An Introduction to Transocean Offshore Drilling and Operations

PRIMER OF OFFSHORE DRILLING OPERATIONSAn Introduction to Transocean Offshore Drilling and Operations

We’re Never Out of Our Depth.

MAJOR TOPICSMAJOR TOPICS

Company OverviewCompany Overview Transocean Heritage and LegacyTransocean Heritage and Legacy Assets (People and Equipment)Assets (People and Equipment)

Drilling Offshore WellsDrilling Offshore Wells Arrival on LocationArrival on Location Primary Drilling EquipmentPrimary Drilling Equipment Offshore Well ConstructionOffshore Well Construction Life OffshoreLife Offshore

The Transocean AdvantageThe Transocean Advantage What makes Transocean THE PREMIER What makes Transocean THE PREMIER

OFFSHORE DRILLEROFFSHORE DRILLER

MISSION STATEMENTMISSION STATEMENT

Our mission is to be the premier offshore drilling Our mission is to be the premier offshore drilling company providing worldwide rig-based, well-company providing worldwide rig-based, well-construction services to our customers through construction services to our customers through the integration of the integration of MOTIVATED PEOPLE, QUALITY MOTIVATED PEOPLE, QUALITY EQUIPMENT AND INNOVATIVE TECHNOLOGYEQUIPMENT AND INNOVATIVE TECHNOLOGY, , with a particular focus on technically demanding with a particular focus on technically demanding environments.environments.

WHO IS TRANSOCEANWHO IS TRANSOCEAN

SEDCO FOREX

SONAT

TRANSOCEAN ASA

FALCON

READING & BATES

CLIFFS DRILLING

1996Q1 Q2 Q3 Q4

1997Q1 Q2 Q3 Q4

1998Q1 Q2 Q3 Q4

1999Q1 Q2 Q3 Q4

2000Q1 Q2 Q3 Q4

2001Q1 Q2 Q3 Q4

2002Q1 Q2 Q3 Q4

2003Q1 Q2 Q3 Q4

TRANSOCEAN

The Transocean we know today is the result of the merger of six (6) legacy companies.

Literally thousands of man-years experience in offshore operations.

Industry’s largest offshore contract driller

13 Fifth-Generation Deepwater Floaters capable of 7,000+ feet water depths

15 Other Deepwater Floaters capable of 4,500-7,000 feet water depths

4 Other High-Specification Floaters capable of harsh environ. operations

3 ultra-deepwater rigs in construction, 2 deepwater DP upgrades

COMPANY OVERVIEWCOMPANY OVERVIEW

LARGEST OFFSHORE RIG FLEETLARGEST OFFSHORE RIG FLEET

53

14 13

32

14

1

25

4541

13

2843

24

3

3

0

10

20

30

40

50

60

70

80

90

Transocean GlobalSantaFe Noble Diamond Pride Ensco Rowan

Semisubmersibles & Drillships Jackups Other MODU's

(1) Excludes ownership in barges, MOPU’s, platform rigs, land rigs, equity ownership positions and new rig construction

(2) Excludes a drillship utilized in a research mode

Source: SEC Form 8-K filings

78

59 54

4545

(2)

24

44

(1)

Total Fleet – 80 Rigs

Market Cap. - $31 Billion (1)

Total Assets - $10.6 Billion (2)

(1) As of July, 2007

(2) As of June 2006

DIVERSE GEOGRAPHIC DISTRIBUTIONDIVERSE GEOGRAPHIC DISTRIBUTION

TRANSOCEAN TECHNOLOGY FIRST’STRANSOCEAN TECHNOLOGY FIRST’S

1954: World’s First Offshore Jackup Drilling Rig – 1954: World’s First Offshore Jackup Drilling Rig – Rig 51Rig 51 1963:1963: World’s First Turret-Moored Drill ship – World’s First Turret-Moored Drill ship – Discoverer IDiscoverer I 1971: First Dynamically Positioned Drill ship – 1971: First Dynamically Positioned Drill ship – Sedco 445Sedco 445 1972: First DP Exploratory Well (1,300 Ft WD Brunei) – 1972: First DP Exploratory Well (1,300 Ft WD Brunei) – Sedco 445Sedco 445 1977: World’s First Dynamically Positioned Semi-submersible – 1977: World’s First Dynamically Positioned Semi-submersible –

Sedco 709Sedco 709 1985: World’s First Fourth-Generation Semi-submersible – 1985: World’s First Fourth-Generation Semi-submersible –

Polar PioneerPolar Pioneer 1986: First Rig To Drill Year-Round In The Barents Sea – 1986: First Rig To Drill Year-Round In The Barents Sea –

Transocean ArcticTransocean Arctic 1996: First Rig Capable Of Year-Round Operations West Of 1996: First Rig Capable Of Year-Round Operations West Of

Shetland Shetland Deeper Than 4,000 Ft WD – Deeper Than 4,000 Ft WD – Transocean LeaderTransocean Leader 1999:1999: First 10,000ft water depth Drill ship – First 10,000ft water depth Drill ship – Deepwater PathfinderDeepwater Pathfinder 1999: First Ultra-Deepwater Dual-Activity Drill ship – 1999: First Ultra-Deepwater Dual-Activity Drill ship – Discoverer EnterpriseDiscoverer Enterprise 2000: First Fifth-Generation Semi-submersible Rig –2000: First Fifth-Generation Semi-submersible Rig – Sedco ExpressSedco Express

Hold 19 of the past 23 Drilling Records:Hold 19 of the past 23 Drilling Records:

● World Record Water Depth 10,011 ft. (Discoverer Deep Seas)

● World Record Subsea Completion 8,960 ft. (Deepwater Millennium)

● World Record Moored Operations 8,951 ft. (Deepwater Nautilus)

● Deepest Oil & Gas Wells 34,189 ft. – measured (Discoverer Spirit) 32,613 ft. – vertical (Deepwater Nautilus)

● Drilled 80% of deepwater wells >30,000 ft. 50% of the wells > 25,000 ft

OFFSHORE LEADERSOFFSHORE LEADERS

HOW DEEP IS ULTRA-DEEP?HOW DEEP IS ULTRA-DEEP?Discoverer Enterprise in 8,100ftDiscoverer Enterprise in 8,100ft Water DepthWater Depth

• 8,100 ft just gets to the sea floor so drilling can begin

• Water pressure is about 3,500 psi (237-atm)

• Riser Joints are 75-ft long, so 108 joints are needed

• Everything is done through a 21-in. diameter pipe

PEOPLE ON THE RIG…PEOPLE ON THE RIG… Company Man

Client Representative onboard the rig Offshore Installation Manager (OIM)

Responsible for all operations onboard the rig Toolpusher

Responsible for all drilling-related activities Driller/Assistant Driller (AD)

Runs the drill floor. The AD is the eyes and ears of the driller outside the drillers’ cabin

Derrickman Stands back pipe at the finger board and looks after the mud

processing Roughneck

The rig floor laborer, performs all types of tasks on the drill floor Barge Supervisor

Responsible for the marine operation, manages cranes and deck crew

Roustabout General laborer, material handling

Maintenance Supervisor Manages the maintenance and upkeep of the installation

ASSETS – Jackup Rigs (25 Units)ASSETS – Jackup Rigs (25 Units)

Water Depth Range: 25-ft to 350-ft

Exploration (open water) or platform locations

Bottom Founded – (3) or (4) legs which elevate the hull above the water while drilling.

Spud cans attached to the bottom of the legs are supported by the soil.

Drilling Package “cantilevers” off the stern of the hull for drilling while operating.

Worldwide operations (West Africa, India, SE Asia, Middle East)

ASSETS – SEMI SUBMERSIBLESASSETS – SEMI SUBMERSIBLES

Moored and/or Dynamically Positioned

Similar Water Depth Capability to Drill Ships

Improved Motion Response over Monohull Drill Ships

Harsh Environment Operations

Generally less payload than Drill ships

ASSETS – DRILL SHIPSASSETS – DRILL SHIPS

Self-propelled, dynamically positioned - no mooring system or anchor handling required

Ultra-deep water depths (10,000-ft and beyond)

Very high deck load (carrying capacity)

Moderate Environment drilling and completions

Well-suited to exploration drilling programs, high deck load allows for operations in remote areas with limited re-supply

Hydrocarbon storage capabilities for extended well testing (on the larger ship classes)

ASSETS – OTHER RIG TYPESASSETS – OTHER RIG TYPES

Self-Erecting Tender Swamp Barge Platform Rig

Self-Erecting Tender – Monohull barge with heavylift crane for erecting the drilling package on each platform drilling location (W.D. Kent shown working offshore Sarawak, recently sold by Transocean)

Swamp Barge (Also called a Posted Barge) – for very shallow sheltered water locations, swamps and river deltas (Searex 6 shown working Niger River Delta)

Self-Contained Platform Rig – Has its own quarters, power generation, all erected on the platform, typically for platform development drilling (Cliffs Drilling 1 shown offshore Hianan, China – sold by Transocean)

JACKUP HAZARDSJACKUP HAZARDS

Severe Weather Jackup rigs are most vulnerable

when afloat and under tow Hurricane/Cyclone damage while

elevated

Punch-through Sudden failure of the soils while

preloading

Blowout

FLOATING VESSEL HAZARDSFLOATING VESSEL HAZARDS

Hurricane Damage Loss of station due to overload of

mooring system Grounding Topside wind damage

Loss of Buoyancy Collision Uncontrolled Flooding

Well Control (subsea blowout) Blowout can cause build-up of

sediment onboard, causing loss of stability


Company OverviewCompany Overview Transocean Heritage and LegacyTransocean Heritage and Legacy AssetsAssets


The Transocean AdvantageThe Transocean Advantage What makes Transocean THE PREMIER What makes Transocean THE PREMIER

OFFSHORE DRILLEROFFSHORE DRILLER

RIG TRANSPORTRIG TRANSPORT

Wet Tow Historically the most common

method of moving a rig Common for field moves and

short transits Slow speed, usually less than

five knots

Dry Transport Expensive, but makes good

sense considering reduced transit time

Increasingly common for long transits

Speeds around eleven knots Limited availability of suitable

vessels

ARRIVAL ON LOCATION - JACKUPARRIVAL ON LOCATION - JACKUP

Positioning the Unit on LocationPositioning the Unit on Location Unit is towed to the location by one or

more tugs Legs are lowered as the unit

approaches the drilling coordinates Positioning Company (Racal, Theos)

used to position the rig exactly on coordinates

Legs engage the seafloor (pinning on location

Operator (client) approves the position Anchors are run (Platform Locations)


Preloading and JackingPreloading and Jacking Hull is elevated to zero air gap

(bottom of the hull at the water surface)

The legs penetrate as the soil beneath the can fails until there is sufficient soil strength to support the weight of the rig.

Preloading is the process of testing the foundation beneath the rig against predicted storm loads

Accomplished by adding ballast water to the weight of the hull to simulate the loads the legs would see during a storm encounter

As water ballast is loaded onboard, the legs sink further into the soil.

Full Preload is held for 6 hours to test foundation at final penetrations


Prepare for Drilling Operations The hull is elevated to

operating air gap The cantilever is unlashed

and skidded out over the well

Operations Commence

Trident 15 – Exploration Location

Roger Mowell – Platform LocationSimultaneous Operation, Platform Skid-off and Platform Load-Sharing with 2 Jackup MODUs

ARRIVING ON LOCATION – MOOREDARRIVING ON LOCATION – MOOREDDifferent Moorings for Different Water DepthsDifferent Moorings for Different Water Depths

ARRIVING ON LOCATION – MOOREDARRIVING ON LOCATION – MOOREDRunning AnchorsRunning Anchors

The rig passes a chaser pendant wire to the anchor handling boat.

Wire Chaser

J-Lock Chaser


As the boat moves away from the rig to the anchor position, the rig pays out chain or wire. The anchor is suspended behind the boat


The anchor handling tug lowers the anchor to the seafloor on a work wire. The rig hauls in chain or wire to set and tension the anchor.

15-tonne Vryhof Anchor


The pendant and chaser are stripped back to the rig and passed back via rig crane.

Anchor Handling Tug/Supply Vessel

Correction signal

Reference Station

ARRIVING ON LOCATION – DP UnitsARRIVING ON LOCATION – DP UnitsPosition Reference – Staying on LocationPosition Reference – Staying on Location

Input: Environmental Loads and

DirectionSenses Wind Speed and

computes force to resist Acoustic Signal

Beacons placed on seafloor and monitored by hydrophones onboard

Satellite Positioning (DGPS)Multiple Satellites at same

time

Output: DP system allocates

thrusters to resist external force and maintain station

PRIMARY GROUPS OF PRIMARY GROUPS OF DRILLING EQUIPMENTDRILLING EQUIPMENT

HOISTINGHOISTING

ROTATINGROTATING

CIRCULATINGCIRCULATING

WELL CONTROL AND WELL CONTROL AND RISERSRISERS

TUBULAR HANDLINGTUBULAR HANDLING

POWER MANAGEMENTPOWER MANAGEMENT

DRILLING CONTROLSDRILLING CONTROLSDrilling ahead on the Discoverer Enterprise

HOISTING EQUIPMENTHOISTING EQUIPMENTThe Drilling DerrickThe Drilling Derrick

The predominant structure on the drilling rig, used for hoisting of heavy loads in and out of the hole...

Several Types: Conventional Derrick Drilling Mast Dual Activity Derrick Ram Rig Tri-Act Derrick

HOISTING EQUIPMENTHOISTING EQUIPMENTThe DrawworksThe Drawworks

The primary hoisting machine, located on the drill floor used to hoist loads into and out of the hole

Several Types: Conventional Electric Hoist Active Heave Compensating

Drawworks Power

varies from 2000 to 6000hp Hoisting from 500-tons to

1250-tons

National AHD1000 Active Heave Compensating Drawworks

Continental Emsco Electrohoist Drawworks

HOISTING EQUIPMENTHOISTING EQUIPMENT

Traveling Assembly Blocks

The sheave cluster around which the drill line is reeved to provide necessary lifting capacity

Drillstring Compensator Prevents vessel heave

(vertical) motions from being transmitted to the bottom of the drill string

Several types – In-line, which hangs from the blocks, and crown-mounted, positioned on top of the derrick

Hook Not all rigs have hooks, but

where fitted, the top drive bails are connected to the traveling assembly

Traveling Block

In-line Drill String Compensator

Hook

Crown-Mounted CompensatorPlay Oilwell Drilling Series Vol.5, “Motion Compensator”

HOISTING EQUIPMENTHOISTING EQUIPMENTCranes and Material HandlingCranes and Material Handling

• Cranes– Used extensively for moving

materials on, off and around the rig• Tubulars

• Risers

• General Handling

• Offloading Work Boats

• Air Tuggers– Used to move equipment, tools and

materials around the rig• Drill Floor

• Cellar Deck

• Moonpool area

• Manriding

ROTATING EQUIPMENTROTATING EQUIPMENTMaking the drillstring turn to the right…Making the drillstring turn to the right…

Rotary Table The rotary table turns the bit

and drill string while drilling Uses a bushing which turns a

square or hexagonal joint of pipe called a kelly which transmits torque into the bit

Today, the rotary is used primarily to orient drill string while drilling directionally with downhole motors

Top Drive System Rotates the drill string from

the top Allows drilling one a full stand

(3 joints) of pipe between connections

Keeps the rotating drive train above the floor

Rotary Drilling

Top Drive Drilling

DRILL STRINGDRILL STRING

Drill Bits Various designs for different

formations Fixed and rolling cutters Fluid jets from the bit and up

the annulus

Bottom Hole Assembly Drill collars are heavy, thick

wall drill pipe added above the bit to help set the weight of the bit on-bottom

Drill Pipe Most drilling operations are

conducted with drill pipe Delivers drilling fluid to the

bottom of the hole Landing strings help lower

casing and tubing to the sea floor

Play Oilwell Drilling Series Vol.1, “Drill Bits”

CIRCULATING SYSTEMCIRCULATING SYSTEM

Drilling Fluid (mud) is pumped down-hole by high pressure pumps

Fluid jets out of the bit and returns to the surface through the riser

Mud is conditioned: Shale shakers sift out the

large cuttings by running the returned fluid over vibrating screens

Degassers remove any small gas bubbles entrained in the fluid

Desanders, Desilters and Mud Cleaners remove the fine silts and cuttings from the fluid using hydrocyclones

Mud is returned to the active mud pits, to be pumped down-hole again

Circulating mud is used to:Circulating mud is used to:

Bring the cuttings generated by the bit to the Bring the cuttings generated by the bit to the surface,surface,

Keep the hole open while drilling to allow casing Keep the hole open while drilling to allow casing to be run and cemented in place, andto be run and cemented in place, and

Prevent loss of pressure control in the well.Prevent loss of pressure control in the well.

Play Oilwell Drilling Series Vol.4, “Overiew, Mud Systems”

CIRCULATING SYSTEMSCIRCULATING SYSTEMSMud PumpsMud Pumps

• 2200hp reciprocating slush pump:• 375GPM at 7500psi

• 960GPM at 3500psi

• Change out fluid end liners to modify flow rate

• Creates “pulses” in the fluid flow and pressure from reciprocating motion

• New Technology HEX Pump• No fluid pulse• No liner changes• Consistent flow rates and

pressures

MUD PROCESSING EQUIPMENTMUD PROCESSING EQUIPMENT

Photos courtesy Derrick Equipment Co.

Gumbo Conveyors Gumbo (sticky clay) can clog

mud systems and is removed before the shale shakers

Shale Shakers Separate large cuttings from

the drilling fluid with vibrating screens

Degassers Remove gas from the drilling

mud before returning to the active pits

Desanders and Desilters Remove smaller sediments

from the liquid mud

Mud Cleaners Combines the function of the

shaker, desander and desilter in one machine

WELL CONTROLWELL CONTROLBlowout PreventersBlowout Preventers

Surface Blowout Preventer Stack

13-5/8-inch, 10,000psi

Subsea Blowout Preventer Stack

18-3/4-inch, 15,000psi

Play Oilwell Drilling Series Vol.2, “Pressure Control”

WELL CONTROLWELL CONTROLChoke and Kill ManifoldChoke and Kill Manifold

Manage Gas and Fluids coming out of the well under high pressure

Choke – Orifice through which high pressure gas and fluids can be bled off the well under control

Kill – Ability to pump heavy fluid (pills) down the hole to suppress the high pressure gas/fluids in the wellbore

Blowout – What happens when pressure control is lost…

Skid-mounted, vertical choke and kill manifoldSkid-mounted, vertical choke and kill manifold

MARINE DRILLING RISERMARINE DRILLING RISERConnecting the Rotary to the Sea Floor…Connecting the Rotary to the Sea Floor…

Acts as a conduit for returning cuttings and mud to the surface

Drilling operations are conducted inside the riser pipe

Auxiliary lines for well control, mud boost and hydraulics for BOP controls

Flex joints at the top and bottom allow rotation of the riser

At the top, the riser is connected to the rig with a telescopic joint

Riser tensioners cancel out vesssel heave similar to drill string compensators

Many joints have foam buoyancy modules attached to reduce the in-water weight and reduce required tension

Slick Marine Drilling Riser Joint

Running a riser joint, using the gimbaled spider

Play Oilwell Drilling Series Vol.2, “Subsea BOPs”

TUBULAR HANDLINGTUBULAR HANDLINGPipe Handling EquipmentPipe Handling Equipment

Historically, pipe was manhandled into and out of the hole with a combination of air-powered tuggers and muscle…

Many rigs today are equipped with one (or more) automated pipe racking machines which minimize the need for human interference with the operation…


Drillpipe Tongs, Spinning and Torque Wrenches Manual drillpipe tongs

are used to make up or break out torque connections when running or retrieving pipe

The spinning wrench quickly threads or unthreads the connection

The combination tool (also called a Hawkjaw) can do both operations

Spinning Wrench

Combination WrenchDrillpipe Manual Tongs

Spinning Chain


Iron Roughneck Automates the spinning

and torque functions of making and breaking tubular connections

Travels in and out from the well center

Elevates to “sense” the height of the tool joint

CONTROLS AND INSTRUMENTATIONCONTROLS AND INSTRUMENTATIONMaking it go when you push the button…Making it go when you push the button…

• Engines, Generators and Thrusters• Drilling Systems• Well Control Systems

• Today’s control systems are highly sophisticated, computer controlled networks.

VICIS Drillers’ ChairVICIS Drillers’ Chair

Conventional Drillers ConsoleConventional Drillers Console

Dynamic Positioning Dynamic Positioning ConsoleConsole

BOP Control ConsoleBOP Control Console

POWER AND PROPULSIONPOWER AND PROPULSION

7,000HP Thrusters, Discoverer Enterprise

Power Generation is a crucial rig function

Propulsion/Stationkeeping Drilling equipment Hotel/Auxiliary Loads

Primary Components Diesel Generators Switchgear Transformers Variable Frequency Drives SCR Drives (DC Motors)

Power System redundancy is crucial to stationkeeping for DP vessels

Diesel GeneratorsDiesel Generators

WELL CONSTRUCTIONWELL CONSTRUCTION Typical Drilling/Casing Program

The conductor, or surface casing is typically jetted into the sea floor.

26-inch hole is drilled to pre-set depth.

20-inch casing is run and cemented in place. Wellhead is installed.

17-1/2-inch hole is drilled to pre-set depth.

13-3/8-inch casing is run (hangs from the wellhead) and cemented in place.

12-1/4-inch hole is drilled to preset depth.

9-5/8-inch casing is run and cemented in place.

8-1/2-inch hole section is drilled to pre-set depth

7-inch production liner (hangs at the bottom of the 9-5/8 casing is run.

Offshore Living - Basic, but Comfortable…Offshore Living - Basic, but Comfortable…

Offshore living standards have improved steadily.

Remote operations mean longer hitches

This is also home for half of every year.

Offshore Living - Basic, but Comfortable…


Company OverviewCompany Overview Transocean Heritage and LegacyTransocean Heritage and Legacy AssetsAssets


The Transocean AdvantageThe Transocean Advantage Looking to the Future:Looking to the Future:

NEXT GENERATION TOP DRIVENEXT GENERATION TOP DRIVEModular Derrick Drilling MachineModular Derrick Drilling Machine

Project launch 2004 1250T lifting capacity 10-year life between major

overhauls Robust & Reliable, NPT target

< 0.1% No critical path shutdown …

maintenance while operating Modular design for quick

change-out of major components

Implemented on newbuilds

ARCTIC SOLUTIONSARCTIC SOLUTIONSDrilling in a Technically Demanding EnvironmentDrilling in a Technically Demanding Environment

Design Imperatives Extended Season Off-Season Marketability Operating Efficiency VDL for Multi-Well Campaign

Dual-Acting Hull DP and Turret Moored Deepwater capable in off-

season Dual Activity Operating Displacement 65k MT

DEEPWATER CONVERSIONSDEEPWATER CONVERSIONSBreathing New Life into Old Steel…Breathing New Life into Old Steel…

SEDCO 702 and 706 Vintage mid-1970s, 2nd Generation

Moored Floaters Water Depths up to 1500-ft

New Capabilities: Dynamically Positioned, ABS

DPS-2 Class 6500-ft Water Depth Moderate Environments Enhanced Variable Load Leading Edge Power Systems

Sedco 702 Before Conversion

NEWBUILD DRILLSHIPSNEWBUILD DRILLSHIPSClear Leader Class DP Drill ShipsClear Leader Class DP Drill Ships

Water Depth 12,000ft

Drilling Depth40,000ft

Length 837 ft

Beam 125 ft

Hull Depth 62 ft

Draft 43 ft

Disp 100,000 MT

VDL 20,000 MT

Dynamically Positioned

Dual Activity

Zero Discharge Facility

Crude Storage Capability

Discoverer Clear Leader under construction at DSME Shipyard, Okpo, South Korea

TRANSOCEANTRANSOCEANWe’re never out of our depth.We’re never out of our depth.

Questions and Comments…Questions and Comments…

Documents

An Introduction to Transocean Offshore Drilling and Operations