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Cairn Anticipat

milston evnt As OTC turns 45, middle age does not seem to be slowing it down.

now entering its 45th year of existence, the OffshoreTechnology Conference continues to be one of thebiggest and most impressive energy conferences in the world.With a full slate of technical presentations, breakfasts andluncheons, plenary discussions and more, combined with anenormous exhibition of the best technology the offshore in-dustry has to offer, the show is truly a remarkable feat. Andit takes true dedication to pull something like this off.

Aer serving as vice chairman forthe last two years, Ed Stokes tookthe reins of the chairmanship at theclosing of the 2013 conference. Hisexcitement about the upcomingconference is palpable.

OTC today isnt just the plan-ning for and the annual executionof the conference in Houston. It isthe management of four global con-

ferences, Stokes said. And while Im very excited aboutthe technical program and exhibition we have in store this

year, we are also celebrating our45th anniversary. Im excited aboutthe anniversary since it signies andconrms the great vision that thepeople who created OTC had in thelate 60s. Furthermore, it shows thatthe collaborative model among en-gineering and geoscience societiesand trade organizations is still meet-ing the needs of our society mem-

bers, exhibitors and attendees.For Stokes, the transition from vice chairman to chairman

has been signicant. In his vice chairman role, he mostlyserved in a supportive role. Now hes the one leading the team.

Im now the one out in front and the one leading andmaking many decisions for the organization, he said. As

chairman of the board, you become the point of focusboth internally and externally. Its humbling to have thefaith and support of my fellow board members.

By rhonDA DuEy

By mArk ThomAS

Along with bringing large,complex new projects onstream, the global offshore in-dustry also nds itself dealingwith soaring costs at a time ofprofound change. As a result,the need for new and enhancedtechnologies and solutions, aswell as better procedures for utilizing standardizedequipment where possible, remains paramount.

With cost ination having directly caused some oil

companies to stallbut crucially, not cancelsomeof their largest projects while they trim their capexgures with down-sized or simpler development al-ternatives, it is likely to be one of the major talkingpoints at OTC, the worlds premier offshore oil andgas event.

Whenever the purse strings are tightened in theoffshore industry, talk also turns to the need for com-panies to not cut too deeply, especially where inno-vation and R&D activity is concerned.

Its no accident, therefore, that much of this yearsOTC conference program reects many of these top-ics and more. With panel sessions on subjects rang-ing from the impact of the North Americanunconventional play revolution on the deepwater in-

dustry, to how best to fund new E&P technologies,there will be something for everyone at Reliant Parkin Houston.

With a forecast record global E&P spend for 2014of $723 billion, compared to $682 billion last year(according to Barclays annual industry survey), theoffshore industry currently retains a major slice ofthat pie.

But the nature of this business can change remark-ably quicklyfor example, deepwater and shale aretwo capital-intensive but booming sectors. However,the latter is expected to represent 25% of total globalE&P spend by the year 2020and that may mean ap-propriating investment funds currently allocatedelsewhere, including the offshore sector.

Industr to Co

Totr for 45t

Annual OTC 2014 conference brings worlds offshore talent together to networkand innovate for the future.

Forty-ve years ago e Beatles played their nal con-cert and recorded their last album, Abbey Road. Itwas also the year of the rst OTC.

is year, as OTC celebrates its 45th anniversary, itwelcomes thousands of attendees from all over the worldto Houston and pays homage to e Beatles and 1969 byusing a No. 1 hit from the bands Abbey Roadalbum asits theme: Come Together. We provide the venue and

unique opportunities for leaders,engineers, scientists, professionals,manufacturers, investors and entre-preneurs to come together to seethe state of the art of our industryand explore new opportunities,said Doreen Chin of Shell, this

Industry inTransition e past year has seen the globaloffshore industry bring on streamsome of the largest and most complex

projects ever attempted.

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OTC2014SM

www.otcnet.org/2014 Monday, May 5 | Houston, Texas

| THE OFFICIAL 2014 OFFSHORE TECHNOLOGY CONFERENCE NEWSPAPER | DAY 1

Ed Stes

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By Amy LogAn


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3oTC ShoW DAILy | mAy 5, 2014 | PrEVIEW

SChEDuLEoF EVEnTSSMeditorial Dirctor

Pey Willias

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Assistant editor

Aiaa Beavidez

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Delia Cistbal heea

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OTC2014


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4 PrEVIEW | mAy 5, 2014 | oTC ShoW DAILy

Tcnolo Awards hilit Divrsit of Innovation Twelve winners will be recognized at Monday aernoon ceremony.

The offshore industry is driven forward by develop-ments in all areas of E&P. Innovation in geophysicsor rig design alone will accomplish very little without theother, and the same goes for each industry segment fromexploration to completions. As the industry continuesto move into new and harsher environments, its as im-portant as ever that new milestones are reached fortools across the spectrum. The industry is striking outinto deeper waters and deeper horizons, said Moe Plai-sance, Spotlight Award committee chair. Without in-novation, we go nowhere and dont meet the goals wehave for the industry.

For the past decade, OTC has recognized the most in-novative technologies each year that are leading the in-

dustry into the future with the Spotlight on New Tech-nology Awards. is years winners reect the variety of

important tasks the industry faces and the great stridesbeing taken by a range of companies.

e great thing about the entries and winners thisyear is the diversity, Plaisance said. ey covered a hugerange of technologies from drilling technology to pro-duction technology to seismic technology.

Winners were chosen by a committee made up of rep-resentatives from the OTC board and program commit-tee. Five criteria were used to select the 12 winners: New. e technology must be less than two years old,

dating from the rst time it was introduced to themarketplace or announced or advertised in a confer-ence, press release or trade journal.

Innovative. e technology must be original, ground-

breaking and capable of revolutionizing the offshoreE&P industry.

Proven. e technology must be proven either throughfull-scale application or successful prototype testing.

Broad interest. e technology must have broad in-terest and appeal for the industry.

Signicant impact. e technology must provide sig-nicant benets beyond existing technologies. Envi-ronmental impact is an important judging criterion.

e awards will be presented Monday at 4 p.m. in theReliant Center Rotunda Lobby.

Wireless Capability of Cement Head Reduces HSE Risk

During Cementing

Baker Hughes has received an award for the LaunchPROWireless Top Drive (TD) Cement Head. e tool is de-

signed for deepwater applications and

launches balls, plugs or darts wirelessly dur-ing cementing of extremely heavy subsealong strings and long, heavy liners. e TDcement heads wireless operation reducesHSE risk by eliminating the need for manualintervention. Aer the cement head is inplace, all functions can be performed byhandheld remote control or from the oper-ators console on the cementing unit. iskeeps personnel out of the hazardous areaand reduces the time it takes to launchplugs, balls and darts.

e cement head is compatible withBaker Hughes Seahawk family of offshorecementing equipment and offers 2.5 MMlbload capacity, which exceeds the capacity

of todays strongest API drillpipe connec-tion, the company said. e tool has a max-imum working pressure of 10,000 psi forlong, deep subsea completions.

e streamlined design minimizes therisk of external component damage thatcould result in nonproductive time, ac-cording to the company.

For more information about the Launch-PRO Wireless TD Cement Head, visitBaker Hughes at booth 3731.

Auxiliary Pump Aids Secondary

Intervention for BOPs

FMC Technologies has received an awardfor the ISOL-8 Pump. e auxiliary pumpfrom FMC Technologies Schilling Roboticsenables secondary intervention for BOPsin compliance with API Standard 53. epump is an integrated part of the UHDIIIROV and meets the 45-second require-ment for closing BOP shear rams.

e pump consists of eight double acting,servo-controlled, duplex pump modules.Each pump module is an independent ma-chine, and the array is controlled and syn-chronized via soware, pumping a varietyof uids at high ow rates. e pump mod-

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ules allow pilots to control pressure, ow and uid sourcesthrough FMCs Hammerhead operating system.

Flexible conguration allows optimization for a varietyof demands and can simultaneously provide up to 189L/min (50 gal/min) at 5,000 psi. is system is depth in-sensitive compared to existing industry solutions and cansave operators up to $4 million per rig, the company said.

For more information about the ISOL-8 Pump, visit FMCTechnologies at booth 1941.

ESP Monitoring System is Unaffected by

Fault Conditions

GE Oil & Gas has received an award forthe Zenith GFI Ground Fault ImmuneESP Monitoring System. Zenith GFIGround Fault Immune electrical sub-mersible pump (ESP) monitoring systemis not vulnerable to ground faults, whichare a persistent problem with this type of

articial li and affect about 15% of ESPwell monitoring systems. is has been anongoing issue since the 1970s.

When a ground fault occurs with leak-age in the ESP cable, the gauge loses sig-nal, cutting off the data being transmittedabout the operation of the ESP. While theESP continues to run, operators are faced

with workover or running motors at lower pumpingrates to keep motor temperatures in safe operatingareas. They also face a larger head of fluid to safeguardfrom pump off.

e new GFI system cannot be disturbed by groundfaults, giving operators the ability to maintain well sur-veillance essential for production optimization and pumpprotection, despite fault conditions.

For more information about the Zenith GFI GroundFault Immune ESP Monitoring System, visit GE Oil & Gasat booth 3163.

Service Gives Early Warning of Fluid Change,

Prevents False Alarms

Geoservices, a Schlumberger company, has received anaward for the FLAG Fluid Loss and Gain DetectionService. e FLAG uid loss and gain detection servicewas designed to address the challenges of increasinglycomplex drilling programs in ever deeper waters with anearly warning system that is highly sensitive to uctua-tions yet advanced enough to help prevent false alarms.

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Rconizin Industr Accoplisnts The OTC Distinguished Achievement and Heritage Awards represent the very best that our industry offers.

Every year, the OTC Awards Committee ack nowl-edges individuals and companies that have madesignificant technical, humanitarian, environmental

and/or leadership contributions to the industry bypresenting them with the OTC DistinguishedAchievement and Heritage awards.

The Distinguished Achievement Awards enableOTC to recognize individuals and companies who

have brought something amazing to our industry, saidCindy Yeilding, OTC chairwoman of the awards dinnerand member of the OTC Board of Directors. Theseawards are based on significant achievements in thedevelopment and application of technology, science,

engineering and leadership and represent

the very best that our industry offers on aproject and an individual level.This years award recipients are DNVs

Carl Arne Carlsen, BP and Noble EnergysSusan Cunningham. The DistinguishedAchievement Award for Individuals waspresented to Carlsen for his significantadvancements in the safety and reliabilityof mobile offshore structures and thepractical applications of risk manage-ment, according to the OTC website. TheDistinguished Achievement Award forCompanies was awarded to BP for itsClair Ridge development. The award rec-ognized the deployment of the companysLoSal EOR technology into the develop-

ment, which is located west of Shetland,U.K. The effort represents the first sanc-tioned full-field offshore use of the LoSalEOR technology, which was developed byBP to increase oil recovery, according tothe OTC website. The 2014 HeritageAward was presented to Cunningham inrecognition of her exemplary leadershipand outstanding technical contributionsin the Gulf of Mexico, West Africa andEastern Mediterranean regions, accordingto the OTC website.

The annual OTC dinner recognizes theaward recipients, raises funds for MedicalBridges and provides an opportunity to

network with industry leaders fromaround the world. This years dinner wasscheduled for Sunday, May 4, and will bereviewed in the Tuesday paper.

The OTC dinner grew from a visionof one of our board members, Helge Hal-dorsen, who wanted to enable our indus-try to give back to the world. The dinnerhas become an integral part of the OTCexperience, and we are proud to honor avery special humanitari an organizationas well as kick off the 45th annual OTCin style, Yeilding said.

For more details on the three OTC award re-

cipients, see their individual stories elsewhere

in this edition.

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The OTC Awards Committee acknowledges indi-viduals and companies that have made significanttechnical, humanitarian, environmental and/or lead-ership contributions to the industry by presentingthem with the OTC Distinguished Achievement andHeritage awards. This years Distinguished Achieve-ment Award for Individuals was presented to Dr.Carl Arne Carlsen, senior vice president and formermember of the governing board at Det NorskeVeritas (DNV).

Carlsen was recognized for his significant ad-vanceme nts in the safe ty and re liabilit y of mobile off-shore structures and the practical applications of riskmanagement, according to the OTC website.

He described his reaction to winning the award asastonishment followed by humbleness and pride ona mental journey.

Carlsen started his career at DNV in 1975. Duringhis career, Carlsen focused on safety issues and pro-viding s olutions to complex problems that faced theoffshore and maritime industries. Among these so-lutions was his work in establishing rules for dynamic

behavior of jackup platforms,semisubmersible platformsand for FPSOs in harsh envi-ronments, according to theOTC website. Carlsen hashad major impacts on howthe offshore industry oper-ates today.

One of Carlsens proudestaccomplishments was his in-volvement in developing theInternational Association of

Classification Societies (IACS) En-

hanced Survey Program (ESP), whichwas later adopted by the InternationalMaritime Organization (IMO) for all oiltankers and bulkcarriers worldwide, ac-cording to Carlsen. After years of severedamages and tragic accidents of oiltankers and bulk carriers, IACS estab-lished a working group to come up witha more rigorous system for inspection ofthese ship types, Carlsen said. Thisgroup was led by Carlsen as chairman in1992 and developed the ESP that ismandatory for all tankers and bulk car-riers today.

Another notable achievement ofCarlsens came after the tragic collapse

of the semisubmersible Alexander Kiel-land in 1980. Carlsen led a task forcethat cooperated with the NorwegianMaritime Directorate, issuing rules in1981 for designing mobile offshore unitsthat introduced new industry principlesfor more robust design, constructionand in-service inspection. The Alexan-der Kielland accident caused the deathof 123 workers in a severe storm outsideNorway. We developed a new set of ru lesfor mobile offshore units to improvetheir robustness to cope with the harshenvironment in areas like [the] NorthSea, Canada and [the] northern part of

Norway, C arlsen said.As a result of this, most semisub-mersible platforms voluntarily adoptedthe DNV 1981 rules in the followingyears, and the major principles werelater adopted by the IMO Mobile Off-shore Drilling Units Code 1989, accord-ing to Antony DSouza, director of Gulfof Mexico operations for DNV.

Moving forward, Carlsen is anxiousabout the offshore industrys generationof engineers. My current concerns arehow we shall counter a natural evolutionthat new generations of engineers do notlearn and [how they will be able to] seethe hard facts behind safety require-ments, which often have been developedbased on severe accidents, Carlsen said.

My focus now and forward is to con-tinue learning from the performance ofthe offshore industry and to see how wecan be proactive to implement measuresthat will ensure safety in a cost-effectiveway. My role now as an adviser is towork with younger engineers and togive them input on the background fortodays safety requirements and the con-stant need to keep ahead of new indus-try challenges.

OTC Rconizs Forr DNV Board mbr forAdvancnts in Saft, Rliabilit With DNV for nearly 40 years, Carl Arne Carlsen has been instrumental in leading effortstoward a safer industry.

By ArIAnA BEnAVIDEZ


Cal Ae Calse


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The OTC Awards Committee annually recognizes in-dividuals and companies as recipients of the OTCDistinguished Achievement and Heritage awards. isyears Heritage Award was presented to Susan Cunning-ham in recognition of her exemplary leadership andoutstanding technical contributions in the Gulf of Mex-ico (GoM), West Africa and the Eastern Mediterraneanregions, according to the OTC website.

Cunningham began her career more than 30 years ago asa geologist with Amoco Canada. She is now the senior vicepresident of the GoM, Africa, frontier ventures and businessinnovation divisions for Noble Energy. She was also the

chairperson of OTC in 2010 and2011, during which time sherepresented the American Asso-ciation of Petroleum Geologists.

Cunningham said her rstreaction to being named thisyears award recipient wascomplete surprise and disbe-lief. I have contributed to theselection process for awardssuch as these in the past, andthey are for people who have

made it. I feel like I have so much more to do, she said.To be recognized in this way is humbling. I am incred-

ibly thankful, incredibly uncomfortable and incrediblyhumbled. In all honesty, it gives me pressure to live up tothe bargain. To do more. To make a bigger difference.

Cunningham said one of her biggest accomplishmentsregarding the offshore industry was while she led global ex-ploration, geoscience and new ventures at Noble Energy for12 of the 13 years she has been with the company. Overthat time, our exploration capabilities improved dramati-cally. Our discoveries helped fuel the rapid growth of thecompany over the last ve years and are expected to con-tribute more than 25% of the companys production by2018, she said. One of the things I am most proud of is thestring of exploration successes in the Douala Basin offshoreEquatorial Guinea and Cameroon as well as the Levant

Basin offshore Israel and Cyprus since 2006.

Noble Energy has discovered 1.1 Tcm (40Tcf) in the Levant Basin and 1.2 Bboe in theDouala Basin, according to Cunningham.Some of these discoveries are already online,producing and making a difference in thelives of the people in these countries, shesaid. We plan to develop many more overthe coming years. ey are transformational.

Cunningham also is proud of the com-panys contribution to improving the lives ofthe people in Equatorial Guinea. Noble En-ergy has invested more than $13 million tosponsor a successful antimalaria program.e program has helped reduce the malariaparasite by 70% in children under 15 yearsold since 2004, according to Cunningham.

It also contributed to a decrease in mortalityrates in children under 5 years old from 152to 55 per 1,000 in 2012. e malaria projecthas an added dimension this year, which in-cludes support for testing a malaria vaccinebeing developed, Cunningham said. Ifsuccessful, this vaccine could eliminatemalaria as a disease. is obviously has avery global potential impact. It would bevery satisfying to make this possible.

Regarding her concerns for the offshoreindustry today, Cunningham said, As anindustry, we are only as good as our weak-est link. If anyone in this industry does notlive up to the expectations that communi-

ties demand and deserve, we are all failing.It is our business to safely and responsiblydeliver energy and improve lives. She saidthe industrys responsibility to society, theplanet and life on this planet should neverbe taken lightly.

To address these concerns, Cunninghamsuggested that solutions be based on specicoutcomes. If we stop listening and talk ateach other to achieve our own agendas in-stead of with each other for agreed-upon out-comes, we are unlikely to nd good solutions.People fall into defensive mode, into winnersand losers, she said. We need to persevereto nd solutions that are innovative and goodfor all. Over the long term, value creation forall is greater. We need leadership for solu-tionsnot tactics for winning.

During OTC, a networking event fo-cuses on women in the industry. Cunning-ham said the oil and gas industry needswomen to join who are interested in ca-reers in this eld. It is technically challeng-ing, innovative and really fun, she said. Itis an industry where you can make a hugedifference to people, communities andcountries. is industry needs all the di-verse perspectives, voices, approaches andtalents it can get.


Forr OTC Cairwoan Incrdibl hubldto Win 2014 hrita Award Susan Cunningham is on a journey to do more in the industry.

By ArIAnA BEnAVIDEZ

Ssa Cia


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Every year OTC recognizes individuals and compa-nies that have made a signicant impact or contri-butions to the industry by presenting them with the OTCDistinguished Achievement and Heritage awards. is

years Distinguished Achievement Award for Companies,Organizations and Institutions was presented to BP forits Clair Ridge development.

is award recognizes the deployment of BPs LoSalEOR technology in the Clair Ridge development, locatedwest of Shetland, U.K. e effort represents the rst sanc-

tioned full-eld offshore use of the LoSal EOR technol-ogy, which was developed by BP to increase oil recovery,according to the OTC website.

BP is delighted and honored to receive this prestigiousaward, said Ahmed Hashmi, head of BP upstream technol-ogy. e recognition is a welcome validation of our teams

commitment to

EOR technology.Its been a longjourney to getfrom the labora-tory through toeld trials andthen to deploy-ment of LoSalEOR. Having theindustry recog-nize our projectand achieve-ments is indeedvery rewarding.

The com-panys EOR

technology teamlearned that re-ducing the salin-ity of seawaterfor waterflood-ing instead ofusing conven-tional seawater

releases more oil from the rock surfaces.LoSal EOR has the potential to improvethe outcome of waterflooding at the fieldlevel by up to 10%for a cost as low as$3/bbl, according to the company website.BP said 500 MMbbl of additional net pro-duction could be unlocked from its reser-

voirs using LoSal EOR.e team overcame an assortment ofchallenges during this project, according toHashmi. rough years of commitmentand management support, BP has createdan integrated EOR solution that encom-passes chemical sciences, facilities engi-neering and eld operations, he said. etechnology is underpinned by a lot of soliddata covering laboratory to near wellboretests to the gold standard of an interwelltrial. BP-operated elds currently producemore than 10% of the worlds light oil EOR.is technology should unlock yet moreproduction and make a big difference tothe way we as an industry view the worldsenergy resources.

On behalf of BP, James Dupree, COO ofreservoir development and technology,was scheduled to receive the award onSunday, May 4, at the Annual OTC Din-ner. Representatives from BPs EOR tech-nology team from both the U.K. and theU.S. planned to attend the dinner. e An-nual OTC Dinner will be reviewed furtherin the Tuesday paper.

For more details on BPs EOR technology see

the contributed article on page 22.

BP honord for Clair Rid Dvlopnt Tcnolo EOR solution, if used worldwide, could deliver billions of additional barrels of oil.

By ArIAnA BEnAVIDEZ

Jaes Dpee

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Asubsea BOP is among few pieces of equipment thatcombines multiple functions as an operations con-trol, risk prevention tool and emergency response tool.

When a BOP fails, it is challenging for operators to objec-tively assess the risk and determine whether

to continue with drilling operations. e in-dustrys typical response is to analyze the pos-sible consequences and perform a riskassessment to dene the risk levels. ese riskassessments and consequent discussions typ-ically require several days to complete, whichcan cost a company millions of dollars innonproductive time (NPT).

Drilling contractors and operators areresponding to the challenge of assessingdrilling risks by innovating better solu-tions. Lloyds Register Energy developedthe BOP risk model to help with the risk-based decision making on whether a BOPneeds to be pulled.

e BOP risk model was developed to-gether with a drilling contractor, a BOPrisk model review panel, Bureau of Safetyand Environmental Enforcement repre-sentatives, a group of well control experts,subsea specialists and operational mana-gerial staff from ve contractor and oper-ator companies active in the Gulf ofMexico (GoM).

We recognized that operators and con-tractors were spending an extensiveamount of time identifying problems andmaking the decision to either continue op-erations or pull the BOP, said Pieter vanAsten, business concepts manager atLloyds Register EnergyDrilling. We de-veloped the BOP risk model to speed updecision making.

Building the risk model

A BOP risk model can typically includemore than 730 modeled components,1,300 failure modes and 450 fault trees.e model is built using an extensive step-by-step risk engineering process by devel-oping logic block diagrams for eachfunction on the BOP and completing fail-ure modes and effects analysis. is infor-

mation is then used to develop the necessary fault trees.Each BOP risk model is custom-built for a specic BOPusing the piping and instrumentation diagrams and orig-inal equipment manufacturer manuals.

e BOP model can be customized for any regionworldwide by using regional regulations, specications

and operational procedures. It consistently and accu-rately assesses and renders a preconsidered, risk-baseddecision aer a component failure is identied in hoursinstead of days, saving operators time and money.


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offshore operators are committed to personnel andasset protection in high-pressure environments.High-integrity pressure protection systems (HIPPS) areincreasingly being used to provide pressure protectionand as a viable solution for lower aring and decreasedfugitive gas emissions. HIPPS address many differentchallenges. In addition to the reliability needed to per-form the safe emergency process shutdown, verication,validation and proof test procedures are used to ensurethe required safety integrity level (SIL) is addressed andmaintained throughout the entire HIPPS safety life cycle.

HIPPS are designed to prevent overpressure by shut-ting the source and capturing the pressure in the systems

upstream side. is offers a barrier between the produc-tion facilitys high- and low-pressure sides. e tight

shutoff prevents containment loss and eliminates fugitiveemissions.

A typical HIPPS will include two or three nal ele-ments in series, oen required to shut down within 2 secto 3 sec for gas and 6 sec to 8 sec for liquids, dependingon pipeline pressure, ow rate and the diameter and classof the pipeline.

e initiator of the shut-down sequence (peak pressuresurge) is detected by a pressure sensing system. Sensorsare connected to the logic solver, which is congured tovote with a two out of three logicthe usual designpreferred. If predened pressure parameters are ex-ceeded, the logic solver will shut down the nal elementsand the process.

Challenges

Challenges in the HIPPS environment canbe split into three components: analysis,design and operating performance.

Analysis requires the operator to per-form a hazard and operating study and riskassessment to identify potential processrisk. Once the risk is identied, a risk re-duction factor (RRF) will be selected to en-sure the potential risk is reduced to an

acceptable level and dene the SIL forwhich the HIPPS will need to be designed(1/RRF equals SIL).

Design is challenged by the lack ofstandards outlining the design parame-ters of HIPPS. Whereas conventionalpressure relief designs use prescriptivestandards like ASME and BS, HIPPS aretied into the safety-instrumented systemusing performance-based standards likeIEC 61508 and IEC 61511. A well-known U.K. HSE analysis of incidentsreported that 44% of the primary causewas related to poor specifications.Whereas SIL will protect against random

failures, systematic failures due to poorspecifications can only be addressedthrough the use of IEC 61511 in the de-sign phase. To ensure HIPPS system re-liability, engineers need to pay closeattention to the basis for the calculatedfailure rates given by the manufacturerwhen they select control components.

Operating a HIPPS also presents differ-ent challenges compared with conventionalpressure-relief systems. ere is oen a fearof losing control during scheduled tests,which can result in tests being incompleteor avoided altogether, impacting the re-quired safety level. e safety life cycle de-pends on the frequent testing anddiagnostics of all components in the shut-down circuit.

Advantages

Since HIPPS require the successful func-tioning of multiple devices, their design isoen more complex than that of a safety re-lief valve. However, there are clearly moreadvantages than negatives associated withthese systems. One is the reduction of fugi-

hIPPS Offr Solutions for Offsor Oprations Technology provides high-integrity pressure protection.

By CArSTEn ThgErSEn,EmErSon ProCESS mAnAgEmEnT


hIPPS-cfied actats ae beieadied f sipet t a Steast Asia

pdcti facilit. (Sce: Ees

Pcess maaeet)

See hIPPS

ctied pae 28


15/48

New Go Deep Focus At Douce HydroOur Advanced Technologies, Expanded Capabilities & Partnership Values Are Boosting Drill Rig

& Floating Production Storage Performance And Total Cost Of Ownership

Its not just how to increase oil production anymore, its about

improving production uptime, reducing drill rig time to mar-

ket (in-between contracts), lowering capital investment while

improving efficiency & most importantly, time to crude. Sim-

ply put, it s about understanding the direction and the formi-

dable tasks that drill rig & FPSO owners are faced with

enabling new deep water oil production that supports global

demand. Its about responding to these challenges with ad-

vanced technologies that deliver on both deep water per-

formance, extreme reliability & with expanded capabilitiesthat lead the market in br inging these advanced solutions to

market faster than ever before.

Todays Douce Hydro boasts:

The largest manufacturing capacity in the world for large

custom bore cylinders with the shortest lead time to market

The most advanced cylinder rod protection technology

in the industry via LASERTEK 1000 featuring:o The highest degree of corrosion and cylinder rod

scratch resistance in the industry

o Eliminates the average 5 year life cycle need to up-

grade or rehab cylinders

Complete in-house manufacturing & assembly process

yielding the highest degree of quality applied in theindustry

Dedicated engineering and project management teams

that work as an extension of our customers organization

Turning Heads With Our Go Deep Partner-

ship ValuesCurrent business processes used within the sup-ply chain today are not structured well to alignwith addressing future market demands, at leastefficiently. Drill rig & FPSO owners understandhow to use hydraulic cylinders but are not ex-pected to be the experts with hydraulic cylindertechnology or the manufacturing process break-throughs that can be applied to enable businessresults that have never been experienced before.

Douce Hydro is well positioned to enable: 100% focus to on-time drill rig &

FPSO delivery

o 100% focus to on-time custom designedhydraulic large bore cylinders (drillstring compensators, wire line tension-ers, production riser tensioners, moor-ing cylinders, skidding cylinders, etc.)

Shortest delivery lead times in the in-dustry gets drill rigs drilling & FPSO timeto crude fastero Cylinder rehabilitation for drill rigs &

FPSOs in-between contractso New cylinders for new build drill rigs &

FPSOs Improved protability

o Due to 100% on-time deliveryo Due to quality that eliminates 5 year life

cycle of rehabbing wire line tensioners,drill string compensators and chain jackmooring systems

o Due to supplier reduced costs resultingfrom partnership

o Due to reduced and/or elimination ofnes/penalties resulting from workstoppages/interruptions

Precision Alignment of New & Propri-etary Technologyo Collaborated designs lead to unique so-

lutions Reduced Organizational Cost Via Higher

Organization Efficiencyo Via dedicated engineering, customer serv-

ice, project management and eld serviceteams as an extension of your business

Douce Hydros Reputation And ReliabilityYields Relevant Value Across All Critical O & GSegmentsDouce Hydros reputation for unquestionablequality, cutting edge technologies, customerservice, engineering capability and the shortest

delivery lead time in the industry reaches acrossa variety of critical segments within the Oil & GasIndustry starting from drill string compensationsystems, subsea blow out preventers, hydrauliccrane actuation to linear chain jack mooring sys-tems. As an example, our technology will play animportant part in the exclusive actuation for thenewest, deepest water and most technically ad-vanced FPSO mooring system in the world.

So Go Deep isnt a slogan. Its not just an adver-tisement. Its an attitude. Its a bold statement.Its what will deliver critical results in deep waterdrilling & production. The question is

Are you ready to GO DEEP?

www.doucehydro.com


16/48


global operators need equipment able to handledeeper water and higher pressures, as well as morestandardized systems for the vast number of smaller tie-in and expansion projects around the world. But once in-stalled, there is also strong demand for improvedsolutions with regard to ongoing repairs needed for pro-ducing elds. Reducing nonproductive downtime is a keyissue for offshore operators today.

e ability to repair pipelines remotely becomes criticalas water depths of eld developments go beyond divinglimits. While there have been several proposed solutionsavailable, very few repairs have been carried out remotely,according to Subsea 7. In October 2012, a Houston-basedteam comprised of Subsea 7, Quality Connector Systems

LLC and Stress Engineering Services Inc. successfullycompleted a repair in 975 m (3,200 ) of water from a

light construction vessel, the M/V Grant Candies.A paper to be presented at OTC on Monday, May 5,

by Subsea 7s Lance Brown titled Deepwater PipelineRepair in the Gulf of Mexico focuses on this operation,which set out to assess damage to the pipeline, removepipeline coatings and install a diverless repair clamp con-nector. ere also was the limitation that all the work hadto be carried out using only workclass ROVs.

Detailed engineering, planning, ROV tool interfacingand a complete system integration test including equip-ment trials were critical to minimizing vessel downtimeand meeting an aggressive schedule, according to Brown.His paper will review the current state of remote inter-vention-based pipeline repair technology and provide an

overview of the challenges faced when dealing with reg-ulatory agencies (BSEE/BOEM), as well as lessons

learned in implementing this repair. It will also outlinethe considerations for transferring this crucial technol-ogy to greater water depths and harsher environments.

Another Subsea 7 paper to be presented on Mondayby Mick Fowkes, is focusing on a different aspect in thesubsea spectrumthat of remote hydrocarbon sampling.Fowkes said in his paper that as the need to exploit off-shore deposits in increasingly challenging environmentsincreases, the economic development and safe operationof technologies has become even more critical.

e requirement to sample and establish the characteris-tics of produced well uids has been long established in orderto provide uid composition and ow data for each well,reservoir management philosophy and scal allocation.

Traditional methods for sampling and test-

ing of wells employed the use of a dedicatedsubsea test header, pipeline or riser connectedto test separators and individual single-phaseow meters located on a surface productionfacility, according to Fowkes. But as produc-tion has moved to deeper water, multiphaseometers (MPFMS) have been introducedto monitor or meter individual well pro-duction, prior to a production manifoldcombining the production from severalwells for onwards transport in a single riseror owline.

Since reservoir and well uid characteristicsalter over their life cycle, he says it is essentialthat MPFMS be recalibrated to account forthis to ensure their continued accuracy.

Fowkes paper outlines work by Subsea 7in developing and operating an ROV-de-ployed remote hydrocarbon sampling skidcapable of taking separate samples from upto eight individual wells in a single dive.

During operation and recovery the tem-perature and pressure of the samples aremaintained to prevent the sample comingout of phase and to prevent hydrates form-ing in the sample, or skid pipework. On re-covery the sample bottles are removedfrom the skid and transported ashore foranalysis to allow calibration of MPFMs andfor scal allocations to be determined.

Pipeline and riser bundles have been

around for some time, but a fresh look atall aspects of the offshore industry is alwaysworthwhile.

A paper by M. Goodlad of Subsea 7 onMonday will look at the synergies betweenthese two proven bundle systems, based onextensive track recordsin this case, 70pipeline bundles over 35 years and six riserbundles over 15 years.

Despite the two bundle systems being de-veloped independently, the synergies betweenthe design requirements, the components andthe towing requirements are remarkable, ac-cording to Goodlad. is shows thatdespitethe different applicationsthe technology hasbeen developed with the same technical un-derstanding, demonstrating how the mergingof different technologies can bring benets tothe industry.

His presentation will describe fabrica-tion and installation methods for bothbundle systems and review the similaritiesand differences between the two systems.e synergies result in enhanced capabili-ties for bundle systems, including im-proved system operating performance and

Risin to t Subsa Calln e fast-expanding subsea market remains the offshore industrys boom sector.

By mArk ThomAS


See SUBSeA

ctied pae 34


17/48


In building a better mouse trap, how do designers accountfor the actions of the mouse? e same question is oenasked about humans when designing offshore facilities andinstallations. Session chairmen Kevin P. McSweeney andWilliam Henry Cowardin will host the

Human Factors in Engineering session onMonday morning, May 5, that will look athow answers to the question of designing abetter facility are acquired.

Invited speaker Jennifer McGovern Narke-vicius will kick off the mornings discussion.She is managing director of Jenius LLC, aconsulting rm providing engineering andtechnical support for Systems Engineeringand Human Systems Integration policy,process and practice. Her work has focusedon identifying systems requirements for hu-mans in research, engineering, testing andevaluation in a variety of applications.

D.M. Hollaway of ABS Consulting Inc. willpresent a paper titled Human Factors Analy-

sis and Classication System (HFACS): In-vestigatory Tool for Human Factors inOffshore Operational Safety following theopening presentation. Developed by Dr. ScottShappell and Dr. Douglas Wiegmann for theU.S. Navy, HFACS is a broad human errorframework that was originally used to inves-tigate and analyze human factors aspects ofaviation mishaps. HFACS has been adaptedfor use in offshore oil and gas operations.

Julie Pray of ABS Consulting will present apaper titled Implementing Human FactorsEngineering in Offshore Installation Design.e focus of the paper is on how the humanelement in effective design is addressed

through Human Factors Engineering (HFE).HFE is a unique and specialized engineeringdiscipline that integrates human behavioraland physical capabilities and limitations withtraditional engineering disciplines to producea human-system interaction that maximizesthe best of both.

Reporting Practices for Close Call (NearMiss) Reporting Systems will look at the bestpractices for reporting close calls in the mar-itime industry. e best practices identiedin the paper written by B. Craig, R. Papillon,J. Curry and W. Zhu of Lamar Universitywere identied by reviewing about 44,000 ac-tual close call reports from 27 data sources.

In Human Factors in Hazard Analysis, byB.R. Poblete, C.W. Parker, S. Ranasinghe andM. Gandhi of Atkins, a practical overview tothe consideration of human factors in hazardanalyses to support the design and operationof oil and gas installations is provided.

G. Chaudhury and A. Whooley ofWood Group Kenny in their paper titledArt, Science and Engineering of Manag-ing Offshore Field Development Econom-ics and Risks presents the strategy,technology and step changes necessary forthe successful development of economi-cally challenged elds.

C. Hudson, Chevron, A. Rastogi, Kongsberg Oil & GasTechnologies Inc., and T. Bhaumik, GVA North Americain their paper Jack-St. Malo Marine Operator TrainingSimulator, focus on the design, development and appli-cation of a marine training simulator for operators ofChevrons Jack-St. Malo installation. e simulator

proved to be a useful training tool in a variety of scenar-ios, including the conducting of training lis for the pro-duction, generation and compression modules beforethe actual lis were conducted in the installation yard.

e session will be held in Reliant Center room 600 from9:30 a.m. to 12 p.m.

Buildin a Bttr mous Trap Technical session looks at human factors and their impact on the design of offshore installations.

By JEnnIFEr PrESLEy


18/48


The first decade of a young professionals career setsthe foundation for future growth and advance-ment. Marking the transition from a university studentto an industry professional, these first several yearsherald in a time of building networks, learning newhabits and applying important skills relied on for therest of ones career.

With a theme of e First Decade: e Foundationof Your Career, the 2014 Next Wave Program duringOTC will focus on how young professionals can makethe most of the rst 10 years of their careers. Seasoned

industry professionals will discuss topics like buildingand maintaining a strong network, setting yourself apartfrom your peers in a competitive environment, leverag-ing mentoring and building career success.

e program will lead with keynote speaker Leigh-Ann Russell, vice president of performance, global wells,at BP. ree empire sessions will follow, featuring aspeaker and roundtable discussion and focusing on therst three stages of a young professionals career: yourbeginning: the rst ve years, your recognition: ve to10 years and your acceleration: 10 years and beyond.

With a long projected future, the industry offers manygreat challenges to keep professionals engaged for the en-

tirety of their careers. is is an excitingtime to join the energy industry, with a hugeamount of opportunity out there for peoplewho want a rewarding, challenging career,Russell said. In particular, the big crewchange will open up opportunities for a newgeneration of highly skilled engineers. Inorder to make the most of their energy ca-reer, people should strive to make a differ-ence and think about the contributionbigor smallthat they can make every day.

e oil and gas industry has historicallybeen able to attract and retain some of the

best and the brightest, but the industry stillhas a long way to go in helping young pro-fessionals understand the great opportuni-ties it offers. Too many portray ourindustry as archaic and unsafe, but thiscould not be farther from the truth, Rus-sell said. We employ some of the most ad-vanced technology of any industry, and ourcommitment to safe and reliable operationsis unwavering.

How young professionals spend the rstseveral years of their career can have lastingeffects down the road. As with anythingwe build, without a solid foundation, thereis nothing to build on, said Russell Scott,

2014 Next Wave chair. We must rst en-sure the foundation is well designed andwell executed before we start to build any-thing on top. A career is much the sameway: You cannot go very far up without asolid foundation.

e program seeks to encourage net-working among attendees and promote thepassing of knowledge from experiencedleaders. With the well-discussed genera-tion gap of the oil and gas industry at hand,there is so much knowledge that will soonbe disappearing forever as some of the cur-rent leaders retire or move on to other ven-tures, said Scott, who is serving his fourthyear on the programs planning committee.I feel its our duty as young professionalsto take advantage and absorb as much ofthis knowledge as possible.

ose just starting out should be prepar-ing themselves to step into leadership rolesand ll the gap that will come from the bigcrew change. Young professionals cur-rently in the industry should be preparingthemselves by gaining the experience andmastering the skill set required, Scott said.

Buildin a Succssful Foundation in t Oiland gas Industr e Next Wave Program encourages young professionals to make the most of the rst 10 years of theircareers for future growth.

By mAry hogAn

kete speae Lei-A rssell

seves as vice pesidet f peface,lbal wells, at BP. (Sce: BP)

See NexT WAVe

ctied pae 34


19/48

Welcome to OTC 2014! Whether youre here to growyour professional expertise, grow your network,showcase a new product or share best practices, you rec-ognize the value of being an active part of the global, off-shore technology community.

ats also the driving force behind OTC social media.

Using Facebook, LinkedIn, Twitter, Instagram andYouTube, OTC 2014 attendees, exhibitors and enthu-siasts have instant access to a global conversation,specific to the OTC community. A common miscon-ception is that only social media experts understandwhat this type of communication has to

offer. But the truth is, anyone can jointhe conversationits all about knowinghow to use it.

Social mdia FAQs

Who is using social media at OTC?Peoplejust like you! Seasoned industry profession-als, young professionals and studentsallwith a passion for offshore technology. Aspart of the OTC social media team, we con-nect with attendees and exhibitors year-round to facilitate conversation, share newsand grow the OTC network.

How are they using it?Attendees and ex-

hibitors use social media to share theirOTC experience. Connect with a companyyou met on the exhibition oor. Post aquestion or comment about a technicalsession or activity you attended. Make pro-fessional and personal contacts with othersin Houston and from around the world atOTC 2014.

Why should I connect?Conversations aretopical to the OTC experience and the off-shore technology industry in particular.Aer OTC is over, youll still be able to vir-tually connect, network and share withlike minds; share papers and takeaways

from OTC; discuss the latest offshore in-novations and technology; and connectwith individuals from all parts of theworld. Our platforms are a one-stopshop for all of these thingsall right atyour ngertips.

What does my participation mean to

OTC? Social media is a major force be-hind OTCs continued success. Wegather comments, thoughts, feedbackand insights from both attendees and ex-hibitors to understand how we can takeOTC to the next level. From incorporat-ing state-of-the-art technology to creat-ing more networking opportunities andenhancing technical sessions, socialmedia empowers you to share your OTCexperience!

When should I start using social media?

Dont wait to connect with OTC! Use thecorresponding social media guide to ndthe platform thats best for you. Be sure totake advantage of the OTC mobile app, too.ere you can view our live Facebook,Twitter and LinkedIn feeds.

Happy connecting!

A gLoBAL ConVErSATIonSocial media provides an easy way for OTC attendees to connect, share.


By moLLy BrITT, oTC CommunICATIonSSPECIALIST, SoCIAL mEDIA STAy ConnECTED

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20/48

Anew way of thinking and practicing geoscienceswith the aid of geoethics will be the topic of theEthics Breakfast at 7:30 a.m. on Monday, May 5, atOTC 2014.

is marks the rst presentation addressing geoethics ata major oil and gas conference. Originally Dr. Silvia Pep-poloni, secretary general of the International Associationfor Promoting Geoethics (IAPG) and Ph.D. researcher atthe Italian Institute of Geophysics and Volcanology (INGV),was the scheduled speaker. Due to a scheduling conict, shewill be replaced by Salvatore Barba, senior researcher atINGV and a member of IAPG. However, in an April inter-view Peppoloni shared her thoughts on the importance ofgeoethics as it relates to the oil and gas industry.

Geoethics deals with the ethical, social and culturalimplications of geological research and practice, pro-

viding a point of intersection for geosciences, sociologyand philosophy.

e interest in developing geoethics themes is increas-ing everywhere, Peppoloni said. Different problems, dif-ferent economic and social conditions and differentcultural contexts can inuence what topics get more at-tention by the scientic community and the public.

She cited the debate in India and several African coun-tries on the exploitation of georesources and all the re-lated consequences in terms of sustainability as well asthe focus in the U.S. to promote the teaching of geoethicsto young geologists as two of the issues in geoethics. Shealso highlighted the ethical discussion in Italy about nat-ural risks mitigation, communication and geoeducation.

Peppoloni said the offshore development communityneeds to be concerned. Offshore activities are necessary

but have a strong impact on the environment and soci-ety, she said. e use of these technologies produces ahuge disturbance on the marine environment, resultingin physical, chemical and biological changes. e reper-cussions are not easily predictable.

She noted that the equilibrium of the marine environ-ment is extremely delicate, and all the oceans ecosystemsdepend on it. is does not mean we have to stop anykind of marine activity, but this impact must be carefullyconsidered by allocating adequate economic investmentto study its mitigation.

Peppoloni believes the industry should work even moreto improve technologies for the protection of the environ-ment. Oil and gas companies cannot ignore these issues,

because the cost of remedying the environ-

mental emergencies created by ignoringthem could become enormous, she said.She suggested operational strategies

and practices should be properly evalu-ated and developed through a multidisci-plinary approach.

Geoethics provides a vision on which tobase the best practices toward the geosphere,Peppoloni said. A sustainable world also canbe economically benecial to society as awhole. is might seem like a utopia, but weare now facing an epochal change of values,and we need utopias, she said.

One trend that encourages Peppoloni isthe inclusion of ethics committees forlarge European research projects. Their

task is to assess the impact on the envi-ronment and ensure that strategies to op-erate in an environmentally friendlymanner are worked out during all phasesof project development.

Peppoloni hopes breakfast attendees willgain a new way to think about geosciencesas tools for appropriate management of theplanet. Geosciences are not just a collec-tion of useful scientic information; theyalso represent a cultural resource capableof inuencing our future, she said. Con-sidering the current global and complexproblems such as climate change, thesearch for new sources of energy and the

need of a sustainable approach to the envi-ronment, an ethical perspective in the geo-sciences can be helpful.

Using geoethics as a frame of reference,Peppoloni believes the industry can en-sure actions are more respectful towardthe environment. Globalization is a fact,she said. It is a contradiction to feel our-selves immersed in a globalized worldand, at the same time, claim to act for ourown, although legitimate interests, with-out taking into account the inter-relation-ships among us and the world in which welive. Earth sciences teach us that these re-lationships operate on a global scale andmuch of what we can do is in our hands.Geoethics can guide us toward a newmodel of development.

gotics Provids Vision for Bst Practics e oil and gas industry must continue to examine ethical, social and cultural implications of geological research.

By mJ SELLE


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21/48


The Environmental Protection Agency (EPA) isdriving to greatly reduce the release of volatile or-ganic compounds (VOCs) at the well site withoutslowing natural gas production. The new federal airstandards are expected to yield a nearly 95% reduc-tion in VOCs emitted from more than 11,000 new hy-draulically fractured gas wells each year, making thetransition to green completions paramount to shaleoperations. Camerons ECO2 production systemmaintains high-gravity oils liquefied state, reducingwellsite emission by as much as 95%.

Leveraging its knowledge of processsystems, the company developed theECO2 production system to address thenew emissions requirements, providingboth an ecological and economical solu-tion. By virtually eliminating vaporizationwaste and keeping high-gravity oil underpressure, the ECO2 system can deliver upto a 10% increase in production yield,capturing more sellable product.

ECO2 production technology

When the pressure on high-gravity oil isreduced from reservoir pressure downto storage tank pressure, NGL flashes offfrom the liquid phase of API gravity

crude of 50API or higher. These volatilehydrocarbons can contain propane, bu-tane and pentane, and their vaporizationoften causes shrinkage in storage tanksand a loss in total production.

A common practice is to contain andburn these vapors by either flaring or in-cineration. Camerons production sys-tem prevents the NGL from flashing offand allows accurate measurement of oiland gas production from the producingreservoir. The proactive system keepsproduction fluids in a liquid form, al-lowing for more sellable product and ac-curate measurement of production from

the well. Also, keeping NGL in the oilwill reduce the cloud point for oils con-taining high amounts of wax, thus re-ducing or eliminating the need forexpensive chemical additives.

The customizable ECO2 productionsystem includes three major pieces ofequipment: a patent-pending CrossStream Integrated Production Unit(CIPU), a modular oil stabilizer withdistinctive features and an electricalpower generator. The CIPU allows pro-ducers to accurately measure well pro-duction and retain NGL starting withday one of production. When the pro-ducers oil gathering system is in place,the oil stabilizer and storage tanks canbe removed from the well site. The sta-bilizer operates at higher pressures, usesan NGL reflux system to maximize NGLcontent while maintaining desired Reidvapor pressure and use s a force d aircooler to reduce temperature and de-crease emission.

The companys production system en-sures that operators have a clear plan forenvironmental compliance. It also enablesoperators to capture the gas and monetizeassets that would otherwise be lost.

Production Sst hlps Oprators mtePAs Nw eission mandats New production system technology helps to reduce wellsite emissions by as much as 95% and delivers upto a 10% increase in production yield.

By AShLEy orgAn, CAmEron

Caes ptiized pdcti ifastcte w feates te ECo2 pdcti sste. (Sce: Cae)


22/48

With its Clair Ridge Field in the North Sea, BP is takinga big step forward in EOR technology for the industry.e company is honored to receive recognition for this

important advancement with the 2014 OTC DistinguishedAchievement Award.

In 2016, when the Clair Ridge Field is expected to start up,all eyes in BPs EOR technology organizationand, indeed,many in the industry itselfwill be watching. e projectwill mark the worlds rst full-eld deployment of BPs LoSalEOR technology.

e startup will be the culmination of a 20-year research,trial and deployment program in the company. LoSal EOR

has been rigorously tested more than 70 times in the labora-tory and also in the eld, proving its effectiveness at recov-ering more oil from the reservoir.

As breakthrough technologies go, LoSal EOR is based ona relatively simple concept: More oil can be recovered froma reservoir using reduced-salinity waterooding than higher-salinity waterooding. However, according to oil industrywisdom, nothing too fresh should be injected into thereservoir, or the clays within the oil-bearing sandstones canswell and reduce the ability of the oil to ow.

Conventional waterooding is largely a physical processto recover oil trapped in reservoirs; by injecting water in onewell, it sweeps the oil toward a producing well. BP started tolook at the chemistry of recovery, investigating what happens

at a molecular level when oil and rock interactand what can inuence that interaction.

e company observed that oil moleculesare bound to clay particles by bridges of di-valent cations such as calcium or magnesium.In high-salinity water, these bridges are com-pressed to the clay surface by electrical forces.But by reducing the salinity, this force is re-duced and the bridges are able to expand, al-lowing nonbridging monovalent ions, likesodium, to access and replace the divalentions. e oil molecules are then freed to beswept toward the producing wells.

At Clair Ridge, LoSal EOR is forecast to de-

liver more than 40 MMbbl of additional oil,and it is low costwith each incrementalEOR barrel costing just an additional $3/bbl.

BP believes LoSal EOR is the single biggeststep change since waterooding began, withthe potential to improve the outcome of wa-terooding at the eld level. Across the indus-try, this represents billions of barrels ofincremental oil from existing elds.

e company proved the technology longbefore sanctioning its deployment at ClairRidge. Since then, the company has been in-creasing its investment in R&D of new break-through EOR technologies. Alongsidetechnology development, the company has

built modeling and simulation expertise, cru-cial to understanding and optimizing the re-covery mechanism. BP has labs in the U.K.where it can rapidly screen new technologies,experiment under reservoir conditions andmonitor their performance using advancedimaging capabilities.

LoSal EOR is enormously important for BP.It is the companys default approach for all wa-terooding in new sandstone reservoir proj-ects. More than ve of the companys majorprojects worldwide are in various stages ofevaluation and development of LoSal EOR astheir secondary or tertiary recovery scheme.e company also is investigating how LoSalEOR might work in carbonate reservoirs.LoSal EOR also is the foundation on whichthe company is building a new generation ofDesigner Water EOR technologies.

Today, the company produces more than10% of the worlds conventional oil EOR pro-duction, which is more than any other inter-national oil company. As Clair Ridge comesonstream, BP hopes to maintain this lead andthrough robust workows, rigorous modelingand simulation and deep scientic capability,develop and deploy the EOR technologies toincrease its lead and deliver more energy forthe world.


BP Braks Nw ground, Wins OTC Award forNw eOR Tcnolo in Nort Sa EOR solution allows for increased recovery of oil from reservoirs.

ConTrIBuTED By BP

BP will depl its edced-saliit watefldi

(LSal Eor) i te Clai ride Field i te nt Sea.

Te statp f te field will cliate 20 eas f e-

seac, tial ad develpet b te

cpa. (Sce: BP)


23/48


Wat do ou rbr ost

about our first OTC?

In 1974 my partner Greg Zalar and I had Barchfeld-ZalarProductions, a photography production company. Wewere young kids, and we got the contract

to produce the audio visual show that ranin the Brown and Root (B&R) booth. eB&R booth was in the very center of theAstro Hall. Back then all three wings of theAstro Hall converged on the center of thehall, and Brown and Root/Halliburton wasright in the middle of the center of the hall.

e booth had a large tower in the centerof it. On two sides were rear projectionscreens. Our job was to have a synchronizedmultiprojector slideshow running on boothscreens simultaneously for nine hours a day.We installed redundant Kodak carousel pro-jectors in case of bulb outages or malfunc-tions. e slides were advanced by a pulsedtape on an expensive playback system. We

set up the system aer the booth was con-structed, and everything went well.

e client asked for a special preview thatSunday. We went in a rainstorm! e raincame in through the roof, fell onto the boothand shorted out our player. e two-hourSunday project turned into an all-day project.

On Monday Greg had to sit in the towerand manually advance the slideshow while Iwas out purchasing more recorder equip-ment. When I got to the B&R booth, I re-lieved Greg, and he installed the equipment.It was so hot in that tower with all the pro-jectors running that we worked shirtless. Bynoon the system was running perfectly. We

were exhausted and not sure we ever wantedto participate in another OTC. Gary Barch-feld, Barchfeld Productions

Having covered the offshore industry forless than one month aer leaving the DailyOklahoman in Oklahoma City, I wasmostly taken by how overwhelming thesize of the industry was. I was in awe of allthe technology on display. OTC was in theAstrodome, Astrohall, Astroarena and out-side. ere was no way anyone could seeall of the displays in only four days. ScottWeeden, Senior Drilling Editor, E&P

My rst OTC must have been in the mid-80s. Before then, conferences were aboutthe technical papers for me, and the ex-hibits were a distant second. OTC wasquite an eye-opener. Ben Bloys, Chevron

I was just shocked at the size and magni-tude of the equipment used in offshoreand in drilling operations. I was used toonshore EOR operations, mostly, and shal-low wells. Seeing wellheads and equip-ment sized to handle 1,000-bbl/d to10,000-bbl/d wells was just incredible.David Zornes, consultant

I missed the earliest shows done downtown at the Albertomas Hall. My rst OTC was in the Astroworld com-plex. It was more than hugeit was colossal! At the timethe entire oor of the AstroDome was available for ex-

hibits. Several land rigs were fully erected on the oor,and there was room to spare above the crown blocks.Dick Ghiselin, Quittitut Consulting

oTC recllectisAs the Offshore Technology Conference celebrates its 45th anniversary, long-time attendeesrecalled their earliest OTC experiences with fondness.

BOOTH 4916

COME VISIT US AT


24/48

As the days of easy oil have passed and the industrytackles rising energy demand, operators are moving intomore challenging deepwater areas to access oil and gas re-serves, opening up a new arena for technological innovation.

Global deepwater oil and gas production is currently ledby Brazil, the U.S., Angola, Nigeria and Indonesia, withBrazil and the U.S. dominating ultradeepwater production,a trend that is expected to continue to 2020 and beyond.

According to the Energy Industries Councils (EICs)DataStream, the companys global projects database,there are 284 deepwater or ultradeepwater projects pro-posed or under development globally, worth a total po-

tential investment value of $478 billion. More than halfof these157 projectsare located in Brazil, the U.S.,Angola, Nigeria and Indonesia (see Figure 1).

Technology has been a critical enabler for these pio-neering deepwater operations, allowing operators accessto hard-to-reach resources while balancing the prioritiesof safety, cost effectiveness and environmental impacts.

Technological advancement has been critical to deep-water production from Brazils presalt reserves, whereoperations in water depths of 1,000 m to 2,800 m (3,281 to 9,186 ) are common. Brazil is the world leader indeepwater activity, with 10 deepwater projects and 37 ul-tradeepwater projects currently proposed or underway,according to the EIC.

FPSO vessels, combined with complexsubsea systems, have become characteristicof development offshore Brazil. A key area ofinnovation for the industry has been tacklingthe safe production and processing of oil andgas below the surface, which requires an in-tegrated approach to data handling, commu-nication, monitoring and surveillance. Inparticular, due to both depths too deep forhuman access and distances of more than300 km (186 miles) from shore, a high levelof automation has been required.

Brazil is home to the major Libra ultra-deepwater project in the Santos Basin, which

holds estimated recoverable reserves of up to16 Bbbl of oil. Here a consortium made up ofPetrobras, Shell, Total, CNPC and CNOOChas launched a tender for an eight-year char-ter of an FPSO unit with capacity of 50,000bbl/d and 4 MMcm/d (141 MMcf/d) to pro-duce from the eld from 2016.

In the U.S. Gulf of Mexico (GoM), oatingspar and tension-leg platforms (TLP) are typ-ically used, along with subsea technology, toproduce from elds in water depths of up to3,500 m (11,483 ). ere are currently 14deepwater projects proposed or under devel-opment in the U.S., and 34 projects in ultra-deep water, all of which are in deepwater

areas of the GoM, namely the Green Canyon,Mississippi and Walker Ridge blocks.Many discoveries here have been large

and at increasing total depths, and the chal-lenge has been to develop equipment thatcan be operated and maintained safelyfrom the surface. At the beginning of 2014,Shell started production from its largestoating deepwater platform in the GoM,Mars B, the rst such project in the regionto expand an existing oil and gas eld withsignicant new infrastructure.

A number of operators also are targetingthe startup of some major deepwater proj-ects in the GoM region in 2014, includingChevrons Jack/St. Malo and Big Foot proj-ects and Hess Tubular Bells project. eprojects will use a semisubmersible, a TLPand a spar platform, respectively.

Looking to future deepwater develop-ments, FEED contracts have been awardedfor the Stampede project to exploit reservesfrom the Pony and Knotty Head elds. Op-erator Hess plans to use a drilling and pro-duction TLP with subsea wells to producefrom the elds, which are in water depths

Dpwatr Opns up a Nw Arna forTcnoloical Innovation Solutions allow operators to access hard-to-reach resources.

By nEIL goLDIng, ThE EnErgy InDuSTrIES CounCIL


Sw ee ae te be f deepwate ad lta-

deepwate pjects i te five st p-

lific cties. (Sce: EIC DataStea)

See DeePWATeR

ctied pae 45


25/48

As the geological complexity of wells increases and off-shore rig rates steadily rise, reliable models and predic-tions ahead of the bit become increasingly critical forproactive well construction decisions. Accurate, look-aheadinformation reduces nonproductive rig time and mitigatessafety and environmental risks. Operators have traditionallydepended on predrill seismic data and rock physics trans-forms for assessing geological hazards and pore pressure,while acknowledging their inherent uncertainties.

Engineers oen rely on wellbore measurements to cali-brate models and update formation property

estimates but only at or behind the bit. Moreproactive and condent drilling decisions arepossible if the subsurface model can be re-constructed ahead of the bit while drilling.

Schlumbergers new Seismic GuidedDrilling (SGD) service accomplishes theseobjectives by constraining the initialmodel using real-time data from the ex-ploration well itself, which is the most ap-propriate constraint for the local geology.e subsurface model is rebuilt in relevantdrilling time to be consistent with bothwireline and real-time LWD measure-ments behind the bit and predictive sur-face seismic data ahead of the bit.

e SGD soware platforms combine

surface seismic depth imaging andanisotropic velocity models with conven-tional inversion and rock physics models. Incollaboration with the operator, the Schlum-berger operations team converts data fromthe updated predictive 3-D model into datathat can be used to make drilling decisions.A processing phase of less than two days en-ables the operator to evaluate and executedrilling decisions, including those related totrajectories, casing points and mud weights,in a timely manner.

In a deepwater eld test, the service as-sisted in the positioning of a critical casingpoint by locating two geological faults ac-

curately. e Gulf of Mexico (GoM) oper-ators objective was to set casing below thesecondary fault to meet hole-size require-ments for the nal well. However, lateralvariations in geology and incomplete offsetwell data limited the reliability of the initialpredrill model.

e team incorporated real-time LWDcheck shot data and well logs to help createa new model and provide accurate look-ahead capabilities. e updated model ad-justed the location of the secondary faultby about 244 m (800 ). e correction in-cluded both vertical and lateral compo-nents. e service correctly forecasted thedesired casing location to within 50 (15m), thus allowing the operator to meet allcasing objectives.

During another GoM deepwater eldtest, the service demonstrated its ability toestimate pore pressures ahead of the bit.e team rst built a predrill model usingconventional methods. e model pre-dicted a velocity reversal, and therefore apore pressure change, at 2,743 m (9,000 ).Measured velocities down to 2,438 m(8,000 ) did not agree with model predic-tions indicating that a model update wasrequired. Since the model was not accurate

in the shallower section, it would also be inaccurate inthe deeper section. To address this concern, the service

calibrated and constrained the predrillmodel using measurements down to 2,438m. e updated model forecast a larger ve-locity reversal at 2,743 m compared to the


Por Prssur and hazard PrdictionAad of t Bit Wil Drillin A new service can help reduce nonproductive rig time and mitigate safety and environmental risks bydecreasing subsurface uncertainty and improving pore pressure estimates several thousand feet ahead of the bit.

ConTrIBuTED By SChLumBErgErI te deepwate ffse West Afica,

te SgD sevice delieates te aea f

i pe pesse (it) tat was

issed b te iial leac del

(left). (Sce: Sclbee)

See PReDICTION ctied pae 45


26/48

From the Norwegian North Sea where operators suchas Statoil have recovery rate goals of up to 60% to theworlds biggest EOR project offshore Malaysia and thedeepwater developments in the Gulf of Mexico, increas-ing oil and gas recovery is one of the offshore industrysgreatest challenges.

One of the principal technologies for achieving this isgas li optimization, where gases such as CO, natural gasor nitrogen are injected into the production tubing to re-duce the impact of hydrostatic pressure and allow reser-voir liquids to enter the wellbore at higher ow rates.

While benets include gas lis versatility in a range ofwell conditions and its ability to counter well instability,

too oen gas li is characterized by weak equipment and

operational design and a dependence on costly and riskywireline interventions to change the depth of injectionand port sizes.

ere is also a lack of information with the side pocketmandrel (SPM) gas li technique that makes use of in-jection pressure operated (IPO) valves coming with littleinformation on pressures and temperatures at the pointof gas injection and limited control and exibility overaltering injection rates in real time.

e focus on single wells also neglects the interactionof other wells in the eld. Too oen gas li design andstrategies are based on assumptions about eld condi-tions, such as reservoir pressures, temperatures, owrates and ignoring the broader eldwide picture.

Finally, the facts that the tools are IPO and function at

a predetermined annulus gas pressure can even increasethe possibility of unstable wells. Annulus pressure uc-tuations can create multipointing injections and re-quire resources to travel to the wellhead to choke theannulus gas supply to compensate.

Its with these issues in mind that digital gas li provider,Camcon Oil will be at OTC this year, advocating an alter-native approach to gas li operations where operators canmake gas injection changes to individual and multiple wellsin real time without production intervention.

e solution is based around binary actuation technol-ogy, consisting of a low-energy pulse control, which sig-nals to switch an actuator between two stable positionsto digitally operate a valve. e electrically operated

valve, actuation conguration and six con-

trol actuators for injection variation enablethe real-time setting of injection rates.e new approach also eliminates the need

for SPMs and wireline intervention, with set-tings tuned as wellbore conditions changethrough the life of the installation. is newapproach can be applied in a range of offshorescenarios, including single subsea wells, de-viated wells, multiwell onshore elds, dual gasli completions and deepwater wells.

With a potentially industry-changingtechnology, it was essential for Camcon to pro-duce real-life data prior to test installations inactual wells. is was achieved through a sim-ulation modeling analysis program, conductedby Laing Engineering & Training Services.

e analysis found that the two scenariosderiving the most benet from gas li are atthe early life stage aer three months andthe mid-life stage with water injection sup-port. e modeling found that digital gas lican deliver as much as 1,000 bbl/d of moreoil production from a typical well and, inone scenario, a 110% increase in productioncompared to traditional gas li equipment.

e digital gas li solution is currentlybeing deployed in an onshore well in Omanwhere the equipment has been selected asthe chosen method of liing for the well.While Camcon is trialing the rst units inonshore assets, the results will provide acredible reference base that allows the com-pany to turn its attention to offshore oppor-tunities where the benets are considerablygreater as are the product development chal-lenges. Camcon is using OTC 2014 to collectadditional product specications required tosatisfy the demands of offshore operators.Visit Camcon at booth 2541.

Dlivrin Diital gas Lift to Offsor Oprators A new approach to gas li operations allows operators to make gas injection changes to individual andmultiple wells in real time without production intervention.


Cacs diital as lift slti eables

peats t ae eal-tie as ijecti

caes witt pdcti iteveti.

(Sce: Cac oil)

By IAn AnDErSon, CAmCon oIL


27/48

In deepwater drilling, closed-loop circulation systemsand an array of managed-pressure drilling (MPD)methodologies are increasingly common tools of thetrade. Driven by a bevy of complex operational chal-lenges and safety demands, the advance is benetingfrom a steady ow of enabling technologies developedspecically for deepwater application.

Two recent innovations illustrate how the characteristicsof closed-loop drilling (CLD) are being integrated intodeepwater drilling operations. e rst is a slimmer versionof Weatherfords riser-integrated rotating control device(RCD) that can be used with a much larger population ofthe dynamically positioned rig eet; the sec-

ond enables continuous circulation to lever-age MPD in eliminating wellbore pressureuctuations when making connections andcycling mud pumps.

e SeaShield Model 7875 below-the-tension ring (BTR) RCD has been a majorenabler for deepwater MPD since it was in-

troduced in 2011 aboard a drillship in In-donesia. e device is the key componentin establishing a closed circulation loop.

e newest version slims the devicesbearing assembly from an outer diameterof 19.395 in. to 19 in. In doing so, the de-sign extends application of the RCD froma universe of about 25% of deepwater rigsto roughly 80% of the eet. In particular, itmeets riser specications for the great ma-jority of newbuilds and retrots that featureCLD-ready congurations.

e BTR RCD was the rst, and remainsthe only, RCD made up of a BTR and is in-tegral to the riser. Most critically, the BTRposition accommodates the rotation of dy-namically positioned vessels and eliminatesthe need for modications to the risers tele-scoping slip joint or the rigs mud returnssystem. Prior to the innovation, MPD op-erations aboard oating vessels were con-gured with a surface RCD above the waterline and the tension ring.

e BTR RCD forms an MPD riser jointalong with a surface annular BOP and aow spo

otc14 preview final lr

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