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Confidential. Not to be copied, distributed, or reproduced without prior approval. © 2017 General Electric Company - All rights reserved Electro Impulse Drilling and Innovative Configuration of Advanced Drilling Systems Joerg Lehr & Stefano Capodanno BHGE Erik Anders & Matthias Voigt TU Dresden Franziska Lehmann TU BA Freiberg November 13, 2017 IEA-Geothermal Workshop Hanoi

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Confidential. Not to be copied, distributed, or reproduced without prior approval. © 2017 General Electric Company - All rights reserved

Electro Impulse Drilling and Innovative Configuration of Advanced Drilling SystemsJoerg Lehr & Stefano Capodanno BHGE

Erik Anders & Matthias Voigt TU Dresden

Franziska Lehmann TU BA Freiberg

November 13, 2017

IEA-Geothermal Workshop Hanoi

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Table of content• BHGE Fullstream Geothermal Solutions

• Geothermal Drilling Solutions

- Integrated drilling service application research and development

- Innovative configuration of Advanced Drilling Systems

- Granite Drilling Application Example in Vietnam

• Geothermal Drilling Research

Alternative Drilling Technology

Electro Impulse Drilling Technology and Drilling System

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Fullstream Geothermal Solutions

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~70,000+ employees

120 countries

The first and only fullstream company

+ =GE Oil & Gas

Since July 2017:

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The Geothermal world cloud

Expected new installed capacity of

200 MW/yr in the next years

Available all year-longLCOE has reached grid parity

(from 40 to 120 $/MWh depending on the region) and is expected to

drop through 2050

Global geothermal power capacity by the end of 2016 is

12.7 GW - 0.3% of global electricity generation

Shift from Steam Turbines to ORC cycles

Deep and directional wells required for new capacities

Easy resoucres finished:Enhanced geothermal systems

Environmental, social and administrative barriers

Footprint required to

produce the same power with solar PV is around 10 times

higher

RENEWABLE

CHALLENGING GROWING POTENTIAL

Modulable baseload capacity

Risky and capital-intensive:50% CAPEX during surface

explorations and drilling operations

From high enthalpies to

medium/low enthalpies

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6

The BHGE Fullstream Geothermal Solutions

Well• Submersible Pumps

• Well Head Equipment

• Logging Technology

Power Delivery• Primary Equipment

• Power Sensing & Quality

• Protection & Control

• Energy Services

• Automation

• Remote M&D

Power Island

• Steam Turbine & Generators

• ORC systems & expanders

• Condensate & Re-injection Pumps

• Air Cooled Condensers

• Power Services

• Remote M&D

Drilling• Drill-bits

• Directional Drilling

• Formation evaluation

technologies

• Cementing services

• Completion and

production technologies

• Fishing services

• Chemical services

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7

Technology Solutions across the FullstreamBHGE a reliable geothermal partner

2007: Hybrid Plant (ST+ORC 58 MW) installed in Berlin, Salvador

2015: Full reinjection ORC Plant (5 MW) ordered at Castelnuovo, Italy

Since the 80’s Well Operations ServicesTuscany, Italy

1973: First Steam Turbine(132 MW) installed at The Geysers, California

2000: Dry Steam Turbines(180 MW) installed in Tuscany,

Italy

CENetic ESP(Increased Flow Rate 83%) installed in Reno, Nevada

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8

Drill Bits Quantec™ Force PDC

Kymera™ HybridVanguard™ bits (>288º C )

Motors X-treme, Performance

(to 160- 200 Cº )

Automated drilling systems

Auto-Trak™ (175 Cº)

Fluids PYRO-DRILL™ drilling

fluids (340 Cº )

MWD/LWD (150 C - 175 Cº )

Wireline NAUTILUS ULTRA™

XMAC F1 (232 Cº)

Coring HT™ core barrels and disposable steel inner

barrels (>163 Cº )

Cementing eXtreme set (312 Cº)

Underground systems- Drilling and Evaluation

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9

Completion systemsExternal casing packers

Casing exit systems

Hydraulic fracturing/ stimulation

Planning, monitoring, evaluating

Wellbore interventionretrieving tools

ESPCENetic Geothermal Pump

(200 Cº)

Specialty Chemical Flow assurance control

Scale Control, O2 scavenger, corrosion inhibitors, biocide

Underground systems- Completion and Production

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10

BHGE Main Drilling Projects

Iceland

France /Germany

NicaraguaEl Salvador

Costa Rica

Italy

Hawaii

Nevada

California

Mexico

Denmark

Sweden

Chile

Azores

Kenya

Djibouti

Indonesia

Philippines

Australia

Japan

New Zealand

Canada

144 projects – 1,800+ wells

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Research and Development Motivation & GoalsFurther Reduction of Cost / MWh Reduction of Capital Cost / kW installed

Efficient Wells- Reduce planning risks- Improved reliability- Improved safety at reduced cost

Optimized Production- Optimize power efficiency

Improved Recovery - Accumulated production at and over time

Secure Abandonment- Reduction of environmental impact and avoidance of consequential charges

Geothermal Power Plant Cost Distribution

Source: BMU Germany

Drilling

(up to 70 %)

Production pumps (2%)

Stimulation (2%)

Planing (3%)

Else (3%)

Conversion equipment

(15%)

Thermal water cycle

(5%)

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Geothermal Drilling SolutionsIntegrated drilling service application research and development

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Research & Development Focus

• Innovative Wellbore Construction

• Drilling Process Control and Automation

• Advanced High Temperature Drilling BHA

• Alternative Drilling Technologies

• Innovative Production Systems

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November 18, 2017 14

Integrated Drilling Services

Total wellbore planning, construction, and management….

Feasibility studies,

well cost estimation,

and field

development plan

assistance

Advanced well engineering

and design, well placement

reviews; geo-mechanical,

reservoir and borehole

stability analysis

Detailed wellbore

construction

program with

maximum

efficiency and

less surprises

Client

BHGE

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Problem Statement

15

• Drilling operation in sediments or in deep crystalline hot rock are characterized by inconsistent performance and high bit wear

• Depth and horizontal reach of wells are limited by weight of the BHA (WOB) and mechanical and hydraulically transmission of power

• In the E&P industry, drilling and completion expenses and return on investment are comparable

Geothermal Applications

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Problem Statement

16

Representative Reduction of Rate of Penetration vs. Depth and Rock Strength

Source: MAURER, novel drilling techniques

confirmed at Continental Deep Drilling Project in Germany

Total Vertical Depth of

Well [m]

Rate of Penetration ROP - [meter/hour]

Rock-type

„Soft“

(σD˂ 50 MPa)

Medium

(σD = 50-100 MPa)

Hard

(σD ˃ 100 MPa)

0 – 2.000 15 – 50 5 – 15 1 – 5

2.000 – 4.000 10 – 30 4 – 10 1 – 4 (4 – 8)*

4.000 – 6.000 6 – 20 2 – 6 1 – 2 (2 - 3)**

6.000 – 8.000 N/A 1 – 2 1 – 2

(Source*: Baker Hughes Motors, RSS and WOB & vibration control SPE 122690, Promising Results from First Deployments of Rotary Steerable Technologyin Vietnam Basement Granite)

8.000 – 10.000 N/A N/A 1 or 2 ?

10.000 – 12.000 N/A N/A 0,5 or 1 ?

(Source**: Deep Geothermal Well in Granite Europe )Alternative

Technologies

DrillingOptimization

Based on summariesd data of mentioned literature sources – current ROP of drilling systems on the market might be different depending on geology and application

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Problem Statement

17

Geothermal Hard Rock Applications

• Drill bit wear in deep Hard Rock drilling (4500 - 5000 m Vertical Depth)

conventional

drilling head70 m heavy wear2 - 3 m/h

weight on

bottom

high NPT and

bit consumption400 m/h 7 times

trippinghigh costs

source: http://www.icyte.comsource: http://www.frbiz.com

Click on Picture to start Video

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Solutions

18

•Utilization of Innovative Drill Bits

•Optimized Bottom Hole Assemblies (BHA) for each section of well path

•Precise Wellbore placement and High Build Steering capability

•Virtualization and Automation

•Research and Development on alternative Drilling Technologies

Geothermal Applications

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Geothermal Drilling SolutionsInnovative Configuration of Advanced Drilling Systems

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20

Innovative Drill Bits𝐊𝐲𝐦𝐞𝐫𝐚𝐓𝐌 Hybrid bits: • Drill more than twice as fast as premium

roller-cone bits• Excellent directional performance on

steerable motor• More efficient drilling using less WOB

than roller-cones

Ensure Performance at High Temperatures:

Insert 𝐓𝐫𝐢𝐜𝐨𝐧𝐞𝐓𝐌 bits: • Patented in 1923, developped to

maximize performances• Higher ROP with lower cost-per-foot

𝐕𝐚𝐧𝐠𝐮𝐚𝐫𝐝𝐓𝐌 Geothermal bits:• Patented metal-face seal allowing

continuous drilling up to 550°C• Reduces bit trips

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Optimized BHA Solutions

21

•Rotary Steerable Systems (RSS, AutoTrak TM)

•Rib Steered Motors (VertiTrak TM, CoilTrak TM)

in combination with advanced DH Motor systems and innovative BHGE Drill Bits

50 – 100 % improved drilling performance with Semi Automated Rotary Drilling Systems utilization

MWD/LWDRSS Steering Unit BitStabilizerFlex

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Drilling Solution Example

22

Deployment of BHGE Rotary Steerable Technologyin Vietnam Basement Granite

BHGE Express BHA RSS Type A

Planned well path of Azurite 8 ½” section in basement granite

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Drilling Solution Results

23

Advanced BHA design enables potential to drill >2 timesof a typical bit run time and distance

less Bit consumption less Non Productive Time ‘NPT’ less Cost per Foot

Online drilling parameter observation and control

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Geothermal Example

24

Geothermal Wells in BavariaDuerrnhaar and Kirchstockach KST GT2

AutoTrak Express BHA

Well path example of Geothermal Well in Molasse Basin

• Central Well places

• Cost ~ 25 Mill EUR

• High build rate 8 ½“ hole to secure 125 – 140 l/s production rate

• BHGE Drilling Service enables ~80 % increase in drilling efficiency,saving 16 days of KST GT2

• 8 days saved for completion of welldue to high wellbore quality

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Driller<<action>>

<<monitor>>

Rig Sensors: RPM, WOB,

set point controland validation

Controller(PLC)

Rig Actuators- Drawworks- Top drive- Mud pump

in-the-loop control

<<actuate>>

<<measure>>

BHGE Field

Engineer<

<in

tera

ctio

n>

>

Conventional

Automation

PRIDIX

<<recommend>>

<< feedback >>

<<

acti

on

>>

<<

mo

nit

or>

>

<< interaction >>

Solution

Assisted Automated Drilling Systems Control

Real-time reservoir navigation plot of a record well

Real-time drilling performance plot of record well

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Automated Drilling Vision

26

Continuous Drilling and Navigation with fully Automated Coiled Tubing System

Continuous Drilling

with automated reservoir navigation

“Geo-Steering”

to drill multilateral wells of heat exchanger

of Geothermal Well with Monobore Completion

WildCat Project Video , High Build Automated Motor System for CT Drilling BHGE, 2014

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Geothermal Drilling ResearchAlternative Drilling Technology Research

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Problem Statement

28

Still Bit Wear and Depth/Reach Limitations in Geothermal Hard Rock Applications

• Drill bit wear in deep hard rock drilling (granite, 4500 - 5000 m)

conventional

drilling head70 m heavy wear2 - 3 m/h

weight on

bottom

high NPT and

bit consumption400 m/h 7 times

trippinghigh costs

source: http://www.icyte.comsource: http://www.frbiz.com

Click on Picture to start Video

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Solutions

29

Research and Development on alternative Electro Impulse Drilling Technology

EIT-drilling head 500 mclose to no wear

of electrodes3 m/h

electric contact

to bottom

low NPT single trip400 m/h>20 %cost saving

Click on Picture to start Video

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Electro Impulse Drilling

30

Working Principle of Electro Impulse Drilling Technology

time in ns

granite

water

die

lectr

icstr

ength

puls

e fie

ldstr

ength

in k

V/m

m

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High Voltage / High Pressure Drilling Simulator

November 18, 2017 31

Design and Test

Plasma Light Reflection

Rock Sample

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High Voltage / High Pressure Drilling Simulator

32

• High Pressure Tests with OBM completed

• Significant reduction of Mechanical Specific Energy (MSE) with optimized Electrode

• MSE close to PDC bit in OBM

• High pressure dependency of MSE in Water and WBM.

• Improvement of Hole Cleaning required

Results

0 100 200 300 400 500

MSE [kJ/cm³] over Pressure [bar]

BHGE PDC

BHGE OBM & Optimized Electrode

State of the art

BHGE OBM & TUD Ring Electrode

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High Voltage / Low Pressure Test Results

33

Real Size Granit Rock excavation in Oil Based Drilling Fluid under Lab conditions

311 mm , 12.5 inchHole in Granite Sample

Star Electrode Design

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34

• How to reduce high pressure dependency of MSE in Water and WBM ?

• How to achieve High Volume excavation ?

• Hole Quality, Cutting shape and size?

• Influence of - Electrode design- Test equipment- Electrical properties of Rock sampleand Fluid ‘impedance, permittivity’

- Porosity of samples

0

2

4

6

8

10

12

14

16

18

0 50 100 150 200 250 300 350 400 450 500

MSE [kJ/cm³] over pressure [bar]

MSE [kJ/cm³] TUD Electrode in Water 100 %

MSE [kJ/cm³] TUD Electrode in BHGE OBM

Linear (MSE [kJ/cm³] TUD Electrode in Water 100 %)

Linear (MSE [kJ/cm³] TUD Electrode in BHGE OBM)

Rock Excavation Efficiency under Pressure – Open Questions

High Volume Rock Excavation under Atmospheric pressure conditions in Water with 4” electrode design (16 cm³)

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System- Evaluation and Test

TU BA Freiberg / TU DresdenField Lab

First Real Size Low Pressure In-Situ Test with an 12 ¼” Electrode

Logging of bottom of the wellborerevealed hole cleaning problems

November 18, 2017

35

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Results of in-situ Test

• First electric impulse drilling rig lab setup at University

• High Voltage Generator Module ‘HVG’ and Electrode tested in water under low pressure drilling conditions

• Excavation of 50 mm of cement with a diameter of 12 ¼”

• Logging of wellbore revealed hole cleaning problem as reason for low ROP

• High voltage insulation of HVG to be improved to avoid short circuits

• Additional test with improved hole cleaning and HVG required in 2018

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Conclusion and Outlook

• Advanced Drilling Technology enables faster drilling of complex well profiles and reduction of non productive drilling time > 50%

• Alternative Deep Drilling technologies have to be developed to reduce bit exchange trips and related NPT with acceptable ROP under pressure

• Further research on physics of EIT is required to secure performance under DH pressure conditions

• Utilize Virtualization and Automation tools to maximize productivity and recovery with predictable performance as a foundation for future drilling technologies

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39

Fullstream Geothermal Solutions in Competition

Geothermal

• Base Load

Available every day

over the entire year

• Independent from

Supply chain and fuel price

• Low CO2 emission and

ecological footprint

Source: LAZARD Levelized Cost of Energy Analysis - Version 10.0 Dez 2016 page 8https://www.lazard.com/perspective/levelized-cost-of-energy-analysis-100/

Levelized Cost / MWh in operation

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40

Fullstream Geothermal Solutions in Competition

Geothermal

• High Capital Cost

• High Capital Cost Variation

• Reservoir Risks for

Hydrothermal Resources

Source: LAZARD Version 10.0 Dez 2016 page 11

Capital Cost / kW installed