BSEE and BOEM Workshop with Government of Israel

Application for Permit to Drill Joe Levine BSEE

BSEE July 24, 2012

Application for Permit to Drill (APD)

Exploration or Development Plan reviewed by BOEM
Environmental Reviews

Identify Drilling Locations

Identify Rig type (platform, MODU) Oil Spill Contingency Plans Worst Case Discharge (WCD)

Application for Permit to Drill reviewed by BSEE

Ensure permit and drilling operations to be conducted complies with regulations

BSEE

July 24, 2012

Application for Permit to Drill (APD) Overview

BSEE Review and Written Approval Required for

Each Well, Sidetrack, Deepen

Purpose - Regulatory Compliance - Outlines Drilling Program Major Areas - Operational Characteristics of Rig - Well Design - Equipment Use and Testing
BSEE July 24, 2012

Application for Permit to Drill (APD)

Permits are submitted through BSEE ewell system Ewell is an electronic system that operators use to submit permits to BSEE BSEE reviews the permit and can electronically return the permit to the operator with a list of items that need to be addressed The operator than can resubmit the permit to BSEE when they have addressed the issues An electronic approval is sent to the operator when BSEE approved the permit

BSEE

July 24, 2012

Application for Permit to Drill (APD)

Rig Information
USCG Certificate of Inspection/Letter of Compliance ABS/DNV Load Line Certificate Safe Welding Area Rated Rig Drilling Depth Rated Rig Water Depth Rig Maximum Environmental Conditions Hurricane Season Ratings Evacuation Plan for MODU (COCP for ice) For platform rig - structural assessment of platform rig to be installed

BSEE

July 24, 2012

Application for Permit to Drill (APD)

Oil Spill Financial Responsibility
Verify operator Oil Spill Financial Responsibility on file Verify effective and expiration dates 30 CFR 253 regulations Up to $150 million (depends on number of facilities, facility location, WCD volume)

BSEE

July 24, 2012

Application for Permit to Drill (APD)

Plat Information
Plat drawn to scale 1 = 2000 feet Surface and subsurface location of well Surface and subsurface location of well shown in feet from lease line Surface and subsurface location of previously drilled wells shown within the block of well proposed to be drilled

BSEE

July 24, 2012

Application for Permit to Drill (APD)

Exploration or Development Plan
Verify plan approval Check conditions of approval and or mitigations that apply to APD
Shallow hazards, archeological, buoy pipelines, cementing, discharges (shunting around coral reefs)

For moored rigs, confirm anchor pattern in APD is same as what was in plan

BSEE

July 24, 2012

Application for Permit to Drill (APD)

Geologic Information
Significant markers Hydrocarbon bearing zones Shallow hazards Shallow water flows Abnormally pressured zones Lost circulation zones Hydrogen Sulfide Presence
H2S Plan

Plans for mitigating hazards

BSEE

July 24, 2012

Application for Permit to Drill (APD)

Drilling Prognosis
Drilling procedure by hole section Cementing programs (certified by professional engineer)
Type, density, volume, top

Drilling fluids program

Type, density, volume, mud onsite

Logging program
Type, interval

Well testing program (if any) Prior Notification Fluid Disposal MMS Witness Data Collection

BSEE

July 24, 2012

Application for Permit to Drill (APD)

Engineering Calculations
Casing design (certified by professional engineer) Casing test pressures Verify that dual mechanical barriers are installed in production casing (in addition to cement) (certified by professional engineer) Cement volumes (certified by professional engineer) Maximum anticipated surface pressure (MASP) calculations and assumptions

BSEE

July 24, 2012

Maximum Anticipated Surface Pressure (MASP)

Formulas and Assumptions Vary From Company to Company Sample BSEE Calculations
MASP Surface Shoe = FG GG MASP Intermediate Shoe = BHP Hydrostatic Pressure (70% Gas and 30 % Mud Column)

BSEE

July 24, 2012

Application for Permit to Drill (APD)

Well Control
Well control procedure while
drilling tripping

Well control procedure for annular preventer

BSEE

July 24, 2012

Diverter System
Purpose Means of Directing Shallow Flows Away From Rig Provides Time to Abandon Facility if Needed As Part of APD Operator Must Submit a Variety of equipment and operational type information Needs to be Installed When Drilling Conductor or Surface Hole

BSEE

July 24, 2012

Application for Permit to Drill (APD)

DIVERTER
Plan view Elevation view Diverter spool outlet size Line length Diameter (10 or 12 inch) Burst rating Radius of curvature Targeted 90s Valve type Valve Size Valve location Operating procedure Test pressure

BSEE

July 24, 2012

BSEE

July 24, 2012

Diverter Testing
Actuate When Installed Actuate Every 24 Hours While in Use Pressure Test to 200 psi Every 7 Days Alternate Tests Between Control Stations

BSEE

July 24, 2012

Application for Permit to Drill (APD)

Surface BOP
One annular preventer Two pipe rams One blind/shear ram Kill line with two full opening valves Fill-up line above the uppermost preventer Rated working pressure of the choke manifold and components equal to or greater than working pressure of the ram BOPs Accumulator system provides 1.5 times the volume of fluid capacity required to close and hold all BOP components BOP control drawings

BSEE

July 24, 2012

Application for Permit to Drill (APD)

Subsea BOP System

One annular preventer Two pipe rams One blind/shear ram Kill line with two full opening valves Fill-up line above the uppermost preventer Dual pod system for independent operation of BOP Secondary BOP control system with ROV intervention capabilities Deadman and autoshear system 3rd party verification of BOP BOP control drawings Verify ROV can close, at a minimum, one set of pipe rams, one set of blind/shear rams and disconnect from LMRP

BSEE

July 24, 2012

Application for Permit to Drill (APD)

Subsea BOP System Cont.

Rated working pressure of the choke manifold and components equal to or greater than working pressure of the ram BOPs Accumulator system BOP to meet or exceed API RP 53, Section 13.3 BOP control drawings Procedures for all ROV hot stabs Procedure for testing deadman system Confirm at least one ROV hot stab will be tested on the seafloor Review stump test procedure

BSEE

July 24, 2012

Application for Permit to Drill (APD)

Subea BOP System Cont.
Blind/Shear Ram Information Manufacturer Type Max. pipe size that can be sheared Shearing pressure 3rd party verification that shear rams can shear strongest pipe to be used in the well at maximum anticipated wellhead pressure Other BOP Sizes BOP working pressure BOP test pressures

BSEE

July 24, 2012

Blowout Preventer Pressure Testing

Frequency
When Installed Within 14 Days of Previous Test Before Drilling Out Each String or Liner

Test Pressures
Low Pressure Between 200 - 300 psi High Pressure to Rated Working Pressure (RWP) Annular to 70% of its Minimum Internal Yield Pressure (MIYP)
BSEE July 24, 2012

Blowout Preventer Pressure Testing

High pressure can be to less then RWP depending on MASP calculations Each test - hold pressure for 5 minutes. If a component does not test, remedy and retest Stump test subsea BOP before installation on seafloor with water (BSEE witnesses all) Alternate tests between control pods and control stations for subsea stacks Function tests annular/rams every 7 days between pressure tests Visual inspection - once each day including riser. Use TV camera for subsea equip.
BSEE July 24, 2012

Blowout Preventer Test Records

Record all Test Pressures on Pressure Chart Chart Certification by Onsite Company Representative Identify any Problems Encountered During Test and how Remedied Retain all Records for 2 Years at Facility or Onshore Location

BSEE

July 24, 2012

Application for Permit to Drill (APD)

Casing Design
Casing size and type Burst rating Collapse rating Safety factors for tension, collapse, and burst Test pressures Design calculations Setting depth Connection type

BSEE

July 24, 2012

Casing Pressure Testing

Positive Pressure Test Imposes a force on inside of casing that meets or exceeds formation pressure to check for leak path from casing to annulus Required on conductor casing (200 psi) and on surface, intermediate, production casings (70% MIYP) Need to have 30 minute test with less than a 10% pressure decline

BSEE

July 24, 2012

Casing Pressure Testing

Negative Pressure Test
Reducing pressure from inside of casing to check for leak path from annulus to casing Perform on intermediate and production casing strings Operator proposes methodology to BSEE

BSEE

July 24, 2012

Application for Permit to Drill (APD)

Cementing Information
Type(s) of cement to be used for each casing string Volume of cement for each casing string Wait on cement (WOC) time Statement that they will use best practices in API RP 65 (shallow water flow), and/or Part 2 (deepwater) Procedures for verifying top of cement Procedures for remedial cementing Annular washout for abandonment purposes

BSEE

July 24, 2012

Cementing
Purpose
Bonds Casing to Hole Prevents Fluids in One Formation from Migrating to Other Formations

Types Variety of Oilfield Cements Based on Desired Properties Liquid, Foam, HPHT, Class G, Class H Additives Modify Cement Properties Accelerators, Retarders, Weight Materials, Nitrogen, Freeze Protection (Salt) Pumping Equipment High Pressure Equipment Moves Cement Down hole
BSEE July 24, 2012

BSEE Cementing Requirements

Structural Casing Normally Driven, Cement Back to Mud Line (ML) Conductor Casing Cement Back to ML Surface Casing Cement at Least 200 (61 Meters) Above Conductor Casing Shoe Intermediate Casing Cover and Isolate Hydrocarbon and Abnormal Pressure Zones (at least 500 above casing shoe or pressured zone) Production Casing Isolate Hydrocarbon Zones (at least 500 above casing shoe or pressured zone) Liner Cement Lap Above Casing Shoe Wait on Cement (WOC) cement must remain under pressure for 12 hours (surface, intermediate, and production casing) or 8 hours (conductor casing) before drilling resumes
BSEE July 24, 2012

Application for Permit to Drill (APD)

Other
Mud weight, pore pressure, fracture pressure plot Anticipated safe drilling margin Hydrogen sulfide contingency plan (if applicable) Proposed well schematic Coring program Directional program Departure request/alternative compliance request Formation integrity test Mud program Containment

BSEE

July 24, 2012

MUD WEIGHT, PORE PRESSURE, FACTURE GRADIENT, AND CASING PLOT

8
TRUE VERTICAL DEPTH (FEET)
0 500 1000 1500 2000 2500 3000 3500 4000
PORE PRESSURE PLANNED MUD WEIGHT
32 FACTURE GRADIENTJuly 24, 2012

MUD WEIGHT (PPG) 10 11 12 13

14

15

24 16

10-3/4 7-5/8

BSEE

DRILLING FLUIDS
Volume and Type of Fluid Additives Minimal Quantities On Location Time to Re - Supply (Barite)

BSEE

July 24, 2012

APD Form

BSEE

July 24, 2012

APD Form

BSEE

July 24, 2012

HYDROGEN SULFIDE
Significant Percentage of OCS Production Contains H2S Requirements Apply to
Drilling Completions Workovers Production

BSEE H2S Requirements are Based on Likelihood of Encountering Gas

BSEE

July 24, 2012

H2S PERMITTING
Area Classification
Absent Present Unknown

Plan of Exploration or Development and Production Plan to Include Classification H2S Contingency Plan Required for Areas Classed as:
Present Unknown

BSEE

July 24, 2012

H2S CONTINGENCY PLAN REQUIREMENTS

Key Elements Include

Person in Charge Personnel Duties Agency Notification Actions to Take for 20 ppm Briefing (Muster) Areas Evacuation Criteria

BSEE

July 24, 2012

H2S CONTINGENCY PLAN REQUIREMENTS

Key Elements Include

Protective Breathing Equipment Precautions for Helicopters and Vessels H2S Detector Locations H2S Flaring Procedures Sulphur Dioxide Precautions Training and Drills

BSEE

July 24, 2012

Questions?

THANKS
Joseph.levine@bsee.gov

703-787-1033
BSEE July 24, 2012