Operational Plan
Ultimately the well design has to be translated into an operational plan, or
programme. This provides the approved reference for those charged with
constructing the well. Programmes come in many different styles and formats
but, typically, should include the following:
- Appropriate approvals and distribution;
- Purpose of well;
- Prioritised objectives for the well;
- Budget data (time and cost);
- Description of the well design (e.g, casing specification and setting
depths,
directional profile, intended cement coverage)
- Details of expected geology;
- Operational procedure;
- Anticipated hazards, risks, mitigation and contingencies;
- Data acquisition requirements (e.g, logging, sampling);
- Summary of third party programmes such as cementing, drilling fluids and
directional plan;
- Contact details.
The format and detail for a programme will also depend on the type of well to be
drilled. For example the fortieth well on a development programme may require
little more than a one page summary sheet whereas the first High Pressure High
Temperature (HPHT) well in a virgin area could warrant the well construction
equivalent of War and Peace. In consideration of the detail required it is
useful to
put yourself in the place of the well-site supervisor charged with delivering
the
well objectives
Risk Identification and Mitigation
The management of risk for a well construction process covers Health, Safety
and Environment (HS&E) risk and operational risk. The former is concerned with
protection of people and the environment the latter with protection of the
business plan which incorporates promises for budget and schedule. As HS&E
and business cultures have developed there has been a tendency to separate
these features in terms of how they are dealt with in the planning process.
Ultimately, however, there appears to be growing consensus that good HSE
management means good operational management and vice versa. Therefore,
instead of having separate processes to consider HS&E and operational risk, all
forms of risk are considered in the one risk management process.
Management of risk is an iterative process. No matter at what stage in the well
construction process identification and understanding of risk should never be
far
from the mind. The processes required involve anything from the awareness of
experienced personnel while compiling plans to full blown hazard operability and
analysis studies involving multi-disciplined teams, formal processes and many
days of scrutiny. The scale, complexity and novelty of the project also should
determine the scale, complexity and novelty of the risk management process.
In simple terms there are two important times where full accountability of risk
should be formally considered. Firstly at the concept selection phase where the
various options are being reviewed; secondly, once the proposed design and
operational process have been sufficiently defined to allow in depth review.
Time / Cost Estimate Generation
The time / cost estimate is the cornerstone of a well construction organisations’
commitment to the business it serves. It is a promise that the objectives will
be
delivered at a given cost. The fundamental issue with time/cost estimation is
that
business plans are often drawn up before the well is sufficiently defined both
in
terms of objectives and design. This is not such a concern if the well in
question
is a repeat of previous types but when dealing with new well types it is
difficult
to
give precise information.
Estimates are often classified to reflect the level of uncertainty. Examples of
classifications and their likely variance could be:
- Budgetary: +/- 30%
- Appropriation: +/- 10%
- Pre operational: +/- 5%
As with risk management, the estimation process is iterative. The key advice is
to ensure that the client group are kept closely in the loop as estimates evolve
and no room is left for misunderstanding the current cost situation for the
well.
Pre-operational Review
Prior to commencement of operations it is good practice to review the programme
with those closely involved with its implementation. This is commonly referred
to as a Pre Spud Meeting referring to the common term for commencement of
drilling. The main aims are to ensure that the objectives and performance
measures for the well are understood, the operational plan and operational risks
are communicated and lines of communication are established for the operational
phase. The gathering also serves to help build team rapport which can greatly
enhance the ultimate performance on the well.
The review is also an opportunity to capture any last minute input which could
contribute to improving the plan. Typically meeting attendees would include
those responsible creating the well plan, representatives from the client
group, wellsite supervisors, office and wellsite based service providers
including rig crew and logistics co-ordinators.
A final opportunity for communication prior to commencement of operations is for
the plan to presented to crews at the wellsite either by the well planners or
the wellsite supervisors.
Operational Phase
The main requirements during the construction phase are:
- To implement the plan as intended;
- To effectively manage any deviation from the intended plan whatever the
cause (e.g, operational problems, geology not as predicted, change in
objectives);
- To comply with all reporting requirements internal and external to the
organisation;
- To monitor and report current and forecast costs;
- To manage logistics such that all equipment and personnel are available at
wellsite as required.
Post Well Activities
Once finished the following activities are required to effectively close out the
well construction process:
-
Receive and review all third party operational reports;
- Hold ‘wash-up’ meeting to discuss results;
- Produce final well cost;
- Obtain Client feedback on performance;
- Prepare well history to include:
- Appropriate approvals and distribution;
- Original purpose of well;
- Measure of attainment of objectives;
- Actual vs. planned time and cost data
- Description of the well as built (e.g, casing specification and setting
depths, directional profile, cement coverage)
- Details of encountered geology;
- Operational review including recommendations for future work;
- Encountered hazards/risks, mitigation and contingencies employed;
- Breakdown of non productive time during well;
- Data acquisition performed (e.g, logging, sampling);
- Summary of third party reports such as cementing, drilling fluids and
directional plan;
- For development wells ensure appropriate handover to production organisation
including basis for design, operational limits and monitoring requirements;
- Finalise any external reporting requirements;
- Distribute reports and archive as required.
Although the major portion of the well construction process is complete by this
stage it should be remembered that a responsibility for the well remains with
the well construction organisation until it is finally abandoned. This should
include ensuring that well conditions are monitored to check the well is being
operated within the original design basis. It may be a requirement to re-enter
the well at some point to repair or change the completion components. There may
also be a future utility to act as a host well for a sidetrack to a new
sub-surface location. Ultimately the well will be abandoned at the end of its
productive life. All of these activities require a similar process to that used
for the original well construction.
Time Line
Having identified the main activities associated with the well construction
process it would appear straightforward to show a generic timeline incorporating
these activities. Unfortunately the variable nature of wells means that for each
project a different timeline can be drawn up. In fact it is good practice to
draw up a timeline for each well you become involved with to recognise its
uniqueness and highlight the planning issues at an early stage. Some of the main
variables to consider are as follows:
- Government approval processes, especially environmental, could take times
ranging from 4 weeks up to a year or more dependent on license conditions,
requirement for full blown consultation etc.;
- Dependent on materials required deliveries could range from zero time
because equipment is available in stock to in excess of 12 months;
- Is the well to be drilled in a mature, well serviced location or in a remote
location? The provision of support infrastructure may have to be added into
the equation.
- Complexity of well design has a major bearing. Is the well a follow on from
similar types using the same design or is it brand new, complex and
requiring detailed design work?