to com- subsea technology capable of handling such field conditions. See CHALLENGES continued on page 23 mercialize gas hydrates within the next five years. n

SCHEDULE Editorial Director Peggy Williams OF EVENTS SM

E&P Group Managing Editor Jo Ann Davy All events in conjunction with OTC 2016 will be held at NRG Park in Houston, Texas, unless noted otherwise. Editor-In-Chief Mark Thomas Tuesday, May 3 7:30 a.m. to 5 p.m...... Registration Executive Editor Rhonda Duey 7:30 a.m. to 9 a.m...... Topical/Industry Breakfasts

Senior Editor, Drilling 9 a.m. to 5 p.m...... University R&D Showcase Scott Weeden 9 a.m. to 5:30 p.m...... Exhibition

Senior Editor, Production 9:30 a.m. to 12 p.m...... Technical Sessions Jennifer Presley 12 p.m. to 2 p.m...... Distinguished Achievement Awards Luncheon Chief Technical Director, (formerly the Annual OTC Dinner) Upstream Richard Mason 12:15 p.m. to 1:45 p.m...... Topical Luncheons 2 p.m. to 4:30 p.m...... Technical Sessions Associate Managing Editor Ariana Benavidez 4 p.m. to 6 p.m...... Networking Event

Senior Editors, Digital News Group 7:05 p.m...... OTC Night at the Ballpark (Houston Astros vs. Velda Addison Minnesota Twins at Minute Maid Park) Darren Barbee

Contributing Editors Harry Brekelmans Wednesday, May 4 Domenic Carlucci 7:30 a.m. to 5 p.m...... Registration George Griffiths Phaneendra Kondapi 7:30 a.m. to 9 a.m...... Topical/Industry/Ethics Breakfasts Philippe Lavagna Manoj Nimbalkar 9 a.m. to 5 p.m...... University R&D Showcase Oscar Rivera 9 a.m. to 5:30 p.m...... Exhibition Chris Serratella Vibha Zaman 9:30 a.m. to 12 p.m...... Technical Sessions

Corporate Art Director 12:15 p.m. to 1:45 p.m...... Topical Luncheons Alexa Sanders 2 p.m. to 4:30 p.m...... Technical Sessions

Senior Graphic Designers 4 p.m. to 6 p.m...... Spotlight on API Global Standards Networking Event Robert Avila Felicia Hammons 4 p.m. to 6 p.m...... OTC Reaching Out and Reaching Up— Networking in the Downturn Photography by CorporateEventImages.com

Production Manager Thursday, May 5 Gigi Rodriguez 7:30 a.m. to 2 p.m...... Registration

Vice President-Publishing 7:30 a.m. to 9 a.m...... Topical/Industry Breakfasts Russell Laas 9 a.m. to 2 p.m...... Exhibition

HART ENERGY LLLP 9 a.m. to 5 p.m...... University R&D Showcase 9:30 a.m. to 12 p.m...... Technical Sessions President and Chief Operating Officer 12:15 p.m. to 1:45 p.m...... Topical Luncheons Kevin F. Higgins 2 p.m. to 4:30 p.m...... Technical Sessions Chief Executive Officer 4 p.m. to 5 p.m...... OTC Closing Reception Richard A. Eichler

The OTC 2016 Daily is produced for OTC 2016. The publication is edited by Friday, May 6 the staff of Hart Energy. Opinions ex- pressed herein do not necessarily 7 a.m. to 4:30 p.m...... d5 at Rice University reflect the opinions of Hart Energy or its affiliates.

Hart Energy 1616 S. Voss, Suite 1000 Houston, Texas 77057 OTC Night at the Ballpark 713-260-6400 main fax: 713-840-8585 Join your colleagues tonight for OTC at the Ballpark, an evening of major league baseball. Come out to watch the Houston Astros play the Minnesota Twins! The game starts at 7:05 p.m. at Minute Maid Copyright © May 2016 Park. For more information or to purchase tickets, visit astros.com/OTC. Hart Energy Publishing LLLP

OTC SHOW DAILY | MAY 3, 2016 | TUESDAY 3 Industry’s Perspective on Subsea Separation Future n The challenges that still exist for subsea separation were discussed during a Monday breakfast panel at OTC.

BY DR. PHANEENDRA KONDAPI separated water, and opportunities to reduce bulky and heavy equipment. ubsea separation technology is one of the fastest Welcoming the audience and panel speakers, session Sgrowing technologies due to its huge potential to chairman Dr. Phaneendra Kondapi addressed that subsea increase recoverable reserves and to accelerate pro- separation projects have been installed in the North Sea, duction. It also enables cost savings by moving some of Gulf of Mexico, West Africa and Brazil, and many other the traditional topsides processing to the seabed. Sub- subsea field developments are in the process of consider- sea separation also eliminates multiphase flow for long ing subsea separation systems. There have been only five distance transportation. Yet there are only a handful of projects that have been delivered and are in operation to subsea separators in the world that are in operation. On date, though there are an estimated 5,000 wells in opera- Left to right: Rune Fantoft, Fjord Processing; session Monday morning during the “5,000 Wells and Only Five tion in deepwaters around the globe. Certainly there are chair Dr. Phaneedra Kondapi; James Pappas and Jeff Separators: An Industry Perspective on Subsea Separa- limitations in making the subsea separation viable and Jones of Exxon Mobil; and Donald Underwood, FMC, tion Future” breakfast session, an expert panel discussed accessible to all operators, but the technology needs and prepare to take the stage for Monday’s topical break- the challenges that still exist for subsea separation such industry collaboration should overcome these challenges. fast, “5,000 Wells and Only Five Separators: An Indus- as cost and installation, improving an efficient compact James Pappas, president of RPSEA, added that he try Perspective on Subsea Separation Future.” (Photo by design, achieving separation from heavy oil, disposal of believed this discussion was not only about the past but CorporateEventImages.com)

also an opportunity to focus on the longer term future of subsea separation. The suc- cesses to date have opened the door to the realities associated with separation, and facts show that there are certain gaps that must be addressed to take full advantage thereof. Among those issues that require further analysis are dealing with the all too common perception of added risk, simpli- fication of the complexities surrounding separation in the subsea environment, potential standardization, using a systems engineering full life-cycle approach to determine value creation as well as han- dling reservoir uncertainty. He followed by comparing the expanded use of sub- sea separation and its potential to other oilfield advances such as horizontal drill- ing, in which adoption frequently results in serendipitous improvements that were previously not foreseen as well as other associated gains that can result in true and sometimes disruptive progress through new technologies. The first pilot separation system was installed on the Troll Field in 1999 for liquid-liquid separation and in 2001 for gas-liquid separation. The operating oil-water separation projects are Statoil Tordis and Petrobras Marlim, and gas-liq- uid separation projects are Shell Perdido, Shell BC-10 and Total Pazflor. Don Underwood, general manager of emerging technologies at FMC Technol- ogies, mentioned the factors that have slowed down the subsea separation, which include cost, risk and complexity in designing the complicated systems and technology qualification programs. But things have been changing to close the gaps, he said; the new lower cost technolo- gies and system architectures have allowed reducing or even eliminating the need for much of the costly equipment. Better qualifications programs are taking place for deeper water and tougher environ- ments. The industry is finding solutions to reduce complexity and risk. Companies are streamlining their technical staffs and suppliers are combining to provide broad system level expertise. Based on the reservoir analysis, there are hundreds of wells that would benefit from subsea separation during this current economic environment. When the indus- try cannot go for greenfield projects in the current market and cannot drill more wells, subsea processing offers a way to get more out of existing reservoirs.

See PERSPECTIVE continued on page 21

4 TUESDAY | MAY 3, 2016 | OTC SHOW DAILY Downhole Pressure Control, Safety Top Deepwater Agenda n Well control with MPD offers both faster reaction to kicks and less formation damage. Technology continues to advance in MPD and mud pulse telemetry systems.

BY SCOTT WEEDEN However one challenging area for HSMPT sys- “Recent experience shows that a higher percentage of tems is drilling in HP/HT environments. “These land operations are starting to consider HSMPT systems anaged-pressure drilling (MPD) is becoming more operations must contend with the Arrhenius equa- as an alternative, depending on the complexity of drill- Mmainstream for deepwater drilling. Adding perma- tion, which says the reaction rate for every 10 C ing. The wide distribution of HSMPT has removed their nently installed MPD systems to newbuild rigs and as an [50 F] increase in temperature, therefore reducing special nature and a natural commoditization process is upgrade to older rigs will likely follow the same accep- the component life by a factor of two,” according to ongoing,” the authors explained. tance path that top drive systems did 20 years ago. the authors. A MPT system was introduced in 2015 that is capable of At 9:30 a.m. on Tuesday an OTC technical session will In the last few years, significant steps were taken to reliably transmitting 10 bits per second and more. “Evolu- focus on “Offshore Drilling II: Managing the Pressure.” increase reliability of the HP/HT bottomhole assemblies. tionary improvements to the HSMPT system have been Six papers will be presented describing various aspects These critical technologies included multichip modules, shown for general pulser hardware and the sophisticated sur- of managing pressure and data transmission in drilling sensors developed specifically for the HP/HT environ- face system, enabling fully automatic tuning of the receiver deepwater wells and long onshore laterals. Highlights ment and active cooling methods. to the current MPT channel conditions,” the authors said. n from two of the papers follow.

MPD systems in GoM The industry faces several challenges in MPD for deepwater projects, including reliability, barriers, offshore environments, limited space, riser gas management, gen- eral riser interface issues, training and regu- latory requirements. In the OTC-27265-MS paper, ABS presented information on lessons learned and challenges faced in the first classification of an MPD system deployment in the Gulf of Mexico (GoM). One of the more surprising determi- nations was that multiple-vendor MPD systems offer significant advantages over single-vendor systems. “Preferred operat- ing features available from the manufac- turer or supplier of each sub-system offer different performance advantages not avail- able universally. More simply expressed, the ‘best’ control system software may not be available from the vendor offering the best RCD [rotating control devices] or the best drilling choke,” the authors said. There are countless decisions that go into selecting the MPD system. Each rig has a completely different set of conditions for designing, installing and operating the sys- tem. “Meeting the challenges of space limita- tions, weight restrictions, power requirements and economic realities like delivery time and purchase costs requires sound engineering judgement,” the authors continued. In one recent study it was concluded that electrically operated valve actuators would make a better system, but no com- mercially available MPD systems used that kind of valve. The company ordered a custom-built system that fully matched their specifications. “Electrically actuated valves have faster response times and are easier to provide with auxiliary or backup power than valves operated hydraulically or pneumatically,” the authors explained. The adoption rate of MPD systems “is likely to accelerate as more people become aware of the opportunities to save time and money while drilling faster and ulti- mately safer wells by using some form of MPD,” the authors concluded.

HSMPT evolution About 10 years ago, the advent of high- speed mud pulse telemetry (HSMPT) began. Currently HSMPT system downhole tools are fully instrumented with improved hardware, according to OTC-26886-MS paper presented by Halliburton. “HSMPT systems enabled an increase in the drilling efficiency with a higher ROP, more stable boreholes and better hole cleaning, mainly due to the availability of drilling dynamics.”

OTC SHOW DAILY | MAY 3, 2016 | TUESDAY 5 Subsea Tree System Optimizes Installation, Intervention Flexibility n Independent system components enable horizontal or vertical installation of subsea trees.

CONTRIBUTED BY ONESUBSEA, Vertical trees enable redundant completion settings, A SCHLUMBERGER COMPANY reducing the time a rig is used on each well. Taking advantage of this capability on large fields has the poten- ertical and horizontal subsea trees were devel- tial to substantially reduce operational costs. Plus, in Voped to complement different subsea well the event a vertical tree requires maintenance, it can be designs, while yielding the same result: the highest recovered without pulling the tubing hanger. For many degree of operational viability. The position tubing operators, eliminating the risk of this $40 million to $60 hangers occupy—installed below vertical trees and million operation makes vertical trees an obvious choice. above horizontal trees—is of key importance when However, vertical trees typically have higher equipment considering tree installation and completion times, and installation costs than their horizontal counterparts. functionality and intervention-related rig time. Not In contrast, since tubing hangers are positioned above surprisingly, both types of trees and their correspond- horizontal trees, affording greater hanger access, the ing tubing hanger positions offer operational advan- need to disconnect flowlines and move a horizontal tages and disadvantages. tree in the course of conducting a workover is elimi- The HyFleX subsea tree system is based on qualified, field-proven components. (Image courtesy of Schlumberger)

nated. However, if a horizontal tree has to be recovered, the tubing hanger must be pulled first, resulting in the aforemen- tioned punitive operational price tag. The varying aspects of the two tree types often have presented those trying to choose between them with a familiar dilemma: incur lower equipment and installation costs at the beginning of a project and deal with higher intervention and workover costs later, or pay higher equipment and installation costs at the onset of a project to ensure future costs for intervention and workover operations are lower.

Tree design offers operational flexibility OneSubsea, a Schlumberger company, offered an alternative to this dilemma at last year’s OTC by introducing the patented compact and cost-effective HyFleX subsea tree system. The system includes a tree, tubing head spool and tubing hanger—with a total weight of less than 40 tons—in a configuration that positions the tubing hanger in its tubing head spool, which is surrounded by the tree. Because the HyFleX subsea tree system’s tubing hanger is neither above nor below the tree, operators have the option of installing subsea trees horizontally or vertically. The tree’s modular design also gives it the inter- changeability necessary to accommodate wells being converted from production to injection applications. The HyFleX subsea tree system is as simple to install as a horizontal tree and uses the same existing tooling. In the event a tree needs to be pulled, there is no risk of incurring the high costs asso- ciated with pulling the tubing hanger. Like vertical trees, the new subsea tree system enables redundant completion settings to minimize rig time, and its modular design allows the tubing head spool and tree module to be lifted indi- vidually, simplifying tree installation by reducing the weight of single lifts. The HyFleX subsea tree system’s flexibility also limits intervention costs and com- plexities that can impede future recom- pletion efforts. To learn more about the HyFleX sub- sea tree system, visit OneSubsea at OTC booth 3527 for an operational demonstra- tion and daily technical presentations on this technology. n

6 TUESDAY | MAY 3, 2016 | OTC SHOW DAILY Projected Subsea Capex (%) Subsea Production by Region 2011-2020 Systems Spend to Grow 30% 23% 17% Africa n Infield’s 2020 subsea vision sees global demand rising. 27% Latin America

2011-2015 North America BY GEORGE GRIFFITHS, INFIELD SYSTEMS first deepwater development. In Guyana, meanwhile, Exxon 25% Mobil continues to look at the potential development of its Others 21% he outlook for the global subsea production market ultradeepwater Liza oil discovery in the Stabroek Block. 31% Tover the next five years remains optimistic despite 2016-2020 the current oil price environment. GoM focus 26% Infield System’s current market projections show world- North America, specifically the deepwater U.S. Gulf of wide subsea capex increasing by 38% in comparison to the Mexico (GoM), will continue to remain an important (Data courtesy of Infield Systems) last five years, with capex forecast to grow by a compound market for subsea equipment. Notable projects include annual growth rate of 7% between 2016 and 2020. Shell’s Stones and Appomattox fields, Anadarko’s The impact of low oil prices will undoubtedly cause Global subsea tree installation activity, another Hadrian North Field and the long-awaited Phase 2 of challenges going forward. However, despite these market important market indicator, could increase by 45% BP’s Mad Dog development. conditions, Infield believes that there could be growth in certain areas between the historic and fore- Canada will make up the rest of North American demand, within the subsea sector over the next five years as oper- cast periods. The three regions expected to drive with Husky Energy’s White Rose Extension Project a nota- ators work through their increasingly high-graded proj- global demand are Africa, Latin America and North ble project that received a final investment decision in 2015. ect inventories. n America, which together equate to 77% of Infield’s forecast global subsea capex and 62% of its forecast tree installations. Africa is expected to attract the larg- est share of global subsea capex demand, with African spending forecast to overtake Latin American spend in this period. Afri- can demand is largely generated in West Africa, where offshore developments in Angola, Nigeria and Ghana stand out.

Angola Angola contains 53% of the West African developments that require subsea pro- duction infrastructure, including Total’s ultradeepwater Kaombo project and BP’s ultradeepwater Block 18 and Block 31 expansion projects. North Africa’s demand is largely asso- ciated with developments offshore Egypt such as Eni’s giant Zohr Field and BP’s West Nile Delta Project. Toward the end of the forecast period it also is anticipated that there will be some ini- tial spend on subsea production equipment for the frontier East African region, where a number of large deepwater and ultradeepwa- ter field discoveries have been made in recent years. However, Infield does not believe that there will be actual subsea tree installations in the subregion before year-end 2020.

Latin America Latin America remains a key region, and it is expected to represent a 26% share of global subsea capex demand over the next five years. Demand as usual largely stems from projects offshore Brazil, which account for 91% of the regional subsea capex forecast. Brazil is expected to continue to be the largest subsea spend segment for any single country. This demand comes from the large numbers of recent discoveries in deep and ultradeep water, with 70% of Brazilian fields in which Infield anticipates subsea spend being in ultradeep water. Petrobras continues to be the key operator in Brazil’s deepwaters despite moves by the country’s senate to try to end its monopoly on presalt resources. As a result of this leading position, Infield believes that Petrobras will con- tinue to be a key player in driving global demand for subsea production systems. Notable projects include the Buzios multi- phase project in the Santos Basin, located in water depths of about 2,189 m (7,182 ft), and the Lapa Pilot project. Other countries within Latin America that are expected to produce demand for subsea production systems include Mexico and Guyana. In Mexico the national oil company Pemex has begun to develop its deepwater Lakach subsea tieback project, the country’s

OTC SHOW DAILY | MAY 3, 2016 | TUESDAY 7 Now’s the Time to Tackle Costs n How businesses can step up their performance in a period of sustained low oil prices.

BY HARRY BREKELMANS, ROYAL DUTCH SHELL PLC umentation, specifications and assurance processes Any scope changes to give a proj- that companies require, for example. This is on top of ect greater value—say, by increasing t might not seem like it at times, but there are upsides a multitude of industry “standards” for virtually every profitability—or greater resilience Ito the low oil price. For one thing, it is compelling piece of equipment. against risks must only be accepted everyone working in the oil and gas sector to make their Other industries such as aerospace and car manufac- with full transparency of their cost companies more efficient and competitive. turing have managed to put together more systematic and value trade-off. But above all, This needs to happen to address the enormous and rigorous ways of managing requirements along the the project must be kept competi- increase in costs over the past two decades. According supply chain. But the oil and gas industry has failed to tive with comparable projects. to the consultancy Independent Project Analysis, capital get to grips with the steady upward trend in project costs Harry Brekelmans The second area is efficient proj- cost per barrel has increased by a factor of four between and delivery times. ect execution. Increasing productiv- 1996 and 2014. This needs to change, and for that to happen there are ity by cutting out waste, minimizing This was caused, in part, by factors beyond the four main areas oil and gas companies should focus on. idle time and eliminating duplication of effort must all be control of the industry such as more expansive reg- First is the scoping of a project. The design and techni- ruthlessly enforced, though never at the expense of safety. ulations regarding the environment. But the oil and cal specifications of a project should, first and foremost, When it comes to efficient execution, the secret is gas industry also has played a big role in pushing up aim to assure a minimum acceptable performance. No the sum of many small steps, from better planning to costs. There’s been a vast expansion in the project doc- more, no less—at least to begin with. better use of technology tools. The third area of improvement is affordable technology. This must be deployed quickly to increase the value or reduce the cost of proj- ects and to enhance their operational reliabil- ity, productivity and profitability. The fourth theme is the transforma- tion of the supply chain. It underpins the success of the other three areas. Shell sees three ways to extract more value from the supply chain: improving demand manage- ment, simplifying specifications and nego- tiating lower prices. Shell has adopted all four areas of improvement in the past year on some of its big projects, and the company is seeing positive results. With the Appomattox deepwater proj- ect in the Gulf of Mexico, for example, Shell reduced the total estimated cost of the project by 20% in 15 months from the time the original concept was proposed and when the final investment decision was reached last year. Ultimately, the oil and gas industry will only be able to tackle costs effectively by changing the way it works. It’s all about transparency, simplicity, focus and collabo- ration. This will help ensure long-term sus- tainable improvement in the industry united by a strong collective will and purpose. The oil and gas industry’s efforts to improve its safety performance are evi- dence that such a unity of purpose can be achieved. According to the International Association of Oil and Gas Producers, the fatality rate in the industry dropped eight- fold between 1996 and 2014. But effective collaboration doesn’t happen overnight. Partnerships that stand the test of time have a common sense of purpose that’s aligned with the long-term business interests of all the companies involved. In short, all parties must strive for what’s best for a project. Such efforts are not only important given today’s low oil price. They are essen- tial to the sustainable future of the oil and gas industry. n

Harry Brekelmans is projects and technol- ogy director for Royal Dutch Shell Plc.

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8 TUESDAY | MAY 3, 2016 | OTC SHOW DAILY

Spotlight Award Winners Recognized for Innovations n The Spotlight on New Technology awards acknowledge innovations from companies of all sizes.

BY HART ENERGY STAFF independently of each other, it provides functional flexi- bility and the ability to batch set wells, risk mitigation, and he 2016 Spotlight on New Technology Awards given significant cost savings in field development and over the life Tby OTC recognize the latest and most significant of the field. For more information about the HyFleX Subsea advances in the offshore industry. Seven of this year's 13 Tree System, visit OneSubsea, a Schlumberger company, at winners appeared in Monday's show daily. They included booth 3527. AFGlobal Corp. for its Riser Gas Handling system and Baker Hughes for its Integrity eXplorer cement evalu- ation service. Barge Master, the small business winner, was recognized for its BM-T40, and FMC Technologies received an award for its InLine ElectroCoalescer. GE Oil & Gas earned an award for its SeaPrime I Subsea MUX BOP Control System, and Halliburton received an award The DOPP tablet-based four-stage program evaluates for its BaraLogix Density and Rheology Unit. Lankhorst each rig site’s ability to control, implement and miti- Ropes also was recognized for its Soft Rope System. gate dropped objects. (Photo courtesy of OES Oilfield Services Group) Oceaneering has received an award for the Remote SkoFlo's subsea BPR can be delivered and retrieved thou- Piloting and Automated Control Technology OneSubsea, a Schlum- sands of feet below the surface of the ocean to a site via (RPACT). The technology revolutionizes operational berger company, has an ROV. (Image courtesy of SkoFlo Industries Inc.) efficiency. Subject matter experts or ROV pilots can received an award for the establish ROV control through a satellite or wireless net- AquaWatcher Water Anal- SkoFlo Industries Inc. has received an award for the work link to support operations at a remote work site. ysis Sensor. The sensor Subsea Back Pressure Regulators (BPRs). The valves RPACT diminishes operational and environmental risk uniquely detects minuscule are anti-siphoning, self-regulating devices that cre- while reducing potential damage to tooling, manipula- quantities of water in multi- ate backpressure in chemical injection lines to prevent tors and subsea assets. For more information about the phase and wet gas flows, plus uncontrolled delivery of chemicals into production RPACT, visit Oceaneering at booth 5833. determines the salinity of that wells. BPRs prevent chemicals from draining into injec- water. The patent-pending tion points when a chemical hydrostatic head exceeds technology also can measure injection pressure and production wells become sub-am- the concentration of chem- bient. For more information about the BPRs, visit SkoFlo icals in water to determine at booth 3101. accurate dosage requirements, thus enabling significant risk The AquaWatcher can reduction and reduced costs. measure the conductiv- For more information about ity of produced water the AquaWatcher Water Anal- at any gas volume ysis Sensor, visit OneSubsea, fraction and most water a Schlumberger company, at cuts. (Photo courtesy booth 3527. The RPACT system uses the latest control system pro- of OneSubsea, a gramming and network acceleration technologies to Schlumberger The EOFL is designed with a modular power converter, provide real-time access to operate an ROV, either company) which allows different power inputs to be used without from onshore or from a vessel nearby. (Image cour- redesign. (Photo courtesy of Teledyne Oil & Gas) tesy of Oceaneering) OneSubsea, a Schlum- berger company, has Teledyne Oil & Gas has received an award for the OES Oilfield Services Group has received an award received an award for Electrical Optical Flying Lead (EOFL). The lead for DOPP, which is a technologically innovative tab- the HyFleX Subsea Tree features a hybrid wet mate connector and an elec- let-based four-stage program that evaluates each rig System. The system pro- The HyFleX Subsea Tree trical wet mate connector on either end of a jumper site’s ability to control, implement and mitigate dropped vides benefits of both System is designed such assembly, with a qualified electrical/optical converter objects. Using this information, a bespoke awareness vertical and horizon- that the tubing hanger and integrated into the pressure balanced, oil-filled hose. package is created and delivered to all personnel on the tal conventional trees. tree are completely indepen- Including the EOFL into a data transmission network rig in the form of classroom and onsite hands-on train- Designed so the tubing dent of each other. (Photo can allow greater field architecture flexibility at a lower ing. For more information about DOPP, visit OES Oil- hanger and tree can be courtesy of OneSubsea, a cost. For more information about EOFL, visit Teledyne field Services Group at booth 4227. installed and recovered Schlumberger company) at booth 5633. n

Trading in a Minivan for a Ferrari n Industry expert shares new optimized method for well decommissioning at Monday’s technical panel.

BY JENNIFER PRESLEY sioning and Well Abandonment: decommission and remove wells and structures no longer Case Studies and the Technologies useful for oil and gas production as soon as possible, but no t the beginning of 2011 there were more than Involved” technical panel on Mon- later than five years after cessation of production, he said. A4,500 idle wells and 783 idle structures in U.S. fed- day morning at OTC 2016. In his presentation, Siems compared the old, multistep eral waters of the Outer Continental Shelf. These aging “In a four-year period, there were way of decommissioning a structure and well with a new assets pose an environmental risk, prompting operators 183 structures and 1,082 wells top- and better optimized process that employs the newest tech- to feel a renewed pressure to decommission idle infra- pled by hurricanes,” he said. nologies to get more work done safely and at a lower cost. structure sooner rather than later, according Gary Siems The increased number of top- He noted that the eleven steps typical to the traditional of Montco Oilfield Contractors in his technical paper Gary Siems pled assets led the U.S. Dept. of the process are performed sequentially, with most requiring “Decommissioning Process Optimization Methodology,” Interior’s Bureau of Ocean Energy separate and specialized workers and equipment. OTC-26867-MS. Siems presented his paper along with Management Regulation and Enforcement to issue guide- six other presenters as part of Monday’s “Decommis- lines that specified that lease operators had to permanently See MINIVAN continued on page 21

10 TUESDAY | MAY 3, 2016 | OTC SHOW DAILY Removable Packer Stays Removable, Even in HP/HT Conditions n The removable packer’s chassis has been engineered to separate from the casing wall when released. The BASTILLE HP/HT removable production packer will be featured at OTC 2016 at booth 3731. (Image courtesy CONTRIBUTED BY BAKER HUGHES fishing time at a cost of $1-plus million in deepwater of Baker Hughes) wells, in addition to increased HSE exposure. emovable production packers can eliminate non- Simply upgrading a conventional removable packer mer. As pulling continues, the upward pressure shears Rproductive time (NPT), costs and risks during with HP/HT materials is not sufficient to ensure packer pins that let specially designed segments break free. well intervention operations. But they can become removal in HP/HT conditions. The BASTILLE chassis The packer wall flexes inward, and the upper slips permanently set when exposed to high pressures and has been engineered specifically to separate from the pull free from the casing wall, reducing friction and temperatures. The Baker Hughes BASTILLE HP/HT casing wall when released, even after prolonged expo- letting the packer break free from the casing. On its removable production packer creates a reliable seal sure to temperatures up to 204 C (400 F) and differential way uphole shoulders on the mandrel catch the outer between the casing and tubing while the well is flowing pressures as high as 17,500 psi (1,207 bar), an industry packer wall, and the entire assembly is retrieved with and just as reliably disengages when well intervention first at these ratings. the production tubing. The BASTILLE packer extends is needed. When intervention is needed, a mechanical pipe the efficiency of removable production packers to HP/ Previously, when downhole temperatures and pres- cutter is run in hole and aligned below the bottom HT wells. Baker Hughes also offers the SCION remov- sures rise above 177 C (350 F) and 12,500 psi (862 bar), slips. It makes a cut to sever the inner mandrel while able production packer for use in wells with standard even HP/HT-rated elastomers and slips could perma- the outer packer wall stays intact. When the produc- (non-HP/HT) conditions. nently set inside the casing wall. When this occurred, tion tubing is pulled uphole the mandrel follows. This The BASTILLE removable packer will be featured at the result was at least one day of unplanned milling and action releases the bottom slips and relaxes the elasto- the Baker Hughes booth 3731 at OTC 2016. n

New Recommended Practice on P&A of Offshore Wells n The recommended practice is based on case studies performed by DNV GL in projects dating back to 2011.

The framework of DNV GL’s new recommended practice facilitates individualized, fit-for- CONTRIBUTED BY DNV GL approach to the regulations, purpose well abandonment designs. (Image courtesy of DNV GL) which represents a conser- lugging and abandonment (P&A) of offshore wells vative interpretation of past experience and outdated initial set of risk acceptance criteria and cross-checked Prepresents the highest cost within field decommis- technologies. Practice also differs from country to coun- these using case studies. The criteria and methodology sioning to operating companies and national authorities. try. In the RP, DNV GL uses well-known and accepted have been further strengthened through dialogs with DNV GL has issued a new globally applicable recom- risk-based approach methodology in which both regulators and industry players. mended practice (RP) on risk-based abandonment of environmental and safety risk aspects are key factors. DNV GL issued a technical paper and presentation on offshore wells. The framework outlined in the RP pro- Through the development of the RP, DNV GL worked the RP held at OTC 2016. For more information about vides the possibility for individualized, fit-for-purpose with international oil and gas operators to establish an the RP, visit DNV GL at booth 5155. n well abandonment designs, a contrast to the prescriptive methodology available in the industry today. Well abandonment is driven by economic decisions, when production of an oil or gas reservoir ceases or is no longer profitable. Authorities require that well operators suf- ficiently perform safe and environmentally friendly operations to establish permanent barrier(s) to prevent migration of hydro- carbons to the surface. Traditional P&A methods are time consuming, costly and have remained unchanged despite techno- logical advances in the industry. The RP (DNV GL-RP-E103) is based on case studies performed by DNV GL in projects dating back to 2011. A thorough process is defined where the key stages in the risk-based methodology are assessing the well barrier failure modes, well flow potential, valued ecosystem and safety components, dispersion modeling and impact analysis. These steps allow a con- sistent method to be applied when assess- ing risks of the offshore well abandonment designs. The RP methodology provides assurance that selected well abandon- ment designs are robust, environmentally friendly and economically advantageous. The main obstruction to change in this sector has been today’s prescriptive

OTC SHOW DAILY | MAY 3, 2016 | TUESDAY 11 Many Possibilities with Industry’s First Microfluidic Technology Application n A fully automated technique for measuring SARA in crude oil samples provides repeatable and reproducible measurements while decreasing both turnaround time and the use of solvents.

CONTRIBUTED BY SCHLUMBERGER Instead of using gravimetric techniques commonly used in conventional methods, the new technology raditionally, methods for acquiring asphaltenes relies on spectrographic and refractive index measure- Tweight percent in oil samples rely on conventional ments for quantifying asphaltenes and SAR contents. chemistry techniques such as precipitation, filtration, For the asphaltenes content, an oil sample is titrated collection and gravimetric measurements. These meth- with a nonpolar solvent n-heptane to force precipita- ods usually require a significant volume of solvents and a tion and then is filtered through a proprietary micro- sizeable glass apparatus. The traditional approach suffers fluidic chip. The visible spectra of the oil prior and after from a number of performance shortcomings—specifi- precipitation are measured through a spectrometer; cally, long analysis times, poor repeatability of measure- and the difference in optical absorbance between the ments and operator dependency. In addition, interlab asphaltene-saturated oil and de-asphalted oil correlates comparison of results often is hampered by the tradi- with gravimetrically measured asphaltene content of the tional method’s poor reproducibility. sample. After the asphaltenes fraction is measured and These challenges have prompted Schlumberger reser- separated, the oil sample is displaced into a miniatur- The microfluidic chip forms an integral part of the Maze voir fluids experts to develop a fully automated micro- ized chromatographic column to analyze SAR fractions microfluidic analysis service, a fully automated process fluidic technique for measuring saturates, aromatics, using refractometer and spectrometer technologies. for testing oil samples for SARA. (Image courtesy of resins and asphaltenes (SARA) in crude oil samples. Using the microfluidic technique, a complete mea- Schlumberger) The new service from Schlumberger, known as Maze surement takes only 4 hours, which is a considerable microfluidic SARA analysis, provides repeatable and improvement over conventional chemistry techniques and is accepted by ASTM International as a new D7966 reproducible measurements while decreasing both that require a turnaround time of several days. Fur- standard for asphaltenes content measurement. More turnaround time and the use of solvents by more than thermore, conventional chemistry measurements are than 300 oil samples have been successfully analyzed 85%. Results from the new analysis have industrywide operator dependent. For the optical technique, the using the Maze microfluidic SARA analysis in research, applications, including understanding of oil’s physical repeatability of measurement exceeds ± 0.3 wt%. The engineering and field tests. In addition, more than 1,900 and refining properties, assessing crude value, perform- microfluidic measurements require only 1 ml of sam- runs have been completed using the microfluidics chip ing flow assurance studies, validating samples quality ple and 0.4 l of solvent, which significantly reduces the for asphaltenes analysis only. prior to pressure/volume/temperature analysis, and HSE exposure. For more information about the Maze microfluidic supporting gradient and compartmentalization as well The new technique is the first commercial application SARA analysis service, visit Schlumberger at OTC as geochemical studies. of microfluidic technology in the oil and gas industry booth 4541. n

Lowering Overall Costs, Operational Risk during Selective Perforating n New system targets three main areas to improve operational efficiency and reduce operating cost: safety, reliability, and inventory and cost control.

CONTRIBUTED BY DYNAENERGETICS ducted in less time and in parallel with other operations. The design eliminates the need to hold the gun system n an operating environment governed by ever greater at shallow subsurface depth during simultaneous oper- Ilevels of efficiency, the industry is pushing to continu- ations. Both factors reduce wait times at the wellsite. ously lower the total cost of operations while simultane- The DynaStage system operates more efficiently than ously enhancing safety. Reliability traditional perforating guns and allows other wellsite op- DynaStage is an entirely new concept for perforating The design of the electronic system and simplified erations to run in parallel during perforating. (Photo cour- and incorporates groundbreaking addressable and selec- mechanical field assembly virtually eliminates misruns. tesy of DynaEnergetics) tive technology and an improved mechanical design DynaStage targets a 99.9% operating efficiency. One that completely eliminates potential human error. The major design improvement covers the detonator to sys- of human error typical in the manual redress, cleaning, system operates more efficiently than traditional per- tem assembly and wiring. wiring and assembly of conventional perforating guns. forating guns and, with its additional safety features, A traditional detonator is assembled into a sub requir- This new industry model reduces the wireline service allows other wellsite operations to run in parallel during ing wiring and ballistic connections and a port plug with provider’s inventory and overhead. perforating. This results in improvements in perforation O-ring seals. Wiring connection issues and leaking O-rings More than 7,500 guns have been run since the quality and performance reliability, fewer misruns and are among the most common causes of perforating gun introduction of the 3⅛-in. DynaStage system during lower inventory. The DynaStage system has successfully misruns. With DynaStage the detonator wires have been the summer of 2015. A 2¾-in. system recently was completed operations in multiple basins. replaced with an injection-molded connector, eliminating released to support the trend toward smaller gun sizes, The system targets three main areas to improve crimped wire connections and the associated risks of wir- and a 3⅜-in. system currently is being finalized. operational efficiency and reduce operating cost: ing damage and poor electrical connections. The detonator Each stage run with the DynaStage system cut an aver- safety, reliability, and inventory and cost control. also was relocated to the gun body, which allows the use of age of 32 minutes of completion time. Improved downhole a much shorter, disposable perforating gun connector sub reliability also was achieved, with an average decrease in Safety and eliminates the port plug. Field assembly is simplified nonproductive time of 2 hours per 100 runs. A significant A simple, intrinsically safe design eliminates the risk of to inserting the plug-and-go detonator and threading the part of the improved reliability was a reduced need for inadvertent detonation from any stray, DC or voltage. The guns together (See image). onsite user interactions that often lead to electrical issues addressable and radio-frequency-safe firing system is built and misruns in conventional wired perforating systems. on a low-voltage, digital communication platform proven to Inventory, cost control The use of DynaStage resulted in fewer days on successfully initiate on command during more than 300,000 The DynaStage gun modules are shipped to the wireline location and operator cost savings as high as six fig- perforating operations without a single safety incident. customer as specified and fully assembled, except for the ures. The production success rate has been one mis- This technology enables verification during all phases detonator. All preshipping operations are performed in run per 420 runs for a perforating efficiency of 99.41%. of the operation. All electrical connections and com- the DynaEnergetics gun assembly line, which has been DynaEnergetics continues to refine the system com- ponent functions can be checked and full functionality optimized for high-volume assembly, automated quality ponents, assembly process and operating procedures confirmed during assembly and pumpdown operations. control inspection and electrical verification of the final with the ultimate objective of attaining the 99.9% plus Surface explosive handling and arming can be con- product. The production line process mitigates the risk efficiency rate and zero safety incidents. n

12 TUESDAY | MAY 3, 2016 | OTC SHOW DAILY Industry News

Statoil’s Gullfaks A is shown. (Photo by Øyvind Hagen, Siemens to Showcase Oil, courtesy of Statoil) Gas Portfolio at OTC Siemens, along with newly acquired Dresser-Rand busi- wellhead hydraulic power units (HPUs) for Statoil’s ness, will showcase its combined capabilities for the Gullfaks oil and gas field in the Norwegian sector of the oil and gas sector during OTC. The Siemens portfolio North Sea, which is undergoing an extensive topside includes motor and drive systems, automation technology upgrade program. See INDUSTRY NEWS continued on page 16 and advanced industrial software designed to improve the safety and security of today’s oil and gas operations while reducing engi- neering, operating and capital costs. Siemens’ main booth will feature sub- ject matter experts from a wide range of industry disciplines, available to explain the company’s extensive technology portfolio. The booth also will include an X-pert Cen- ter, where speakers are set to present more than 20 technical presentations from Mon- day to Thursday in several major categories including offshore solutions, digitalization, HSSE solutions and midstream solutions. The X-pert Center will include presenta- tions from the company’s subsea portfolio, including a virtual tour of the subsea power grid, which Siemens is actively developing. This technology holds the potential to make previously unrecoverable resources recov- erable. The company also will highlight smarter pump stations for pipelines and the power of its remote diagnostics portfolio in improving turbine performance. Dresser-Rand will join Siemens in booth 4424. Siemens also will have an outside display at booth 13321. Siemens will present a paper related to its subsea offering titled “Technology for Extension of Lifetime” on Wednesday, May 4.

BMT Delivers CFD Study for Oil Major BMT Fluid Mechanics (BMT), a subsidiary of BMT Group Ltd., has completed a com- prehensive computational fluid dynamics (CFD) study for an oil major operating offshore Nigeria. BMT’s scope of work included an assess- ment of the current loading to which the FPSO hull is subjected to, which has enabled the oil major to ensure its mooring systems are fit for purpose. Through the creation of a 3-D CAD model and representation of the FPSO unit below the water line, the team of spe- cialists at BMT were able to run a com- prehensive experimental and numerical study of the maneuvering characteristics. This looked at different parameters of cur- rent conditions to help build up a picture of how the forces and motions impact the vessel and how it performs.

Proserv Seals Contract with Statoil Proserv has been awarded a multimil- lion-pound contract with Statoil for the provision of production control equip- ment in Norway. Proserv will supply five

OTC SHOW DAILY | MAY 3, 2016 | TUESDAY 13 Universities Provide Additional Resources for Oil Industry Research n From drones in a wave prediction system to coatings to improve drillbit efficiency to recalibrating drilling data from all the major ocean basins, participants in OTC’s University R&D Showcase tackle leading-edge projects.

BY SCOTT WEEDEN

he 2016 OTC University R&D Showcase features Tprojects from universities in the U.S., Germany, Nigeria and Japan. These universities include University of Houston, Rice University, Georgia Tech University, Penn State University, Texas A&M University, University of Utah and University of Southern Mississippi in the U.S.; Hamburg University of Technology in Germany; University of Ibadan and Covenant University in Nige- ria; and University of Tokyo in Japan. Descriptions of projects from three of the universities follow.

Unifying access to 60 years of ocean drilling research When it comes to offshore technology, the land-locked Energy & Geoscience Institute (EGI) at the University of Utah was well ahead of its time. “You could say we were out of sync with time. Most of the Paleozoic and Creta- The Energy & Geoscience Institute at the University of Utah has completed more than 800 projects in studies covering ceous oceans were in Utah. If you go back in deep time, more than 100 countries. They are available to EGI members. (Image courtesy of the University of Utah) we had a lot of beachfront property here,” laughed Ray Levey, director, EGI at the University of Utah. development. The Univer- The university will be presenting its EGI Oceans and sity of Tokyo has a labora- Integrated Continent-Ocean Research Data System tory endowed by 10 Japanese (iCORDS) projects at OTC. The Oceans research pro- companies. The laboratory gram will be a decade long and will compile academic acts as a platform for R&D and government data and cores that have never been for the university and indus- evaluated before with petroleum systems in mind. try, said Ryota Wada, associ- The data are in three major repositories worldwide. ate professor at the university. “We’re analyzing that data and recalibrating the age and Other researchers on the source rocks of the major ocean basins of the world,” he project are Prof. Ken Takagi, continued. “The governments that funded the original and Dr. Marcio Yamamoto research never funded the accurate collation and inte- and Dr. Ramnarayan Mondal, gration of that data. It will be the first time there will be project researchers. The labo- a single, unified platform to evaluate that information.” ratory will be presenting post- The primary sources of the data will be the Deep Sea ers and movies on its research Drilling Project, Ocean Drilling Program and International projects, which include a Ocean Discovery Program. “The purpose of the Oceans wave-prediction system from program is to go back over the government and academic multipoint drone measure- research that has been collected by drilling in all the major ments, a floating logistics oceans of the world for over 60 years,” Levey said. terminal and mooring integ- This schematic shows the wave prediction system proposed by the University of Tokyo The University of Utah researchers also will be discuss- rity management. laboratory. (Image courtesy of the University of Tokyo) ing the iCORDS platform, which is a subscription ser- For the wave-prediction vice. “We estimate $30 billion has been spent collecting system, “We have developed a new concept and algo- interrogation of the ocean surface; acoustics coupled research data, cores and information. Initially supported rithm where we can predict the sea-surface elevation with marine biology; materials and additive manufac- by 20 international oil companies (IOCs), iCORDS now at a vessel point 30 seconds in advance by combining turing; improving corrosion resistance and reducing has 10 IOCs that are subscribers,” he continued. sea-surface elevation data gathered from drones,” Wada costs of materials; fluid mechanics; and AUVs. This is the first time that the EGI will have a major explained. “We also are developing drones with robust Being at OTC “gives us a chance to show our 75 years presence at OTC. “This is the first opportunity to have control under strong wind conditions and a safe-landing of experience in doing marine-related research in pro- the entire industry see what we’ve done over the last four system on floating vessels with motion.” pulsion systems, materials and design. We’ve been going decades,” Levey said. The laboratory is developing the concept of a floating to OTC for about three years. We’re trying to show peo- logistics terminal for locations where a new onshore port ple we have a lot of capabilities that we developed work- Wave predictions, floating logistics is not economically feasible. The floating logistics terminal ing with our [U.S.] Navy sponsors that could be directly terminal would be deployed near a coast where the wave climate is applicable to the oil and gas industry,” said Tim Eden, Although Japan has no nearby oil and gas fields, many moderate. The technical challenge is to design a floating head of the Materials Processing Division at the ARL and companies have competitive technologies for offshore logistics terminal that could be used without breakwater associate professor of engineering, science and mechan- and with a small mooring footprint, he continued. ics at Penn State. For the mooring integrity management, the labora- There are two things that the ARL wants to accomplish University R&D tory is considering the high nonlinearity of mooring line at OTC. The first is to learn more about what the industry behavior where extreme load estimation is a complicated needs. The other is to be able to show the industry that Showcase Video issue. “Mooring line tension from offshore wind-power the ARL has the technologies that can be applied to solve generation systems and floating liquefied natural gas ves- problems, he continued. Contest Winner sels is being investigated,” he said. For example, the laboratory has two different HP test And the winner is ... Texas A&M University! Being at OTC “is a great opportunity to introduce our facilities that can simulate up to 20,000 psi of ocean activity in this field. Japan seeks to develop its own off- depths, he added. This is the second consecutive year that TAMU shore resources, such as methane hydrates, seafloor poly- “In the coatings area we’ve looked at coatings for drill- has taken the title. Its video received 2,000 metallic sulfide, offshore renewable energy and so on. We bits to make the drilling process better and have the bits views with more than 300 likes. The project is would like to interact with participating companies and last longer. We’ve also made pump components last lon- titled “Stochastic Geomechanics to Improve Risk universities for feedback and collaboration,” Wada added. ger when pumping the caustic fluids or a mixture of flu- Assessment and Engineering Design Practice.” ids and solids from an oil well,” Eden explained. Drillbit coatings, additive manufacturing For additive manufacturing Penn State has a metals The University R&D Showcase is located on The Applied Research Laboratory (ARL) at Penn State additive-manufacturing demonstration facility. “We’re level 2, in the Lobby area of the NRG Center University has a variety of capabilities that could be of going to talk about how to use additive manufacturing to near the 600s. benefit to the offshore industry, including high-pressure build complex components that may require several parts (HP), deep-ocean simulation; sonar that can be used for or reduce the number of parts,” Eden said. n

14 TUESDAY | MAY 3, 2016 | OTC SHOW DAILY Data-intensive Operations Are Here to Stay n Several factors are facilitating the adoption of data-centric applications.

BY CHRIS SERRATELLA AND DOMENIC CARLUCCI, ABS be used to manage and optimize both structural and mechanical integrity. ncreasing regulatory demands, stakeholder oversight The newly revised ABS Guide for Surveys Based on Iand the need for greater operational efficiencies have Machinery Reliability and Maintenance Techniques and led offshore asset owners, designers and shipyards to look the ABS Guidance Notes on Equipment Condition Mon- for new approaches to manage performance efficiency, itoring Techniques were developed so post-construction asset health and longevity. The heart of the solution lies survey plans can take advantage of this new data-inten- in improving the ability to collect, validate, analyze and sive world to allow surveys that emphasize real-time per- ultimately leverage the data being produced by smarter, formance and focus less on calendar-based schedules. more data-intensive onboard systems. Equipment man- As new concepts are introduced, it becomes increas- ufacturers and vendors are quickly adopting these tools ingly important to collect and analyze data from a grow- As new concepts are introduced, it becomes increasingly and techniques, and more and more owners are coming ing number of sources, and it is essential for safety to keep important to collect and analyze data from a growing to rely on them to drive performance efficiency, improve pace. As a class society, ABS will continue to work with number of sources. (Image courtesy of Bruce Rolff / uptime and gain deeper insight into improving their bot- industry in the search for solutions to its challenges. n 123RF.com) tom line. Adoption of data-centric applications has been driven by a recent rapid decrease in the cost of advanced sensors, the expan- sion of wide-area communication net- works, the availability of high data storage capacity and increasing computer process- ing power. In today’s offshore environment, smart technology gathers real-time data from a broad range of systems, from the well to the export line. These applications and their reliance on data management and analytics have come into the limelight as a result of the buzz surrounding the big data phenomenon. In short, everything we can physically touch in our business will be virtualized and accessible in a smart data or Internet of Things environment. Opportunities for leveraging data exist in the full life cycle of an asset and can be aligned to support regulatory and classification requirements. Monitoring structural and machinery condition and performance is vital to effective asset man- agement. Doing it properly involves iden- tifying key data sources, developing data collection protocols, drawing conclusions from the data through proven analytics tools and transitioning information into actionable intelligence. Integrating data collection with the asset’s control and monitoring systems ultimately can reduce the burden on the crew and simplify an often complex puzzle of qualifying and analyzing condition and performance data into a standardized process for plan- ning and decision-making related to asset operations. The information gathered from these processes can create a knowl- edge loop that, when implemented into an enterprise asset management strategy, can improve operational execution and ultimately influence the next generation of offshore asset designs. Recognizing that such opportunities also pose risks, ABS has stepped up to provide guidance for the industry. The role of clas- sification societies has evolved to become data-centric in its verification activities during construction and commissioning, relying on a new range of expertise. Asset integrity verification will draw on class to verify robustness and reliability of sensors and control systems that capture data, the software that collects and processes it, and the “smart analytics boxes” used to draw conclusions from that these systems. Collecting and analyzing more data can add value. A “smarter asset” delivers the ability to develop dynamic and real-time risk profiles based on the type of opera- tion being performed, its location and its current health. This information can

OTC SHOW DAILY | MAY 3, 2016 | TUESDAY 15 Pushing the Boundaries of Pipeline Capabilities n Pipelines face challenges in deepwater environments.

Pipelines operating in frigid climates such as off the of pipelines. They are giving operators better visibility of BY VIBHA ZAMAN, LLOYD'S REGISTER coasts of Nova Scotia, Alaska and the Arctic face extreme the operating health of subsea pumps and the fluids pro- storm conditions that can affect their structural integrity duced in subsea processing facilities as well as helping to he drive to push the boundaries of capabilities and floating icebergs, which can result in mechanical monitor the condition of the pipeline, including the use Twithin the offshore oil and gas industry come with damage, particularly to their risers. of leak-detection systems. challenges on two fronts, those of internal origin and There are ways to mitigate these potential risks: Pipe- Pipelines, too, are undergoing a technological evolu- those derived from external sources. lines can be buried beneath the seabed or covered with tion with composite pipes rather than reinforced ther- Internally, more and more pipelines are being required protective concrete “mattresses,” and rigid steel risers or moplastic pipes. The reinforcing fibers are embedded to operate at temperatures that reach or exceed the limits catenaries can be replaced with flexible risers that are in the composite matrix, resulting in a solid pipe wall, of traditional materials of construction. Depending on designed to disconnect from FPSO units when floating whereas in a reinforced thermoplastic pipe the fiber the service, pipelines must be able to withstand increas- icebergs approach or when extreme storm events threaten. reinforcement “rovings” (tapes) are wound around the ingly high operating temperatures or the extreme cold However, pipelines situated in deepwater or remote liner pipe. This advance produces a collapse-resistant conditions associated with arctic exploration. areas both face challenges associated with a lack of sup- pipe that can operate at a wider range of temperatures. It Externally, the push is on to operate pipelines in deeper porting infrastructure. Each engineering project will have is also less brittle and therefore more flexible and is less waters and increasingly hostile environments with bigger its own specific challenges which, to manage costs and susceptible to the problems associated with sour service waves and stronger, more complex currents; these activi- maximize environmental performance, are best addressed operations and corrosion. ties often are taking place in more isolated locations with in a holistic manner throughout the design, installation, Another exciting emerging technology is the use dwindling amounts of supporting infrastructure while operations, life-extension and decommissioning stages. of “additive manufacturing” for fabrication of sub- facing the possibility of significant environmental hazards sea equipment. Since deepwater processing facilities such as icebergs or unsurvivable storm conditions. New technologies require thick-walled vessels to contain pressure, equip- Some new technologies that have been implemented in ment such as gravity-based separators have become Challenges, design considerations deepwater fields include subsea boosting and processing. very large and difficult to transport when fabricated Deepwater pipelines are exposed to high external pres- These technologies have allowed many reservoirs to be more using solid steel plate. These advancements have been sures that require thicker pipe to withstand the subsea economically developed while reducing the risks of damage enabled by significant innovation in materials (e.g., pressures and the stresses they are subjected to during to assets from adverse weather conditions on the surface. metal and thermoplastic powders, wire, resins and installation. However, the added weight of the thicker Subsea boosting provides the pressure needed for the composite materials) and binding sources (e.g., laser diameter pipe together with the length of the catenary risers to transfer production fluids from the reservoir to melting, electron beam melting, photopolymerization when the pipe is laid in deepwater environments has led the surface, thereby increasing the recovery volumes from and chemical reaction). to challenges associated with the tension capacity of pipe- mature wells and making viable the production of fields One of the related short-term opportunities for laying vessels and their ability to withstand the bending that might have been previously considered marginal. the subsea industry appears to lie in the ability to stresses that might result in collapse or buckling. To support asset-integrity management programs, the rapidly generate or repair often-replaced or obsolete The tension capacity of current vessels significantly industry is exploring the use of AUVs, which are docked components from aging assets. But just as additive limits how deep pipelines can be laid; as such, water and recharged subsurface to perform routine visual manufacturing offers an opportunity to customize depths are currently capped at about 3,048 m (10,000 inspections, freespan pipe monitoring and cathodic pro- materials, these variations from solid materials can ft) for traditional steel pipelines. To go beyond 3,048 m, tection surveys that detect erosion. In some cases, AUVs compromise the structural integrity of an asset in new installation techniques, increased tension capacities could replace current ROVs and their support vessels, ways that would be new to the industry. Clearly, a from lay barges or alternative materials will be required. potentially reducing cost and improving integrity-man- deeper understanding of the benefits and barriers to Once installed, deepwater and cold-climate pipeline agement practices and maintenance activities. adoption is required. operators face challenges of flow assurance due to the Advancements in data analytics also are playing an Meet the company’s experts at OTC 2016 at booth formation of hydrates or plugging from wax deposition. increasingly important role in the integrity management 5171 or visit lr.org/energy for more information. n

Industry News (continued from page 13)

The design, manufacture and supply of the works- neering and project teams in Stavanger, Norway. Work tems and all five are expected to be delivered to Statoil cope will be carried out by Proserv’s specialist engi- already has begun on the manufacturing of these sys- by 2017. The agreement comes just months after Proserv was awarded a contract to provide topside control equipment at one of the largest field discoveries on the Norwegian Continental Shelf. Proserv is supplying Aibel, on behalf of Statoil, with a HPU and three chemical injection pan- els for the Johan Sverdrup development’s drilling platform.

Seagull Oil & Gas Offers Safety Training Seagull Oil & Gas has released a cost-effi- cient and comprehensive e-learning train- ing package in the industry for offshore personnel working in explosive atmo- spheres. Building on International Elec- trotechnical Commission standards, the new series covers basic understanding, installation in Ex-areas, Exi installation, cable entry, IP degree, and inspection and maintenance. The content of the courses includes e-learning modules that nor- mally require two days of classroom study covering theory. ExTek, the only certified CompEx center in Norway, will offer the self-study course components so that an entire five-day 01-04 CompEx course can be completed with only three days spent in the classroom. n

16 TUESDAY | MAY 3, 2016 | OTC SHOW DAILY Industry Improves Monitoring of Offshore Rig Corrosion, Onshore Pipeline Leaks n Advances in monitoring systems allow inspection of rigs and FPSO units while offshore and detection of leaks in onshore pipelines. Enhancements in materials have led to fully dissolvable frack plugs. These topics and more will be covered in Tuesday’s “Materials Advancement” technical session.

BY SCOTT WEEDEN

orrosion and leaks can lead to cat- Castrophic failures in both offshore vessels and onshore pipelines at consid- erable cost. The “Materials Advancement” technical session on Tuesday morning at OTC tackles those problems as well as the development and manufacture of dissolv- able frack plugs. Three of the six papers scheduled to be presented at the 9:30 a.m. session tackle the latest advances in these topics. This is a preview of those three papers.

Hull inspection techniques, strategy project Hull integrity is critical for FPSO vessels and mobile offshore drilling units. The Hull Inspection Techniques and Strat- egy joint industry project focused on the methodology for conducting inspections while still at sea. The OTC-26953-MS paper describes how close cooperation between regulators, operators, class societies and service pro- viders resulted in underwater hull inspect in lieu of drydocking (UWILD). The key features of the diverless UWILD strategy includes conducting inspections from inside the hull and using advanced closed-circuit television methods to inspect isolation valves as well as inspecting hull appendages using mini ROVs. This new “continuous survey” method aligned underwater inspections with planned tank entry to provide better information, reduce and spread costs and provide planned scopes that helped avoid budget overruns. These new methods deliver enhanced safety, reduced cost and lower budget risk. Two FPSO units and four ultradeep- water drillships have been successfully inspected. About 12 vessels are scheduled for inspection in 2016.

Onshore leak monitoring A pipeline leak and impact detection sys- tem, PipeLIDS, uses acoustic technology to listen inside onshore pipelines. Hydro- phone sensors are installed typically every 10 km (6 miles) along the pipeline. Cyber- netix, a Technip company, developed the system limit false alarms and improve the level of confidence in the results. Any leak is a noise source. The noise propagates in the fluid in the pipeline over long distances. With an appropriate data processing technique, the noise related by

See MATERIALS continued on page 20

OTC SHOW DAILY | MAY 3, 2016 | TUESDAY 17 Metering Pumps Provide Versatility, Flexibility to Offshore Operators n Metering pumps offer modular design options including motor configurations, multiplexing and liquid-end variations that can reach required depths and withstand high pressures.

CONTRIBUTED BY MILTON ROY rations to maximize performance while minimizing its operating footprint. n most gas condensate wells, natural gas hydrates form Iwhen light hydrocarbons and water mix under high Case study pressure and low temperature. Hydrates restrict flow that An operator was working to produce several gas con- could block production and damage equipment. Typi- densate wells offshore Indonesia that were at depths up cally, preventing hydrate formation is mitigated through to 975 m (3,200 ft). methanol injection at extremely high pressures. This When the operator for this project selected meter- operation requires an efficient delivery method while ing pumps, they considered all of the factors: power, ensuring accuracy and safety. accuracy, efficiency and reliability. They also needed flexibility, and sought out a modular design that could Deepwater chemical injection include different liquid-end options. They required Metering pumps accurately control the dosing of chemi- variable stroke length and adjustable flow capabilities cals including methanol. While metering pumps are rel- to address the wide range of chemicals required at the atively small components on a production platform, they job site. perform a critical role. If flow assurance chemicals stop After a comprehensive evaluation, they chose Milton flowing for any reason, production can come to a halt. Roy’s Primeroyal metering pumps because of its modu- In deepwater production operations, beyond the abil- lar design options including motor configurations, mul- ity to deliver these chemicals thousands of feet deep, tiplexing and liquid-end variations that could reach the they also need to extend far below the seabed, where required depths and withstand the pressures. Primeroyal backpressure can measure five to seven times greater pumps can accommodate flows up to 16,000 gal/hr and Primeroyal metering pumps can accommodate flows up than the pressure on the seafloor. The pumps must be pressures up to 20,000 psi. to 16,000 gal/hr and pressures up to 20,000 psi. (Photo powerful enough to deliver reliable fluid flow to the At the customer’s request, the pumps were fitted with courtesy of Milton Roy) required depths efficiently to ensure hydrate inhibitors Milton Roy’s latest Packed Plunger NX Liquid End, reach the wellhead with minimal leakage. which is specifically designed to reach higher pressures Conclusion Power and performance is important, but it cannot and higher flow rates. The NX Liquid End is best suited Metering pumps aid in critical process control of come through tradeoffs in efficiency. Electrical energy for projects where net-positive inlet pressure is an issue. high-pressure methanol injection. The safe, efficient is a precious commodity in offshore environments that The liquid end is designed to handle temperatures as and reliable delivery of these chemicals is amplified must autonomously produce their own electricity so high as 315 C (600 F), with pressures up to 1,000 bar in an offshore environment, and these factors should any pump used must be efficient. (14,504 psi). be at the top of the list when designing metering In addition, to accommodate different operator pro- As a result, the metering pumps were modified per pump systems. duction and structure requirements, the modularity of the operator’s specifications and tested to ensure zero For more information on Milton Roy’s technology, the pump design is key to enable customizable configu- external leakage for up to 20,000 hours. visit OTC booth 2765 or go to miltonroy.com. n

‘Less Is More’ Is Inspiration for Industry in Current Era n Turrets: determining the ‘must haves’ vs. ‘nice to haves’ in the low oil price era. BY PHILIPPE LAVAGNA, SBM OFFSHORE comprehensive range of turrets to find the best and least expensive solution. The company’s portfolio offers s the major players pay even closer attention to a range from A to Z—from top-end mooring solutions Aproject economics due to rising costs and plum- such as for Prelude and Quad204 to the other end of meting oil prices, project viability becomes riskier and the scale such as the turret for floating, storage and off- breakeven is often a moveable target. According to the loading unit Ruby—where low complexity can mean a Financial Times, “Companies have shelved more than a simple and safe turret mooring system with a basic level trillion dollars in investment plans.” of functionalities. In a $100/bbl market the net pres- In recent years, the complexity of a project is the major ent value equation is optimized by completely different variable in the cost equation, and it is the turret that rep- parameters than in a $30/bbl to $40/bbl market where resents a significant part of the total investment for an the delta revenue of the highest production uptime is no FPSO or floating LNG unit. This is for many reasons longer able to justify the delta LCC (i.e., capex and opex) including the bespoke nature required for harsh envi- of the more complex asset (vessel) required to achieve ronments and the fact that the turret hosts the subsea such a maximized production uptime. equipment acting as the heart of the interface—a factor When well designed, less complexity and equipment which dictates the complexity. The bottom line is that does not compromise safety. Less equipment reduces the turret costs have risen due to complexity, while simple probability of equipment failure and reduces both capex fields have been overlooked in the hunt for more pro- and maintenance costs. Less maintenance also means fewer ductive and profitable but more challenging fields. people exposed, which is another way to improve safety. Is there a way for turrets to be simplified and signifi- Less capex/opex can mean more projects becoming cantly reduce their cost? Yes. Less can be more. Advo- economically viable. SBM Offshore has followed the path cating going back to basics, SBM has designed and of increased complexity to match the target of highest engineered the world’s largest and most complex turrets uptime. However, its history harks back to simpler tur- for Shell’s Prelude and BP’s Quad 204, and said less chal- rets. The company’s various sets of expertise mean that The world’s largest turret was designed and engineered lenging fields will become more attractive to the oil and the “back to basics” concept is actually a reality now by by SBM Offshore for Shell’s Prelude. (Image courtesy of gas majors because the capex is less by keeping it simple. using existing SBM Offshore products. Simple does not SBM Offshore) New paradigms need to be found, and this is when mean easy, and it is as a result of its expertise in the com- a service provider like SBM Offshore can dip into its plex that SBM Offshore has perfected and optimized its See INSPIRATION continued on page 22

18 TUESDAY | MAY 3, 2016 | OTC SHOW DAILY Life-of-Asset Advisory Solutions Help the Bottom Line n When budgets continually shrink, it’s time to cut costs, not corners.

asset modeling, production management, digital-oil- BY MANOJ NIMBALKAR AND OSCAR RIVERA, WEATHERFORD field execution and field rejuvenation. The process begins with an integrated asset model imple one-off cost cutting will no longer suffice in that monitors the flow of gas, oil and water from the Sthe current economic climate. Now is the time to reservoir to surface facilities to the point of sale, which find systemwide efficiencies throughout the life of a well enables accurate production forecasting. The asset man- and reservoir. agement team can then focus on real-time production The Weatherford Advisory life-of-asset solution series management using the i-DO software platform. As the brings together hard science, proven processes, techni- asset reaches maturity, this detailed knowledge about cal expertise and technologies to deliver intelligent solu- trapped oil provides guidance on the most cost-effective tions for oilfield challenges. The series, which includes production rejuvenation methods as well as the overall the Drilling Advisor, FracAdvisor, Production Advisor investment strategy. The Weatherford Advisory series provides solutions for and Well Abandonment Advisor products, delivers the life of the asset, from drilling to completion to produc- sound engineering strategy and technologies for any See ADVISORY continued on page 20 tion to abandonment. (Image courtesy of Weatherford) asset at any stage of development.

Drilling By providing engineered well delivery, Drilling Advisor improves drilling per- formance and hazard avoidance. Each well—offshore, deepwater, conventional or unconventional—presents unique drilling challenges that can lead to kicks, losses, stuck tools and nonproductive time (NPT). Drilling Advisor brings a scientific approach to early prediction of well behav- ior by analyzing historical data to create a robust predrill plan and then performing real-time monitoring and dynamic mod- eling to reduce NPT. The proprietary soft- ware platform enables integration across the drilling process to deliver drilling optimization, wellbore stability and drill- ing hazard management. Once the well is brought safely to total depth, Weatherford experts provide a post-drill outline of suc- cesses and lessons learned, which can be applied to future wells. Drawing from best practices and drill- ing technologies, Drilling Advisor brings expertise to reduce uncertainty and improve the safety and efficiency of the drilling program.

Hydraulic fracturing service This service delivers geoengineered well placement and completion designs opti- mized to the individual well and overall reservoir. Because completions often con- sume 60% of the budget in horizontal wells, efficiency in this area is especially critical. Through the integration of hydraulic frac- turing, completion and formation evalua- tion technologies, the FracAdvisor service improves well productivity and hydrocar- bon recovery in unconventional plays. This integrated approach uses propri- etary, basin-specific algorithms to create the optimal stage, perforation cluster and frack designs, all of which are validated with production results from nearby wells. Engineers then determine perforation and/or packer placement decisions along- side stage-by-stage fracture modeling. Leveraging efficient completion tools, the service enhances life-of-well production by improving completion efficiency, opti- mizing production rate and recovery, and reducing overall completion costs.

Production By accurately forecasting, monitoring and managing production, the Production Advisor delivers proactive and integrated asset management. Depending on the type and maturity of the asset, each cus- tomized solution can include integrated

OTC SHOW DAILY | MAY 3, 2016 | TUESDAY 19 DRU Provides Density, Rheology Data at Far Greater Frequencies n The DRU can be added to any drilling program to help increase efficiency, reduce risk and communicate performance of drilling projects.

CONTRIBUTED BY HALLIBURTON fluid technicians to focus on more critical rig site respon- pressurized mud balance. Data captured by the BaraL- sibilities and can help allow operators and fluids specialists ogix DRU can be monitored remotely through the use utomation and real-time measurement capabilities to take a more proactive approach to managing drilling of the Halliburton InSite Anywhere platform to help Acan help operators more effectively manage drill- operations. The BaraLogix DRU can provide highly accu- communicate performance across the drilling team and ing projects. Accurate drilling fluids data are critical to rate density and rheology data at frequencies far greater provide additional project oversight. maintaining a stable wellbore and successfully drilling than manual mud checks. The ability to feed data to real- In the Gulf of Mexico, a major operator recently used to total depth. Manual mud checks by fluids represen- time hydraulics simulation software can help operators two BaraLogix DRUs to help monitor and maintain fluid tatives at the rig site take considerable time, and data streamline decision-making, so adjustments to drilling density and rheology on a technically challenging deepwa- can potentially be up to 24 hours old. This gap between parameters for increased efficiency can be executed faster ter well. Active monitoring of the data stream allowed the datapoints brings an opportunity for improvement. Fre- than with previously available technologies. Addition- fluids engineers to make smaller, more frequent adjust- quent and accurate data collection can help provide a ally, the data frequency and accuracy can help operators ments to maintain proper formulations. The operator was better picture of current fluid conditions in the wellbore predict potential problems or detect issues with faster able to reduce fluid dilution rates and save about 143 bbl and allow operators to make more informed decisions response times, and intervention steps can be applied to of base oil, resulting in net cost savings of about $22,868. at a faster rate. help reduce or eliminate nonproductive time (NPT). The BaraLogix DRU provides new capabilities to Halliburton Baroid has developed a product to capture The BaraLogix DRU is engineered to handle up to help operators manage fluids properties in real time. and analyze real-time fluids data. The BaraLogix Density & 14 days of continuous autonomous operation prior to The automated data collection helps identify trends in Rheology Unit (DRU) is a combination of density and rheol- maintenance servicing. The modular design can be con- the drilling fluid properties that were unavailable with ogy measurement capabilities in a single, modular package figured for ATEX and IECEx Certification, so the unit previous rigsite resources. Drilling performance and that allows real-time measurements combined with trend- can be placed near the mud tanks for easy installation. efficiency can be optimized through recognition of ing analysis that is autonomous and highly visible to the well Data accuracy is critical, and the BaraLogix DRU has changes in the drilling fluid, analysis of the data trends construction team. The BaraLogix DRU can be added to any proven its capabilities in the laboratory, in liquid mud and appropriate fluid adjustments in real time. This can drilling program to help increase efficiency, reduce risk and plants and through rig deployments. Six-speed rheology help operators reduce NPT and return significant cost communicate performance of drilling projects. measurements can be captured every 15 minutes with savings. The BaraLogix DRU can be added to any drill- The BaraLogix DRU also was awarded the 2016 OTC accuracy within 1.5 dial readings of the industry-rec- ing program and offers measurable benefits for techni- Spotlight on New Technology Award. ognized FANN 35 rheometer. Density readings can be cally challenging wells, deepwater applications, offshore Automating routine fluid property tests helps enable taken every minute with accuracy within 0.1 ppg of a shelf and extended-reach projects. n

MATERIALS (continued from page 17) the leak is extracted from the global ambient noise in the ditions and at 16 km (9.6 miles) in high noise conditions mechanical tests were conducted to determine the correct pipeline, according to the OTC-27026-MS paper. in the pipeline. material composition and verify manufacturing quality. By measuring the amplitude and phase-time shift The complete dissolution of the frack plug eliminates of the sound waves and analyzing the acoustic sig- Dissolvable metal alloy for frack plug the need for a separate mill run intervention, which nature, the system detects the origin and location of A high-strength metal alloy that is combined with a helps reduce cost, operation time and risks to personnel. the leak and sets off an alarm. The paper presents the dopant allows dissolution of the alloy in water-based For a complete list of session papers and authors, see latest technical improvements on the acoustic sensors wellbore fluid, formation fluid or production fluid, the daily technical program lineup at 2016.otcnet.org. n and software on the PipeLIDS that was installed on the according to the OTC-27187-MS paper by Halliburton. Societe Pipeline Sud Europeen’ Fos-sur-Mer diesel The cathodic dopant creates a galvanic reaction with the ADVISORY (continued from page 19) pipeline in France. base metal and causes the base metal to degrade. A leak was simulated in the pipeline by a ½-in. valve The degradable metal is created by adding a dopant to Assessing the reservoir and surface characteristics opening during commissioning. The simulation showed the base metal while both materials are in a molten or in real time, Production Advisor effectively enables that the pressure surge of opening and closing the valve near-molten state. The solid solution is a familiar foundry operators to extend the economic life of their asset by could be detected at 57 km (34 miles) in low noise con- process. More than 450 dissolution tests and more than 400 reducing the total cost of production.

Well abandonment A combination of technologies and project management delivers effective and compliant well abandonment. As wells reach the end of their economic life, proper plugging and abandonment can safely and permanently mitigate any adverse environmental impact. Through a combination of specialized technologies, proprietary models and proj- ect management, the Well Abandonment Advisor manages the complete project, from scoping to regulatory filing to rigup and close-out. A phased approach produces an effective risk-management and com- pliance-adherence strategy that identifies potential issues before work begins. This reduces the risk of scope creep and helps to ensure the job is done safely, on time and within budget.

Beyond software, technologies The advisory series goes beyond proprietary modeling tools, products and services. Rather, these tools provide a means to engage clients in a collaborative relationship that informs a deeper understanding of each asset, reduces total asset ownership costs and meets client production goals on time and budget. n

20 TUESDAY | MAY 3, 2016 | OTC SHOW DAILY Service Provides Worldwide Coverage of 250-plus Offshore Projects n Live demonstrations of the new service will be held at OTC booth 3217.

CONTRIBUTED BY STRATAS ADVISORS Who Benefits From This Service? How Do They Use It? Strategy teams at E&P companies, including integrated Eliminate opportunity costs xperts from Stratas Advisors will host live demon- oil companies and national oil companies Estrations of the company’s new Global Offshore Proj- Financial analysts at E&P companies Use scalable, comparative data to make optimum ects Service at OTC. Attendees can stop by booth 3217 business decisions at Houston’s NRG Center. Seats can be reserved for the Business development managers at E&P companies Accurately evaluate the economics of potential projects demonstrations by registering online. Senior management teams at E&P companies Compare planned projects to completed projects in the The Global Offshore Projects Service provides same field worldwide coverage of 250-plus offshore projects, Executives and analysts at oilfield service companies Understand expected offshore drilling activity and who with a focus on recent and future developments. The is spending money where web-based application includes multiple economic Executives and analysts at engineering, procurement Get a view toward expected capital spending on different measures throughout the project life cycle, analysis of and construction companies types of fixed and floating platforms and vessels publicly announced E&P projects and detailed fiscal Executives and analysts at institutional financial Analyze the relative exposure that different companies models by country. The transparent modeling shows service firms have in the offshore markets calculations, adjusts the assumptions as desired and analyzes the results. “Our Global Offshore Projects Service gives a quick ular and ‘big picture’ understanding of the competitive The amount of investment required for global offshore view of the key offshore projects around the world offshore landscape.” projects makes for high risks. Stratas Advisors’ valuable vying for discretionary capital budgets,” said Paul Stratas Advisors experts are available to answer questions resource enables industry professionals to make more Morgan, executive director, upstream, at Stratas Advi- and can offer insights to the energy industry. For interview informed business decisions. sors. “It’s a key resource to help companies get a gran- opportunities, contact [email protected]. n

PERSPECTIVE (continued from page 4)

Speaking of challenges from an operator’s perspective, creation either through accelerated production and/or innovation in the market place to bring about needed Jeff Jones, senior adviser for subsea systems at Exxon increased recovery. Involve a multidisciplinary team technical improvements. Mobil, indicated that it’s a limited uptake across opera- and use integrated simulation tools to evaluate subsea Rune Fantoft, CEO of Fjords Processing (formerly tors who are focused on low project capex, especially in separation systems in early phase of project develop- Aker Solutions), stressed the importance of focus- this particular environment. Pull from senior leadership ment. Develop a long-term development and com- ing on the creative and attractive field development is necessary to see the “bigger picture” of subsea pro- mercialization strategy to lower the life-cycle cost of solutions, especially in the volatile environment like cessing, including separation, and to unlock tremendous components, assemblies and systems. Consider qual- this. He addressed the obstacles that block simple potential in deepwater, long distance tieback and arctic ification of components/systems over a wide range of and reliable solutions and optimize packages. There developments. He indicated that there are opportunities operating conditions so as to avoid bespoke solutions is technology out there, but it’s time to focus on the for improvement and that separator systems must be that are costly and require extensive qualification. In application of the technology across all disciplines, “custom designed” for reservoir suitability, field layout addition, reuse qualified technology from previous he said. n and topsides support. designs where applicable. Promote standardization of But it’s time to move forward to overcome any mar- physical interfaces (topsides, umbilical, subsea), equip- Dr. Phaneendra Kondapi is director of subsea engineer- ket situation. Jones indicated in a positive note that ment configuration (size, performance, layout), FEED ing at Texas A&M University and an adjunct professor of individual project business cases must focus on value solutions and qualification protocols, while allowing subsea engineering at University of Houston.

MINIVAN (continued from page 10) For a complete list of session papers and authors for Studies and the Technologies Involved” technical panel, “The traditional method is what I like to call the ‘mini- the “Decommissioning and Well Abandonment: Case see the daily technical lineup at 2016.otcnet.org. n van’ model,” he said. “It’s very slow but gets the job done.” He highlighted in his talk a forecast con- ducted in January 2011 by an independent operator needing to decommission its idle iron inventory of 245 wells and 93 struc- tures over a five-year period to be $409 million using the traditional methods. “That’s very expensive for a mid-size operator,” he said. “We had to look for something different. We needed a new idea.” That idea came in the form of a new opti- mized decommissioning methodology that employed the size and capabilities of a newly designed and constructed 335’ class self-ele- vating, self-propelled liftboat. The new boat provided the space and lifting capacity nec- essary to perform the majority of the work steps concurrently—rather than sequen- tially—and in just one spread mobilization. “This change from the traditional min- ivan approach is what I call the Ferrari method,” he said. “It is sleeker, faster and allows us to get more done in less time.” According to Siems, over a 30-month period the new concurrent model resulted in 140% more wells and structures being removed over the number expected to have been removed using traditional methods. Using the opti- mized method, decommissioning costs were reduced to $278 million, he said.

OTC SHOW DAILY | MAY 3, 2016 | TUESDAY 21 A Total Mooring Solution n Faster mobilization and reduced drilling costs are key to operations.

CONTRIBUTED BY GLOBAL MARITIME DEEP Sea Mooring, this included Global Maritime Vryhof, SEA MOORING a pioneer in anchoring; Global Maritime MoorLink, which focuses on mobile, permanent and installation he global offshore mooring industry is facing signif- mooring solutions; and Global Maritime Consul- Ticant challenges as it seeks to balance the increasing tancy and Engineering, a marine, offshore and engi- complexity and remoteness of offshore developments neering consultancy. with the need to manage expenditure in today’s cost-con- Mooring services were provided for a semisubmers- scious environment. ible drilling unit. Accompanying challenges included the With every day a rig is in transport being a day lost to need to navigate around existing subsea infrastructure drilling, faster mobilization and reduced drilling costs such as pipelines, wellheads and umbilicals as well as the are key to operations. At the same time, all operators fact that the drilling unit would be in operation during must continue to operate to the highest standards of cyclone season. safety and asset integrity. Deep Sea Mooring designed, engineered and supplied It’s against this backdrop that operators and drilling an advanced 12-point mooring system with the initial Global Maritime’s sister company Deep Sea Mooring contractors are looking to a total mooring solution that installation consisting of 12 prelaid anchors that were carried out an operation offshore Australia last year, includes everything from pre-lay and pre-rig advances set and tension tested prior to the arrival of the semisub- designing, engineering and supplying a 12-point moor- through to the very latest in anchoring, buoyancy units, mersible drilling unit. ing system for a semisubmersible rig. (Photo courtesy fiber mooring rope, swivels and more. The total mooring solution, when the rig was oper- of Global Maritime Deep Sea Mooring) One such provider is globally positioned Global Mar- ational, consisted of eight 1,750-m (5,741-ft) mooring itime Deep Sea Mooring, which offers a comprehensive lines—a combination of chain, synthetic fiber rope, rig Deep Sea Mooring’s Advanced Distance and Positioning portfolio of offshore mooring services from pre-lay and chain, subsurface buoys and the relevant jewelry for con- System (ADAPS) and Device Tracking and Control Sys- rig move solutions through to marine engineering and nection; four storm mooring lines at 1,930 m (6,332 ft) tems (DTAC) also were used. The ADAPS helped attach the mooring equipment rental. to ensure maximum stability during the cyclone season anchors prior to deployment, ensured that the anchor landed In March 2015, Deep Sea Mooring put its total moor- (outside cyclone season only eight mooring lines were in the required position and provided the pitch and roll of ing proposition to the test in securing a turnkey contract used); high-strength MoorLink swivels that were used to the anchor along with the depth of penetration—vital when for the provision of mooring and rig positioning services relieve the twist and torque that builds up in the moor- placing anchors in close proximity to subsea structures (as to an Australian oil and gas operator. ing line; and 20-ton mK5 StevShark anchors from Vry- was the case here). The DTAC provided desktop tracking The contract represented the first time all four hof, which facilitate performance in challenging soils. In and buoy position monitoring prior to the rig’s arrival. sister companies of Global Maritime have been this case, the mud line consisted of very silty sand (silt) For further information, visit the Global Maritime involved in an Australian operation. As well as Deep and the formation sandy clay/silty clay. Vryhof at OTC booth 2233. n

INSPIRATION (continued from page 18) back to basics turrets—offering unique and added value. (EPCI) chain to propose the best solution—not necessar- of the project. Plus, less equipment/complexity Focusing efforts on the essence of simple and robust, ily a complex solution—for a specific project. means a faster construction stage with inherent cost passive weather-vaning mooring systems, it provides Cost savings and optimizations can be made at each stage: and schedule savings. mooring solutions ideal for the low oil reality with no • Engineering: avoid recalculating to optimize a spe- • Installation: this needs to be considered from the compromise on the HSSE commitment. Key to cost con- cific project by using standard and field-proven solu- beginning (integrated at the engineering phase) and trol is early engagement with the client to allow a review tions. therefore the most cost-efficient and safe way is to of the project and to assist the client in discriminating • Procurement: benefit from more standardization by include the installation scope in the mooring system between the “must have” requirements and the “nice to using a functional specification rather than enforc- contract (i.e., EPCI instead of EPC). have” items that add cost. Armed with the knowledge ing more demanding and more costly specifications. Finally, in the execution of the project if less bureau- of what is required for each level of functionality, so the • Construction: the optimum scenario is when the cli- cracy is married with more human interface, past proj- specification can be optimized for today’s new set of proj- ent adopts a hands-off approach on the execution ects by SBM Offshore have shown that this strategy ect constraints, SBM Offshore can leverage its know-how of this stage allowing the contractor to leverage its clocks up less man-hours and more added value. across complex to simple mooring systems along the expertise while both the client and service provider The principles of standardization (stream lining work engineering, procurement, construction and installation jointly focus on the HSSE and QA/QC performance alongside a lean management) are a must for the sake of project economic viability. Keeping an open mind to trust the contractor to keep it simple (when possible) and safe (always) rather than imposing a prescribed specifi- cation will open up possibilities. n

International Attendees: Meet and Relax at OTC

The International Lounge offers international visitors a place to visit and network during OTC. Mul- tilingual members of the National Oil Equipment Manufacturers and Delegates Society (NOMADS) and the members of the Society of Pe- troleum Engineers (SPE) Gulf Coast Section Auxiliary are available to provide assistance with information regarding Houston-area shopping, restaurants, museums, theaters and emergency medical appointments. The International Lounge is located in NRG Center, level 2, room 700.

22 TUESDAY | MAY 3, 2016 | OTC SHOW DAILY DOWNTURN (continued from page 1) “Most of the wells are intelligent completions, and the To reduce costs and gain flexibility, standardized “It has helped our rig teams in Egypt complete six whole process involves eight producers, five water-alter- christmas trees were incorporated into the well design. of the best wells ever in the Nile River Basin,” he said. nating-gas (WAG) wells, two subsea manifolds and one The design also included two WAG injection manifolds, With climate change accords and greater use of gas injector well,” Cruz said. which lowered the number of injection risers. alternative energy, the oil and gas industry needs to As detailed in an OTC paper about the project, the res- However, the greatest risk of the project was the sub- distance itself from the turbulence of the commodity ervoir data acquisition and drainage plan studies provided sea construction, gathering system and installation, Cruz market. Though alternative energy sources make up a guidance on artificial lift, flow assurance, gathering system said. Subsea system fabrication delays prompted the con- small portion of overall energy production, each year and fluids processing concepts. A downhole fluid sampling sortium, which included BG E&P Brasil and Petrogal it’s seeing the kind of improvement that E&P compa- and laboratory experiments program was established to Brasil, to use flexible risers to connect the first producer nies dream about. “identify critical aspects of flow assurance, such as wax, well to start up the FPSO unit as scheduled. Other delays Looney said the cost of onshore wind electricity gelation, hydrates, asphaltenes and inorganic scale.” forced changes in the drilling campaign, adding value to generation has been cut in half since 2009. In a similar There were also challenges with the gathering system, the importance of having contingency plans. But instal- time frame, the cost of solar manufacturing has fallen considering “there were no off-the-shelf proven technol- lation of FPSO Cidade de Paraty was quick. about 75%—and by 99% since 1976. Battery costs are ogies that could handle this amount of contaminates, at Completing such a large fast-track while developing new on the same downward trajectory. Lithium ion bat- this water depth and pressure,” Cruz added. The strategy technology required putting focus on key information, ters used in electric vehicles are projected to drop 77% was to run a design competition to find solutions, Cruz Cruz said. The first well was drilled in 2009, and first oil between 2010 and 2018. said, targeting seven major prequalified subsea providers. was reached in 2013 with plateau production hit in 2014. “The Tesla Model 3 will go over 300 more miles The winning proposal, he said, had two submerged buoys “We work in a risky business so there will always be [483 km] on a single charge,” Looney said. for riser support. The proposal also included eight buoy foun- uncertainties,” he said. “It’s a matter of strategy” and find- Like their manufacturing cousins, oil and gas pro- dations, 16 tethers, 15 catenary risers ending up with pipeline ing key information. Companies involved also set up what ducers cannot be satisfied or stop challenging them- ends terminations, production clad lines and gas injection Cruz called a “war room” to enable fast decision-making selves at every step. lines (steel catenary risers) and riser anchoring piles. and communication among stakeholders. n “There’s a reason we still talk about Henry Ford 100 years on from the Model T,” he said. Over time, perfecting the company’s assembly line meant Ford could build a car in 90 minutes, instead of 12 hours. “We already have an example of how to do that here in the onshore in Texas and across the Lower 48,” Looney said. Despite the Lower 48 rig count vapor- izing by roughly 80% to about 400, pro- duction is close to what it was when the downturn began in earnest in November 2014. The shale revolution has been about breakthroughs and technological responses that have helped maintain productivity. “In just a few years, our own Lower 48 business in BP has seen a 60% reduction in the development costs of the wells we drill in the San Juan Basin,” he said. Energy forecasts suggest that by 2035 demand will increase by one-third. Before then, the price of oil will doubtless see more cycles. Continuous improvement seems to evaporate in the good times, Looney said. As prices improve, the industry will need to hold fast to a philosophy of improvement and innovation or it will suffer again. “We need to hold onto this even when the oil price recovers,” he said. “That is when the true test will come.” n

CHALLENGES (continued from page 1)

But the mission was accomplished as Rafael Cruz, res- ervoir engineer for Petrobras, explained during a technical session on overcom- ing challenges on Rafael Cruz offshore field devel- opments. In February 2015, production reached 950,000 bbl/d of oil and hopes are to reach the 2017 target one year ahead of schedule. “Lula has successfully met its business objectives so far. First oil was only nine days away from the three-year milestone,” Cruz said, adding a new subsea concept was developed and the FPSO unit is cur- rently producing at its maximum capacity. One of the goals of the project was to gain presalt experience through data acquisition, Cruz said. Work included two seismic acquisitions, including a high-res- olution one, along with a drillstem test program, extended well tests and an inter- ference test along with production logging tests, fluid samples, special fluid analysis, large computer cluster and people to get the work done.

OTC SHOW DAILY | MAY 3, 2016 | TUESDAY 23