Drilling Services Overview

Drilling & Measurements

Introduction

D&M Segments

DD – MWD – LWD - DB

Drilling Services

• Drill Bits

•Steerable systems (Rotary & Motors)

•Engineering and planning (DEC)

•Performance applications

Measurement Services

•Measurements While Drilling

•Logging While Drilling

• Drilling Mechanics

•Remote Communications

Drill Bits

Steering System

MWD/LWD

Our Direction

• Real-Time drilling solutionsImprove risk management and reduce NPT

• Real-Time petrophysical solutionsPrecise wellbore placement with FE

• Innovative drilling and measurement systemsProcess improvements to change the game

Lowering Lifting Costs through Reduced Drilling Costs & Improved

Productivity

Mode of Operation

1. Drill the upper, non productive section as quickly as possible

– Stuck Pipe Avoidance

– Reduce NPT (Back Reaming, DP Washouts, etc)

– Reduce casing strings through design optimization (DEC)

2. Drill the production zone with the following objectives:

– Optimize well placement for maximum production

– Streamline bore hole geometry to reduce rugosity

– Minimize NPT due to decision “lag time”


PowerDriveRotary Steerable System

PowerDrive675 PowerDrive900Rotary Speed Range 40 to 220 rpm 40 to 200 rpmMax. Operating Temp. 250° F [120° C] 250° F [120° C]Weight 1720 lbm [780 kg] 2376 lbm [1080 kg]Build Rate 0 to 8°/100ft 0 to 5°/100ftAvailable Hole Size 8.5, 9.5, 9.87 in. 12.25, 14.5, 14.75 in. ConfigurationDownward Communications Mud flow variation Mud flow variation

(typically 20% variation) (typically 20% variation)

System Specifications

PowerDrive Reliability

0

70000

140000

210000

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350000

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

1996 1997 1998 1999 2000 2001

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Total Feet Drilled (all Sizes)

Total MTBF (All sizes)

NorwayDenmark Holland

UK

NigeriaCongoAngola

E.Guinea

QatarAbu

DhabiS.Arabia

Azerbaijan

Newfoundland

Nova Scotia

GOM

Alaska

W.Australia

S.China SeaSakhalin

BalikpapanBrunei

MalaysiaIndonesiaPhillipinesVenezuel

aTrinidad

R&M BaseR&M Base plannedActivity planned in ’01.

PowerDrive Rotary Steerable System

Field proven in wide range of operational conditions

Fully rotating BHA permits backreaming and minimizes lost-in-hole risks

Compact and Reliable BHA

Robust Design Interchangeable bias

unit at rig site Compact system with

length < 15 ft provides wide range of measurements closer to the bit than conventional motor assemblies

Functional Design

Pad out Pad in

Optimal Bit Design for Rotary Steering Low aspect ratio for tight

radius drilling

Gauge PDC cutters for aggressive side cutting action

Optional DiamondBack cutters for high durability

Open bit face for fast cuttings removal; works with all mud types

Short gauge length coupled with continuous action of paths produces excellent hold quality without reducing steerability.

PowerDrive: Job History

• Deployed more than 600 times in locations covering North Sea, Asia, Middle East, South America, and North America

• Depth range = 1283 to 37,001 ft

• Maximum DLS = 11°/100 ft in 8.5” hole, 5.5 °/100 ft in 12.25” hole.

• Inclination range = 0 to 144° (only commercial rotary steerable system that is capable of a vertical kick-off)

• Longest runs (as of July 2001)

— World Record in 8.5” hole: 17,283 ft in a single run in 8.5-in. hole with an 8.5-in. EHP41A Reed Hycalog bit (176 continuous operating hours)

— World Record in 12.25” hole: 13,799 ft in a single run in 12.25-in. hole. Danish sector of N.Sea. (163 continuous operating hours)

Technical Benefits

Designed as a driller’s tool: No non-rotating external parts

– no dependence on friction with hole wall

– no limit on backreaming

– less risk of stuck toolsSimple flow change communication

– no interference with MWD telemetry

– no complex and unreliable surface equipment with long rig-up time

Highest MTBF of any RSS (client data)Proven steerability up to 10°/100ftWorldwide network of R&M facilities in 7 locations (11 by year

end 2001)

Hole Quality• Smooth profile

• Good gauge

• No spiraling

• Reduced cuttings beds

New Developments“PowerDrive Xtra”

• Commercial introduction in Q3 2001• Enhanced reliability, real-time communication &

steering capabilities• Includes:

– e-mag telemetry for near bit inclination and azimuth, and tool setting in both 6.75” and 9” tools

– New valve design with improved system hydraulics providing greater predictability of steering response

– Mechanical enhancements to control and biasing units

PowerDrive Xtra

1 0 I n i t i a l s

Carbide coated torquer sleevesTo increase run life

Optimized valveDesign to maximize Steering capabilities

•Balanced wide flow range•turbines

High strength and toughness hinge pins to increase shock and fatigue resistance

Optimized hardfacing on pads to increase life in abrasive formations

Sensor and electronics packages redesigned to higher standards of reliability and accuracy

Bias unit component redesignedto increase fatigue life and reduce wear

PowerDrive Xtra – Key Features

Optimized Reed-HycalogBit designs

Optimized shock and vibration resistant suspension system

Realtime communicationOf tool status, near bit inclination and Azimuth to surface with Mk2 e-mag system

Valve Modifications– Problem:

• valve lifting & sticking leading to loss of steering response

– Solution:

• Redesign of valve with new timing, valve shape and spring loaded shaft


PowerDrive Example Applications

Example: ERD Well in China 1739 m drilled in one run of

174 hr

Drilled 330 m/day compared to previous best of 220 m/day

Saved $536,000

Eliminated difficult directional control found with conventional BHAs

Increasing ROP

Complex Well Paths Improved drilling efficiency

– 98 m/day with PDM, 193 m/day with RSS

U and W shaped wells, up to 144° inclination

Quality ControlDate Drawn: 10-Jul-2001Drawn by: ______________Checked by: ______________Client OK: ______________

Siri ASTRUCTURE

Siri (76803)FIELD

SCA-7WELL

Statoil

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IMT1

Proposal Survey

Build 1.70°/30 m

Hold Angle 77.41°Survey Station 77.41° 1727 MD

Build 1.50°/30 m

Survey Station 30.00° 850 MD




Tie-In 0.00° 0 MD

SCA MWD Surveys

Vertical Section View

True Vertical Depth (1 cm = 200 meters)

Elev Ref: RKB(47.80m above MSL)

Vertical Section Departure at 78.43 deg from (0.7, 2.1). (1 cm = 500 meters)

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IM T2T1

Grid NorthTot Corr ( W 3.28° )Mag Dec ( W 1.68° )Grid Conv ( E 1.595° )

Hold Azimuth 90.00°

SCA-Well prop 5

SCA MWD SurveysWorkplan

PLAN VIEW Scale (1 cm = 500 meters)

<<< SOUTH NORTH >>>

<<< WEST EAST >>>

World Record 12-1/4” Run – 13,799ft

Directional control - Build & Turn

500 1000 1500 2000

5500

5000

4500

Proposal Survey

Projection to TD

GE-02 MWD Surveys in 12 1/4" hole

9 5/8'' Casing Point


GE-02 280600 Horizontal Hole Rev.2



True Vertical Depth (1 in = 500 feet)

Elev Ref: RKB(85.00ft above MSL)

Vertical Section Departure at 262.54 deg from (-68.6, -20.8). (1 in = 500 feet)

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True NorthTot Corr ( W 3.68° )Mag Dec ( W 3.68° )

Projection to TD

GE-02 MWD Surveys in 12 1/4" hole9 5/8'' Casing Point


GE-02 280600 Horizontal Hole Rev.2


PLAN VIEW Scale (1 in = 500 feet)

<<< SOUTH

<<< WEST EAST >>>

•Build (48-84deg Inc), Turn (184-264deg Az)•Drilling Hours 42, Circulating hours 50•Drilled to section TD

8498ft in 1 Run - Tangent, Build & Turn

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End of Run 73.15°Inc 15285 MD

Proposal

Survey

Start of Run 44.25°Inc 6787 MD

Heather 15194 MD 10805 TVD

Kimmeridge 14175 MD 10435 TVD

Cromer Knoll 12510 MD 9500 TVD

Shetland Clay 8430 MD 6983 TVD

13 3/8'' Casing Point 43.22° 6698 MD 5878 TVD


True Vertical Depth (1 in = 2000 feet)

Elev Ref: Rotary Table(87.40ft above Mean Sea Level)

Vertical Section Departure at 185.93 deg from (-303.9, -2.9). (1 in = 2000 feet)

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End of Run 186.1°Az 15285 MD

True North

Tot Corr ( E 4.30° )

Mag Dec ( E 4.30° )

Start of Run 141.0°Az 6787 MD


PLAN VIEW

• 128.5 drilling hrs. • 171.2 pumping hours.•3D Directional control while always rotary drilling• Excellent hole cleaning throughout • Manageable ECD•No time lost for wiper trips •Higher overall ROP•Optimum torque and drag results•Steady consistent deviation with no large hidden doglegs• Low tortuosity


PowerPak Steerable Motors

• 60 models from 2 1/8 in. to 11 1/4 in.

• PowerPak XP, HF & GT extended power sections

• PowerPak XF & XC short radius drilling

• Oil seal or mud lubricated bearings

PowerPak Overview

Bearing Section Design

• Mud-Lubricated radial & axial bearings

• Single-piece forged drive shaft

• Optimized design for minimum erosion & pressure drop

High Performance Motors12 new designs: Establish PowerPak Motors

as the most versatile in the industry.

High Performance drilling

• High torque - PowerPak GT motors– 4.75”, 5.00”, 7.00” & 9.62” (to 18kft.lbs)

• High Speed - PowerPak HS motors– 4.75”, 6.75” & 9.62” (to 600 rpm)

• High flow - PowerPak HF motors5.00” ( 400 gpm), 7.00” (1000gpm)

Interference fit• Correct operating

interference +0.020”

• Elastomer swell with temp and fluid absorption

• Elastomer compression from pressure

• PowerFit software to calculate set up under shop conditions

PowerFitPowerPak Interference Calculator. Version 1.1b (23 Mar '98)

Motor Code Well Data Motor Running Data

BHCT. / °F Expected Pressure175 drop across motor / psi

300TVD. / ft.

18500 Mud Type

Workshop Temp. / °F Fluid density / ppg70 13

Motor Dimensions Measured Rotor & Stator Serial Numberstator Dimensions / in.

Rotor Major Diameter 4.200 Rotor Serial NumberRotor Minor Diameter 2.800Stator Minor Diameter 3.540 Assembly date

Measured Interference / in -0.040

Recommended Interference / in 0.030 Acceptable deviance ±0.015

Use standard stator and standard rotor

A475XF4516

A475XXP5683

A475M7822

A475XP7838

Water based

Oil based (Diesel)

Oil based (Synthetic)

• Interference fit

• Thermal expansion

• Drilling fluid absorption

• Hydrostatic compression

• Set up under shop conditions

Stator Elastomer

• Typical life of 100-400hrs

• Typical failure modes– Fatigue– Chemical

degradation– Heat build-up

(Hysteresis)

PowerPak - Slim-hole GT Motors

Summary

• PowerPak operated for >300k hrs p.a. with MTBF>1600hrs

• PowerPak GT High torque tools provide record breaking performance.

• PowerPak HS tools provide maximized power for Impreg Bit applications.

• PowerPak HF tools designed for high flow with no compromise in reliability.


Measurements at the Bit

Steerable Systems - GeoSteering Tool

• Trajectory control with immediate information on bit direction and BHA tendencies• Electromagnetic transmission of survey and geological data to the MWD• Data transmitted to the surface via MWD telemetry

The GeoSteering Tool incorporates drilling andEvaluation measurements into a standard Schlumbergermud-lubricated, steerable motor.

Steerable Systems - AIMMeasures where you are going, not where you

have been

Steerable Systems – AIM/GSTExample of the effects of sensor spacing

• Stay in the target and reduce lost footage

New Systems: 2D Rotary Steerable


2-D Rotary Steerable for 6” hole• 3 position hydraulic activating adjustable Stabilizer• Confirms Position of Adjustable Stabilizer with AIM• provides earliest indication of drop and build tendencies

AIM-VGS

• Tool for 6” hole in field test– 3 position, flow activated, Oil-sealed.– Integrated with AIM for position confirmation– Field tests in N.Sea, Saudi Arabia & Nigeria.

5 runs completed resulting in modifications to cylinders and seals

• In-Development– Systems for 8.5” and 4.75” hole (Q4 2001)– Design complete

AIM - At Bit Inclination Measurement

• Integral to Standard Power Pak Motors.

• Continuous Single-Axis Inclination ~1ft from Bit vs 40 ft

for MWD

• Telemetry to 60ft behind Bit

• Rotating Near-Bit Stabilizer

• 20,000psi, 150 °C Rating

• 200+hr Battery Life


Planning the Well Bore

PowerPlan

• An integrated suite of drilling applications designed to optimize well planning and drilling.

• The trajectory is planned taking into consideration anticollision, BHA design and behavior, torque and drag, hole cleaning and other operational constraints.

• Access to extensive drilling, geological and petrophysical information is readily available to aid in well planning.

• Application modules are on the wellsite to monitor performance and to make plan modifications if necessary.

PowerPlan - Applications

GeoFrameDatabase

(POSC Compliant)

PowerPlan - ApplicationsStandard PC ‘Look & Feel’

PowerPlan - Well Design

• Generate geometrical well plans for geological targets • Build trajectories by section or from a list of standard curve profiles

• Take advantage of full graphing, plotting and reporting features

PowerPlan - BHA Tendency• Calculate torque and drag • Analyze drillstring and BHA behavior

• Investigate different drilling operations

• Compute loads and forces acting on your string • Calculate equilibrium build and turn rates for your BHA

PowerPlan - BHA Management

• Easily drag and drop components into your BHA • Benefit from extensive catalogue of components

• Add new components to the database if required

PowerPlan - Hydraulics

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Rate of Penetration (ft/hr)

Hole Cleaning

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Hydraulic HP

A675M4548 (no nozzle)

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Pump Flowrate (gpm)

Pressure Drop Analysis

9.59.69.79.89.910

0 100 200 400 500 700

ECD Analysis

300 600

Pump Flowrate (gpm)

PowerPlan - Hole Cleaning

• Perform hole cleaning analyses • Calculate pressure losses and ECD’s

• Perform rate sensitivity studies

• Calculate motor performance over entire trajectory and range of flow rates

PowerPlan - Drillstring AnalysisTripping Loads Analysis

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3000 3500 4000 4500 5000 5500 6000 6500

Bit Depth (ft)

CSG_FF= 0.00 OPH_FF= 0.00

CSG_FF= 0.20 OPH_FF= 0.20 Trip in




Bore Hole: Borehole #1Engineer: Cooper

Client: Oil Co.Date: 07/17/97

TRIPPING LOADS ANALYSIS

PowerPlan - AnticollisionClose Approach

• Model anti-collision scenarios with traveling cylinder plots, spider maps and detailed proximity calculations

• Visualize the 3-D result with GeoViz to ensure all geologic objectives are met


Drilling Services

Drilling Services“Extended Reach Drilling”

Extended Reach Drilling (ERD) Definition

Horizontal displacement/TVD ratio > 2.0

Types of extended reach wells: – Very shallow – Very long – Ultra long – “Designer”

Extended Reach Drilling


• Challenges – High ratio stepouts - long displacements – Long open hole sections – Hole stability issues – Directional control and surveying practices – ECD management – Risk - cost of failure – Continuous improvement to reduce costs – Comprehensive contingency planning

• Rewards – Utilization of existing locations and infrastructure – Logistical requirements reduced – Overall Capex reduction – Environmental impact reduced – Development of marginal field reserves – Removes constraints of conventional drilling limitations – ERD may be the only development option


Planning – Clearly defined goals – Project management including support teams – Risk assessment and contingency planningExecution – Precision directional control – Well stability management – Formation evaluation acquisitionEvaluation – Continuous monitoring of performance – Focus on reduction of costs


ERD Modeling

• Torque and drag analysis

• ECD and hydraulics analysis

• Optimization of directional profile plan

• Validation of models – Real-time – Post analysis

• Calculation of friction coefficients

• Length of cased hole significant factor

• MWD signal attenuation

Extended Reach DrillingWorld Record

• M-16SPZ well, Wytch Farm, drilled 10,728 meters stepout (35,196 ft)– Deepest oil and gas well at 11,278 meters (37,001 ft)– PowerDrive rotary steerable system for directional control– No mechanical or electronic failures– Well completed with 81/2 in. hole section


– Schlumberger is the drilling services leader in ERD

– Services provided globally for various clients including 9 of the World’s Top 10 longest reach wells

– First to pass the 8 km barrier - Wytch Farm 1M-05SP (26,361 ft displacement)

– First to pass the 10 km barrier on Wytch Farm 1M-11SPY

– 1M16SPZ - World record stepout at 10,728 m (35,196 ft) [37,001 ft - 11,278 m measured depth]

– Repeated success on other projects - Total Austral wells CN-1 (34,728 ft displacement)


The World’s Longest Step-outs

HorizontalDisplacement

35,19634,72833,18129,32426,84026,45026,33826,16026,13825,76425,19525,10525,08124,83924,82324,59024,20324,18623,91722,762

Rank

1234567891011121314151617181920

MeasuredDepth, ft

37,00136,69334,96731,55528,50130,30128,59227,98629,17330,60026,88027,24029,63127,45028,49727,17828,08727,64528,74325,351

TVD,ft

5,3715436526658994914979352655301535890884932543370746798934067529400940391476625

Well

M-16ZCN-1M-11YM-14CS-124-3 A-14M-05AS-3M-1530/6 C-26CS-2M-09MFF-19CDieksand 424-3 A-17Dieksand 3A2-T-2GWA-1333/9 C-2Dieksand 2

Operator

BP AmocoTotalBPBP AmocoTotalPhillipsBPTotalBP AmocoNorsk HydroTotalBPMaerskRWE-DEAPhillipsRWE-DEAStatoilWoodsideStatoilRWE-DEA

Location, fields

UK landArgentina, AraUK, Wytch FarmUK, Wytch FarmArgentina, KausS. China Sea, XijiangUK, Wytch FarmArgentina, AraUK, Wytch FarmNorth Sea, OsebergArgentina, KausUK, Wytch FarmDenmarkGermany, DieksandChina, XijiangGermany, DieksandNorth Sea, SleipnerAustralia, GoodwynNorth Sea, StatfjordGermany, Dieksand

Schlumberger Drilling Service

DD/MWD/LWD/PowerDriveDD/MWD/LWD/VISION/AIMDD/MWD/LWD/GST/PowerDriveDD/MWD/LWD DD/MWD/LWD/GSTDD/LWDDD/MWD/LWD/GSTDD/MWD/LWD/GSTDD/MWD/LWD/PowerDrive

DD/MWD/LWD/GSTDD/MWD/LWD/GST/PowerDriveDD/LWD/VISIONDD/MWD/LWDMWD/LWDDD/MWD/LWD

DD/MWD/LWD/GST


The Future of ERD

– Stepouts greater than 10 km now feasible

– Rig sizing issues

– Review of hole sizing requirements

– New technology

– ERD multilaterals

– Deepwater ERD

– Continuous improvement of technical limits

– Information transfer

Drilling Services - DeepwaterSafe efficient solutions for the drilling conditions encountered in deepwater environmentsWell Stability

– Real-time pressure and temperature – Real-time caliper

Directional Control – Wide range of steerable drilling systems – Reliable strong MWD telemetry

Formation Evaluation – Extensive LWD measurements – Wireline retrievable data

Planning – Comprehensive pre-job analysis and contingency planning – On-site applications to track performance and make modifications if necessary

Drilling Services - DeepwaterKick Tolerance requires exact measurements of

downhole pressure

Real-time Annular Pressure Measurements can detect and monitor shallow water flow.

Drilling Services - Deepwater

APWD provides accurate real-time ECD calculation while drilling

Drilling Services - Deepwater

Example: ECD monitoring

Drilling Services - PERFORMPERFORMance drilling by Risk Management

Comprehensive PlanningReal-time Solutions

Reduced CostReduced Non-productive Time=

Drilling Services - PERFORM The planning and reporting process of Schlumberger PERFORM services is handled by four components:

• DrilMap is a continuously updated drilling plan with associated contingency plans,

• DrilCast provides a daily reporting scheme which identifies anticipated drilling activities,

• DrilTrak records the history as a well is being drilled with measurement and observation information and

• DrilBase provides a database of events, procedures and processes which can be accessed for future well planning.

The four Schlumberger PERFORM components replace ad hoc reactions with a systematic drilling process for efficiency gains which lead to overall cost reductions.

Drilling Services - PERFORM

ModelingPore Pressure

Wellbore StabilityKick Tolerance

Hydraulics

ModelingPore Pressure

Wellbore StabilityKick Tolerance

Hydraulics

Well PlanningTrajectory Design

Hydraulics AnalysisBHA Behavior

Torque and Drag AnalysisAnti-collision

Well PlanningTrajectory Design

Hydraulics AnalysisBHA Behavior

Torque and Drag AnalysisAnti-collision

LWD Formation EvaluationFormation Imaging

Calipers

LWD Formation EvaluationFormation Imaging

Calipers Drilling MechanicsDownhole Weight and TorqueDownhole Shock and Vibration

Washout DetectionDownhole Pressure

Kick Alert

Drilling MechanicsDownhole Weight and TorqueDownhole Shock and Vibration

Washout DetectionDownhole Pressure

Kick Alert

DrilMapDrilCastDrilTrakDrilBase

PERFORMPERFORM

Documents

Drilling Services Overview