OIL’s Core Purpose Statement

“The fastest growing energy company with global presence providing

value to stakeholders.”

1. Introduction

Oil India Limited (OIL) is a premier National Oil Company engaged in the business of Exploration,
Production and Transportation of Crude Oil and Natural Gas. A Navratna Company under the
Ministry of Petroleum and Natural Gas, Government of India, it is the second largest oil and gas
company in India as measured by total proved plus probable oil and natural gas reserves and
production.

The story of Oil India Limited (OIL) traces and symbolizes the development and growth of the
Indian petroleum industry. From the discovery of crude oil in the far east of India at Digboi, Assam
in 1889 to its present status as a fully integrated upstream petroleum company, OIL has come far,
crossing many milestones.

On February 18, 1959, Oil India Private Limited was incorporated to expand and develop the newly
discovered oil fields of Naharkatiya and Moran in the Indian North East. In 1961, it became a joint
venture company between the Indian Government and Burmah Oil Company Limited, UK.

In 1981, OIL became a wholly-owned Government of India enterprise. Today, OIL is a premier
Indian National Oil Company engaged in the business of exploration, development and production of
crude oil and natural gas, transportation of crude oil and production of LPG. OIL also provides
various E&P related services and holds 26% equity in Numaligarh Refinery Limited.

1
1.1 Vision

 Oil India Limited, i.e. OIL is the fastest growing Energy Company with highest profitability.
 OIL delights the customers with quality products and services at competitive prices.
 OIL is a learning organization, nurturing initiatives, innovations and aspirations with best
practices.
 OIL is a team, committed to honesty, integrity, transparency and mutual trust creating
employee pride.
 OIL is a fully committed to safety, health and environment.
 OIL is a responsible corporate citizen deeply committed to socio-economic development in
its areas of operations.

1.2 Corporate Objectives

 Exploration for new oil and gas reserves

 Development of discovered oil fields and increased recovery from matured and developed
fields.
 Acquisition of new exploration acreage and oil and gas producing properties.
 Venturing into oil fields service sector and participation in midstream activities.
 Enhanced implementation of SHE measures in operations.
 Sustain and promote environmental protection.
 Optimum utilization of human resources.
 Engage in corporate social responsibility activities in operational areas.
 Ensure reasonable return on capital and optimize cost of production.

1.3 Activities of OIL

OIL is operating in 53 Blocks and has participating interests in another 16 Blocks with a total of over
100,000 sq.kms of licensed areas. It is producing 70,000 bbls/day of crude oil and 260 MMSCFD of
natural gas, with a total production of oil and oil equivalents of 111,000 bbls/day.

To achieve OIL’s vision of becoming the fastest growing energy company, with highest profitability,
the company has realized the need to look beyond the shares of India. Aggressively seeking for
overseas business opportunity is one of the strategic goals of India. Within a short span of 4-5 years,
OIL is already present in 7 countries like Iran, Libya, Gabon, Sudan, Yemen, Nigeria and East
Timor. The focus is also on West Africa, CIS countries, middle-east countries etc. With the
discovery of heavy oil in Farsi Block in Iran, OIL already has tasted its first success overseas.

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1.4 Competitive Strengths

OIL believes that its success can be attributed to a combination of the following competitive
strengths:

 Its large proved plus probable reserves of crude oil and natural gas in the Upper Assam basin.
 Sizeable domestic and international exploration acreage in basins with a track record of
commercial discoveries and known accumulations of hydrocarbons.
 Track record of making and exploiting small to medium size discoveries.
 Its reservoir management skills for aging and depleting fields.
 Its beneficial cost structure from its status as an integrated exploration and production
company with over five decades of operating experience, development and production
operations, and effective use of its large store of geological data and expertise.

1.5 Human Resource Development

Optimum development of Human Resources stands out to be the byword of the company objectives,
concomitant with the country's goal of globalization.

Two in-house institutes viz., The Management Training

and Development Centre and the Oil Training Institute
have been set up to cater to company's operational
requirements. The Institutes not only offer services to the
Company but also to other industries in the Northeast
India for development of contemporary management
practices and application, workmen training and skill up
gradation.

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1.6 Awards and Accolades

 Oil Industry Safety Directorate Award for its onshore oil and gas assets in Assam as the best
performer of the year (2009-10).
 SCOPE Award for Excellence and outstanding contribution to Public Sector Management-
Individual Leader, PSE Category (2009-10).
 Company of the Year Award 2011 by Indian Chamber of Commerce, supported by the
Department of Public Enterprises, Government of India, for its all round performance on the
physical, financial, HSE, CSR and sustainability parameters.
 IPE HR Leadership Award 2012 from the Institute of Public Enterprise (IPE).
 Golden Peacock Award for CSR 2012.
 NDTV Business Leadership Award in the Oil and Gas Sector 2010-11.
 Golden Peacock Award for Corporate Governance 2011.
 2nd Greentech HR Gold Award 2012, in the Training Excellence category for the
Corporate Sector.
 Aqua Excellence Award 2011.
 Greentech Environment Award 2011 in Gold Category in the Oil and Gas Sector.
 360 Degree Growth Award amongst all PSUs by Dalal Street Investment Journal.
 Golden Peacock Global Award for CSR for the year 2010 by World Council for Corporate
Governance in Lisbon, Portugal.

1.7 Address

Corporate Office Registered Office

Oil India Limited Oil India Limited

Plot No: 19, Sector-16A Duliajan-786602, Assam, India

Noida-201301, Uttar Pradesh, India Fax: +91-374-2800433, 2801676

EPABX: +91-120-2488333/347 E-mail: oilindia@oilindia.in

Fax: +91-120-2488310 Phone: +91-3742804510, 2804901

E-mail: oilindia@oilindia.in

Website: www.oil-india.com

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2. Drilling activities in OIL

OIL currently owns and operates 13 drilling rigs and 14 work-over rigs, besides charter hiring
drilling rigs based on operational requirement.

Over 1,000 wells covering over 3.5 million meters, varying in depth from 1,000 – 5,000 meters, have
been drilled in various surface and sub-surface environments, including high underground pressures
and temperature conditions.
As an E & P Company, Oil India Limited has its primary objective to continuously endeavor for
accretion of reserves, maintenance of production level.

OIL’s systematic and scientific approach to exploration has been rewarded with a high
success ratio of 65% of exploratory wells drilled. OIL also possesses 2D and 3D seismic data
acquisition capabilities, with excellent support services ranging from satellite navigation
systems to remote blasting units.

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3. Oil-well Drilling

An oil well drilling is a general term for any boring through the earth’s surface that is designed to
find and produce petroleum oil hydrocarbons. Usually some natural gas is produced along with the
gas.

The well is created by drilling a hole 5 to 36 inches (127.0mm to 914.4mm) diameter into the earth
with a drilling rig which rotates a drill string with a bit attached.

After the hole is drilled, sections of steel pipe (casing), slightly smaller in diameter than the
borehole, are placed in the hole. Cement is placed between the outside of the casing and the
borehole.

The casing provides structural integrity to the newly drilled well bore in addition to the isolating
potentially dangerous high pressure zones from each other and from the surface. With these zones
safely isolated and the formation protected by the casting, the well can be drilled deeper (into
potentially more unstable and violent formations) with a smaller bit.

3.1 Types of wells

An exploratory well is a well drilled for the purpose of discovering new reserves in unproven areas.
They are used to extract geological or geophysical information about an area with a view to
exploiting untapped reserves. Exploratory wells are sometimes known as Wild-cat wells (A well
drilled in an area where no current oil or gas production exists, also called a “rank wildcat”).

An Appraisal Well is a well drilled to further confirm and evaluate the presence of hydrocarbons in a
reservoir that has been found by a wildcat well. It helps to measure the size/quality (commercial
potential) of a hydrocarbon discovery before development.

A Development Well is a well drilled with the proved area of an oil or gas reservoir to the depth of a
stratigraphic horizon known to be productive to complete a pattern of production. It is designed to
produce hydrocarbons from a gas or oil field within a proven productive reservoir defined by
exploration or appraisal drilling.

3.2 Drilling Operations (summary)

All of the efforts of the petroleum land-men, geologists and geophysicists and everyone else
involved in leasing and exploration activities up to this point must culminate in a decision by the
management of the company to either drill or not drill a well.If the exploration activities conducted
thus far have not found encouraging indications for the accumulations of petroleum in the area being
explored, the leases held in the area will likely be dropped.

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If exploration activities have been encouraging, however, a decision will likely be made to drill an
exploratory well.

1. Drill site selection: The selection of the drill site is based largely on the geological evidence
indicating the possible accumulation of petroleum. The exploration company will want to
drill the well at the most advantageous location for the discovery of oil or gas. Surface
conditions, however, must also be taken into consideration when selecting the drill site.
2. Drill-site preparation: Once the drill-site has been selected and surveyed, a
contractor/contractors will move in with equipments to prepare the location. Large pits will
be constructed to contain water for drilling operations and for the disposal of drill cuttings
and other waste. A large diameter hole will be drilled to a shallow depth and lined with
conductor pipe.
3. Rigging Up: The components of the drilling rig and all necessary equipment are moved onto
the location with, specially equipped trucks for a land location. The mast or derrick is raised
over the substructure and the other equipments such as engines, pumps and rotating and
hoisting equipment are aligned and connected.
4. Spudding In: Spudding in or to spud a well means to begin drilling operations. The drill
string consisting of a drill bit, drill collar, drill pipe and Kelly is assembled and lowered into
the conductor pipe. Drilling fluid, better known as mud is circulated through the Kelly and
the drill string by means of pipes and flexible hose connecting the drilling fluid and a swivel
device attached to the upper end of the Kelly.
5. Drilling the surface hole: When a well is spudded in, a large diameter drill bit is used to drill
to a predetermined depth. This is for the purpose of drilling the surface hole. The surface inlet
is lined with casing. The casing protects aquifers which may contain fresh water, provides a
mounting place or the blowout preventer, and serves as the support for the production casing
that will be placed in the well bore if the drilling program is successful.
6. Drilling to a total depth: After the surface casing has been tested and the blow out
preventer installed, drilling operations are installed. They will continue until the well has
been drilled to the total depth decided upon.

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4. Types of wells

Straight S- Bend J- Bend Horizontal

4.1 Deviation Kick Off

 For s – bend kick off starts at around 180-200m in isolation stage and completed within
isolation stage.
 For j – bend kick off starts at oil string and completed till the end of the target.
 For horizontal well kick off starts at 2000m – 2200m and reached the 900 angle at the end of
the 1st isolation and the horizontal portion of about 400 m drilled in the 4th stage

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5. Stages of Drilling Operation

6. Formation and Finding of oil

6.1 Formation of Oil

Oil is formed from the remains of tiny plants and animals (plankton) that died in ancient seas
between 10 million and 600 million years ago. After the organisms died, they sank into the
sand and mud at the bottom of the sea. Over the years, the organisms decayed in the
sedimentary layers. In these layers, there was little or no oxygen present. So microorganisms
broke the remains into carbon-rich compounds that formed organic layers. The organic
material mixed with the sediments, forming fine-grained shale, or source rock. As new
sedimentary layers were deposited, they exerted intense pressure and heat on the source rock.
The heat and pressure distilled the organic material into crude oil and natural gas. The oil
flowed from the source rock and accumulated in thicker, more porous limestone or sandstone,
called reservoir rock. Movements in the Earth trapped the oil and natural gas in the reservoir
rocks between layers of impermeable rock, or cap rock, such as granite or marble

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6.2 Finding Oil

The task of finding oil is assigned to geologists, whether employed directly by an oil company or
under contract from a private firm. Their task is to find the right conditions for an oil trap -- the right
source rock, reservoir rock and entrapment. Many years ago, geologists interpreted surface features,
surface rock and soil types, and perhaps some small core samples obtained by shallow drilling.
Modern oil geologists also examine surface rocks and terrain, with the additional help of satellite
images. However, they also use a variety of other methods to find oil. They can use sensitive gravity
meters to measure tiny changes in the Earth's gravitational field that could indicate flowing oil, as
well as sensitive magnetometers to measure tiny changes in the Earth's magnetic field caused by
flowing oil. They can detect the smell of hydrocarbons using sensitive electronic noses called
sniffers. Finally, and most commonly, they use seismology, creating shock waves that pass through
hidden rock layers and interpreting the waves that are reflected back to the surface.

7. Casing

Casing is a large diameter pipe assembled and inserted into a recently drilled section of a borehole
and typically held into space with cement.

Conductor casing and drilling is mainly done to prevent formation erosion, hole collapse
pollution of nearly drinking water zone.

Isolation drilling and casing is done to prevent formation fracture due bottom hole high
pressure or mud hydrostatic pressure, and to save the well from internal blowout; this zone is
cased immediately after drilling.

7.1 Purpose of casing

 Prevent contamination of fresh water well zones.

 Prevent unstable upper formations from caving-in and sticking the drill string or
forming large caverns.
 Provides a strong upper foundation to use high-density drilling fluid to continue
drilling deeper.10
 Isolates different zones that may have different pressures or fluids - known as zonal
isolation, in the drilled formations from one another.
 Seals off high pressure zones from the surface, avoiding potential for a blowout
 Prevents fluid loss into or contamination of production zones.
 Provides a smooth internal bore for installing production equipment.

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For 3-stage well drilling

171⁄2 inch bit - 133⁄8 inch casing (conductor drilling and casing)
121⁄4 inch bit - 95⁄8 inch casing (isolation drilling and casing)
81⁄2 inch bit - 51⁄2 inch casing (oil string drilling and casing)

171⁄2 inch bit

133⁄8 casing
150m

121⁄4 inch bit

9 5⁄8 inch casing

1850m

81⁄2 inch
1bit
52 inch casing
3670m

A typical 3 stage well casing

policy.

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For 4-stage well drilling

26 inch bit – 20 inch casing (conductor drilling and casing)

171⁄2 inch bit - 133⁄8 inch casing (isolation drilling and casing)
121⁄4 inch bit - 95⁄8 inch casing (isolation drilling and casing)
81⁄2 inch bit - 51⁄2 inch casing (oil string drilling and casing)

26 inch bit, 20
inch casing,
150 m

150 m

171⁄2 inch bit

133⁄8inch
casing
1500m

121⁄4 inch bit,

95⁄8 inch casing

3500m 81⁄2 inch bit, 51⁄2

inch casing, 4380m

A typical 4 stage well casing

policy.

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Some extra terminology:

Logging
The process of recording formation parameters against depth for locating reservoirs, their contents
and the ability to produce oil, gas or water after interpretation is known as ‘Well Logging’.

Coring
A core drill is a drill specifically designed to remove a cylinder of material, much like a hole saw.
The material left inside the drill bit is referred to as the core.

8. Cementing

In the most general sense of the word, a cement is a binder, a substance that sets and hardens
independently, and can bind other materials together.

8.1 Cementing terminology & definitions

 Neat cement slurries- cement mixed only with water,(no additives) are called slurries
 Slurry density- defined as weight per unit volume- pounds per gallons
 Mix water & mix fluid- refers to amount of liquid (ppg) required to mix one sack of cement.
The mix fluid is mix water plus all liquid additives
 Slurry yield- The yield of any slurry is the volume liquid slurry resulting from mixing one
sack of cement with requird volume of mix fluid

8.2 Reasons for cementing

 It bonds and supports casing.
 It deals with lost circulation zones.
 It protects casing from corrosion due to sub-surface brines and sour gas.
 It prevents blow-outs by forming a seal against the formation.
 It protects casing (shoe) from shock loading when drilling ahead.
 It prevents fluid movement between zones.

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 Primary cementing

Cementing
Secondary cementing

Plug cementing Squeeze cementing

8.3 Types of Cementing:

Primary cementing
The first cementing operation performed to place a cement sheath around a casing or liner. The main
objectives of primary cementing include zonal isolation to prevent fluid migration in the annulus,
support for the casing or liner, and protection of the casing from corrosive fluids.

Secondary cementing
Another term for remedial cementing, cementing operations performed to repair primary-cementing
problems or to treat conditions arising after the wellbore has been constructed.
The two main categories of remedial cementing include squeeze cementing and the
placement of cement plugs.

Plug cementing: A rubber plug used to separate the cement slurry from other fluids, reducing
contamination and maintaining predictable slurry performance. Two types of cementing plug
are typically used on a cementing operation. The bottom plug is launched ahead of the
cement slurry to minimize contamination by fluids inside the casing prior to cementing. A
diaphragm in the plug body ruptures to allow the cement slurry to pass through after the plug
reaches the landing collar. The top plug has a solid body that provides positive indication of
contact with the landing collar and bottom plug through an increase in pump pressure.

Squeeze cementing: The forcing, by pressure, of cement slurry into a specified location in a
well, such as channels or perforations, for the purpose of achieving zonal isolation. Squeeze
damage incurred by corrosive fluids.

Applications of squeeze cementing:

 Supplement a fault primary cement job.
 Reduce water/oil, water/gas or gas/oil ratio.
 Repair casing leaks.
 Stop lost circulation in open hole while drilling.
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  Supplement primary cement around a liner by squeezing the top of the line (during
primary cementation).
 Sealing leakage of the liner top (incase of failure after primary cementation).
 Abandonment of single zones.

8.4 Basic terms in Cementing

Pressure gradient: When pressure of fluid of a given density is measured over a given unit
depth is called pressure gradient.

Formation pressure: Also known as pore pressure, it is the pressure exerted by the fluids
trapped in the pores of the formation. Its is categorized into 2 types depending on the
formation of pressure gradient.
1. Normal- If the pressure gradient is ranging from 0.433 psi/ft to 0.465 psi/ft, then it is
known as normal formation pressure.
2. Abnormal- If the pressure gradient is less than 0.433 psi/ft, then it is known as
abnormal formation pressure

Bottom Hole Pressure (BHP)/ Hydrostatic Head: It is the pressure exerted by a static
column of fluid by virtue of its density. It depends on the True Vertical Depth (TVD) of the
fluid column and the density of the fluid. Hydrostatic Pressure will not depend upon the hole
size or the hole geometry.

Hydr. Press.(psi) = 0.052  Mud weight (ppg)  TVD(feet)

Ex. Mud weight = 10 ppg , TVD = 10,000 ft

Hydr. Press. = 0.052  10  10,000 = 5200 psi

Kick: It is defined as an influx or flow of formation fluid into the well-bore and can occur
any time the formation fluid pressure is greater than the Bottom Hole Pressure being exerted
in the well-bore.

Blow-out: It is the uncontrolled flow of formation fluid at the surface or sub-surface from the
well-bore. A blow-out is the result of an uncontrolled kick.

Primary well control: Maintenance of sufficient hydrostatic pressure in the well-bore to

control back the formation pressure.

Secondary well control: It involves the proper use of B.O.P. & kill procedures for detection
and safe handling of kicks so as to re-establish the Primary Well Control.

Tertiary well control: It involves the techniques used to control a blow-out once the primary
and secondary control are lost. This primarily involves a re-establishment of the secondary
control system such as the well control conduit, well head and BOP equipment and
subsequently establishing the primary control.

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9. Layout of a drilling location

9.1 How a hole is drilled?

 A hole is drilled by applying rotational and downward force to the drill bit
 Mud is pumped through the drill string and passes to the annulus through bit nozzles,
thereafter it flows up and come back to the surface
 Rop (rate of penetration) depends upon formation and drilling parameters
 Drilling parameters are wob, rpm and gpm
 Rpm and wob depends upon type of formation, bit bha and type of operation
 Gpm depends upon size of hole, type of operation and mud hydraulic optimization
 Drilling mud lubricate and cool the bit. It lift cutting from the bottom of the hole and
carry it to the surface.
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10. Setup for Drilling

Power system

 Large Diesel Engines - burn diesel-fuel oil to provide the main source of power
 Electrical Generators - powered by the diesel engines to provide electrical power

Mechanical system - driven by electric motors

 Hoisting System - used for lifting heavy loads; consists of a mechanical winch
(draw-works) with a large steel cable spool, a block-and-tackle pulley and a
receiving storage reel for the cable

10.1. Drilling Rig:

A Drilling Rig is a package of

special equipment put together to
enable us to drill into the earth.

• A drilling rig has many

different parts:
• a derrick, a substructure,
hoisting equipment,
engines for power, drill
pipe, steel tanks, pumps,
solids control equipment,
and many other pieces.
OIL has the following
drilling rigs:
1. BHEL (A,B,C,D)
2. CARDWEL
(A,B,C)
3. Chinese Rig
(A,B,C,D,E)
4. Sky top (B)
5. KREMCO (K600)

 turntable - part of the drilling apparatus

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10.2 Rotating equipment - used for rotary drilling
 swivel - large handle that holds the weight of the drill string; allows the string to
rotate and makes a pressure-tight seal on the hole
 Kelly - four- or six-sided pipe that transfers rotary motion to the turntable and drill
string
 turntable or rotary table - drives the rotating motion
using power from electric motors
 drill string - consists of drill pipe (connected sections
of about 30 ft / 10 m) and drill collars (larger diameter,
heavier pipe that fits around the drill pipe and places
weight on the drill bit)
 drill bit(s) - end of the drill that actually cuts up the
rock; comes in many shapes and materials (tungsten
carbide steel, diamond) that are specialized for various
drilling tasks and rock formations.

10.3 Circulation system –

pumps drilling mud (mixture of water, clay, weighting
material and chemicals, used to lift rock cuttings from the drill
bit to the surface) under pressure through the kelly, rotary table,
drill pipes and drill collars

 pump - sucks mud from the mud pits and pumps it to

the drilling apparatus
 pipes and hoses - connects pump to drilling apparatus
 mud-return line - returns mud from hole
 shale shaker - shaker/sieve that separates rock cuttings
from the mud
 shale slide - conveys cuttings to the reserve pit
 reserve pit - collects rock cuttings separated from the
mud
 mud pits - where drilling mud is mixed and recycled
 mud-mixing hopper - where new mud is mixed and then sent to the mud pits

 Derrick - support structure that holds the drilling apparatus; tall enough to allow new
sections of drill pipe to be added to the drilling apparatus as drilling progresses
 Blowout preventer - high-pressure valves (located under the land rig or on the sea
floor) that seal the high-pressure drill lines and relieve pressure when necessary to
prevent a blowout (uncontrolled gush of gas or oil to the surface, often associated
with fire)

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11. Drilling

Attach the Kelly and turntable and begin drilling.

1. As drilling progresses, circulate mud through the pipe and out of the bit to float the
rock cuttings out of the hole.
2. Add new sections (joints) of drill pipes as the hole gets deeper.
3. Remove (trip out) the drill pipe, collar and bit when the pre-set depth (anywhere from
a few hundred to a couple-thousand feet) is reached.

Once they reach the pre-set depth, they must run and cement the casing -- place casing-pipe
sections into the hole to prevent it from collapsing in on itself. The casing pipe has spacers
around the outside to keep it centered in the hole. The casing crew puts the casing pipe in the
hole. The cement crew pumps cement down the casing pipe using a bottom plug, a cement
slurry, a top plug and drill mud. The pressure from the drill mud causes the cement slurry to
move through the casing and fill the space between the outside of the casing and the hole.
Finally, the cement is allowed to harden and then tested for such properties as hardness,
alignment and a proper seal. Drilling continues in stages: They drill, then run and cement new
casings, then drill again. When the rock cuttings from the mud reveal the oil sand from the
reservoir rock, they may have reached the final depth. At this point, they remove the drilling
apparatus from the hole and perform several tests to confirm this finding:

 Well logging - lowering electrical and gas sensors into the hole to take measurements
of the rock rmations there
 Drill-stem testing - lowering a device into the
hole to measure the pressures, which will reveal
whether reservoir rock has been reached
 Core samples - taking samples of rock to look
for characteristics of reservoir rock

Once they have reached the final depth, the crew

completes the well to allow oil to flow into the casing in
a controlled manner. First, they lower a perforating
gun into the well to the production depth. The gun has
explosive charges to create holes in the casing through
which oil can flow. After the casing has been
perforated, they run a small-diameter pipe (tubing) into
the hole as a conduit for oil and gas to flow up the well.
A device called a packer is run down the outside of the
tubing. When the packer is set at the production level, it
is expanded to form a seal around the outside of the
tubing. Finally, they connect a multi-valved structure
called a Christmas tree to the top of the tubing and
cement it to the top of the casing. The Christmas tree
allows them to control the flow of oil from the well.

19
Once the well is completed, they must start the flow of oil into the well. For limestone
reservoir rock, acid is pumped down the well and out the perforations. The acid dissolves
channels in the limestone that lead oil into the well. For sandstone reservoir rock, a specially
blended fluid containing proppants (sand, walnut shells, aluminum pellets) is pumped down
the well and out the perforations. The pressure from this fluid makes small fractures in the
sandstone that allow oil to flow into the well, while the proppants hold these fractures open.
Once the oil is flowing, the oil rig is removed from the site and production equipment is set
up to extract the oil from the well.

12. Extracting the oil

After the rig is removed, a pump is placed on the well head.

In the pump system, an electric motor drives a gear box that moves a lever. The lever
pushes and pulls a polishing rod up and down. The polishing rod is attached to a sucker rod,
which is attached to a pump. This system forces the pump up and down, creating a suction
that draws oil up through the well.

In some cases, the oil may be too heavy to flow. A second hole is then drilled into the
reservoir and steam is injected under pressure. The heat from the steam thins the oil in the
reservoir, and the pressure helps push it up the well. This process is called enhanced oil
recovery.

With all of this oil-drilling technology in use, and new methods in development, the question
remains: Will we have enough oil to meet our needs? Current estimates suggest that we have
enough oil for about 63 to 95 years to come, based on current and future finds and present
demands.

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5) The drill cuttings are removed and form
a cutting pile, this can be hauled off or
disposed off

21
13. Basic Idea about Few Equipment Used In Drilling

Drilling bit

 Bit: The first element of the BHA.

 Types of bit: Roller Cone and Diamond type, with each having sub-division.
 Roller cone bit consideration:
 Cones
 Bearings
 Body of the bit.
 Diamond bit types
 Factors considered in choosing a bit
 Developing an effective frilling bit programme takes into
account:
 Logging result.
 Bit records
 Lithologic description. Fig: Drill Bit

Drill collar

 Drill collar helpss in proper utilization of the bit by:

 Put weight on bit.
 To guide and control the path of the bit to reach the
scheduled target.
 Factors influencing drill collar outside diameter used
 Diameter of the borehole to drill and casing size
 Drilling fluid velocity in the hole
 Risk of different sticking
 Fishing with an overshoot.
 Factors influencing drill collar inside diameter used
 Rigidity near the bit and maximum pin thread resistance.
 Diameter of wire line tools to be run inside the drill stem Fig: Drill Collar
 Pressure losses inside the drill stem which must be low.

Stabilizers, HWDP and Jars

 Stabilizers are incorporated before or at the level of the drill collar to maintain and
control the direction of the bit in vertival or deviated well.
 HWDP has same outside diameter as drill pipe except for the central over-sizing and
longer tool joint.

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  It provide better mechanical continuity between drill collars and drill pipes.
 Used in vertical and deviated wells as transitional drill pipes and in horizontal well to
add weight on bit. Drill collars are in horizontal well to guide and maintain the
direction of the well
 The purpose of the drilling jar is to help free the drill string incase of tight hole or
stuck pipes
 It helps transmit the rotary torque of the drill string and also to deliver an impact when
required (it could be upward or downward)
 To be located in the position where the risk of sticking is limited; also above the
neutral point of the BHA.

Choice of BHA: BHA is chosen according to

 Borehole diameter
 Weight on bit
 Borehole configuration
 Planned measurement system

Drill pipe
 A main component of the drill string
 It exists in different diameters, weights and steel grades
 Margin of pull dependent on the grade of drill pipe, weight
and diameter.
 The outside diameter must be compatible with borehole
size.
In general, requirements for a drill string are as follows:
 The ability to carry a fluid under pressure without leaking.
 The ability to transmit torque Fig: Drill Pipe
 The ability to handle tensile loads
 The ability of some section to handle pressure and torque while in compression
 The ability of the other section to handle pressure and torque while in tension

14. The Work-over Section

The operations involved in maintenance and servicing, repairing, installation of down-hole

production equipment etc in a cased hole/ production well is termed as work-over operation.

Reason for work-over

 To prevent water coning
 To prevent excessive gas production in an oil well
 To enhance production
 To control sand problems
 Plug back and re-completing a new zone / reservoir(Higher-up testing)
 Completing in multiple reservoir

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 Down hole Equipment & Cement repair
 To eliminate excessive water or gas production
 To repair mechanical failure of down hole
equipments
 To gain additional production through re-
completion
 To evaluate potentially productive zones
 To clean scaling of Tubing & Casing
 To clean perforation plugging- acidization.
 To replace production string
 To control sand ingression-To control sand
entering well bore from formation by Gravel
Packing job.
 To increase formation permeability
 To install artificial lift system, bottom hole
pump, to install down hole electric heater etc.
 To repair or replace well head
 Conversion of well from oil/gas well to water
injection well.
 Re-perforation or extension of perforation
 Isolation Repair(cement squeezing job)
 Casing repair and recovery
 Fishing – retrieving parted tubing, sinker bar,
piano wire and recovery of any unwanted
foreign materials fell in the well bore)
 Sand cleaning
 Well head repair or replacement
 Conversion of low producing well to water injection for increasing reservoir pressure.
 Conversion of dead well to water disposal well for pumping back formation water
producing along with oil.

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15. Precautions and Safety Measures

 People working at high positions (above 1.8m

free fall) must use safety belt.
 Mast pins, hammer and any other tool in used
must be handle carefully.
 The slings used in lifting of parts should not be
open up till all the pins are properly inserted.
 While opening up sling at height, proper
anchoring of safety belt should be insured.
 Driller should ensure that solid control units are properly working and take necessary
corrective action if any.
 Driller should ensure that all crew at site are using ppe and take necessary corrective
action if any.
 Driller should ensure the functioning of the bop control unit before/during resuming
his duty. He should ensure that the pressure switch of the unit is working and it is
pressurized up to required level.

16. Conclusion

During my training period of 30 days, a detailed explanation was given on the operation and
the functioning of various instruments used in the various sections of drilling department. The
instruments were shown in hand and their functions and working were explained in detail.
The specifications along with its importance and the functions of these components were
studied briefly and the processes involved were observed. The entire training period has been
a great learning process where I had the opportunity of experiencing a valued industrial
exposure, which definitely will help me in the long run to work as a unit and do so
successfully. The kind of support that I got here is really appreciable. I hope I would be
fortunate to work with them in the near future.

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