Slim-Hole and Coiled-Tubing Technology Dr. William J. McDonald Thomas E. Williams PTTC Technology Seminar Lafayette, LA December 5, 2000 TT00-63 1 Drilling Engineering Association (DEA) Sponsors Joint-Industry R&D Projects 28 Members (Operating Companies) 22 Associates (Service Co’s and Consultants) Currently 113 projects Typical Most project: 10-15 participants successful DEA projects: DEA-44 Horizontal Well Technology DEA-67 Slim-Hole and Coiled-Tubing TT00-63 2 DEA-67 Slim-Hole and Coiled Tubing Technology TT00-63 Sponsors: Texaco & BP Start Date: January 1, 1992 End Date: December 31, 2000 Participants: 65 Tasks: 22 Budget: $3 Million 3 DEA-67 Tasks 1. Update Software 2. New Software 3. User’s Group 4. New Technology 5. Drill-String Design 6. Motors and Bits 7. MWD and Geosteering 8. Well Control 9. UB Drilling/Completion 10. Logging Tools 11. Perforating Systems TT00-63 12. Completion Techniques 13. Stimulation Techniques 14. Production/Workovers 15. Through-Tubing 16. Field Tests 17. Case Histories 18. Well-Planning Manual 19. Composite Tubulars 20. Multibranch CT 21. Schools 22. Forums 4 DEA-67 Deliverables Major reports Computer TT00-63 programs 6 9 Forums 6 Schools 8 5 Advances in Slim-Hole Technology TT00-63 6 Summary Slimholes: -Reduce Well Costs 40 to 70% -Reduce Environmental Costs & Concerns -Tools and Equipment Exist, and are Available and Reliable -Safe -Do Not Usually Limit Production TT00-63 7 Overview Historical Types Background of Slim-Holes Slim-hole Cost Savings Evolution and Experience Concerns and Conclusions Outlook TT00-63 8 TT00-63 93 96 87 90 81 84 75 78 69 72 63 66 57 60 51 54 45 48 39 42 Number of Publications Publications on Slim Hole 60 50 40 30 20 10 0 YEAR 9 Stekoll Slimhole Pumping System (1960) 1” Tee Rubber Hose Clamp Flow Line Conventional Stuffing Box Gas Vent Polished Rod Liner 2 7/8” Casing 1” EUE Pumping String Blind Cage Traveling Barrel Insert Pump Screen TT00-63 Slip-Type Hold-Down with Rubber Removed 10 Stekoll Field Well (1960) TT00-63 11 STEKOLL Field Experience (1960) Over 1,300 Wells: Kansas, Texas, Canada 1,000 1” to 3,000 Foot Wells EUE Tubing (Hollow Sucker Rod) 2-1/2” & 2-7/8” Inch Casing 70 BOPD 40 to 50% Reduction in Tubular Costs 17% TT00-63 Overall Cost Savings 12 STEKOLL Slimhole Operations (2-7/8”) Drilling & Logging Perforating Acidizing Fishing & Squeeze Cementing & Fracturing & Washovers Sand Bailing Dual Completions TT00-63 13 Hollow Sucker Rod Advantage “The hollow sucker rod combines the function of the sucker rod and the tubing, so it is no longer necessary to pull both sucker rods and tubing when working over wells.” STEKOLL, 1960 TT00-63 14 STEKOLL System Limitations (1960) Limited Slimhole Logging Tools Workover Tubing Concerns Failures Resistance to Slimholes Resistance to New Technology TT00-63 15 Continuous Coring TT00-63 Rotary Drilling Mud Motor Collar Core Barrel Slim-Hole Systems Downhole Motor 16 Amoco SHADS Rig (Continuous Coring) Drawworks Sandline Hydraulic drive Wireline overshot for core retrieval Top drive (0-2250 rpm) Slim annulus (<1/2”) Wellbore Flush-joint drill rod 4-3/8” core bit (0-10,000 lb WOB) TT00-63 17 Slim-Hole Motor Drilling in Wyoming Amoco (1995) TT00-63 18 TT00-63 19 Microdrill Slim-Hole Rig (Rotary Drilling) TT00-63 20 TT00-63 21 Slim-Hole Drilling Site Slim-Hole Site 160 ft (BP, 1994) 330 ft 200 ft Conventional Site Site Reduced by 75% 390 ft TT00-63 22 Material Cost Savings (3” vs. 8”) 80 80% 70 70% % Savings 60 50 40 40% 30 20 10 0 MUD TT00-63 CASING CEMENT 23 MICRODRILL COSTS (1500-5000 ft DEPTH) TT00-63 24 Slim-Hole Drilling and Completion Cost Savings TT00-63 25 SLIM-HOLE RIG COSTS (McLAUGHLIN, 1959) 1,000 DAILY COSTS ($) 800 800 5 MEN 625 600 525 4 MEN 4 MEN 400 335 3 MEN 200 0 9" 6 3/4" 5 5/8" 3 3/4" HOLE SIZE TT00-63 26 SLIM-HOLE CASING AND TUBING COSTS (McLAUGHLIN, 1959) 7" CASING 2 7/8" TUBING RELATIVE COST 5 1/2" CASING 2 3/8" TUBING TT00-63 4" CASING 1 1/2" TUBING 2 3/8" CASING NO TUBING 27 40% Savings For 5000-ft WELLS (BONSALL, 1960) TT00-63 28 Savings For 5000-ft Wells (cont.) SLIM HOLE ($) CONVENTIONAL % OF TOTAL ($) SAVINGS ACID 150 600 3 LOGGING 850 850 -- PERFORATING 450 350 -1 FRACTURING 3300 4500 8 LOCATION EXPENSE 2500 2500 -- MUD 1000 1000 -- CORE ANALYSIS 200 200 -- 37,470 52,220 100 TOTAL: 2209314X TT00-63 DEA-67 29 Cost Savings with Slim Holes OPERATOR LOCATION SAVINGS YEAR Hudson's Bay Canada 28% 1959 Western Mining Australia 75% 1984 Oryx Texas 50% 1991 Elf/Microdrill Paris Basin 65% 1992 Maraven Venezuela 20% 1994 Chevron California 66% 1995 Wilcox Operators Texas 15% 1995 GUPCO/Amoco Gulf of Suez 20% 1995 Shell Madagascar 40% 1996 ARCO Alaska 26% 1996 Remote Coring Operations TT00-63 30 SLIM-HOLE COSTS 6.0 (WESTERN MINING, 1984) WELL COST ($ MM) 2000m TD DRY HOLE ONSHORE 4.0 CONVENTIONAL 2.0 0 LOCAL SLIM HOLE REMOTE LOGISTICS TT00-63 31 Conoco Indonesia Slim-Hole Costs (MACFADYEN et al., 1986) 1980-81 (CONV) 1983 (SH) 1985-86 (SH) 5 3 12 7,670,000 4,680,000 2,060,000 TOTAL FOOTAGE 18,962 11,740 29,179 AVERAGE DEPTH 3,792 3,913 2,432 2,770,000 960,000 760,000 NO. OF LIFTS 317 187 100 NO. OF DAYS 16 9 5 HELICOPTER PUMA PUMA S-58T NUMBER OF WELLS AVERAGE WELL COST DRILLING DRILLING COST/WELL LOGISTICS TT00-63 32 ORYX HORIZONTAL SLIM-HOLE COSTS (HALL AND RAMOS, 1992) TT00-63 33 1991-92 ORYX SLIM-HOLE RE-ENTRIES (HALL AND RAMOS, 1992) DAYS DEPARTURE LATERAL COST TOTAL COST 18 1458 3.88 (CT) 0.63 38 2018 3.31 0.74 24 2002 1.84 0.41 21 2692 1.46 0.43 20 2242 1.83 0.45 18 1927 2.36 0.50 14 1600 1.75 0.31 22 1900 2.60 0.54 AVG 22 1980 2.38 0.50 1991 CONVENTIONAL COST = 1.00 TT00-63 34 ORYX'S CONCLUSION (1992) TT00-63 35 Domain Energy Slimholes (1995) Cased Hole Open Hole 7-7/8” Hole 1518’ 5-1/2” Casing 9-7/8” Hole 1520’ 4-3/4” Hole 7-5/8” Casing 4-3/4” Hole Inflatable Casing Packer Cement 10697’ TD 10926’ TT00-63 2-7/8” TD 10909’ Production Casing 2-7/8” Production Casing 36 Domain Energy Slim-Hole (1995) TT00-63 Location: Green River Basin, WY Rig Modification: Bowen S3.5 Power Swivel Hole Diameter: 4-3/4 inches Casing Diameter: 2-7/8 inches Drill Pipe Diameter: 2-7/8 inches Collar Diameter: 3-1/2 inches - 3 stabilizers Motor Diameter: 3-3/8 and 3-3/4 inches Drilling Rate: Up to 2x increase Problems: 4 Twist-offs (stabilizer torque) Successes: Cementing/Logging/Perforating Cost Savings: Breakeven (due to twist-offs) 37 Domain Energy Slim-Hole Problems (1995) Slim-Hole No. 1 Slim-Hole No. 2 Hole deviation (no stabilizers) Low ROP (reduced WOB due to hole deviation) Stuck pipe - 8,085 ft (stabilizer torque) Fishing - back-off, spear, 4 trips (7 days) Logging - problem running tool Slim-Hole No. 3 TT00-63 Plugged bit nozzles - 1,006 ft Motor twist-off (stabilizer torque) - 7,071 ft Fishing - 3 trips Motor twist-off (stabilizer torque) - 1,004 ft Fishing - 3 trips (23 hours) Motor twist-off (stabilizer torque) - 5,187 ft Fishing - 1 trip (grapple) Lost cone - 10,871 ft (drilled with rock bit) 38 Unocal Thailand Slim-holes (1999) Conventional SSSV Slimhole 13-3/8” @ 1000’ 9-5/8” @ 4500’ SSSV Ultra Slim 9-5/8” @ 850’ 7” @ 2500’ SSSV 7-5/8” @ 850’ 5-1/2” @ 2500’ 6-1/8” Hole 4-3/4” Hole 2-7/8” TBG @ 4500’ 2-7/8” TBG @ 4500’ 2-7/8” TBG 7” @ 10000’ TT00-63 39 Unocal Thailand Slimholes (1999) 1.3 1.4 Well Cost ($millions) 1.2 1 0.8 0.75 0.6 0.4 0.2 0 Slimhole TT00-63 (4-3/4”) Conventional (8-1/2”) 40 Cumulative Gas Production (MMSCF) Unocal Gas Production Rates (1999) Slimhole Wells Conventional Wells 0.00 TT00-63 500 1000 1500 Time (days) 2000 2500 41 Unocal, 1997 “Slimhole development has completely Transformed the future of Gulf of Thailand Operations and has paved the way for Operators to continue providing a longterm economic supply of gas to the Kingdom of Thailand” TT00-63 42 Pemex Slimholes (1998) Conventional Slimhole 17-1/2 Drill Bit 150 m 13-3/8” Casing 12-1/4 Drill Bit 150 m 12-1/4” Drill Bit 1650 m 9-5/8” Casing 9-5/8” Casing 8-1/2” Drill Bit 1650 m 7” Casing 2-7/8” Tubing 3000 m TT00-63 Packer Cement 8-1/2” Drill Bit 5-7/8” Drill Bit 7” Casing 3000 m 3-1/2” Tubing 43 Pemex Slimholes (1998) 45 42 Cost Savings (%) 40 35 32 31 30 30 25 20 16 15 13 12 Wellhead Cement 10 5 0 Mud TT00-63 Rig Casing Time Tubing Bits Overall 44 Texaco Dual Completion Slimhole 17-1/2 Hole 2,500’ 13-3/8” Casing 12-1/4” Hole 8,000’ 9-5/8” Casing 2-7/8” Tubing 10,500’ Cement 8-1/2” Hole 12,500’ TT00-63 2-7/8” Tubing 45 Slim-hole Well Concerns Casing Program Drillstring Fishing & Milling Increased Bit Torsional Strength ECD (lost circulation) Design and Reliability Downhole Motors(cost & reliability) Cementing (primary & squeeze) Stimulation Workovers TT00-63 46 Slim-hole Well Non-Concerns Logging Perforating Tubing buckling & sticking Wellhead BHA TT00-63 design design 47 Conclusions Slimholes: -Reduce Well Costs 40 to 70% -Reduce Environmental Costs & Concerns -Tools and Equipment Exist, and are Available and Reliable -Safe -Do Not Usually Limit Production TT00-63 48 High-Power Slim Motors Long Power Section Universal Jt Bearing Pack Standard Power Sections TT00-63 49 Leniek Pumping System (1999) 1-1/2” Hydraulic Hose Clamp Production Line Stuffing Box Gas Vent Hollow Polish Rod 3-1/2” Cemented Tubing 2” Coiled Tubing Hollow Rod Pump Screen TT00-63 Anchor 50 Leniek CT Pumping System Conventional Surface Equipment 1,000 to 5,000 Feet 2-7/8” or 3-1/2” Casing (CT or Tubing) 1-1/2” CT (Hollow Sucker Rod) Hollow Polish Rod Hollow Rod Pump TT00-63 51 YPF Installation TT00-63 52 Leniek System Advantages Reduce Well Construction Cost 50 Percent Eliminates Tubing Thread Failures Eliminates Tubing Anchors Reduce Lifting Costs Reduce Paraffin Problems Reduce Casing Wear Treat Wells Through CT Eliminate Rod Failures Allows Ultraslim Holes TT00-63 53 Advances in Coiled-Tubing Technology TT00-63 54 Overview History & Evolution Current Status Conventional Coiled Operations Tubing Drilling (CTD) Outlook TT00-63 55 Publications on Coiled Tubing Number of Publications 120 100 80 60 40 20 96 94 92 90 88 86 84 82 80 78 76 74 72 70 68 66 64 0 YEAR TT00-63 56 Evolution 1944 Allied Invasion Europe 1962 Bowen CTU 1975 - 200 Units - 1-1/4” 1980 - Improved Pipe/Welding 1983 - Continuously Milled 3000’ 1987 - Bias-Welded Strips 1992 - 2-3/8” to 3-1/2” OD CT 1999 - 110 ksi CT TT00-63 57 Today 750 Units Worldwide 50% Few in North America Pipe Failures Multiple CT TT00-63 Applications Pipelines 58 Common Applications Clean outs (50%) Stimulations Profile Modifications Perf/Log Artificial Sand TT00-63 Lift Control 59 Coiled-Tubing Applications Clean-out Downhole Tools Stimulation Nitrogen Lift Drilling Logging/Perf Jetting Fishing Cementing Source: Quality Tubing TT00-63 60 Cost Savings with Coiled Tubing OPERATOR ARCO Alaska Fracmaster BP (North Sea) Chevron Amoco (GOM) BP Alaska Mobil Amoco JOB SAVINGS YEAR Cement Squeeze 90% 1987 Pipeline Cleanout 90% 1988 Barium Scale 80% 1990 Velocity String 59% 1992 Zinc Sulphide 94% 1993 Spoolable GL 68% 1993 Fracturing 21% 1994 TT Gravel Pack 80% 1996 Workovers Completions TT00-63 61 TT00-63 62 TT00-63 63 TT00-63 64 TT00-63 65 TT00-63 66 TT00-63 67 TT00-63 68 Support Pole Hybrid Coiled-Tubing/ Snubbing Rig (Hydrarig) CT Injector Injector Trolley Substructure Jack Cylinder Quad BOP TT00-63 69 Oman Large-OD CT Completions Taylor and Conrad (1996) Slim Concentric Water Injector ESP Well Slip Connection ESP cable Slip connector Landing nipple Protector Motor Centralizer 7” K55, LTC TT00-63 Velocity String Top CT plug 2-7/8” CT 1-1/2” CT 4-1/2” Tie back 3-1/2” CT Pump Gas Lift Well Gas lift mandrels 13-3/8” casing 4-1/2” Tie back 2-7/8” EU nipple 5-1/2” x 2-7/8” production packer 3-1/2” tubing Gas lift mandrel Bottom hole press. gauge Sliding sleeve circulating device 7” packer 3-1/2” nipple 7” shoe Hyd. set retrievable packer Production packer 2-7/8” EU nipple 70 ARCO Coiled-Tubing Liner Production tubing Hydraulic set packer Open-hole well (possibly drilled with coiled tubing) CT liner Pre-perforated CT liner with optional screen Pay Zone TT00-63 71 CT Steam-Injection System Coiled Tubing Injector Steam Generator BOP Wellhead Oil Reservoir Steam 8000’ Pearlite Oil Oil Steam Casing TT00-63 Production Tubing Slotted Liner Concentric CT 2-7/8” CT 1-3/4” CT Concentric CT Cross Section 72 Coiled Tubing Drilling (CTD) History of CDT Current Status Demographics of Current Activity Advantages and Limitations Where are we headed with CTD? TT00-63 73 Coiled-Tubing Drilling System Injector Reel Power Supply 2” CT with Wireline Connector Guidance System Whipstock or Cement Plug Orienter TT00-63 Mud Motor Bent Sub Bit 74 Why CTD or Why Not ? Continuous Circulation Pressure Control Footprint, Environmental LWD, Geosteering, Joystick Operation Deepenings, Side-Tracks Through-Tubing Capable Costs? Availability Acceptance TT00-63 75 Brief CTD History 1991 - Elf/Dowell & ORYX/Cudd 1992 - Arco first window & MWD 1994 - First North Sea CTD wells 1994 - Maersk 3000’ Horizontal well 1995 - 200+ CTD Wells Worldwide 1999 - 1200± CTD Wells TT00-63 76 Schlumberger Electrically-Controlled CT Drilling System 2" CT Drilling Head Logging/Steering Sub Bit Electric Orienter Motor 7-Conductor Wireline Schlumberger “Viper” BHA TT00-63 77 Transocean Hydraulically-Controlled CT Drilling System 2" CT Connector Hydraulic Orienter Check Valves/ Release Sub Bit Logging/Steering SubMotor Monoconductor Wireline 1/4" SS Hydraulic Tubing Transocean Dual-Capillary BHA TT00-63 78 Camco Electrohydraulic Umbilical CT Drilling System 18 AWG Conductors Protective Sheath Hydraulic Oil 3/8” x 0.65” Hydraulic Tubing TT00-63 Thermoplastic Insulation 79 Arco CTD History 1990-Initial interest for PRB ST 1991-Initial ST effort unsuccessful 1992-94 Oklahoma Window Milling Tests 1992-Successful 1993-Prudhoe ST in West Texas program started 1994-95 THUMS Efforts, 1997++ Algeria, Indonesia, CA, NM... TT00-63 80 ARCO Summary (1999) 120 120 100 80 60 40 20 0 TT00-63 11 1 Alaska California New Mexico 1 Texas 3 Indonesia 1 Algeria 81 TT00-63 82 TT00-63 83 TT00-63 84 TT00-63 86 TT00-63 87 TT00-63 88 Running 3 1/2” CTC after CTD TT00-63 90 TT00-63 91 TT00-63 92 TT00-63 93 TT00-63 94 TT00-63 96 TT00-63 97 TT00-63 98 Typical CTD Completion at PRB TT00-63 100 Bottom Hole Assembly TT00-63 101 Surface Testing 17 PPG Fiber F/O Plug Pilot Hole Casing Exit “One Step” Mill TT00-63 102 TT00-63 103 1999-2000 CTD Developments Thru - 3-1/2” Tubing Operations Over 30 Slimhole Operations To-date Fluid Loss/ECD Concerns Lower Density Lower Polymer loading Shale Stabilization Additives Bi-center Bits TT00-63 104 PRB CTD Average Footage 1950 2000 1794 1800 1685 Average Footage 1600 1400 1204 1200 1000 800 817 600 400 200 0 TT00-63 1995 1996 1997 1998 1999 105 Prudhoe Bay Summary 100 wells 1993-99 Average Cost 1995 - $990M 1996 - $1005M 1997 - $1165M 1998 - $1200M 1999 - $1375M •Harder, Longer Reach Targets •Avg. Production 1400 BOPD •90% success TT00-63 106 Grissom Island THUMS - Arco Project TT00-63 108 TT00-63 109 TT00-63 110 TT00-63 111 TT00-63 113 California CTD Project 4/97- Drilled 7 shallow vertical wells Fleet Cementers CTU - unique design Used 2 7/8” OD CT, 4 3/4” PDMs Hole size 6 to 6 1/2” holes, 1 to 9 1/2” Depths Total TT00-63 900-1000’ , Ran 3 1/2” casing time 24 hours/well 114 TT00-63 115 TT00-63 116 TT00-63 118 TT00-63 120 TT00-63 121 Indonesia Multiple well program in NW Java Sea One ST/ window through 9-5/8” csg- 1997 870’ of 6-1/8” hole drilled w/ 2-3/8” CT Used tinder barge rig as support Completed with cemented 3-1/2” liner 2nd well discontinued after 500’ - shale 3rd well April - June 1998- lost hole - shale TT00-63 122 Offshore Indonesia TT00-63 123 TT00-63 124 TT00-63 125 TT00-63 126 TT00-63 127 Current Status of CTD 20 CTU’s capable of serious CTD Less than 10 CTU’s actively drilling AK, Oman, Canada, N. Sea, Venezuela Currently active; Schl, Baker, BJ Fleet MWD, TT00-63 electric/hydraulic BHA’s 128 Why CTD or Why Not ? Continuous Circulation Pressure Control Footprint, Environmental LWD, Geosteering, Joystick Operation Deepenings, Side-Tracks Through-Tubing Capable Costs? Availability Acceptance TT00-63 129 What is the Future ? Underbalanced operations All-electric CTD BHA Composite CT Pre-programmed, self guided BHA Smaller BHAs Through-tubing rotary drilling TT00-63 130 Fiberspar Composite Coiled Tubing TT00-63 131 Fiberspar Spoolable Products Production Tubing - FS PT Pipe - FS LP Coiled Tubing -FS CT (for Well Servicing) Line TT00-63 132 First FS CT Field String 6500 Ft. Length, 1.5” OD TT00-63 133 FS CT Field Validation Trails Halliburton Energy Services To date, 6 - CO2 injection well clean-outs with acid stimulation for Altura in W. TX and Phillips in NM TT00-63 134 FS LP First Commercial Application TT00-63 Altura, Levelland, TX 40,000’ water flood installation 2” ID, 1500-psi WP Fiberspar LinePipe used Pipe shipped in 8,000 ft continuous lengths 135 Mobile Spooling Unit TT00-63 136 Few Fittings Long runs were easily accomplished with few or no fittings to account for turns Several long runs with multiple turns were successfully completed in a single pull TT00-63 138 TT00-63 141 TT00-63 142