Drilling Engineering

Assignment
Maria Mappouridou
12/29/2013

Question 1

Describe the process of selecting a drilling unit for drilling a well in a water depth of 100m.
In the process of well planning and drilling unit selection, several parameters need to be taken under
account for a project to have technical and commercial feasibility together with associated safety and
environmental considerations.
Thus, several assumptions where made and will be stated below.
Once preliminary geophysical investigations indicate the potential for hydrocarbons several major
activities, which may overlap, are required to recover these hydrocarbons from below the seabed.
In general activities and data that need to be taken under consideration are described below:

A target zone is specified and an accurate picture of the subsurface is given by the geologists
Fluid distribution (petrophysicists), prognosis of pressures along the planned well trajectory
(reservoir engineers)
Transport and Logistics: How far from shore is the target zone? Are there any other platforms
(production or exploration) in the area? How long is this drilling unit will be staying at location?
Climate and Geography: What are the weather conditions of the location (extreme windsIce)? Is our location inside of an environmental protected area?
What is the depth of the target?
Type of drilling rig to be used for the well
Proposed location of the drilling rig
Hole sizes and depths
Drilling fluid specifications
Directional drilling information
Well control equipment procedures
Bits and hydraulics program
Cost of drilling
Permits required before drilling

Type of Drilling Rig

Rigs are selected based on cost and availability, water depth, drilling depth, their ability to operate
safely in expected weather conditions, their capacity to provide power adequate for drilling activities,
enough space on board to store the casings and pipes and drilling cuttings.
For the purposes of this exercise we have:
Data:

Water Depth (WD): 100m

Assumptions:
a. North Sea weather conditions: Average air temperatures vary in January from 0 to 4 C and in
July from 13 to 18 C. Winters are stormy and gales are frequent. Tidal ranges average
between 4 and 6 meters along the coasts of Britain and in the southern estuaries, while the
[1][2]
range to the north and east is less than 3 meters.
b. Other factors like drilling depth, mud volume, soil conditions, bulk volume etc. are not taken
under account.

c.

Unlimited availability of rigs.

If we limit our selection criteria to WD and environmental conditions as described above we can
conclude that both Jack-up rigs and semisubmersible rigs are adequate for drilling.
Jack-up rigs are mobile, self elevating drilling platforms equipped with tubular structure legs that are
lowered to the sea floor. Tugboats tow a jack-up to the drill site as a vessel, with its hull riding the sea
and its legs raised. At the drill-site, the legs are lowered until they rest on the seabed and jacking
continues until the hull is elevated above the surface of the water. Drilling operations can then begin.
When they are completed, the hull is lowered until it rests in the water, the legs are raised and the rig
can be relocated to another drill-site. There are two basic types of jack-ups, the independent-leg type,
usually three legs with lattice construction, and the mat type, in which the legs are attached to a very
large mat that rests on the ocean bottom. Both types of jack-ups have a hull, float onto location, jack
the legs to the ocean bottom, and then jack the hull out of the water.
Semi-submersible rigs consist of a deck containing the working areas and equipment and the living
quarters, supported by a hull made up of vertical columns connected to horizontal pontoons. Such
rigs operate on a semi-submerged position with the lower hull ballasted down below the waterline.
Anchored over a wellhead location in this position, the rig provides a stable platform for drilling, due in
part to its wave transparency characteristics at the water line. Additionally in the case of a
dynamically-positioned (DP) semisubmersible, the rig keeps station over the wellhead location by
[3][4]
means of a computer controlled thruster system.
Comparison
Rig Type
Jack-up
Semisubmersible
(Anchored)

Water Depth (m)

15-150
80-1800

Environmental Conditions
New technology provides safe operations in harsh
environments.
Preferred in harsh environmental conditions (wave
transparency characteristics)
[5][6][7][8]

In order to reach to a final decision we need to examine the drilling costs for both cases. Again we
have to assume (assumption e.) that the drilling contract that we will sign with the Contractor will be
the same in both cases differing only in Day Rates.
Comparison
Rig Type
Semisubmersible
(<457m)
Jack-up IC
(>91m)
Jack-up IS
(>91m)

Average Day Rate ($)

294,000
165,000
95,000
[9]

Although many assumptions have been made based on the three parameters taken into accountwater depth, environmental conditions, cost- we can conclude that if no special requirements have a
major impact on the well plan a jack-up rig is the best option in our case.

Process for drilling for a dry hole completion

The drilling derrick tower above the drill floor is where most of the activity is concentrated. The derrick
supports the weight of the drill string which is screwed together from 9-metre lengths of drill pipe.

Hoisting equipment in the derrick can raise or lower the drill string. At the bottom of the drill string is a
drill bit, which can vary in size and type. It is attached to the drill collars, heavy pipe-sections that put
weight on the bit. The drill bit is rotated either by turning the whole drill string ("rotary drilling") or by
using a down hole turbine which rotates as drilling fluid is pumped through it. In rotary drilling, the
rotary motion is imparted to the drill string by the "top drive". This is an electro-hydraulic motor
suspended in the top of the derrick. It is attached to the top of the drill string and imparts torque to it,
causing it to rotate. To add a new section of drill pipe the drill string is clamped in the drill floor with
wedges (slips) and the top drive disconnected. The new joint is screwed into the drill string suspended
in the drill floor, the top drive connected to the top of the new joint, and drilling restarted. The raising
and lowering of the top drive and the maintenance of correct tension on the drill string is controlled by
the driller operating the draw works lever in a control cabin (called the "doghouse") on the drill floor.
Drilling fluid (also called "mud"), which is mainly water-based, is pumped continuously down the drill
string while drilling. It lubricates the drilling tools, washes up rock cuttings and most importantly,
balances the pressure of fluids in the rock formations below to prevent blowouts. In offshore drilling,
the first step is to put down a wide-diameter conductor pipe into the seabed to guide the drilling and
contain the drilling fluid. As drilling continues, completed sections of the well are cased with steel pipe
cemented into place. A blowout preventer is attached to the top of the casing. This is a stack of
hydraulic rams which can close off the well instantly if back pressure (a kick) develops from invading
oil, gas or water. A typical problem faced while drilling is the drill string sticking in difficult rock
formations such as the thick Tertiary clays in the North Sea. A hydraulic device known as a jar,
mounted between the drill collars, can give the drill string a series of jolts. If that does not work, other
techniques may be used, including spotting with oil and water. Special fishing tools can also retrieve
stuck pipe and broken equipment (junk). Drilling grinds up the rock into tea-leaf-sized cuttings which
are brought to the surface by the drilling mud. The drilling mud is passed over a shale shaker which
sieves out the cuttings. Oil entrapped in the mud is detected by its fluorescence in UV light. Gas is
extracted from the mud in a gas trap and sent under vacuum to a gas detector and analyzer. An
increase in the amount triggers an alarm to alert the mud logger and the drilling superintendent. If
laboratory tests are needed on potential reservoir rock, a solid core of rock can be drilled by a special
hollow drilling bit. Each short length of core retrieved calls for the entire drill string to be pulled out of
the well and then reinserted, so coring is an expensive operation. Vital information on the type of rock
drilled and the fluids it contains often needs to be obtained either while actually drilling, or after drilling
before running casing. This is obtained by running electronic measuring devices into the well - either
while drilling (as part of the drill string) or after drilling on "wireline". The various types of measurement
include: (1) electrical resistivity of fluids within the rock; (2) the speed of sound through the rock; (3)
reaction of the rock to gamma ray bombardment; (4) production of gamma rays from fluids within the
rock due to neutron bombardment; and (5) natural gamma radiation of the rocks. The data obtained
give indications of rock type and porosity and the presence of oil or gas. Other devices measure hole
diameter, dip of strata and the direction of the hole. Sidewall corers which punch or drill out small
cores of rock, geophones for well velocity surveys and seismic profiling are also lowered into uncased
wells. In deviated wells approaching the horizontal, flexible high-pressure steel coiled tubing may be
used to carry wireline logging tools and for performing wellbore maintenance operations.
If oil or gas has been detected in a well, a tool is lowered on a wireline to measure fluid pressures and
collect small samples. If the flow rate of the well needs to be measured, a "well test" is carried out.
This involves running production tubing with flow control valves and isolation packers into the well,
then flowing the hydrocarbons to surface through the high pressure pipe work. At the reservoir level,
there are two types of completion methods used on wells: open-hole or cased-hole completions. An
open-hole completion refers to a well that is drilled to the top of the hydrocarbon reservoir. The well is
then cased at this level, and left open at the bottom. Also known as top sets and barefoot
completions, open-hole completions are used to reduce the cost of casing where the reservoir is solid
and well known. Cased-hole completions require casing to be run into the reservoir. In order to
achieve production, the casing and cement are perforated to allow the hydrocarbons to enter the
wellstream. This process involves running a perforation gun and a reservoir locating device into the
wellborne, many times via a wireline, slick line or coiled tubing. Once the reservoir level has been
reached, the gun then shoots holes in the sides of the well to allow the hydrocarbons to enter the
wellstream. The perforations can either be accomplished via firing bullets into the sides of the casing
or by discharging jets, or shaped charges into the casing. While the perforation locations have been
previously defined by drilling logs, those intervals cannot be easily located through the casing and
cement. To overcome this challenge a gamma ray-collar correlation log is typically implemented to
correlate with the initial log run on the well and define the locations where perforation is required.

Some wells require filtration systems in order to keep the wellstream clear of sand. In addition to
running a casing with a liner, gravel packing is used to prevent sand from entering the wellstream.
More complicated than cementing a well, gravel packing requires a slurry of appropriately sized
pieces of coarse sand, or gravel, to be pumped into the well between the slotted liner of the casing
and the sides of the wellborne. The wire screens of the liner and the gravel pack work together to filter
out the sand that might have otherwise entered the wellstream with the hydrocarbons. In the last step
in completing a well, a wellhead is installed at the surface of the well, often called production tree or
Christmas tree. This wellhead device includes casing heads and a tubing head combined to provide
surface control of the subsurface conditions of the well. Offshore wells can be completed by two
different types of trees: Dry and Wet trees. Dry trees are installed above the waters surface on the
deck of a platform or facility and are attached to the well below the water. Wet trees are installed on
the seabed and encased in a solid steel box to protect the valves and gages from the elements. The
subsea wet tree is then connected via electronic or hydraulic settings that can be manipulated from
the surface or via ROVs. Additionally, wells may have production flowing from multiple reservoir
levels. These wells require multiple completions, which keep the production separate. Double-wing
trees are installed on multiple reservoir levels. Furthermore, completions have evolved to incorporate
downhole sensors that measure flow properties, such as rate, pressure and gas to oil ratio. And they
[10][11][12]
are known as intelligent wells or smart wells.

Main well controls

The first line of defense in well control is to have sufficient drilling fluid pressure in the well hole.
During drilling, underground fluids such as gas, water, or oil under pressure (the formation pressure)
opposes the drilling fluid pressure (mud pressure). If the formation pressure is greater than the mud
pressure, we have a kick (flow of formation fluids into the well) and there is a possibility of a blowout.
A kick is controlled (or the well killed) when all the formation fluids which entered the wellbore have
been circulated out and when the mud in the hole when the kick was taken has been replaced by a
mud which exerts a hydrostatic pressure slightly higher than the formation pressure.
Mud pressure must, at all times, be slightly higher than the formation pressure and is mainly
controlled by the fluids density (the mud density changes to withstand the hydrostatic pressure of the
formation, as drilling progresses in various depths). To change the muds density we use various
additives, barite being the most common.
Formation and mud pressures are calculated periodically during the drilling process and of course a
prognosis of pressures is given before drilling starts.

https://www.osha.gov/SLTC/etools/oilandgas/images/kickback_final.gif

If, however, the formation fluids that enter a well cannot be controlled with the method described
above, there is a serious possibility of a blowout. For this reason Blowout Preventers (BOPs) are
always installed on the surface of the well. BOPs are large valves which quickly shut off the well as a
last-ditch precaution to prevent a kick from becoming a blowout. Often, Different types of BOPs are
used in an arrangement configuration, called a BOP stack.
There are two main types of BOPs: annular preventers and ram preventers. Ram preventers move
two opposing rods horizontally across the top of the well. Ram blocks on the ends of the shafts create
a seal around the pipe. Ram blocks come in various sizes and designs to cope with specific drilling
operations. Annular preventers use an elastomer packer squeezed across the annulus in an upwardand-inward motion to cork the well and prevent upward movement in the wellbore. Annular preventers
are usually the preventer of choice because the packer will form a seal around any diameter tubular
or wire line that may be in the well at the time a kick is taken. However, both types are usually
employed in stacks.
There must be two locations from which the BOPs can be operated: one near the drillers position and
the other outside the security zone or classified area. On land or on a fixed offshore platform, back-up
methods for emergency closure may be provided (manual control or hydraulic control using the rig
pumps). On a floating vessel there must be complete redundancy of the control equipment. An
acoustic control system may also be installed in case of failure of the two principal control systems.
The hydraulic accumulators will be located outside the security zone or classified area and must be
capable of closing the BOPs as quickly as required. This requirement has lead manufacturers to
consider mounting the accumulators on the BOP stack for deep water applications. The accumulator
capacity must be such that in the case of a complete power failure the volume of fluid stored at the
maximum operating pressure is sufficient to close and reopen all the preventers. The control system
must include a pressure regulator, particularly for the control of the annular preventer or a diverter
during stripping operations. The pumps used must be capable of fully recharging the accumulators in
10-20 min and they should be able to operate with different energy sources (e.g. electricity and
[13][14][15]
air).

BOP StackUS Dept. of Labor, Occupational Safety &

Health Administration

Drilling plan. Factors to be considered for safe drilling activity, to the right place.
The drilling plan provides the information necessary to ensure that drilling is conducted with
appropriate regard for protection of public health and safety, the environment, correlative rights and
maximum economic recovery of hydrocarbons. Furthermore, the drilling plan should attempt to
answer the questions that might arise during review. A drilling plan should include a complete
description of the proposal and anticipated drilling conditions such as loss circulation, high pressure,
and hydrogen sulfide.
Drilling plan components:
Formation Tops
Identification of important geologic markers.
Depth to Oil, Gas, Water and Minerals
List of the zones that might bear these resources, plans for protecting such resources, identify salt
water zones as they would affect drilling conditions.
Pressure Control (BOP)
Size, rating, configuration and testing. Schematic diagrams. Description of any ancillary equipment
such as rotating head, remote kill line, mud-gas separator.
Casing
Size, weight, grade, thread & coupling, depth and condition. The design criteria, loading assumptions,
safety factors used and published specifications should be included. Liner top and lap length should
be included and any unusual design conditions should be described.
Cement
Description of the amount, type of cement (including additives) for each slurry. Density and yield
should also be included.
Circulating Medium
Type and characteristics of mud for each section of hole and description of standby mud. Air drilling
equipment (blooie line, dust suppression equipment, gas ignition source compression equipment size
and location on the pad layout relative to the well bore and other equipment) should be included.
Testing, Coring, Logging
General description of the logging suite and if drill stem tests are anticipated then they should be
identified.
Pressures, Temperatures, H2S
Bottom hole pressure should be listed and should correspond to the casing design, to blow-out
prevention equipment, and to mud weight. Any up-hole high pressure zones or loss circulation zones
and if hydrogen sulfide is anticipated should be identified.
Other Aspects
The final portion of the drilling plan is any other facet of the proposal that might aid in the
understanding of what's being proposed, particularly directional or horizontal wells. It should include
design, plan view, vertical section and measured and true vertical depths.

Question 2
Are the costs submitted by the drilling contractor sufficient to enable the company to apply for the
three licenses?
Dry hole costs:
Well 1=27.450.000
Well 2=10.000.000
Well 3=11.100.000
Company Market Cap=25.000.000
Condition for 3 licenses: MC should cover 100% of most expensive well and 50% of the other wells.
MC Need=[(1x27.450.000)+(0.50x10.000.000)+(0.50x11.100.000)]=38.000.000
Therefore, the company cannot apply for the 3 licenses since it is 13.000.000 short.
Ways for cost reduction considering data given in Kells environmental statement report
1. Using Kells as an analogue we can estimate the days needed for drilling and running the
casing for the first well since they have similar depths (well1 at 13800ft, kells at 15055ft)
Spud to TD Days
49,5
33,5

Well1
kells

Spud to TD Cost ()
22,900,000
15,497,979

Cost Reduction

7,402,021

(Detailed Analysis in Appendix 1)

Although wells 2 and 3 cannot be compared with kells wells because of the difference in drilling
depths we can discuss with the contractor the possibility of decreasing the total drilling days since it
seems that for well 1, drilling days can be reduced significantly.

2. We have a water depth of 452ft in Kells were as in our cases we have a water depth of 308ft
(well1) and 300ft (in wells 2and 3 respectively). It is safe to assume that instead of a
semisubmersible, a jack-up rig could be used for the 3 wells.
If a jack-up is used cost is reduced even more:

well 1
well 2
well 3
Cost Reduction

Cost Reduction ()
(7,402,021 + 1,400,000) = 8,802,021
1,242,000
1,472,000
11,516,021

(Detailed Analysis in Appendix 2)

3. The reduction of the following cost figures can also be discussed with the contractor:
Days for mobilization/demobilization
Days and number of tugboats used
Standby and supply vessel rate (how many trips/week are scheduled?)

4. The budgetary cost estimates that were given by the contractor are not subject to any kind of
contract. The type of contract to be finally used would probably change the final cost for the
drilling. For example, in a Turnkey contract, the contractor is responsible to submit documents
for permits and receive approvals on behalf of the operator, but these expenses are not
included in UKCS requirements.

Define the main parameters that made the cost reduced and explain your approach
Rig cost (rates) and drilling costs are the main factors that define the cost for a wells dry hole
completion. Therefore, a significant cost reduction can be achieved within the restrictions of
regulations if these costs are limited.
In my opinion no other costs could be quantified with the data provided. For example we know that 3
tow vessels are required with a rate of 15,000 per boat per day but we cannot estimate the total tow
cost as we do not know how many days the rig would be towed.

Is it possible for the company to apply for the licensing round based on the new data?
In order for the company to be able to apply for the 3 licenses the reduction of the costs not quantified
above should cover the remaining amount of approximately 1,500,000. This could be possible
considering that drilling days for wells 2 and 3 would also be reduced.

Question 3
At what point in time would you have suggested that the bit be pulled and why?
In real time analysis the decision to pull the bit should be based on the performance of the bit over a
period of time, thus, the bit should be pulled when the cost per foot of the bit run has reached its
minimum.
For our data:
Cost per foot=[Bit cost+(Trip time + Time on Bottom)*Rig Rate]/Footage Drilled

Time on
Bottom (hrs)

Footage
Drilled (ft)

Bit Cost
()

Trip
Time
(hrs)

Rig
Rate
(/hr)

Cost per foot

(/hr)

34

1200

400

141,1764706

62

1200

400

83,87096774

86

1200

400

65,11627907

110

1200

400

54,54545455

126

1200

400

50,79365079

154

1200

400

44,15584416

180

1200

400

40

210

1200

400

36,19047619

216

1200

400

37,03703704

10

226

1200

400

37,16814159

11

234

1200

400

37,60683761

12

240

1200

400

38,33333333

Bit Run Cost

160
140
120
100
Cost per foot
80
(/hr)
60
40
20
0
1

10

11

12

Time on Bottom (hrs)

Calculations and diagram show that after 8 hours cost per foot has a minimum and its starting to
increase. Therefore we have a strong indication to pull the bit at this point. However, before the final
decision other factors should be taken under consideration. For example, if the bit entered a new type
of formation its performance might be affected.

10

Question 4

Plot Pore Pressure-Depth information

Pressure
(psi)

Depth
Below
Drillfloor
(ft)
0

465

1000

2325

5000

3720

8000

6800

8500

6850

9000

6900

9500

Pore Pressure Profile

0

465

2325

Pressure (psi)
3720

6800

6850

6900

0
1000
2000
3000
Depth (ft)

4000
5000
6000
7000
8000
9000
10000

Pore Pressure gradients in the formations at 8000ft, 8500ft and 9500ft

Patm + (P/z)*z = P(z)
P(z)
Depth
(psi)
(ft)

P/z
(psi/ft)

14,7

3720

8000

0,463

14,7

6800

8500

0,798

14,7

6850

9500

0,72

Patm
(psi)

11

Mudweight (ppg) required to drill the hole section down to 8000ft, 8500ft and 9500ft (Assumption:
maximum of 200psi overbalance on the formation pore pressure is required)
Patm + (P/z)*z = P(z)
P(z)
Depth
(psi)
(ft)

P/z
(psi/ft)

14,7

3720

8000

0,463

9,423076923

14,7

6800

8500

0,798

15,83710407

14,7

6850

9500

0,72

14,27125506

Patm
(psi)

MW = (P(z) + 200)/(0,052*TVD)
mud weight
(ppg)

If the mudweight used to drill down to 800ft were used to drill the formation pressures at 8500ft what
would be the over/underbalance on the formation pore pressure at this depth?
P(z) = MW(8000ft)*0,052*8500
mud pressure at 8500ft using mud
weight at 8000feet
(psi)

4165

formation
pressure at
8500 feet (psi)

6800

underbalance
(psi)

-2635

If the mudweight of 9,42ppg were used to drill at 8500ft the borehole pressure would be 2635psi less
than the formation pressure.

12

Appendix 1

13

Kells
15055ft / 3 tug boats / water depth at 452ft
PHASE

Days COSTS ()

Drill 36" hole to 784ft

Run and cement 30" casing
Drill 26" hole to 3316ft
Run and cement 20" casing/install and test BOP
Drill 171/2" hole to 7992ft
Run and cement 133/8" casing
Drill 121/4" hole to 13917ft
Run and cement 95/8" casing and test BOPs
Drill 81/2" hole to 15055ft
Spud to TD Days

1
1,5
4
5,5
4
4,5
4,5
5,5
3

33,5 15,497,979

Rig mobilization and preparation

4,5

Demobilize rig

3,5

Cost Reduction

15497979,8

7,402,021

Assumption made: total cost is equally divided into 49,5 and 33,5 days respectively.

14

Appendix 2

Rig type
well
1
kells
well
2
well
3

well
1
well
2
well
3

Rig Rate
(/d)

Days on
site

Spud to TD
days

Total Rig Cost

()

Rig Cost Spud to TD

days ()

semi
semi

200000
200000

60,5

40,5
33,5

12100000

8100000
6700000

semi

200000

22

13,5

4400000

2700000

semi

200000

24,5

16

4900000

3200000

21400000

14000000

Rig type
Jack-up
300"+
Jack-up
300"+
Jack-up
300"+

Rig Rate
(/d)

Days on
site

Spud to TD
days

Total Rig Cost

()

Rig Cost Spud to TD

days ()

108000

60,5

40,5

6534000

4374000

108000

22

13,5

2376000

1458000

108000

24,5

16

2646000

1728000

11556000

7560000

(rigzone)

15

References

[1] http://www.britannica.com/EBchecked/topic/419398/North-Sea/33268/Hydrology
[2] http://en.wikipedia.org/wiki/North_Sea#Major_features
[3] http://www.seadrill.com/drilling_units/fleet_concepts
[4] http://petrowiki.org/PEH%3AOffshore_Drilling_Units#Jackups
[5] http://petrowiki.org/MODU_selection
[6] http://www.onepetro.org/mslib/servlet/onepetropreview?id=00018623&soc=SPE
[7] http://www.maerskdrilling.com/DrillingRigs-2/UHEJ/Pages/ultra-harsh-environment-jack-ups.aspx
[8] http://www.petromin.safan.com/mag/pmarapr13/r18.pdf
[9] http://www.rigzone.com/data/dayrates, (20/12/2013)
[10] http://www.oilandgasuk.co.uk/publications/britainsoffshoreoilandgas/Exploration/Drilling.cfm
[11] http://www.rigzone.com/training/insight.asp?insight_id=326&c_id=23
[12] http://www.npc.org/Prudent_Development-Topic_Papers/2-11_Subsea_Drilling-Well_OpsCompletions_Paper.pdf
[13]http://books.google.gr/books?id=hI5W8MOWjNAC&pg=PA83&lpg=PA83&dq=well+control+kick+bl
owout&source=bl&ots=DnB3HX674c&sig=RBAaU2nRlsrn94KXZi2GhvBgFVg&hl=el&sa=X&ei=cpO4
UpT0L4nesgb4woGAAQ&ved=0CFgQ6AEwBA#v=onepage&q=well%20control%20kick%20blowout&
f=false
[14] https://www.osha.gov/SLTC/etools/oilandgas/drilling/wellcontrol.html
[15] http://www.rigzone.com/training/insight.asp?insight_id=304&c_id=24

16