1997 Forum Series

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SPE DISTINGUISHED LECTURER SERIES is funded
principally through a grant of the SPE
FOUNDATION The Society gratefully
acknowledges those companies that support the
program by allowing their professionals to
participate as Lecturers. And special thanks to
The American Institute of Mining,
Metallurgical, and Petroleum Engineers (AIME) for
their contribution to the program.
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SPE Presentation on Expandable Technology
1) FUNDAMENTALS 2) FROM LAB TO FIELD 3) PRESENT
STATUS 4) THE MONO DIAMETER WELL 5) Qs As
Presenter John Dewar, Programme Manager in
Shell with responsibility for Research,
Development and Early Implementation of the
technology across all regions
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Technology Fundamentals
Expandable Tubulars involves permanently
deforming the pipe through a cold working process.
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Video of lab expansion Rijswijk
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History of Expandable Technology

• 1865 Patterson Sheet metal formed into a
  tube
• 1910 Mettler Repair Patch, ductile
  pipe/rotary expansion
• 1917 Leonard Corrugated pipe/solid cone
  expansion against formation
• 1940 English Ductile pipe/fluid pressure
  or explosive charge expansion against
  formation or casing
• 1962 Vincent Corrugated pipe coated with
  fiberglass saturated with liquid resin 1980-
  present Corrugated pipe expanded by pressure
  and roller cone
  Tatneft/Russia Patching of troublezones (1,500
  wells installed)
• 1992 Lohbeck Slotted Completion Liner using
  solid cone (Shell)
• 1995 Donnelly Expandable Sand Screens
  (Shell)
• 1992 Worrall Solid cone expansion of ductile
  casing (Shell)
• 1992- present Exponential growth of patents

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TYPICAL EXPANSION EQUATIONS


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Comparison of API L80 TO POST EXPANDED LSX 80

Expanded 7 5/8 LSX 80
Normal 9 5/8 API L80
9 5/8 casing
9 5/8 casing

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RD Challenges

• Launcher assembly Improve Deployment process
• Increase post expanded Collapse Pipe material
  selection
• Connectors Gas Tight connector with high
  expansion ratios
• Pipe Reduce cost with new materials or relax
  specs.
• Cone Reliable multiusable Collapsible and or
  Compliant Fixed cone
• Contingency Systems How to recover from
  unwanted events

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PART 2 - FROM LAB TO FIELD How to accelerate
implementation
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Hurdles to innovation the Blockers
50 penetration
Commercial
Idea
Prototype
Field test

• Lack of stability in funding
• Limited patent protection
• Multiowner decision structures

• Fewer elephant fields to sponsor development
• "Not invented here" syndrome
• NPV techniques undervalue optionality of field
  testing
• Traditional BU performance metrics fail to
  capture company value

• Cannibalization concerns
• Underdeveloped risk-sharing models
• Lengthy deployment processes

• Declining academic consortiums
• Limited funding
• Declining flow of top talent to industry

(McKinsey analysis)
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Industry Tension

• EP companies- reduced RD budgets- unwilling
  to share value- high cost of failure- scorecard
  driven

• Small Innovators (SMEs)
• - Ambitious, nimble
• lack funding
• limited market access

• Big Service Companies- lack of incentives -
  limited innovation
• - bitter past experiences!

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Skill sets across the Technology Process
Major Operator
Major Service Provider
Joint Venture
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Conclusion Some Form of Technology Partnership
is required
Options

• Joint Venture- where both parties provide
  services, expertise and funds with a shared Board
  of Directors
• Licensee where one party has secured the
  rights (sometimes on an exclusive or semi
  exclusive basis) via payment and/or royalties
• Contract - where one party simply pays another
  for RD delivery

Note They all have pros and cons and all require
clear guidelines on exclusivity, IP ownership,
transfer of technology and payment structure
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Modus Operandi for Global Implementation
Global Champion
Industrial partners Joint Venture
Halliburton Shell Service company -
Enventure Licensee Weatherford Contracts VM,
Ruma
Head Office RD Implementation team
Initial Field Trials budget
Regional Engineers outposted in the OUs
AMERICAS
AFRICA
AUSTRALASIA
MIDDLE EAST
EUROPE
Brunei Malaysia Philippines China Australia New
Zealand
Nigeria Gabon Cameroon Angola Namibia
Oman Syria Abu Dhabi UAE Egypt
USA Canada Venezuela Brasil
UK Holland Norway Austria
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Industry Footage of Solids (SETs) and Screens(
ESS)
SETs (through to July 2004)
ESS (through to Jan 2004)
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Comparison of Technology Uptakes
Time (years)
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PART 3 OVERVIEW OF THE PRODUCTS, FIELD
APPLICATIONS, COMPANIES AND INDUSTRY OPINION
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3 Generic types of Products
Solids For normal well construction
Screens For well completions
Clads For workovers
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Expandable Products
Product Groups
Product Groups
-
Drilling
-
Drilling
Casing/Tubing Clad
Casing / Cr Tubing Clad
-
Mono
-
Diameter
-
Mono
-
Diameter
-
Completion
-
Completion
-
Remediation
-
Remediation
Mono
-
diameter
well
Expandable Liner hanger
Expandable Liner hanger
Open
-
hole Clad
Open
-
hole Clad
Expandable Slotted
Cure Lost Circulation
Cure Lost Circulation
-
-
Sand screen
Prevent Shale
-
sloughing
Prevent Shale
-
sloughing
-
-
Tubing/Casing
Patch
Open
-
hole Clad
Abandonment plug
Abandonment plug
-
water shut
-
off
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Companies providing Expandable Products ( has
been increasing over the last 3-4 years)

• Halliburton
• Read
• Weatherford
• Enventure,
• Baker
• Tatneft
• TIW

Health warning Beware of IP infringement and
technical capabilities
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Expandable Technology Implementation in Shell

• NAM, NL
• 13Cr cased hole clad
• Expandable sand screens

• EXPRO, UK
• Horiz. Exp. Sand screens
• Horiz. open hole liners

• RAG Austria
• Cased hole clad

• SSB, Malaysia
• Expandable sand screens
• Cased hole clad

• BSP, Brunei
• Expandable sand screens
• Cased hole clad

• Pecten, Cameroon
• Expandable sand screens

• SEPCO, US
• MonoDiameter Technology
• Deepwater slim well construction
• Cased hole clad

• PDO, Oman
• Cased hole clad
• Alternative borehole liner
• Exp. sand screens
• Open hole clad swelling elastomers

• SPDC, Nigeria
• Horiz. Exp. sand screens
• Horiz open hole liners

• Woodside, Australia
• Expandable sand screens

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Converting a 5 ½ Carbon Steel Gas well to a 7
5/8 Cr13 well in Europe

• maximum size conduit
• minimum resistance
• 13 Chrome tubing
• no inhibition required
• increased strength

10 3/4
Result 60-80 gain in production
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Expandable Tubulars Multi-client Project

• Assessment of Worldwide Market
• Opportunities for Expandable
• Tubular Technology

23 January, 2004
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Final Geographic Coverage - Operators
Total sample 95

Personal interviews in Houston, Rijswijk, Middle
East Far East.
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Main Benefits of Solid Expandables
NOTE Even non users can benefit by being able
to slim down wells with a SET as a contingency
string
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Are Expandables a Solution ?
Are Expandables a Solution? ()
Note Please see Individual Summaries for
detailed comments.
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Why Expandables Have Not Been Used
Mentions
Note A few stating no application probably
have some.
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PART 4 - THE MONO-DIAMETER WELL Is it a dream,
a reality, a con trick or a white elephant ???
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Monodiameter Well Concept
The Vision
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Business case for the MonoDiameter well

• It can lower Unit Operating costs by
• Faster drilling / cheaper rigs
• Lowers costs of casing, bits, mud, cement,
  wellhead, cuttings cleaning etc.
• Lowers logistics costs (helicopters, supply
  boats)
• Helps the environment
• Always gets well to TD
• Increases Near and Far Field Potential

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Application of Monodiameter wellsfor Extended
Reach Drilling
offloading tanker

• Long Sidetracks become feasible
• Apply conventional maintenance
• Good Flow assurance
• Can avoid costly sub sea templates
• and pipelines on sea bed

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Concept is already proven
16" Surface Pipe
1600'
11-3/4" Conventional

• Thomas Rife-15 (Sth Texas)
• MOD Concept was field proven in 2002
• Used 2 trip process ie bottoms up expansion
  followed by top down expansion
• Did not provide zonal isolation
• Provided the impetus to start RD work on a
  commercial single trip MOD system in 2003
• New MOD Technology has been developed and is
  presently being tested

9-5/8" MoD Xliner
9-5/8" MoD Xliner
9-5/8" MoD Xliner
2800'
Top of Window
6800'
Base Whipstock
7630'
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Early concept design of MOD Deployment String
(Shell IP)
Drill Pipe
Gripper
Casing Anchor
Un-Expanded Casing
Hydraulic Actuator
Packer Cups
Shear Pins
Expandable Cone Assy
Locking Dogs
Packer
Float Valve
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Monodiameter Test Well - 2004
16 casing to 40 ft

• Test Objectives
•  
• Verification of 3 single trip MOD sections
• Creation of 2 bells downhole
• Deviation (15deg) and DLS (3 deg/100)
• Repeated jacking cycles (instead of hydraulics)
  as contingency
• Test MOD zonal isolation using elastomers without
  cement
• Expansion against formation
•  
• Timing before year end 2004

11 ¾ surface casing

2500 ft
3 MOD sections (ie 9 5/8 pre expanded casing
with post expanded ID of 10.4) Lower 2 bell
sections formed downhole Lowest section using
elastomers without cement

Circa 4500 ft
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• Monodiameter (MOD) Development Summary
• Monodiameter Technology was successfully tested
  in Sth Texas in 2002 (2 pass system)
• New single trip MOD system has been designed and
  tested in test rig in Duncan (Oklahoma)
• Ready to be field tested in well Nov/December
  2004
• Should be commerically available to the industry
  in second half 2005
• 7 5/8MOD to follow if there is Customer demand

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Expandable Presentation Summary

• Fundamentals Simple BUT only when you know how
• How to accelerate global implementation
• Review of products/companies/industry opinions
• MOD Not a dream anymore

Conclusion As field sizes go down and costs go
up, expandable technology can help you add value.
Thank you all for coming .and thanks to the
SPE and the Host Committee