Drilling Technologies for Brownfield Development: ROGTEC Talks ERD with the Industry Heavyweights

Vitaly Chubrikov: Baker Hughes INTEQ, Business Development Manager, Russia
Kieran Fitzpatrick: Operations Manager, Halliburton Sperry Drilling, Russia
David J. Brunnert: Vice President: Intervention Services, Weatherford International Ltd.

With the age of peak oil perpetually drawing nearer, around 40% of the world’s oil today is produced from brownfields. Currently and in the future there is a need to understand how to develope these fields in order to sustain production. Brownfields by their very nature will become the largest available hydrocarbon deposits in the world. Extending field life and recovery will become the primary focus of many operators. Brownfield development encompasses many different technologies, from reservoir engineering and monitoring to fracturing and stimulation, remediation, intelligent well systems and flow monitoring. This discussion is exclusively looking at the drilling systems aspect to increasing field potential.

How are operators in Russia currently employing drilling technologies to improve their brownfield performance?

Vitaly Chubrikov: The need for drilling efficiency, along with geological uncertainties, are becoming focus areas for operators that drive their well construction strategies in Brownfields. Many drilling contractors are adding new mobile rigs to their fleets and implementing operational process improvements to reduce NPT. The rig contractors are also upgrading existing fleets with equipment such as pumps, solids control and top drives that enhance the value added by technology based on the requirements of operators. The contractors are working with oil companies and service companies to apply drilling technologies such as engineered programs with PDC bits, non-damaging drilling fluids, pre-countered mud motors, Rotary Steerable Systems, LWD tools with real-time reservoir data and geo-steering techniques. Rotary Steerable systems and near bit geologic and reservoir data help operators to optimize well placement to recover by-passed reserves in Brownfields.

Kieran Fitzpatrick: Operators in Russia are using a variety of drilling technologies to extend the life of old fields that were initially developed during Soviet times. These include:

• Building larger pads with additional longer reach wells to reduce cost per well for the pad, roads, service infrastructure and production facilities
• Drilling new infill wells beneath old fields to access deeper targets identified by modern seismic techniques or exploratory drilling, or in fields that were previously deemed uneconomic to develop
• Use extended reach drilling to develop previously inaccessible reserves, e.g. extensions of fields offshore or under lakes and rivers
• Sidetrack depleted or abandoned wells to reach rim or attic oil, as well as previously untapped fault blocks or traps
• Use under balanced or managed pressure drilling to minimize reservoir damage and remove the additional costs of large frac jobs
• Use coiled tubing drilling or radial drilling (lateral jet drilling) techniques to reduce rig mobilization and drilling costs for slim hole sidetracks
• Use steam assisted gravity drainage (SAGD) wells in shallow, heavy oil reservoirs
• Drill multilateral wells in order to minimize surface footprint, as well as reduce construction and production facility costs
• Geosteer within thin oil bands in order to increase hydrocarbon section length
• Reduce drilling days by optimized use of modern drilling equipment, fluids and hydraulics to drive down development drilling costs

David Brunnert: Advances and cost reductions in drilling technology are dramatically changing the situation. Reserves that used to be uneconomical to produce are now being considered. The challenge is to balance the cost of premium equipment with its intended benefits. This exercise is not trivial; one should not assume that practices that work at-scale in other markets will automatically work in Russia. Likewise, the scale of the Russian market and the ingenuity of the workforce make some things achievable here that are not achievable elsewhere.

What are the key aspects operators should consider when utilizing drilling technologies on brownfield wells?

Vitaly Chubrikov: Economics and PI determine the technology selection. Production enhancement and time to recoup investment determine the IRR on capital employed. A strong business case supported by value added technology arguments are required to get AFE’s approved for implementing drilling programs with applicable technologies and equipment. Well designs, interactive engineering, reservoir and production models require collaborative efforts to support the AFE’s. The best solutions come from operators working with drilling contractors and service providers.

Kieran Fitzpatrick: Operators should look at all the different drilling technologies available when evaluating methods to enhance or prolong production from old fields. Methods include:

• Assign a senior drilling engineer, drilling superintendent and reservoir engineer as a team to continually evaluate new or enhanced drilling technologies for suitability in their reservoirs and to develop a broad solution to reservoir development
• Use matrix planning to match the most cost-effective drilling method to the most cost-effective completion method for each reservoir in each field
• Determine the smallest diameter completion string that can provide the required production rates, then design the well geometry (including expandable casing and under-reamed hole) and fluids program to achieve that geometry with minimal risk
• Gyro re-survey older wells to improve knowledge of well positioning for collision avoidance mainly.
• Drive drilling costs and times down by use of technical limit drilling techniques, upgraded rig equipment, new or enhanced drilling technologies and optimized drilling practices.

David Brunnert: The key is to understand the risk of the operation. Brownfields, by definition, lack high pressures and/or production rates. Thus, even small errors in execution can render recoverable reserves uneconomic.

What is the history of sidetracking to enhance field production in Russia?

Vitaly Chubrikov: Sidetracking operations are rapidly growing segment in Russia; most operators do see sidetracking as the economical tool to enhance production in Brownfields. In many cases the cost of sidetracking is considerably lower than the cost of a new drilled well when factoring in the required infrastructure cost such as road access and new pads. The well candidate selection criterion for re-entry is a key element for sidetracking program success. Development of a comprehensive and reliable dynamic field model will help operators gain the most benefit from sidetracking.

Recent introduction of under balanced Coiled Tubing Drilling (CTD) technology in W. Siberia has proved to be a commercially viable in some Brownfield applications. It can deliver increased production with reduced formation damage. CTD will likely be more frequently employed in the coming years based on recent positive results. Again good candidate selection is critical to the economic success.

Kieran Fitzpatrick: Re-entry sidetracks on an industrial scale began in 1999 in the Surgut area. The first issues that arose were matching the well bore dogleg severity to the liner capability and the selection of surface and downhole equipment and tools. More recently, under balanced and coiled tubing drilling techniques have been employed. High angle sidetracks drilled from watered out or abandoned wells are now commonplace in many old oilfields. Examples of sidetracking techniques from the giant Samotlor Field in Western Siberia include conventionally drilled sidetracks, typically 142.9 mm (55/8″), and coiled tubing drilled sidetracks, typically 123.8 mm (47/8″).

Other issues associated with these sidetracks include high torque and drag requiring specialty lubricants, and high ECD (equivalent circulating density), which often causes induced fractures and significant downhole drilling fluid losses.

David Brunnert: As a technology intended for brownfield development, sidetracking has been used in the former Soviet Union since the 80s. Azerbaijan, the Krasnodar region and West Ukraine were the leaders in its implementation. This is due to the fact that these regions featured mature fields. The technology featured the milling out the section of the casing, using an expandable cutting tool, then drilling the lateral directionally. In the 90s the demand for sidetracking services increased significantly. Several major service companies offered modern sidetracking technologies, using advanced systems, providing “one-run” whipstock set-up and milling off the window. Nowadays there are 4-5 service companies who offer this technology, so the customer can select different technologies, at different prices. The problems today might be with the volume of quality services available for an affordable price.

How can sidetracking improve field production?

Vitaly Chubrikov: Sidetracking allows for recovery of by-passed reserves by improving reservoir coverage. This is particularly true in tight or highly laminated formations or in water-flood applications where recovery factors are lower than in homogenous permeable formations with natural pressure drive mechanisms. Dynamic field models, good geologic mapping and knowing the reservoir allow for the most hydrocarbons to be produced from a given field.

Kieran Fitzpatrick: Sidetracks can usually improve field production in different ways, e.g.:

• Use a watered out or abandoned well to access new or bypassed reserves
• Geosteer within thin oil bands in order to increase hydrocarbon section length
• Use extended reach drilling techniques to reach additional untapped reserves
• Use under balanced fluids or non-damaging drilling, cleanup and completion fluids to enhance production without expensive and sometimes damaging stimulation treatment
• Use sidetracks with LWD/MWD tools to accurately place either injection or production wells into the optimum location (“sweet spot”) in the reservoir

David Brunnert: Sidetracking allows an operator to re-enter a well bore to gain access to reserves that were previously bypassed. It is a valuable way to dramatically expand the drainage area of a well, or a system of wells.

What other drilling technologies can be employed on brownfield sites?

Vitaly Chubrikov: Drilling technology applications are gaining popularity because of the operator’s need to enhance production on rapidly depleting reservoirs. The cost of replacing production with new Greenfields is often still more expensive than Brownfield production enhancement. The following drilling technologies have growth potential in Russian Brownfield markets:

• Rotary Steerable Systems
• Advanced LWD sensors (pressure, sampling, look ahead of the bit)
• Real-time petrophysical data management
• Under balanced drilling
• Coiled Tubing Drilling
• Drilling Optimization programs, integrated bits / fluids / motors / steering
• Sector Models and Geosciences
• Enhanced PDC bits designs
• Non-damaging drilling fluids and improved solids control

Kieran Fitzpatrick: Optimized use of current and new technology is the key to cost-effective production drilling in brownfield reservoirs. Some examples such as the use of under balanced and coiled tubing drilling were given earlier. When planning new infill wells, operators should carefully consider the complexity of the well bore trajectory when requiring a horizontal well in the zone directly under the existing pad. This can involve a complicated build and reverse turn when drilled from the same pad. They should consider drilling a simpler trajectory from a nearby pad.or weigh the benefits and costs of introducing a new pad in the field.

David Brunnert: The nature of brownfields drives operators to be extremely conservative on cost. Using a low cost rig can bring a cascade of problems with it that offset the benefit. Nevertheless, if an operator chooses to use a rig with limited torque or hoisting capabilities, there are tools that can mitigate the effects. Tools such as mechanical friction reduction tools or aluminum drillpipe reduce the effects of torque and drag and allow a wider range of well services to be completed while paying less for the rig.

How important is the crew on drilling operations?

Kieran Fitzpatrick: The drilling crew and the primary drilling service contractors are the most important element of a successful brownfield drilling campaign. Competent drilling personnel must be actively sought when planning any technically complex drilling program. Ongoing training must be an integral part of the drive towards cost-effective production drilling.

The drilling and service crews should be rewarded on the basis of planned versus actual well productivity, not merely on drilling rate and drilling non-productive time (NPT).

Close cooperation with the customer to provide all existing well data and good teamwork is essential for success.

In closing, I thank Peter McNaughton (Baroid technical manager) and Vladimir Semenov (Sperry senior directional drilling coordinator, Tyumen) for their extensive contributions.

Vitaly Chubrikov: The drilling contractor is a key contributor to the well construction process. A well-trained and experienced rig crew ensures that wells are drilled safely, efficiently and effectively. Coordination and cooperation of drilling operations with the service companies enhances the value added from the technologies that are utilized. The crews contribute to the construction of a well with a gauge hole, less tortuous path, and minimal fluid losses. All of these will enhance the productivity of a well and the hydrocarbon recovery of reservoir. And those determine the economic benefits to all parties.

David Brunnert: Like so many other things, people are critical of brownfield operations. Brownfield operations typically lack many of the automated systems that help monitor the performance of the rig and downhole conditions. Thus, it is critical that the crew be well trained and pay close attention to each and every action. Again, one small mistake on a brownfield well and the project can be rendered uneconomic. Even worse, a minor accident can cause hardships, delays and costs that are unacceptable.

Vitaly Chubrikov,
Baker Hughes INTEQ,
Business Development Manager, Russia
Vitaly Chubrikov graduated from Gubkinsky Oil & Gas University in Moscow in 1995 and joined Baker Hughes soon after, as a field engineer. Over the years he has held various field and office positions in both domestic and international assignments.

Kieran Fitzpatrick,
Operations Manager,
Halliburton Sperry Drilling, Russia
Kieran has been based in Moscow for 2.5 years and in Russia for 5 years. He started in the North Sea in 1985, and has been with Halliburton since 1988, primarily working in the Middle East (Dubai / Abu Dhabi / Oman / Qatar / Pakistan / Bahrain / Egypt / Yemen / Saudi Arabia). Kieran was educated at the Belfast Municipal Institute and The Queen’s University of Belfast.

Peter McNaughton earned a B.Sc. (Geology) from University of Queensland, Australia and M.Sc. (Mining Geology) from University of Leicester, UK. He joined the oilfield in 1973 as a mud logger for Core Laboratories Inc., working throughout SE Asia. He joined Baroid in 1976 as a mud logger and completed mud school in 1978. He worked continuously for Baroid as a Mud Engineer and Operations Supervisor in Australasia, Technical Professional in Aberdeen, and Technical Manager in SE Asia. He also worked in several customer offices as a Project Drilling Fluids Coordinator, including the planning and start up of ExxonMobil’s extended reach drilling project on Sakhalin Island, Russia. He is currently the Baroid Russia Technical Manager, based in Moscow.

David J. Brunnert,
Vice President Intervention Services, Weatherford International Ltd.
Mr. Brunnert has more than 15 years of experience in the development and commercialization of innovative drilling and intervention tools for the upstream oil and gas industry. A graduate of West Point, he has a Bachelors of Science in Mechanical Engineering and a Masters of Mechanical Engineering from the University of Houston. An active member of the Society of Petroleum Engineers, Mr. Brunnert is currently serving on the SPE/IADC 2010 Drilling Conference Program Committee. He holds 20 patents and is responsible for managing Weatherford’s Intervention Services Product Line globally.