SPE/IADC 108298

Optimized Drilling Cost Per Foot in KPC Versus the Increase of Drilling Tangible and
Intangible Cost (Case Study)
O. El Bakly, K. Ali, and M. El Dawey, Khalda Petroleum Company

Copyright 2007, SPE/IADC Middle East Drilling Technology Conference & Exhibition
ft and 13100 ft achieved 140 US$/ft versus 175 US$, wells
This paper was prepared for presentation at the SPE/IADC Middle East Drilling Technology more than 13100 ft achieved 185 us$/ft versus 265 us$/ft.
Conference & Exhibition held in Cairo, Egypt, 2224 October 2007.
It is concluded that, it is not necessary to depend only on the
This paper was selected for presentation by an SPE/IADC Program Committee following review
of information contained in an abstract submitted by the author(s). Contents of the paper, as
new technology for achieving lower drilling cost per foot, but it
presented, have not been reviewed by the Society of Petroleum Engineers or International is as well as important to adapt the drilling techniques to
Association of Drilling Contractors and are subject to correction by the author(s). The material,
as presented, does not necessarily reflect any position of the SPE, IADC, their officers, or desired requirements.
members. Electronic reproduction, distribution, or storage of any part of this paper for
commercial purposes without the written consent of the Society of Petroleum Engineers and
International Association of Drilling Contractors is prohibited. Permission to reproduce in print is Introduction
restricted to an abstract of not more than 300 words; illustrations may not be copied. The
abstract must contain conspicuous acknowledgment of where and by whom the paper was
presented. Write Librarian, SPE, P.O. Box 833836, Richardson, TX 75083-3836 U.S.A.,
fax 1.972.952.9435.
Recently, as prices of oil getting higher, majority of
operator start targeting low productive reservoirs to enhance
Abstract production. Cost of materials and services are getting expensive
KPC challenges was and still to maintain the lower cost per affecting the cost of produced oil barrels. The needs of adapting
foot in western desert of Egypt using a competitive solutions the drilling techniques to the formations drilled became
and designs to overcome increase of drilling materials & important to reduce drilling cost per foot and consequently
services costs in structures with low productive reservoirs. reduce cost per barrel.
This wasdone through customizing the following The majority wells of Western desert of Egypt are low
parameters: productive and depleted type reservoirs, majority of formation
Using slick BHA rather than stiff BHA which are laminated type consisting of series of sand,sandstone, shale
improved rate of penetration for western and lime stone interbeded.
deserts formations (Doubling ROP) Formation dip is changing from area to another with fair
associated with good Hole trajectory. part of low dip formations.
Down hole losses while drilling, formation stabilities due to
Improving casing design to minimize number
shale problems (time sensitive) and hole washouts are some of
of casing strings, exposing long (Stable) open
the common problems encountered while drilling.
hole sections while drilling.
Reviewing & enhancing drilling mud systems
Defining the challenges
to maintain good hole stability through long
deep open hole sections (+/- 11000 FT
An average of two hundred wells (Current plan) and four
exposed section).
hundred workover jobs (including original completions) are
Optimizing bits usage to be compatible with taking place per year in khalda petroleum company (Egypt
drilled formations. western dsert). The next table will summarize the activities of
Reviewing cement designs to cover low drilling per year for last three years indicating +/-20% growth
fractured formations, using low cost high per yaer (Table-1 indicate rig distribustion).
quality cement to overcome gas migration by
optimizing transition time.
Optimizing rigs fleet and maximizing rigs
utilization to perform drilling & workover
wells effectively & safely.
The use of slim hole design.
2006 activities represent wells from june
In this domain, KPC presents its experience in reducing the cost 2005 till june 2006.
per foot. KPCs obtained cost/ft was proven to be the lowest Current plan will be done using a total of 23
cost all over Egyptian westetrn desert compared to sister rigs (14 drillng rigs + 9 workover rigs).
companies in same area, wherever, the wells below 8200 ft
By end of 2007, number of rigs will reach +/-
have an average of 50 US$ versus 60 US$, wells between 8200
31 rigs.
2 SPE 108298

number of casing strings significantly decrease number of days

per well and reduce drilling cost.

Improving rate of penetration was the key factor to reduce

cost per foot and Minimizing the time of exposure of drilled
formations. Comparison of drilling with slick bottom hole
assemblies (using no stabilizers Fig 2) versus Packed bottom
hole assemblies revealed that we are significantly improving
rate of penetration (1.8 time ROP of stabilized BHA) with no
effect on bottom hole location and zonal isolation as indicting
in cement bond evaluation logs (Fig 3).

Well bore designs (Fig 1) were standardized according to

depth, shallow wells are drilled to total depth of +/- 7000 ft as a
12 surface hole and 8 hole to T.D., 7 production casing
ran to total depth. Medium depth wells are drilled in two phases
down to +/- 10000 ft using same design for the majority of
wells.

FIG. 2

Drilling with non stabilized Bottom hole assembly was used

with no impact on open hole logging, running casing and zonal
isolation.

FIG. 1

Deep wells, normally drilled in three phases, starting with

17 hole, 12 intermediate and ending with 7 liners to
depth ranging from 13000 ft down to 15000 ft or deeper,
intermediate casing normally ran at a casing point reached after
drilling through +/- 11000 ft of open hole exposed. Minimizing
SPE 108298 3

Simple cement slurry design is used for shallow wells with

improving placement techniques, gas blocking agents and
improving transition time for cement slurries in high
temperature gas wells was the answer for improving zonal
isolation. Remedial cement jobs were rarely needed.

A gas migration problem is one the common problems in

western desert especially when it is accompanished with deep
high temperature wells.

In Qasr field and some other fields, we faced the issue of

gas migration at depths ranges between 13500 ft and 14500 ft
and temperature ranges between 290 degree F. and 320 degree
F. which makes the overcoming of gas migration along with
cost controlled cementing design without affecting the
efficienty of cementing process a challenge.

Gas migration is one of the prevalent problems in the

industry reaches throughout the years have been done to
determine how gas migration initiated and effect in various
additives and techniqes control the flow.

Drilled wells are surveyed (Fig-4) by the end of well, wells

are logged, production casing ran and cemented with a great
percentage of success. Low dip formation was a great help in
FIG.3A avoiding drilling deviation ending the wells within target
formation tolerance. Use of slick BHA was a great help of
maximizing rate of penetration, reducing tendency of getting
stuck to less than 5% of drilled wells.

FIG.3B
FIG.4A
4 SPE 108298

Cost per foot were calculated and compared against other

operator (Fig-5, 6 & 7 ) working in Egypt western desert (as per
the following figures), these adapted techniques for drilling
were proven to have the lowest cost per foot compared with
other operator in same area.

FIG.4B

Bit optimization was another point, shallow wells are drilled

with two bits in two different sizes, bits doing 5000 ft or more FIG. 5A
than 150 drilling hours were a common practice. Three tri-cone
bits were achieved down to +/- 9000 ft. the suitable bit for the
suitable formation was the key solution.

A wide range of rigs with different horsepower (2000 HP /

1500 HP / 1200 HP / 1000 HP / 750 HP / 500 HP) and
capabilities were effeciently selected to execute work load,
after wells being drilled to Total depth, drilling rigs are released
and wells are completed with less power rigs, more drilling
days wree gained this way, rig moves were optimized to reduce
idle time and completions / workover jobs achieved were
maximized.

The use of slim well design for shallow wells by running 8

5/8 surface casing and producing through 5 production
casing was another approach for reducing drilling cost per foot,
meanwhile a fair portion of the work will be done rigless.
Once production casing ran, cement bond logs and
hydraulic fraction jobs are done rigless, leading to save a fair
amount of rig days which reflect on cost reduction.
The use of water base mud and maintaining hole stability in
long open hole section was another factor in cost reduction.
FIG. 5B
SPE 108298 5

It is concluded that reducing drilling cost per foot which

reflect on cost per barrel is not only function of using new
technology but the most importatant factor is to adapt the
drilling techniques to achieve the desired requirements.

FIG.6

FIG. 7