IBP1619_12 AX-S SUBSEA WELL INTERVENTION Matthew Law1, Ian Crossland 2, Brenda Bain3, Gerry Rideout4

Copyright 2012, Brazilian Petroleum, Gas and Biofuels Institute - IBP

This Technical Paper was prepared for presentation at the Rio Oil & Gas Expo and Conference 2012, held between September, 1720, 2012, in Rio de Janeiro. This Technical Paper was selected for presentation by the Technical Committee of the event according to the information contained in the final paper submitted by the author(s). The organizers are not supposed to translate or correct the submitted papers. The material as it is presented, does not necessarily represent Brazilian Petroleum, Gas and Biofuels Institute opinion, or that of its Members or Representatives. Authors consent to the publication of this Technical Paper in the Rio Oil & Gas Expo and Conference 2012 Proceedings.

Abstract
The AX-S (pronounced access) is a unique, remotely-operated, inherently safe and cost-effective intervention system which will change the way in which oil and gas companies can access and intervene on their subsea well stock assets at any depth, improving their cash flow and minimising risk. There are approximately 4,000 oil and gas producing subsea wells across the globe. With many now over a decade old, with declining or inaccessible reserves, these wells require servicing. Current methods generally require the use of a rig which is a time-consuming, costly activity. AX-S is remotely operated from a mono-hull vessel and can be rapidly deployed to virtually any subsea well, in any water depth. This allows AX-S to provide a safer and more cost-effective alternative to what is available today. Improved safety systems have been a key driver in the development of AX-S, with its deployment and operational functions incorporating many unique and inherently safer design features. The entire AX-S well intervention system is deployed onto the subsea well head within a completely self-contained pressure envelope, removing any leak potential. The technical paper will describe the AX-S system from a functional and technical point of view, as well as summarising final commissioning, field case-studies and looking at future developments for the technology. AX-S aims to provide enhanced hydrocarbon recovery by providing wet trees with the same opportunity for intervention and management as is available on dry trees. The system has the potential to transform the economics of subsea well production by providing a safe, cost-effective solution compared to traditional intervention methods.

______________________________ 1 BEng (Hons) Mechanical Engineering, Chartered Mechanical Engineer / Technical Manager EXPRO AX-S TECHNOLOGY LIMITED 2 HND Mechanical Engineering, Senior Technical Sales Manager - EXPRO AX-S TECHNOLOGY LIMITED 3 Communications Co-ordinator - EXPRO NORTH SEA LIMITED 4 HND Mechanical and Production Engineering, Director, Sales and Marketing - EXPRO AX-S TECHNOLOGY LIMITED

Rio Oil & Gas Expo and Conference 2012

1. Introduction
All It is widely recognized that while subsea well intervention is necessary, traditional methods can make it a time consuming and very costly activity, with drilling and semi submersible rig costs running at up to $1 million to $1.4 million a day spread rate. There are more than 4,000 oil and gas producing subsea wells worldwide and this number is increasing at a rate of approximately 500 a year. With many such wells over a decade old, intervention is crucial to allow for maximum oil and gas extraction. The sustained rise of deepwater oil and gas explorations has made the challenge of cost-effective well intervention even more pertinent. The challenging conditions experienced at depth, in regions such as Asia, Brazil, West Africa and the Gulf of Mexico, mean many wells have been producing for several years without necessary intervention. This often results in sub-optimum production and ultimate recovery reduction. It was clear that the oil and gas industry required a step-change in technology and it was at 10,000ft (3,000m) that the AX-S (access) challenge started.

2. Background
AX-S was developed at 10,000ft: Following a seven-year development programme, involving the technical expertise of a range of partners, international oilfield services company Expro has developed a technology which provides a cost-effective well intervention solution designed to close the value recovery gap between subsea and drytree fields by providing a safe, riserless and remotely operated subsea solution which is at least one third less than the cost of using a rig. With the number of subsea wells increasing across the world, it has opened up opportunities for emerging and maturing countries subsea regions, such as Brazil, the Gulf of Mexico, India and West Africa. These are potentially huge areas for not only AX-S, but also Expros range of services and it will be working closely with those regions to deliver and meet the needs of customers. AX-S is remotely operated from a vessel and can be rapidly deployed to virtually any subsea well, in any water depth. This allows AX-S to provide a safer and more cost-effective alternative to what is available today. AX-S can be applied to any subsea well worldwide for well maintenance activities which are routine on surface or dry-tree wells, but which are costly with rigs, especially in deep water. There are more than 4,000 oil and gas producing subsea wells worldwide and this number is increasing at a rate of 500 per year. With many such wells over a decade old, intervention is crucial to allow for maximum oil and gas extraction. 2.1. Description The Deepwater AX-S system provides well intervention in deepwater without requiring the use of drilling rig and riser systems. The intervention is performed at the seabed, and is fully enclosed, with automated tool change out and with no hydrocarbons brought up to the surface. There are no requirements for stuffing box or grease injection, eliminating fluids from the well which may access the environment, and controlling seawater ingress to the well. The system follows the dual barrier philosophy and does not require making and breaking pressure- containing connections. The AX-S system provides electric-line real time data capability, real time data-to-surface communication and can interface with standard BOPs. The system should leave the well in the same condition as before attachment to the tree, except for changes intended to be made during the intervention. The current design of the AX-S system comprises of: a well control package providing a dual barrier and well kill facility; a tool storage package with 8 tool pockets operating on hydraulic actuator to facilitate tool change at the seabed; a wireline winch assembly with the winch within the pressure housing with auto spooling and an upper section for tractor storage and a fluid management package. 2.2. Technology and Safety The AX-S subsea well intervention system is one of the most significant and innovative pieces of technology witnessed by the subsea industry. It is a life of field solution to well intervention and is specifically designed to directly address some of the unique operating demands of the deepwater subsea environment. The system, which is deployed from a vessel, is the worlds first intervention technology that can operate in depths up to 10,000ft (3,000m), which covers every subsea well across the globe. It allows operators to significantly increase production rates and ultimate recovery from subsea wells. 2

Rio Oil & Gas Expo and Conference 2012 The AX-S system has been designed and built with the input of more than 200 vendors and significantly reduces subsea intervention time. As a comparison, a typical deepwater intervention can take approximately 10 to 12 days using a rig, compared to only six to eight days using AX-S. The technology also brings benefits in the safety aspect of its design. As the tool swaps are carried out on the seabed, back deck operations are far safer. Also it is only necessary to disconnect the running tool and umbilical from the support vessel to leave location, leaving the system as a fully pressure containing safety barrier on top of the subsea tree. The system is more cost effective than riser based alternatives because it is supported from a mono-hull vessel, and is faster to operate than wire-through-water solutions especially on horizontal trees. Studies carried out by Expro indicate that AX-S is the only viable solution that is economically attractive for wireline intervention in deepwater wells and this step-change in philosophy brings significant commercial and operational advantages in shallower water regions as well. Subsea and deepwater well intervention is increasingly important as operators look to extend reservoir life and maximize production, however with budgets being constantly scrutinized across the industry, increasing rig costs and declining availability mean intervention is an activity which could come under threat (or typically does not happen on subsea wells). Expros AX-S system delivers a cost-effective answer to this dilemma and helps to promote good practice and maximising AX-S to reserves and value within the industry through the concept of increased intervention. The emergence of deeper water plays provides a ready and willing market for this technology. 2.3. Customer Benefits o o o Rapid diagnosis & cure Speed of Mobilisation Restore cash-flow Fix mechanical and reservoir well problems Cost Effective Substantially less than cost of a deepwater rig Less time - Faster operations: Riser-less No system pressure test required when tools changed out Remote installation (no guidelines) Automated tool change-outs Deeper No wire in ocean currents Safer Pressure Housing on Wellhead Dual barrier No grease injection to sea Vessel is not over the well

o o

Rio Oil & Gas Expo and Conference 2012

3. Figures

Figure 1. AX-S System on a Subsea Well

Figure 2. AX-S System Deployment Vessel Havila Phoenix

Rio Oil & Gas Expo and Conference 2012

Figure 3. AX-S Services Available / Wireline Tools

Figure 4. AX-S Final Commissioning April 2012

4. Acknowledgements
The author would like to acknowledge the input of the many talented individuals and organisations who have had input to the AX-S systems to date, including vendors, clients and employees, as well as those forward-thinking customers who are at the head of the rush to be second to utilise this ground-breaking technology first, in a traditionally conservative oil-industry. 5