IBP1839_12 THE DALIAN DEVELOPER A NEW APPROACH TO WELL SPILL RESPONSE Brian A.

Roberts1, Jonny Klepsvik2

Copyright 2012, Brazilian Petroleum, Gas and Biofuels Institute - IBP

This Technical Paper was prepared for presentation at the Rio Oil & Gas Expo and Conference 2012, held between September, 1720, 2012, in Rio de Janeiro. This Technical Paper was selected for presentation by the Technical Committee of the event according to the information contained in the final paper submitted by the author(s). The organizers are not supposed to translate or correct the submitted papers. The material as it is presented, does not necessarily represent Brazilian Petroleum, Gas and Biofuels Institute opinion, or that of its Members or Representatives. Authors consent to the publication of this Technical Paper in the Rio Oil & Gas Expo and Conference 2012 Proceedings.

Abstract
The Dalian Developer (DD) will be the worlds largest drillship when she is completed in 2012. Her unique payload, deck space and cargo capacity (1mmbbls), enable the DD to perform additional functions that are far beyond the capability of other smaller drillships. In addition to demanding drilling duties such as underbalanced drilling, the DD is able to act as a stand-alone vessel, capable of handling an oil spill significantly larger than Macondo. Technip has worked with Global Well Response Ltd, a company affiliated with the owner of the Dalian Developer to develop a cost effective design for a topside processing package and vessel modifications that would enable the DD to perform Extended Well Testing (EWT), act as an Early Production System (EPS) and perform oil response functions. During the Macondo oil spill, several vessels were deployed to capture, process, store and offload the spilt crude. One of the challenges during Macondo was the mobilization and then coordination of these vessels when operating in close proximity. The Dalian Developer drillship is able to rapidly mobilise and then perform all these functions in a single fast-transit vessel as well as act as a command hub. This paper describes the Dalian Developers specifications as a state-of-the-art drillship as well as her capability to perform other functions including well spill response.

1. Introduction
The Macondo oil spill in mid-2010 highlighted the risks of deepwater oil exploration and production as well as the oil & gas industrys inability to swiftly and adequately respond to an oil spill incident of such magnitude with the right set of tools and systems. Post Macondo, much effort has been spent by regulators and the oil & gas industry to ensure that the risk of another incident happening is reduced as well as ensuring that the industry is better prepared and equipped to handle a potential incident. Several well containment systems are being designed and built. The challenge is a global one and requires industry-wide cooperation. In response to this challenge, Technip has teamed up with Global Well Response Ltd, a company affiliated with the owner of the Dalian Developer drillship. The objective is to develop a vessel that combines both drilling and oil spill containment capabilities, using the Dalian Developer as the platform. Technip has performed the conceptual design of a topside production system capable of Extended Well Testing (EWT) of heavy crudes as well as acting as an oil capture system that can be integrated with Dalian Developers drilling and oil storage capabilities. The Dalian Developer (DD) will be the worlds largest drillship, and a most versatile field development asset, when she is completed in 2012. The DD is more than double the size of a conventional drillship, at nearly 300 metres long and 50 metres wide. She has cargo tanks capable of storing up to 1,000,000 barrels of oil. She also has the deck space and deck load capacity to install an oil production plant for the processing of up to 100,000 barrels of oil per day. She is a fully operational ultra-deepwater drillship with combined capabilities to act as an emergency response capture vessel in case of an uncontrolled well spill situation. Her main particulars are as follows:

______________________________ 1 Eur Ing BSc CEng CMarEng MIMarEST, General Manager Business Development - TECHNIP 2 MSc OceanEng, Senior Vice President DVB GROUP MERCHANT BANK (ASIA)

Rio Oil & Gas Expo and Conference 2012 Rig Name: Registry: Basic Design: Detailed Design: Class: LOA: Breadth: Depth: Drilling Draft: Design Draft: Lightship: Displacement: Water Depth: Drilling Depth: Transit Speed: Accommodation: Crude Oil Storage: VDL (excl. oil storage): Drilling Moon-Pool: Production Moon-Pool: Dalian Developer Marshal Islands Inocean COSCO DNV DP3 291.25 m 50.00 m 27.00 m 13.00 m 19.50 m 63,000 mt 240,750 mt 3,050 m 10,670 m 12 knots 180 men 1,000,000 bbls 32,000 mt 10m x 20m (35m) 15 m (dia.)

The DD has an ICE class double hull structure with identical bow and stern sections which gives here the freedom to make +/- 90 heading change with the same motion characteristics. Having such a large hull she has motion characteristics equivalent to a 6th generation semi-submersible vessel in head seas. She has 2 moon-pools, one for drilling in the centre of the vessel and a production moon-pool slightly to stern. Her accommodation is outfitted for 180 persons but can be upgraded to 240. Due to her size, the DDs large storage capacity, large variable deck load and large available deck space make her ideal for additional services to her main function as a drillship, such as for Extended Well Test (EWT), as an Early Production System (EPS), for Under Balanced Drilling (UBD) and for Dual Gradient Drilling (DGD). Her large oil storage capacity and deck space availability for a 100,000 bopd production system also make her highly capable for oil spill capture & containment functions. The DDs large aft deck area (3,200 m2) can be used for storage of additional equipment and tubulars enabling efficient operation in remote locations where there is a lack of or limited infrastructure. Such locations include offshore Brazil, where the pre-salt areas are 200 400 km offshore, West Africa with its logistic challenges and security issues and in new frontiers such as East Africa, where there is currently no infrastructure, or in the Arctic with its sensitive environment. The DDs production moon-pool can potentially be used for subsea construction activities such as tree running, installing manifolds, jumper running and hook up with provision to install a tower, subsea winch or a heave compensated deepwater crane. She has platforming installed for 1 ROV with space for more.

2. Drilling
The DD has extensive bulk fluid, tubular and deck storage capacities: Tank Capacities: Fuel: Fresh Water: Drill Water: Brine: Base Oil: Barite, Bentonite, Cement: Liquid Mud Tanks: Completion Fluid:

6,313 m3 (39,704 bbls) 1,990 m3 (12,515 bbls) 4,497 m3 (28,283 bbls) 952 m3 (5,987 bbls) 952 m3 (5,987 bbls) 1,000m3 (35,315ft3) total 1,850 m3 (11,635 bbls) 1,610 m3 (10,125 bbls) 2

Rio Oil & Gas Expo and Conference 2012 Water Ballast: Crude Oil Storage @98%: Slop Tanks: Bilge Tanks: Oil spill response: Dispersant: Methanol (future): Tubular / Deck Storage: Riser storage area: Drill pipe storage area: Pipe and equip. storage: UBD / Welltest area: Free deck space: Variable Deck Load (VDL): VDL (excl. crude oil storage): 114,568 m3 (720,553 bbls) 156,176.8m3 (982,322.8bbls) 5,877 m3 (36,962 bbls) 49.4 m3 (310 bbls) 1500 m3 (approx 9420 bbls) 200 m3 (1250 bbls) 800 m2 900 m2 1,400 m2 380 m2 3,200 m2

32,000 mt

The DD has an AKMH HiPro quad 64 m (210 ft) high derrick with a static hook load of 908 tonnes (2mmlbs) and a large setback capacity of: 6 5/8 DP 320 stands x 135 ft (43,200 ft) 9 DC 8 stands x 135 ft (1,080 ft) 13 5/8 casing 49 stands x 135 ft (6,615 ft) Or 9 5/8 casing 72 stands x 135 ft (9,720 ft) Or 7 liner 104 stands x 135 ft (14,040 ft)

The Draw Works uses a Wirth, GH 4500-EG-AC-LV unit with a Power rating of 4,500 hp and the Top Drive is a AKMH BJ241 DDM-1000-AC-2M unit with a continuous torque rating of 118,000 Nm (87,000 lbs/ft). There are two AKMH MH1899 automated Hydraulic Roughnecks (one for drilling and one for offline stand building). Well control is via a GE (Hydril) 18 15,000 psi BOP stack plus two GE (Hydril) 18 10,000 psi Annular BOPs with a 15,000psi HP / 10,000psi LP Choke and Kill manifold (c/w two manual & two remote chokes). There are four Wirth TPK 7 X 14/2200CL, Triplex mud pumps each rated at 2,250 hp and 7,500 psi. The mud returns system includes Derrick FLC-513-VE dual motor linear motion shale shakers with a process volume of 675 usgpm with 9.1 ppg mud. The cementer is a Dowell MD1000 unit rated at 15,000 psi with a maximum flowrate of 8 bbls/m. The DD has four 85 tonne Hydramarine cranes and a 12.5 tonne pipe deck tubular handling crane.

3. Power and propulsion systems

The DD main power system comprises of 8 Wartsila W16v32 medium speed diesel engines, each with a continuous power rating of 7,200 KW, providing a total power of 57.6 MW. Each main generator is classified and rated as an emergency generator. The station keeping is by a DP3 system comprising of eight LIPS fixed-pitch azimuth thrusters, four mounted at the bow and four at the stern, each rated at 5.5MW/912 KN. The DP controls are based on the Kongsberg K-Pos DP21 for primary and back-up systems. The minimum intact DP capability is as follows: Wind (10m/10S): 40 Knots Wind Direction sector: +/-30 around either head Resultant Current*: 3.12 Knots (*Sum of surface and subsurface) 3

Rio Oil & Gas Expo and Conference 2012 Current direction sector: SIG SEA Ht (Hs): +/-30 around either head 5.9m 11s

4. Accommodation, Helideck and Survival Equipment

The DD living quarters has been outfitted with 120 cabins and 180 beds with a 120 man mess and a 3-bed hospital, TV room and gymnasium. The accommodation can be upgraded, if required to a POB of 240 persons. The DD has a 22.8m helideck that can handle the Sikorsky 92, S61N, Superpuma AS332L2, Superpuma EC225 and EH-101 compatible helicopters. There are four Norsafe AS GES 50 free fall type totally enclosed lifeboats each with a capacity or 90 persons providing a total capacity of 200% for the POB of 180 persons. There is a total life raft capacity for 250 persons and a MAKO 655 diesel jet fast rescue (man overboard) boat capable of 35 knots.

5. Oil Containment systems

The philosophy adopted in providing the oil containment equipment is to first acknowledge that it may never be used and is potentially a sunk cost. It therefore follows that the oil containment equipment should be regularly used to perform other operational tasks associated with the drillships main function i.e as a drilling vessel. As a result, the DD oil containment equipment is primarily designed as an Extended Well Test (EWT) or Early Production System (EPS) that has been debottlenecked to cater for the oil containment scenario. This also means that the incremental cost associated with the oil containment system can provide cost effective economic utilisation to an operator through Extended Well Testing (EWT) and / or as an Early Production System (EPS) in addition to its drilling services utilisation. The DD production system is therefore designed for the following two cases: Extended Well Test (EWT) and Early Production System (EPS): 30,000bpd Oil, 30% WC Heavy Oil Capable <20API (17.2API used as design case) All export spec compliant (i.e. meets RVP=12psi, BS&W=0.5%vol and salt content=10ptb) Gas flaring

Oil containment: 100,000bpd total fluids 100k Oil or 70k Oil + 30k water (35API used as design case) 200mmscfd gas flaring All safety spec compliant (i.e. meets RVP spec but may not meet BS&W or salt specs)

The oil containment handling capability (for oil, water and gas) matches that being developed in other deepwater oil & gas regions. One key advantage, in the case of the DD, is that the production equipment will be permanently installed on the vessel and in regular use which not only enables rapid mobilization but more confidence in it performing its duty when required. Another key advantage of the DD is that the operation of a single vessel simplifies the logistics and operational coordination. Also a single vessel with the full capacity of 100,000bopd and 200mmscfd will not involve any of the flow splitting problems that will be encountered with two or more separate vessels. 4

Rio Oil & Gas Expo and Conference 2012 Within the oil containment specs for the DD there are some important principles that need to be clearly stated. The full capacity of 100,000bpd total fluids only applies to crude oils with an API above 30 (35API was used for the maximum design flow case). At these flows the production equipment residence times are insufficient to achieve the oil/ water separation required to meet the EWT oil export BS&W and salt specs. This means that the crude will have a higher water content than normal (1-2% compared with the 0.5% spec) however the overriding need in an oil spill / containment situation is to capture the oil rather than allowing it to escape to sea. The discounted value of the captured crude is minuscule in relation to the costs associated with oil contamination in the sea and at landfall plus the consequential costs and damage to reputation. There is also the possibility that further water separation will take place in the cargo tanks. In all cases, the separated water discharged to sea meets industry specifications (EWT=20mg/l, Oil capture=30mg/l). As a comparison, Macondo crude had an API of 37.2 (which is typical for GoM oil reservoirs at 6000m depth) and flowed at around 60,000 bpd which is well within the capacity of the DD production system. It should also be noted that heavy oil wells generally need artificial lift (e.g. gas lift, down hole pumps, or subsea pumping) to reach commercial flowrates and therefore the spill capacity for such heavy oil wells is significantly reduced. The oil capture process facilities comprise the following: Two stages of separation plus electrostatic coalescer Heat recovery to minimise heat input Crude washing in EWT mode to meet salt specs (if required by high salt levels in the produced water) Produced water treatment by hydrocyclones and compact degasser / floatation unit Flare system including tower, knock-out drums and a nitrogen package for purging The process is configured as shown on the Process Flow Diagram in Figure 1 below:

Figure 1. Production System Process Flow Diagram 5

Rio Oil & Gas Expo and Conference 2012 The process facilities are supported by the following utilities: Chemical injection system (including demulsifier, scale inhibitor, reverse demulsifier chemicals plus a small methanol package for topsides injection) Safety systems including a firewater deluge skid, safety shower and eyebath plus miscellaneous safety equipment The closed drains are routed via a disengagement drum to the slop tanks Space is provided for a desanding tote tank that can be deployed below the equipment deck to enable online desanding of the process vessels Nitrogen from a bottle rack will be used for equipment purging Control, ESD and F&G panels together with the electrical switchgear (for the pumps, heaters and electrostatic coalescer) are located in a room within the aft forecastle, together with a small laboratory for process fluid analysis A two level layout has been adopted which results in a Production Module area of 30m by 16m and retains considerable spare deck space for additional oil capture or drilling equipment. The two level module layout is shown in Figures 2, 3 and 4 below:

Figure 2. Production Module Lower Level

Figure 3. Production Module Upper Level 6

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Figure 4. Production Module Elevation (also showing flare tower and offloading hose-reel)

The DD has the capability to store at 98% full of just under 1mmbbls of oil cargo and the offloading system has an ultimate design capable of offloading the total cargo in 24 hours (ie at a rate of 6600m3/hr). However this offloading rate is far in excess of the rates that would be applicable to EWT or oil capture scenarios. For example many EWT scenarios provide for the offloading of Aframax size parcels of 300,000bbls to a shuttle tanker in 24hours (ie at a rate of 2000m3/hr). DD is currently configured with hydraulic submersible pumps in the after 5 cargo tanks providing a storage capacity of 320,000 bbls and a pumping capability of 5500m3/hr. Should the DD ever be converted to full FDPSO service, provision has been made by outfitting all tanks to install submersible pumps and all piping has been sized for increased flow thus increasing storage to just under 1 mmbbls with a pumping capability of 6600 m3/hr utilising the current inert gas (IG) generator (8250 m3/hr) and hydraulic power pack. At this higher flow-rate, the entire DD cargo of 1mmbbls can be offloaded in 24 hours. The cargo tank heating system using crude fired thermal heaters can maintain cargo oil at temperatures up to 55C.The DD has tank heating by a combination of tank coils and deck heaters. Given that during an oil spill condition with high flowrates the topsides process may not achieve export specifications for water content, the ability to separate water in the cargo tanks with static coils could be of some commercial benefit. This would not be possible if the tank heating was performed by circulation only. Also the tank coil system requires little operator intervention, and during an emergency spill containment situation, operator focus is at a premium. The cargo system is configured with all the usual features including: Cargo drop lines from topside loading header UBD drop lines to slops and cargo tanks Submersible pumps Cargo discharge line Cargo Transfer line 7

Rio Oil & Gas Expo and Conference 2012 Crude Oil Wash (COW) Tank heating by coils and deck heaters including a thermal heater Remote tank gauging, temperature and pressure monitoring Inert gas system including IG generator Offloading (ultrasonic) metering Export hose reel Export hawser system with QDC (Quick Dis-connect Coupling) Darps , Fan beam and Artemis shuttle interface

6. Current Status of the Dalian Developer

The Dalian Developer is currently in the final stages of mechanical completion in a shipyard in China. The workscope associated with her as a conventional drillship will be completed by the end of 2012. In addition to this base scope, she is being outfitted with a cargo and offloading system as previously described plus other modifications to enable her to operate in Under-Balanced Drilling (UBD) mode for a potential client at the end of 2013. It is envisaged that the production system for EWT / EPS / well containment would be retrofitted at a later date following her first deployment as an UBD unit. A recent photograph showing the current status of the DD is presented in Figure 5 below.

Figure 5. The Dalian Developer Drillship

7. Conclusion
The conclusion is that the Dalian Developer, with its fast transit capability, is able to rapidly mobilise and perform oil containment duties that would otherwise require multiple vessels, simplifying and making the operation more efficient. Moreover, thanks to its utilisation as a drillship, potentially combined with extended well testing and / or early production capabilities, the vessel achieves full economic utilisation when not in response mode. As such, the Dalian Developer will also be a very cost effective answer to the industrys need for oil spill response capabilities. As a fully functioning drillship, the Dalian Developer can be successfully deployed and fully utilised in normal drilling mode in virtually any deepwater drilling region worldwide. The Dalian Developer will be compatible with existing subsea capture and containment systems and could potentially install the same.

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8. List of Abbreviations
The following acronyms are used in the text: API bbls bbls/m BOP bopd bpd BS&W COW DC DD DGD dia DNV DP EPS ESD EWT F&G hp Hs Ht IG LOA mg/l mmbbls mmlbs mmscfd mt POB ppg psi ptb QDC ROV RVP SIG SEA UBD usgpm VDL vol WC American Petroleum Institute (also a scale of oil density) Barrels Barrels Per Minute Blow Out Preventer Barrels of Oil Per day Barrels Per Day Base Sediment and Water Crude Oil Wash Drill Collar Dalian Developer Dual Gradient Drilling Diameter Det Norske Veritas Drill Pipe or Dynamic Positioning Early Production System Emergency Shut Down Early Well Test Fire and Gas Horse Power Significant Wave Period (seconds) Significant Wave Height (metres) Inert Gas Length Over All Milligrams per Litre Million Barrels Million Pounds Million Standard Cubic Feet (per) Day Metric Ton Personnel On Board Pounds Per Gallon Pounds per Square Inch Pounds per Thousand Barrels Quick Dis-connect Coupling Remote Operated Vehicle Reid Vapour Pressure Significant Seastate Under Balanced Drilling United States Gallons Per Minute Variable Deck Load Volume Water Cut