Introduction of a hydraulic rig – how to lose friends ... · Introduction of a hydraulic rig – how to lose friends & influence people ... • Most predictable geology and drilling

Introduction of a hydraulic rig – how to lose friends & influence people

© Contact Energy Limited 3 April 2013 Document title 2

Where are we?

3 April 2013 Document title 3

Background to the introduction of a new hydraulic rig to NZ

MB Century drilled more than 50 wells and over 100,000m with Rig 27 since 2005


It’s not broken so why fix it?

• To help us achieve our vision of zero harm

• To be able to drill closer to town

• To drill more efficiently

• Benefits listed in RFP:

– Potential reduction in incidents by 60%

© Contact Energy Limited

– Potential reduction in incidents by 60%

– Slightly smaller footprint – 15%

– Quieter – stated 45 dBA at 250m and no squeaky brake!

– Quicker drilling times

– Reduced rig move loads and shorter moves (6) days

– Reduced crane dependency


Rig Specification – HH350B

• Rig, HPU, Generators, MCC, PCR VFD,

Mud System, TDU, CRT made in Italy

• BOP’s and Koomey made by T3 in N America

• Maximum Pull 350 tons (700,000 lbs)

• Maximum torque 4910 daNm (36,200 lbft)

• Range 3 singles


• Mast 16.6m stroke

• 30 ton pull down

• 37” rotary table

• 3600m 5-1/2”pipe bin capacity

• 30” casing capability

• 3 no. 1000HP mud pumps

• 5 mud tanks - 363m3 (2280 bbl)

• 4 no. Generator Sets 1485 kVa, 1757 bhp

• Skidding system – 3 wells


Assurance Framework – 5 phases

1• Procurement & Staffing

2• Well Site Selection, preparation & handover


3• Commission & Integrate Rig

4 • Drill Well One (WK321)

5• Drill Well Two (T8C01)


Critical Success Factors for Commissioning

Safety – zero harm

Future Well Programme


No additional cost


Procurement & Staffing – what was good

• Sign off by Moduspec as part of pre-spud

• 60 day on-site Drillmec support

• OEM parts specified for key components – lift path, well control, mud pumps, pressure control, safety systems

• Contract specification priority over manifest

• Staffing selection and training completed on time


Procurement & Staffing – what wasn’t so good

• Long contract negotiations (9 months +)

• Control of manufacturing process only ½ way into the build

• Desired modifications could not be achieved (carrier axle configuration)

• Improvements such as better secondary retention in mast couldn’t be achieved

• Definition & understanding was weak for Best Practice, FAT, SIT, SAT

• No requirement to supervise manufacturing or FAT testing

• Specification missed 16” casing from contract


• Specification missed 16” casing from contract

• Unrealistic expectation on both sides that 1st well will be up to speed

• No contractual requirement for operational commissioning

• What constituted competency was difficult to reach agreement on

• Specify exact standards especially where ambiguity or multiple regs. exist – to ensure rig is built to NZ/AU standards & regulations

• Clearly define what needs to be installed for spud – e.g. Pipe bins – up or down, all or some, rig release bins and pipe handler up or down?

• Clearer notification requirements of defects – how, when, what?


Manufacturing – the bad bits

• You only get what you ask for (CE mark, toolshed, paint)

• Some commissioning in the factory was poor

• Pipe handler was never commissioned or tested satisfactorily in Italy

• Pipe handler did not fit to rig without modification

• Support beams for rig carrier did not fit

• Mud pumps have caused some problems and delays

• Lack of information regarding interlocks and P&ID diagrams


• Lack of information regarding interlocks and P&ID diagrams

• Lack of manuals for much equipment including H2S system

• Suction line in wrong place from supercharger skid to pumps

• Torque wrench and power tong clashing

• Numerous minor issues

• Poor handrail fit


Shipping

• Scheduled for 8 weeks but took 12

• Contractor had no control over shipping

• Boat was very slow

• Heavy damage sustained in transit – pipe handler requiring significant repairs

• Customs clearance was very smooth with unloading straight onto trucks


unloading straight onto trucks

• Several minor items missing on arrival


Simulator Training Italy


Training

• Contractor sent crews from AD up to Italy

• Electricians and Mechanic training

• Contact sent Company Man, Senior DE and Drilling Manager

• Training was high quality and comprehensive

• Opportunity to meet senior Drillmec staff

• Opportunity to ask DWOP questions


• Opportunity to ask DWOP questions

• Drillmec flew trainers to NZ to train remaining crews and third parties in New Zealand

• Short shift crews during commissioning and 1st well so they get good exposure to operations


Well Site Selection, Preparation & HandoverWell Site Selection


Well Site Selection, Preparation & Handover

• The perfect site?

• Very close to office

• Most predictable geology and drilling in the Wairakei Field

• Good offset information

• High profile placement for public viewing

• Easy to control visitors


• No nearby residential neighbours

• Close to Contractor yard

• Laid up our workover Rig 16 for the period to concentrate on Rig 32 introduction

• Optimisation of drill layout carried out


Commissioning

• Commissioning period extended for 2 wells

• Contact and Contractor had very different ideas about what a commissioning plan looked like and who was responsible

• Initial resistance from third parties to engage in the process (BAU to solve on the job)

• Contractor initial commissioning planning was poor

• Had suspension clauses in third party contracts to cover extended commissioning

• Lots of questions raised in DWOP’s


• Lots of questions raised in DWOP’s

• Operational commissioning critical – e.g. running casing, lifting ops, wireline

• Amount of certification and data to review is huge

• Daily meetings once rig arrived

• Additional Company Men used in Assurance role during commissioning

• Sought advice and experience of other operators around the world

• PLC & calibration issues required attendance by Drillmec from Italy (10 day delay)


Assurance

• Vital to integrate as much as possible and test at factory prior to shipping

• Factory Acceptance Testing paperwork was average quality – 1600 pages

• MBC employed Moduspec to witness FAT testing – insufficient and several visits should have been made

• Lack of Drillmec recommendations for FAT, SAT and SIT testing

• Contact employed Moduspec to provide Electrical, Mechanical and DROPS inspections and surveys – part of pre-spud


inspections and surveys – part of pre-spud

• Defect reporting was critical to keep in touch with delays

• Daily commissioning report updates vital


People

• MBC had up to 8 FTE’s during the mid to late stages of procurement

• Contact employed a contract Project Manager with 20+ years experience

• Contact team involved Project Sponsor, 2 Company Men, 5 Drilling Engineers, admin


Drillmec SupportManufacturer Support


“It could have been better”

MB Century

24 hour helpline was called

at 10am Italian time on a

Saturday morning. The

answerphone message said

please call back Monday at

08.30 as the office is now

shut!

Hand Rail Incident leading to Injury

• Hand rails were not well manufactured with poor fit, gaps, independent movement and insufficient toe boards.

• This was identified early on but deemed as a low risk to be fixed at a later date.

• A Company Man descending the shaker stairs caught his hand on the temporary fix of rope and ruptured his bicep tendon requiring surgery and resulting in an LTI.


Communication

• Sharepoint set up by Contractor for them to upload documentation

• Team grew all the time and people got missed off important emails

• Decisions being made all the time – vital to use issues and decision registers

• Should have implemented Acconex!

• Version control by Contractor was poor

• Project Administrator was invaluable in arranging meetings, minutes etc.


Time & Cost

• It takes longer than expected to build, ship and commission

• Making changes during manufacturing added considerable build time in the factory

• The ship was very slow due to the level of shipping contract chosen

• Drillmec added an extra unexpected 10 days to commissioning for PLC and electrical issues to be resolved due to lack of commissioning in Italy

• NZ$500k was budgeted

• It cost NZ$1M to commission


• It cost NZ$1M to commission


Analysis of Performance

• Our in-house data analyst looked at time taken to drill sections, run casing etc. for comparison with historic wells (36K data points)

• The well was drilled at P57

• Very little down time during well one

• 96% operating rate

• 2% rig repair

• 2% code zero


• 2% code zero

• Cementing P18 and lost circulation P16 (good choice of site)

• Some flat spots that need working on:

• Casing operations – P87 – singles so need to run coupled 24” pipe rather than weld

• Tripping – P74

• BOP’s - P92


HSE


Dedication of HSE Staff was

a big factor in the successful

introduction

HSE

• Development of SWMS – huge improvement over original SOP’s. About 80 new SWMS produced. Good use of photos.

• Development of DROPS photo book – big improvement

• Development of Lift plan book including third parties

• Many items in mast not subject to secondary retention

• Crew used step backs instead of JSA’s or developing SWMS

• Trades now use JSA’s and step backs


• Trades now use JSA’s and step backs

• Dedicated HSE personnel required for SWMS development


Improvements Made

• 3rd party integration and layout optimised to keep worst noise in one area

• Better layout reduced trip hazards

• Separate fuelling for third parties stopped fuel transfers

• New installation solutions for Mud Logging – safer and more robust

• More cement storage for larger jobs

• Additional crew for cementing to manage fatigue better


• Silenced booster for Air Drilling

• Silenced Cementing Unit will be procured


Key risks & issues remaining

- Understanding of PLC issues and implications to operations

- Lack of definitive competency approach

- Level of defects has continued

- Ability to operate rig at production performance

- Safety across all of the above

- Unable to make up 36” BHA


- CMUT – can’t run 13-3/8” Geoconn, 18-5/8” & 24” casing issues

- Topdrive gooseneck redesign required to better handle rough drilling

- Lack of storage on or near floor

- Unable to set bend in motors

- Control switches to the mixing pumps at ground level


Summary of learnings

• Reminding yourself that your role is one of assurance

• Set expectations as clearly as possible in the contract

• Use shock subs to protect TDU

• Ensure that the contractor understands their obligations

• Include lists of standards pertaining to the operations

• Its going to take a long time!


• Involve the subject matter experts at early specification and design stage

• There was a steep learning curve for both Contractor and Contact teams

• MBC relied heavily on key individuals with little contingency available

• Revisit DWOP’s regularly as knowledge increases


We have drilled the first well at P50 cost and time,

no-one got hurt during initial commissioning and we are all still friends!



Documents

Introduction of a hydraulic rig – how to lose friends ... · Introduction of a hydraulic rig – how to lose friends & influence people ... • Most predictable geology and drilling