DeepStar ® Global deepwater technology program Advancing Deepwater Technology from Deep Reservoir through the Sales Meter Special Supplement to Field Development Planning | Marine, Subsea and Flow Assurance Consulting Asset Integrity Management | Owners & Lenders Engineer | Process, Risk & Safety Consulting Creative Solutions for Challenging Issues • ALERT We are alert to opportunities that ensure maximizing return on capital invested K13028 © 2013 KBR. All Rights Reserved. • AGILE We are nimble, flexible and unencumbered by preconception or bias • RESOURCEFUL We have exceptional resources, proprietary tools and databases that enable finding the right solution Delivering Consulting Excellence www.granherne.com DeepStar ® Global deepwater technology program Message from the Director Together we can go deeper, farther Greg Kusinski, Ph.D., DeepStar Director and Chevron Adviser to DeepStar latory agencies. It provides operators with a venue to share their collaborative space needs in a prioritized manner and then offers both hard-dollar funding (for external parties), as well as soft-dollar (internal) funding for Subject Matter Expert (SME) review and guidance. Benefits for contributor members. For Greg Kusinski, Ph.D, DeepStar Director and Chevron Adviser to DeepStar The oil and gas industry has long established a collaborative approach to reduce risks and optimize results, especially in the area of technology development for major E&P projects. In 1991, a visionary group of industry operators laid the foundation for what is DeepStar today, a highly successful initiative for technical collaboration to enhance deepwater exploration, drilling and production. The consensus-driven DeepStar consortium, which Texaco initiated and is now managed by Chevron, has evolved steadily during the past two decades. However, it has never wavered from its core mission to provide our industry with an open platform to investigate complex technical challenges and collaboratively develop safe, viable solutions. Operator benefits. DeepStar is unique, in that we leverage funding from operators to address their collective needs. The DeepStar model functions under a methodology that emphasizes efficient and effective technical collaboration between our operator members, the service and supply community, and academia, as well as regu- service-and-supply companies, DeepStar provides the clarity and prioritization of needs. DeepStar is also a winning proposition for academia, giving universities a platform to present and examine ideas, while helping prepare their students for industry careers. By engaging regulatory agencies early in the technology development process, DeepStar provides an opportunity for the agencies to better understand the technology advances, their impacts on the permit approval processes and the risk issues, well before approval is requested. Through XI phases, our technical committee members have workied diligently on subsea processing, reservoir appraisal technologies, and other initiatives to enhance deepwater operations and economics. Today, we have 30 projects in the second year of Phase XI development, with a $7.2-million budget, and expect to have at least this level of funding for Phase XII, starting in January 2014. Technology innovation. The results of this collaborative effort include new-generation risers and mooring systems, advancements in deepwater flow assurance, and ultra-deepwater drilling and production units with highly variable deck loads. DeepStar has been widely recognized as the pioneer for deepwater and ultra-deepwater flow assurance, including the industry’s most comprehensive evaluation of hydrate inhibition and asphaltene modeling. DeepStar is also undertaking initiatives to improve the efficiencies, reliability and safety of floating drilling and production systems. DeepStar efforts helped spur the introduction of polyester mooring to the deepwater Gulf of Mexico, and our efforts in furthering floating production systems have resulted in the adoption of five API standards that the regulatory agencies have, in turn, utilized and referenced. DeepStar provided reports and studies that API utilized to develop standards /Recommended Practices, which governmental agencies have then utilized to promulgate regulations. The DeepStar Geosciences Technical Committee is evaluating topics in imaging and permanent monitoring. The Met-Ocean Technical Committee, meanwhile, is modeling subsea currents unique to the deepwater Gulf of Mexico, which will help ensure safe designs, and hold the potential to save millions of dollars in drilling and development costs. Phase XI projects include the development of an integrated geomechanical model for predicting shale behavior at 31,000 ft; guidance documents for development of interface standards; and regulatory agency consideration in allowing AUV inspections as an alternative to ROVs and divers. Future is ours to manage. Clearly, our industry faces enormous challenges as we move forward—going deeper in the Lower Tertiary Gulf of Mexico, drilling through salt in deepwater Brazil, and handling the extreme challenges in remote regions of the world. As DeepStar’s 22-year history has illustrated, the intrinsic flexibility of this innovative collaboration allows for expeditious and issue-specific responses. On behalf of our past Directors, current and past Management Committee members, and countless Contributors, we thank you for taking the time to review this exceptional deepwater journey. For more information on how, together, we have accomplished so much, and how you may participate in Phase XII, please visit the DeepStar website at www.deepstar.org. D Sponsored Supplement / April 2013 3 DeepStar ® Global deepwater technology program Addressing a broad spectrum of deepwater challenges As more deepwater discoveries are made, there is a growing need for standardization of solutions to exploration, development and production problems. The DeepStar deepwater consortium continues to be the premier joint industry project for development of deepwater technology. During Phase XI, Technical committees are overseeing 30 projects, ranging from deep reservoir core analysis to seafloor processing to floating systems. In 2013, these projects are run by several distinct committees: Geosciences, Reservoir, Flow Assurance, Subsea Facilities, Floating Facilities, Drilling & Completion, Metocean and Systems Engineering. GEOSCIENCE MODELING Although shale drilling has not yet been deemed economical in deep water, shale plays a critical role in successful drilling of deepwater prospects, because there is so much of it. One of DeepStar’s Phase XI projects concerns the development of an enhanced predictive geomechanical model that will help reduce drilling cost and operational risk, when drilling and completing deepwater wells. But geomechanical conditions vary greatly from the shallow, unconsolidated shales just below the mudline to highly competent shales deeper in the geological column. Accordingly, the project targets fundamental geomechanical properties of shales, such as elastic moduli, in-situ stress and rock strength. The objective of the research is to develop an improved model for prediction of earth stress and rock mechanical properties in shale, primarily from seismic data. Inasmuch as seismic data are typically the only subsurface information available prior to drilling the first well in an area, the ability to predict dynamic and static elastic properties of the rock in advance can be of immense value to deepwater operating The DeepStar technology waterfront extends from geosciences to drilling, flow assurance, risers and facilities. The recommendations developed by DeepStar technical committees are often the basis of industry standards and regulatory specifications. 4 DeepStar / Global deepwater technology program companies. To this end, BP has made available representative sections of core taken from its Kaskida prospect in the Keathly Canyon area, U.S. Gulf of Mexico. Core samples of excellent quality have been provided to a TVD of 31,000 ft. By correlating shale mineralogy and microstructure, together with elastic properties measured from the core samples with sonic velocity and seismic properties, it is expected that a calibrated model can be constructed. Upon successful completion of the project, operators will be able to apply seismic data to the model to predict geomechanical properties of the geocolumns with improved accuracy. RESERVOIR Reservoir monitoring is the key to reservoir management. With the scale of the investments being made in deepwater and ultra-deepwater prospects, it is essential that reservoir monitoring practices and techniques be qualified for the environmental conditions. Extremes of pressure and temperature are routine events in Lower Wilcox wells, for example, but monitoring cannot be accomplished with routine technology or practices. To achieve maximum economic ultimate recovery from deepwater plays requires real-time monitoring across the entire completion interval while wells are producing. Typical environmental conditions in Lower Wilcox completions include depths of 27,500 ft subsea, 19,500 psi initial pressure, 230°F temperature and gross thicknesses of several hundred feet. But these are just averages. Some wells have reached 30,000 ft, with bottomhole pressures approaching 25,000 psi and temperatures greater than 400°F. The key parameter is time. Instruments must be able to withstand extreme temperatures and pressures for prolonged periods to monitor production. But the prize is well worth the investment. Inwell surveillance data could improve production and injection management and efficiency, resulting in billions of additional recoverable reserves. This project is intended to qualify current productionmonitoring equipment and techniques, and identify any gaps in the technology that require attention. FLOW ASSURANCE Long the bane of deepwater producers, flow assurance has attracted six Phase XI projects. Deepwater flow assurance issues can be attributed to hydrates, paraffin, scale and asphaltenes. Decidedly non-exclusive, these conditions can occur singly, or in combination. Hydrates. The first project seeks to remediate hydrate buildup in subsea gas flowlines. For many years, the traditional method of hydrate mitigation was the application of anti-freeze, typically monoethylene glycol or MEG. This solution can be quite costly. More recent solutions involve line heaters augmented by insulated pipelines that can retain heat for long distances. However, in deep water, subsea temperatures at the mudline hover just above the freezing point of water, an environment conducive to formation of hydrates in flowlines laid on the seabed. Formation of hydrates can be attributed to various thermodynamic conditions of temperature and pressure, coupled with the presence of water. Buildup of hydrate crystals can be rapid, and has been known to totally plug the pipeline, and damage valves or instrumentation. Hydrates have a strong tendency to agglomerate and adhere to the pipe wall, thereby, plugging the pipeline. Once formed, they can be decomposed by increasing the temperature and/or decreasing the pressure. Even under these conditions, the solution is a slow process. A hydrate management approach is, therefore, preferable to a hydrate mitigation approach. A fairly straightforward technique could involve avoiding the thermodynamic conditions conducive to hydrate formation, periodically altering operating conditions, or introducing chemicals or inhibitors. When operating within a set of parameters, where hydrates could Sponsored Supplement / April 2013 5 DeepStar technology managers eling technique that complements both existing prediction approaches and mitigation solutions through pigging. SUBSEA FACILITIES DeepStar has dedicated two technology managers to perform project management for the Phase XI projects: Art Schroeder (left) and Jim Chitwood. materialize, there are still ways to manage their formation. Altering the gas composition by adding chemicals can lower the hydrate formation temperature and/or delay their appearance. Options include thermodynamic inhibitors and kinetic inhibitors. The latter represent a new, evolving technology, requiring extensive tests and optimization to the actual system. Because there are so many variables, the objective of the project is development of a “Hydrate Remediation Toolkit,” to be used as a reference by field engineers. It would span the spectrum from system design to a remedial approach, where the engineer is faced with hydrate formation in an existing line. The toolkit would include the most recent technologies and equipment, as well as the most effective procedures for hydrate avoidance or remediation. The second initiative of the Flow Assurance Committee involves a study of the mechanisms that support hydrate adherence to pipeline walls, valves and instruments. The project addresses all pipelines—those designed for gas transport and those conducting multiphase fluids. Even in an oil pipeline, under the right conditions, gas can come out of solution, water can separate out, and together, they can lead to hydrate formation. A thorough understanding of hydrates, their formation and subsequent deposition can equip production engineers with the knowledge they require 6 DeepStar / Global deepwater technology program to design and operate flowlines free of hydrate problems. Third, there is a DeepStar project intended to improve our ability to detect hydrate formation before line plugging occurs. This involves developing monitoring techniques and associated technology. Sensors will be evaluated to determine those best suited for hydrate detection and monitoring of build-ups. A comprehensive flow loop at Southwest Research Inc. will be used to qualify sensors. Field measurements have been completed, and the project will proceed to analysis and evaluation. A key objective is to see if sufficient technology exists to develop an effective hydrate monitoring system, or if modifications are required. Paraffin. Wax buildup can occur at any time, and create severe flow assurance problems, particularly in deepwater lines. However, engineers have determined that there is a predictable “wax threshold,” which, if flowline conditions—specifically temperature—are maintained above it, will prevent the problem. Fortunately, well temperatures are usually above the waxing threshold, so problems do not occur until produced fluid enters seabed flowlines. The prediction of waxing has been adequate to date, so this project will not address prediction, but will focus on using available field data to benchmark various prediction models with the goal of determining a reliable formula for scheduling pigging runs to clean out wax buildup. The goal of the project is to develop a wax mod- As the industry pursues prospects in increasingly deeper waters, the most practical and cost-effective production techniques require subsea facilities. These consist of wellheads and production trees, pipeline end terminations (PLET), production manifolds, boosting stations and separators. As these proliferate, better, cheaper and safer methods of monitoring will be required. Inspection and monitoring via umbilicas and/or ROVs have have been part of the tool kit. DeepStar is doing significant work in the AUV arena to add this new tool to the kit. The overall objective, of course, is to prevent any discharge of well fluids into the sea by thoroughly inspecting and monitoring all subsea lines and equipment to identify integrity issues before a leak occurs. Over the years, effective corrosion and erosion monitoring equipment has been developed for land lines and equipment. In the case of buried lines, equipment must operate without human observation, so measurements must be conclusive. Even so, remediation on land is much easier than offshore; deep water simply exacerbates the problem. Five Phase XI projects are being conducted under the auspices of the Subsea Facilities Committee. Both external and internal inspection technologies are under study. The most common inspection technique has been through the deployment of “smart pigs” that have self-contained instrumentation to perform 360° inspections of certain lines. However, not all lines are suitable for smart pigs, either, because of small diameters or designs that exceed the ability of the pig to negotiate the bends. The idea of developing alternative technologies for inline inspection was spurred by the potential requirement to inspect all lines, even those deemed unsuitable for inline inspection. Annual savings between $5 million and $50 million are anticipated. External inspection. Two projects involve the use of external measurements to inspect subsea pipelines by scanning them from outside. The first uses X-ray technology mounted in a sled that is towed along the line. The X-ray provider has already been qualified for wet, insulated piping, and is being evaluated for its ability to inspect pipe-in-pipe systems. An additional study involves marinizing the equipment to perform its measurements reliably under deepwater and ultra-deepwater conditions. The second external inspection technique involves measuring the electrical impedance of the line, using a low-frequency magneto-resistive array sensor. Originally developed to detect internal corrosion of heavy-wall marine riser systems, the equipment is now being qualified for underwater use on seabed pipelines. Internal inspection. The traditional in-line inspection device is the “smart pig,” which has a long history of success on land. Modern versions are capable of measuring internal and external corrosion in single lines, as well as pipe-in-pipe installations. Usually, scraper, brush and gel pigs are run to clean the line before the inspection pig is run. The first project is to develop a smart pig capable of detecting micro-cracks in pipe caused by fatigue. While most seabed lines are not subject to fatigue, steel catenary risers (SCR) used to conduct production from the seafloor to floating production facilities are subject to flexure and should be inspected periodically to confirm their integrity. DeepStar is piggybacking on a Chevron initiative to develop a smaller version of a 10-in.-diameter inspection pig that can detect fatigue cracking in SCRs. According to the company, once the technique is proven, building different sizes of pigs, smaller and larger, can be accomplished with minimal work. The second internal inspection project involves a thorough assessment of technology gaps in multiphase flowline pigging operations. Many wells operate with a single flowline. Significant money could be saved, if such flowlines could be inspected effectively using smart pigs. The ability to inspect lines will save a huge CAPEX impact. DeepStar has identified a design scenario that operates using a single, multiphase flowline, and this well will be used to test routine and contingency inspections. Next steps include addressing any technology gaps discovered, and developing a DeepStar recommended practice that ultimately may result in an API recommended practice, leading to field deployment. Autonomous underwater vehicles. For many years, AUVs have been used to survey routes for subsea pipelines. This project aims to develop interface standards, allowing AUV inspections of the lines subsequent to their installation. With their greatly extended range and flexibility, AUVs are believed to be superior to remotely operated vehicles (ROVs) or deepsea divers. The project will determine the feasibility of using AUVs to perform inspections, and maintenance on subsea lines. With approved standards, suppliers will all be operating under the same set of regulations. FLOATING FACILITIES Five diverse Phase XI projects are underway in the category of floating facilities. Flexible high-pressure flowlines. The first of these projects has the objective of qualifying flexible, high-pressure 4-in.-ID flowlines, capable of withstanding 20,000 psi at 212°F at water depths to 10,000 ft. High-pressure lines are required for risers, service lines, jumpers and flowlines. Currently, they are made of rigid steel, which limits their flexibility and complicates deployment. By substituting flexible lines for the rigid ones, engineers have determined that although the manufacturing costs are comparable, there is money to be saved in deployment and installation. A four-step procedure describes the project: 1. Design the flexible, high-pressure flowline structure to API RP 17J. 2. Perform small-scale testing and material qualification. 3. Manufacture proof-of-concept samples. 4. Carry out prototype testing, according to API RP 17B. Deepwater riser parameter assessment. Vortex-induced vibration (VIV) has long been recognized as potentially detrimental to drilling and production risers. Dramatically demonstrated by the Tacoma Narrows bridge disaster of 1940 over Puget Sound, the harmonic vibration generated by even moderate current flow past a circular riser can cause destructive fatigue, leading to catastrophic failure. The purpose of this project is to provide guidance to the existing design process, identifying the important parameters and how they should be addressed. Conventional wisdom of VIV mitigation technology holds that the attachment of helical strakes to subsea risers has proven successful. However, a more scientific approach is indicated, so that physical parameters of deepwater riser design can be related to actual results. By understanding the exact influence of subsea currents on different riser designs, it is believed that more efficient and cost-effective solutions can be developed. Fiber-optic riser monitoring. Also in the category of floating facilities is a new project to test the feasibility of using distributed acoustic monitoring (DAC) by an attached fiber-optic sensor cable to monitor the riser’s position during realtime VIV. Not only will continuous monitoring of riser position in situ provide early warning of riser fatigue, but it will develop a database, a viable model and associated analytical procedures. Dry tree solutions. Several marginal fields around the deepwater environment have only a few wells. It has been proposed that for fields of four to six wells, a more cost-effective production scheme would be to use a purpose-built floating facility equipped with dry trees. The project will evaluate marginal field structure concepts, focusing on key technical performance parameters, constructability and cost advantages. Can purpose-built TLPs and spars constitute low-cost solutions for marginal fields? Mooring. Polyester ropes have been accepted as deepwater mooring media for several years. However, a recommended practice for design and deployment of polyester mooring spreads is needed. Mooring integrity management can have a significant effect on safety and asset management. A risk-based inspection program can be used to reduce costs by focusing inspections on high-risk installations or components. DRILLING AND COMPLETION Two projects address the application of electrical submersible pumps (ESPs) in deepwater and ultra-deepwater applications. Recently, large-capacity ESPs have been deployed in deepwater production. Although significant reliability improvements have been made over the years, ESPs have been historically short-lived. Nevertheless, they have many inherent benefits that justify their use. Several new developments have extended the life of ESPs; specifically, instrumenting them has enabled operators to monitor production and pump performance parameters in real time, so catastrophic failures can be avoided. Pumps have been deployed in tandem on critical subsea wells. When the first pump fails, the second takes over, continuing uninterrupted production while sending alarms to the field superintendent to organize a workover. Seabed installations can be designed for quick replacement, so downtime is minimized. Sponsored Supplement / April 2013 7 The first project is aimed at fine-tuning ESP testing programs, using input from operators and equipment manufacturers. A more robust, yet practical, testing procedure is being developed, one that would apply equally to all deepwater suppliers. The second project addresses the two main reliability gaps in ESP technology. First, the project will provide a good understanding of the pressure and temperature environment that the ESPs would be subjected to and, second, an understanding of the robustness of operating practices and surveillance techniques to keep equipment operating within its recommended range, thus avoiding conditions that could precipitate a catastrophic failure. METOCEAN The overall objective of DeepStar Metocean initiatives is to improve our ability to forecast and predict the intensity and routing of subsea currents that can potentially harm drilling and production activities. Currently, there are two projects running. TRW forecasting. Periodic Topographic Rossby Waves (TRW) can generate up to 2 knots of current over much of the water column. Specifically, the study addresses the Sigsbee Escarpment, which runs through the Walker Ridge area in the U.S. Gulf of Mexico, and is home to several high-potential blocks. TRWs have caused several drilling delays there. The potential for TRWs to cause destructive vibration in risers, TLP tendons, mooring spreads and other subsea installations demands DeepStar attention. The project will study the effects of the Loop Current that enters the Gulf of Mexico via the Yucatan/Cuba channel and exits via the Florida/Cuba channel to feed into the Gulf Stream. Complications include the periodic appearance of eddy currents spawned by the Loop Current. Data have been gathered from subsea current monitors deployed across the channels, as well as surface variables, which will be correlated with 50 years of existing metocean data and associated models. Three objectives have been identified: 1. Understand the differences between datasets regarding deep ocean circulation patterns and intensity, and couple this information with the latest Sigsbee Escarpment model to produce a dynamic forecasting ability. 2. Develop probabilistic methods for forecasting strong, deep currents 8 DeepStar / Global deepwater technology program along the Sigsbee Escarpment from sea-surface height observations. 3. Analyze model simulations to identify locations from which additional observations could be made that would benefit further studies. Project Champion, Dr. Cortis Cooper of Chevron, was awarded the 2011 OTC Distinguished Achievement Award for his work on Metocean projects. “Despite the progress, new metocean challenges continue to arise,” Dr. Cooper explained. “The offshore oil industry continues to move into frontier regions, or it adopts new facility designs that are sensitive to Metocean variables that were unimportant for earlier types of facilities. Some older, unmet challenges remain. In the Gulf of Mexico, we continue to seek improvements in numerical models of the Loop Current and better quantification of the risk of very rare tropical cyclones (i.e. 1,000–10,000-year return intervals). Worldwide, we need to better understand near-bottom currents in deep water and develop regional estimates of sea level.” The second metocean project concerns an analysis of the characteristics of hurricane and non-hurricane marine winds. The objective is to develop designstandard recommendations for modeling. If a single model could be developed for the turbulent marine boundary layer, which would apply to both the North Sea and the areas where tropical cyclones (hurricanes) are endemic, it would be most beneficial, because it could help ensure operational and asset integrity. SYSTEM ENGINEERING Three DeepStar Phase XI projects address issues categorized as system engineering. Low-salinity water injection. A previous study has shown that performing enhanced oil recovery (EOR) using lowsalinity waters in lieu of seawater increases the potential for larger oil recovery. Based upon this result, a DeepStar project has been initiated to deliver an engineering concept design for a seabed facility, capable of reducing seawater salinity in situ and injecting it into appropriate wells to enhance field production. Using abundant seawater and performing desalinization locally is expected to dramatically reduce costs while improving reservoir productivity. One idea is to test the theory that total desalinization may not be necessary; in fact, it may be beneficial to leave certain seawater ions in the injection water. The project includes provisions to include all operation, repair and maintenance considerations. Membrane separation technology is one of the leading methodologies being studied. Subsea boosting pumps. Several projects have determined that siting production facilities in shallow water is costeffective. This may require deployment of subsea booster pumps to push production from subsea wellheads to the production facility. This project will evaluate current boosting pump technologies to quantify benefits and identify limits. The qualification and evaluation of subsea boosting pump systems best for deepwater deployment is the objective. High-power ESPs. It is believed that improving ESPs within in-well electrical systems will significantly improve pump performance, resulting in reduced intervention and maintenance costs, as well as improving ultimate economic well recovery. The project has two objectives: 1. Develop generic reliability qualification standards for high-power ESP in-well electrical systems that will improve their fit-for-purpose designs. 2. Develop testing protocols that will qualify the reliability improvements. John Allen, Chairman of the Contributors’ Committee, explained how DeepStar plans to expand its base. “One of the significant strengths of DeepStar is its very active and involved vendor group. We are looking to grow both operator and vendor synergy; vendors learn operators’ needs, and operators learn the practicalities, costs and risks of possible solutions.” Allen continued, “We are also seeking input from the defense and aerospace industries to affect the reliability and integrity issues they know so well. A good example is subsea processing. In deep and ultra-deep water, equipment must perform faultlessly for very long periods,” he said. “We will need to lean heavily on advanced diagnostics and predictive techniques to manage maintenance of these new highly complex systems.” The DeepStar deepwater research and development consortium is dedicated to addressing and solving concerns and problems deemed to be common to all companies who purport to develop prospects in deep and ultra-deep water. Problems that have environmental implications can affect all players and must be proactively addressed and resolved. D DeepStar ® Global deepwater technology program Value-adding rewards of DeepStar participation Senior Advisors, who represent oil and gas operators, explain how DeepStar participation has achieved meaningful and value-adding deepwater solutions DeepStar membership includes more than 70 organizations—oil and gas operating companies, service enterprises, equipment manufacturers, and research and academic institutions—employing well over one million people and operating in all of the world’s deepwater and ultra-deepwater basins. Thus, the DeepStar program is well positioned to ensure that its research and development activities are focused on the appropriate technical challenges and leveraged to produce meaningful and value-added results. With its mission to facilitate a cooperative, global effort to identify development of economically viable methods to drill, produce and transport hydrocarbons from deep water, DeepStar has a proven, long-term record for delivering value to its membership. Its current Phase XI program is focused on global deepwater development in water depths to more than 10,000 ft. DeepStar projects during Phase XI include the development of a geomechanical model based on core analysis (left). Innovations delivered through DeepStar have helped improve the efficiency and safety of floating deepwater drilling units (center). An artist’s conception of a subsea separation system for an improved oil recovery project in the Norwegian North Sea. Photos courtesy of BP, Transocean and Statoil. MEMBER ENDORSEMENTS DeepStar has a Management Committee made up of Senior Advisors representing a cross-section of its membership. Several of these advisors offered their views on DeepStar’s benefits, advantages and successes. John Vicic of BP says, “Probably the largest advantage of DeepStar is its ability to leverage large R&D projects, thus spreading the risk and costs, while taking advantage of the best brains in the industry.” This leveraging of financial and technical resources to define and rank important deepwater technology needs allows them to be answered via a well-honed, stage-gate process. This, therefore, builds deepwater technical competency that allows members to adopt and deploy deepwater technologies. Steve Brown of Maersk Oil Houston adds, “DeepStar’s research decisions are formulated in a democratic fashion, i.e., each of its 11 members get one vote, which benefits the smaller company members, and naturally, leads to consensual working methods.” He adds that, “Larger operators, such as Chevron, BP, Statoil, etc., often have different drivers and more significant research budgets than the smaller company members, but the benefit of DeepStar is that it is charged with identifying and de- veloping technologies that are not specific to an individual company, but rather could provide advantages to everyone.” In what has been called the “operator pull,” the organization encourages its members to develop and propose research topics. In addition, new members are being recruited through the efforts of the organization, itself, and its members’ participation. According to Steven Brown, “Chevron manages the DeepStar organization on behalf of its members. The push for membership growth is thus led by Chevron, but they are doing so at the consensual agreement of all the members. I would also comment that Chevron is, in my view, doing a good job of management.” Word-of-mouth is an indispensable avenue of communicating DeepStar benefits. As John Vicic notes, “One way DeepStar encourages new membership is through the many presentations made to various industry associations, both by the organization’s staff and members.” This word-of-mouth recruiting method has been in place for most of DeepStar’s life. Luiz Souza of Petrobras says that his company, “as a DeepStar participant since Phase II almost 20 years ago, has been involved in many DeepStar industry presentations, where we emphasize the value of DeepStar as seen by Sponsored Supplement / April 2013 9 Petrobras, and describe how we manage our participation inside our company and show examples of practical utilization of DeepStar results by Petrobras.“ BENEFITS AND RESULTS DeepStar’s current members are in the best position to convey the benefits and results. Steve Brown says, “A benefit of DeepStar is that it provides a forum for technical experts from the member companies to interact with their peers and, hence, foster the knowledge-sharing environment. ”He continues, “A key question both current and potential members wish to be addressed is whether the research results are being justified by the investment, and is the research direction appropriate for their company’s strategic objectives? The answer has been yes. I’d also highlight that the consensual and democratic approach also leads to smaller companies having equal influence in the research directions that are established.” Expanding upon his earlier comments about drawing attention by making industry presentations, Luiz Souza continues, “In this way, we show to prospective interested companies the value of DeepStar in leveraging the subsea technology in a practical sense. Petrobras was a keynote presenter at the 2011 OTC DeepStar session, as one example of disseminating the value of DeepStar for oil companies.” As a coalition, DeepStar is able to provide the muscle and intelligence not normally available within a single operating company. Steve Brown states that, “Be- cause of its specially directed, and often larger, individual project budgets, DeepStar has been able to increase the amount of work that can be done, as compared to anything performed by a single operator.” John Vicic adds, “Deepwater frontier research such as flow assurance, subsea systems, floating structures, etc., is very high-risk and difficult for a single operator to take on alone. With broader input from several members, it’s more likely that the research will proceed to setting industry standards going forward, i.e., a critical mass is created early on, which can unite opinions and goals.” As Steve Brown points out, “A key element is that DeepStar focuses on subjects that are, effectively, emerging technologies. The purpose is to identify and encourage such technologies to the point where industry, as a whole, is likely to further fund the development through technology qualification. This differentiates DeepStar and leads it to focus further into the future than some other organizations. It promotes a sense of ‘blue sky’ thinking that serves to help the industry as a whole.” Over the years, some operators left the consortium and later re-joined, when their business strategies shifted more to deepwater. For instance, Statoil returned to DeepStar in 2006, when the Norwegian operator increased its deepwater Gulf of Mexico portfolio. Today, Statoil is one of the Gulf ’s top deepwater leaseholders. Others, like Brazil’s Petrobras, have remained since the earliest days. “I’ve been involved with DeepStar The largest advantage of DeepStar is its ability to leverage large R&D projects, thus spreading the risk and costs, while taking advantage of the best brains in the industry.” — John Vicic, manager, Deepwater Facilities, BP. 10 DeepStar / Global deepwater technology program “In DeepStar, the operators’ interaction goes beyond country boundaries. We have a unified objective. We can discuss ideas openly.” — Luiz Souza, production engineering & development assets area manager, Petrobras. since 1992, when I was still working in the Petrobras R&D center in Brazil,” said Luiz Souza. “In DeepStar, the operators’ interaction goes beyond country boundaries. We have a unified objective. We can discuss ideas openly.” MANAGEMENT EFFORTS This year, DeepStar has been selected as the Invited Organization for the 2013 Offshore Technology Conference in May. A major part of this privilege is a panel session on May 6. Panelists feature senior-level executives from DeepStar member companies discussing asset-driven technology needs as well as development, qualification and delivery challenges. Included are: • BP – Kevin Kennelly, VP of Technology, Global Projects Organization • Chevron – Steve Thurston, VP of Deepwater Exploration and Projects (DWEP) • ConocoPhillips – Ram Shenoy, Chief Technology Officer • Petrobras – Solange Guedes, Executive Manager of Production Engineering in Exploration and Production • Total — Alain Goulois, VP Research and Development, Total Exploration and Production • FMC – John Gremp, Chairman and CEO for FMC Technologies, Inc. • McKinsey & Company – Occo Roelofsen, Director Global Oil & Gas Practice • DeepStar – Greg Kusinski, DeepStar Director, and Chevron’s Senior Advisor to DeepStar. “The purpose is to identify and encourage such technologies, to the point where industry, as a whole, is likely to further fund the development through technology qualification.” — Stephen Brown, lead facilities engineer, Maersk Oil. DECISION TIME IS NOW While the other articles in this special section discuss DeepStar’s accomplishments to date, plus its progress during Phase XI, the group is already moving forward in its Phase XII planning. Both members and potential members are encouraged to look ahead to January 2014, when Phase XII starts. Now is the time for companies to survey their needs and gather the greatest challenges that could benefit from collaborative research and development during the next rollout of funding. Participants should begin drafting CTR (Cost Time Resource, as described below) proposals and discuss project ideas with the DeepStar staff, Committee Chairs and Senior Advisors. When interests are known, Technical Committees will begin their work to high-grade, stagegate and combine projects with similar themes. Early preparation will help ensure that a concept gets the attention it deserves and gets on track for Phase XII funding consideration. Following is a brief synopsis of the 2013 scheduling for Phase XII: • March—DeepStar First-quarter Technical Committee (TC) meetings. Ideas and CTRs should be under development by operators, service companies and academics. • May (6-9)—Offshore Technology Conference (OTC). DeepStar will make technical session presentations (May 6; 9:30 am – 12:00 pm) and will have an exhibitor booth at S18 in Reliant Center, near the main entrance. • June—CTRs are presented, discussed and screened at nine individual Technology Committee meetings. • June–September—CTRs are detailed, vetted and consolidated into distinct projects. • September—Detailed CTRs are ranked and prioritized by Technical Committees. • October—Technical Committees presents CTR proposals for Phase XII. Management Committee votes on funds for the portfolio of R&D projects. • November-December—Advisors vote on final Phase XII project portfolio funding. (During June, all nine committees reviewed submitted CTR proposals.) By Fall, Senior Advisors vote on final Phase XII portfolio of projects. The level of external spend fund- DeepStar Management Committee Senior Advisors Chevron – Greg Kusinski, DeepStar Director Anadarko – Flora Yiu, Marine Technology Manager BP – John Vicic, Manager, Deepwater Facilities Technology ConocoPhillips – Dan Smallwood, Manager Technology Development, Arctic & Deepwater Maersk – Steve Brown, Lead Facilities Engineer Marathon – Gail Baxter, Subject Matter Expert Nexen – Keith Henderson, VP, Development & Production Petrobras – Cesar Lima, Subsea Equipment Engineer; Luiz Souza, Production Engineering & Development Assets Area Manager (alternate) Statoil – Arne Lyngholm, Technology Manager Total – Khalid Mateen, VP of Engineering & Technology; Harve de Narois, Total (alternate) Woodside – Eamonn McCabe, VP Oil & Gas Development; Randy Bush, Principal Facilities Engineer (alternate) ing for Phase XII is expected to at least match Phase XI $8 million budget plus a similar amount of internal budget for member SME participation. • January 2014—Approved projects are bid, negotiated, contracted and managed. Also for Phase XII, DeepStar’s mission will include recruiting more participants, operators and contributors to increase funding and its pool of experts. While the manufacturing and service sector members compete, most DeepStar work is considered “non-competitive” between the operators, and thus, a suitable space for collaboration. This includes projects critical to support reliable and safe operations, since problems for one deepwater operator may affect the entire industry. From this comes an outstanding opportunity for Subject Matter Experts (SMEs) to collaborate and foster the exchange of ideas. The Management Committee will be encouraging “bigger impact’ projects that are conducted in a more collaborative manner, particularly with larger contributors. To better facilitate this outcome, there will be some sensible changes to the standard DeepStar Intellectual Property restrictions based on overall balance-of-value delivered to the project. DeepStar traditionally provides the collective “Voice of the Customer” to member service and manufacturing companies, allowing them to provide betterfocused, more reliable services and products at a lower cost. Leveraging on this role, DeepStar performs as a better choice vs. spinning-up new or participating in other ‘one-off ’ JIPs. DEEPSTAR SUCCESSES DeepStar has successfully identified and executed hundreds of R&D projects over its 11 Phases, which have subsequently enabled member companies to achieve their business objectives. DeepStar also expects to continue interaction with regulators to ensure that DeepStardeveloped technologies can be readily accepted for deployment and use. The strategy will continue to be one of presenting a well-defined operational need and DeepStar’s stage-gate technology development solution to regulators at an early enough point, so as to be able to incorporate appropriate action plans to address any regulatory concern without incurring development delays. RESOURCES FOR RESULTS The world’s deepwater and ultradeepwater basins hold tremendous resource promise to help meet global energy needs. DeepStar and its 70-plus member organizations have processes, procedures, and most importantly, a thousand-plus SMEs to help ensure that the most appropriate technologies are identified, and then pursued and pulled through to commercialization. DeepStar successes are numerous and have had long-term impact, due, in large part, to the operator leadership and “operator pull” on project selection. D Sponsored Supplement / April 2013 11 DeepStar ® Global deepwater technology program DeepStar program evolving to meet industry challenges The joint industry program is successful, because it is adapting to changing deepwater technology requirements of operators, service companies and equipment manufacturers Ask Dr. Greg Kusinski, DeepStar Director, if the DeepStar project will evolve into something different in the future, and he will respond that it absolutely will. As Dr. Kusinski puts it, the DeepStar alliance, with 70-plus members, succeeds because it works “to define how things will happen, but not what will happen.” That is because DeepStar was designed to respond to changing industry challenges. The 11 operator members continually identify and assess challenges through a group of Senior Advisors working in concert with subject matter experts from nine Technical Committees. While all classes of members may propose projects, the final funding decisions are made by the operators. The important challenges are then translated into actionable items by the operator members, with one operator as the Champion, responsible for the successful execution of the project. Service and supply contributing members, and academia, join the process, contributing expertise, technical support and funding. Dr. Cort Cooper, Chair of the Metocean Committee, examines meteorological data from the Gulf of Mexico. That is the “how things happen” aspect of DeepStar. The “what will happen” depends on the challenges identified, and the solutions that result. Within this framework, DeepStar has specific goals. These include: • Improve the profitability, execution, operability, flexibility and reliability of existing deepwater production system technology (i.e., enhance existing technology). • Develop new technology to enable production in areas that are currently unproven with the specific, ultimate goal of developing technology required for economic production in water depths up to 12,000 ft (i.e., develop enabling technology). • Work to ensure the acceptance of deepwater technology by: –– Facilitating the development of industry standards and practices, as appropriate. –– Fostering communications with regulatory bodies. –– Acting in a facilitator role, providing a forum and a process for discussion, guidance, and feedback 12 DeepStar / Global deepwater technology program with contractors, vendors, operators, regulators and academia regarding deepwater production system technology capability gaps, and promoting standardization of component interfaces. These goals are accomplished via the following execution strategies: • Technology development aligned with business needs • Transfer and apply technology to deepwater assets • Gain acceptance of deepwater technologies by industry, standards organizations and regulators • Focus on the front end of the technology development cycle by advancing critical fundamental knowledge (science), providing proof of concepts and performing techno-economic engineering audits. DEEPSTAR TODAY DeepStar’s history spans more than 22 years, culminating in Phase XI, which runs through December 2013. Phase XI builds on the previous phases’ successes, which include: • Polyrope development, recommend practices and standards, and regulatory approval • FPSO standards and regulatory approval • Vortex induced vibration (VIV) understanding, prediction, mitigation and control • Met-ocean understanding, prediction, and design practices and standards • Promulgation of standards and regulations • Flow assurance management, including modeling, operations and remediation The DeepStar program now has a number of ongoing projects addressing major challenges to the deepwater industry that follow on work in the previous phases, including geosciences, flow assurance, subsea facilities, floating facilities, drilling and completions, reservoir, metocean and systems engineering. Results from these areas of research are, and will continue to be, focused on the world’s deepwater and ultra-deepwater basins. Examples of ongoing DeepStar projects are illustrative of the problems addressed by the consortium. Project 10204, Comprehensive Dissociation Model, provides a good example of DeepStar research initia- tives. The goal of this project is to conduct hydrate dissociation experiments in a 3-in. x 60-ft long pipe using thermodynamic inhibitors (MEG) and nitrogen. A dissociation model to predict dissociation times as a function of inhibitor flowrate and concentration will be developed. The project will take 21 months to complete, winding up in June 2013. Hydrate plugs will be made on the University of Tulsa (TU) hydrate flow loop in the low-spot configuration, where A geoscience project underway during DeepStar Phase XI concerns the development of more predictive geomechanical model based on evaluation of a core sample acquired at 31,000-ft TVD acquired from BP’s Kaskida project in the Keathley Canyon area of the Gulf of Mexico. The study will help develop geoscientists calculate fundamental geomechanical properties of shale, such as elastic moduli, in-situ stress and rock strength, that are needed to plan mud weight and casing schedules for deepwater well construction projects. Image courtesy of BP. The DeepStar Metocean Committee is working on projects to improve understanding the powerful ocean currents generated by the Loop Current and Topographic Rossby Waves (TRW), resulting in more accurate engineering design tools. Image courtesy of National Oceanic and Atmospheric Administration (NOAA). The DeepStar Floating Facilities Committee has led the initial Gulf of Mexico work for polyester mooring, steel catenary risers, vertically loaded anchors, vortex induced vibration, low-motion vessels, and model testing tools. Image courtesy of SBM Atlantia. gas is bubbled through the water column to make the hydrate plug. The permeability of the plugs will be measured, and density scans of the pipe will be taken. These parameters will be measured during the dissociation process, as well as the composition of the gas and water phase being released during dissociation. The current TU inhibitor model is a first-generation model. It calculates the dissociation time for dissociation of a structure I methane/freshwater hydrate by nitrogen or MEG at 1,500 psia. Fourier’s law for heat conduction in cylindrical coordinates is used. The initial model was limited to a plug of given length and did not account for axial dissociation. The model will be improved to chain several segments together and track the dilution of the inhibitor along the plug. Flexibility to the program must also be added to handle gases other than methane, other hydrate structures, inclusion of saline water, other pressures and other inhibitors. This will require the connection of the model to a thermodynamic package to determine equilibrium data. Validation of the model with experimental data will be done at each step. DEEPSTAR GOING FORWARD Solicitations for DeepStar Phase XII will be issued soon. According to Jim Chitwood (DeepStar Technology Manager), Phase XII will address continuing and emerging issues, particularly “standardization, reliability and quality, integrity management and system engineering.” • Standardization. This topic is expected to focus on subsea equipment and tool interfaces. Specifically, it should address the question of why every major capital project has customized designs. • Reliability. When addressing reliability, the group hopes to examine methods and processes for improvement of systems, especially with regard to initial construction. • Integrity management will deal with keeping equipment and systems operating safely over the life of the installation, and will include collection of inspection data and analyses of its significance. • System engineering will attempt to ensure that facilities are planned, constructed and operated in an integrated manner. D Sponsored Supplement / April 2013 13 Committee chairs explain technology development Cort Cooper Paul Devlin Walt Bozeman Gene Narahara Cort Cooper, Chevron, Chair: Metocean Walt Bozeman, BP, Co-Chair: Reservoir “Meteorologic and oceanographic (Metocean) phenomena, such as wind, waves and currents, affect all aspects of a deepwater facility, from design concept to capital cost, operating cost, and safety. In essence, the overall cost to develop, operate and maintain an offshore field is strongly dependent on the local metocean conditions. Hence, a sound investment requires that the metocean variables of importance in a region be properly understood and accurately quantified. Nowhere is this truer than in the deepwater Gulf of Mexico, where there is a variety of powerful storms and currents, some of which are poorly understood. For the past 15 years, the DeepStar Metocean Committee has spent most of its effort on better understanding the powerful ocean currents generated by the Loop Current and Topographic Rossby Waves (TRW), and this work has resulted in much more accurate design tools. The Metocean Committee has also studied wind data collected from recent hurricanes and found that existing industry standards for wind profiles can be improved substantially. These results will almost certainly lead to revisions in API recommended practices.” A Chevron Fellow, Dr. Cooper is a three-time winner of the Corporate Leader award from the U.S. Minerals Management Service (now BOEM). He serves on three National Academy of Science committees and other government advisory committees. He is asked frequently to testify before the U.S. Congress on oil and gas issues. A frequent lecturer at Harvard, Princeton and MIT, Dr. Cooper has co-authored six books and 48 technical papers. “The Reservoir Committee is always looking for leveraging projects, utilizing our expertise in the reservoir engineering field, that can be advanced with public domain data, engage and interest the member companies; and advance industry deepwater issues. This combination sometimes proves challenging with the proprietary nature of subsurface data and differences in the involvement maturity of participating companies, and their portfolio of deepwater assets. We have found common ground on numerous projects, including Gulf of Mexico deepwater appraisal, waterflooding and reservoir surveillance. Being able to describe the reservoir accurately, despite huge advances in seismic imaging, still proves an immense challenge, as does enhancing recoveries from waterflooding and improved oil recovery (IOR). The committee will continue to look for opportunities to advance reservoir engineering issues for the established Miocene, the immature Wilcox and, hopefully, new emerging plays in the deepwater Gulf of Mexico. Paul Devlin, Chevron, Chair: Floating Facilities “The DeepStar Floating Facilities Committee continues to build upon a great past and works to address the issues of offshore field development. This committee has led the initial Gulf of Mexico work for polyester mooring, steel catenary risers (SCRs), vertically loaded anchors (VLAs), vortex induced vibration (VIV), low-motion vessels, and model testing tools. As we look to the future, Integrity Management of floating systems, and their moorings and risers, is a key issue. In addition, we will continue to evaluate alternative technologies (such as risers), which may have economic impact.” 14 DeepStar / Global deepwater technology program Gene Narahara, Chevron: Co-Chair, Reservoir “The Reservoir Committee has been focused on the appraisal phase of deepwater development. The reason is based on a look-back study of a deepwater appraisal in the Gulf of Mexico, which indicated that the ability to forecast production rates and reserves prior to sanction, with only data collected during the appraisal phase, has been very inconsistent and generally poor. The look-back study included 28 fields covering most operators in the deepwater Gulf of Mexico, indicating that this is an industry-level problem. The Reservoir Committee has concluded that the inconsistent forecasting is due to inadequate data collection during appraisal, and has focused on identifying the key data needed, and better (lower cost) ways of obtaining these data. “The Reservoir Committee is beginning an initiative into reservoir surveillance. In particular, we are investigating the advancement of technology in in-well surveillance data acquisition and processing, including the vertical profile of the three-phase production. The success of improved oil recovery is tied to reservoir surveillance, and the step changes in in-well surveillance will help enable the success of deepwater IOR & EOR projects.” DeepStar ® Global deepwater technology program Phase XI Participants Phase XI Contributor Members 2H Offshore Inc. Aker Subsea Inc. Alan C. McClure Associates Alcoa Inc. Altair Engineering Inc. American Bureau of Shipping AMOG Consulting Inc. Baker Petrolite Corporation Battelle Memorial Institute Betchtel Blade Energy Partners BMT Reliability Consultants, Ltd. Bornemann Pumps Cameron Champion Technologies, Inc. CSI Technologies, LLC Daewoo Shipbuilding & Marine Engineering Co., Ltd DNV Doris Engineering EDG, Inc. Floatec Fluor Enterprises, Inc. FMC Technologies Frank’s International, Inc. GE Oil & Gas (Vetco Gray Inc.) Genesis GL Noble Denton Granherne, Inc. GVA Consultants Halliburton Harris, Corp Hytorc of Texas, Inc. IntecSea InterMoor Inc. Knowledge Reservoir Lighthouse R & D Enterprises Lockheed Martin Corporation Magma Global Ltd. Marintek USA Inc. MMI Engineering, Inc Moog Inc. MSi Kenny Nalco Energy Services National Oilwell Varco Nautilus International, LLC Oceaneering International, Inc. Oil State Industries. Inc. Pipeline Research Council Int’l Inc Pulse Structural Monitoring, Inc QinetiQ North America, Inc. READ ASA Saipem S.A. SBM Atlantia, Inc. Schlumberger Technology Corp. Scoperta, Inc. Seabox Seatrepid International, LLC Siemens Energy Silixa Sonomatic, Inc. Southwest Research Institute Stress Engineering Texas A&M University Universal Pegasus International University of Houston Water Standard Management Weatherford, Inc. Wood Group Kenny For more information on DeepStar, the world’s premier deepwater collaboration and technology development organization, please visit www.DeepStar.org Sponsored Supplement / April 2013 15 Can we be confident that this deepwater drilling program will achieve all our well objectives? Confidence comes from understanding your risks and preparing for them. 1 /3 of deepwater drilling NPT is associated with geomechanics-related problems, with total NPT increasing by a factor of four for subsalt wells in water depths over 3,000 ft. With basin and well-level geomechanics modeling experience in every major province, combined with industry-leading Drillbench dynamic well control software applied through a global network of PTEC PetroTechnical Engineering Centers, we will help you meet your deepwater objectives. Drill with confidence. slb.com/deepwater ©220013 SSchlum ©20 © ©201 hlumberg hlu lum uum mberg be er.r 13-D 3-D DW W-00 -00010 10 10 PPTEC PT TECC iss a ma marrkk of Sc Schlum Schlum um umberg mberg bber be erg rgger er. Dri er. Drrrilllben Dril llbe bench is is a reg reegiste iss erred eedd trad trademar emark emar mar ark off SP SPT SPT P Gro rrooup. upp