Transcript Document

Smith Eurasia
Integrated Management and
Drill Bit Supply to Companies
of the Oil and Gas Industry
Presentation
September 2003
website: www.smitheurasia.com
Smith Eurasia – Main Areas of Activities

Supply of equipment and technology

Procurement services

Engineering services

Wellsite services

Integrated project management
Smith Eurasia – Supply of Equipment

Drill bits (roller cone, diamond and PDC)

Drilling equipment

Directional drilling tools

Fishing tools

Workover equipment

Completion equipment

Production equipment

Mining equipment
Smith Eurasia – Engineering Services

Well drilling engineering design

Well completion and production engineering design

Technical data review

Technical and engineering recommendations

Field testing of equipment and technology

Development of feasibility studies

Analysis of economic return from introduction
Smith Eurasia – Wellsite Services
Oversight and provision of the following types of services:

Construction

Drilling

Fishing operations

Workovers

Sidetracking

Multilaterals

Milling

Completions

Perforating
Smith Eurasia
NC
ENGINEER
DATA
AGREEMENT
SDK
ENGINEER
информация
DATA
Drill Bit Optimization Process
Use of D B O S software
• Computer simulation of
physical and mechanical
rock parameters
• Optimization of use of roller
cone and diamond bits
• Statistical analysis of
source databases
• Drilling programs and
review of previous
performance
• Production of work charts
Drill Bit Optimization Process
Bit Selection
Purpose of Drilling
yes
New
recommendations
Utilization of Experience
Special Features
of the Well
BHA
Review of
Input Data
Utilization of
Experience
Decision
Selection
Conditions of
Use
ГОБ
Csg
DH motors
Muds
no
DBOS
Sectional
Analysis of
Discussion
Recommendations
New
Products
New
Technology
yes
Bit
Order
no
Discussion
of New
Proposals
ASE Services Use Examples
South Oman: Deepwater Exploration
$250
Hourly Rate = $1050
Tripping = 6 hrs
$200
GTXCP03 used in all wells
ASE in
Oman Oil
Control directional drilling
during load variation
Increased load
With new
BHA
$/meter
$150
$100
Reduced RPM and
increased circulation
volume
Used
asymmetric
nozzle
$50
$0
Dasimi 1
Har Deep Sarmad 1 Ghafeer 1H1Sarmad 2H1Ambrah 1h1Ajeeb 1H1 Sakhiya 1H1
1H1
ASE Services Use Examples
12.25" Amin Conglomerate Section Performance
Rig 50 Deep Oil Exploration Oct 98 - May 2000
350
5.0
Map layers,
Trial new bit
design
Meters/bit
ROP
4.5
300
Median bit ROP
4.0
Use XEM seismic to
map sands,
conglomerates
Median meters/bit
250
3.5
Max WOB,
slow RPM
150
Drill ahead
Use
harder
bits
Limit
WOB <20 kdan
RPM <80
2.5
2.0
1
1.5
100
7
2
50
2
bits
5
1.0
2
0.5
0
Ghafeer 1H1
Sarmad 2H1
Ambrah 1H1
Ajeeb 1H1
Sakhiya 1H1
Ghafeer 2H1
Meters/bit
98.5
112
117
139
199
304
ROP
2.8
3.7
2.5
2.8
2.8
4.3
0.0
Median mts/hr
3.0
200
Conclusion 1:
1.
Optimization of the bit program can significantly reduce
drilling time and well costs.
2.
A specialized bit company should manage the bit program.
3.
Smith Eurasia, an exclusive partner of Smith International,
has the expertise and technology required to provide such
services in the former Soviet Union.
Specific Features of Drilling Operations in the FSU
а) impossibility to fully optimize drilling parameters due to
lack of required drilling equipment;
b) low availability of high-end modern equipment and tools
in drilling companies;
c) low quality of drilling muds and their treatment;
d) use of high-RPM turbine drilling;
Conclusion 2:
а) optimal and efficient combination of available
equipment and technology with the most advanced
Western equipment and technology.
b) optimization of financial and logistical arrangements
for equipment.
c) introduction of new types of services and organization
of operations.
Services Provided

Establishment and management of drill bit warehouses

Work with bit manufacturers, contracts, placement of
orders, financial settlement

Drill bit supply with payment after actual use
(consignment basis)

Engineering support

Introduction of advanced technology

Control use and running of drill bits, train drilling
contractor’s staff

Logistics and freight forwarding services
Effect from Implementation of the Project
Implementation of the Integrated Drill Bit Management
and Supply Project will:

Reduce well drilling time

Reduce well costs

Reduce well construction costs and provide additional
oil and gas production

Increase the service life of drilling equipment and
services

Improve safety and health status
Additional Effect from Implementation of the Project

Reduction of drilling crews and a corresponding reduction of
administrative and operating costs

Improvement of overall drilling technology, reduction of
construction time and, as result, quality improvements and startup of new wells ahead of schedules with receipt of additional
production

Reduction of drilling mud costs due to reduction of the time to
drill a well

Reduction of the wear of drilling equipment and its repair costs
due to less pipe tripping

Reduction of wear and tear of drilling tools due to less drilling
time and amount of pipe tripping
Additional Effect from Implementation of the Project

Savings of considerable amounts of money through reduction of
“frozen” warehoused inventory

Improved drilling efficiency through constant engineering
control, implementation of new technology and creation of a
broad database

Reduction of downhole problems during well drilling through a
reduction of drilling time and amount of pipe tripping

Reduction of bit transportation costs an as result a smaller
overall amount

Reduction of injuries due to less pipe tripping
Bit Optimization Process
•Discussed with the Client
• The goals and objectives of the Project
• A meeting with the local technical group to
establish working contacts.
Selection and Review of Input Data
• Processing of input data by D B O S
software .
• Review of basic bit and drilling programs.
• Statistical analysis of base data to
determine their average level and
development trends
• A review of the use of products and bits of
different manufacturers.
Daily Services
• Provision of daily engineering support to
drilling crews.
• Direct involvement in the process of
optimization of drilling.
Input Data
• Technical and geophysical data packages on basic
operations. (E Logs, Mud logs, Bit run
data, Daily Drilling reports, End of well reports)
Proposals
• Review and select bits offered by various suppliers.
• Select optimal types of bits for specific well sections.
• Complete bit program for the well and its discussion
with the local technical service.
• Introduction of revisions and changes to the proposals
of the local technical people.
• Approval of the bit program.
Review of Drilling Results.
• Review of “immediate” drilling data.
• Identification of required changes
• Provision of a report on each drilled well and its
discussion with the local technical group.
Scope of Services Under the Actual Project
1. Smith Eurasia has established offices and consignment
warehouses in each area of NC drilling operations.
2. Engineering groups are operational in each region; a drill bit
program is being produced for each well covering both
Western and Russian drill bits.
3. An inventory of both Western and Russian drill bits is being
maintained at warehouses on a consignment basis.
4. The drill bits are delivered individually to each well and are paid for
at the time of their use.
5. The engineering group provides engineering support of the drilling
process, studies used bits and issues the necessary
recommendations.
Time-basis comparison of technical and economic drilling performance
calculated on the basis of the current Bit Program and the Bit Program
Proposed by Smith Eurasia
5000
4734
4500
3614
4000
3500
2618
3000
2255
2500
2000
1500
75
732
1000
189
500
18
0
1
2
Цикл строительства
скважины, час.
Время бурения, час.
Фактическая
3
4
Время СПО, час.
Предлагаемая
Количество
долот на
скважину, шт.
Comparison of Technical and Economic Drilling Performance
Estimated on the Basis of the Actual Drill Bit Program vs.
the Drill Bit Program Proposed by Smith Eurasia, in $ Value Terms
$1 590 535
$800 000, 00
$1 267 683
$700 000, 00
$600 000, 00
$500 000, 00
$318,01
$400 000, 00
$245,67
$213029 $215950
$300 000, 00
$200 000, 00
$100 000, 00
$0, 00
1
2
Стоимость долот на
скважину,$$
Стоимость метра проходки,
$$ Meter, US$
Costs per
Bit Costs, US$
actual
3
Стоимость бурения, $$
Drilling Costs, US$
proposed
Economic Benefits Achieved On Drilling Sections
With Service Support on Completed Wells
Well No.
Field
986
Growth
1026
Growth
3813
Леб
188
Ток
2713
Давыд
Well Depth, m
4320
4520
4160
2356
4620
Depth at Start of Provision of Services, m
1200
2915
2549
0
3615
Length of the Section Serviced by Smith Eurasia, m
3120
1605
1611
2356
1005
Drilling Time for the Well Section as per NC’s Plan Schedule, days
149
120
96
82
92
Actual Drilling Time for the Well Section Serviced by Smith Eurasia, days
107
92
52
37
68
Time Savings Relative to the NC’s Plan Schedule, days (%)
42 (28%)
28 (23%)
44 (46%)
45 (55%)
24 (26%)
Cost Savings vs. NC’s Plan Schedule, доллары США
$293 328
$195 552
$307 296
$314 280
$167 616
Bit Costs on the Section Based on NC’s Earlier Wells
$143 520
$73 830
$74 106
$108 376
$46 230
Actual Bit Costs on the Section
$98 211
$118 964
$88 285
$83 326
$41 416
Actual Additional Savings / Overspend, $
$45 309
-$45 134
-$14 179
$25 050
$4 814
$338 637
$150 418
$293 117
$339 330
$172 430
Actual Savings on Drilled Sections of Wells, $
Smith Eurasia
1. Bit Life
2. Rate of Penetration
Selection of the
optimal range
of bits
Drilling Parameters
Drilling Mud Quality
Quality of pay-zone tapping
Working culture
Drilling operations economics
Increased overall oil production due to
quicker introduction of wells into
production
Smith Eurasia
THANK YOU FOR
YOUR ATTENTION
Smith Eurasia – Contact Information:
USA:
11767 Katy Freeway, Suite 645
Houston, Texas 77079
phone: + 1-281-556 9596
fax: +1-281-556 9277
e-mail: [email protected]
Russia:
65/4 Leninsky Prospekt
Moscow 117917
phone: + 7-095-135 0163
fax: +7-095-935 8621
e-mail: [email protected]