E&P Notes (August 2014)
Authors: Jacobs Trent , Rassenfoss Stephen , Henni Abdelghani 
Published: February 2015

E&P Notes

’High-Pressure/High-Temperature BOP Equipment Becoming a Reality’

The offshore industry has taken another step toward opening up new deepwater frontiers to exploration with Maersk Drilling ordering the first 20,000-psi blowout preventer (BOP) made by GE Oil and Gas. The BOP is expected to be delivered in the first half of 2018 and is part of a multiyear collaboration between Maersk and BP to design a new generation of offshore drilling rigs for deepwater basins dubbed “20K Rigs.”

The ultimate goal is to enable the development of highpressure/ high-temperature reservoirs with pressures up to 20,000 psi and temperatures as high as 350°F. The technical limit of the highest-rated BOPs in operation today is 15,000 psi and 250°F. BP believes that with the 20,000-psi BOPs, and other technologies in development, it will be able to develop fields that may add an additional 10 billion to 20 billion BOE across its portfolio.

 

’Refracturing Success Demands a Better Understanding of Past Failures’

Refracturing older unconventional wells is likely to reward those willing to investigate the reasons why production declines and what can be done to restore it, according to George King, distinguished engineering adviser at Apache Corp.

King talked about what has been learned from refracturing wells, and why companies need to invest in answering the questions that remain unanswered in this young branch of the exploration and production (E&P) business. “We are going to have to look for better ways of fracturing initially and refracturing these wells,” he said during a webcast, which can be found under online events at SPE.org.

 

’US Approves BP's use of Unmanned Aerial Vehicles in Alaska’

In June, the United States Federal Aviation Administration (FAA) issued the first approval for the overland use of unmanned aerial vehicles (UAVs) in Alaska. The authorization was granted to BP and UAV maker AeroVironment for aerial surveys of roads and pipelines in Alaska’s prolific North Slope oil fields. Last year, the FAA issued a more restrictive approval to BP and ConocoPhillips that allowed the companies to fly UAVs over Arctic waters, and only during optimal conditions.

BP and AeroVironment carried out the first approved flight on 8 June, using a Puma AE, a hand-launched vehicle that is 4.5 ft long with a 9 ft wingspan. BP intends to use the lightweight UAV for “high-accuracy” land surveys and for map making to identify maintenance requirements on roads and infrastructure. “The (unmanned aerial system) technology has potential to improve safety, efficiency, and the reliability of BP’s Alaska North Slope infrastructure and maintenance programs,” said Dawn Patience, a BP spokesperson.

 

’BHP Billiton Testing New Methods To Maximize Returns on Completions’

Running a shale exploration and production operation requires a sharp focus on costs, but not all are measured the same. BHP Billiton’s method for evaluating the cost of drilling an unconventional well is different from the one used to gauge the cost of completing one.

The difference reflects the potential production upside of spending more to fracture formations more effectively compared with drilling. BHP is seeking ways to create more productive fracture networks by manipulating the stresses in the rock between wells, and seeking efficient ways to go back into older wells without the cost of the hardware needed for the initial fracturing work.

 

’Saudi Aramco Wants Fields Fully Smart by 2017’

Saudi Aramco’s new strategy aims to implement its intelligent field (I-Field) concept in all its upstream operations by 2016-2017, according to a source close to the company.

The move is part of the company’s efforts to be more proactive in field management and move toward a vision of autonomous fields. “All of Saudi Aramco’s fields are set to be intelligent by 2016- 2017,” the source said.

Saudi Aramco is considered one of the leading national oil companies to adopt a smart field initiative through the I-Field concept, which integrates real-time data in its upstream business processes. It currently has 19 I-Fields underway.

 

’Saudi Aramco Aims to Slash Costs’

Saudi Aramco is working on slashing the production cost of tight formations to around USD 2 to USD 3 per thousand cubic feet in the next couple of years, according Adnan Kanaan, manager of the Gas Reservoir Management Department (GRMD) at Saudi Aramco.

Kanaan said that his company expects to reach its target that may lead to a break-even cost that would equal the best unconventional plays in the US. “We are seeing good signs from the sandstones and good costs in our drilling and completions,” Kanaan said during the 21st World Petroleum Congress held recently in Moscow.