Drilling Management International - Projects

DMI began managing projects in 1999 for a single client, expanding to more projects in 2001 and 2002 for multiple clients. DMI has managed projects or provided engineering or operations support for 20 operators over the last 10+ years. Since 2002, DMI has managed 3 to 5 projects on an annual basis using the select team of about 30 personnel. The projects have included long term development programs and shorter term exploration programs. DMI strives to deliver projects below budget and ahead of schedule, and has been very successful as shown in the Performance Section.

Development projects managed by DMI include:

• Zhao Dong for Apache China from 2002 through 2006, and subsequently for Roc Bohai after their purchase of the field in 2006 through present (this project has a world leader for development drilling and completion performance for 9 years)
  
  
• The shallow water development and exploration programs for Murphy Malaysia from 2001 to 2006 (Set all the performance standards for jackup and shallow water floater operations in Malaysia)
  
  
• The successful 6 well development for Green Field International in Thailand during 2007 and 2008 (many firsts for the Gulf of Thailand, but most important, the productivity of the wells exceeded expectations)

Exploration projects managed by DMI include:

• Various programs for Forest Oil in South Africa, Thailand and Switzerland during 1999 to 2001
  
  
• Floater programs for Repsol in Egypt and Malaysia during 2001 to 2003
  
  
• A land rig program for Occidental Yemen in 2005
  
  
• A floater program for Daewoo in Myanmar in 2006

Several clients have utilized DMI on multiple projects in multiple countries, such as Apache in China and Australia, Green Field in Thailand and Indonesia, and Roc Oil in North China, South China, Angola, and Australia. DMI has also conducted various management studies, typically for the CEO of the client operating company, who is seeking independent advice on methods and techniques to improve operational results.

Project details:

Please read below for specific details of the major projects managed by DMI, most importantly the ability of the DMI team to deliver results that exceeded the original objectives.

Murphy Malaysia

Offshore Malaysia (2004 – 2006)

Scope and Strategy:

- Various projects in Peninsular Malaysia and Sarawak
- Provide the drilling team for shallow water jackup and floater drilling operations
- Provide project management, engineering support, rig supervision, drilling fluids supervision, and logistics support personnel for a 2 rig program.

Key Objectives:

- Design well/test plans for HTHP wells offshore Peninsular of Malaysia
- Establish base of operations on PM
- Reduce well cost

Key Outcomes:

Peninsular Malaysia
- Successfully drilled and tested several HTHP wells offshore Peninsular of Malaysia
- Mud weights in excess of 17.8ppg and well temperatures in excess of 350 F were dealt with on these wells.
- Well (casing) designs were optimized after first wells and cost were reduced by eliminating casing strings.

Sarawak
- Utilized casing drilling on JU and semi to reduce cost and manage risk of shallow gas hazards.
- Also utilized Dynamic Kill Drilling (DKD) drilling surface and intermediate holes to minimize shallow gas hazards.

Drilling performance recognized as most efficient in Malaysia
  

Team:

- Project Manager, one Drilling Engineer, four rotational rig supervision, two drilling fluids supervision, and logistics support personnel

Murphy Malaysia

West Patricia, Offshore Sarawak, Malaysia (2001 - 2004)

Scope and Strategy:

1st Phase
- 7 man project team for  development/exploration planning
and operation of the West Patricia Field
- Prepare plans, conceptual drilling/completion design, prepare contracts for required services, rig selection, supervise all drilling and completion related activities plus jacket installation with JU rig.

Key Objectives:

1st phase
- 9 wells at a budget of US$24 million were projected for the first phase plus an additional US$2.5million for jacket installation.
- WP was the smallest field development offshore Malaysia, and therefore required cost effective facilities and wells
- Optimize completion design to deliver a skin factor between 0-1 for oil producers
- Minimize slick-line intervention, due to high angle wells.
- Maximize the number of wells per platform 
- Utilize ESS technology for sand control

2nd Phase
- Drill an additional 25 wells including installation of two additional jackets.
- Deliver skin factor 0-1 for producing wells.
- increase drilling/completion efficiency compared to Phase 1

Key Outcomes:

1st Phase
- Project was under budget (-7%) even though the scope of the project was increased during the drilling program.
- Due to the success of the appraisal drilling both in terms of reduced well costs and increased reserves, 25 additional wells were drilled in 2004.
-  First successful use of triple well-heads inside platform legs.
-  ESS completed wells were successful with <1 skin factor
-  Slick-line operations was not required for completion purposes.
- Casing drilling was used to reduce time and minimize risk of shallow gas in exploration appraisal wells.

2nd Phase
- The wells were drilled and completed 10% under budget.
- Successfully ran casing and ESS in tandem (one trip) saving 3 days of rig time on several oil completions, resulting in increased production.
- Wells delivered with skin factor < 1

Other outcomes:

1st Phase
-  % NPT was less than 7%
-  No LTA

2nd Phase
- Set many drilling records and benchmarks for Malaysia
- %NPT was less than 3%
- No LTA

This DMI managed project was ranked number one in the world for drilling performance (Rushmore project data).

First marginal field ever drilled and completed in Malaysia in record time.

Team:

- Project Manager, one Drilling Engineer, four rotational Rig Supervisors, and two Drilling Fluids Supervisors.

Apache China

Zhao Dong Development, Bohai Bay, China (2003 - 2006)

Scope and Strategy:

- Drilling Project Management over a 4 year development with breaks for winter seasons
- Prepare plans, contract/manage all services; supervise all drilling/completions
-10 man team - project management, engineering support staff, rig and drilling rig supervision, drilling fluids supervision

Key objectives:

1st Phase – 2003
US$54 million for the initial development of 25 wells within 15 months, including multi zone frac pack completions and horizontal wells that are expected to deliver over 2000 BOPD/well.

2nd Phase - 2004
Budgeted to drill and complete 10 new wells focused on medium reach horizontal wells

3rd Phase - 2005
Drill and complete 11 new wells and 8 Re-drill wells focused on complex directional geometry and including extended reach wells into new reservoirs.

4th Phase - 2006
Develop an additional unexplored fault block and exploit reserves not previously developed.

Key Outcomes:

1st Phase – 2003
Delivered a 25 well program in less than 10 months and $10 million under the revised scope of work.  Well deliver ability exceeded targets.  Set numerous records for drilling performance offshore China including the world record for 13.3/8” Drilling with Casing.  First use of single trip multi zone frac pack completions in the world.

2nd Phase - 2004
Delivered 14 wells within the original budget of $30 million for 10 wells, adding 15,000 BOPD in new deliver ability.  Achieved a 34% time performance improvement over the excellent results already achieved in the 2003 program.

3rd Phase - 2005
Achieved the highest performance again relative to all offshore operations in China and throughout Apache Corp.  The extended reach wells were drilled to 4 km from the platform at a ratio of about 3:1 relative to TVD, and the producer well achieved over 8000 BOPD deliver ability.

4th Phase - 2006
10 new wells including slot recovery wells delivered over 20,000 BOPD in new production with 29 zones completed within these 10 wells.  Initiated the detailed planning for a 50 slot extension of the existing platform and 3 each 16 slot platforms to be installed in 2008.

Team:

- Drilling Manager, Drilling Superintendent / Engineer, Lead Drilling Supervisors, Drilling Fluids Specialist and Relief Supervisors

Roc Oil Bohai

Zhao Dong Development, Bohai Bay, China (2006 – 2010)

Scope and Strategy:

- Provide complete drilling and completion team to continue the project after the asset sale from Apache to Roc Oil.
- Prepare plans, contract/manage all services, supervise drilling, completion, and workover operations.
- Team expanded to 18 people as a second platform and drilling unit were required for additional field development.

Key Objectives:

- A primary reason the asset was so attractive to Roc Oil was due to low drilling costs with high production performance.
- Maintain the high performance standards as service, material, and other costs were increasing.
- Utilize new techniques and practices to increase performance.
- Manage USD50-100 million annual drilling and workover budget.

Key Outcomes:

- A detailed summary of performance and results can be accessed by clicking on this link.
- Continuous improvement was achieved along with fulfilling well objectives.

Team:

To manage a continuous 2 rig program and provide management as the drilling contractor:
Project Manager, 2 Drilling Engineers, 2 Completion Specialists, 1 Rig Construction Superintendent, 8 Drilling Supervisors, 4 Fluids Specialists

Green Field International / Salamander Energy

Bualuang Oil Development Gulf of Thailand (2007 - 2008)

Scope and Strategy:

- Drilling Project Manager, Drilling/Completion Engineer, 4 rotational Drilling Supervisors, 2 rotational Fluid Supervisors, and Logistic Coordinator for the development program.
- Provide the drilling and completion programs, establish logistics base in Sattihip, Thailand, contract preparation and material acquisition, and provide operational expertise to drill and complete the wells.

Key Objectives:

- Five oil producers and one water injector drilled and completed for US$ 38 million.
- Minimize cost, number of people on the team, minimize environmental impact to the region
- Completion design utilizing ESPs and sand control. Minimal information regarding producing sand other than high permeability intervals

Key Outcomes:

- Six wells were drilled and completed and turned over to production in 58 days from spud to rig release.
- Utilized slim hole design to minimize cost and environmental impact. - Project was completed 10% under AFE budget.
- First ESP completed wells to be gravel packed utilizing a solids free oil base carrying fluid in SE Asia.
- Entire drilling/completion project management was completed in 15 months.

Team:

- Project manager, drilling engineering, rotational offshore drilling supervisors, fluids specialist, and logistics coordinator.

Apache Australia

Northwest Shelf and Gippsland Basin, Australia (2006 – 2010)

Scope and Strategy:

- Drilling Superintendent and Offshore Drilling Supervisors for a multi-rig program on the Northwest Shelf and Bass Strait.
- Apache generally operates 3-4 rigs and drills more than half of all offshore wells in Australia using aggressive drilling techniques for high performance. Apache downsized to one rig during late 2009 into 2010.

Key Objectives:

- Exploration drilling utilizing floaters and jackups.
- Utilize aggressive drilling techniques to achieve highest standard of performance while maintaining safe and effective operations.
- Achieve well objective within an aggressive budget structure.

Key Outcomes:

- Provided one team of supervisors for the Van Gogh field development of drilling 13 bi-lateral wells with subsea completions. This team drilled in excess of 50 km of hole and ran over 30 km of sand screens.
- Provided majority of supervisors for the Ensco 106 jackup that sets the highest performance standards for operations on the Northwest Shelf.
- Provided the complete team of supervisors for a exploration program in the Gippsland Basin / Bass Strait. (set the standard for best ever performance in the area)

Team:

- Project Manager (Drilling Superintendent) and seven drilling supervisors

OXY

Yemen (2005)

Scope and Strategy:

- Provide drilling project management, engineering, and 4 rotational
drilling supervisors
- Exploration/development/appraisal program.

Key Objectives:

- Provide conceptual drilling plans and the operational expertise, procurement, and logistic expertise to drill and test the wells.
- Multiple wells involving abnormal pressure to 2800m to be planned, drilled, and completed

Key Outcomes:

- 20% under Oxy’s original budget.

Team:

- Project Manager, Completion and Testing Engineer, and Rotational Drilling Supervisors to complement the Oxy team of supervisors.

Daewoo

Offshore Myanmar (2006)

Scope and Strategy:

- Project was inherited mid stream.
- Provide drilling project management, engineering, and 6 rotational
drilling supervisors, testing engineer, and logistic personnel
- Exploration and appraisal project using two semi-submersible rigs

Key Objectives:

- End of project troubleshooting including solving drilling, engineering, and logistic problems encountered upon arrival
- Conclude the existing exploration program so that a new program could be started

Key Outcomes:

- Six exploration and appraisal wells were redesigned and drilled under difficult operating and logistic conditions.
- Continued to provide project management until the end of the exploration program.
- Continued to provide a transition team to allow Daewoo time to hire a new team.

Team:

- Project Manager, Rig Supervisors, the testing engineering, and some of the logistic support personnel

Forest Oil

Ihbubasi Block 2A, South Africa (2000 – 2001, 2003 - 2004)

Scope and Strategy:

- Drilling project management, 4 rotational drilling supervisors, and 2 rotational fluid supervisors for the exploration appraisal program.
- Provide the conceptual drilling and testing plans, establish logistics base in Cape Town, also establish South Africa office, contract preparation and material acquisition, and provide operational expertise to drill and test the wells.
- Project management for the 1st phase exploration/appraisal campaign
- Drilling Supervisors for the 2nd phase appraisal program

Key Objectives:

1st phase (2000-2001)
- Four exploration wells drilled and tested for US$35.7 million, 10% under AFE
- Minimize cost, number of people on the team, minimize environmental impact to the region
2nd phase (2003-2004)
- Six appraisal wells at a cost of US$30 million.
- Provide rig supervisors experienced in South Africa and floating drilling operations.

Key Outcomes:

1st phase
- 2001 campaign established the lowest cost exploration operations in South Africa. 
- Utilized smaller hole design to minimize cost and environmental impact.
- Eliminated one casing string that was normally used in offset wells.
- Essentially delivered the project at minimal cost with minimum personnel, and accident free.

2nd phase
- Wells were drilled approximately 7 days faster with recommended design changes learned from 1st phase

Other outcomes:

- Well designs and plans were improved based on the lessons learned from the 1st phase resulting in an additional casing string eliminated from well design.

Team:

1st phase
- Project manager, rotational offshore Drilling Supervisors, and Fluids Specialist.

2nd phase
- Four rotating Rig Supervisors.

Forest Oil

Thailand and Switzerland (2000)

Scope and Strategy:

Thailand
- Drilling project management, 1 drilling supervisors for land operation.
- Provide the conceptual drilling plan, establish office in Bangkok, rig selection, material procurement, contract drilling services, environmental impact study, build location and provide operational expertise to drill one well.

Switzerland
- Drilling project management, two drilling supervisors for land operation
- Provide conceptual drilling plan, rig selection, material procurement, contract services, location design and construction, and environmental impact study.

Key Objectives:

Thailand
- One exploration well at AFE cost of US$ 3.5 million
- Minimize cost by utilizing air drilling, minimum drilling team, minimize environmental impact to the region

Switzerland
- One exploration well at a cost of US$4.5 million.
- Minimize environmental impact by using air drilling technology and constructing compact location.
- Use air drilling to help formation evaluation in tight sands.

Key Outcomes:

Thailand
- Fastest well drilled in region, utilizing air drilling techniques to within   100m of TD. 
- Utilized smaller hole design to minimize cost and environmental impact.
- delivered the project 15% under budget, accident free, minimum drilling team members.

Switzerland
- Successfully air drilled entire well which minimized environmental impact and helped in the evaluation of prospect tite as sands. Well was drilled 15% under budget. 
 

Team:

Thailand
- Project Manager, one Drilling Supervisor

Switzerland
- Project Manager, two Drilling Supervisors.