IADC/SPE 59105 JU2000 - Efficiency by Design

Howard Day - Friede and Goldman Ltd.; Mike Williams - Varco International

Copyright 2000, IADC/SPE Drilling Conference This paper was prepared for presentation at the 2000 IADC/SPE Drilling Conference held in New Orleans, Louisiana, 2325 February 2000. This paper was selected for presentation by an IADC/SPE Program Committee following review of information contained in an abstract submitted by the author(s). Contents of the paper, as presented, have not been reviewed by the International Association of Drilling Contractors or the Society of Petroleum Engineers and are subject to correction by the author(s). The material, as presented, does not necessarily reflect any position of the IADC or SPE, their officers, or members. Papers presented at the IADC/SPE meetings are subject to publication review by Editorial Committees of the IADC and SPE. Electronic reproduction, distribution, or storage of any part of this paper for commercial purposes without the written consent of the Society of Petroleum Engineers is prohibited. Permission to reproduce in print is restricted to an abstract of not more than 300 words; illustrations may not be copied. The abstract must contain conspicuous acknowledgment of where and by whom the paper was presented. Write Librarian, SPE, P.O. Box 833836, Richardson, TX 75083-3836, U.S.A., fax 01-972-952-9435.

Abstract A drilling rig, either fixed or mobile, can be described as a factory that digs a hole. The purpose of this paper is to examine the fundamentals of the well bore construction process and how this has traditionally influenced rig design. By using an economic justification analysis to evaluate the tubular handling processes, a step change in performance and a breakthrough in rig design will be achieved. This paper will outline the developmental steps taken by the rig designer, and in parallel, the technological development of tubular handling systems, that contribute to this step change in performance. Actual field performance for the pipe handling systems will be presented, including the innovative process that allows casing to be assembled in stands and racked back in doubles in preparation for casing the well. Additionally, the handling of single 80 or 90 joints of casing and/or drill pipe is considered under parameters such as eliminating couplings and the subsequent reductions in make up and break out time, tool joint maintenance, and casing wear that can be attributed to tool joint hard banding. The innovative use of both an automated vertical and horizontal pipe racking system, potentially providing the rig design with a smaller, lighter derrick structure and increased efficiency, will be illustrated. An example of the computer modeling system will be used to present an animation of the tubular handling process. The resultant benefits of this combined approach can yield overall performance advantages of up to 20%, with associated up front economical benefits, over traditional jack up designs.

Introduction A typical exploratory well drilled by a jack up unit in the Gulf of Mexico usually involves various activities that are best described by a depth vs. time curve. Fundamental to enhancing performance in any given well is endeavoring to shorten flat spots in this curve. Technological advancements in pipe handling have done just that. Such advancements have traditionally been determined by the rig geometry, which, in turn was dictated by the lengths of drilling tubulars used to drill and construct the well. This paper deviates from traditional thinking by exploring the benefits of longer tubulars and how they maximize the capability of an advanced pipe handling & racking system. 3 Table 1 and Fig. 2 describe the base line well that this paper uses. The graph represents actual footage against time, and is generated by the performance of a typical GOM jack up unit, equipped with a top drive drilling system. By examination of the data that is used to construct this curve, and specifically applying technology and automation to this data, performance is enhanced accordingly. This discussion also lends itself to the handling of longer well bore casings, which are ordinarily transported to the rig and handled in approximately 40 lengths. JU2000 will now accommodate 80 or 90 lengths of casing as doubles made up and transported to the rig as such, or single joints. Similarly, the horizontal pipe handling (HPH) capabilities of JU2000 also permit the handling of single 90 joints of casing, drill pipe, tubing, or any other oil field tubular. It can be shown that in addition to lowering overall well bore construction costs, JU2000 also boasts capital equipment cost savings for the rig owner. These costs include, but are not limited to the up front costs of the derrick, drill floor and substructure, and the potential to eliminate couplings from the various strings of pipe that are use to construct a well bore. The elimination of couplings not only results in a cost reduction in terms of the couplings themselves, but can also reduce associated maintenance expenditure.

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Pipe Handling Background Historically, the drilling industry has evolved such that a contractor has been able to rack back drill string components in the derrick in longer lengths. It was originally laid out completely in singles. The industry further evolved such that a rig owner had the facility to rack back doubles, which are two 30 joints of drill pipe connected together and stood back in the derrick vertically. Then there were triples (three 30 joints), and now "fourbles" of range 2 (four 30 joints), or triples of range 3 drill pipe (40 joints), comprising a 120' "stand" of drill pipe. Horizontal racking was developed as a requirement in the design of early drillships. A horizontal racking system was necessary to achieve the desired CG and motion characteristics of the vessel. One of the first mechanized horizontal rackers was built for the Global Cuss 1. Although it was simple, the system proved to be reliable and kept up with the fastest tripping rates. Mechanized vertical pipe racking was introduced on the Humble Oil Rig 30 as the early BJ type V three arm vertical pipe racking system. An era of mechanization had begun. These early systems were robust and by most accounts, added some time savings to the tripping process. Such systems do not offer the offline capabilities of stand building and BHA handling, which modern Pipe Racking Systems (PRS) offer today. These early machines required extensive modifications to the derrick, requiring large windows in the derrick structure to accommodate the racking arms. These factors and industry growth contributed to a slow but steady acceptance of these systems into the 80s. The column pipe racking development addressed the need for more robust designs and the drive toward semi-automation. Varco introduced the first of these designs, the PHM in 1986. AC technology and modern control systems with encoding drove this new era of vertical machine, allowing a single operator to precisely manipulate pipe and collars. These machines brought on additional time savings in BHA handling, providing a significant advantage in safety and efficiency. Traditionally, conventional jack up design has dictated that the drill string be laid down in order to facilitate a rig move, or changed out per operational requirements. Due to extended reach requirements, JU2000 now boasts cantilever pipe rack geometry, which permits an operator to do this in 90' lengths. These 90 lengths can comprise either doubles of range 3, triples of range 2, or single 80 or 90 joints a small departure from tradition, although a giant step forward in pipe handling. Ultimately, JU2000 offers operators and contractors the ability to handle oil field tubulars in longer lengths. Indeed, this has been fundamental to the way pipe handling has evolved in the drilling industry. Quite simply, any time that a length of pipe can be handled in a ninety-foot length instead of the more traditional thirty or forty-foot lengths, pipe-handling efficiency is dramatically improved. Technological Advancements To date, no jack-up or bottom supported Mobile Offshore

Drilling Unit (MODUs) incorporates all of the capabilities, as described above, to the fullest. These capabilities are described as follows, whilst simultaneously juxtaposing the latest technology in automation against base case data (Table
1).

Horizontal Pipe Handling. Historically, the machines that have performed this function accommodate twenty or thirty thousand feet of drill pipe only, and have a substantial vertical requirement, which is not readily available with modern jack up designs. A horizontal pipe handling (HPH) capability is permitted with JU2000 by virtue of the area available on the cantilever pipe rack, due to the extended reach capability of the unit. Additionally, robust conveyor technology today allows HPH to be utilized on a jack up unit, in conjunction with an articulated crane being mounted centrally on the rigs port side cantilever beam (Fig. 1). This feature permits the following: 1. The ability to change out entire strings of drill pipe or other oil field tubular, off of the critical path, without lowering a single joint of pipe into the mouse-hole or into the well bore. This is accomplished by laying it down or picking it up horizontally in 90 sections. This feature will eliminate items 63 and 66 a time related saving of approximately 24hrs.
(Table 1)

2. The handling of triples of range 2, doubles of range 3, or longer single joints of drill pipe, which can offer a reduction in the number of tool joints in the drill string. This will significantly reduce casing wear. A large percentage of casing wear can be attributed to tool joint hard banding. Obviously, this can offer cost savings in tool joints and tool joint maintenance for the owner of the drill string. 3. The handling of doubles of range 2, range 3, or longer single joints of casing, tubing or other oilfield tubular. This can offer significant capital equipment cost savings by reducing the number of couplings required in the string, and significant time related costs in making up or breaking out a string of any such tubular. 4. The handling of casing strings made up in doubles of range 3 at a shore base, then transported to the rig as doubles, and then handled to the rotary as doubles into the well bore, as one component, as TLP riser joints are sometimes handled today. Indeed, subject to manufacturing capabilities, the handling of single 90 joints of casing, drill pipe, tubing, or any other oil field tubular is also permitted by the geometry of the extended reach cantilever. 5. Greater flexibility with the set back area, therefore allowing the standing back of longer strings of casing, or increasing the set back area for various (or all) bottom hole assemblies, and/or a work string of tubing. 6. A horizontal pipe handling capability offers the utilization of a smaller derrick footprint, which can offer enhanced set back area efficiency over the larger, more costly derrick arrangements. The setback area can be a direct function of the derrick footprint. Benefits to the smaller derrick footprint include a lighter derrick, drill floor and substructure, therefore potentially increasing the allowable

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hook / setback / rotary loading combinations, when in the extended reach mode, off of the longitudinal centerline of the rig. Obviously, the smaller derrick footprint also reduces windage. Vertical Pipe Handling. Column type pipe racking machines are common place with most newbuilds (floating and bottom supported MODUs) today. However, when the functionality of a vertical pipe handling system is augmented with that of a horizontal system, this marriage of functionality has a complimentary nature. The Glomar Explorer is the first rig from the recent marine build cycle to incorporate both horizontal and vertical automated (mechanized) pipe handling systems. Jim Long, Rig Manager for the Glomar Explorer stated: At Global Marine, we believe the combination of horizontal and vertical racking systems offers many benefits. Having both systems allows us to perform stand building of casing, drill pipe and BHAs while drilling ahead. Keeping the primary drill string off the floor also allows us to keep our landing string or a production test string in the derrick, reducing open hole time. A jack-up with both pipe handling systems should see similar offline benefits as we see on the Explorer and our two new drillships. As the use of vertical pipe racking systems has grown, so has the space required to store the array of tubulars that is required to drill modern 20,000 foot wells. Both the first and second generation rackers required the machine to sit between the setback area, taking up valuable drill floor real estate. The development of parallel racking, as illustrated per fig 1, allows JU2000 to maximize setback flexibility utilizing an adjustable fingerboard for all tubulars. Offline Capability. As fig 2 illustrates, the key to real productivity and step changes in performance is in parallel, simultaneous, or concurrent activities, reducing the nonproductive time of our factory. Many of the recent new builds incorporate an auxiliary mouse hole that will allow stand building while drilling ahead. This patented technology1 allows for building of triples while drilling ahead. It can facilitate the building of a BHA assembly, and with some designs can allow casing to be built in doubles and racked back in preparation for the casing run. JU2000 will allow for all of these features resulting in significant time savings and efficiencies due to parallel activities. In addition, the use of longer tubulars will contribute to the overall benefits of mechanization. Table 1 demonstrates the offline capability of the marriage of the horizontal and vertical pipe handling systems, clearly showing those operations which can be performed off of the critical path. AC Technology & AHS. The broad speed and torque range of AC motor technology produces superior machinery performance in both top drives and drawworks with singlespeed direct drive gear boxes. In addition to the simplicity of the mechanical components, the ability of AC motors and their

controls to act as servos, enables a greater level of control and flexibility never before experienced in drilling controls. The growing use of AC technology on modern drilling machinery has greatly impacted the performance, reliability and weight savings of these devices. The use of AC motors is prevalent with column pipe racking, top drives and now drawworks, or hoists. The automated hoisting system development continues in a trend of performance breakthroughs, and with both significant performance enhancements via the electronic driller feature, and a 45% weight savings in a typical three thousand horsepower class machine, this will have significant impact on a cantilever jack up design. The Electronic Driller2 is designed to provide a near constant weight on bit. Computerized closed loop feedback control of the disc brake allows exceptional fast line control. Results from a 76 well study in South Texas yielded a 37% reduction in rotating hours when the Electronic Driller was used. Capital Equipment Cost and Weight Savings In addition to a substantial overall performance increase, significant equipment cost savings can be seen by both the rig owner and operator in terms of the up front costs of the unit, and the various tubular components required in the well bore construction process. Some of these savings are listed as follows: Smaller Derrick Footprint and Lighter Equipment. 1. When comparing a 30 x 35 footprint against a 40 x 40 footprint, a weight saving of up to 15% of the derrick structure is possible, with little compromise in set back area. Cost saving in the derrick structure is estimated to be as much as 10%. 2. Weight savings in newer drawworks designs can be as much as 80,000lbs. (3000hp class) 3. The weight of the drill floor and substructure is predominately dictated by the weight of the equipment that it supports. The smaller derrick footprint, resulting in shorter spans, in combination with lighter equipment, is estimated to result in weight savings to the drill floor and substructure that approach 25%. Longer Tubulars Less Couplings. JU2000, which can accommodate HPH, can ultimately handle longer tubulars. Handling longer oilfield tubulars is fundamental to pipe handling performance enhancement. Cost savings can be derived as a result of this capability in terms of considering coupling elimination. Although there are different schools of thought on the practicality of using longer drilling tubulars, some capital equipment cost considerations are listed as follows: 1. A cost saving of approximately 20% can be realized when considering a new string of range 3 drill pipe against a string of range 2. 2. Fewer tool joints will result in less tool joint maintenance. 3. Fewer tool joints will reduce any casing wear that can be attributed to tool joint hard banding. 4. Departing from manufacturing considerations, longer

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lengths of either drill pipe or casing can be handled efficiently with a jack up unit that has an HPH capability consider 80 foot or 90 joints. Conclusion Traditionally, the geometry of the cantilever on a conventional jack up has dictated that the drill string be laid down in order to facilitate a rig move, or changed out per operational requirements. JU2000 now allows an operator to do this in 90' lengths. In conjunction with the horizontal handling capability, vertical pipe handling functionality reciprocally compliments the overall performance of the pipe handling system. After all, that is what a drilling rig does in a manner of speaking, handle pipes! These enhancements are a direct result of the rig designer and handling equipment manufacturer jointly understanding well bore construction processes. In terms of modern MODU design and the design of the handling equipment that the rig is outfitted with, a step change in the performance of the unit as a whole is a derivative of designing the unit from the bottom of the well up, instead of from the rotary table out. In addition to performance enhancements, the overall cost of a newbuild jack up unit can be lowered. These economical benefits are a function of creative thought processes, which should inherently endeavor to reduce size, and therefore weight and subsequent costs, instead of the bigger, heavier, and therefore less overall cost effective approach, or popularly throwing steel at the problem. From the evolution of the cable tool rig to rotary drilling, and on with the myriad of technical advancements, our industry has challenged the traditional way we drill wells and build rigs. If we are to continue to drive the cost of well construction down, we must continue to embrace change. The first jack up unit to not incorporate an independently powered rotary table into its design was the Galaxy I in 1989. In

choosing a non conventional approach to the implementation of a rotary table, as this particular contractor did, we have the opportunity to think out of the box, and build a rig that embodies the emerging tubular handling technology and benefits that modern floating rigs use today. The benefits of longer tubulars, both horizontal and vertical pipe racking systems and the performance per pound benefits of the AC hoist and other integrated drilling controls will continue to improve on well bore construction curves. As we move into the future, we will expand the rig capability envelope, and strengthen the momentum of change and progress that our industry has embraced into the new millennium. Acknowledgments We thank Jim Long (Global Marine) for an overview on horizontal pipe handling philosophy; Tommy Welch (Loadmaster Rig Services) for thoughts on derrick design in way of drill floor arrangements; Doug Snapp (Grant Prideco) for thoughts on tubular possibilities; Sid Truitt (Dallas Mavis Trucking Services) for logistical opinion; Paul Geiger Jnr. & Calvin V. Norton (Friede and Goldman Ltd.) for input on drill floor, substructure and cantilever structural design considerations, and general arrangements; Jay Cotaya, Paul Rowlett, Phil Vollands, Brian Eidem (Varco Systems) for various contributions. Footnotes 1 Varco International is the owner of the Foxhole patent registered in the following countries; USA, Japan, Denmark, Norway, France, UK and The Netherlands. 2 Ref. Oil and Gas Journal article 12-14-98. 3 Per GRI (Gas Research Institute)

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Fig 1: JU2000 Vertical PRS & HPH Systems: Plan and Elevation

H.W.F. DAY, M. WILLIAMS

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TABLE 1 BASE CASE DATA

Note: The following data does not reflect any breakdown of time spent wire line logging each hole section. Clearly, additional offline activity would be conducted whilst logging, providing that this concurrent operation did not interfere with the wire line or the handling of the tool string on the catwalk. The logging program of the base case well is estimated to take and additional 3 days.

legend - Performance Enhanced By: Horizontal Pipe Handling Capability (operated by 2 rig personnel)

Additional Offline Capability

AHS & ED ID Description 26" Hole & 18 5/8" Conductor (1,500' MD) 1 Nipple up diverter and function test 2 Pickup BHA 3 Trip in 4 Washout Drive Pipe Bit #1 5 Run Gyro multishot 6 Trip out 7 Pick up 13 1/2" Directional BHA 8 Trip in 9 Drill hole section bit #2 10 Trip out 11 Pick up 26" underreamer assembly 12 Trip in 13 Underream hole section 14 Trip out 15 Pick up hole opener assembly 16 Wiper trip to TD 17 Circulate bottoms up 18 Trip out 19 Rig up & run 18 5/8" Casing 20 Circulate (Annulus & Casing Volume) 21 Cement 22 Set slips and cut 18 5/8" 23 Nipple down 20" Diverter 24 Install wellhead and test to 300psi 25 Nipple up diverter Duration 1.83 days 2 hrs 1 hr 1 hr 1 hr 1 hr 1 hr 2 hrs 1 hr 4 hrs 1 hr 2 hrs 1 hr 5 hrs 1 hr 1 hr 1 hr 1 hr 1 hr 6 hrs 2 hrs 1 hr 1 hr 1 hr 2 hrs 3 hrs Run in doubles, from horizontal or vertical Stand back 5" (for next hole section) in stands from horizontal storage (concurrently) Stand back 5" (for next hole section) in stands from horizontal storage (concurrently) Stand back 5" (for next hole section) in stands from horizontal storage (concurrently) Stand back doubles of 13 3/8" csg. (for next hole section) from horizontal storage (concurrently) Stand back doubles of 13 3/8" csg. (for next hole section) from horizontal storage (concurrently) Stand back doubles of 13 3/8" csg. (for next hole section) from horizontal storage (concurrently) Stand back 5" (for next hole section) in stands from horizontal storage (concurrently) Standing back in derrick Standing back in derrick - tested Standing. back in derrick Notes

17 1/2" hole & 13 3/8" Surface casing (4,500' MD) 26 Pick up BHA 27 Trip in 28 Pressure Test Casing & Function test diverter

1.52 days 1 hr 0.5 hrs 0.5 hrs

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29 Drill out & perform leak off test 30 Drill Hole Section 31 Trip Out and lay down BHA 32 Rig up & Run 13 3/8 in 33 Circulate 34 Cementing 35 Set Slips and cut 13 3/8 casing 36 Nipple Down 20 in Diverter 37 Install 20in x 13 5/8 Spool and Test 38 Nipple Up 13 5/8 in BOP

0.5 hrs 13 hrs 2 hrs 5.5 hrs 4 hrs 3 hrs 2 hrs 1.5 hrs 1 hr 2 hrs Rack back BHA Run in doubles, from horizontal or vertical Stand back 5" (for next hole section) in stands from horizontal storage (concurrently) Stand back 5" (for next hole section) in stands from horizontal storage (concurrently) Stand back 5" (for next hole section) in stands from horizontal storage (concurrently) Stand back doubles of 9 5/8" csg. (for next hole section) from horizontal storage (concurrently) Stand back doubles of 9 5/8" csg. (for next hole section) from horizontal storage (concurrently) Stand back doubles of 9 5/8" csg. (for next hole section) from horizontal storage (concurrently)

12 14 in Hole 9 5/8 in (16,500' MD) 39 Pick up BHA 40 Trip in & Test Casing 41 Drill out & perform leak off test 42 Drill Hole Section 43 Trip for Bit 44 Drill Hole Section 45 Trip for Bit 46 Drill Hole Section 47 Trip for Bit 48 Drill Hole Section 49 Trip for Bit 50 Drill Hole Section 51 Trip for Bit 52 Drill Hole Section 53 Circulate and Condition Mud 54 Trip Out 55 Change Rams to 9 5/8 in Casing 56 Rig up and Run 9 5/8 in casing 57 Circulate 58 Cementing 59 Set Slips and Cut 9 5/8 in Casing 60 Nipple Down BOP 61 Install 13 5/8 in x 13 5/8 in Spool and Test 62 Nipple up 13 5/8 in BOP

15.98 days 0.5 hrs 3 hrs 1.5 hrs 65 hrs 6 hrs 50 hrs 4 hrs 50 hrs 4 hrs 50 hrs 4 hrs 50 hrs 4 hrs 50 hrs 4 hrs 8 hrs 1.5 hrs 14 hrs 2 hrs 3 hrs 2 hrs 3 hrs 1 hr 3 hrs Run in doubles, from horizontal or vertical Lay down 5in DP in stands horizontally (concurrently) Lay down 5in DP in stands horizontally (concurrently) Lay down 5in DP in stands horizontally (concurrently) Pick up BHA, 3 1/2 and 4 1/2 in DP (concurrently) Pick up BHA, 3 1/2 and 4 1/2 in DP (concurrently) Pick up BHA, 3 1/2 and 4 1/2 in DP (concurrently) Enhanced performance with AHS & ED Pick up doubles of 9 5/8" casing from horizontal storage (concurrently) Lay down 5in DP in stands horizontally (concurrently) Enhanced performance with AHS & ED Enhanced performance with AHS & ED Enhanced performance with AHS & ED Enhanced performance with AHS & ED Enhanced performance with AHS & ED

8 3/4 in Hole (19,340' MD) 63 Lay down 5in DP 64 Install variable rams 65 Test BOP 66 Pick up BHA, 3 1/2 and 4 1/2 in DP 67 Test Casing 68 Drill out & perform leak off test

9.5 days 11 hrs 2 hrs 3 hrs 14.5 hrs 0.5 hrs 3 hrs Activity simultaneous to items 57 - 62 or completed during items 64 & 65 Activity simultaneous to items 57 - 62 or completed during items 64 & 65

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69 Drill Hole Section 70 Trip for Bit 71 Drill Hole Section 72 Trip for Bit 73 Drill Hole Section 74 Trip for Bit 75 Drill Hole Section 76 Circulate and condition mud 77 Trip Out 78 Change Rams to 7 in casing 79 Rig up and Run 7 in Casing 80 Circulate 81 Cement 82 Set Slips and cut 7 in casing 83 Nipple Down BOP 84 Release Rig

35 hrs 6 hrs 35 hrs 6 hrs 35 hrs 6 hrs 35 hrs 4 hrs 8 hrs 1.5 hrs 14 hrs 1.5 hrs 3 hrs 2 hrs 2 hrs 0 days

Enhanced performance with ED

Enhanced performance with ED

Enhanced performance with ED

Enhanced performance with ED Stand back doubles of 7" csg. (for next hole section) from horizontal storage) Lay down 3 1/2" and 4" DP in stands horizontally Run in doubles, from horizontal or vertical Lay down 3 1/2" and 4" DP in stands horizontally Lay down 3 1/2" and 4" DP in stands horizontally Lay down 3 1/2" and 4" DP in stands horizontally Lay down 3 1/2" and 4" DP in stands horizontally

Fig 2: GOM Automation and Mechanization Vs. Conventional Design

0

5000

Conventional
10000 Depth (ft)

Automation and Mechanization

15000

20000

25000 0 5 10 15 20 25 30

Days