SPE 158405

Case Study of an East Siberian Field: A Holistic Review of Drilling

Performance Enhancement
Andrew Buchan, Marat Fazletdinov, Zimuzor Okafor, Schlumberger, SPE, Vladimir Shulga, OJSC VCNG

Copyright 2012, Society of Petroleum Engineers

This paper was prepared for presentation at the SPE Russian Oil & Gas Exploration & Production Technical Conference and Exhibition held in Moscow, Russia, 1618 October 2012.
This paper was selected for presentation by an SPE program committee following review of information contained in an abstract submitted by the author(s). Contents of the paper have not been
reviewed by the Society of Petroleum Engineers and are subject to correction by the author(s). The material does not necessarily reflect any position of the Society of Petroleum Engineers, its
officers, or members. Electronic reproduction, distribution, or storage of any part of this paper without the written consent of the Society of Petroleum Engineers is prohibited. Permission to
reproduce in print is restricted to an abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of SPE copyright.

Abstract
The Verkhnechonskoye (VCNG) oilfield located in Eastern Siberia is developed on pad clusters, with in excess of 200 wells
drilled to date. Typical well geometry consists of a vertical 13 3/8in. conductor followed by directional 12 in. and 8 in.
sections ran with subsequent 9 5/8in. and 7in. casing strings. Production hole is drilled in 6in. with a 4 in. liner set prior to
completion. The predominant well design incorporates a double build profile which lands horizontally in the Verknechonskiy
reservoir with an approximate 600m lateral drilled in the productive zone.
VCNG field has evolved of key strategic importance to deliver oil through the Eastern Siberia Pacific Ocean (ESPO) pipeline
from Russia to the vast Asia-Pacific market located to its South East. Increasing production targets have been required to
deliver hydrocarbons to fulfill aggressive pipeline commitments. Meeting these requirements have in turn initiated a relentless
drive to enhance operational efficiency since the inception of development drilling phase in 2007; leading to a significant
increase in drilling performance and reduction in overall well construction time in the period to date. This improvement has
been achieved against the backdrop of an environment which is extremely challenging on several distinct fronts; remoteness of
the project with >600km from the nearest major conurbation, harshness of an extreme continental climate with temperatures
seasonally dropping to -50C and coupled with a unique and problematic lithological column all serve to make drilling,
logistics and general operations a complex undertaking.
The purpose of this paper will be to take a holistic review of drilling performance in the field and to chronicle the numerous
incremental technological and procedural advancements which have led to a reduction in average well construction time from
58 to 21 days between 2007 and 2011. Incorporated into this dramatic efficiency improvement includes a 465% increase in
average well ROP along with a corresponding increase in meters drilled per circulating hour (MPCH) of 390%.
Field Background
Eastern Siberia has risen to prominence in recent times to deliver a significant contribution to Russias hydrocarbon production
as focus has begun to shift eastwards by developing greenfields to partially address shortfall caused by declining production in
the traditional heartland of Russian O&G development in Western Siberia. In previous times, the huge potential located in the
region has largely been overlooked as a result of inadequate infrastructure to transport the oil, remoteness of field locations
and comparatively complex reservoir geology with reduced ease of hydrocarbon extraction. At current rates, East Siberia
constitutes approximately 5% (Figure 1) of Russian oil production but this is a figure expected to grow significantly in coming
years as additional capacity is brought online and as active projects begin to reach a stage of maturity.
Increased activity on East Siberia has largely been underpinned by construction of the ESPO pipeline, developed to overcome
the logistical challenge of delivering the substantial reserves located in the region to the energy thirsty markets of China and to
the Asia-Pacific region. To promote the investment required to develop strategic fields that would allow the challenging
production commitments of the pipeline to be met, a time bonded export tax annulment scheme was set in place by the Russian
government. One of the key developments to achieve economic viability as a result of construction of the pipeline would be
the Verkhnechonskoye field10 operated by Verkhnechonkneftegaz (VCNG) a joint venture with majority shareholders11 TNKBP (74%) and Rosneft (25.94%). The Verknechonskoye field is located (Figure 2) in the Katanhansky region of Irkutskaya
Oblast in remote Eastern Siberia, 1100km from the VCNG headquarters located in the city of Irkutsk. Proven oil reserves with

SPE 158405

in the field are estimated to be 202 million tons (~1.4 bboe)12 with current production averaging 100,000 bpd in 2011 and with
peak production rates of 140,000 bpd expected to be achieved by 2014.
Geological Overview & Associated Drilling Hazards
Wells in the field are predominately developed by drilling horizontal drain sections into the primary Verknechonskiy
sandstone reservoir. The reservoir can be split in two main productive zones, Vc1 and Vc2 within which in excess of 90% of the
field proven reserves are located. Achieving a satisfactory and consistent net-to-gross and effective production return remains
challenging due a number of conjoint factors which complicate the reservoir modeling process, including: primary reservoir
intervals being relatively thin with effective thickness (0.7-5.5m)1, being non-continuous and laminated, containing extensive
localized faulting and through varying levels of salinization and heterogeneity of mineralization located within the rocks and
associated pore spaces leading to anomalous petrophysical properties dispersed across the field2.
Overlaying formation intervals can prove to be equally problematic, with a number of distinct drilling and operational
challenges present across key intervals. The first of these being the mechanically unstable argillitic shale located directly
above the reservoir zone which also serves as its primary stratigraphic cap. As can be seen in the mechanical earth model
example (Figure 3) in almost every well there remains an extremely narrow operating window between collapse and fracture
gradient rendering a degree of wellbore instability inevitable. With only minor indication of shale hydration or chemical
dependency the inherent instability seen across the interval is primarily a result of shear wellbore failure due to an
unfavourable tectonic environment and a degree of bedding plane weakness as trajectories intersect the interval at near ninety
degrees inclination. As is common with conventional wellbore instability resulting from an imbalance in principal stresses, the
relative direction and inclination of well trajectories in relation to the stress orientations play a pivotal role in determining the
degree of instability and mud density requirements to balance out the risk of sustaining breakout. As can be seen on an
example from the field (Figure 4) there remains a large variation in the required drilling fluid density to prevent the occurrence
of breakout across differing well trajectories as the value can range significantly between 1.63 to 2.49 Sg (13.6 20.7 ppg).
The situation is complicated further by the presence of a number of geologic faults dispersed across the field (Figure 5) which
serve to localize the principle stress orientations between various blocks meaning that the stress regime may differ
significantly between neighbouring pad templates.
Having the ability to suitably increase drilling fluid density would serve to increase the borehole support provided by
hydrostatic pressure by increasing radial stress applied around borehole wall. This increase would in turn, allow a net
reduction in effective hoop stress applied tangentially around the hole and minimize the risk of sustaining shear failure in the
form of breakout normal to the orientation of the minimum horizontal stress plane. A lack of effective operating window
between the calculated collapse and fracture gradients does not permit sufficient margin to increase mud density to the
required level. In doing so, the excessive radial stress caused by increased pressure could exceed the tensile capacity of the
rock and instigate axial fracturing. Once initiated this could result in sustained drilling fluid losses which may increase in
severity until a complete loss of circulation. Under this restriction the option to effectively increase mud weight to counter
wellbore instability are not practicable as the perceived threat of sustaining severe drilling fluid losses supersede those of
encountering an elevated level of wellbore breakout. The effect of fluctuations in effective dynamic pressure in the form of
equivalent circulating density (ECD) generated through poor or dirty hole conditions, inappropriate mud rheology, progressive
gel strengths, excessive mud densities, pipe surging with high string velocities etc can greatly influence the risk of sustaining
hydraulic fractures if not properly managed. As a primary method to prevent losses of this kind, it is highly desirable to
construct an ECD road map of any section or trajectory to be drilled whereby hydraulics modeling software is utilized to
estimate the predicted ECD load against measured depth across the entirety of the interval for a set of given environmental
conditions such as; hole geometry, string diameter, mud density, rheology, flow rate etc. Once estimated the predicted loss and
fracture gradients can be superimposed on to the chart with relevant safety factors applied to act as an action indicator or
decision point if actual ECD readings plotted whilst drilling encroaches upon the determined operational boundaries. One
important point to note that during a particular section, any significant changes to drilling fluid or drillstring design may
invalidate the model and will require that the expected ECD be recalculated along the remainder of the interval.
Conversely, in environments such as at VCNG where the operational mud density window is extremely tight or practically
non-existent and without the presence of a satisfactory swab margin it becomes imperative that effort is maintained to avoid
significant reductions in mud hydrostatic pressure which could drop below the predicted collapse pressure gradient and
instigate breakout. In particular, of major concern is the effects of excessive hole swabbing as the pipe is moved upwards
during regular connection operations, wiper tripping or tripping out of the hole at section TD. The phenomenon of swabbing
can be caused by two mechanisms; firstly a piston effect is developed as the bit and largely full gauge components create when
tripped and secondly due to the negative pressure created through friction losses as the drill string is pulled out through the
mud column. The main factors which influence the magnitude of swab pressure for a given or fixed well trajectory include;
clearance between drillstring and borehole wall, drilling fluid rheology and the velocity of pipe movement. Under these
circumstances it is essential that drilling practices are evolved with respect to the effects of wellbore stability created through
swabbing and on how they can be reduced. Perhaps the most effective way to counteract this is to ensure circulation is

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maintained throughout periods of pipe movement upwards or particularly when tripping out of hole as the resultant positive
ECD pressure created far outweighs the negative swab loading; leaving a net effective positive pressure. However, following
this as a standard practice for tripping out of hole is fraught with difficulty as it requires the string to be backreamed out
entirely, a process which is both extremely time consuming and which carries a high inherent risk of sustaining hole pack off
or subsequent lost-in-hole event. Apart from cases where backreaming is essential to trip out (e.g. ERD wells) it is highly
recommended to base any trip out plan on identifying a workable trip margin for both surge loads in and swab loads out by
determining optimal tripping speeds from simulated expected bottom hole pressures. Similarly, another factor which must be
controlled is the effect of repetitive pressure cycles exerted on unstable intervals whereby pressure fluctuations caused by
continuous pumps on-off cycles as well as those generated through swabbing and surging the string serve to fatigue and
destabilize already sensitive zones.
Over time a number of varying approaches have been attempted to limit the effects of the unstable argillite zone at VCNG with
varying degrees of success, including; optimizing drilling and tripping practices, extending hole cleaning cycles performed
prior to tripping, backreaming out of hole, utilizing slick or unstabilized BHA designs, drilling larger intermediate hole sizes
(8.75 in.), utilizing oil or synthetic based drilling fluids etc. Despite these efforts, the effect of wellbore instability remains a
major challenge and in the last several years has been culpable for at least 6 instances where the 7 in. casing had to be set
prematurely. On occasion this has resulted in subsequent 6 in. drilling assemblies getting stuck in the extended rat hole
through packing off in residual material in the form of excess cement and cavings from the continually unstable shale;
ultimately requiring the need to perform costly directional sidetracks. To date the standard response most commonly applied to
limit the effects of the instability is that whilst tripping out at section TD, the string is halted across the unstable interval and is
slowly reamed back and forth for an extended period to allow for enlargement of the effective hole size. This enables a
sufficient enough increase in annular capacity to allow the casing to pass across over any residual breakout volume sustained
in the interim between the drilling BHA being tripped out of hole (POOH) and the casing being run to bottom. On an average
well the reaming process can take up to 2 days to complete, with an approximate rig spread cost of $140,000 USD /day and an
annual drilling schedule of 60 wells per annum, a total cost of up to $16,800,000 USD can be directly attributed to mitigating
the effects of wellbore instability. Clearly, in the future finding a technically sound and cost effective solution to combat this
problem remains an area where significant scope exists to continue to optimize performance and to minimize direct flat times
associated with it.
Moving upwards along the lithology column (Figure 6) from the reservoir and unstable cap are layers of dolomite, shale and
anhydrite which include the Motskaya interval. The Motskaya has become synonymous with instigating acute directional
drilling difficulties as the thinly interbedded layers of variable relative formation hardness causes an often inconstant and
below median dogleg severity response regardless of the direction drilling technology employed. This has posed a particular
problem when utilizing push-the-bit Rotary Steerable (RSS) technology where the overall achievable dogleg severity yield is
considerably lower than expected with use of conventional positive displacement motors. The effect of these thinly laminated
layers with large variations in rock hardness can be seen on the Unconfined Compressive Strength plot also located (Figure 6),
where in the middle Motskaya-Verkhnemotskaya interval the compressive strength oscillates between 7 to 40 ksi (50 275
MPa) which translates to variations between R3/R4 (medium strong strong) through to R6 (extremely strong) on the relative
rock strength classification scale3 (Figure 7). This effect would be even more pronounced, however the data has been averaged
by order of a hundred to ensure that the chart remains presentable on a limited vertical scale.
As a general rule of thumb, directional response will drop by approximately 50% in the Motskaya interval for each relevant
directional technology utilized from that experienced in surrounding formation intervals. The primary difference between
achieving desired DLS across this zone between the use of conventional directional steering technology such as drilling motors
and that of RSS being that the adjustable bend housing setting could be set with increased offset, providing higher DLS yield
per given interval where slide drilling is employed. Conversely, increasing distance over which slide drilling is performed will
further serve to increase net DLS response to compensate for losses due formation effects. In the case of push-the-bit RSS
assemblies, through physical limitations in the magnitude of side force the tool can impart to the bit the level of directional
response achieved remains finite for a given power setting (resultant force of pad actuation against the borehole wall) and can
vary significantly given the effects that differing formation geometries and properties can have on the assemblies response.
Due to the lower overall achievable yield that a standard push-the-bit RSS tool can provide it follows convention that when
intervals are encountered where significant loss of DLS is seen, given the limited options available to provide recourse to
compensate there remains a notably higher risk that trajectory control may be lost or that the well path diverges significantly
from plan. This would be the case particularly where limited direct in field or close offset drilling experience is available to
determine expected directional response in particular formation intervals or where inappropriate or incompatible drill bits have
been selected for use with the system. These factors played a significant part in causing a number of directional control and
RSS tool reliability problems encountered as the technology was introduced to the field for drilling 8 in. sections in mid2010. To counteract this, an intensive performance optimization strategy was devised and implemented over a several month
period which addressed these issues to ensure the technologys performance could be firmly established in the field. The basis
and results of this strategy will be covered comprehensively in the specific 8 in. section review of this paper.

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Another drilling hazard prevalent in the field; in particular for 8 in. sections is the incidence of sustaining adverse drillstring
vibrations. Drillstring vibrations can be generalized into three distinct groups; axial, torsional, lateral vibrations and with
additional subsets of stickslip under torsional and various forms of whirl (forwards, backwards and chaotic) under lateral.
Although manifestation of a singular type of drilling vibration alone is rare, generally the advent of these dynamic motions can
be attributed to a combination of vibrations in a process known as mode coupling. However, for the purpose of this paper
focus will be retained on the two primary modes which affect operations at VCNG; lateral or transverse vibrations and
stickslip.
Stickslip can be defined as form of torsional vibration initiated as the static friction coefficient sufficiently exceeds the
rotational dynamic friction coefficient4 so that drillstring rotation effectively stalls, remains in stasis building and storing
torsional energy until magnitude of the static friction coefficient is exceeded and the string releases with high intensity and
acceleration. Generally, a degree of torsional vibration is present in any drilling environment however when excessive levels
are attained it can have detrimental effects on operations, including; accelerated bit or drill string wear through friction
abrasion, heat checking and premature connection fatigue. It can also affect the quality of real time LWD data as well as
potentially instigating loss of directional control particularly in the case of drilling with RSS. However, in terms of affecting
overall drilling performance, of primary concern is parasitic loss of applied drilling energy which if efficiently controlled can
be transmitted directly to maximize rate of penetration. This process can be outlined in the principles of monitoring drilling
specific energy (DSE) which can be defined as the amount of work through application of surface or downhole drilling energy
required to drill a given volume of rock5. The primary aim being to achieve stable DSE with the bit operating at high
efficiency, with ratio between input energy and drilling speed constant in a particular formation. More specifically, alteration
of input energy by setting applicable drilling parameters to achieve an optimal ROP with stable DSE will yield a maximized
drilling performance. If DSE begins to increase significantly in a given formation interval this provides an indication that the
drill bit has foundered and that energy losses across the string has reduced drilling efficiency and as a direct result ROP. One
of the primary mechanisms to cause this is the incidence of adverse drillstring vibrations, where their occurrence in a given
mode will directly impact drilling performance.
Apart from issues faced countering stickslip, occasional instances of transverse shocks are a further challenge. Under general
circumstances, the occurrence of lateral shocks in low angle wells manifest due to imperfections between the BHAs rotating
center of motion and center of mass causing the string to be continually thrown off balance before striking into the borehole
wall with significant force, potentially as high as several hundred times the force of gravity. At higher wellbore inclinations the
natural effect of gravity can help suppress motions by providing a downwards clamping force of the string to the borehole wall
which can restrict lateral movement. However, this does not remove the possibility of these types of transient vibrations
occurring under certain conditions. Given a high enough magnitude of string energy imparted by surface drilling parameters or
if the string motion encroaches up on a resonant harmonic frequency, the confining force can be overcome and a variety of
vibration modes could then commence. In particular, drilling in hard formations with high compressive strength can negatively
impact the stability of the drillstring due to the relative coefficients of friction and restitution they possess6. As the coefficient
of friction increases between the string and borehole a higher degree of energy per shock impact will be transferred from
rotational energy to that of lateral motion. Similarly, the coefficient of restitution determines the magnitude of impact energy
dampened as the string impacts the borehole, which in turn limits its resultant severity. Formations with a relatively low
coefficient of restitution will absorb a significantly larger amount of kinetic energy upon impact. Both of these are proportional
to formation hardness where increasing compressive strength can be directly related to higher values of both coefficients of
friction and restitution. In the case of VCNG, exluding the extended salt and anhydrite intervals, formation compressive
strength (Figure 8) has a mean distribution centering around 20 ksi (140 MPa) with significant intervals of 30 Ksi (200 MPa)
and beyond, correlating to a relative rock strength on the classification scale (Figure 7) of R5 or very strong.
Not only does the hard rock result in an elevated risk of transverse vibrations but is also conducive to initiating stickslip as the
high coefficient of friction leads to an increase of sustaining torsional vibration induced at the drill bit or the drillstring. In the
latter case, as the rotating components contact the borehole wall if the level of friction is high enough to overcome dynamic
torsional energy the string will remain static as the stick phase is initiated, as the continued rotation begins to store inertial
energy until the static friction is surpassed and the slip phase releases with velocity significantly in excess of surface rotation.
This can predominantly be the case when utilizing drillstring stabilizers and particularly so when they are improperly designed
(e.g. blade width / shape, wrap configuration etc) under certain circumstances as the string rotates the action of the blades
digging into the borehole wall can initiate gearing leading to the string stalling and initiation of stickslip motion. However, the
most prevalent source of stickslip is initiated at the drill bit, where the high friction boundary generated at the interface
between bit cutters and hard formation intervals can instigate the motion. This is particularly pronounced when utilizing PDC
bit designs where the shearing action under which the cutters destroy rock are significantly more susceptible to initiating
torsional vibration than the crushing and grinding action of the teeth from that of a milltooth or insert bit. In fact a further
number of key features of PDC bits can directly affect the likelihood of stickslip in a given formation including; cutter size,
cutter shape, cutter density and layout, depth of cut, cutter back rake angles etc. All of these features can affect the designs

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relative aggressiveness and determines whether it is inherently susceptible to lose stability and subsequently increase the
potential to generate torsional vibration.
The advent of severe drillstring vibrations in their various guises has had a number of negative effects on operations at VCNG;
including significant reduction to maximum achievable rates of penetration, loss of trajectory control when drilling with RSS,
severe damage to the pad seals and body of RSS bias units, premature wear or damage to PDC cutters, destruction of MWD
tools whilst drilling the hard basement zone beneath the reservoir, drillpipe washouts and so on. It has therefore, been crucial
to achieve significant improvement in drilling performance by developing methods of mitigating the incidence and severity of
drilling vibrations in the field, examples including:

BHA Design: Has evolved from largely slick motor BHAs to stabilized asssemblies which have helped limit string
annular clearance especially around collars, restricting their degree of movement and dampening potential for high lateral
vibrations. Further enhancements were made during late 2010, when the directional drilling contractor initiated a process
of phasing out or redressing stabilizer designs which failed to meet acceptable criteria to limit initiation of stickslip along
as well as to improve tripping efficiency. Dynamic modeling of transient drillstring vibrations under expected drilling
conditions has also been employed to identify potential flaws with new or non-standard BHA designs. Finally,
implementation of Powered RSS (PRSS) drilling systems; where an RSS is ran in conjunction with a high performance
motor has led to huge reductions in shock and vibration sustained in operations. Firstly as required surface RPM has been
lowered, with less energy available to excite the drillstring a significant reduction in the likelihood of lateral or transverse
vibrations has been realized. Similarly, the additional torque and RPM output (horsepower) available at the bit has
enabled an increased stability and greater resistance to the initiation of bit induced stickslip.

Remote Monitoring: In order to provide direct support to operations at the rig site a remote support center has monitored
drilling performance on all active rigs to intervene and provide mitigation to the incidence of severe shock and vibration
by advising appropriate alterations to input drilling parameters or provide expert guidance on how to prevent impending
adverse well events.

Drill Pipe: To further reduce the effects of stickslip, it was determined that a possible solution would be to upsize the
drillpipe from 5 to 5 in. on a single rig for intermediate hole sections under belief that the added stiffness or torsional
resistance of the larger pipe would diminish the likelihood and magnitude of torsional oscillation. Results of the trial
conducted over two wells with similar profile, drilling fluid and drill string design (Figure 9), indicated potential to reduce
stickslip by ~15%. However, the trial was not extended to the other active rigs due to the belief that it would not provide a
cost effective solution. Transfer from 3 G-105 to 4 S-135 has proven successful in lateral 6 in. hole sections but this
was performed primarily to enable the higher connection make up torque to allow extension of available rotary torque
operating window.

Drilling Fluid: Application of 1-2% total volume of Ester based lubricants in the active drilling fluid system had a
positive effect on minimizing stickslip severity and has firmly established as a best practice in the field. Furthermore,
addition of lubricant pills (<0.5 barrel) when extreme stickslip is prevalent has been applied to provide additional relief as
required to reduce translational friction and assist slide drilling. Addition of lubrication pills has also been noted to
positively affect drilling torque as in the case of several example wells (Figure 10) average torque reduces by ~10% after
the pill has been circulated around the BHA. The trial application of oil based drilling fluids in the field has also enabled
significant reduction in open hole friction factors but not to significant reduction in stickslip incidence or severity.

Perhaps the final significant risk with regards to operations at VCNG is the presence of an extended salt (Halite) interval in the
lower 12 in. and upper 8 in. hole sections. Historically, excessive hole washout was prevalent leading to uncertainty in
required cement excess volumes as well as in potential loss of directional control as both sliding and rotary drilling tendencies
deteriorated. These issues were largely overcome by deployment of a salt saturated polymer drilling fluid, effective by
ensuring that the water phase of the drilling fluid is fully mixed and saturated with salt so that no or at least limited dissolution
with the natural formation can occur. This system however, is not completely foolproof and a certain degree of washout can
remain. The belief under which the residual washout remains is the assumption that aportion of the pre-dissolved salt drops out
of solution, reducing the effective salinity of the mud and causing a degree of fresh water erosion along the borehole wall.
This limited washing out does not adversely affect directional steering response as it is believed that the hole diameter grows
gradually with time and the hole remains effectively in gauge under the immediate period of exposure after drilling. Recent
trial application of oil based drilling fluids has again served to enhance protection of the salt intervals, here the invert emulsion
with oil constituting the continuous or external phase and saline water the internal phase the drilling fluids oil wetting ability
and reduction in overall water content reduces the extent and severity of dissolution and to date has provided the most
effective technical solution to the problem. However, expanded utilization of oil based drilling fluids must first be fully
weighed against the obvious financial and environmental issues to use in an extremely remote land based drilling operation.

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Historical Review of Drilling Performance

With increasingly challenging annual production targets required to take advantage of the tax annulment set in place for oil
exported through the ESPO pipeline it was imperative from the project outset to continually challenge boundaries and strive
towards achieving optimal operational performance to ensure its continued viability. It was with this ethos in mind which led
to an ongoing effort to maximize drilling performance in each hole section to allow a direct impact to reduce overall well
construction time. The results achieved can be found (Figure 11) details the average ROP and meters per circulating hour
(MPCH) on a monthly basis from 2007 through to 2011. It clearly shows exceptional improvement on a month on month
basis, with the slope of performance trend lines accelerating upwards as field development has progressed. Converting the
figures to annual averages (Figure 12) as opposed to monthly indicates that in 2007 average drilling ROP was 4.6 m/hr before
increasing almost exponentially to 21.41 m/hr by the close of 2011. If taken over the course of the analyzed period, it equates
to an ROP improvement of 465%. Similarly, for MPCH the number of meters drilled per hour of run circulation times has
increased from 3.23 in 2007 through to 12.61 by end 2011 with overall percentage increase of 390% in the corresponding
period. With such huge advances in performance it follows convention that this would bear a significant impact on overall well
performance and reduce the average number of AFE or total well construction days per well. In comparison the average days
per well decreased (Figure 13) from 58.3 to 21.1 days from 2007 to 2011 which is the equivalent of a 64% reduction over the 5
year interval. When this significantly enhanced efficiency is applied directly to the number of wells that each individual
drilling rig completes (Figure 14) over an annual cycle it can be seen that an improvement from 6.8 to 11.2 wells per year has
been realized which indicates that individual rig utilization has been enhanced by 65% from the period of 2008 through 2011.
Clearly, improvements in performance of this magnitude do not happen by chance and that a sustained effort of optimization
and efficiency based performance enhancement has been maintained to achieve these goals. Therefore, it will be the purpose
of the remainder of this paper to look at each individual operating section (17 , 12 , 8 and 6 in.) at Verkhnechonskoye to
identify the major enabling technologies and procedural advancements which have allowed the performance gains (Table 1) to
be achieved.

N/A

Avg. Well
Construction Time
(Days)
58.3

Average Annual
Wells / Active
Rig
N/A

4.77

47.7

44.8

6.8

57.4

6.61

38.6

34.9

8.2

15.21

48.0

9.36

41.6

27.7

9.4

21.41

40.8

12.61

34.7

21.1

11.2

Year

ROP
(m/hr)

% ROP Increase
(on preceding year)

MPCH

% MPCH Increase
(on preceding year)

2007

4.60

N/A

3.23

2008

6.53

42.0

2009

10.28

2010
2011

Table 1: Drilling Performance Statistics 2007-2011

17 in. Section
The 17 in. hole section is drilled vertically to a measured depth approximately 50m below ground level in order to allow the
structural 13 3/8in. conductor string to be set. In most cases drilling and casing remains relatively trouble free with the only
recurring risk being sustained losses whilst drilling or during cementing. The primary method used to manage this risk is to
spot several cement plugs across the affected zone. This is a relatively time consuming and costly process. In cases where
losses are experienced during cementing; to prevent pumping an overly high excess the remainder of the required volume to
ensure returns to surface are achieved by manually performing a top fill with thin diameter pipe down the conductor-formation
annulus. Overall, there has been significant progression in drilling performance in this section (Figure 15) despite its relative
simplicity. Over the period between 2008 and 2011 average on-bottom drilling ROP has increased dramatically from 4 to ~25
m/hr, indicating a relative improvement of over 600%. Similarly, MPCH followed suit and has increased from 3.5 to 12, which
equates to an improvement of 340%. As numerically indicated on the chronological section chart, there have been a number of
key advancements or factors influencing performance, described as below:
1) With the project in its infancy, conductor sections were drilled utilizing simple rotary bottomhole assemblies, largely
constituting of a rollercone bit with drill collars to provide sufficient drilling weight and prevent drillstring buckling. With
requirement to ensure that the conductor casing be set at or as close to vertical, the slick assembly led to a suboptimal
performance. Stabilization would be desirable to ensure a limited degree of movement and sufficient stiffness of the
string was present to restrict potential of inadvertent hole deviation through bending and tilting the drill bit off its aligned
axis with the string under compressional load. As such, axial load applied through surface WOB would be moderated to
ensure verticality was maintained which, with the application of roller cone bits, directly limited the ROP achieved while
drilling.

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2) From mid-2008, onwards the first major enhancement to the BHA design was made to include stabilization along with the
addition of a PDM (Positive Displacement Motor). The PDM enabled conversion of hydraulic thrust created through
drilling fluid circulation to mechanical energy in the form of additional bit torque and rotational speed. This process is
possible due to the application of the Moineau principle as the motor acts as a progressive cavity pump, converting
hydraulic energy in the power section and transmitting mechanical force through to the drive shaft indirectly connected to
the bit. The additional horsepower applied then enabled an increase in drilling ROP; where in this application effectively
doubling average ROP from 4-8 m/hr with performance then remaining relatively stable around the latter until the end of
2009.
3) The next major advancement occurred in early 2010 as large PDC bit designs were trialed to investigate whether they
could significantly enhance performance. One of the primary differences between a PDC and roller cone bit designs are in
the relative ways they drill rock, firstly a roller cone relies on the gouging action of its teeth in softer formations whilst
crushing and scraping with more durable inserts in harder rock. In comparison, PDC bits utilize the shearing action of the
cutter edge across the exposed rock face. The application of PDC cutters rely on two primary parameters to affect drilling
penetration rate, where output ROP is a multiple of the depth of cut or bite the cutters take on the formation over a given
number of revolutions. Depth of cut can be influenced by a number of factors (e.g. cutter size, density, layout, shape,
back rake angle etc) but primarily is a function of the degree WOB applied to the bits compresses the PDC cutter into the
rock interface. When used in conjunction with a PDM the additional torque applied at the bit created with increasing
differential pressure and the higher bit speed can result in significantly enhanced performance in comparison to the
inherently slower mechanism of drilling with a roller cone. As PDC bits were applied at VCNG over a several month trial
period which indicated a dramatic increase in ROP to in excess of 20 m/hr, an almost 250% increase over that previously
achieved.
4) Upon completion of the impressive trial, drilling reverted back to RC bit designs as an economic analysis was performed
to determine the viability of expanding their use. During the interim period drilling performance as expected, reverted
directly back to that seen pre-trial. Despite the significantly higher unit cost, it was determined that increased drilling
performance with PDC would allow only for a partial offset of the increased cost. However, the case for their expanded
use could be further augmented through an expected increase in bit utilization. As the section would drill formations of at
most moderate hardness, fixed cutter bit designs allowed for enhanced durability and for an individual bit to be utilized on
multiple wells before dulling in comparison to the limited life cycle of roller cones with finite bearing and seal life.
Overall, it was determined that the increased performance and durability largely offset the additional upfront cost and the
use of PDC bits was expanded throughout operations in the field towards late 2010 and has remained as the current
optimal BHA design utilized for each top hole section.
5) Throughout 2011, drilling performance continued to stabilize and increase to average in excess of 25 m/hr towards the
middle of the year. It was at this point however that performance declined sharply as operations were initiated on several
pads at the flank of the geological field structure. During this period, a reduction in surface rock consolidation caused a
spate of drilling fluid loss incidents to occur. This led to an additional 26 in. hole section and 20 in. casing string to be set
for these wells, which pushed the subsequent 17 in. hole sections deeper to around 200m measured depth. As formation
competency increased somewhat at these depths the average achievable ROP declined accordingly before increasing back
to previous as drilling recommenced at alternate locations.

12 in. Section
The 12 in. hole section predominantly begins beneath the 13 3/8 in. conductor shoe at ~60m MD, where depending on the
relevant target step out and orientation the section will be approximately 600m in length and have inclination at section total
depth (TD) of 20-60 degrees with varying amount of azimuthal deviation. In the ideal scenario, at section TD the trajectory
would be aligned to allow an extended tangent in the subsequent 8 in. section. There are several drilling hazards present, the
shallowest of which is a continuation of potential drilling fluid loss zones as describe in the previous interval. At an
intermediate depth a high compressive strength dolerite interval exists which significantly reduces ROP and which can
instigate severe axial vibration. In order to isolate the topdrive and protect the drill bit a shock sub is placed in the drilling
assembly which operates with an extended Bellville spring which compresses and dampens the severity of incident axial
dynamic vibrations. This igneous Dolerite interval, known locally as the Traps formation contains a partial constituent of
Magnetite which retains residual ferromagnetic properties which serves to establish a localized magnetic anomaly. This
anomaly generates an interfering field reducing the ability of magnetic wellbore surveying tools to accurately determine the
strength and orientation of the earths magnetic field. As a result reduced borehole survey quality can dimish well positional
accuracy; therefore it was essential that a mitigation plan be put in place to limit exposure to sustaining significant error. The
primary solution would be to perform several runs with a centralized North Seeking Gyro inside drillpipe to re-survey the
interval without influence of localized magnetic field errors, however upon analysis it was determined this would incur an

SPE 158405

unacceptable time and cost implication to operations. Therefore, a secondary mitigation option was developed where a tangent
interval would be drilled across the anomaly without significant azimuthal deviation, the wellbore surveys would then be
analyzed and processed according to the relevant position prior to and after the affected zone. The final potential hazard in this
section would be the presence of a salt interval, details of which has been discussed in the geology overview and associated
drilling hazards section.
Performance has improved significantly in this section throughout the history of development drilling. It can be seen that
between 2008 and 2011 (Figure 16) that on-bottom ROP has increased from 6 to 24 m/hr on average equating to an
improvement of ~400%. Similarly, MPCH has increased accordingly by from 5 to 14, which in this case is around a 280%
enhancement. Again, the section specific historical performance has been annotated to indicate how key milestones in the
project have affected drilling performance; these are discussed as below:
1) From the project outset, the 12 in. section was typically drilled with a stabilized motor and roller cone bit design.
Performance remained relatively low but consistent initially as average on bottom ROP remained around 7 m/hr. Over the
remainder of 2008 and the majority of 2009, gradual progression was realized largely due to improved application of
drilling lessons learned and best practices; however for all intent and purpose performance remained stagnant.
2) By Q3 2009, upon analysis of directional performance it was determined that the adjustable bend setting located on the
drilling motor could be revised to allow for optimization of applied drilling parameters. The adjustable bend housing
enables an offset to be placed on the motor at a pre-determined angle, allowing orientation of the bit to a desired toolface
to enact directionally steering of the trajectory when slide drilling. In general, the larger the motor bend angle the higher
rate of curvature the assembly will achieve over a given slide interval. Conversely, application of increased bend angle
restricts allowable surface RPM that can be applied to the assembly downhole. This condition exists as reverse bending
can generate extreme stresses across the motor as the offset section is rotated within a confined hole diameter. If enough
high stress cycles are applied then risk of premature connection or component fatigue is greatly accelerated and an
elevated risk of twist off will be present. In order to minimize this potential, strict limitations are placed on string RPM
which can be applied for a given bend angle for both curved or tangent hole intervals. In the case of VCNG, it was
decided to lower the offset bend setting from 1.41 to 1.22 degrees which despite requiring marginally longer slide
intervals to meet directional requirements, enabled surface RPM to be increased from 60 to 100 rpm across tangent
intervals. This increased RPM enabled improved performance by delivering an incremental ROP as well as enhanced hole
cleaning which helped reduce well conditioning and tripping time after section TD. Along with continuing operational
efficiency enabled average ROP to increase from 8 to 12 m/hr from late 2009 to mid-2010.
3) Application of PDC drill bits in place of roller cone designs heralded the next major shift in drilling performance. As
discussed previously, the shearing mechanism by which a PDC bit cuts rock allows for an inherently faster ROP over
roller cones across the majority of drilling environments. Despite greater unit cost, the fixed cutter bits instantly delivered
an increase in ROP and continued to do so until late Q1 2011 by which time average performance had increased from a
mean of 12 m/hr to 20 m/hr. Continued iterative improvements to bit design during this period enabled a closer match to
balance aggressiveness of the cutting structure by achieve higher rate of penetration whilst ensuring that slide drilling
could be performed effectively without the drilling motor stalling or through subsequent loss of orienting toolface.
4) By the end of Q1 2011, further innovation was applied in the form of hybrid drilling motors. It was noted that despite the
directional drilling contractor having an increased reliability and performance of motor power sections, a local Russian
distributor supplied motor bearing sections which could be considered over-engineered by conventional standards. The
bearing section was longer, thicker walled and housed more robust bearings which could support a significantly higher
load capacity. Specifically, the primary purpose of bearings around the drive shaft would be to support WOB loading
whilst drilling and also to support the opposing effects of hydraulic thrust whilst circulating off bottom. Under general
circumstances, the mechanism to extend bearing life would be to balance the net axial load between the WOB (or
differential pressure) and the downward effect of hydraulic thrust. However, in this case with the designed load capacity
being significantly higher the motor could be run at operating loads in excess of that for standard bearings. Therefore to
maximize rotary drilling performance enhanced bearing sections were combined with the directional drilling contractors
power section to create a hybrid motor which enabled differential pressures 20-30% higher than that previously
possible, which continued to advance ROP performance until reaching an operating peak of ~ 27 m/hr in mid-2011.
5) Performance diminished somewhat at the tail of 2011 as a result of additional loss zones encountered at the flank of the
Verkhnechonskoye structure and due to the additional 20 in. casing string pushing sections deeper and which again
adversely affected ROP performance. However, overall on bottom ROP had been firmly established and maintained above
the 20 m/hr threshold throughout 2011 depsite the challenges faced countering the extensive drilling fluid losses.

SPE 158405

8 in. Section
The 8 in. is the longest and the most challenging section to drill and as such would naturally provide most opportunity to
enhance drilling performance. In the majority of cases the section begins beneath the 9 5/8 in. casing shoe at approximately
600m MD (~550m TVD RKB) and either continues with an extended tangent down to the well secondary KOP or requires
additional directional work to achieve the required tangent angle. There are generally two main well designs employed, the
first being water injection wells, which are high angle slant wells that TD below the reservoir in 8 in. In the predominant
production well case the 8 in. remains an intermediate section, building to at or near horizontal at Verknechonskiy reservoir
to enable a 7 in. casing to be set prior to drilling and completing a slimhole production lateral. Primary drilling hazards
encountered during this interval have been covered extensively in the geology and associated drilling risk discussion and
include; wellbore instability of the argillite shale located above the reservoir, high compressive strength and thinly laminated
formation intervals in the Motskaya which can lead to severe drillstring vibrations, loss of directional control, premature drill
bit wear and finally an extended salt interval where risk of borehole washout is prevalent.
Drilling performance progressed significantly since the project outset as average on bottom ROP has increased from 7 to 26
m/hr between 2008 to end of 2011 (Figure 17), equaling an improvement of 370%. Similarly, an increase from 5-15 MPCH
over the same period indicates a 300% enhancement. Due to the complex geology and challenging drilling environment it has
been critical throughout the progression of operations that any application of novel technology or enhanced drilling techniques
provided a holistic benefit and would not exacerbate these preexisting issues which could be manifested to a catastrophic well
event. A controlled development cycle of optimizing BHA design and implementation of applicable technology was required
to enhance performance and enable the improvement realized to date. As such, a summary of key milestones achieved over the
life cycle of the project can be found below:
1) Initial BHA designs used in early 2008 were stabilized PDM assemblies with a PDC bit. Although significantly lower
than at present performance continued to evolve throughout 2008 and into mid-2009 at a steady pace as average drilling
ROP increased from 7-10 m/hr. This was largely achieved though the natural progression of increased knowledge and
experience of drilling particular intervals and application of operational best practices gained.
2) By the mid-2009 the first significant improvement was achieved, possible through drilling assembly enhancements
developed on two fronts. Although PDC bit designs had been employed in this section previously to reasonable effect, a
major flaw remained; due to the high compressive strength and abrasive nature of the formation, bit durability was not
sufficient to achieve the section in a single run. It therefore became standard practice in response to expected premature
dulling of the bit cutting structure, that once top of the Motskaya was reached the assembly would be POOH and a
secondary PDC bit utilized to drill the section remainder. To minimize toolface control problems and extend cutter life,
conservative 8 bladed-13mm cutter designs were employed to maximize cutter density to distribute individual cutter
loading to limit depth of cut and maintain bit stability. However, these features significantly reduced potential ROP and as
such design improvement would be required to achieve enhanced performance. As a result, a major bit contractor to field
began employing deep-leached cutter technology which would allow improved durability and performance of PDC cutters
through increasing resistance to thermal wear. The leaching process7 itself, is performed to remove residual cobalt
necessary as a binding agent to the diamond grit in the manufacturing phase. Leaching is primarily achieved through
etching the substrate with a strong acid solution, where the PDC cutter maintains an enhanced diamond-diamond bond
throughout the treated interval. This results in an increase in resistance to graphitization, likely to occur when cobalt is
present under the high frictional temperatures created near the leading edge of the cutter during drilling. Application of the
new cutters delivered an instant impact and enabled complete sections to be drilled 33% of the time in a single run where
it had not been previously possible. This advancement in PDC cutter technology also enabled more aggressive cutting
structures to be employed and the standard design soon progressed to 6 bladed-16mm cutters allowing a significant
increase in on bottom penetration rates to be achieved in addition to enhanced durability.
A second step taken to improve BHA efficiency was to re-adjust weight distribution along the drillstring. Previously,
BHA weight was provided by a number of drill collars placed directly above the primary components of the drilling
assembly, making the BHA overly cumbersome and leading to excessive parasitic torque and drag losses. Resultingly,
ineffective weight transfer was often prevalent when attempting to perform slide drilling as the assembly reached higher
deviation angles. Under these conditions the assembly would hang up through drag losses, as increasing weight was
applied, the string would eventually release to the bottom of the hole causing the motor to stall or to generate enough bit
reactive torque that directional toolface control was lost. The string would then have to be lifted off bottom, re-orientated
and brought back to bottom often with similar consequence. In order to alleviate, all drill collars bar non-magnetic collars
used to isolate MWD surveys from magnetic interference were removed from the assembly and replaced with HWDP. In
fact, only several joints of these would remain directly connected to large OD BHA components to provide balanced
transition to 5 in. drillpipe. The remainder of the required available weight was placed as HWDP to provide hammer mass
around the drilling jar placed several hundred meters behind the BHA. Any additional mass required would be placed as
necessary to provide additional weight and buckling resistance in the lower inclination section of the wellbore. By re-

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distributing the string weight a number of positive results were achieved; without the heavy components creating
excessive side force across high angle zones, drag was reduced and the propensity of the BHA to hang diminished. This
allowed for on bottom drilling efficiency, particularly when slide drilling, to significantly increase which again had a
positive effect on average on bottom and circulating rates of penetration.
Due to the application of the aforementioned enhancements to PDC bit design and alteration to BHA weight distribution,
drilling performance improved rapidly as by the end of 2009 average on bottom ROP increased from 10-17 m/hr and
MPCH from 7-10. Upon entering 2010, drilling performance plateaued as natural limitations of the current BHA were
reached, it was clear to further enhance performance significantly that alternative technology would have to be considered
to achieve the next level.
3) In early 2010, a series of trials were conducted with RSS primarily to enhance rate of penetration, improve hole cleaning
and to eradicate the issues faced with directional control as slide drilling became challenging towards section TD. The
type of RSS tool employed in the field was a push-the-bit system, where the steering mechanism consists of two main
components, firstly the control unit being the electronics chassis, connecting to and operating the mechanical Bias
Unit below. The bias unit operates by diversion of hydraulic flow through a selective valve to sequentially actuate three
pads located around the tool collar. As the RSS rotates, the controlled side force generated through pad actuation against
the borehole wall serves to apply deviation and side force to the drill bit in the opposing direction. The system can be
controlled on surface by the Directional Driller who through a series of downlink commands sent through adjusting flow
rate across a specific sequence; can alter the settings for steering direction and magnitude to maintain the desired
trajectory.
The system was initially employed in a series of 9 wells where performance in upper section intervals was determined to
surpass that of conventional PDM drilling assemblies. However, significant issues were encountered upon reaching the
hard and highly laminated layers of the Motskaya formation. Extreme stickslip and an inherent instability of the system
under influence of the high surface RPM led to a loss of directional control as the net rotation encountered at the RSS
would exceed the permissible 220 RPM limitation. As the periodic stickslip motion entered the slip phase; the high string
acceleration elevated RPM above the systems operational threshold, in turn reduced steering efficiency and the effective
DLS achieved. Typically, this would result in the trajectory falling below the plan and requiring the assembly to be POOH
and replaced with a motor with bent angle set with sufficient DLS capacity to regain directional control over the
remaining section interval without exceeding running limitations of the subsequent 7 in. casing string.
Furthermore, due to extreme vibrations and the harsh conditions under which the RSS was operating, significant damage
was sustained as a number of related ailments were discovered; including, cracks and impact damage to the bias unit body
through to extrusion of pad seals and subsequent fluid erosion on the sealing face on the body beneath. This led to a
number of the bias units becoming damaged beyond repair in a single run. Given the magnitude of equipment damage and
continuing failure to meet planned trajectories, at this juncture the implementation of RSS was determined to be almost
unviable to both the operator and the directional drilling contractor under the existing operating conditions.
4) After a brief moratorium on RSS runs in mid-2010, a practical solution was determined to overcome the numerous
challenges faced in ensuring RSS technology could be established for drilling the section. The solution proposed would be
to convert the assembly to a PRSS (Powered Rotary Steerable System, see Fig. 18). The use of PRSS in the region was
not a completely new concept and was used almost simultaneously on an offset field8 to deliver significantly enhanced
drilling performance over that achieved with traditional technologies. The primary differentiation with a PRSS BHA is the
inclusion of a high performance drilling motor behind the RSS to provide additional bit speed and torque and as a result
achieving consistently higher ROP. The ideal motor configuration for this application would deliver a high torque low
speed output, where additional torque to enable greater WOB / depth of cut to be available at the drill bit to maximize
ROP whilst retaining a low enough running speed to leave sufficient margin available to rotate the drillstring for effective
hole cleaning whils maintain the net RPM below the 220 operational limit of the RSS system.
Initial wells drilled in with the PRSS indicated excellent ROP performances again in the top interval of the 8 in. section
but still trajectories were being lost as the well path reached the Motskaya. The application of PRSS did however largely
eradicate the severe damage being caused to the BHA equipment posed by drillstring vibration. This dramatic reduction
should be considered due to the drilling environment effectively being split into two distinct regimes:
Below drilling motor: The energy imparted on the bit would include addition of that provided from surface to that
generated by the motor. This additional bit speed and torque would develop an increased dynamic rotational coefficient
which would overcome the stalling effect from the interaction between the formation and cutting structure of the drill bit.
Stickslip severity would be therefore be greatly diminished and the bit remain largely free to rotate without major
hindrance.

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11

Remainder of drillstring: Drillstring dynamics modeling and actual vibration monitoring indicated an inherent instability
of the drillstring existed as the standalone RSS BHA was rotated at high string velocity 120-180 RPM. With PRSS the
surface RPM would require restriction to maintain within the RSS operating threshold, incorporating the motor RPM
output and a small operating window to allow for a moderate level of residual stickslip. This allowed for a continuous
RPM of 40-60 to be applied from surface which in comparison greatly limits the magnitude of energy present across the
drillstring to initiate adverse vibration. Again, drillstring dynamics modeling indicated for significantly increased stability
under field drilling conditions, an effect borne out in reality by decrease in witnessed drillstring vibration and subsequent
damage to BHA components. However, with problems still present in achieving the trajectory, in order to ensure the
economic viability of PRSS, it would be essential to ensure the section could be drilled in a single run. To achieve this an
intensive 3 month optimization cycle was performed to enhance performance, examples of which listed as below:

Trajectory Design: Original directional requirements planned with RSS BHAs were generally at or slightly in excess of
3/30m, however this was determined to be outside the systems capabilities under the given conditions so maximum
planned DLS across the Motskaya was restricted to 2/30m. To simplify steering requirements further, across the middle
Motskaya well planning was altered so that only building angle would be required without combination of azimuth turn.
In addition, a belief was held that a significant component of steering issues encountered were related to the angle of
incidence and the resultant distribution of WOB applied crossing the highly laminated variable hardness layers across the
Motskaya. More specifically as the differing layers were transversed (sometimes < 2 cm thickness) at each interface the
bit would encounter continuous micro-deflections as it crossed from hard to soft layers reducing the achieved DLS. In
order to mitigate this, it was decided that the wellbore inclination would be maintained at the Motskata top at a minimum
angle above median to horizontal to prevent the vertical component of the WOB vector being dominant.

BHA Design: A number of improvements were made to the standard PRSS BHA design, with focus predominantly
centered on enhancing the systems achievable directional response. In order to reduce stiffness of the assembly the PDM
sleeve stabilizer was removed to leave the sole stabilization on the RSS control collar. To mitigate fatigue cracking around
the adjustable bend housing connection (zero for PRSS) the motor was modified with an entirely straight section without
option to set offset. Also, a polygon transmission section was used to connect to the bit drive shaft to enable higher WOB
loads and maximize drilling performance over the standard design. It would also prove desirable to include a flex joint in
the drilling assembly, with reduced cross section and component stiffness the flex would bend under compressional load,
allowing an incremental increase of DLS for the assembly. The flex joint would also prove beneficial beyond directional
response by effectively decoupling steering components from the stiffer MWD and NMDC collars located behind. Prior to
inclusion, the most obvious and intuitive location for the flex joint would be directly between the PDM and RSS; however
anecdotal evidence of this configuration stated that severe shock and vibrations may result under certain conditions. In
order to qualify these claims, drilling vibrations modeling was performed under a number of scenarios. In the case with a
flex joint located below the motor at high angle and with expected operating parameters indication was that the lower
assembly could enter a state of chaotic whirl under extreme transverse and torsional vibration. As a result this option
would be discounted; as a compromise the flex joint was placed behind the ustabilized drilling motor, allowing the active
directional drilling components to be decoupled from collars behind whilst retaining a degree of influence under load to
enhance DLS performance. Upon analysis of several wells drilled with and without the flex joint, it was determined on
average that inclusion of the flex allowed an additional 0.5/30m to be achieved whilst the RSS was operated in a 100%
steering setting with an appropriate level of WOB.

Drilling Parameters: One deficiency of the standard PRSS BHA design is that due to no through-wire connection across
the drilling motor it would not be possible to receive real time data communication with the RSS. However, application of
electromagnetic transmitter and receiver subs would allow the real time steering data to be transmitted across the motor to
the MWD tool and then to surface through traditional mud pulse telemetry. A trial application of this technology delivered
another key breakthrough, where upon analysis of continuous DLS data at the bit it was a clear relationship between ROP
and DLS response was determined. It was noted that as ROP was restricted to 10 m/hr across critical Motskaya zomes that
directional response significantly improved in comparison to drilling with maximum possible penetration rate. This is
believed possible due to two effects, firstly that reducing ROP rate allows greater RSS pad actuations per meter drilled
and secondly as the less WOB applied at lower ROP restricts the severity of the aforementioned micro bit deflections seen
as it continuously transits between hard and soft formation layers.

5) After establishing successful directional performance of the PRSS system, challenges were still faced in regularly
achieving sections in a single run. Maintaining drill bit durability under application of high WOB and RPM in the hard
formation intervals, particularly with a PRSS configuration, was challenging as often two bits were still required to
complete the section. To address this problem a vendor began a process of design optimization by use of an integrated
drill bit design package which could model performance sensitivity of directional response, penetration rate, durability, bit
stability etc for a given formation interval. After a series of iterative modeling and testing cycles, a design was developed

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which significantly enhanced overall performance. A 7 bladed-16mm cutter design furnished with the latest generation of
deep-leached cutter technology and with enhanced gauge abrasion resistance allowed sections to be drilled consistently in
a single run with the PRSS system and a number of ROP performance records to be set consecutively. Further
optimization has since included under-cut gauge pads, enabling increased bit tilt as the PRSS system directionally biases
and allowing for an additional ~0.5/30m of directional response at full steering setting and thus extending the potential
applicability of PRSS to an increased number of wells in the field.
Through implementation of the optimization plan the fortune of drilling with PRSS in the field was transformed as the strategy
prevented the requirement to POOH to correct missed trajectories from insufficient directional response. Success with the
PRSS enabled a step change in performance to be achieved as average ROP increased by 56% over that with PDM. In turn,
increased drilling speed allowed an impressive reduction in section drilling time (Figure 19) as average time to drill 1000m in
the 8 in. would be cut from 6.56 to 3.52 days in cases where PRSS was used in comparison to a drilling motor. Due to
improvement achieved in directional response the PRSS system use could be expanded to ~50% of drilled trajectories, a figure
which sits comfortably with economic viability as estimates indicate diminishing return above this threshold for the operator
due to increased service cost.
6 in. Section
The 6 in. section intervals are drilled on producer wells and begin at the base of the 7 in. casing shoe and are generally drilled
at deviation near horizontal for 500-1000m of lateral length in the Verknechonskiy reservoir. In the majority of wells, drilling
is relatively benign in comparison to overlaying zones, allowing primary focus to be kept on optimizing trajectory to maintain
exposure in the productive reservoir layers and deliver a maximized NTG (net-to-gross) return. As such, the ability to enhance
steering efficiency and capability to maintain the trajectory in reaction to localized changes in the thin and often undulating
reservoir has proven the driving force to enhance BHA design and drilling performance throughout the history of the project in
this section. Since the beginning of drilling lateral sections at VCNG in late 2008, average on bottom drilling ROP (Figure 20)
has increased ~400% from 5 m/hr to consistently averaging 20 m/hr by the end of 2011. Over the same period MPCH
followed suit with average increase of 3-9 enabling an improvement of ~300%. Below is a summary of key milestones reached
for drilling this section over the lifespan of the project:
1) During the majority of 2008, 6 in. hole sections were not drilled as the predominant well design were slant trajectories
reaching TD in 8 in. The introduction of slimhole sections did not begin until late that year, where initial wells were
drilled with stabilized PDM and PDC drill bits assemblies. Initially performance was relatively low with average ROP of
5 m/hr not uncommon due to problems faced slide drilling efficiently. In particular, difficulties ensuring effective weight
transfer through drag impeded BHA translation, before the string released causing motor stalling and difficulty
maintaining steering toolface. These problems were exacerbated in slimhole with the low string weight, high twist and
reactive torque encountered with the low torsional resistance provided by the small OD (3 in.) drillpipe.
2) By the middle of 2009, first trial applications of RSS were seen as the natural progression to enhance performance.
Having the ability to continuously rotate the drillstring whilst performing directional work would largely eliminate issues
through poor weight transfer and resultant low ROP when slide drilling. Implementation of RSS provided an
instantaneous increase in ROP as on bottom performance doubled from 6-12 m/hr. After completion of a successful trial,
over a several month period limited 6 in. sections were drilled as operations returned to drilling with PDM as the
directional drilling provider increased tool unit count prior to increased activity.
3) Activity increase in early to mid-2010 saw increased expansion of RSS, heralding a corresponding increase in ROP as the
average peaked in excess of 20 m/hr for the first time. However, in the subsequent 6 month period another reduction in
drilling lateral sections and with desire to reduce section service cost RSS technology was utilized sparingly through until
the first several months of 2011. As a result ROP performance suffered as it dropped and maintained around a threshold of
10 m/hr.
4) By the end of Q1 2011, and with the differentiation in drilling performance versus conventional motor technology
established the decision was taken to expand use of RSS as primary BHA choice for drilling all lateral 6 in. sections at
VCNG. Average drilling performance increased instantly back to achieve a mean of 20 m/hr, enabling a corresponding
reduction of section time of around 3 days on average over previous PDM drilling performance. The advent of full RSS
usage also enabled an expansion in the use of geosteering practices. Enhanced steerability at high angle was made
possible as drag and associated weight transfer issues were largely eliminated by the fully rotational RSS system. With
analysis of real time steering LWD Petrophysical data the trajectory could be deviated from the geometrical plan to
optimize exposure to the reservoir and enhance hydrocarbon productivity. As a result of the application of geosteering in
around 25% of wells drilled annually (Figure 21) oil recovery has been enhanced in the thin and often heterogenous
reservoir interval from approximately 30-50% NTG to regularly achieving in excess of 70% and even as high as 86%. As
a result enhanced production rates of up to 250 mtpd (~1800 bpd) have been realized, maintaining the viability of the RSS

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13

technology and LWD data requirements essential for geosteering. As the use of real time trajectory optimization has
increased in the field, the necessity to slow ROP to maintain LWD data quality and to enable sufficient time to update
reservoir models prior to enacting steering decisions has become increasingly prevalent as such has led to a gradual
decrease in to ~15-20 m/hr over the course of 2011 at which current performance has stabilized.
Future Development
Over the course of the project life cycle, the drive for performance optimization has undoubtedly delivered outstanding results
as focus has been maintained on continually evolving operations to eliminate non-efficient practices and to significantly
increase drilling rate of penetration. This enabled performance to encroach towards the perceived technical limitations for the
field as overall well construction time has fallen dramatically from 58 to 21 days by the end of 2011. However, there remains a
number of currently trialed or future opportunities available to the field which could advance performance even further. One
such example would be the recent application of oil based drilling fluid in intermediate 8 and 6 in. production sections. In
particular benefits have been realized in the 8 in. section as it enabled enhanced hole cleaning through improved rheology
control along with somewhat reduction in breakout volume seen across the unstable argillite shale. Furthermore, increased
lubricity of the oil based fluid in comparison to the traditionally used salt saturated system has enabled a measured reduction in
drillstring drag as open hole friction factors have approximately halved from 0.3 to 0.15. Use of oil based fluid has also
enabled a distinct improvement in efficiency of setting the 7 in. casing string as running friction factor have reduced from ~0.5
as seen with water based fluids to 0.35-0.4; allowing additional string weight available to overcome drag particularly as the
casing hangs up across unstable shale intervals. Without doubt, increased application of oil based fluids would prove
technically advantageous however as previously discussed the obvious economic and environmental factors at the remote field
location have to be taken fully into consideration.
Another potential solution to enhance efficiency running the 7 in. casing would be to enlarge hole size to allow increased
effective annular clearance. Several, attempts have been made to directly increase bit size from 8 in. to 8 in. but as of yet
have not yielded a significant enough improvement to warrant replacement of existing directional equipment to accommodate
the revised bit size. The increase of a quarter inch is relatively marginal and any predicted benefit may not be achieved unless
a more significant increase in pass through diameter is made. As such, application of an expandable concentric underreamer
has been considered as part of the fully rotational PRSS drilling system. With the cutter arms of the reamer locked an
undergauge assembly would be able to pass through the 9 5/8 in. casing ID before being hydraulically activated in open hole
prior to drilling and enlarged hole up to 9 in diameter. Once circulation is stopped; without sufficient back pressure the
cutter arms collapse allowing the assembly to be tripped back through the original casing string to surface. However, several
key technical challenges would have to be overcome to fully deploy the system. Including how to effectively clean and
condition the enlarged hole with the restricted surface RPM envelope available with the PRSS system. Also, with the hard and
highly laminated formation intervals present at VCNG, a risk of mismatching drilling speed between the bit and reamer exists.
More specifically, if drilling differing intervals the bit may out drill the reamer causing the string to hang up at the reamer and
leaving increased degree of freedom below, greatly increasing the risk of sustaining severe shock and vibration. Although, this
BHA has not yet been utilized in the field, despite the inherent technical challenges and increased cost it remains under strong
consideration for future application.
One final major advancement which could be applied to the intermediate 8 in. would be the application of the latest
generation of RSS technology. The first truly hybrid system is so called as it contains key differentiations on how it steers as it
incorporates principles of design from both push and point-the-bit systems. As such, it has been engineered to achieve
directional control through deflection of a steering shaft attached to the bit which is offset by the biasing action of actuating
pads located internally within its collar. Application of this technology could consistently achieve a formation dependent DLS
<15/30m across a continuous curve; increasing operational capabilities of RSS to achieve a response previously achievable
only with application of steerable motors with high bent offsets. The rationale behind employing this technology would be to
increase the achievable DLS of RSS system to enable deeper directional kick offs and to shorten overall well length by around
500m to again reduce section drilling time. To date, the novel hybrid system has been employed on 2 wells drilled at VCNG in
2012. To ensure that 7 in. casing can still be successfully run, the strategy has been to moderate planned DLS to 5/30m and
gradually increase based on results gathered as trial phase progressed. However, the first trial did not prove successful as
unfamiliarity with the system and its specific steering reaction to the field geology meant that the trajectory was lost in the
Motskaya and the well had to be plugged back and a directional sidetrack performed. The second trail was deemed a success
through application of a number of lessons learned determined based on the experience from the previous well. The system
ultimately proved its potential by delivering a consistent DLS in excess of 6/30m in the Motskaya interval, almost three times
greater than a standard RSS push-the-bit configuration. In terms of drilling performance, the ROP was significantly lower than
realized with a standard PRSS system under the absence of the additional bit speed and torque applied from the high
performance motor. Therefore in the longer term, in order for the high DLS RSS to prove technically and commercially viable
for expanded utilization at VCNG it would be essential that the BHA configuration migrates to that of a PRSS system to
maintain the enhanced DLS yield whilst achieving penetration rates comparable to that seen with the push-the-bit PRSS
system deployed in the field.

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Nomenclature
ESPO = Eastern Siberia Pacific Ocean Pipeline
ROP = Rate of Penetration
MPCH = Meterage per Circulating Hour
O&G = Oil and Gas
ECD = Equivalent Circulating Density
TD = Total Depth
ERD = Extended Reach Drilling
BHA = Bottom Hole Assembly
POOH = Pulled Out Of Hole
DLS = Dogleg Severity
RSS = Rotary Steerable System
MSE = Mechanical Specific Energy5
NTG = Net to Gross

PDC = Polycrystalline Diamond Compact

MWD = Measurements While Drilling
RPM = Revolutions per Minute
PRSS = Powered Rotary Steerable System
AFE = Authority For Expenditure
PDM = Positive Displacement Motor
WOB = Weight On Bit
RC = Roller Cone
MD = Measured Depth
KOP = Kick Off Point
OD = Outer Diameter
NMDC = Non-Magnetic Drill Collar
LWD = Logging While Drilling

References
1. Wilson, K., Shokarev, I., Small, J., Akhundov, E. 2010. Results of New Drilling Technology Application on the
Development of Verknechonskoye, a Complex East Siberian Field. (SPE 125969) SPE Oil & Gas Technical
Conference, Moscow, Russia 26-28th October 2010.
2. Chashkov, A.V., Gordeev, Ya.I., Menyakin, V.F. 2011. Experience of Applying Geosteering to Drill Horizontal
Wells in Salinization Reservoirs of Eastern Siberia (SPE 149909) SPE Arctic and Extreme Environments Conference,
Moscow, Russia 18-20th October 2011.
3. Hoek, E., Marions, P., Benissi, M., 1998. Applicability of the Geological Strength Index (GSI) for Very Weak and
Sheared Rock Masses. The Case of the Athens Schist Formation.
4. J. Ford Brett, SPE, Oil & Gas Consultants Intl. Ltd. 1992, SPE Drilling Engineering Volume 7 No.3, The Genesis of
Torsional Drillstring Vibrations
5. Dupriest, F.E, Witt, J.W, Remmert, S.M, 2005. Maximizing ROP with Real Time Analysis of Digital Data and MSE
(IPTC 10607) International Petroleum Technology Conference, Doha, Qatar 21-23rd November 2005.
6. Aldred, W.D, Sheppard, M.C., 1992. Drillstring Vibrations: A New Generation Mechanism and Control Strategies
(SPE 24582), 67th Annual Technical Conference and Exhibition of SPE, Washington DC, USA, 4-7th October 1992.
7. Bellin, F, Dourfaye, A, King, W, Thigpen, M. 2010, The Current State of PDC Bit Technology, Special Focus
Advances in Drilling, World Oil, October 2010 Issue, pages 53-58
8. Okafor, Z., Buchan, A., Diyanov, D., Rawlins, S., Zhadan, G., Nikitenko, Y. 2011, Application of Tandem Rotary
Steerable-Positive Displacement Motor Bottom Hole Assembly in Drilling Horizontal Wells: Case Study of Three
Eastern Siberia Wells (IADC/SPE 140241) SPE/IADC Drilling Conference and Exhibition, Amsterdam, The
Netherlands, 1-3rd March 2011.
9. http://www.resourceinvestor.com/2011/09/13/chart-of-the-week-can-russia-stay-1 (Accessed 19th April 2012)
10. http://www.tnk-bp.ru/en/center/releases/2005/08/3089/ (Accessed 19th April 2012)
11. http://www.vcng.ru/en/about/stock/ (Accesses 19th April 2012)
12. http://www.vcng.ru/en/news/detail.php?ELEMENT_ID=1475 (Accessed 20th April 2012)

Unit Conversion Factors

ft x 3.048* E-01 = m
in x 2.54* E+00 = cm
mm x 1.00* E-03 = m
psi x 6.894 757 E-03=MPa
gal x 3.785 412 E-03 = m3
boe x 6.841 E+00 = toe (approximate - barrel to ton of oil)
ppg x 8.33 E+00 = SG
*Conversion factor is exact.

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Figure 1: Russian Oil Production per Region9

Figure 2: Verkhnechonskoye Location Map

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Figure 3: Mechanical Earth Model - Unstable Shale Interval

Figure 4: Mud Weight Requirement Example Well Trajectory

Figure 5: Principle Stress Variations Through Faulting

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Figure 6: VCNG Rock Compressive Strength and Lithological Column

Figure 7: Relative Classification of Rock Strength3

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Figure 8: Verkhnechonskoye Unconfined Compressive Strength Distribution

Figure 9: Stickslip Comparison 5 to 5 DP on Similar Well Profiles

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Figure 10: Torque Reduction with Ester Based Lubricants

Figure 11: VCNG Drilling Performance 2007-2011

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Figure 12: VCNG Drilling Performance Evolution

Figure 13: Average Well Construction Time 2008-2011

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Figure 14: Average Annual Wells Completed / Active Rigs

Figure 15: 17 in. Section Performance

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Figure 16: 12 in. Section Performance

Figure 17: 8 in. Section Performance

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Figure 18: Powered-RSS Drilling Assembly

Figure 19: PDM vs. PRSS Performance 8 in. Section

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Figure 20: 6 in. Section Performance

Figure 21: Geosteering Example in VC-1 Reservoir