Date: 2011 Nov. 15
No.: PRJ-152-2
To : Petroleum Research and Development Center (PRDC)
Subject : Drilling program (well design) for Iraqi oil field- Technical Offer
Pursuant to your requisition No . 8 PRDC , we are pleased to submit our technical offer
for mentioned tender as following.
Mohammed T.Kadhim
Managing Director
Table of Contents
1-
INTRODUCTION
2-
ORGANIZATION STRUCTURE
3-
EXECUTION PLAN
3-1-
Data gathering
3-2-
Well Bore Stability Analysis
3-3-
Basic drilling design
3-4-
Reporting
45-
PROJECT MANAGEMENT
REFERENCE LIST
1- Introduction
Kish Petroleum Engineering (KPE) is pleased to submit this proposal, in response to Invitation
for Proposal by Petroleum Research & Development Centre (PRDC) for "Drilling program study
(Well Design) in support of drilling operations". The RFP is issued to provide Drilling Programs
for generic wells in the following fields:

SOC / Nahr-Ummer oil field

NOC / Khabaz oil field

MOC / Noor oil field
Optimum drilling design of parameters is a comprehensive integrated procedure incorporates
work experience of drilling experts, new enhancements in drilling technology, mathematical
approaches and computer modeling to minimize operation cost and to supply production
requirements.
Drilling experience, Production targets and Geological knowledge will be utilized for an
appropriate casing design. Finally, effective drilling design will be provided attending to drilling
cost, operational considerations and equipment and material availability.
KPE propose an integrated team of highly competent gas and oil specialists for this project. Our
drilling experts, well completion engineers, reservoir engineers, production engineers, geologists
and petro-physicists will utilize experiences to provide generic drilling programs which
incorporate all engineering aspects.
This project has been divided in three main tasks in proposed project plan which the estimated
duration and work effort for each task has been estimated separately.
Task one is complete data gathering. Available data which affect the drilling and completion
design will be provided in this section. Necessary information to this project are as follow which
should be prepared by PRDC after effective date of project:
 Drilling data of available wells (11 wells in three fields) in the fields consist of drilling
parameters, bit records, mud logging data, equipments and materials, rig specifications and
drilling tests.
 Well completion methods and equipments of available wells.
 Available Geological prognosis, structural models, Formation sequences and depth
prediction of each well.
 Available wireline log data
 Formation micro image logs such as FMI, UBI, EMI, STAR,....
 Full waveform sonic data to perform anisotropy analysis
 Reservoir dynamic and static tests result
 PVT analysis results and fluids contacts data for each reservoir
Task two of this project is Geo-mechanical modeling and borehole stability analysis. mechanical
earth model (MEM) will be prepared based on image log interpretation, anisotropy analysis and
field stress state analysis. Optimum well trajectory and well bore stability analysis will be
performed based on the MEM. Well bore stability during drilling and production will be
investigated.
Task three of this project is drilling design for generic wells. A comprehensive drilling design
based on available data will be prepared. All of the drilling engineering, economics, production
and geological aspects will be considered in drilling design. Following data will be included in
drilling design.
 Well Bore Stability (WBS) analysis results;
 Well structure and Casing design;
 Bottom Hole Assembly design including bit plan, BHA plan, drilling parameters and
hydraulic parameters;
 Design of directional drilling including KOP selection, build up rate optimization, directional
drilling technology and tools selection. this task is applicable when deviated wells are
required for development of the fields;
 Pore pressure and fracture gradient prediction for the reservoir and intermediate layers;
 Drilling fluid design including mud weight, mud rheology, chemicals and additives;
 Hydraulic program of the drilling fluid;
 cement design and cementing program;
 Selection of Rigs and relevant equipment requirements;
 Well control design including selection of well control equipment, pressure test
requirements, inspection of well control equipments and other requirements, schematic of
wellhead equipments;
 Mud Logging design;
 Drilling technology measure including but not limited to shallow gas prevention, blow out
prevention, casing wear resistance prevention and lost circulation measure.
 Drilling procedure and cycle estimate;
 Basic drilling program including but not limited to formation sequence and depth prediction
report, Material list, Hydraulic calculation, Casing stress check, H2S protection measure,
Coring design, Logging design.
the finalized drilling programs will be delivered 6 month after effective date of the Contract.
2- Organization Structure
Kish Petroleum Engineering (KPE) is the central core of reservoir engineering in
Oil Industrie's and Engineering Construction (OIEC) Group. With the purpose
of supporting engineering department of upstream activities, the company has started its
fundamental movement in 1999 by hiring professional and unique Iranian experts and through
forming an experienced group of personnel including drilling and well completion engineers,
geologists, petrophysicists, reservoir engineers, simulation engineers, production and surface
facilities engineers and announces its readiness for cooperation and rendering services to
petroleum industry.
KPE
obtained a certificate from
National Iranian Oil Company (NIOC)
and also
first ranking from President Deputy Strategic Planning and Control which is presented in figure 1.
Also these certificates are presented in attachments.
KPE from early stages of its activities has joined prestigious foreigner consulting companies.
KPE with its partners are involved in all aspects of oil and gas field development activities
including geology, exploration geophysics, drilling, integrated reservoir studies, MDP preparation
and development operation of offshore and onshore oil and gas fields. Joint ventures of KPE are
as follow:
 Computer Modeling Group (CMG)
 HYCAL Energy Research Laboratories (HYCAL)
 Paradigm Geophysical (UK) Ltd. (Paradigm)
KPE has provided drilling consultancy services including drilling and well completion design and
drilling operation and well services supervision for different oil fields in Iran. KPE is experienced
in integrated reservoir studies including geology, geophysics, Petrophysics, reservoir
engineering
and
management
functions.
KPE
performs
reservoir
characterization,
comprehensive reservoir simulation and modeling, formation evaluation from well logging to
pressure transient analysis, improved and enhanced oil recovery studies - research, design and
application, provide consulting and services to international oil companies participating in buyback scheme projects, disseminate knowledge and experiences acquired during the course of
projects, provide technical support for the main and other NIOC’s subsidiaries.
Kish Petroleum Engineering maintains highly competent and current with new developed
technology in the oil and gas industries. Technical personnel of KPE are equipped with
necessary up-to-date hardware and software for upstream services of oil and gas industry and
integrated reservoir studies. KPE owns licenses for, Geological software (Roxar-RMS),
Petrophysical software (LOGIC and Geolog), Well Testing analysis software (PanSystem), CMG
Simulation package and many more basic reservoir engineering, geological and processing
software. It should be considered which license for drilling software (Drilling office) will be
prepared by KPE for this project.
Kish Petroleum Engineering retains highly proficient and experienced staff are confident to
effectively accomplish its consulting and training for integrated multi-disciplinary drilling and well
completion design. Our highly experienced staff shall be responsible for executing all of the key
tasks, and shall be available for consultation any time as required.
Main office of KPE is located in the following address:
No. 12, Kouhestan 6th, Nou-Bonyad Square., Tehran 1958963111-Iran
Contacts:
Kish Petroleum Engineering (KPE)
P. O. BOX 16315/188
Tehran
Phone: (+9821) 27620
Fax: (+9821) 26114650
E-mail: info@kpe.ir
Figure 1: ISO 9001 certificate of KPE for organization and project management of engineering services
and studies of oil and gas reservoirs
3- Execution plan
Basic Design for Generic Wells of SOC, NOC & MOC Fields (hereinafter referred as
WORK) will be submitted by KPE to PRDC respectively.
3-1- Data gathering
The purpose of data gathering phase is to collect all of necessary and useful data for the
Work. Necessary data should be provided by PRDC. Necessary data to perform an
effective Well Basic Design are as follow:
 Drilling Documents of existing wells such as End of Well Reports, bit records, mud
logging records, Cement data, drilling history,..
 Daily drilling reports of existing wells
Optimum drilling parameters will be selected considering lesson learnt from drilling
practice in the fields. all of drilling problems and hazards will be determined and
appropriate suggestions will be made to avoid such problems.
Performance of the WORK will be improved by additional data of the field. Reservoir
engineering, geological and wireline data will be analyzed by integrated project team to
improve drilling design. Useful data of field are as follow:
 Geological reports and formation descriptions;
 Dynamic and static pressure tests;
 Wireline log data including conventional log data, full waveform sonic data and
borehole image logs;
 Core analysis results including CCAL, SCAL and Rock mechanic tests;
 Geological prognosis (Formation sequence and depths)
The collected data will be organized in an appropriate data base for easy access during
the WORK. The data will be loaded to the technical software’s in each section and
ambiguous and low quality data will be determined. The data, which are not in digital
format, will be digitalized. Missing data will be determined and reported to be provided by
Client.
3-2- Well Bore Stability Analysis
The WBS analysis will include following items:
 Analyze and integrate the existing relevant logs, drilling and other data from existing
wells to generate a Mechanical Earth Model (MEM) describing pore pressure, stress
magnitudes, stress orientation and formation mechanical properties for each field.
 Calibrate and refine the generated MEM using the existing caliper, images and
drilling data to constrain and reduce the uncertainties associated with limitations and
availability of the existing data.
 Determine critical mud weight and ECD ranges that would help in minimize or
avoiding incidents such as lost circulation, tight hole and wellbore collapse.
The basic approach to Geo-mechanics analysis is to use what data are available for
interpretation of rock strength, stress and pressures. The key is to insure an internally
consistent approach, integration and interpretation of all the data. Geo-mechanics can and
does cover a large scope of work during the life of the field. By examining the available
data and understanding key issues previously encountered in drilling, testing or
production, we can focus efforts on specific issues that will have the greatest impact on
exploration and field development.
In analyzing geo-mechanics for a field, there are a series of steps that must be followed in
order to fully grasp the quality of data and determine uncertainty in conclusions drawn from
data used. Skipping or ignoring the importance of any one of these steps can lead to
inconsistencies or poor assumptions in the results.
Development of a Mechanical Earth Model (MEM is essential in making the best use of
field geo-mechanics information. The MEM is a description of strengths, stresses and
pressures as a function of depth, referenced to a stratigraphic column. Once a MEM is
constructed, it can be used to estimate and predict the best possible methods for safely
drilling and completing in both a single borehole and for field development. A typical flow
chart of the key MEM steps is shown in Figure 2.
Figure 2: Basic workflow for MEM construction
The most effective approach to calibrate and validate the MEM is to verify the predictability
of the model. Using the estimated rock properties and horizontal stresses, well bore
stability analysis will show how robust the MEM is by comparing the predicted well bore
stability/instability with the drilling eve, image, caliper etc. The image logs interpretation
results in existing wills will be used in order to calibrate the predictive MEM.
Mud weight window and well bore trajectory sensitivity analysis for the generic wells will be
predicted by the calibrated MEM.
3-3- Basic drilling design
KPE will compile the Basic Drilling Design according to the available data of the existing
wells
Basic drilling design is composed of different disciplines, hence, it will be conducted based
on the results obtained from relevant studies from each discipline (for example casing
design study and BHA study). In addition, drilling manuals, Standards and policies offered
by PRDC will be incorporated in the Work.
The Basic Drilling Design will include the following items:
 Pore pressure and fracture gradient prediction;
 Well Trajectory and casing points based on geological prognosis, WBS study and
pore pressure analysis;
 Well structure and Casing design;
 Bottom Hole Assembly design including bit plan, BHA plan, drilling parameters and
hydraulic parameters;
 Design of directional drilling including KOP selection, build up rate optimization,
directional drilling technology and tools selection (if deviated wells are required in
these fields);
 Drilling fluid design and hydraulic program;

cement design and cementing program;
 Selection of Rigs and relevant equipment requirements;
 Well control design including selection of well control equipment, pressure test
requirements, inspection of well control equipments and other requirements,
schematic of wellhead equipments;
 Mud Logging design;
 Drilling technology measure including but not limited to shallow gas prevention, blow
out prevention, casing wear resistance prevention and lost circulation measure.
 Drilling procedure and cycle estimate;
 Basic drilling program including but not limited to formation sequence and depth
prediction report, Material list, Hydraulic calculation, Casing stress check, H2S
protection measure, Coring design, Logging design,
The WORK will be compiled considering to Iraqi governmental legislation related to drilling
in the area of field.
3-4- Reporting
Monthly Progress Report:
Project progress will be submitted by monthly reports. Monthly progress report will contain
tabular and graphical presentation of project progress, brief description of significant
accomplishments, planned events for the next month and PRDC requested information.
Monthly progress report will include the following information for each activity and which is
directly related to the plotted WORK Schedule: identifier, description, original duration,
percent complete, remaining (estimated) duration to complete, original scheduled start and
finish, actual or forecast scheduled start and finish, slippage, remarks.
Deliverable Reports
Deliverables are as follow:
 Data gathering report;
 Well Bore Stability analysis report;
 Drilling Programs for each generic well;
4- Project management
Proposed project organization chart is presented in Figure 4. The project will be
implemented, administered and controlled based on this organization chart.
Figure 3: planned project organization chart
5- Reference list
List of Projects
No
.
1
2
Project
Name
Investigating
the
possibility of
Increasing
the
Condensate
Recovery
from Ahwaz
PU-1 to
Imam
Petrchemical
Complex
Line
Economical
Study for
Future
Investment
Planning in
Shahdeniz
Gas Field
3
Simulation
Study and
MDP
Preparation
for Tabnak
Gas Field
4
Full Field
Study and
Preparation
of Master
Development
Plan for
Karanj Field
(Asmari &
Pabdeh
Formations)
Project
Locatio
n
Client
Client
Tel.
Partner
Compan
y
Contra
ct No.
Contra
ct Date
End of
Date
Tehran
National
Iranian
Petrochemi
cal
Company
8882287
7
-
-
Nov.20
00
May,20
01
TehranCalgary
(Canad
a)
Oil
Industries
Engineering
Company
(OIEC)
2221783
1
Sproule
-
Jan.200
1
May,20
02
TehranCalgary
Petroleum
Engineering
and
Developme
nt
Company
(PEDEC)
8889865
1
Sproul &
CMG
MED80152ME01
Jan.200
1
Oct.200
2
TehranCalgary
Petroleum
Engineering
and
Developme
nt
Company
(PEDEC)
8889865
1
Sproul &
CMG
MED79141ME01
Nov.20
01
Jan.200
5
5
6
7
8
9
10
Full Field
Study and
Preparation
of Master
Development
Plan for Rage-Safid Field
(Asmari
formation &
Bangestan
Group)
Full Field
Study and
Preparation
of Master
Development
Plan of
Resalat Field
(Shuaiba,
Mishrif and
Arab
Reservoirs)
Land 2D
seismic data
acquisition in
Kuh-e-Kaki
oil field
Technical
Advisory of
Marun full
field study
and
preparation
of master
development
plan
Coarse grid
simulation
study of
Aghar and
Dalan gas
field
Acidizing &
well testing
for
production
potential
TehranCalgary
Petroleum
Engineering
and
Developme
nt
Company
(PEDEC)
8889865
1
Sproul &
CMG
MED79140ME02
Dec.20
01
Jan.200
5
Nov.20
03
Aug.20
05
Nov.20
02
Mar.200
3
QF-1792801
Tehran
Iranian
Offshore Oil
Company
(IOOC)
Booshe
hr
Oil and
Energy
Industries
Developme
nt
Company
(OEID)
2201973
6
BGP
(Supervis
or Co.)
ED287KKEDITGES030001/0
TehranNorway
National
Iranian Oil
Company R&D
8887450
0
-
7181013
Dec.20
02
Nov.20
04
Tehran
Iranian
Central Oil
Fields
Company
8865010
0
-
50-7110011
Jan.200
3
Apr.200
5
Fars
Provinc
e
Petroleum
Engineering
and
Developme
nt
8889865
1
-
MTN 82-224
Apr-03
Feb.200
4
2266423
3
-
QF-1792816
11
12
13
14
15
16
17
18
evaluation of
Tabanak gas
field wells
Company
(PEDEC)
Creating an
intensive
upstream
data bank
Full field
study and
preparation
of Master
Development
plan for
Agha Jari
field
Full field
study and
preparation
of Master
Development
plan for
Mansuri field
Updating
Aghar &
Dalan Tange Bijar
Field
Preparation
of Tender
documents
for
purchasing
onshore and
offshore rigs
Tehran
Iranian
Central Oil
Fields
Company
8865010
0
-
50-7120012
Mar.200
4
Oct.200
4
Tehran
National
Iranian
South Oil
Company
(NISOC)
06114448090
CMG
53-741472
Dec.20
04
Dec.20
09
Tehran
Petroleum
Engineering
and
Developme
nt
Company
(PEDEC)
8889865
1
-
MTN84-342
Mar.200
5
Dec.20
06
Tehran
Iranian
Central Oil
Fields
Company
8865010
0
-
50-7120037
May-06
Nov.
2009
Tehran
North
drilling
Company
(NDC)
8853452
4
-
ND13008430095
Oct.
2007
Oct.
2008
8860451
0
-
86126
Dec.20
07
Dec.20
10
8898925
1
-
435-8635
Apri.20
08
Apri.20
10
8889865
1
-
MTN87-553
Nov.
2008
Mar.201
2
Digitizing of
Wire Line
Logs
Full field
study of
South Pars
gas field
Supervision
of drilling
operation (12
new wells
and one
workover,
onshore) and
Tehran
Tehran
TehranKish
Island
National
Iranian Oil
CompanyExploration
Pars Oil
and Gas
Company
(POGC)
Petroleum
Engineering
and
Developme
nt
Company
(PEDEC)
19
20
21
22
23
performing
full field
study in Kish
gas field
Comprehens
ive study in
application of
hydraulic
fracturing as
an EOR
method in
Iranian
hydrocarbon
reservoirs
Supervision
and technical
consultancy
(Surface &
Subsurface)
on
Yadavaran
oil field
development
plan
Providing
Master
Development
Plan (MDP)
For
Cheshmekho
sh Oil Field /
Bangesstan
Layer
Upstream
Technical
Services For
Drilling of 24
Development
Wells in
South Pars
Gase Field
Phase 20/21
Instruction to
Bid,
Preparing,
Technical
Bid
Evaluations
and
Tehran
National
Iranian Oil
Company R&D
8887450
0
-
8187030
Feb.200
9
April201
0
Tehran
Petroleum
Engineering
and
Developme
nt
Company
(PEDEC)
8889865
1
OEID
MTN88-646
May,
2009
May,
2011
Tehran
Arya Oil &
Gas
Developme
nt
2621825
3
-
89-024
Apri
2010
Nov.20
10
Tehran
Oil
Industries'
Eengineerin
g and
Constructio
n
2221882
6
-
752-8835-CO0004
Apri
2010
Aug.20
13
P.G.F.K
2281550
0
-
KGFKSPKPE90-19
May.20
11
May.20
12
Tehran
Commercial
Bid
Evaluations
for Phases
22-24, South
Pars Gas
Field