Deepwater Development -Challenges and Opportunities-

Mark Hansen Shell EP Projects

Copyright: SIPC

Stavanger, Norway 2 February 2005

2/8/2005

File Title

Deepwater Development -Challenges and Opportunities Challenges of the Deepwater Environment Global Deepwater Technology Needs Technology and Upcoming Shell Deepwater Projects Difficult Hydrocarbons Complex Wells Solutions for Surface Systems
Artificial Lift Subsea Systems and Hardware Pipelines/Flowlines Risers Floating Systems
Moorings/Stationkeeping Hulls Topsides

Metocean Criteria

Challenges of the Deepwater Environment

Remoteness
Distant from Shore Distant from Infrastructure (or none existing) Developing Countries

Depth (potentially beyond 3,000 meters)

Hydrostatic Pressures Extreme Low Sea Water Temperatures

Metocean Conditions
Severe Surface Conditions (wind, wave, current) Deep Ocean Currents (often poorly understood, sparse data)

Global Deepwater Technology Needs

N. Sea / Atlantic Margin Long offset gas Flow Assurance Subsea gas compression Gulf of Mexico Ultra-deepwater Artificial Lift Long offset satellites Low costs Compartmentalization Flow Assurance Offshore Brazil Artificial Lift Crude value & EOR Ultra-deepwater FPSO technologies Offshore Eqypt Long offset gas Alternative gas transport Ultra-deepwater Offshore Nigeria FPSO technologies Low costs Ultra-deepwater Compartmentalization Flow Assurance NW. Borneo FPSO technologies Low costs Alternative DVA systems Ultra-deepwater

Great White (Gulf of Mexico)

Description
Ultra-Deep - 2,500 meters Shallow to Medium Depth Hydro-pressured Reservoirs 300 km from Shore Problematic Bathymetry (canyon features, slope stability?) Relatively High GOR Some Heavy Oil Lack of Infrastructure (pipelines)

relevant to non-DVA Semi

Host Systems Subsea
Artificial Lift Umbilicals Power Cables Flow Assurance Fit-forPurpose Hardware Hydrate Inhibition Cost Synthetic Moorings Host Types Wet-Tree DVA?

Key Technologies

relevant to Dry-tree DVA Spar

Host Systems
Spar Air Can Interaction Hull VIM Synthetic Moorings

Catenary Risers
Design for Water Depth & Seafloor Conditions Metocean Data Acquisition

Wells
Wellbore Artificial Lift Drilling Reach

Top Tensioned Risers

Design for Artificial Lift High Tension Air Cans vs. Hydraulics Metocean Data Acquisition

Wells
Gen IV Rig

BC-10 (Brazil - Campos Basin)

Description
Deep - 1,900 meters Shallow Hydro-Pressured Reservoirs 120 km from Shore Heavy Oil (API Gravity 15 to 24) Low GOR Crude Exported

Key Technologies
Artificial Lift FPSO Technologies Steel Risers

Locatio n

Developmen t Scenarios

Difficult Hydrocarbons (potentially low value)

Heavy, viscous crude oils
API gravities less than 20 Viscosities greater than 100 centipoise Relatively Shallow Reservoirs
Low Pressures Low Temperatures May need pressure maintenance (water injection) and/or artificial lift

OR
Deep, hot, sour production
Corrosive Materials engineering challenges due to high temperatures (seals, coatings, etc.) Extreme pressures Contaminants may influence marketability/price

H2S

CO2

Complex Wells
Expandable Casing Mono-diameter Wells Smart Wells Deep, Extended Reach Wells Horizontal Wells Multi-lateral Wells High Integrity Completions/Sand Control Multiple Zone Completions

Extend Application of Existing Rigs to Ultra-Deepwater: Surface BOP (development wells) Composite Risers Artificial Seabed ECD Reduction (dual gradient drilling, riser lift) Pre-Installed Moorings Synthetic Moorings

Potential Solutions: (payload/variable load reduction a key lever)

Surface BOP

Pre-installed Taught Leg Polyester mooring

Pressured Riser 13 3/8 - 16

Composite Drilling Riser

SSODD Suction Pile Slim Wellhead Anchor

Tubing Spool /Drill Through Tree

13 3/8 -

9 5/8 - 10 5/8

Reduced Casing Scheme Issues Surface casing setting depth Shallow Hazards ETT requirement Water Injection tbg OD Sand Control - ESS vs GP Scope for multi-zones/laterals Completion Issues DownholeFlow Assurance DownholeArtificial lift DownholeMonitoring & Control ? SC-SSSV ? Metallurgy

Achievable exposure ?

Achievable outstep ?

Artificial Sea Bed

Solutions for Surface Systems

Artificial Lift
Primarily Needed With: 9 Heavier Crude 9 Shallow Reservoirs 9 Low Pressures 9 Ultra-Deepwater Issues: 9 Viscosity Tolerance 9 Gas Tolerance 9 High Boost Requirements 9 Electric Power
Subsea Distribution Power Cables/Umbilicals High Voltage Connections

9 Controls 9 Reliability/Intervention 9 Associated Flow Assurance Strategies

Range of Potential Solutions Wellbore Lift 9 Gas Lift 9 Pumping (ESPs, HSPs) Seafloor Lift 9 Gas Lift 9 Multi-Phase Pumping 9 ESPs 9 Separation and Single Phase Pumping

Seafloor Artificial Lift

Gas Riser

Host

Multiphase Pumps
Well

Gas/Liquid separator Multiphase Flowline Liquid Pump

Liquid Riser

Riser Base Separation and Single Phase Pumping

Power Umbilical Cross Section

Caisson Separator with ESP

Subsea Systems and Hardware

Technology Needs
Ultra-Deep Installation Options (heavy equipment) Flow Assurance
Flowline Insulation Electric Heating (pipe-in-pipe & single pipe) Pigging Technologies Wax & Hydrate Remediation Techniques Improved Predictive Models (hydrates, wax, asphaltenes) Chemicals and Inhibition Technology

Equipment Insulation Separation Compression All Electric Valve Actuation

Subsea Systems and Hardware Solutions

Next Generation Insulation Ultra-Deep Installation (Heave Compensation)

Remediation Solutions Electrically Heated Flowlines

Pipelines & Flowlines

Technology Needs
Single Pipe Flowline Solutions High Strength Materials Integrated Production Umbilical (IPU) Extensions to Flexibles Technology Composites Subsea, Diver-less Hot Tapping Repair Solutions Novel Installation Techniques
reduced reliance on heavy lift vessels

Risers
Technology Needs
Fatigue Performance of Steel Risers
Steel Catenary Risers (SCRs) Steel Lazy Waves

Freestanding Risers/Towers Flexibles Composites Top Tensioned Risers

TLPs (hydraulic tensioners) Spars (air cans) Semi-submersibles?

Vortex Induced Vibration (VIV)

Predictive Models Suppression Devices (strakes, fairings)

Floating Systems Moorings/Stationkeeping

Deployment Issues

Technology Needs
Synthetic Moorings
Deployment Longevity Monitoring Maintenance
Carbon Fiber/ FRP Mooring Lines

Alternates for TLP Tendons

Composites Active Pressurization

Alternative Anchoring Systems

Vertically Loaded Anchors (VLAs) Suction Piles Torpedo Pile? Driven Piles for Ultra-Deep?

Dynamic Positioning for Permanent Systems?

Floating Systems Hulls

FPSO Technologies
Turret/Swivel Systems Integration of Steel Risers and Turrets Roll Motion Prediction Offloading Operability
5 4

DIFFRACTION COEF.ROLL /90 DEG /optfpso

roll moment

3 2 1 0 0 5 10 15 period (sec) 20 25 30

Vortex Induced Motions (VIM)

Spars and Other Hull Forms Calibrate Models and Field Data
phase

200 100 0 100 200

10

15 period (sec)

20

25

30

Wet-Tree DVA Floating LNG

Floating Systems - Topsides

Weight and Space are Key Drivers for Floating Facilities Need Total Systems Approach to Optimization

Technology Needs Advanced Membrane Technology

CO2 Removal H2S Removal Sulfate Removal (water injection)

Improved Systems for Gas Dehydration