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| THE OFFICIAL 2018 OFFSHORE TECHNOLOGY CONFERENCE NEWSPAPER | DAY 1

Nifty at Fifty n OTC’s chairman sees adaptability and experience as industry’s greatest

enablers of future successes. BY JENNIFER PRESLEY

Ibert Thomas Convention Center opened for the first

t was May 19, 1969, when the doors to Houston’s Al-

Offshore Technology Conference (OTC). Founded by 12 engineering and scientific organizations, the event was in response to the growing need for a forum where ocean industry professionals could discuss the development and application of new technologies in support of the burgeoning global offshore energy industry. The significance of that event, much like the industry it represents, grew exponentially. As the gates to OTC 2018 open at Houston’s NRG Park, conference organizers do so with the intent to honor the show’s past with an eye towards its future. “This year marks the 50th edition of OTC and we want attendees to walk away with a sense of the industry’s and of OTC’s legacy, of where we came from, of what we’re doing in the present and where we’re going in the future,” said OTC Chairman Wafik Beydoun. In its 50 years, OTC has grown from one conference to four with Wafik Beydoun

the addition of the Arctic Technology Conference, OTC Asia and OTC Brasil. With an attendance exceeding more than 50,000 for more than a decade, the world’s largest offshore event attracted its largest crowd in 2014 with 108,300 visitors from more than 130 countries calling Houston home for the first week of May. To help put the industry’s legacy in perspective it is best to think not in terms of years, but in Empire State buildings. “Fifty years ago offshore E&P dealt with water depths that were neighboring 300 feet. That is about a quarter of the Empire State Building,” Beydoun said. “Today, offshore E&P operations deal with water depths close to 10,000 feet. That’s about seven Empire State buildings stacked on top of each other.” It is, he added, a clear demonstration of how technology innovations have made it possible for the industry to seek and produce new resources deeper and farther away from the coast. “In boldly going where no one has gone before, we really went far,” he said. “We have learned that these See FIFTY continued on page 26

Updates, Digitalization Highlight Technical Program n Sessions to focus on cost-saving tools and techniques. BY BRIAN WALZEL

Aplays of the industry’s lat-

long with the dazzling dis-

est cutting-edge innovations in the exhibit halls and the special event networking, the depth and breadth of the Offshore Technology Conference (OTC) lies in its technical program. Dave Barton The program’s focus has changed with the industry times, and the 2018 version is no different. The development of industry-wide digitalization and cost-saving tools and techniques have emerged as a focus this year as the offshore

industry moves into a new era, said Dave Barton, OTC program committee chairperson. “We always talk about themes we want to include in the program, and this year we talked about cost awareness,” Barton said. “The industry is improving, but getting a handle on the cost of projects is still a big deal, and so we hope to show how some of the emerging technologies are going to be able to help reduce costs and improve overall value.” To that end, a session scheduled for 9:30 a.m. Monday titled “How to Make Offshore Oil and Gas Projects Feasible in a USD 45-50 per Barrel Environment” will See TECH continued on page 26

New Day, New Way

n Knowledge sharing is 'one giant leap' for offshore oil and gas in 2018. BY JENNIFER PRESLEY

Pshore Technology Conference kicked off in erhaps it is coincidence that the first ever Off-

1969, the same year that NASA’s Apollo 11 astronauts Neil Armstrong and Buzz Aldrin made history as the first humans to land on the moon. But then again, maybe it’s not as getting to 11 didn’t happen overnight. It required hours, days, weeks, months and years of dedicated R&D for the two to take that historic stroll along the lunar surface. The distance from Earth to the moon is about 384,400 km (238,855 miles) or as NASA puts it, “it means 30 Earth-sized planets could fit between Earth and the moon.” Calculating, configuring and constructing the means of travelling that great of distance required significant brainpower. Lost in the minutia of history are the countless conversations between scientists, engineers, technicians, clerks and more that made space travel possible through the sharing and disseminating of knowledge. It was in the spirit of sharing and disseminating knowledge that the first OTC opened its doors to the more than 4,000 attendees on May 19, 1969. That spirit has advanced offshore E&P as it moves further from shore and into ever deeper waters. That spirit has buoyed up offshore E&P in those times when the global markets violently pitch to and fro due to the law of supply and demand kicking up a hurricane. In good times and in bad, the annual OTC has remained steadfast in its mission to provide energy professionals a venue to meet for the exchange of ideas and opinions necessary to advance scientific and technical knowledge for offshore resources and environmental matters. Offshore E&P operators, service companies and vendors embraced the lessons shared and the technology strategies demonstrated in previous OTCs to not just survive but emerge transformed from the rubble of 2014’s great storm of a market crash. Industry has entered 2018 with a big jump in the number of project sanctions in 2017 but also a big drop in average project size and capex, according to a recent Wood Mackenzie analysis. Cost reduction efforts have been successful as project footprints have been reduced through fewer wells, See NEW DAY continued on page 26

SCHEDULE OF EVENTS

E&P Editors Group Managing Editor, Print Media Jo Ann Davy Executive Editor Jennifer Presley Chief Technical Director, Upstream Richard Mason Associate Editor, Production Brian Walzel Associate Managing Editor Ariana Hurtado Assistant Editor Alexa West Group Managing Editor, Digital News Group Len Vermillion Senior Editor, Digital News Group Velda Addison

All events in conjunction with OTC 2018 will be held at NRG Park in Houston, Texas, unless noted otherwise.

Monday, April 30 7 a.m. to 5 p.m.......................................... Registration 7:30 a.m. to 9 a.m..................................... Topical Breakfasts 9 a.m. to 5 p.m.......................................... University R&D Showcase 9 a.m. to 5:30 p.m..................................... Exhibition 9:30 a.m. to 12 p.m................................... Technical Sessions 9:30 a.m. to 11:30 a.m............................... OTC 50th Opening Ceremony in NRG Stadium 11:30 a.m................................................. Official Ribbon Pulling Ceremony 12:15 p.m. to 1:45 p.m.............................. Topical Luncheons 12:15 p.m. to 1:45 p.m.............................. OTC 50th Legacy Luncheon 2 p.m. to 5 p.m.......................................... Rice Alliance Startup Roundup 2 p.m. to 4:30 p.m..................................... Technical Sessions 2:30 p.m. to 5 p.m..................................... Chairman’s Panel on Energy Transformation 4 p.m. to 5 p.m.......................................... Spotlight on New Technology Presentation 4 p.m. to 6 p.m.......................................... Networking Event 5:30 p.m. to 8 p.m..................................... OTC 50th Celebration­—Party on the Parkway

Contributing Editors Leslie Cook Imran Khan Randall Luthi Jennifer Pallanich Michelle Thompson Peter Zornio Corporate Art Director Alexa Sanders Oil and Gas Investor, Art Director Robert D. Avila

Tuesday, May 1 7:30 a.m. to 5 p.m..................................... Registration 7:30 a.m. to 9 a.m..................................... Topical/Industry Breakfasts 9 a.m. to 3:30 p.m..................................... Poster Sessions 9 a.m. to 5 p.m.......................................... University R&D Showcase 9 a.m. to 5:30 p.m..................................... Exhibition 9:30 a.m. to 12 p.m................................... Technical Sessions 12 p.m. to 2 p.m........................................ Distinguished Achievement Awards Luncheon 12:15 p.m. to 1:45 p.m.............................. Topical Luncheons

Senior Graphic Designer

2 p.m. to 4:30 p.m..................................... Technical Sessions

Felicia Hammons

4 p.m. to 6 p.m.......................................... Networking Event

Video Production

7:05 p.m................................................... OTC Night at the Ballpark (at Minute Maid Park)

Genaro Cibrian Jessica Morales Production Manager Sharon Cochran Senior Vice President, Media Russell Laas

HART ENERGY LLLP Vice President, Editorial Director Peggy Williams Chief Financial Officer Christ Arndt Chief Executive Officer

Wednesday, May 2 7:30 a.m. to 5 p.m..................................... Registration 7:30 a.m. to 9 a.m..................................... Topical/Industry/Ethics Breakfasts 8 a.m. to 11 a.m........................................ OTC Energy Challenge High School Event 9 a.m. to 3:30 p.m..................................... Poster Sessions 9 a.m. to 5 p.m.......................................... University R&D Showcase 9 a.m. to 5:30 p.m..................................... Exhibition 9:30 a.m. to 12 p.m................................... Technical Sessions 12 p.m to 6 p.m......................................... The Next Wave Program 12:15 p.m. to 1:45 p.m.............................. Topical Luncheons 12:15 p.m. to 6 p.m................................... WISE Networking Event 2 p.m. to 4:30 p.m..................................... Technical Sessions

Richard A. Eichler The OTC 2018 Daily is produced for OTC 2018. The publication is edited by the staff of Hart Energy. Opinions expressed herein do not necessarily reflect the opinions of Hart Energy or its affiliates.

Thursday, May 3 7:30 a.m. to 2 p.m..................................... Registration 7:30 a.m. to 9 a.m..................................... Topical/Industry Breakfasts 7:30 a.m. to 3 p.m..................................... Energy Education Institute: Teacher Workshop 8:30 a.m. to 1:30 p.m................................ Energy Education Institute: Student 2STEM

Hart Energy 1616 S. Voss, Suite 1000 Houston, Texas 77057 713-260-6400

Event 9 a.m. to 2 p.m.......................................... Exhibition 9 a.m. to 2 p.m.......................................... University R&D Showcase

main fax: 713-840-8585

9:30 a.m. to 12 p.m................................... Technical Sessions

Copyright © May 2018

12:15 p.m. to 1:45 p.m.............................. Topical Luncheons

Hart Energy Publishing LLLP

2 p.m. to 4:30 p.m..................................... Technical Sessions

OTC SHOW DAILY | APRIL 30, 2018 | PREVIEW

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OTC Recognizes Skeels’ Extraordinary Subsea Work n He pioneered record-breaking subsea completions and holds 14 U.S. industry patents.

Distinguished Achievement Awards Luncheon The Distinguished Achievement Awards Luncheon on Tuesday, May 1, will celebrate the accomplishments of the 2018 OTC Distinguished Achievement Award recipients who are featured in the following pages. The luncheon also facilitates fundraising for a worthy cause—this year The Young Women's College Preparatory Academy—and provides an international networking opportunity for attendees.

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BY MICHELLE THOMPSON

Bindustry

rian Skeels is an innovator, pioneer and this year’s recipient of OTC’s Distinguished Achievement Award for Individuals. The award recognizes his extraordinary accomplishments in pioneering new subsea completions in record depths. It also acBrian Skeels knowledges his work developing new tieback connections that have set and redefined industry standards. It’s an award Skeels accepts with humility.

“Being honored like this is quite a treat,” he said. “I have to pinch myself when I see the list of the 47 recipients that have preceded me and all the great work they’ve done throughout the course of their careers. To be mentioned in that same group is a very heavy honor.” Skeels’ impressive resume includes more than 35 years of experience in subsea completion and pipeline design and installation. He spent five years working on Exxon’s famous submerged production system and underwater manifold center, before joining FMC Technologies in late 1984. Skeels is a contributing author to nearly 40 industryrelated technical papers and articles, and he is an innovator who holds 14 U.S. patents for the oil and gas industry. Skeels, TechnipFMC’s Technology Fellow, serves as a technical subsea adviser for HP/HT wells. In addition, he’s a strategic planning specialist for frontier technologies and new business opportunities. This includes deepwater riserless light well intervention, ROV and remote robotics technology, and hydrate remediation programs. His long and impressive track record of being an innovative industry leader was not overlooked by OTC’s 2018 Awards Committee. “Brian is being recognized for both his recent and career-long contributions to the industry,” said Committee Chairman Chuck Richards. “He has had extraordinary accomplishments in pioneering new subsea completions in record water depths and for the development of new tieback connections that have set and redefined industry standards.” Indeed, Skeels pioneered designs in subsea completions that held world record water depths from 1986 through 2010, and he established the first 10K-psi and 15K-psi subsea completions in the Gulf of Mexico. Throughout his decades-long career, Skeels has witnessed the subsea engineering industry undergo a significant transformation through robotics, artificial intelligence and other groundbreaking technologies. But when he was a young lad entering the field, things weren’t so sophisticated. “We were sent offshore and you had your wits and your calculator to work yourself out of a problem,” he said. “You were kind of out there on your own. These days, everything has to be well-documented and well-choreographed before anything happens and rightfully so, because a lot has changed since the beginning.” Today Skeels strives to share his knowledge by teaching at the University of Houston’s Cullen College of Engineering. Skeels also serves as an instructor for both company and invited external company learning programs. He advises industry rookies to read Colin Powell’s “My American Journey” and “The Unwritten Laws of Engineering” by W. J. King and James G. Skakoon. “Those two books would be a great start,” Skeels said. “They go from the academic world to the real world, and what’s going to be expected of them. It’s mostly common sense do's and don’ts that we all too often forget.” Like many other engineers, Skeels loves a good challenge and seeing projects through to completion. “For me, there’s no better challenge than having the ability to be faced with a problem that nobody else has done before,” he said. “I like to tinker and play with the design until it’s ready to rock and roll. Getting out in the field and seeing it work is the greatest satisfaction. There’s nothing better—any engineer worth his salt will tell you that.” n PREVIEW | APRIL 30, 2018 | OTC SHOW DAILY

Del Vecchio Recognized for Mooring System Breakthroughs n Award-winner made vital contributions to the safe and economic development of deepwater floating systems. BY MICHELLE THOMPSON

Aindustry experience is the recipient of this year’s

n engineer with nearly 40 years of widely recognized

OTC Heritage Award. Cesar Del Vecchio–an expert in the integrity management of mooring systems–is being recognized for developing safe and economic deepwater mooring systems. “It was a big honor to receive this award,” said Del Vecchio, who is originally from Brazil. “And it is even more important that people working outside the U.S. get considered and receive such a distinction. I also consider it as recognition of the company that I worked

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in, Petrobras–it’s more than a personal recognition.” The Heritage Award is granted by the OTC Awards Committee to recognize long-term, continuous distinguished service by an industry professional. The recognition is given in the following areas of offshore technology: Cesar Del Vecchio exploration, development and production, management and leadership, safety and environmental stewardship, and research and development.

This year’s recipient earned the award with good reason, said OTC 2018 Awards Committee Chairman Chuck Richards. “Cesar Del Vecchio made substantial contributions to the safe and economic development of deepwater floating systems by establishing, proving and gaining worldwide acceptance for the use of polyester mooring systems,” Richards said. “His initial research in replacing all steel catenary systems with synthetic taut moorings is considered a breakthrough for floating production system technology by extending the range of moored floaters into deep and ultradeep water, while reducing seabed footprint.” Del Vecchio’s full-life-cycle approach to design systems impressed Richards. “Some of these systems have now been in service for more than 20 years,” he said. “He continues to use his widely recognized experience with the integrity management of mooring systems for a variety of clients.” Polyester mooring systems replaced all steel systems in most production units installed in water depths greater than 600 m (1,968 ft) and basically all systems installed in more than 1,000 m (3,280 ft) of water. “As we moved into deeper water, we realized the weight of the mooring system would be too big and it would be too much for the floaters with little efficiency,” Del Vecchio explained. “Also, the amount of mooring system that would be lying on the seabed would be a big problem for the wellheads, flowlines and everything else we would want to put on the seabed.” The polyester mooring systems were the culmination of about 10 years of hard work by Del Vecchio and his colleagues. When he started working on the project in 1986, there were just a few others assigned to the project. But by the time the first full polyester mooring system was installed in 1997, the team had swelled to approximately 40 people and was spread across several groups within the company. “It was basically 10 years of investment,” Del Vecchio said. “I think one of the biggest rewards for someone working in R&D is when you work for a long time on something and it gets used… It took an effort but we got everybody on board and management support was key to make such a big change.” Today, Del Vecchio works as a senior consultant at Stress Engineering Services. He consults on mooring systems, fiber ropes, mooring materials, fatigue and structural integrity assessment. He previously worked as a senior consultant for Petrobras. Ingenuity has been the driving force behind many of his accomplishments. “It’s being able to develop things, understand how things work, make changes and keep things working,” he said. “All those things motivate a professional engineer. Keeping things operating safely and profitably is a big challenge, and is very rewarding.” He is a graduate of the Instituto Militar de Engenharia, where he received a Bachelor of Science degree in mechanical engineering. He holds a Ph.D. in engineering from the University of Reading. As the next batch of graduates prepares to enter the engineering field, Del Vecchio offers some advice on how they can find success. “Keep a good balance between what you’ve studied and what you can learn from experience and experienced people,” he said. “Follow the things you’re happy to work with.” n PREVIEW | APRIL 30, 2018 | OTC SHOW DAILY

Shell, SBM Snag OTC Distinguished Achievement Award for Stones n World’s deepest field began producing three years after FID. BY JENNIFER PALLANICH

Bline required innovation and new technologies.

ringing the world’s deepest oil and gas project on-

Shell’s Stones Field, which is in 9,500 ft water depth in the Gulf of Mexico, produces to the Turritella FPSO. “The water depth that we’re working in is an extraordinary achievement. This is an industry that first moved offshore probably only really 40 years ago, so in just a few decades we’ve gone from literally putting our toes into the water to producing from 10,000 feet of water depth,” said Ian Silk, Shell’s vice president for deepwater projects at the time Stones went online and

current vice president of COG projects. “It’s totally amazing.” Shell and SBM Offshore are receiving this year’s OTC Distinguished Achievement Award for Companies, Organizations and Institutions for the project, which uses an industry-first pairing of a steel lazy wave riser system with the largest disconnectable buoy turret mooring system, and an artificial lift system designed for 15,000 psi. “The decision to select the Shell Stones project was based primarily on its innovative use of a steel lazy wave riser system with a large disconnectable buoy turret mooring system,” said OTC 2018 Awards Committee

The Turritella FPSO is producing Shell’s Stones Field in 9,500 ft water depth. First oil was 2016. (Image courtesy of SBM Offshore)

Chairman Chuck Richards. “This allows the FPSO to sail to safety in the event of extreme weather. Additionally, the exemplary safety record of successfully installing and operating in 9,500 foot water depth is in itself a laudable achievement.” The steel lazy wave riser, pioneered by Shell, carries oil and gas from the well to the FPSO. Steel lazy wave risers have an arched bend in the pipes between the seafloor and the surface to decouple the motion of the FPSO, which improves riser performance while boosting production levels at extreme depths. A key feature of the Turritella FPSO is the disconnectable buoy turret mooring system. “Most of the time FPSOs transit to site, take off their rudder, take off their propeller, they don’t need it anymore. Not us. What we need to do is we need to be able to disconnect and travel around to get away from hurricanes,” said Blake Moore, Shell’s former Stones FPSO manager. The turret and buoy design allows the vessel to turn with the wind during normal weather conditions, but if a heavy storm or hurricane approaches, the vessel can disconnect from the buoy and sail to safer waters. “There was a lot of innovation in the turret configuration. It was a major engineering exercise to fully develop the design,” says Andrew Newport, SBM Offshore’s technology director for mooring systems, risers and renewables. Shell discovered the Stones Field in 2005, sanctioned the project in 2013 and reached first oil in 2016. In January 2018, Shell took over full operatorship of the Stones FPSO from SBM Offshore. On announcing the project’s sanction, Shell said Stones contained more than an estimated 2 Bboe of oil in place. The Lower Paleogene reservoir is about 26,500 ft below sea level, and17,000 ft below the mud line. Annual peak production is 50,000 boe/d from more than 250 MMboe of recoverable resources. A multiphase system to pump oil and gas from the seabed to the FPSO is expected to increase recoverable volumes and production rates. Shell said the project demonstrates its commitment to realizing significant cost savings through innovation. The Stones well design requires fewer materials and lowers installation costs. Shell estimates the change will reduce well costs by up to $1 billion once all the producers are completed. n 8

PREVIEW | APRIL 30, 2018 | OTC SHOW DAILY

OTC Honors Sifferman’s Long-time Service n He’s being recognized for outstanding work in the offshore field. BY MICHELLE THOMPSON

Tmore than 45 years of experience working in the petro-

om Sifferman is a licensed professional engineer with

leum industry. Throughout his career, Sifferman has made significant contributions to the field for which he is being celebrated by OTC this year with a special citation. OTC’s special citation award recognizes individuals or organizations in the offshore technology field. Sifferman is being honored for his work in the advancement of production enhancement, complex rheology mitigation and chemical flow assurance of difficult-to-handle reservoir fluids. But if you ask him, his accomplishments were a team effort.

“It was really an award I got not because of me but because I worked with other people,” Sifferman said. “I worked on different projects with different people in different areas all the time.” Though Sifferman is humble about his accomplishments, others Tom Sifferman aren’t so modest when it comes to praising his work. Chuck Richards, chair of OTC’s 2018 awards committee, said Sifferman has blazed an impressive trail for the next wave of engineers to follow. “Dr. Sifferman’s lifetime of service to the offshore industry and his profession is outstanding,” Richards said.

“His personal attributes of carefully listening to others opinions, his excellent leadership style and his willingness to share information through venues such as OTC should be a model for the next generation of engineers.” Sifferman has accomplished a lot since receiving his Ph.D. in engineering from Purdue University in 1970. He has held numerous responsibilities in drilling, completions and production. He is a Society of Petroleum Engineers Distinguished Member and a fellow with the American Society of Mechanical Engineers. He holds 17 issued U.S. patents and has served as chair and organizer of flow assurance sessions for OTC since 2006. In addition, Sifferman has authored 30 professional publications, including 11 on drilling, four on formation damage and three on the rheology of waxy crude oils. Other topics have included drag reduction, multiphase flow, flares and hydrate inhibition. He also has written about heavy crudes, fracture fluid rheology, flow measurements, noise prediction as well as rock properties. “In my career I’ve enjoyed doing new and different things because I learn new things,” Sifferman said. “It’s said that persistence is more important than brilliance. You need to stick with something to do it. Even if it seems impossible, you should still try. I’m not the most brilliant person in the world, but I have a lot of perseverance.” Sifferman developed an interest in engineering as a child. He used to love tinkering with electronics in the family basement, and he once even removed the wheels from his sister’s roller skates and used them to make a race car. Though he started off as an electrical engineer, Sifferman soon switched over to mechanical engineering. Today he’s a consultant and fluids specialist with ETTP Consulting, focusing primarily on production. He also has helped the Department of Energy’s National Energy Technology Laboratory with information on drilling fluid testing procedures, equipment and safety issues. Sifferman began his career in 1970 with an 11-year run as a senior research scientist with Conoco. He went on to work for several other energy companies, including Exxon Mobil Corp. The 76-year-old said he has no plans to retire. “Why should I do that?” he said. “I enjoy what I do. It’s my hobby. I tell people to enjoy what they’re doing. Don’t look for the bucks. Look for the fun.” Before earning his Ph.D., Sifferman graduated from Marquette University with a bachelor’s degree in mechanical engineering. He holds a master’s degree in mechanical engineering from Purdue University and has a certificate in entrepreneurial management from San Diego University. Sifferman, who lives in Dallas, is an Eagle Scout with the Boy Scouts of America. n

Celebrate #OTC50 with us! Offshore Technology Conference (OTC) Offshore Technology Conference @OTCHouston @OTCevents 10

PREVIEW | APRIL 30, 2018 | OTC SHOW DAILY

OTC SHOW DAILY | APRIL 30, 2018 | PREVIEW

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Well Construction Performance Service Harnesses Digital Advances n From 24/7 monitoring for downhole hazards to identifying inefficiencies, new service mitigates HSE risks and both ILT and NPT. CONTRIBUTED BY SCHLUMBERGER

I

ncreased reliance on remote monitoring and advances in digital technology have launched a new era for well construction, bridging the gap between planning and execution through better use of data and collaboration. The OptiWell well construction performance service gives operators access to all available surface, downhole and logging information, with multidisciplinary experts providing 24/7 monitoring and analysis of operations, processes and well conditions in real time.

The service identifies inefficiencies and proposes new workflows and procedures that challenge the technical limits of rates of penetration (ROP) and other parameters to increase performance and reduce risk. The OptiWell service is currently deployed for multiple onshore and offshore wells globally. Service centers in Houston and Norway remotely monitor and analyze global operations for multiple disciplines, including drilling, mud logging and geomechanics, providing the ability to apply only those workflows needed for a specific well. The performance management component of the service benchmarks all well construction operations

Real-time continuous well monitoring services enabled Det Norske to improve ROP and reduce issues related to undesirable tripping performance. (Photo courtesy of Schlumberger)

and compares them to industry key performance indicators (KPIs), generating data that can be used to improve the well construction process. By targeting specific KPIs, operators can implement the service for a specific project or general efficiency improvement, focusing on specific areas of operation that are not meeting objectives. Workflows also can be adapted for a single-well exploration campaign or a multirig, multiwell field development project. The service integrates other well monitoring and analysis services to improve hole cleaning, reduce wellbore risk and ensure drillstring integrity. For example, the RigHour multiwell drilling operational efficiency analysis computes and compares drilling-specific KPIs to improve drilling efficiency and reduce costs. The analysis reduces invisible lost time (ILT) time, or the time between actual and technically achievable duration, in making connections, circulating, tripping, cementing, setting casing and running the blowout preventer. The hazard management component further reduces nonproductive time and HSE issues by monitoring and analyzing the downhole environment to detect potential risks to drilling operations, such as severe gains or losses that could cause a kick, stuck pipe or high vibration zones that could compromise borehole and bottomhole assembly (BHA) integrity.

Boosting performance offshore Norway

Norwegian operator Det Norske successfully used the OptiWell service to improve operational efficiency and drilling performance during a casing and completion run in the offshore multiwell Ivar Aasen development field. The project involved performing single-well monitoring focusing on new well construction KPIs. The initial wells were drilled in three sections by a jackup from predrilled top holes. After establishing benchmarks for each KPI, OptiWell provided 24/7 monitoring for about one month, while the Schlumberger well operations analyst notified the operator whenever rig performance deviated from plan. The service was deployed in conjunction with the InterACT global connectivity, collaboration and information service, which displays real-time KPIs. This enabled See ADVANCES continued on page 26

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PREVIEW | APRIL 30, 2018 | OTC SHOW DAILY

Discoveries in Research and Development n Aramco advances meet industry challenges. CONTRIBUTED BY SAUDI ARAMCO

S

audi Aramco sees its commitment to technology and innovation as the engine of growth for the company and the global energy industry. With a worldwide network of research centers, technologies developed by Saudi Aramco’s scientists and engineers are currently deployed or in field trials in Saudi Arabia. Seventy percent of the company’s U.S.-based research focuses on upstream resources. “Business challenges are at the forefront of our scientists’ creative minds,” says Ashraf AlTahni, director of research at Aramco Services Co. (ASC), Saudi Aramco’s U.S. subsidiary. “Their solutions are spurring future Aramco innovation and technology.”

tested at a well in Texas. The sensor ball can acquire a range of downhole data including fluid density, viscosity and fluorescence. Saudi Aramco and ASC representatives will be presenting a variety of research papers during the conference. Topics will include material advances, cost effective chemical solutions for sustainable production and nanotechnology innovations for offshore drilling. Check the OTC Technical Program for specific times and dates.

Looking to the future

Besides investing in new technologies, Saudi Aramco and ASC are focused on the future with collaborative efforts at leading educational and governmental institutions worldwide. Collaborative partners include the

Massachusetts Institute of Technology (MIT); Harvard University; Texas A&M University; the University of Wyoming; the University of California at Berkeley; Argonne National Laboratory; the King Abdullah University of Science and Technology and King Fahd University of Petroleum and Minerals, both in Saudi Arabia; the University of Calgary in Canada; and Heriot-Watt University in the U.K. Saudi Aramco is looking for experienced professionals who are interested in contributing to its world-class operations. Recruiters for positions at both Saudi Aramco and ASC will be on site throughout OTC to accept resumes. Potential job seekers are encouraged to visit aramco.jobs to check out available positions. Visit Saudi Aramco at booth 2627 to learn more. n

Engineer Erjola Buzi of the Aramco Research Center—Houston tests the fourth generation of the untethered sensor ball in the lab. (Photo courtesy of Saudi Aramco)

ASC’s three U.S. research centers– located in Houston, Boston and Detroit–focus on different aspects of the energy industry. The Aramco Research Center–Houston is concerned with research into upstream activities while the Boston center concentrates on nanotechnology and the use of new materials. The Detroit center emphasizes engine and fuel technology.

Focus on discovery, recovery and sustainability

Aramco is developing technology to unlock greater discovery, recovery and use of energy resources. The Houston center’s new discoveries range across a variety of disciplines: Novel emulsifiers for high-temperature oil-based mud applications: In the area of drilling, Aramco research has been instrumental in the creation and development of novel emulsifiers and fluid systems able to function in extreme conditions. Novel seawater-based, high-temperature fracturing fluids: The research team also successfully formulated a novel hightemperature fracturing fluid system using untreated seawater. The technology will help avoid the use of huge amounts of fresh water or treated seawater for fracturing jobs. Coated Saudi sand for gas wells fracturing: Another research milestone was achieved by using Saudi sand as a proppant and optimizing the coating process of the sand using resin. Successful Sensor Ball Well Test: A new tool, called a sensor ball, was developed by researchers and successfully OTC SHOW DAILY | APRIL 30, 2018 | PREVIEW

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It’s About Time n Company focuses on saving operators time with new technologies. CONTRIBUTED BY NATIONAL OILWELL VARCO

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he industry often focuses on how to drill or complete a well in less time, but there is more to it than just that. It is important to step back and look at the overall concept of time. We need to look at how efficient we are in using the time that we have, because one can argue that the amount of time that is wasted on nonproductiveness is equally or even more costly to companies than how fast or slow they can drill or complete a well. National Oilwell Varco (NOV) has been looking at the overall concept of time and has recognized several key things. It’s about time that someone connects surface to downhole. It’s about time that we allow our customers to treat the drilling and production process as a whole system

instead of individual parts. It’s about time that we start pushing for new ways of thinking within our industry. NOV is pushing for this cultural change and working with others to join it. NOVOS is one example of how the company is working with third-party companies to change the way things are normally done. NOVOS is the industry’s only reflexive drilling system, automating repetitive drilling activities, benefiting contractors by allowing drillers to focus on consistent process execution and safety, and benefiting operators by optimizing drilling programs. Third-party companies are given a software development kit that enables them to develop their own applications that can be placed onto the system and tailored for their drilling program. There are also ways to improve efficiency and performance in drilling applications that help overall time. The

It’s time for companies to start pushing for new ways of thinking within the industry. (Photo courtesy of National Oilwell Varco)

Agitator HE is a new high-energy system that provides more efficient energy usage to enable greater friction reduction in long laterals. The use of high-energy axial oscillations to keep the drillstring moving yields high ROP over longer distances, enhances toolface control and reduces stick/slip in all drilling modes. NOV also is launching its SelectShift downhole adjustable motor, which offers downhole adjustment of the motor bend setting while drilling. This motor saves time by eliminating trips to adjust bend settings, offering better hole quality and increasing ROP throughout lateral sections. The company’s Tektonic drillbit has helped customers by providing superior hydraulic designs and cutter technology that boosts efficient uptime. When it comes to drillpipe, NOV’s Delta connection saves time by providing its customers with 50% fewer turns to make up and a 66% reduction in the number of recuts made. The company also has AutoTally, which produces a 100% accurate drillstring tally, alerts for out-of-specification equipment and quarantines assets preventing missed depths, stuckpipe or twist-offs. When it comes to maximizing tubular performance and reducing downtime, proper inspection and maintenance is critical. TracID’s Lifecycle Management program and TruData’s comprehensive reporting management system reduce total cost of ownership and mitigate risk by identifying operational problems, trends and improper care and handling. Identifying these issues is critical to reducing downtime and improving drilling efficiency and performance. When focusing on uptime, NOV has seen how its APL buoys at Heidrun operated for 20 years with 99.8% uptime, which included almost 1,300 connections and 1,300 disconnections. The mitigation of downtime also is key within the industry. Fiber Glass Systems Bondstrand piping, composite pressure vessels and fiberglass-reinforced polymer structures help eliminate downtime due to degradation because they are completely corrosion-free. NOV has helped minimize costly ROV-related downtime with the use of flexible pipes that have real-time temperature measurements to help pinpoint areas in need of attention to within 1 m (3.28 ft). The company also has heated flexible pipes that eliminate wax and hydrate blockage, which helps customers decrease downtime by allowing for smooth flow regardless of how long production may have been shut down. These are just a few ways that NOV is focusing on how it can help its customers by looking at overall time savings and not just how fast or slowly they can drill or complete a well. Visit NOV at booth 2839. n 14

PREVIEW | APRIL 30, 2018 | OTC SHOW DAILY

Optimizing Production Using IIoT Innovations n Wireless technologies and cloud computing enhance the oil and gas industry’s human resources. BY PETER ZORNIO, EMERSON AUTOMATION SOLUTIONS

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taffing has been a perennial challenge in the oil and gas industry. Expertise is always at a premium, but even more so in “4-D” operating environments where the work is dangerous, dirty, distant and dull, like a gas field in northern Siberia or a production platform off the Alaskan coast. In today’s new reality of lower-for-longer oil prices, and with the industry’s most experienced workers retiring by the thousands every year, the pressure is on companies large and small to do even more with less. To tackle this problem, top-quartile performers are turning to advances in wireless sensing, secure cloud computing and Industrial IoT (IIoT) technology to bring the data to the experts, rather than the other way around. These solutions have the potential to let oil and gas businesses stretch their human resources further than ever before, making multisite operations possible while enhancing safety, efficiency and reliability at the enterprise level. Over the past two decades as wireless technology has become more reliable and less expensive, operators have gained better insight into the health of assets in the field. Being able to measure and analyze equipment performance and predict failures in real time has changed the way companies conduct maintenance on site, but it has also generated a wealth of data that can be managed remotely.

critical areas like pumps, compressors, heat exchangers, gas turbines and control valves. Whether this connected service model will become the industry standard in the future depends on a couple of factors, not the least of which is security. First, remote

sensors must be safeguarded in the field, which is no small matter. Securely exporting operational technology data from “first mile” networks on the ground into the See OPTIMIZING continued on page 26

By connecting data to the experts, oil and gas operations today can unlock the value of the Industrial IoT to securely and efficiently manage multiple facilities using cloud networking and software analytics solutions. (Photo courtesy of Emerson Automation Solutions)

Improved data distribution

IIoT solutions allow this data to be distributed to centralized operations centers where a company’s in-house engineers can implement strategies for improving efficiency and safety across multiple facilities. Powerful cloud networking and cloudbased analytical tools now allow virtual teams of experts on opposite sides of the globe to collaborate and make recommendations in real time. With these breakthroughs, a new operating model has emerged. Some operators have begun outsourcing expertise to thirdparty providers who monitor and analyze data from the field as part of a “connected service.” This model allows producers to reduce their capital and management costs while tapping specific domain expertise in OTC SHOW DAILY | APRIL 30, 2018 | PREVIEW

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OTC Awards Companies for Innovative Technologies n The annual Spotlight on New Technology Awards have recognized several companies and technologies. COMPILED BY HART ENERGY STAFF

ages tools and techniques perfected in unconventional plays to improve the efficiency and economics of offshore completions. Using specially adapted DEEPFRAC ball-activated sleeves and patented BeadScreen flowback control technology, the service simplifies operations, accelerates completion times and enables rapid stimulation of 20-plus stages in a single trip. For more information about DEEPFRAC, visit BHGE at booth 2827.

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ach year OTC recognizes companies for their innovative work in developing new products and technologies in exploration and production through its Spotlight on New Technology Awards. The awards program is designed exclusively for OTC exhibitors. “As OTC celebrates its 50th edition, we reflect on the innovations that have been achieved throughout the past five decades,” said Spotlight Award Committee Chair Paul Jones in an OTC press release. “We can never forget that companies like the 2018 Spotlight Award winners are driving the technological advancements necessary to propel our industry for the next 50 years.” Nominations were open to all exhibitors, and each nomination was evaluated by specialists drawn from the OTC board of directors as well as the program committee. The criteria used to select the winning technologies include the following: • New and innovative: The technology must be less than two years old, original, groundbreaking and capable of having a major impact; • Proven: The technology must be proven either through full-scale application or successful prototype testing; • Broad interest: The technology must have broad appeal for the industry; and • Significant impact: The technology must provide significant benefits beyond existing technologies. In addition, OTC recognized two companies with its Small Business Award: CoreAll and Luoyang Wire Rope Inspection Technology Co. Ltd. The awards are scheduled to be presented at 4 p.m. on Monday, April 30, in the NRG Center, Level 1, Lobby B Rotunda.

The N-type is the safe and cost-efficient solution for walk to work and crew change operations in extremely cold regions, hence its nickname “the Icemann.” (Photo courtesy of Ampelmann)

certified under the winterization design code DNVGL-OS-A201. Ampelmann created the Icemann in response to growing demand for effective and safe personnel transfer equipment in frontier regions such as sub-Arctic, Norway and Canada. The system can rotate to 360 degrees and is controlled from the vessel with flexibility in platform landing locations and directions. For more information on N-type technology, visit Ampelmann at booth 1425.

RARPLUS transmits both direct and indirect line tension measurements from internal sensors for real-time display onboard the rig in a user-friendly graphical user interface. (Image courtesy of Delmar Systems)

Delmar Systems Inc. has been recognized for its RARPLUS technology, which gives drilling rigs the capability to completely release from their moorings within minutes to evade ice floes, cyclonic storms, well emergencies or to simply increase rig move efficiency. With a backup mechanical release function, the RARPLUS system provides reliable flexibility to dynamic positioned/moored rigs operating in shallow water. For more information about RARPLUS, visit Delmar Systems at booth 1101.

TerrAdapt is designed to provide extended tool life, significantly reduced nonproductive time and optimized performance. (Image courtesy of BHGE)

Baker Hughes, a GE company (BHGE) has been recognized for its TerrAdapt adaptive drillbit. Unlike conventional bits that are limited to a single depthof-cut (DOC) control setting, the BHGE TerrAdapt drillbit autonomously adjusts DOC to mitigate stick/ slip and expand the smooth drilling window with no surface interaction. Revolutionary adaptive DOC-control elements automatically adjust the bit’s aggressiveness based on the formation it is drilling. TerrAdapt also absorbs shocks and helps prevent damage to the bit and bottomhole assembly. For more information about TerrAdapt, visit BHGE at booth 2827. The Aegion ACS facility provides advanced coating systems. (Photo courtesy of Aegion Coating Services)

Aegion Coating Services has been recognized for the ACS HT-200, an ultrahigh-temperature subsea wet insulation system for pipelines, risers, field joints and subsea equipment with operating temperatures up to 204 C (400 F). This end-to-end deepwater solution comprises an anticorrosion coating covered with an insulation layer and topped with a tough polypropylene exterior. For more information on ACS HT-200, visit Aegion Corp. at booth 1263. Ampelmann has received an award for its N-type technology. As the only motion-compensated gangway system of its kind in operation, the N-type “Icemann” enables the safe transfer of people year-round in harsh winter conditions up to -28 C (18 F). The fully enclosed and insulated system is operational in sea states up to 3.5 m (11.5 ft) significant wave height and 16

The HFRe is a hands-free marine drilling riser system. (Image courtesy of Dril-Quip)

DEEPFRAC provides maximized reservoir contact with an average opex savings of $30 million to $40 million per well. (Image courtesy of BHGE)

BHGE also received an award for its DEEPFRAC deepwater multistage fracturing service, which lever-

Dril-Quip Inc. has received an award for its HFRe, a hands-free marine drilling riser system. The HFRe drilling riser is an automated system designed for HP/ HT applications with efficient operations incorporating SmartSpider technology. This technology reduces risk and operational costs by providing critical feedback and eliminating rig floor personnel during installation. HFRe utilizes a boltless, fatigue-resistant 4 million-lbf coupling, which has been tested beyond API 16F/TR7 requirements. For more information about HFRe, visit Dril-Quip at booth 4577. Editor’s note: For details on the rest of the winners, see part 2 of this article in the Tuesday, May 1, edition of the OTC 2018 show dailies. n PREVIEW | APRIL 30, 2018 | OTC SHOW DAILY

Industry News McDermott’s Journey to Zero Lost Time Incidents

McDermott International Inc. recently crossed a major milestone of 80 million man-hours without a lost time incident (LTI)–a difficult feat for any large offshore engineering, procurement, construction and installation company to achieve. The Middle East Area was the company’s busiest region, and McDermott has amassed a record of zero LTI incidents there since 2013, during which it fabricated and installed 75 jackets and 74 topsides. In addition, 150 miles of pipeline and 102 miles of cables and umbilicals were laid over the same time frame. In 2015, McDermott implemented the award winning “Taking the Lead with QHSES” program, which embeds excellence in all aspects of QHSES performance, and its company-wide adoption has been attributed to its industry leading safety performance and zero LTIs. The program empowers employees to proactively drive continual improvement and promotes a safety-first culture across all disciplines. In addition, the McDermott Operational Values launched nine core values in 2016 across the business that underpin its safety culture. The values are woven into operations, policies, procedures, training, risk management processes and communications. This approach brings key operational risks into a visual and cognizant state where they become routine in employee thinking and positively impact behaviors and attitudes. To underscore this approach, McDermott dedicates more than 400,000 hours of training each year as part of a robust competency framework that develops the skills within its workforce of 11,800 and ensures continual improvement. A number of developmental programs are in place to recognize and empower individuals. To further advance its approach to QHSES performance and adoption of Taking the Lead, McDermott launched its TTL Connect mobile application and will provide demonstrations at OTC booth 2615. McDermott will also host a special celebration on its LTI safety achievement at its booth on Tuesday, May 1, at 4:30 p.m. All OTC attendees are invited.

NRG Center, Level 1, Hall D, throughout the conference, April 30 through May 3. UAHT’s mission is to end human trafficking through awareness, education and outreach. Based in Houston, UAHT increases awareness by training law enforcement, first responders, health care workers, social service providers and business owners on how to identify and combat human trafficking in the greater Houston community. UAHT is one of the many charities supported by OTC. In fact, the 50-year-old conference maintains a strong commitment to serving the greater Houston

community through the Distinguished Achievement Awards Luncheon, which has donated more than $1.4 million to local charities over the past six years. OTC also donated to Hurricane Harvey relief efforts last year.

ION Introduces New 3-D Multiclient Reimaging Program Offshore Australia

ION Geophysical Corp. has introduced a new 3-D See INDUSTRY NEWS continued on page 27

OTC and United Against Human Trafficking Continue Partnership

Committed to raising awareness of human trafficking, the Offshore Technology Conference (OTC) and United Against Human Trafficking (UAHT) are continuing their four-year partnership. As such, UAHT has conducted training for OTC’s exhibitors and educated conference staff on the signs of human trafficking. OTC provides human trafficking information in its communications before and during the conference along with an onsite education booth for UAHT. It is located in OTC SHOW DAILY | APRIL 30, 2018 | PREVIEW

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High-Speed Telemetry to Save Valuable Rig Time n Service provides consistent, high-data rate transmission of drilling and formation evaluation measurements. CONTRIBUTED BY HALLIBURTON

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eepwater drilling presents a number of challenges as wells are becoming more complex and require large amounts of downhole data so operators can make timely decisions to achieve greater production at lower costs per barrel of oil equivalent. For example, drilling dynamics data are necessary to optimize the rate of penetration (ROP) and reduce well time whereas pressure and wellbore stability data help deliver the well safely and minimize operational risks such as lost circulation, poor hole clearing and stuck bottomhole assemblies (BHA). With the increasing need for large volumes of real-time data, Halliburton introduced the JetPulse high-speed telemetry service to consistently deliver high-data rate

transmission of drilling and formation evaluation measurements. The service, a recent Hart Energy MEA Award winner, helps operators make faster decisions at any point in the well plan to optimize well placement and improve well control while increasing drilling efficiency.

Consistent data delivery

The JetPulse service transmits downhole data consistently over wide depth ranges and complex well trajectories with physical data rates up to 18 bps. It provides the highest lost circulation material (LCM) tolerance of any high-speed telemetry system, helping the operator pump the required LCM concentration to cure mud losses without changing or plugging the BHA. The system is also designed to reduce flat time on the drilling

Drilling dynamics and formation evaluation data from sensors in the BHA allow operators to make early and effective decisions along the well plan to drill long sections in a single run—maximizing ROP, placing the wellbore accurately and reducing well time. (Image courtesy of Halliburton)

curve, maximize ROP and optimize reservoir contact by combining new telemetry technology with direction drilling and measurement/logging-while-drilling services. This allows operators to make earlier and effective decisions to drill long sections in a single run. “In environments requiring large data sets such as deep water and mature fields, operators rely on the accuracy and speed of downhole data to make informed decisions about their wells,” said Lamar Duhon, vice president of Sperry Drilling. “JetPulse is the next evolution of high-speed telemetry systems that enhances reservoir understanding to reduce well time and help maximize customers’ asset value.” The service also works with the JetPack 3D data management service to compress and configure multiple data sets in one package, providing effective data rates of more than 140 bps so operators can get the right data while drilling for enhanced decision-making. The service is being used in multiple locations around the world. It has delivered consistent, high-speed data to measured depths of over 9,144 m (30,000 ft) and demonstrated the ability to operate downhole for more than 600 hours on a single run.

Case studies

In the Middle East, an operator needed the flexibility to pump high concentrations of lost circulation material (LCM) to cure potential fluid losses while drilling exploration wells in an area with highly fractured formations. The LCM tolerance of the JetPulse service enabled the operator to successfully pump LCM pills of the required concentration without having to operate a downhole bypass circulation sub or risking plugging/damaging the downhole tools—a capability not possible with other mud pulse telemetry systems. Compared to the previous offset well in the same block, the operator maximized asset value by saving 20 days rig time and over $3.6 million. In the Gulf of Mexico, an operator needed comprehensive downhole data from a challenging high-angle well without compromising the ROP or slowing down the drilling process. The JetPulse service consistently delivered data and images in real time at a resolution of 3 data points/ft while drilling at 30.48 ft/hr (100 ft/hr). The hole section was drilled in a single run with data rates greater than three times what was previously achieved in a similar well. The JetPulse service helped the operator enhance reservoir understanding and make effective decisions, improving drilling performance without compromising ROP, thus maximizing the value of the deepwater asset. n 18

PREVIEW | APRIL 30, 2018 | OTC SHOW DAILY

Looking for an Energy Generation n The DOI’s 2019-2024 National Oil and Gas Leasing Draft Proposed Program could not come at a better time BY RANDALL LUTHI, NATIONAL OCEAN INDUSTRIES ASSOCIATION (NOIA)

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.S. consumers are reaping the benefits of an energy revolution spearheaded by the U.S. oil and natural gas industry. The U.S. is leading the world in discovery and production of oil and natural gas both onshore and offshore. The result has been reliable, consistent and low-priced gasoline at the pump and abundant natural gas for heating and manufacturing. This, however, has not always been the case. Just a few years ago, the U.S. was importing over 50% of its oil and issuing permit after permit to build liquefied natural gas (LNG) import facilities. We were actively working to overcome the hurdles of bringing LNG from Yemen into Massachusetts ports. Our foreign policy decisions were made from a position of energy dependence, and relationships with countries that did not always share American values were forged to assure we could import enough energy to meet our needs. Our economic and energy security was held hostage by a cartel of nations bent on keeping American consumers hooked on foreign energy. Meanwhile, oil market demands created great fluctuations in the price of gasoline. News of Middle East instability increased gas prices to over $4 per gallon at the pump. These swings hurt American tourism, hotel and restaurant industries. Driving, flying and even eating out became so expensive that family vacations became staycations. In fact, the cost of energy, regardless of source or use, rose across the board. Then, almost overnight, America’s energy position changed thanks to industry lead advances in modern technology. Technological advancements in horizontal drilling, deepwater exploration, and hydraulic fracturing, like those showcased at OTC 2018, drove costs down and production up, positioning America as a leading global oil and natural gas producer. Due to lower energy prices, more capital became available for investment in many industries, including manufacturing. Unfortunately, instead of maximizing this generational opportunity, the previous administration fixated heavily upon renewable sources of energy, neglecting an “all of the above” energy policy that actually reflected reality of the technology breakthroughs that were available. With the Trump administration, we have the opportunity to create a truly “all of the above and below” long-term energy policy that can reflect the technological promise of all forms of energy. The Department of the Interior’s 20192024 National Oil and Gas Leasing Draft Proposed Program (DPP) could not come at a better time. The U.S. Energy Information Agency (EIA) predicts that fossil fuels will still supply nearly 80% of U.S. energy demand in 2050. Likewise, EIA predicts that the global middle class will grow in size by 2 billion people and increase global energy demand by 28% by 2040. Even with the growth of renewable technology, fossil fuels will still meet 77% of that demand. Increased offshore access will enable the U.S. to provide consumers with safe, affordable and reliable energy, even as energy demand increases to record highs. To keep pace with world energy demands, nontraditional forms of offshore

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energy need to be a part of this emerging generation of energy. This creates an opening for traditional oil and gas service companies to become part of the construction and supply chain as renewable energy production, such as offshore wind, becomes a reality. Randall Luthi With a looming surge in energy demand, we cannot wait until there is a crisis to begin tapping our energy resources. If it takes $4 per gallon gas at the pump to begin the process of opening up new offshore areas for exploration and development, it will be too late to provide timely relief to American families. Energy is like any

other resource our modern lives depend upon; we must produce today to avoid panic tomorrow. Ninety-four percent of the U.S. Outer Continental Shelf (OCS) is currently closed to oil and natural gas development. Having so much of our OCS closed is incredibly shortsighted and puts the U.S. at a strategic disadvantage, especially as other countries, like Russia, China, Norway, Canada and Mexico are developing energy projects off their shores to meet rising global energy demand. The DPP wisely proposes reversing course and opening up 90% of the U.S. OCS. Through the DPP, we can act now. Every single company and industry worker at OTC understands what the offshore energy industry can achieve. Now we just need policymakers to give us a chance to do our jobs n

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Developing Cost-efficient Pipeline Materials n Improved steel and corrosion performance are among the features of new technologies. CONTRIBUTED BY SUBSEA 7

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he selection of higher-specification pipeline materials can significantly improve pipeline performance, but at costs that may critically impact the economic feasibility of field development, especially when the industry focus remains on lowering capex and opex. To address this challenge, Subsea 7 is accelerating its strategic development of cost-efficient pipeline material solutions for the expenditure-constrained oil price environment. Several of these technology advances are the subject of technical papers at OTC 2018 and are referenced in the current issue of Subsea 7’s technology magazine deep 7.

By collaborating with major pipeline manufacturers and acquiring commercial interests in two specialist material developers, Subsea 7 has accelerated the development of a number of high-performance but cost-effective pipeline technologies, including the following: • The use of higher-strength steels (i.e., exceeding X65) for pipeline installation in deeper waters; • Qualifying a new lined pipe product, Glubi, for improved Reel-Lay corrosion performance; • Developing polymer-lined pipe and connectors as an economic alternative to corrosion-resistant alloy (CRA) clad pipe; and • Adopting lightweight thermoplastic composite pipe materials for subsea service.

Subsea 7’s Pipeline Production Team offers its clients the most up-to-date welding solutions to meet the full range of pipeline fabrication requirements. (Image courtesy of Subsea 7)

High performance steels

Using higher strength steel to decrease pipe thickness can contribute to lower material and fabrication costs and significantly reduced installation costs. A recent cost/benefit study for deepwater steel lazy wave risers identified a 20% reduction in pipeline weight and an 11% reduction in buoyancy material cost by replacing X65 riser material with higher-strength X80. Further potential cost savings could be realized by improved efficiencies in both the floater design and better utilization of the Reel-Lay vessel. Subsea 7 has recently performed qualification programs for reelable X80 riser pipe in collaboration with steel tubular manufacturer Vallourec. These confirmed that welding of X80 can be carried out using similar reliable and cost-effective methods as for X65. Subsea 7 can now offer operators pipeline material and fabrication solutions to support the design of offshore risers and flowlines in X80 pipe, including for sour service. The use of CRA mechanically lined pipe provides a highly cost-efficient alternative to the use of metallurgically clad pipe for many applications requiring improved corrosion performance. Working closely with manufacturer Butting, Subsea 7 has pioneered the Reel-Lay installation of mechanically lined BuBi pipe which is now well established for production risers and flowlines. A new lined pipe product, GluBi, is now being qualified which eliminates the use of internal pressurization as required for reeling conventional BuBi pipe. GluBi includes an adhesive layer between the substrate pipe and the liner, resulting in an enhanced grip condition that can be maintained during reeling to prevent liner wrinkling. GluBi technology will enable further cost savings to be realized for reeled pipe.  

Polymer lining and composites

Swagelining, acquired by Subsea 7 in 2016, is a developer of polymer-lined pipe, with its proprietary process now well established for water injection lines installed by ReelLay. Swagelining has recently developed and qualified LinerBridge, an all-polymer connector, to replace the more costly WeldLink CRA connector. With LinerBridge, the polymer liner welds are made with an electrofusion process adapted from the utilities industries, and the external conventional carbon steel welds can be completed without risk of See SUBSEA continued on page 26

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New Generation of Acoustic Release Connectors n Latest technology provides a new level of reliability and availability to mooring systems. CONTRIBUTED BY INTERMOOR

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s the oil and gas industry continues to change and adapt to market conditions, and with the associated downturns in deepwater offshore exploration and drilling campaigns, there are fewer drilling vessels available in the market. Meanwhile, the vessels that are still working tend to be newer and more technologically advanced. As such, many of the working rigs are outfitted with thrusters and dynamic positioning (DP) systems to keep them on location in deepwater drilling locations. While DP systems provide good station-keeping capability in deeper depths, it is often beneficial to augment a DP rig with mooring lines in shallow-water locations. Since many of these shallow-water locations experience harsh conditions (e.g., hurricanes, storms, extreme wind and wave conditions and icebergs) it is important to be able to quickly disconnect from the mooring system to avoid these environmental hazards or emulate the operational advantages of DP station keeping.

tic disconnection devices on the market. As a result, the designers of the Inter-M Release went with an intelligent control system, which uses Teledyne Marine’s proprietary high-fidelity acoustic modems. These are the same modems used in precision military and survey hardware for underwater applications. The system uses a relay mode and frequency hopping techniques between the connectors, which dramatically improve transmission, reception and therefore reliability. The battery life has also been improved from 18 months in previous devices to five years. Finally, the advanced control system gives a unique identifier to each piece of hardware. This not only eliminates the possibility of an inadvertent release, but also allows for the Inter-M Release to be actuated individually, in clusters, or

even sequenced in any order. Being two to four times lighter and smaller than other existing quick disconnect mooring devices, the Inter-M Release connector is therefore easier and safer to install, saving time and money. It also significantly reduces maintenance costs: it can be overhauled by a single technician without overhead lifting devices in as little as four hours. Older devices often required two technicians for two days and a crane. This new technology, combining proven connector technology and a top-of-the-line control and communication system, provides a significantly safer way to disconnect the rig quickly in case of emergencies, and can also be used to optimize drilling efficiency by allowing faster rig moves from one location to the next. n

Advantages of acoustical releases

In the Gulf of Mexico, if regulators do not say rigs must withstand a 10-year return storm, they require the operators to prove they will not cause a safety or environmental problem if such a storm hits. One of the simplest ways to meet this requirement is by disconnecting and leaving the area, if a large storm approaches. This is where acoustical release mechanisms come in. The technology is 40 years old and the devices are bulky and in need of improvement. InterMoor, an Acteon company, developed the Inter-M Release, a new generation of acoustic mooring connectors. The connectors use the Rocksteady mooring connector of sister company SRP and its ROV-actuated release system, combined with a simple gas-actuated cylinder valve, and a state-of-the-art military-grade control system. The design uses Rocksteady’s mechanically efficient preloaded finger and toggle locking system, which is more reliable than springs or retained hydraulics to maintain the locked position. The result is a device that is one-quarter of the weight and only needs one-third of the deck space required by older generation acoustic release connectors. It also means that it can release under tension loads as high as 900 mt. A tension of 900 mt is the equivalent to the breaking load of an 87-mm-diameter (3.5 in.) diameter R5 chain. Development efforts also focused on the importance of overcoming battery life and signal interference issues, which were common shortcomings of existing acous-

Through acoustic network relay, the Inter-M Release offers improved performance and reliability in a compact and easy-to-deploy package. (Image courtesy of InterMoor)

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Sustaining Production in Deep Water n Holistic solution proactively addresses the critical challenges. CONTRIBUTED BY BAKER HUGHES, A GE COMPANY

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he prospect of decades of high-volume production from deepwater wells makes them an attractive investment. But in harsh environments like the Gulf of Mexico, operators are experiencing growing operational risks, frequent high-cost interventions, and long periods of deferred production that are impacting field economics by the billions of dollars every year. The root causes: asphaltene buildup inside tubing and on tools, and downhole equipment failures due to elevated pressures and temperatures. Despite the common and widespread nature of these issues, the approach to address them has remained largely reactive, relying on intervention versus holistic prevention. This is evidenced in operations such as bullheading

chemical treatments, milling “removable” packers, replacing failed downhole data devices, mechanically shifting stuck sliding sleeves and, in some cases, total recompletion at a cost of up to $100 million or more per incident. The latter operation is often due to the malfunctioning of a critical well control tool—the subsurface safety valve (SSV). Traditional in-well chemical injection offers little to no protection against asphaltene buildup inside conventional safety valves, making them especially susceptible to failure. To address these challenges, Baker Hughes, a GE company (BHGE) is using a new, more holistic a proach to deepwater production—one that leverages a combination of chemistry, fit-for-purpose completion tools, digital insight and remote control—to minimize interventions and maintain optimal production.

The DeepShield valve enables delivery of chemical treatments directly into the valve’s spring cavity and lower pistons, eliminating asphaltene buildup risks inside the valve. (Image courtesy of Baker Hughes, a GE company)

Avoiding asphaltene buildup

Keeping tubing and downhole tools free of asphaltene buildup requires injection of the right chemicals into the right areas. This is why BHGE re-engineered its API 14A V1-validated DeepShield deepwater SSV to include chemical injection capabilities. The patented design enables delivery of treatments directly into the valve’s spring cavity and lower pistons, eliminating asphaltene buildup risks inside the valve. Paired with BHGE’s FATHOM XT SUBSEA525 asphaltene inhibitor, the DeepShield valve offers improved asphaltene resistance in harsh deepwater wells. Additionally, injection of FATHOM XT treatments directly into BHGE InForce HCM-S hydraulic sliding sleeves, versus conventional wellbore delivery, also provides more effective protection against asphaltene buildup. FATHOM XT SUBSEA525 treatments suppress the formation of troublesome deposits with up to a 30% lower dosage rate compared to competitor inhibitors, making them both effective and efficient. SureTREAT chemical injection valves deliver FATHOM treatments at other critical points along the completion to assure flow.

Operating reliably in HP/HTconditions

High temperatures and pressures can quickly foul equipment that is not built for these conditions. With gas-tight sealing capabilities and industry-leading pressure and temperature ratings (232 C or 450 F at 20,000 psi [1379 bar]) the BASTILLE packer reliably performs in ultra-HP/HT applications where some retrievable packers become permanently set due to loading, resulting in unplanned interventions. The BASTILLE packer’s slips and element are designed to reliably disengage from the casing when released, enabling simple, fast retrieval. Similarly, the InForce HCM-S sliding sleeves provide reliable operation, even after pr longed exposure to elevated pressures and temperatures. For fail-safe performance in remote subsea wells, the DeepShield valve features two independent operating systems. The valve also offers extra protection against debris via an energized scraper ring that safeguards the dynamic seals from debris ingress. See DEEP WATER continued on page 27

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Bringing Clean Power to Offshore Platforms n Energy storage solutions provide a means to establish a stable, reliable electrical network. CONTRIBUTED BY SIEMENS

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hree and a half years after the precipitous decline in crude prices, oil and gas operators continue to develop and implement the means to effectively navigate the new normal. Cost constraints, however, are not the only driver behind innovation. The long-term sustainability of the industry also is predicated on minimizing the environmental impact of projects, particularly in the offshore environment. In light of this, the concept of using offshore wind farms to provide clean power to oil and gas facilities continues to gain traction. But there are still many hurdles to overcome, not the least of which involve finding ways to offset the intermittence and inherent unpredictability of electricity generation from wind. One solution that will play a key role in addressing this challenge in the coming years is energy storage.

Emissions-free operation

With electricity in the Fjord area generated exclusively by hydroelectric plants, Ampere is entirely emission-free and has cut fuel costs for Norled by 60%. The project represents a milestone achievement on the road to reducing emissions in Norway. By 2021 it’s estimated that 60 battery-powered ferries will be in operation along the country’s coastline. As many parallels can be drawn from the design and construction of these vessels to other marine facilities, Ampere serves as an example of how ESS can be successfully applied in an oil and gas environment. Overall, the economic benefits that can be realized by pairing offshore wind and energy storage with oil and gas platforms depend on many factors, including load conditions and onsite power generation capabilities. However, as environmental sustainability becomes the increased fo-

In recent years, numerous studies and pilot tests have been conducted to determine the feasibility of using ESS to capitalize on clean power. (Image courtesy of Siemens)

cused of countries worldwide, the potential benefits it can provide make it a concept worth exploring. n

Integrating energy storage with offshore platforms

An offshore platform consists of a multitude of systems whose total power consumption can range from 10 to several hundred megawatts of electricity. For many of these systems, interruption due to unavailability of power can lead to serious safety issues and production losses. As a result, the intermittent generation and off-peak power production of offshore wind farms presents a significant hurdle in bringing clean energy to the oil and gas industry. Energy storage solutions (ESS) provide a means to establish a stable, reliable electrical network by buffering intermittency and providing clean, dispatchable power. In recent years, numerous studies and pilot tests have been conducted to determine the feasibility of using ESS to capitalize on clean power. However, there have been very few proofs of concept that translate to the offshore oil and gas environment.

Applying ESS in a marine environment

In 2015 Siemens set out to change the status quo by partnering with Fjellstrand, (a Norwegian shipyard), Norled AS (a ferry operator) and Corvus Energy to develop the world’s first electrically powered ferry, Ampere. Ampere carries passengers and cars across a 6-km (3.72-mile) crossing between two communities in the Fjord region of Norway. At 80 m long (262 ft), it is driven by two electric motors powered by lithium-ion batteries. Each motor has an output of 450 kW. The batteries have a combined capacity of 1,000 kWh, which is enough to make multiple trips. After that, the batteries need to be recharged. The challenge of the project, which is a similar challenge offshore oil and gas facilities face, was that the power grid in the region was relatively unstable. Designed to provide electricity only to small villages, the rapid consumption of energy from the medium-voltage system to recharge ferry batteries had the potential to cause blackouts for local residents. To address this, Siemens installed one lithium-ion battery at each pier to serve as a buffer. The 260-kWh unit supplies electricity to the ferry while it waits. Afterward, the battery recoups all this energy from the grid until the ship returns to drop off passengers and recharge. The charging stations are housed in a small building about the size of a newsstand. OTC SHOW DAILY | APRIL 30, 2018 | PREVIEW

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Gulf of Mexico Comeback? n Rig rates key in restoring investment; decline in legacy costs could lead to development growth. BY IMRAN KHAN AND LESLIE COOK, WOOD MACKENZIE

T

March lease sale. Wood Mackenzie expects 21 exploration and appraisal wells will be spud this year. A wide range of operators will be busy prospecting and proving up discoveries, including Anadarko, Chevron and Shell. Murphy Oil is expected to return to GoM exploration as it looks to appraise the Samurai discovery.

he Gulf of Mexico boasts one of the highest-specification rig fleets in the world. Over the past decade, operators have brought more than 50 new generation drillships and semis into the region in response to growing regulations and a greater focus on safety and efficiency. Challenges in the big prize plays of the Gulf of Mexico (GoM), such as subsalt Miocene, Jurassic and Lower Tertiary, have dictated the need for a more advanced Impact on breakevens type of rig. Rig costs are usually the most expensive But with the newer generation rigs came higher portion of a well’s price tag. As new rigs are day rates. New generation rigs contracted before 2015 hired at a significant discount, well costs will reached record-high rates, averaging above $500,000 continue to decrease. Couple the softer rig per day. Operators were spending nearly $1 million per rates with a tremendous amount of drilling day to drill wells. efficiency gains over the last three years, and Despite high oil prices, these high day rates were not offshore wells start to compete with shale on sustainable as operators struggled to make projects half-cycle economics. In shale wells, drilling economic even at $100/bbl oil. Since 2015, day rates costs are a fraction of completion costs, and in the floating rig market have plummeted to below a tight market for the latter has limited the $200,000 per day due to excessive oversupply in a down amount shale breakevens can fall. market. Aggressive long-term contracts signed before Although deepwater has to battle a 30% the downturn left the GoM in a unique position of sussuccess rate, at the current leading-edge taining high average rates, which still linger today. Operators have done extremely well at bringing costs rig day rate a deepwater well can break even around Currently, more than 70% of the rigs in the GoM are $18/bbl to $20/bbl (Brent, NPV10). Drilling efficiency down in GoM. They are redesigning projects, adopting working under these legacy high day rates. However, gains are making financial returns more pronounced. A standardization and leaning on existing infrastructure there is hope for operators. Over the next three years, to improve the cost structure. Lower rig rates are fur20% improvement in drilling penetration rates lowers 12 rigs working at legacy high rates will reach the end ther adding to the attractiveness of the region. As more the breakeven to the mid-teens. The upfront cost of a of their contracts. Wood Mackenzie expects many of companies benefit from the soft rig market, GoM activ7,620-m-deep (25,000 ft-deep) offshore well in the GoM these rigs to be re-contracted at substantially lower ity will pick up pace. is down to $55 million to $60 million, unthinkable only Visit Wood Mackenzie at booth 4079. n rates. Exxon Mobil Corp. and BHP recently re-cona few years ago. Shallower wells are at half the cost. tracted the Maersk Viking and Deepwater Invictus, respectively, at 75% Number of rigs rolling off contract at Number of new high spec rigs hired into below their previous rates. day rates >=$400,000/day U.S. Gulf of Mexico from 2010-2017

Increase in activity

As new rigs are signed at much lower rig rates and high-price rigs roll off contracts, the economics of offshore will improve and activity will pick up. We forecast 34 development wells will be drilled this year, almost 10% more than 2017. Shell and Anadarko are leading the way, accounting for half of the total. Exploration activities are also looking stronger despite the lackluster

7

14

6

12

5 Anadarko

4

Chevron

3 2 1 0

2018

Source: Wood Mackenzie

Chevron

10 8 6

Hess

4

BP

BP

2

2019

2020

Shell Anadarko

Anadarko

0

2010

2011

2012

2013

2014

2015

2016

2017

Source: Wood Mackenzie

Safe and secure at OTC For security purposes, attendees are required to wear their OTC name badge and badge holder at all times. According to OTC, use of a badge by a person not named on the badge is grounds for confiscation. If you lose your conference badge, please return to Registration for a replacement. An adult must accompany attendees 15 to 18 years of age. No one under 15 years of age will be admitted to OTC. An adult must accompany attendees 15 to 18 years of age. Also expect additional security measures as you approach each entrance location of NRG Park. Security personnel will be positioned at the entrances and may ask you to open your backpack or boxes for a visual inspection. If you observe any suspicious activity or have any security concerns, please contact OTC Headquarters onsite so we may investigate the matter. OTC wants all patrons to have a safe and secure experience. We appreciate your cooperation and support in making this possible.

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PREVIEW | APRIL 30, 2018 | OTC SHOW DAILY

FIFTY (continued from page 1)

new resources, for them to be economical, need to be large or very productive as compared to an onshore well. Key technologies developed in the past 50 years, like geophysical imaging, ROVs, horizontal and multilateral drilling, subsea systems and station-keeping technologies, have enabled us to explore for and produce from these fields.” As to where the industry will be 50 years from today, Beydoun believes it is its ability to adapt to rapidly changing environments that will enable it to continue to meet the ever-growing global demand for energy. There also will be more cross-industry innovations, with artificial intelligence, 3-D printing and more all serving a much more central role in future operations. “The trend seems now to use technology innovations to execute projects with a much shorter turnaround

TECH (continued from page 1)

feature initiatives taken by players in the offshore value chain to adjust to the new market norm in the industry. At 2 p.m. on Monday, “Continuous Improvement: More for Less and Field Development Strategies to Face the Current Market Condition,” will feature speakers from Petrobras; OneSubsea, a Schlumberger company; and SBM Offshore who will discuss commercially and economically sound development strategies. As the industry moves into the age of digitalization, OTC’s technical program has similarly evolved its focus, Barton said. “We started including sessions on digitalization about three years back,” he said. “There has been a groundswell around that area of the industry and there is more interest in it. All of the previous sessions we’ve had on digitalization have all been very well attended and generated a lot of interest.” This year’s program will feature no fewer than seven sessions dedicated to Big Data, digitalization and automation innovations. Among those scheduled sessions are “The Digital Optimization of Offshore Exploration and Production: The Next 50 Years,” on Tuesday at 2 p.m.; “Big Data, The Next Chapter,” on Wednesday at 9:30 a.m.; and “Drilling Automation and Machine Learning,” also set for Wednesday at 9:30 a.m. In addition to cost-focused sessions and topics on digitalization, Barton said a larger emphasis on offshore projects has returned to OTC this year, most of which will be featured during Tuesday’s programs.

time, to run safer and more efficient operations with fewer people on site,” he said. “The ROV is just a start. I believe we’ll have robots on platforms.” Industry’s embrace of new technologies is evident at the conference and not just in the exhibition halls. A wealth of experience of planning in the good years and in the leaner years comes in handy when preparing for OTC. “With 50 years of experience, we’ve learned from past events how to manage and plan for the cyclical nature of the industry,” he said. “We plan 18 months in advance for the conference and coordinate with a multitude of contractors to help us prepare.” Over the years, the conference organizers have optimized their processes to work more efficiently and to also improve the quality of the event by using new technologies as often as possible, he noted. “For example, we’ve cut down the wait time for onsite registration and badge print out to about five minutes,” he said.

“We haven’t had very many projects over the last few years, and they’re back,” he said. At 9:30 a.m. on Tuesday, a review of the 40-year history of the Campos Basin is scheduled, while at the same time Shell’s Malikai project will be featured in a session. Other offshore projects scheduled for discussion during the week are Exxon Mobil’s Hebron project—Eastern Canada’s latest offshore oil project—which is set for Tuesday at 2 p.m., and Chevron’s Jack-St. Malo project. “That’s going to make for an interesting discussion on how that’s been implemented over the years,” Barton said. Thursday’s sessions will showcase OTC’s ongoing focus on industry safety and federal policy. A ticketed breakfast session at 7:30 a.m. is scheduled to feature Stephen Barrett, senior vice president, business development, Oceaneering, and Fawaz Bitar, head of upstream global operations, BP. Barrett and Fawaz will present “Center for Offshore Safety: Could This Be the Next Step Change in Safety?” The Center for Offshore Safety will present twice more on Thursday, at 9:30 a.m. and again at 12:15 p.m., during a ticketed lunch session. Alan Cohen, director, office of oil and gas research, U.S. Department of Energy (DOE), is scheduled to discuss the DOE’s approach to offshore oil and gas technology challenges during a 12:15 p.m. ticketed luncheon. “There are some interesting sessions on government policy,” Barton said. “I think we’ve put together one of our strongest Thursday programs ever.” n

ADVANCES (continued from page 12)

SUBSEA (continued from page 20)

the operator to take immediate action instead of waiting to access the KPIs in the next day’s report. By comparing each section of the current well to sections in previous wells, the analyst determined where performance could be improved in the next well, which represented an important first step toward identifying efficiencies and potential cost savings through reduced ILT. Throughout the drilling phase, the operations analyst outlined well monitoring workflows and processes to allow the operator to push ROP to the maximum level as safely as possible. The service also used the VIRTUAL HYDRAULICS drilling fluid simulation software to facilitate continual access to tripping schedules and hydraulic simulations. A specially designed program monitored and detected warning signs during tripping. In one well, the service set field records for net and gross ROP in the 8½-in. and 12¼-in. sections, achieved a 48% decrease in slip-to-slip tripping time compared with the project average and improved casing slip-to-slip performance. Additionally, the service improved drilling consistency and tripping performance to enable multiple casing and completion runs. Det Norske has also seen continuous improvement in the makeup and laydown times of BHAs. Visit Schlumberger booth 2415 at OTC. n

damaging the underlying liner material. The LinerBridge connector now makes polymer-lined pipe water injection lines installed by S-Lay and J-Lay an attractive economic alternative to clad pipe. The next technical challenge to be addressed for polymer liners is their use for hydrocarbon service, managing the risk of gas permeation through to the steel pipe substrate. Thermoplastic composite pipe (TCP) materials are now challenging the use of steel for subsea service, and Subsea 7 recently acquired an interest in leading manufacturer Airborne Oil and Gas to accelerate TCP technology development. TCP materials offer fully bonded pipelines with a smooth bore giving superior corrosion resistance, flow assurance and thermal performance capabilities to comparable steel pipelines. In addition, its combination of low weight and high strength makes TCP an attractive enabling solution for deepwater SURF architecture. n

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Visit EPmag.com for stories tagged “OTC Extra”!

In celebration of its 50th edition, conference organizers have planned multiple special events in addition to its traditional offering of technical sessions, breakfasts, luncheons and awards presentations. “I strongly encourage everyone to attend the opening ceremony, the legacy luncheon, the panel on energy transformation in the afternoon, and the evening celebration, the ‘Party on the Parkway,’” he said. “And that is just on the first day.” The key to the successful run of 50 years of OTC is found residing in the hands of the members of the many organizations and societies whose efforts have helped make the conference possible. “All of us that work on the conference feel a sense of pride and the collective camaraderie necessary to pull this event together. It takes every person from the 13 sponsoring organizations and more to pull together an event as impactful and immense as OTC,” he said. “It is a privilege to work with this team and to serve as its chairman.” n

NEW DAY (continued from page 1)

smaller facilities and the increased use of subsea tiebacks and existing infrastructure. As a result, the projects are smaller, with an average capex to develop major projects (commercial reserves over 50 MMboe) sanctioned in 2017 falling to $2.7 billion from an average capex of $5.5 billion for those projects sanctioned over the last decade, according to the analysis. Project optimization, faster drilling delivering reduced drilling costs, lower rig rates, subsea and supply chain costs are helping deepwater achieve the greatest fall in unit costs through the downturn, the analysis stated. Offshore E&P survived the storm through adaptation, collaboration, innovation and standardization and now enters a period of rebuilding and growth. It won’t happen overnight, but through the continued sharing and disseminating of knowledge in the true spirit of OTC collaboration, the journey will certainly be memorable. n

OPTIMIZING (continued from page 15)

cloud is essential. Data must also be stored properly and user access managed well, whether by internal or third-party personnel. Taking full advantage of the opportunity here entails something more, however: developing a business case based on the right automation strategy to suit a given company’s needs and objectives. This is an area in which most companies are struggling. For many small players, this might mean evolving from a reactive maintenance model to one based on proactive routines, which requires having a willingness to implement real organizational change. This is a challenge regardless, but the benefits are proving to be worth the investment. One Emerson customer who operates an offshore drilling facility in Alaska has seen success using a third-party service to manage maintenance, analyze process data and monitor control valves remotely. In a place where making repairs outdoors is never routine, delegating engineering duties to experts on the mainland has made good business sense. With a more proactive maintenance strategy, the facility achieved zero valve-related shutdowns over a 24month period. The savings from just one hour of unplanned shutdown time more than covered the cost of the third-party service. To achieve results like these, Emerson’s recommendations are to build a collaborative team to implement programs, target the right applications, pick effective third-party partners, manage change well and focus on business opportunities—not just the technology. This approach will enable producers to stay competitive, whatever the market brings. For a deeper dive on this topic, join Emerson at the OTC 2018 session “Digitalization: A Vision Forward,” on Monday, April 30, at 10:36 a.m. in Room 604 (Session #28943). n PREVIEW | APRIL 30, 2018 | OTC SHOW DAILY

INDUSTRY NEWS (continued from page 17)

multiclient broadband reimaging program offshore Australia. The North Vulcan 3-D multiclient reimaging program covers the northern part of the Vulcan sub-basin offshore Northwest Australia in an area known for complex imaging challenges. The 17,000-sqkm (6,564-mile) program integrates and reimages data from 15 vintage surveys using modern depth imaging. It builds on knowledge gained from ION’s regional 2-D WestraliaSPAN survey and incorporates additional geophysical insight and geological interpretation to create a superior new image and enhanced subsurface understanding. This proven hydrocarbon province has suffered from a lack of investment, in part because of the poor quality of existing data. Reprocessing has delivered significant imaging uplift in geologies with similar imaging challenges. ION’s broadband processing and general move-out tomography can overcome subsurface imaging challenges stemming from a complicated velocity structure because of both shallow carbonates and salt. This cost-effective reimaging will help de-risk future exploration in this complex area at a fraction of the cost of acquiring new data, and there are a number of existing fields and discoveries as well as available acreage in upcoming license rounds within the boundary of the North Vulcan 3-D multiclient reimaging program.

Janeiro Subsurface Imaging Center and merged with the Constellation reprocessing project to provide a regional broadband image of this prolific basin. Fasttrack products will be available in fourth quarter 2018, and final products will be available in second quarter 2019. Constellation is a 44,000-sq-km (16,988-sqmile) project that upgrades CGG’s existing Cluster and Cluster Extension surveys with its latest subsurface imaging technology, including 3-D deghosting with bandwidth extension and tilted transverse isotropy full-waveform inversion velocity model building, to provide detailed broadband presalt images.

BP Ventures to Invest $500,000 in Clean Energy Consortium

BP Ventures, BP’s venture arm, will invest $500,000 and form a strategic relationship with several members of Incubatenergy, a U.S.-based consortium of clean energy incubators and accelerators that supports startups and entrepreneurs across the global energy sector. According to a BP, the strategic relationship will provide BP Ventures the opportunity to collaborate with Incu-

batenergy’s senior industry leadership and cleantech startup companies. It also will support BP Ventures’ mission of growing, developing and investing in new energy solutions for a lower-carbon future, specifically with a focus on power and storage, advanced mobility and digitization of the energy sector. n

Can I take photographs or video of OTC? No. All OTC sessions are protected by U.S. copyright laws. Photography and video/audio recording of any kind are strictly prohibited in the sessions and throughout the exhibition area. Members of the press are required to report to the OTC Press Room to obtain permission for photography and videography.

CGG Adds New Santos VIII Multiclient Survey Offshore Brazil

CGG has commenced acquisition of a large broadband 3-D multiclient survey in the presalt area of the deepwater Santos Basin. Santos VIII is the most recent survey in CGG’s ongoing presalt program that delivers ultramodern seismic data, enabling exploration companies to better evaluate presalt opportunities in advance of Brazil’s presalt licensing rounds. Santos VIII covers an area of more than 8,000 sq km (3,089 sq miles) adjacent to the Peroba, Pau Brasil and Boumerangue fields. The resulting BroadSeis data will be imaged with CGG’s advanced full-waveform inversion technology in its Rio de

DEEP WATER (continued from page 22)

Actionable digital insights

The ability to collect and interpret downhole data is the key to understanding production flow, maintaining completion health and confirming downhole tool performance. BHGE intelligent systems and ProductionLink monitoring services deliver that understanding, and the actionable insights, operators need to optimize flow and minimize interventions in high-cost deepwater environments. BHGE’s SureSENS QPT ELITE gauges, SureFLO flowmeters and SureVIEW fiber-optic monitoring systems collect highly accurate pressure, temperature and flow rate measurements. The data are transmitted to the ProductionLink service platform in real-time, where they are visualized and analyzed using well-specific algorithms. With the BHGE SureCONNECT downhole intelligent wet-mate system, which enables instrumentation and control of the lower completion in two-trip completion applications, information flows uninterrupted and control is continuous, allowing operators to implement precise adjustments from anywhere in the world. Visit Baker Hughes, a GE company, at booth 2827 during OTC. n OTC SHOW DAILY | APRIL 30, 2018 | PREVIEW

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