Professional Documents
Culture Documents
halliburton.com/cruzer
IS IN YOUR WELL?
www.otekind.com
DRILLING
D RILLING & S T I M U L AT I O N
STIMULATION
COMPLETION & PRODUCTION
Cement Additives:
improves cement Drilling Chemicals: Production Chemicals:
performance and bonding Inc
Increase drilling speed, efcient cuttings fewer interventions and more
for better zonal isolation. removal
rem
re moval and reduce downtime. production.
Casing Accessories:
ensure the integrity of
the well construction and
cementing operations.
Contributions come from Baker Hughes, Shear Bits, and Ulterra. 35 The mooring disconnect
Amanda Dorman, Delmar Systems Inc., USA, introduces a new and
efficient method of releasing from a mooring system.
39 Combatting corrosion
Front cover Audun Oppedal Pedersen, ClampOn, Norway, explores the benefits of
monitoring structural health with guided waves.
This month Halliburton
announced the launch of
Cruzer Depth-of-Cut Rolling
Element for PDC drill bits. 43 Insights into inspection
Andreas Boenisch, Innospection Limited, UK, introduces new
The Cruzer feature, which developments in flexible riser inspection technology.
can be selected during the
design process, helps the drill
bit maintain more uniform 46 Fixing the bigger gaps
cutter engagement without Brady Austin, Bill Mason, Garry Moon and Jarret Reeves, Lloyds Register,
sacrificing additional torque demonstrate that onshore and offshore, there is a need to look beyond
as the features rolling action gas detection.
allows more energy to be
available for cutting the rock.
ISSN 1757-2134
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Master Your Terrain
ReedHycalog Tektonic drill bits are
tailored for your specific challenges.
nov.com/reedhycalog
2016
was a year of disruption; the UKs Brexit david.bizley@oilfieldtechnology.com
vote and the outcome of the most Editorial Assistant: Louise Mulhall
contentious US election in decades are just louise.mulhall@oilfieldtechnology.com
two examples. It should perhaps have been obvious that a year that
started out by taking David Bowie from the world was not going to Design
pass by without making a mark, but after optimistic reports of price Production: Charlotte Reynell
recovery in (as it was then) the New Year, few expected the price of Brent Crude to plunge as charlotte.reynell@oilfieldtechnology.com
halliburton.com
World news January 2017
Diary dates
McDermott awarded offshore EPCI contract from
Saudi Aramco
01 - 03 February, 2017
Subsea Expo McDermott International, Inc. has announced a contract award from Saudi Aramco for
Aberdeen, UK the engineering, procurement, construction and installation (EPCI) of four jackets and
E: events@subseauk.com three gas observation platforms offshore Saudi Arabia. The total weight of all structures
www.subseaexpo.com combined is 11 595 t.
As the third fast-track jacket contract from Saudi Aramco in the last 18 months,
21 - 23 February, 2017 this award is a testament to McDermotts successful performance on previous fast-track
projects for Saudi Aramco, said Linh Austin, McDermotts Vice President, Middle East &
IP Week Caspian. McDermotts fully-integrated EPCI solution provides Saudi Aramco schedule
London, UK
certainty, one of their key drivers, while helping them meet their aggressive schedule.
E: joanne.mcbratney@hg3.co.uk
www.ipweek.co.uk McDermott is currently executing EPCI work for Saudi Aramco on nine jackets offshore
Saudi Arabia, which are expected to be delivered in the third quarter of 2017. The contract
award will be reflected in McDermotts fourth quarter 2016 backlog. Work on the contract is
22 - 24 February, 2017 expected to be executed through the fourth quarter of 2017.
Australasian Oil & Gas McDermott plans to use its Engineering teams in Dubai, Chennai, India and Al Khobar,
Perth, Australia Saudi Arabia with construction taking place at McDermotts fabrication facilities in Dubai
E: aog@infosalons.com.au and Dammam, Saudi Arabia. Vessels from McDermotts global fleet are scheduled to
www.aogexpo.com.au perform the installation work.
14 - 16 March, 2017
SPE/IADC ExxonMobil & Tillerson reach agreement to comply
The Hague, The Netherlands with conflict of interest requirements
E: service@spe.org
www.spe.org The board of directors of Exxon Mobil Corporation has reached an agreement with
Rex W. Tillerson, former chairman and chief executive officer, to sever all ties with the
29 - 31 March, 2017 company to comply with conflict-of-interest requirements associated with his nomination
as US Secretary of State.
OMC 2017 Under the agreement developed in consultation with federal ethics regulators, if
Ravenna, Italy
Tillerson is confirmed as secretary of state, the value of more than 2 million deferred
E: conference@omc.it
www.omc2017.it ExxonMobil shares that he would have received over the next 10 years would be
transferred to an independently managed trust and the ExxonMobil share awards would
be cancelled. The trust would be prohibited from investing in ExxonMobil and the trustee
Web news would manage the assets consistent with government ethics rules. Payments to Tillerson
highlights from the trust would be subject to the same 10-year schedule that the cancelled awards
would have had if they had continued in place.
Seatronics announces new partnership Tillerson would also surrender entitlement to more than US$4.1 million in cash
agreement with Force Technology. bonuses, scheduled to pay out over the next three years, and other benefits such as retiree
First rigs to arrive for decommissioning medical and dental benefits, and administrative, financial and tax support. The one-time
in Great Yarmouth. payment to the trust would be equal to the value of Tillersons cancelled shares based on
Encana expects 2017 plan to exceed
a volume-weighted average price per share. Consistent with guidance from federal ethics
regulators, the value would be reduced by about US$3 million.
forecasts.
The trust would include forfeiture rules that would prohibit Tillerson from working in
AkerBP: 1 billion barrels produced at the oil and/or gas industry during the 10-year payout period. The trust rules dictate that in
Valhall. the event of forfeiture, the money would be distributed to one or more charities involved
in fighting poverty or disease in the developing world. Neither Tillerson nor ExxonMobil
would have any control over the selection of the charities.
To read more about these articles The net effect of the agreement is a reduction of approximately US$7 million in
and for more event listings go to: compensation owed to Tillerson. Tillerson retired on Dec. 31 with more than 40 years
of service with ExxonMobil. Separate to the agreement with ExxonMobil, Tillerson has
www.oilfieldtechnology.com also committed to the State Department that, if confirmed, he would sell the more than
600 000 shares in ExxonMobil he currently owns.
AR
YE
Y FIVE
THIRT
1982 - 2017
www.geolog.com
World news January 2017
Petrofac awarded Oman Rabat Deep Offshore Eni Lion Energy encouraged
gas project farm-out approved by Amanah Timur-1 well
Petrofac has signed a contract Chariot Oil & Gas Limited has reported Lion Energy Limited has noted that
worth close to US$600 million with that the farm-out signed between Chariot encouraging gas readings, combined
Salalah LPG SFZCO LLC, wholly owned Oil & Gas Investments (Morocco) Ltd. and with some oil fluorescence shows have
subsidiary of Oman Oil Facilities a wholly owned subsidiary of Eni has now been encountered in the objective 400
Development Company LLC, to undertake been approved for the Rabat Deep Offshore sandstone from 80 m KB to the midnight
the engineering, procurement and permits I-VI by the Moroccan authorities. depth of 154 m KB. On reaching planned
construction (EPC) of its Salalah LPG Eni is now operator of these permits. total depth of 570 m KB, the section will
extraction project in the southern part of Ownership is now as follows: Eni be evaluated with wireline logs and likely
Oman. (operator, 40%), Woodside (25%), production testing to confirm fluid content
Marwan Chedid, Petrofac Group Chariot (10%) and Office National des and reservoir quality.
COO, commented: This contract is our Hydrocarbures et des Mines (25%). Lions CEO, Kim Morrison noted the
11th in the Sultanate and reinforces our Chariot CEO Larry Bottomley, elevated gas readings with some oil shows
commitment to Oman where we have been commented: We are pleased to have over a 60 m section in the shallow objective
present since 1988. satisfied all conditions precedent and are very encouraging. We would note
This project will further support our welcome Eni as the operator of the Rabat wireline log evaluation and production
commitment to increase in-country value. Deep acreage. We anticipate that further testing will be required to determine fluid
We will continue to maintain strong focus to completing the Environmental Impact content and potential commerciality of
on this aspect of our delivery, particularly Assessment, finalising well planning and the interval. We will continue to keep the
by engaging the local supply chain and securing a rig, drilling will now occur in market informed of result on this exciting
recruiting local resources. early 2018. well as we drill the deeper objectives.
DiGiTAL
DiSRUPTiON
iN THE
iN THE
AfRiCAN
OilfielD
10 |
A
sk anyone in the oil and gas business today about their greatest challenges, and cost
control will likely come out near the top of the list. With depressed global oil prices, the only
way to improve margins is through efficiency gains doing the same with less. Traditionally,
this means reduced staff headcounts and applying pressure for reduced pricing from service
providers. Strategy& analysis has shown that revenue from the 18 leading upstream, midstream
and oilfield services companies in the US have decreased by 40% between Q3 2014 and Q3 2015.
Over the same time period, operating expenses have declined only 9%, and PwC believes that the
reason for this is that traditional methods of cost optimisation are approaching their limit, due to
the high fixed costs associated with the industry. For a long time, business success has been based
on cost competitiveness, but now there is a real desire to compete instead on value, created through
innovation. Digital transformation may be the answer.
| 11
It is clear that oil and gas organisations must take the time Digital must be seen as an enabler. It is a way of doing
now to apply transformational digital applications. Not only will things underpinned by the technology trends of social, mobile,
new technologies increase margins and improve efficiencies, they analytics, cloud and cyber (SMACC). Digital means that companies
also have the potential to disrupt the entire market, changing how and individuals are using new technologies to achieve a variety
people think, how business is conducted, how people learn, and of outcomes in a variety of ways previously unimaginable or
how they conduct themselves on a daily basis. non-feasible. Figure 1 summarises the five elements of SMACC.
The problem is that oil and gas companies are slower than other Digital in oil and gas is not just about technologies. It is about
industries to respond to using new technologies. This has been redefining the operating model, simplifying underlying systems,
especially the case when it comes to digital. According to a recent empowering people and enabling deep organisational change.
CEO survey, oil and gas companies are much less likely to use social Digital must be broader than the historical digital oilfield concept
media, data analytics and CRM systems than other industries, such which has a strong focus on oil and well production optimisation.
as financial services. The energy industry tends to be inherently Some of the areas that are and will be affected include: asset
conservative, considering the high capital investments and long tracking; safety alerts; drilling data; fleet management; operations
payback periods. Energy executives tend to prefer proven solutions data; inventory management; equipment performance; field data
as opposed to new ideas that may or may not get the job done. capture; problem area scanning; and facility optimisation.
Some find this quite surprising given the reception that new There are five major market themes that will have an effect
technologies and engineering solutions have always had from oil on digital transformation in the oil and gas industry, including:
and gas companies over the years. The difference is that these the internet of things (IoT), building alliances, simplification and
solutions have always provided tangible and measureable benefits standardisation, solution-based buying and knowledge transfer
at an operational level, many times improving recovery rates or from international oil companies (IOCs) or national oil companies
overall production. (NOCs) to oilfield services companies (OFS).
In addition to these themes,
there are a number of specific
digital solutions which are already
being implemented across the
upstream space from exploration
through to production. When
these capabilities are present and
working as a system, the digital
oilfield becomes a reality. An
example follows in Figure 2.
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