Moscow, April 11, 2019 Michael Nigg & Jan Paul · Levels 5 OMV Upstream, Michael Nigg & Jan Paul, April 11, 2019 Level 1: casing reamed into a pre-drilled hole, with either a reaming

OMV Upstream

Casing while Drilling

Moscow, April 11, 2019

Michael Nigg & Jan Paul

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Agenda

OMV Upstream, Michael Nigg & Jan Paul, April 11, 2019 2

►  Introduction Casing while Drilling

►  Equipment

►  Operational Challenges

►  Results

►  Conclusion

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Introduction – CwD


►  Casing to transmit to TQ & WOB

►  Uses non retrievable / retrievable drill shoe

►  Enables rotate, circulate and WOB simultaneously

►  Eliminates running in of casing

►  Allows cementation

Courtesy of Weatherford

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Levels


► Level 1: casing reamed into a pre-drilled hole, with either a reaming shoe or standard dill bit

► Level 2: drilling vertical wells using non-retrievable bits, mostly for surface and soft sections

► Level 3: drilling directional with casing, using retrievable BHA’s, mostly for deeper and challenging sections and harder formations

Courtesy of Schlumberger

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Equipment – CwD


�  Drill shoe


�  Centralizer �  FMS �  Overdrive

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Equipment – CwD


�  Casing while Drilling technology- On the surface


(FMS)

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Advantages and disadvantages


�  Total loss zones in surface section easily bridgeable

�  Loss zones control

�  Sealing of loss zones through casing

�  Cementation possible at all times

�  Reduced risk of casing running problems

�  Eliminates drill string handling

�  Cost and time reduction

�  No loss of BHA

�  Not recommendable with near surface gas

�  Hard formation/unknown formation

�  Not recommendable for exploration wells

�  Not recommendable for swelling shales

�  Not all rigs are adapted to CwD

�  Slower ROP compared to conventional well drilling

Pros Cons

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Casing while Drilling consideration


► Soft formation on top hole (unconsolidated sand)

►  Isolates the potential loss zone (smearing effect)

► Eliminates risks of RIH casing

► High level of handling automation

► Reduces rig flat time (POOH of DP, RIH casing)

► Cementation right after drilling and secures the section TD

► Survey shows vertical hole @ section TD (0 to 1° inclination)

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Operational challenges & Monitoring


►  Intensive study of offset wells data

► Well planning

► Lithology

► Drill shoe selection

► Hydraulic analysis

► Casing drive system

► Drill out casing drill bit

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Cementation


► Different cementing equipment and procedures (depending CwD level)

► L2 (non-retrievable system) – drill bit remains in hole

► L2 standard cementing procedures applicable (float shoe)

► L3 (retrievable system) – POOH of BHA prior start cementing

► L3 using pump down floats for standard cementing procedure

► Rotation of casing string during pumping operations is possible

► Good CBL results for CwD

► Non-retrievable system – casing bits are usually drillable

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Results – OMV’s Milestones


�  Casing while drilling has been implemented in New Zealand, Romania and Austria with a great success

�  OMV introduced CwD in the 2008 Maari drilling campaign successfully setting new industry record at the time for the 24” surface casing (150 m)

�  Romania set the world record for 20” casing section (503 m) and European record for 13 3/8” casing section (729 m) in 2013

�  CwD is currently the standard drilling practice for surface casing in Austria

Weatherford 13 3/8 x 16” drillable casing bit used in Austria

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Results – Austria


�  More than 40 wells drilled so far, successfully applying CwD on the top hole section

�  Very positive results:

�  Increased operational efficiency, saving up to 1.3 days per well

�  Drill one to two more wells in the allotted time frame

�  Mitigated drilling hazards such as lost circulation and well bore instability.

�  CwD technology was tested for a 9 5/8” surface casing with a setting depth between 450-829 m TVD

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Conclusion


�  Time savings (up to 40% per CwD section) are partially offset by additional CwD equipment costs

�  The reduced flat time allows earlier production and also puts operator in the position to drill additional wells within planned schedule

�  Well trained personnel and equipment selection fit-for-purpose reduce the risk associated with CwD to a minimum possible level

Thank you ! Questions ?

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Legal Disclaimer


This presentation is prepared in order to outline our expression of interest. Nothing in this presentation shall be construed to create any legally binding obligations on any of the parties. Neither party shall be obligated to execute any agreement or otherwise enter into, complete or affect any transaction in relation to this presentation.

All figures and information in this presentation are strictly confidential, they are by no means binding and thus indicative only.

© 2019 OMV Exploration & Production GmbH, all rights reserved, no reproduction without our explicit consent.

OMV Upstream

Contact OMV Russia Upstream GmbH

Petrogradskaya Embankment 20 197046 St. Petersburg

[email protected] [email protected] www.omv.com www.omv.com/socialmedia

Documents

Moscow, April 11, 2019 Michael Nigg & Jan Paul · Levels 5 OMV Upstream, Michael Nigg & Jan Paul, April 11, 2019 Level 1: casing reamed into a pre-drilled hole, with either a reaming