DRILLING PROJECT

MANAGEMENT

JDS, Mar 27th 2020

 Course Objective

Understand the importance of Project

1 Management for Well Construction.

2
Understand one Project Management
Tool : JDS Drilling Project
Management

2
Score Contribution

1 You will do the group assignment.

2 The assignment will be submitted at the end

of the class and be scored.

3 The score will contribute to your individual

scoring at your certificates.

Make a group of 4-5 people and assign the

4 member of the group for drilling, reservoir, and
geoscience representative.

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 Topic Outline

 Reason Project Management is Important for

Well Construction
 JDS Drilling Project Management

• Phase 1 : Define opportunities and objectives

• Phase 2 : Generate alternatives

• Phase 3 : Detail Engineering and Risk Assessment

• Phase 4 : Drilling Program and Project Execution

• Phase 5 : Evaluation

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 Group Exercise #1

You are asked to drill a geothermal well and obtain ~6 MW to

maintain the power plant at full generation. In addition, your
well also have to get the geological information on new
prospective area at South West.

Discuss what needs to be prepared prior your team drill

the well on the field !

 List questions as much as possible relevant to your

preparation!
 Your list of questions will be evaluated based on the
creativeness and the relevancies
 15 minutes from now
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 Problem Statement - Economics

 Drilling a well is a process to make an asset. Asset is something that

generate a cash flow  A well will generate the cash flow.
 We need to increase the profitability by both increase revenue and
reduce the cost.

Profit = Revenue – Cost

Maximizing the production

How ? rate
Revenue
Getting as much geological
information as possible

Minimize the drilling risk

Cost
and drilling time & cost
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Problem Statement - Uncertainties

Drilling a new well can

cost 3 to 15 Million USD 
high uncertainty
Well Construction
This uncertainty
represents one of the
highest risks for the
geothermal industry

We need to reduce uncertainties …

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 Decision Making Process

Earth
Drilling Science Reservoir Facility Other

Multidisciplinary Approach

Coordination and
Communication

Integrated Information

Decision Making Process

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 Solution..

JDS Drilling Project Management

Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Identify & Execute

Generate Detail
Assess Drilling Evaluate
Alternatives Engineering
Opportunity Operation

Project Management Tool will aid to foster better planning and

collaboration to maximize project economics and reduce uncertainties

This methodology streamlines and standardizes the well construction

process and is able to resolve conflicts that may develop among the team
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 Topic Outline

 Reason Project Management is Important for Well

Construction

 JDS Drilling Project Management

• Phase 1 : Define opportunities and objectives
• Phase 2 : Generate alternatives
• Phase 3 : Detail Engineering and Risk Assessment
• Phase 4 : Drilling Program and Project Execution
• Phase 5 : Evaluation

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 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Phase 1- Identify Opportunities

Example:
Opportunity Statement

 Drill a deep brine steam supply make-up well from the AWI-XX pad that targets the high temperature
western area of the reservoir, between the AWI-XY and AWI-XX pads, to ensure sufficient steam supply
to maintain full generation of 377 MWe through to mid-2017.

Value Drivers

 Expected steam rate (kph), at commercial WHP.

 Use existing surface facility capacity at the AWI-10 pad.
 Well economics (NPV; DPI; ROR; and VC).
Vision of Success

Incident- and injury-free operations (IIFO)

Meet project economic of DPI >1.3.
Initial expected steam deliverability of ~300 kph of low NCG (<2.0 wt%) steam.
Complete the well within AFE days and budget.
Flow test the well after being fully heat up (3 months after completion)
Meet POP date of 01 January, 2016.
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 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Phase 2 – Generate and Select Alternatives

Phase 2

1 2 3
Alternatives
VBWO UMP Analysis
Earth
Facility Science

Objectives

Reservoir Drilling

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 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Value Based Well Objective

 We need to have clear objectives first before generating

alternatives. For a well, we call it Value Based Well Objective
(VBWO).
 An objective have to be SMART :

Specific Measurable Achievable Reasonable Timely

 Example of SMART objective

“ I want to loss my weight from 73 kg to 68 kg before 1st of August

2020, two weeks before my 10k run competition”

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 Group Exercise #2

o As the representative of your department (GEOSCIENCE,

RESERVOIR, DRILLING, FACILITY), please draft your
department objective related with the opportunity stated.
o Draw a table below on your paper and list minimum three
objectives.
o Each department reps may gather with their colleagues to
have a discussion.
o 15 minutes from now.
Item Objective (Characteristic) S M A R T Priority Measure Implications

1 ü ü ü ü ü

2 ü ü ü ü ü

3 ü ü ü ü ü

4 ü ü ü ü ü

5 ü ü ü ü ü

6 ü ü ü ü ü 14
 Group Exercise #3

o Re-group with your original team. Based on the each

department VBWO, combined it to be the “Project
Objectives”.
o Draw a table below on your paper and list minimum 5
objectives.
o There may be a conflicting objectives between departments.
o 15 minutes.
Item Objective (Characteristic) S M A R T Priority Measure Implications

1 ü ü ü ü ü

2 ü ü ü ü ü

3 ü ü ü ü ü

4 ü ü ü ü ü

5 ü ü ü ü ü

6 ü ü ü ü ü 15
 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Alternatives Creation and Analysis

Phase 2

1 2 3
Alternatives
VBWO UMP
Analysis
Earth
Facility Science

Objectives

Reservoir Drilling

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 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Alternatives Creation and Analysis

Alternative #1 Alternative #2 Alternative #3

Reservoir Drilling Facility Earth Science

• Project Economics • Drilling Budget and • Pad readiness • Geological Targets
(Production, Time • Separator • Expected
interference, • Well Design availability production rate
decline rate) Concept • Pipe arrangement • Subsurface Drilling
• Resource • Collision issue Hazards
Characteristic • Complex well • NCG

Team provides quantitative and qualitative analysis for each alternative

Team provides quantitative and qualitative analysis for each alternative

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 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Selecting Preferred Alternative

The Project Team generate and analyze each alternative, then propose
a Preferred Alternative to Management / Decision Maker Team.
Capex Initial
MD TD.
Alternative Direction Incl.
(ft.) (elev. ft.sl)
DPI (MM Steam Remarks
USD) Rate (kph)
• Low risk 2D well.
1 SSW 54° 5,800 -528 1.81 5.69 210 • High initial steam rate.
Preferred Alternative • Deep brine well.
• 3D alternative.
2 SSW 55° 5,900 -558 1.75 5.69 190 • Higher drilling risk.
• Deep brine well.

• Low risk 2D well

3 SSE 52° 5,500 -363 1.47 5.59 142
• Shallow steam cap.

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 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Phase 2 – Generate and Select Alternatives

Phase 2

1 2 3
Alternatives
VBWO UMP Analysis
Earth
Facility Science

Objectives

Preferred Alternative
Reservoir Drilling

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 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Phase 3- Detailed Engineering

Subsurface Data Engineering

Basis of Design Well Design
Program
Target Orientation
Fracture and Pore PG
Rock Type and Strength
Troublesome Formations
Directional Tendencies
Drilling Hazards

Drilling
AFE Procedure & Risk
Assessment

Commercial
Drilling Proposal
 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Phase 3- Detailed Engineering

Well Design covers :

• Well Trajectory
Basis of Design • Casing Point Selection
Phase 3 • Wellhead Design
• Casing & Liner Design
Well Design • Cementing Slurry Design

Engineering Program Engineering Program covers :

Drilling Procedure
& Risk Assessment
AFE Budget
Commercial
Drilling Proposal
• Directional Program
• Drilling Fluid Program
• Well Control Equipment
Detail Procedure for :
• Rigging Up
• Drilling
• Running Casing
• Cement Jobs
• Running Liners
• Logging & Coring (if any)
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 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Well Design

Input Process Output

Geology Casing Sizes, Weights

Pressure Profile
Casing Connections, Grades
Faults
Casing Setting Depths

Competent formation Casing Design Casing and Liner/Tieback

Load Cases
Unstable Formations
Special Tools
Drilling Hazards
Running Procedures

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 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Drilling Procedure & Risk Assessment

Subsurface Data Engineering

Basis of Design Well Design
Program
Target Orientation
Fracture and Pore PG
Rock Type and Strength
Troublesome Formations
Directional Tendencies
Drilling Hazards

Drilling
AFE Procedure & Risk
Assessment

Commercial
Drilling Proposal
 Group Exercise #4
Now, your rig and its equipment is ready to :
1. Move from its yard in Banten to Geothermal Field in Bogor.
2. Rig up
3. Drilling
Draw a table below. From each activities above, determine 4 risks
associated. 15 minutes.
Risk ID Risk Consequence Existing Safeguards Likelihood (Low - Cons. Impact (Low- Risk Ranking (Low- Risk-Cons.
Number Description Description in Place Medium - High) Medium-High) Medium-High) Response

1.00-Equipment Mobilization
1.1 Low lying Personnel injury, 1. Journey management Medium Low Medium Accept
electrical lines communit y issue plan
2. Escort vehicle
3. Rig crew had visited
and identified t he risk
on pad 10 and t he road
t o pad 10

...
2.00-Rig Up
2.1
...
3.00-Drilling 26" Hole Section
3.1
... 24
 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Drilling Procedure & Risk Assessment

Subsurface Data Engineering

Basis of Design Well Design
Program
Target Orientation
Fracture and Pore PG
Rock Type and Strength
Troublesome Formations
Directional Tendencies
Drilling Hazards

Drilling
AFE Procedure & Risk
Assessment

Commercial
Drilling Proposal
 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Phase 4 - Execute Well Operations

Pre-spud Meeting
(Project Execution Kick-Off)
Earth
Science • D&C Management, DSM, Project Team, BP’s

Monitoring and Engagement During Drilling

Process
Drilling
• Daily Drilling Activity Report - DSM
• Daily Geological Morning Report - WSG
• Daily Drilling Morning Meetings - Project Team, Drill
Supt, D&C Management, BP’s.

Reservoir
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 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

1
Casing depth for 13-3/8” production casing (at Top of Reservoir)

Avoid risk of
Set as close as accidentally
possible to the setting
predicted TOR production
to avoid cold casing inside the
Earth water influx reservoir
Key Issues Science Drilling section.

2
TD of the well

Reach the
planned TD or
deeper to gain Drilling deeper
more means more risk
information or exposure
Earth potential
Drilling
Science production

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 Question

There are a lot of interest from many department involved

during drilling. Who will be in charge to determine on what to
be done on the field :
A. Geoscience Team
B. Reservoir Team
C. Drilling Team
D. Facility Team

VERY IMPORTANT!
VERY IMPORTANT!
The Single
The Single Point
Point of
of Contact
Contact between
between the the drilling
drilling operations
operations // rig rig and
and the
the
Project Team
Project Team is
is the
the Phase
Phase 44 Team
Team Leader
Leader -- Drilling
Drilling Engineer.
Engineer. ALL ALL
communication between
communication between the
the Project
Project Team
Team and
and D&CD&C // rig
rig is
is through
through the
the
Project Team
Project Team Drilling
Drilling Engineer,
Engineer, to
to the
the Drilling
Drilling Superintendent,
Superintendent, who who isis
the only
the only person
person who
who communicates
communicates directly
directly to
to the
the DSM/company
DSM/company man! man!

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 Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Phase 5- Review and Lookback

Final QC of Drilling, Geologic, and

other Well Data
Phase 5

Capture Lessons Learned and

Process Improvement

Review End of Well Report from each

Service Company

Compare Planned Objectives vs

Actual Performance

Perform Drilling & Geological Static

Lookback

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Phase 1 Phase 2 Phase 3 Phase 4 Phase 5

Phase 5- Review and Lookback

Lesson Learned are captured for future
IMPROVEMENTS

Phase
1

Phase Phase
5 2

Phase Phase
4 3
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Thank You

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