Download Issue 131 - January/February 2010 - SPE WA

SPEAustralia ◆ NZ ◆ PNGIssue 131January/February 2010ISSN 1449-8545NEWSAustralia, New Zealand and PNG Sections

Baker Hughes TCP Services:Big Bore Gas Well – Offshore Australia:Prejob Modeling to Optimise Tubing-Conveyed PerforatingReducing Downhole Hardware – no DynamicUnderbalance Equipment Required to AchieveCleanup:Cost and unnecessary complication for the client was avoided –modeling predicted that dynamic underbalance equipment was notrequired. This was confirmed by high speed gauge data acquiredduring the perforating job.Optimising Charge SelectionCharge selection was optimized by nodal analysis modeling thecompletion and prognosed flow rate.Various shot densities and phasings were modeled for the variousformations along the ~2000m horizontal section through the pay zone.Minimising Deployment RisksDetailed pre-job torque-and-drag modeling was conducted usingthe Baker Hughes Deployment Risk Management system (DRMSM).The modeling revealed that the deployment would be difficult dueto combined effects of the change in ID at the liner lap and the welltrajectory. Baker Hughes proposed using technology derived fromits Horizontal Oriented Perforating System (HOPSSM) service. TheTorque and Drag Analysis showed that by using HOPS swivels thetorque and drag on the BHA could be reduced to manageable levelsdespite the length and complexity of the work string.Customer FeedbackThe Operator’s Completions Supervisor issued the followingstatement after the job:I want to congratulate you all on performing a challenging and complicated task exceptionally well, practically flawless in fact, from start to finish. Your technicalpreparations were well thought out and well documented, your willingness to participate in our Hazard IDs and other meetings was unquestioning, the logisticswere seamlessly executed, the gun loading process on the rig was very well run and quite impressive to the rig crew and the job itself went very well. All-in-all anextremely impressive job – I like your work!Advancing Reservoir PerformanceBaker Hughes Perth Office Tel: +61 8 9217 7100 Email: roger.marsh@bakerhughes.com

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SPE News #131Contents6 Conferences & Courses8 2009 RetrospectiveA look back at 2009Front cover:Nabor’s hybrid CT unit in the CT drill mode.10 AOGAOG previewGeophysics and geohazardsSubsea Australasia Conference13 Young ProfessionalsTaking the plunge16 Subsea SpotlightThe Media Jungle17 Drilling AheadNew third generation rotary:Shouldered connections provide improved performance and cost-savingDrilling-the-Limit—Hybrid coil over top drive drilling technology24 Section NewsSPE WA End of Year BashYPP Queensland

EXPLORE THE LATESTE&P TECHNOLOGYDevelop new business in Oil & Gas and discoverinnovations in Subsea, IMR, Flow Control and Engineeringfrom over 500 leading national and international suppliers.Drive your projects further at Australia’s largest Oil & Gas expo.Register free online at www.aogexpo.com.au use code SPESupported byOfficial Media PartnerAUSTRALASIAN OIL & GASEXHIBITION & CONFERENCE24-26 MARCH 2010PERTH CONVENTION EXHIBITION CENTRE

SPE NewsPublished for The Society of Petroleum Engineers by RESolutions Resource & Energy Services Pty LtdAdvertisersAustralian Marine Complex 7Baker HugesIFCCTC Marine Projects 20Digital Core Laboratories 6Diversifi ed Exhibitions 3DownUnder GeoSolutions 1Enerfl ex 10The Media Jungle 4SchlumbergerOBCSwagelok 5Tam InternationalIBCUNSW 12Well TrainINSERTPublisher/Editor:Brian WickinsRESolutions Resource & Energy Services Pty LtdPO Box 24 Innaloo City WA 6918Tel: +61 8 9347 9400Fax: +61 8 9244 3714E-mail: brian@resolutions-group.com.auSales and Marketing:Mads AanesenTel: +61 8 9347 9402E-mail: mads@resolutions-group.com.auSenior Journalist:Martin KovacsTel: +61 8 9347 9407E-mail: martin@resolutions-group.com.auJournalist:Ashlee LawfordTel: +61 8 9347 9406E-mail: ashlee@resolutions-group.com.auOffices:KL: Cordella Wong GilletTel: +60 3 2288 1233Publication Chair Person:Matthew FlettChevron AustraliaMobile +61 421 869 645Email: Matthew.Flett@Chevron.comCouncil:Australia/NZ/PNGRod Bresnehan, ChairmanTel: +61 7 3359 8988E-mail: rod.bresnehan@innapet.com.auCopyright:SPE News (Issue No. 131) is published under the authority ofthe Western Australian Section of the Society of PetroleumEngineers. Reproduction of material in whole or part requiresthe customary acknowledgements.DisclaimerAll expressions of opinion in SPE News are published on thebasis that they are not to be regarded as expressing officialviews of the Society of Petroleum Engineers unless expresslystated. The Society accepts no responsibility for the accuracyof any of the opinions or information contained in thispublication and readers should rely upon their own enquiriesin making any decisions touching upon their own interests.Deadlines:SPE News is published 10 times a year. The deadline forsubmission of all editorial material to the Editor is the firstweek of the month prior to issue, i.e. first week of Februaryfor March edition. SPE News is published monthly exceptNovember/December and January/February are combinededitions.Animang Energy Projects WorldwideThe Media Jungle Pty Ltd is an innovaveprovider of high quality digital y throughsfor the minerals and energy sectors.With over 25 years experience, ourspecialized team produce uniquepresentaons that aid in corporate aairs,sta inducons, technical reviews andinvestor relaons campaigns.Current Energy Client List:Apache EnergyChevron AustraliaCTC Marine ProjectsEastern Star GasENI AustraliaGorgon Australia LNGGreen Rock EnergyLatent PetroleumMcDermo IndustriesNexus EnergyNuencoOMV New ZealandPella EnergyPetroleum GeoservicesSantosWoodside EnergySuite 1 - 68 Wienoom StreetEast Perth WA 6004Tel: 08 9221 8478www.themediajungle.com.au4SPE NEWS January/February 2010www.spe.org

© 2009 Swagelok CompanyIn addition to tube fittings,we also make valves,regulators, filters,and happier customers.Contrary to what you may think, we’re much more than a tube fitting company.And we have our obsession with Customer Focus to thank for that. Yes, we’reknown throughout the world for our tube fittings. And yes, we’ve been at it for over60 years. But when companies are looking harder than ever for greater value, it’sour broad range of products, including orbital welders, modular systems, and acomplete line of hose, that helps us offer more than you expect. See for yourselfat swagelok.com/moreproducts.

Conferences & Courses2010FEBRUARY 201023–25SPE Unconventional Gas ConferencePittsburgh, USAwww.spe.org24–252010 SPE/IADC Managed Pressure Drilling& Underbalanced Operations Conference &ExhibitionKuala Lumpur, Malaysiawww.iadc.org/conferences/MPD_UBOMARCH21–24SPE ATW: High Rate Gas WellsBurswood Entertainment Complex, Perthwww.spe.org24–26AOG 2010Perth Convention Exhibition Centrewww.aogexpo.com.au/May 2010APRIL12–16Spillcon 2010Grand Hyatt, Melbournewww.spillcon.com19–21SPE/EAGE Joint Workshop: The UpstreamLab, A Valuable Hard Data HubParndorf, Austriawww.spe.org24–2817th SPE Improved Oil Recovery SymposiumTulsa, Oklahoma, USAwww.speior.orgMARCH25Geophysics and Geohazards: DefiningSubsea Engineering RiskDuxton Hotel, Perth, WAwww.sut.org.auMAY10–14Reservoir Simulation—Beyond TomorrowPhuket, Thailandwww.spe.org16–19APPEA Conference and Exhibition 2010Brisbane, Queenslandwww.appeaconference.com.au24–25SPE International Conference onOilfield CorrosionAberdeen, UKwww.spe.orgJUNE1–4SPE ATW: Carbon Capture and StorageLeoben, Austriawww.spe.org8–10International Oil & Gas Conference andExhibition in ChinaBeijing, Chinawww.spe.orgAUGUST 2010Digital Core AnalystsBased in Canberra, Digital Core Laboratories is the leading-edge provider of 3D high resolutionimage-based core analysis and petrophysical services to the oil and gas industry. Our clientsinclude some of the world’s largest oil and gas companies.We are looking for individuals who demonstrate the following criteria:• A strong background in either Engineering, Mathematics, Geoscience/Physical Science or IT• Excellent oral and written communication skills• High levels of computer literacy• An ability to work methodically and a good eye for detail• An ability to work both independently and as part of a wider service delivery teamKnowledge of the oil and gas industry and/or geological, petrophysical or reservoir engineeringexperience would be an advantage.Applicants must be Australian citizens, permanent residents or eligible for permanent residency.A competitive salary together with the opportunity to participate in an employee share optionplan will be provided.Successful applicants will be part of a dynamic and rapidly growing team and work with avariety of global clients to undertake:• Computational analysis of rock samples• Preparation of visualisations and animations- critical appraisal of analysis results• Assisting clients in developing solutions to reservoir characterisation difficulties22–26ASEG-PESA 21st Conference and ExhibitionSydney, NSWwww.aseg.org.auSEPTEMBER19–222010 NZ Petroleum ConferenceSkycity, Auckland, New Zealandwww.crownminerals.govt.nzOCTOBER 201017–20SPE APOGCEBrisbane, Queenslandwww.spe.orgSuccessful applicants will be offered extensive work-based training over a 3-6 month period.Applications including a CV and accompanying statement addressing the above criteria shouldbe sent by 12 February 2010 to the Operations Manager via email: contact@digitalcorelabs.com.6SPE NEWS January/February 2010www.spe.org

2009 Retrospective2009 RetrospectiveSPEAustraliaSPEAustraliaIssue 121January/February 2009ISSN 1449-8545◆ NZ ◆ PNGNEWSA look back at2009Australia, New Zealand and PNG SectionsSPEAustraliaSPEAustraliaIssue 121January/February 2009ISSN 1449-8545◆ NZ ◆ PNGNEWSNEWLOOK2009 was another busy year for SPE News,which was there every step of the way to coverdevelopments in the petroleum industry.The year began in subdued fashion, the collectivehangover from 2008’s fi nancial meltdownlingering into the early months. Ophir EnergyManaging Director Alan Stein was bleak in hisassessment of the state of play in theJanuary/February edition:“Exploration will be cut back this year. Productionrevenue will be down. Companies will be lookingto protect their margins. The pure explorers willbe struggling to fi nd cash.”Indeed, the state of play was bleak. Oil hadopened the year at around $40 bbl, havingfallen from mid-2008 highs of close to $140 bbl.As we noted in March, shares in some of theworld’s largest oil companies, including Shell, BP,ExxonMobil, Total and Chevron had fallen morethan a third from their peak in May 2008.Amid the doom and gloom, Sun ResourcesManaging Director Matthew Battrick put thedownturn into some perspective:“All ends of the market in terms of producingcrude are suffering at a low oil price. Havingsaid that, the oil price is twice today what it wasfor most of my 28-year career in the industry onaverage. So, it is certainly going to be profi tableto produce oil, onshore at least.”Despite the crunch, negotiations on North WestShelf development continued, with WesternAustralian Premier Colin Barnett, stung by thedecision of Inpex to pipe its Browse Basin gas toDarwin for processing, set on the development ofa Kimberley LNG hub.“WA appears to have lost one major projectto Darwin because the previous LaborGovernment could not make a decision tosecure the $15 B Inpex project. I do not intendto lose another”, Barnett declared uponannouncement the state was prepared toproceed with the compulsory acquisition ofland if agreement could not be reached withAboriginal groups.Elsewhere in WA, Latent Petroleum continued toassess the commerciality of its tight gas reservesin the Warro fi eld in the Perth Basin.“I am sure that tight gas can make a veryimportant contribution to WA’s energy needs”,Latent Petroleum Managing Director StephenKeenihan observed in SPE’s May edition. “Theindustry has long recognised that there aresizeable gas reserves (up to 12 Tcf) held in tightgas reservoirs in the state, particularly in thePerth Basin.”Indeed, in the wake of the Varanus Islandincident, energy diversity and security was afocus for the new Coalition Government whichestablished a review of WA’s gas network.Australia, New Zealand and PNG SectionsAustralia, New Zealand and PNG SectionsAustralia, New Zealand and PNG SectionsAustralia, New Zealand and PNG SectionsSPEAustraliaSPEAustraliaIssue 123April 2009ISSN 1449-8545◆ NZ ◆ PNGNEWSSPEAustraliaSPEAustraliaIssue 124 123April May 2009ISSN 1449-8545◆ NZ ◆ PNGNEWSSPEAustraliaSPEAustraliaIssue 125June 2009ISSN 1449-8545◆ NZ ◆ PNGNEWS8SPE NEWS January/February 2010www.spe.org

Australia, New Zealand and PNG SectionsCunnamu laDalbyToowoombaWarwick2009 Retrospective“The review will consider the range of plausiblegas supply shortage events and the best wayto minimise any impacts on our community andbusiness”, WA Energy Minister Peter Collier saidof the review that followed a Senate report intothe Varanus explosion recommending furtherreviews of gas security and the management ofgas supply disruptions.On the other side of the country, the continueddevelopment of CSG-to-LNG technology hasQueensland poised to become a major LNGexporter and potential rival to WA. As noted inour November/December edition, with severalproposals for LNG plants at varying stages ofdevelopment, the Queensland Government hasset out its framework for the industry in itsBlueprint for Queensland’s LNG Industry.“It is estimated that Queensland’s burgeoningLNG industry could offer as many as 18,000direct and indirect jobs, including over 4,300 inthe Darling Downs/South West region alone”,Premier Anna Bligh told Parliament.“Much of the nation’s LNG attention has beenon West Australia’s Gorgon project, but thecontracts already signed for our LNG out of theSurat Basin are more than that of Gorgon. If allour projects were to materialise, we have thepotential to export in excess of 50 MMt of LNGper annum”, Bligh said.Meanwhile, as the world continued to recoverfrom the credit crunch, Chevron delivered itsown stimulus package for the WA and Australianeconomies by announcing it was proceeding withthe massive Gorgon project.“Gorgon will be an important pillar of theAustralian economy for the next 40 years”,Chevron Australia Managing Director RoyKrzywosinski stated at a signing ceremonyattended by WA Premier Colin Barnett and federalResources and Energy Minister Martin Ferguson.“We anticipate $33 B will be spent on Australiangoods and services with flow-on effectscascading through the Western Australianeconomy.”Chevron estimates the project will create 6,000jobs during peak construction, with more than3,500 direct and indirect jobs sustained throughoutits lifespan, and anticipates government revenueof around $39.8 B. In total, Gorgon has contractsto sell around $300 B worth of LNG to customersin the Asia Pacifi c over the next 20 years.One of the more evocative and controversialissues for the year—an issue that featuredheavily in many editions of SPE News—wasclimate change and the proposed introduction ofan emissions trading scheme (ETS).At the launch of the government’s CarbonPollution Reduction Scheme (CPRS) White Paper,Prime Minister Kevin Rudd noted the increasedlevel of assistance for companies engagedin emissions intensive activities. Woodside,however, while acknowledging the government’srecognition of the LNG industry as a sector thatwould likely qualify for assistance under theCPRS, continued to express concerns the ETScould adversely impact the sector’s internationalcompetitiveness.“We will continue to emphasise the positiverole LNG can play in helping reduce globalgreenhouse gas emissions and the contributionthe sector’s growth can make to the Australianeconomy”, Woodside CEO Don Voelte stated.“Our concern remains that, in implementingan emissions trading scheme, the governmentdoes not make the industry less competitivewith producers elsewhere in the world. We donot want a scheme which will cost Australianjobs or lead to an increase in greenhousegases through the burning of higher emissionfuels.”With the ETS start-date being pushed back to2011, this is an issue that will doubtless continueto be hotly debated within Australian politics andthe resources industry.The year ahead promises to be just as busy asthe year just passed, and SPE News, once again,will be there to document all the developmentsand topical issues in the petroleum sector. Notonly that, we’ll continue to run high-qualitytechnology focuses, project reviews, regionalfocuses, conference previews and reviews, ourSubsea Spotlight section will continue to bringyou news from the subsea sector, plus we’ll keepyou up-to-date with all the latest industry newsat home and abroad. ◆Australia, New Zealand and PNG SectionsAustralia, New Zealand and PNG SectionsMount IsaPhosphate Hi lBa leraKarumbaJulia CreekEromangaJacksonSPEAustraliaSPEAustraliaIssue 126July 2009ISSN 1449-8545Australia, New Zealand and PNG Sections◆ ◆ NZ PNGNEWSSPEAustraliaSPEAustraliaIssue 127August 2009ISSN 1449-8545◆ ◆ NZ PNGNEWSSPEAustraliaSPEAustraliaIssue 128September 2009ISSN 1449-8545◆ ◆ NZ PNGNEWSSPEAurukunCoenHughendenLongreachQuilpieIssue 129October 2009ISSN 1449-8545BarcaldineCharlevi leCooktownCairnsCharters TowersBlacka lAustralia◆ NZ ◆ PNGNEWSTownsvi leMoranbahRomaBowenDysartMackayTaroomWandoanMilesAustralia, New Zealand and PNG SectionsSPEIssue 130November/December 2009ISSN 1449-8545EmeraldMouraSurat Basin – Jurassic/Cretaceous ~10–20 mi lionBowen Basin– Permian ~30 mi lionRockhamptonChinchi laGladstoneAustraliaNEWSBundabergMaryboroughGympie◆ NZ ◆ PNGOmicronBRISBANEwww.spe.orgJanuary/February 2010 SPE NEWS 9

AOGAOGAOG previewThe 2010 Australasian Oil & Gas Exhibition andConference (AOG) will encompass many aspectsof the oil and gas industry.AOG 2010 will feature specifi c zones focusingon core components of the industry, including:Subsea Technology, Drilling and DownholeTechnology, Education and Research, Innovation,and Health & Safety. Exhibition organiserDiversifi ed Exhibitions stated the programwill include a series of seminars, forums andworkshops, plus ample opportunities to networkand a careers day.“AOG 2010 is really shaping up to besomething special and is cementing itselfas the must attend event for the oil and gasindustry in Australasia. The extraordinaryexhibitor interest is quashing fears that globalfinancial turbulence would see a decline inindustry involvement”, said Exhibition DirectorBill Hare.“AOG 2010 will be the one-stop-shop formembers of the oil and gas industry seekingA shot from AOG 2009.solutions, inspiration, education, and access tothe cream of the international and local crop.With new feature areas scheduled, a careersday and associated conference, AOG 2010 isaddressing the diverse needs of the oil and gasindustry in Australia.”Diversified stated the Subsea Zone hasgrown by 30%, and will feature more than 60specialist manufacturers and service providers,including FMC, GE Oil & Gas, DOF Subsea,Fugro Survey, Neptune Marine, TSMarine, AkerSolutions, and INTECSEA Worley Parsons. ◆10 SPE NEWS January/February 2010www.spe.org

AOGGeophysics and geohazardsDefining subsea engineering riskThursday 25 March 2010Meeting Room 6, Perth Convention Exhibition CentreTime Presentation Title Presenter Job Title Company8.30 Welcome and Introduction Chair: Jim Leven Secretary Subsea Energy Australia8.40Keynote AddressDo We Have Adequate Site Survey Data for Jack-upInstallation and Location Approval?Paul HandidajaHead of GeotechnicalDepartmentBraemar Falconer9.00The Use of Swathe Bathymetry Data as a Guide to theEarly Identifi cation of Potential Geohazards:Examples from the North Carnarvon Basin, WAJulie Gale andKevin DayGeohazards InterpreterGardline Marine Sciences9.30Effective Assessment of Top Hole Drilling Hazards forDeep Water Wells Using 3D Seismic DataStephen Wardlaw Business Development Consultant10.00Integrating Geophysics and Geotechnical Data toEnhance Engineering Foundation DesignMagnus McNeil-WindleSenior PrinicipalGeophysicistAdvanced Geomechanics10.30 Coffee Break11.00Seismic Performance Evaluation of a Submarine GasPipeline, Pluto Gas FieldDr Elio NovelloPrincipal GeotechnicalEngineerURS Australia11.30Drilling Geohazards Constraints on the NWSAustralia—A Woodside PerspectiveSheila MackaySenior Wellbore GeohazardAnalystWoodside12.00 Lunch13.30The Use of Frequency and Time-Domain CSEM Data forMarine Hazard MitigationDr Maxwell Azuka MejuEM ResearcherFormerly LancasterUniversity, UK14.00Using a Four-Sensor Magnetic Gradiometer to IdentifySmall WW11 Ordnance in Caution Bay, Papua New GuineaNicholas Smith Senior Geophysicist Fugro Survey14.30 Coffee Break15.00The Need for QC on Geophysical Interpretation forGeohazards and Engineering Site SurveysJeremy Tung and Tim Pugh Site Investigation Manager RPS Energy15.25Enhanced Coastal Geotechnics with Integrated MarineSeismic Refl ection and Multi-Source, Extended ArrayRefractionDr Bob WhitelySimon StewartSenior Principal,GeophysicistCoffey Geotechnics15.50Research Underway at Centre for Offshore FoundationSystems (COFS)Professor David White andProfessor James HengeshUWA16.15Seismic Refraction Surveys as a Geohazard Techniquefor Infrastructure InvestigationsJim Anderson Principal Geophysicist Fugro Survey16.40 Wrap up and closewww.spe.orgJanuary/February 2010 SPE NEWS 11

AOGSubsea Australasia ConferenceThe Subsea Australasia Conference, runningin conjunction with AOG, is expected to attractaround 450 delegates and will feature a programencompassing both technical and businessstreams.The conference, a joint initiative betweenSubsea Energy Australia (SEA), Subsea UK andthe Society for Underwater Technology (SUT),will open with a half-day seminar forecastingthe potential for growth in the Australasiansubsea market, what factors might limit growthpotential, and how these factors will impacton business development opportunities in theregion.In one of six seminars, SEA and Subsea UKwill provide an overview of upcoming subseaprojects in Australasia, asking leading oil andLast year’s subsea conference.gas operators to outline their plans in theregion.“At a time when many oil and gas centres aroundthe world are contracting, Western Australia’sindustry is developing rapidly, with offshoreprojects such as Pluto, Gorgon, Ichthys, Preludeand Browse set to have a signifi cant impact onthe state’s economy. This half-day seminar willexplore such projects and discuss the diverseopportunities they are likely to provide to smalleroil and gas service companies”, commented BillHare, Exhibition Director.The conference will also incorporate technicalseminars on topics including systemsengineering, long-distance tiebacks, geophysicsand geohazards, and subsea technical challengesin Australasia. ◆12 SPE NEWS January/February 2010www.spe.org

Young ProfessionalsYoung ProfessionalsTaking the plungeGlimpsing the bustling streets below as heedged along the platform of the world’s highestbungee jump, engineering student Derek Cheungquestioned his own sanity. Cars had mergedinto slowly moving specks and the city of Macauappeared to have shrunk into a tiny toy townwith traffi c noise reduced to a low, distant hum.Throwing yourself off a 233 m high buildingconnected only to a cable seems a fairly radicalapproach to cure a fear of heights! However, itseems a well-suited approach for a prospectivegraduate intent on plunging into the world ofsubsea engineering.Cheung’s family migrated from Hong Kong toPerth 20 years ago after his father had taken upa doctor’s residency at a local hospital. Cheungrealised he was to break from the family traditionof entering medicine fairly early, recalling hisfascination with construction sites as a smallboy.“I’ve always been really interested inconstruction projects—I’d get quite excitedwhenever I saw anything of a large scale beingbuilt”, he said.“I was also told that with engineering you get totravel to overseas countries, experience differentcultures and immerse yourself in a variety ofworkplace environments, which all infl uenced mydecision to follow this career path.”Cheung attended Christ Church Grammar School,where as well as excelling during swimmingcarnivals, he displayed a talent for science andmathematics, further cementing his decision toundertake a Bachelor of Engineering.Cheung takes the plunge.Now completing his fourth year at the Universityof Western Australia (UWA), Cheung is thrilledto be working on his thesis in collaborationwith Neptune Marine-owned subsidiary SubseaDevelopments Australasia (SDA) and UWA.“It’s a great opportunity to be able to activelywork on a joint industry program”, he observed.“I took the idea back to university and theywere really keen on the project. In a nutshell,I’m using state-of-the-art computer analysissoftware to assess the structural integrity ofdamaged subsea pipelines to resolve whether ornot immediate action or repair of the pipeline isrequired.”The opportunity arose as a result of a 12-weekvocation program at Neptune Marine, which waswhere Cheung began to get a real taste of theoffshore oil and gas world.“That was my first trial of a vocation program,so during the first four weeks I was rotatedaround all the different subsidiaries in NeptuneMarine to gain a real understanding of thecompany”, he said. “I was down in Fremantleworking for Sea-Struct for a while, then I waswww.spe.orgJanuary/February 2010 SPE NEWS 13

Young Professionalsworkplace is like and whether you can seeyourself working in this particular industry in thelong term.“The people here are great, they’re veryknowledgeable, so when I have questionsregarding my thesis I can go to the differentexperts within my division and ask for theiradvice, something which you simply wouldn’thave access to as a student.”Cheung highly recommends students gettingpractical industry experience and establishingnetworks as soon as possible.“Organisations such as SPE and SUT areinvaluable for students as they provide excellentopportunities for networking”, he said. “As wellas offering events such as sundowners and golfdays where you can meet and greet your industrypeers, they put on a variety of workshopsand presentations—I even heard they offerscholarships for further education”.Cheung is positive about the future forengineering graduates based in WesternAustralia, with the economy set to reap thebenefits of massive LNG projects such asGorgon.“It defi nitely slowed down due to the GFC, withcompanies taking on less vocation workers andcutting some graduate spots, but I think it willpick up with the new projects which is going toexcite a lot of work scope with positions needingto be fi lled.”With bright times ahead, Cheung is focused onlearning as much as possible, setting himself upfor a career in which he can make his way up thecorporate ladder.Cheung at the Neptune Marine office.“I’ll learn at the moment as much technically-basedstuff about the subsea oil and gas industry, andhopefully later on I’ll do an executive MBA andslip into senior management—that would begreat.with Link Weld in the fabrication yards andfinally back to SDA where I enjoyed the workmost of all.“After the 12 weeks I was asked to work casuallya couple of days a week in the offi ce, and I alsoenquired about doing my thesis as an industryjoint program with UWA and Neptune Marine—I’m now halfway through so there’s just anotherfew months to go.”14 SPE NEWS January/February 2010While Cheung is fi nding the routine offi ce hoursthe most challenging part of his transition fromstudent to engineer, he’s quickly adjusting.“This opportunity to work as an undergraduatehas been extremely insightful, as I have beenable to integrate steadily over my fi nal yearfrom the classroom to the workplace”, hesaid. “That is why vocation work has becomereally important, as you get a feel of what the“I’m really looking forward to the travellingcomponent as well. Neptune has overseasoffices in Singapore and Houston; they’re eventapping into India and China now, so there’slots of good travel opportunities. I’m also reallyinterested in getting hands-on experience onthe offshore oil and gas platforms and vesselswhere I’ll be able to see the North West Shelfof Australia.www.spe.org

Young ProfessionalsOil-operated Cliffhead Platform pipeline, andinvestigated different scenarios for the useof the newly developed Smart Plug pipelinetechnology—not bad for a student!His Neptune colleagues appear to matchCheung’s energy levels, frequently meeting forearly morning swims prior to work or competingin community sporting events.“Everyone here is really sporty—a fair few ofthe boys go surfing in the morning together”,he said.Cheung hard at work at Neptune Marine.“One of the great things about this job is themystery and excitement attached to whatyou’re going to do next. For example, one of theengineers at STA got a call just recently and wasgiven a three day turnaround to pack up and headto Aberdeen for a few months. If that’s what youlike, this type of industry is absolutely perfect.”Cheung believes being proactive is important.“You have to take the initiative sometimes toapply for the companies”, he observed. “Don’twait for them to come to you and give theirpresentation and advice. Call up HR and soundreally energetic and excited at the prospect ofworking for them. If they can feel that from you,they’ll be a lot more likely to take you on as astudent for vocation work.Cheung has also recently been awarded a studygrant for his work on developing the EmergencyPipeline Response Service (EPRS), which is aprogram designed to be used in the event ofemergencies, such as what recently occurred onthe West Atlas rig.Cheung is grateful to Neptune for allowing himinvolvement in day-to-day operations. Alreadyhe has assisted in wave checks on pipelinesfor the Pohokura gas fi elds operated by Shell,researched the structural integrity of the Roc“Neptune gets behind a lot of corporate events,such as the BRW Corporate Challenge for whichwe entered a team to take part in the triathlon.We’ll also defi nitely be entering a team in thisyear’s Rottnest Channel Swim as last year wemissed out entries by one week because ofexams.”Cheung has not negotiated further work withNeptune but is open to the possibility ofcontinuing with the company; alternatively, hemay travel overseas before settling intofull-time working life.No matter which direction he ends up taking,travel and adventures will no doubt make up partCheung’s future. Oh, and just for the record—thatdeath-defying bungee jump did cure his fear ofheights! ◆“Also, get as much vocation work as possiblebecause at the end of the day employers do lookat your grades and work history, so the more youhave the better chance of getting that job thatyou want down the track.”Cheung evidently follows his own advice. Aswell as initiating the joint industry projectbetween Neptune Marine and UWA for histhesis, he and another undergraduate engineerworking at Neptune have become involved inEngineers Australia’s new public awarenesscampaign, ‘Make it so’. The campaign isaimed at changing the way Australians thinkabout engineering and increasing communityawareness about engineering by getting thepublic involved.www.spe.orgPartying with friends.January/February 2010 SPE NEWS 15

Subsea SpotlightThe Media JungleAdvertorialThe Media Jungle has produced over 200animated fly-throughs for numerous companiesworldwide. From 45-second project-basedscenarios to detailed animated induction DVDs,we have been in operation since the late 1990s.Managing Director Steve Nichols is a geologistby profession, and possesses an understandingof both data and presentation requirements.Having worked in geoscientifi c data visualisationfor over 20 years, Nichols is familiar with a rangeof data formats, a myriad of software packages,and has experience with projects worldwide.We have completed major projects with OMVNew Zealand (the offshore Maari project),Woodside (the offshore Pluto and Angelprojects), CTC Marine (Angel), and Chevron (theoffshore Gorgon project), as well as a host ofother projects both on and offshore.We were commissioned by McDermott Industriesto produce an animated 17-minute induction DVDwhich was distributed to over 1,000 employeesand family. The DVD showcased the variousfacets of the installation and hook-up of the Plutojacket on the North West Shelf.With a library of 3D models, a team of trainedstaff, and a genuine passion for what we do, TheMedia Jungle is up to any challenge and willdeliver on time and on budget. We are alwayslooking at broadening our skill-base and ourproduct; at present we are experimenting withthe production of 3D stereo animations, allowingviewers to become fully immersed in theirenvironments. This will take our presentationsto a new level—we are currently looking for asponsor project to achieve this.We also have access to fi lm crews, scriptwritersand voiceover artists should the need for a morecorporate perspective be required. We keepour costs reasonable, with a high turnover ofprojects and low overheads. Most companiesThe Media Jungle visualisations.are surprised that a 3-minute project-basedfl y-through can be completed for as little as$10,000.Our product can be as simple as a poster. It canbe a short fl y-through destined for insertionin PowerPoint and played to audiences inconjunction with more detailed corporate andtechnical information. We can produce authoredDVDs containing chapter menus, voiceover andbacking music tracks. We routinely provideanimated sequences for upload to websites forglobal dispersal of information.We invite anyone to contact us should they wishto discuss their requirements in detail.www.themediajungle.com.au ◆16 SPE NEWS January/February 2010www.spe.org

Drilling AheadDrilling AheadNew third generation rotary:Shouldered connections provideimproved performance and cost-savingby James Brock, NOV Grant PridecoIntroductionStart Thread 1Since the industry fi rst began rotary drilling,wells have continued to become morechallenging, comprising greater total depth,further extended reach, deeper water and areaswith increased environmental sensitivity, aswell as various formation challenges reachinghydrocarbon targets. Drill string componentshave evolved as well, enabling operators tomeet these challenges. The current trend to drilloffshore in deeper waters, longer extended reachand record setting ultra-deep wells continues.Some operators have wells of 40,000–50,000 TMDin the planning stages. Over the last 40 years,rotary-shouldered connections have experienceda continuous evolution, driven by the industry’sadvancement of drilling deeper, further andmore cost-effective wells. The development ofrotary-shouldered connections has been a keyenabling technology, providing the mechanicaland hydraulic performance required to drill morediffi cult and complex wells.TurboTorque ®• 4 revolutionsStart Thread 2Start ThreadeXtreme ®Torque• 13 revolutionsThe TurboTorque connection, a new third-generationdouble-shouldered rotary connection, wasannounced and released in September 2006at the SPE Annual Technical Conference andExhibition. The connection saves time, cuts cost,increases torque capacity, optimises hydraulics,improves clearance and fi shability, reduces riskof failure, and extends life. To put this newconnection into perspective, here's a review ofthe evolution of high-torque rotary shoulderedconnections.The evolution of premiumrotary-shouldered connectionsFig. 1.Pressure, psi25,00020,00015,00010,0005,00007” x 4-½’ Gas-Tight 3 rd Gen. DSCISO 13679 CAL III Series A Test Load PointsA primary parameter in the design anddevelopment of API rotary-shoulderedconnections was make-up and breakoutcharacteristics. Generally, connections hadsteep tapers and large pitch (course threads)for favourable running characteristics. Steeptapers provide a connection that is deep stabbingand self-centring. Self-centring provides betterFig. 2.-5,000-10,000-15,000-200,000 0 200,00 400,000 600,000 800,000 1,000,000 1,200,000Axial Load, lbwww.spe.orgJanuary/February 2010 SPE NEWS 17

Drilling Aheadvertical alignment. The deep stab and increasedlead reduce the number of turns required toadvance the connection from the stab positionto complete make-up. Tool joint OD and IDdimensions were sized to provide the neededtorsional strength. In this article, pitch refers tothe axial distance from one thread to the nextthread and lead refers to the axial distance thepin is advanced into the box with one revolution.Often pitch and lead are used interchangeably fora single-start thread type. Lead and pitch will bedifferent for a double-start or twin-helix threadtype.HI-TORQUE ® , the fi rst generation premiumrotary-shouldered connection, was developedin the late 1970s. The HI-TORQUE ® connectionincorporated the same thread body parameters(i.e. pitch, pitch diameter, thread form and taper)as similar sized API, NC and FH connections. Thisallowed existing gauges and tooling to be usedin the manufacturing process. An internal torqueshoulder provided approximately 40% additionaltorque capacity and a fl ush ID. Extended pin baseand box counterbore were designed to controlthe division of torque between the internaland external torque shoulder. Compared to APIconnections, the additional torque capacityprovided by the second shoulder allowedfor more fl exible tool joint confi gurations.Confi gurations could target higher operationaltorque, greater OD wear allowance, and/orslimmer connection profile (smaller tool joint OD,larger tool joint ID), depending on the needs of thespecifi c application.The second generation premium rotary-shoulderedconnection, eXtreme ® Torque, was developed inthe mid-1980s. By eliminating the restrictions ofusing the API thread body, the eXtreme ® Torqueconnection further optimised the double-shoulderdesign. Reducing thread height and fl atteningthe taper allowed the torque shoulder areas tobe increased. Further, the thread length could bedesigned to maximise torque shoulder size whilemaintaining the needed thread shear and bearingareas for tensile capacity. The custom thread formfeatured a larger root radius, reducing stress andincreasing fatigue life. Similar to the HI-TORQUE ®connection, the extended pin base and boxcounterbore elements allowed the make-uptorque to be properly proportioned betweenthe internal and external torque shoulders.The eXtreme ® Torque connection provided anapproximate 30–85% increase in torque capacitycompared to API connections depending onsize. This additional torque capacity providedthe same tool joint confi guration fl exibility asthe HI-TORQUE ® connection but to a largerdegree. The greatest benefi t derived from useof the eXtreme ® Torque connection was that itmade possible to switch to the next largest pipesize while maintaining fi shability. It permitted3½” drill pipe to be replaced with 4” drill pipe,greatly increasing hydraulic performance,torque capacity, and drill string stiffness. Withthe development of 5 7 /8” drill pipe, this secondgeneration connection allowed operators toreplace 5½” drill pipe and gain the ability toextend well depths and step-outs.Development of TurboTorque ® ,the third generationrotary-shouldered connectionThe eXtreme ® Torque connection satisfi ed theneeds of the drilling industry for nearly twodecades. As economically viable reservoirshave become more elusive, operators have beenforced to drill deeper wells in deeper water,requiring drill stems with higher torque capacity.Growth of horizontal, ERD and ultra-ERD wellshave required drill stems to deliver higherhydraulic horsepower to drive motors and provideadequate hole cleaning. Finally, as rig day-ratesand other operational costs increase, combinedwith increased well TMD, the drill stem’smake-up speed and related tripping time areever more important. To answer these needs,the industry’s fi rst family of rotary shoulderedconnections was developed in the early 2000s.The development of TurboTorque ® , thethird-generation double-shouldered rotaryconnection, resulted in further refi nement andoptimisation of rotary-shouldered connectiondesign. Typically, the development of newconnections has been targeted and optimisedfor the most popular pipe size, and then thedesign criteria is extrapolated to the other pipesizes. This connection is unique in that it is theindustry’s first rotary-shouldered connectiondesigned to meet the different needs of eachpipe size. As a result of this unique approach,the product line is composed of a family of fourdistinct connection designs, each optimisedto meet specifi c requirements—whether highertorque, improved hydraulics, or speed of make-up.Historically, drill pipe tool joints have beenmade from steel, with a specifi ed minimumyield strength of 120 ksi. TurboTorque ®connections are engineered for use with 130ksi tool joint material. The higher yield strengthand optimisation of the connection’s pitch,taper, thread height and thread length alloweddesigners to provide increased torqued capacitycompared to previous designs. Additionally,the tool joint profi le can be confi gured to meetapplication-specifi c needs such as maximisingthe ID for tool passage and increased hydraulicperformance, providing additional tool joint wearcapacity to extend drill pipe life, or permittingthe running of the next largest pipe size withoutloss of fi shability.Compared to API connections, the eXtreme ®Torque connection’s slow speed of make hadbeen a major disadvantage. To correct thisproblem, the TurboTorque ® connection is theindustry’s fi rst rotary-shouldered design toincorporate a double-start thread (see Figure 1).Double-start threads have been used in casingconnections for decades. Dual threads, 180°apart, form a double helix and reduce the numberof turns to make-up, the connection from stabto shoulder, by 50%. The doubling of the threadlead increases the thread lead angle, providingan increase in the connection’s torque capacityof 12%.The TurboTorque ® connection has had a positiveimpact on rig fl oor operations. Higher tool jointyield strength allowed the optimisation of theconnections taper and thread height to increasestabbing depth, further reducing the number ofSince its release, theTurboTorque connection hasbeen deployed in a number oflocations, including:• Chevron, GOM: 5.875” 26.30# S-135R2 TurboTorque 585• Shell Oil, GOM: 5.875” 23.40# S-135R2 TurboTorque 585• ENI-GOM: 5.875” 26.30# Z-140 R2TurboTorque 585• Shell Oil, GOM: 5.000" 19.50# R2S-135 TurboTorque 526• Shell, GOM: 3.500” 15.50#, S-135 R2TurboTorque 380• Apache, North Sea: 5.500” 21.90#S-135 R2 TurboTorque 550• COR ,Vietnam: 4.000” 14.00# S135T R2TurboTorque 390• Chevron, GOM: 5.875” 26.30# S-135R2 TurboTorque 585• Chevron, Nigeria: 5.500”21.90# S-135TurboTorque 55018 SPE NEWS January/February 2010www.spe.org

Drilling Aheadturns to make-up. The deeper stab depth providesincreased stability, as the pin connection is fi rstrotated, reducing the chances of cross-threading.Additionally, deeper stab increases operatorsafety by reducing the likelihood of creatingpinch points.Development of TurboTorque ® -M,the third generationdouble-shoulder pressure-ratedconnectionAfter the introduction of the TurboTorque ®connection, a project was commissioned todevelop a gas-tight version with the abilityto seal high pressures—the key objectiveof the project was to provide a gas-tightseal up to 20,000 psi internal and 10,000 psiexternal pressure, while maintaining all of theperformance characteristics and primary benefi tsof the non-gas-tight version.The primary seal is a 15° radial metal-to-metalseal on the pin nose, while the external shoulderprovides a secondary seal. The secondaryinternal shoulder acts as a torque stop and isnot considered a pressure seal. This permits theconnection to be racked back on the pin noseduring tripping operations without concern aboutdamaging a sealing surface.Interference is one of the controlling factorsin the effectiveness of a radial metal-to-metalseal. Optimising the seal interference is of primeimportance in order to ensure adequate contactstresses at the sealing surfaces. Insuffi cientinterference will adversely affect the connectionsealing capability, while excessive interferencecan cause galling.Other design parameters of the gas-tightconnection, such as double-start threadsreducing the number of turns to assemble theconnection by 50%, dual-radius thread formincreasing connection fatigue performance,optimised taper, thread pitch and materialstrength, are identical to those found on thestandard TurboTorque® connection.The seal design and validation process includedsignifi cant computer analysis. Numerous fi niteelement analyses (FEA) were performed to verifythe stress distribution in the connection and tooptimise the seal interference and other designparameters.The interaction between the mating threads,shoulders and seals was simulated by imposinginterferences at the shoulders and seals. Theresulting forces were reacted at the load fl anksof the threads. A friction coeffi cient of 0.08 wasutilised in the analyses. Linear interpolation wasused to calculate the incremental step-time andshoulder interference at the desired make-uptorque values.The following four connection confi gurationsrepresent the extremes of manufacturingtolerances that can affect connection sealingcapability. FEA analyses were conducted for allfour cases:• Minimum seal interference/minimum initialclearance at the internal shoulder;• Maximum seal interference/minimum initialclearance at the internal shoulder;• Minimum seal interference/maximum initialclearance at the internal shoulder; and,• Maximum seal interference/maximum initialclearance at the internal shoulder.The FEA results verifi ed that the dimensions andtolerances selected would provide stress stateswell within the material capabilities.The TurboTorque ® -M connection testingprogram consisted of multiple make-and-breaks,followed by combined loading tests. Multiplemake-and-break testing was performed todetermine connection and, more specifically,radial metal-to-metal seal gall resistance.No damage or galling was observed on thethreads, shoulders, or radial seal surfaces aftersubjecting the connections to 100 make-andbreaksat the maximum recommended make-uptorque.The combined load test program was developedusing the methodologies presented in ISO13679, Procedures for Testing Casing andTubing Connections. More specifically, ISO13679 CAL III Series A and C procedures wereused for determining pressure and axial loads,and load sequence, as well as hold time ateach load point. Series A qualifies a connectionwithin its service load envelope defi ned by axialloads and pressure at ambient temperature (seeFigure 2). The test starts at the zero tension-zeropressure point, and follows the load points inthe counter clockwise and clockwise directionsseveral times. Series C qualifies a connectionby cycling at elevated temperatures between125°F and 275°F within the first quadrant of theservice load envelope, i.e. tension and internalpressure.Two connection confi gurations identifi ed throughFEA modelling as worst case confi gurationswere selected for testing: sample 1 exhibitedmaximum seal interference and minimuminitial clearance at the internal shoulder, whilesample 2 was manufactured to minimum sealinterference and maximum initial clearanceat the internal shoulder. The samples weremachined from material produced on the lowerend of the 130,000 psi SMYS range.Bypass holes were drilled in the box counterboreand the minor diameter of the pin nose. This wasdone to avoid any sealing effects on the externaland internal shoulders, and to simply test theradial metal-to-metal seal. The samples werethen made up to their minimum recommendedmake-up torque and installed in a combined loadframe for testing.An external pressure chamber was designed andmanufactured for this test. The test apparatuswas constructed so no leak path was presentfrom the interior to the exterior pressurechamber, and vice versa, other than across thetested connections. Nitrogen gas was used toapply the internal and external pressure. Fillerbars were placed inside the samples to reducethe amount of gas needed to reach test pressure.Both samples underwent the discussed testprogram and passed without incident. No leakwas observed in any of the tests.Future benefits and applicationsfor TurboTorque ® -MProviding the durability and resistance tohandling damage similar to a conventionalrotary-shouldered connection, this gas-tightconnection provides higher pressure ratings fortoday’s demanding applications, a double-startthread to reduce tripping times and associatedoperating cost, a reduced profile for increasedhydraulic performance while maintainingfishability, and a fatigue-resistant thread formto extend life and reduce the risk of failure.TurboTorque ® -M connections are ideally suitedfor high-pressure completions, drill stemtesting operations, high-pressure workoveroperations, underbalanced drilling operations,and intervention riser applications.Higher pressure completion operations are onepotential application. Well depths approachingwww.spe.orgJanuary/February 2010 SPE NEWS 19

Drilling Ahead30,000 ft, such as Chevron’s Tahiti project, createchallenging conditions for high-pressure, subseacompletion operations. Subsea completionstrings must provide effi cient hydraulics duringthe fracturing operations while ensuringmechanical and pressure integrity to highabsolute pressures during screenout.Underbalanced drilling has become more widelyused in recent years because it results in lessformation damage in the production zone andcan yield increased penetration rates. Safetyissues have been the primary deterrent inunderbalanced drilling, however techniquesand equipment have become available toaddress these problems. The safety aspectsof underbalanced drilling require that the tooljoints seal external pressure as well as internalpressure. One major operator specifi ed a sealingcapability of 5,000 psi external gas pressure in atool joint for 3½” pipe.The number of subsea installations around theworld is increasing signifi cantly as oil companiessearch for hydrocarbon reserves located indeeper and more diffi cult waters. There arecurrently over 2,000 subsea installations in placeglobally. This number is expected to at leastdouble during the next fi ve years. For optimisedproduction from subsea installations, it isnecessary to make intermittent interventions tomake repairs, replace equipment, exploit otherproducing intervals, and eventually plug andabandon these wells in accordance with variousoffshore regulatory requirements around theworld. Due to the expense involved in subseainterventions, and the resultant lost productionand revenues, offshore asset managers arelooking for alternatives that will maximise theirreturn on investment. In a number of subseawells it is a common practice to delay or forgointerventions, which results in less productionover the life of the fi eld. According to one source,typical platform wells recover approximately57% of the oil in-place compared to only 35%of reserves for subsea wells. The reason for thissignifi cant difference is the comparative easeand reduced expense involved in performinginterventions on platform wells.Purpose-built intervention riser pipe withTurboTorque ® -M connections provides analternative method for subsea intervention.The drill pipe intervention riser will provide thefollowing benefi ts:• Rugged and robust: the connection canwithstand multiple make-up and break-outcycles without experiencing galling or otherdamage. With proper handling procedures,well over 100 cycles can be achieved beforerepair or re-cut is required;• Pressure integrity is not affected by multiplemake-ups;• Use of conventional drill pipe handlingequipment accommodates relatively fast,pick-up, make-up, running and trippingspeeds; and,• Drill pipe-based intervention risers simplifylogistics and equipment since standard slips,elevators and other rig equipment can beutilised.The third generation TurboTorque ® andTurboTorque ® -M connections will enableoperators to meet current and future challengesby providing improved performance, safety andcost savings. ◆20 SPE NEWS January/February 2010www.spe.org

Drilling-the-Limit—Hybrid coil over top drivedrilling technologyDamir Horvat, Well Engineering Manager, Arrow Energy/Shell JVDrilling AheadDamir Hovat recently visited operators acrossCanada and the US to investigate some of thenewest drilling and completions technologies,including third-generation hybrid CT rigs.IntroductionCoiled tubing (CT) drilling has its roots inCanada. In 1997, Fleet Coil Technologies, adivision of Plains Energy Services, brought aprototype rig into Canada from the US. That rigdrilled over 200 wells during the first year ofoperations.By 2000, CT drilling was fully commercial forCanadian shallow hydrocarbon drilling. Sincethen, Canada has moved from drilling a coupleof hundred wells to drilling several thousands ofwells a year with the next generation hybrid coilover top drive (COTD) drilling technology.The first attemptsWith the fi rst generation CT rigs, handling ofbottom-hole assembly (BHA) was slow andawkward. Because of the critical time that canbe saved, effi cient switchover from top driveto coil is critical. This has lead to combiningthe two in next generation hybrid COTD drillingtechnology.Drilling in CT mode. Average ROP @ 202 m/hr. Location ~90 km northeast of Calgary. Drilling contractor,Nabors Canada; Operator, Apache Corporation.Realising the potentialThe new generation hybrid unit injector systemsare adapted to crossover and stab into the BHAusing a dimple connector attached to the CTstring. The real beauty is that multifunctional topdrive makes up the BHA and can also run casing,conventional drill pipe, or even completions.Third generation—Hybrid CT rigsThe latest hybrid COTD drilling units can nowdrill as effi ciently with variable frequency drivesystems, automated pipe handling systems, andas fast or faster, than most conventional rigs intop drive mode. New drilling control softwarealso adds value to the use of COTD units. Manybasins often feature multilayered formations,with abrasive stingers interbedded withmedium-to-soft formation properties. NewNabors Canada hybrid CT unit#92. From left: Owen Martin, Nabors Rig Superintendent, and Damir Horvat.Operator, Apache Corporationgeneration drilling software functions likeauto-drilling technology, automatically holdingback weight on the CT string before it runs intoproblems. Basically, it allows you to drill withoptimum weight-on-bit (WOB), but you’re nolonger injecting and buckling the CT string.www.spe.orgJanuary/February 2010 SPE NEWS 21

Drilling AheadAnother hybrid CT unit. Unconventional reservoir CBM plays 650 m TD. Injector, Stewart & Stevenson—maximumcapacity 110,000 lb w/snubbing capacity 60,000 lb, 3-1/2” CT string. Drilling location: 150 km northeast of Calgary.Drilling Contractor: Technicoil Corporation, hybrid CT unit#2120; Operator, Devon Energy.Nabors' hybrid CT unit in the CT drill mode. From a safetystandpoint, there is no human interface; as shown, youcompletely clear the drill-floor of personnel when drillingin CT mode.It allows you to set up a range of drilling andformation parameters based on localisedknowledge of the formation properties, and,most importantly, it can react much faster thana human can. In this fashion you don’t stall themotor, nor buckle the CT string. The advent ofrigless completion in unconventional plays isanother driver in hybrid CT service roles. HybridCT units can perforate wells and do drill-outswhich were typically conducted by conventionalservice rigs. In the past, the well tractor hasbeen the main method of deploying directionaltool packages—however, the limitation ofthe tractor is wellbore integrity. For example,if wellbore trajectory includes any steepinclinations or deviations in the well path, thetractor has a tendency to 'spin-out' and depthsmay not always be achieved. With coil, youhave the ability to use force from the surfacethrough the injector head, thus you don’t relyon wellbore integrity for the ability to moveforward.On the other side, the busiest individual hybridCT unit during 2007 was Trailblazer DrillingCorp’s rig#19, which managed to drill 295wells and 201,310 m of hole over the 12 monthperiod. This is certainly drilling technologywithout borders! In fact, from the beginningof 2000 to the end of 2007 more than 30,000wells have been drilled in Canada using hybridCT technology, proving that hybrid CT rigs areno longer a fad or curiosity but have become aprimary service and a key technology in shallowoil, gas, and especially CBM drill-to-completeapplications.On the left, Eugene Murphy, Investment Principal, Kenda Capital, manager of Shell Technology Ventures—at the KendaOffice in Houston Damir and Eugene have a discussion about hybrid COTD drilling technology.22 SPE NEWS January/February 2010Hybrid CT advantages are:• Flexibility to drill with coil and/or conventionaldrill pipe from spud-to-completion;• Two rigs in one—smooth transition torequired drilling mode;• Ideal for underbalanced drilling andcompletion or controlled pressure drillingapplication;• Can snub if required;• In CT mode no surging and swabbing ofwellbore;• Proven to out-drill conventional three-to-onein Canadian unconventional reservoirs;• Faster penetration rates—coil up to 420 mper hour vs conventional 120 m per hour;www.spe.org

Drilling AheadDepth (m)Hybrid CT/TD Rigs: Typical Drilling PerformanceNabors Hybrid Top Drive/Coil Tubing Rig: Sample WellsHours-10 0 10 20 30 40 50 60 70 80 90 100 110 1200Nabors 1500m Hybrid Coil200Tubing/Top Drive Rigs400Activity Drilling-the-limitPerformance600Well depths110m to 1480m800(360’ to 4900’)Various well designs and1000applications1200Copyright Nabors Canadato join pipe together in the same fashion as ahybrid CT unit.In a typical drill-to-complete scenario, witnessedby the author in Canada, with the hybrid CT rigsyou drill your top-hole (surface casing section),with jointed pipe, with your top drive. That mightbe to 100–170 m. Then you’ll set 9 5 /8” surfacecasing and make up your new BHA with your topdrive. From there, you switch/connect to the CTmode and drill a 7 7 /8” hole section to TD, usually600–800 m. Post-drill-in phase, if underreamis required it can be done safely using jointedpipe on the hybrid CT unit. In this fashion you’reable to run all type of underreamers, bicentric oreccentric bits, respectively.14001600Hybrid CT/TD rigs: typical drilling performance.Depth (m)Hybrid CT/TD rigs: typical drilling performance.Hybrid CT/TD Rigs: Typical Drilling PerformanceHours from spud-12 -6 0 6 12 18 24 30 360100200300400500600700800-0.5 0.0 0.5 1.0 1.5Days from Spud• Average tripping is three times faster—coil900 m, conventional 300 m per hour;• No service rig or crane required;• Faster rig-up and rig-out—no cranes requiredon any rig. Usual rig-up in 2–4 hours andrig-out in 1–2 hours;• Lower costs for E&P operators—the drillingcomponent can be reduced as much as 50%.The author believes the current LNG potentialfor hybrid CT rigs in Australia is huge—this isa view shared by Shell Technology Ventures,700 m (2300’) Shallow Gas Production Well #1Nabors Hybrid Top Drive/Coil Tubing Rig #87Copyright – Nabors Canada• HSE mtg, rig move, rig-up, :8 hr• TD Drive drill 200 mm (7 7 / 8”)• HSE mtg, run & cmt surface casing: 3.25 hr;WOC, NU, PT, drill out: 7.25 hr• CT drill 159 mm (6¼”) main hole to 710 m(2300’): 4.75 hr• HSE mtg, run & cmt Prod csg, tear down:4 hr• TOTAL: 25 hr from spud, 32 hr including rigmoveNabors Canada and Xtreme Coil DrillingCorporation. The hybrid CT technology can bevery cost effective and effi cient if used within itslimitations. With the hybrid CT technology, thetypical spud-to-completion cycle is 37 hours. Thetypical difference between hybrid vs non-hybridCT rigs is, for starters, a non-hybrid CT unit byitself doesn’t do anything beyond drilling. Oncea hole is drilled, the casing has to be run andcemented—problem is, you can’t rotate the coil,so you have to put a mud motor down the well. Itis hydraulically limited. A rotary rig can continueWell construction in CT mode—typical well profiles (vertical)200 mm to 216 mm (7 7 /8”-to-8.5”) hole:• PDC bit: 4 or 5 blade (e.g. Hughes HC605Z);• Down-hole motor: 158 mm (6¼”) low-to-mediumspeed, 100–200 rpm, low torque;• Motor operating parameters:- WOB: 3–10 daN (7–20 klb)- Flow: 1.2–1.5 m 3 /min (320–400 gpm)- Typical maximum torque (NOV, 6¼” 7 /8 M/L4.8 Stage, full load): 6,500 Nm (4,800 lb-ft)ConclusionThe drilling control software allows precisecontrol of the drilling parameters andfacilitates aggressive, yet controlled, hydraulicsoptimisation when drilling in CT mode.The typical 6¼” down-hole motor will stall(6,500 Nm) at about 90% of the torque limitsof the 2 7 /8” QT-700 coil (7,300 Nm). In closing,from a safety standpoint, once you’re in CT drillmode nobody is around—that is, rig personnelare not on the rig fl oor. By nature, it’s got to besafer than conventional drilling technology. Infact, you’re removing the human interface andyou completely clear the drill fl oor. With safetybeing a priority, many operating companies maysee hybrid CT rigs as a next generation drillingtechnology.N.b. Drilling-the-Limit is a Shell trademark,representing an alternative planningmethodology through which incredible gainscan be made when applying resources andsignificant team effort with a high focus on'soft issues'. ◆www.spe.orgJanuary/February 2010 SPE NEWS 23

Section NewsSection NewsSPE WA End of Year BashSPE WA hosted its final sundowner for 2009on Friday 6 November at the Mosman ParkBowling Club. The ‘End of Year Bash 2009’was a truly magnificent event, with a venueand theme very different from previoussundowners.With a turnout of approximately 90 guests fromall corners of the petroleum industry, it was agreat success; Eunice Walkden-Brown, SPE WASocial Committee member, thanked everyone forattending and set the stage for a few rounds oflawn bowls.With one of the best vantage points in Perth,guests took in magnifi cent views of the beautifulSwan River backdropped by the Perth city skylineand the Darling Ranges, enjoying a relaxed gameof lawn bowls, mingling with friends new andold, and taking advantage of the great weatherand wonderful array of food and beverages. ◆SPE WA members enjoy the bowling and views.YPP QueenslandAntoni Kourakis (Origin Energy) feels confident enoughto give the group a demonstration after instruction fromthe club pro.The fast-growing Queensland CSG industry andthe infl ux of people, particularly graduates, intoQueensland provided motivation to formallyestablish the Young Petroleum Professionals(YPP) Queensland. YPP sections have been inplace for some time in Adelaide and Perth,proving very successful.The intention of the YPP is to unite youngmembers of PESA and SPE to:• Bridge the gap between students andgraduates;• Provide a means for professional networkingAll participants are getting ready. Joanna Tastidis (OriginEnergy) is too excited to wait.between organisations; and,• Encourage and support development ofgraduates.A professional networking event was recentlyheld at the Norman Park Bowls Club, wheremembers were invited to mingle with oneanother, enjoy food and beverages, and engagein a friendly game of barefoot bowls. It was avery successful event, with 35 attendees fromapproximately 10 different organisations.YPP Qld encourages participation from all youngpeople involved in the oil and gas industry. ItDaniel Wilcox, Sean Kielland (Queensland Universityof Technology), Jonathon Koch (Santos), Kari Sudana(University of Queensland) and Lawrence Mowburg(Queensland University of Technology).is anticipated that an event will be held onthe second Thursday of every other month,alternating between a professional networkingevent and a professional presentation. Presenterswill be encouraged to include advice on careerdevelopment for young graduates. Rob Willinkrecently gave a presentation to an audience of 55people titled, ‘CSG and Career Development—Comparative Geological Setting of ConventionalOil and Gas Fields and CSG Resources in theSurat-Bowen Basin, Queensland’. The YPPcommittee is very appreciative to all who donatetime to speak to the young members of the oiland gas industry. ◆24 SPE NEWS January/February 2010www.spe.org

Open-hole Geothermal,Steam Injection,and Hot Wells.When the temperature gets hot, it’s time to callfor TAM FREECAP GT swellable packers.TAM’s FREECAP® swellable packer elastomer technology has been extended to workin wells with downhole temperatures up to 575°F (302°C) and pressures in excessof 2,000 psi. The TAM FREECAP GT packer is designed to meet the annular isolationrequirements for steam injection and geothermal wells.The FREECAP GT swellable packer maintains its annular seal during pipe movementsassociated with temperature increases/decreases during steam injection operations.When you’re completing steam injection, geothermalor hot wells, TAM has the swellable packer.www.tamintl.com/geothermal

Consulting ServicesMeasurable Impact is a mark of Schlumberger. © 2010 Schlumberger. 09-DC-0138Ensure optimum well placementwith intelligent well solutionsData & Consulting Services (DCS) enabled successful well placement below the top ofa reservoir into a thin horizontal target, achieving 86.5% highly porous reservoir exposureversus only 16.8% in a comparison section using a conventional solution.We bring you the best minds in the business to deliver the right solutions to your mostchallenging problems. A team of highly specialized and experienced experts providesinnovative, fit-for-purpose answers and recommendations from exploration to assetdivestiture, allowing you to maximize value every step of the way.Best-in-class expertise—anywhere, anytimeInnovative and proprietary workflows and technologiesSingle-well to fully integrated field studies and development planningBenefits: Increased production, improved NPV, reduced risk, and optimizeddecision makingwww.slb.com/dcsGlobal Expertise | Innovative Technology | Measurable ImpactSchlumberger Oilfield Australia Pty Ltd Level 5 Capital Centre, 256 St. Georges Terrace, Perth WA 6000 Tel: +61 8 9420 4800 Fax: +61 8 9322 3080 E-mail: australasia@slb.com