Frank Hartley, Dilling & Production Editor
The worldwide well stimulation markets continue to expand, specifically in West Africa, the Middle East, and the Far East. Stimulation vessel requirements in deepwater and ultra deepwater operating regions have caused service companies to review existing vessel assets for major upgrades or replacement. The following is an analysis of the stimulation market from the perspective of BJ Services Co., Baker Oil Tools, Halliburton, and Schlumberger.
BJ Services Co.
The stimulation vessel market continues to grow, and its escalation has been very dynamic, according to BJ Services. Newbuilds and rebuilds are dotting the horizon in a number of areas as operating companies want more capabilities built into larger vessels, the company explains.
Coincidentally, there were as many stimulation vessels worldwide in 2000 as there are today. However, the requirements for deadweight tonnage (DWT), dynamic positioning (DP) capability, proppant/acid storage volumes, and pumping pressures all have increased significantly. The next generation of stimulation vessels will again be larger, with lengths of 280 to 320 ft (85 to 98 m) and DWT greater than 5,000 tons (4,540 metric tons), with stronger, more reliable dynamic positioning capability using higher marine horsepower and DP-3. Most importantly, they will provide much larger storage capacities, making 2.5 to 3 million lbs (1.1 to 1.4 million kg) of proppant available in a single trip offshore. Expect to see these high-end vessels working in the North Sea and Gulf of Mexico in the coming years, BJ says.
The GoM was home to as many as 18 vessels in 2000, but the market has seen its fair share of ups and downs over this time, largely operating on a call-out basis, the company says. Many of those vessels were retired due to age, size, and the inability to upgrade to a strong DP-2 system. However, with 10 vessels operating in the area, the market is again on the upswing, as discoveries in ultra deepwater fields are driving demand for next-generation stimulation vessels. These could be required as early as late 2009. With Mexico and the US pushing for increased production, operating companies are spending billions of dollars further offshore, where new fields and high-rate wells look promising.
South America had a high of eight vessels in early 2003, BJ says. As in the GoM, a number of vessels were retired due to age, size, and lack of adequate station-holding capability. Brazil is the only country using stimulation vessels today, making good use of three large vessels on contract with a potential for a fourth in the years to come. The offshore Brazil market is a very well established deepwater market that continues to grow.
The North Sea continues to be a two-and-a-half vessel market with potential to use three full-time vessels by 2009, if not earlier, BJ explains. There are two major contracts there, but a number of tenders pop up from time to time that could, perhaps, justify another full-time vessel. Several oil companies there are pushing for new, larger vessels, fully realizing that the current ones are very old and less capable than vessels elsewhere in the world.
Slow but steady growth in West Africa will justify the four vessels there, according to BJ. Some recent spot market opportunities in other African countries, especially Gabon and Ghana, may justify another vessel for the region.
The Middle East (including India) has grown from a two-vessel market to a total of six vessels over the last couple of years, BJ says. With four operating in Qatar, two in India, and demands for another potentially in Saudi Arabia, this area could very well be the best growth market for the foreseeable future, the company says. However, this region is an acid vessel market, which differs from requirements in the rest of the world. Only a few vessels are truly set up properly to store and pump the high acid volumes required for well stimulation in this region.
In the Asia Pacific region, outside of China, most areas use barges or small operating company-leased platform supply vessels with service company equipment on the deck. China is steadily growing and could perhaps justify two vessels by next year, according to BJ. About 12 years ago, some of the major oil companies that work in the region tried to form a vessel-sharing consortium, but it never came to fruition.
Baker Oil Tools
Baker Oil Tools is adapting to new market requirements through the development of a Modular Stimulation Vessel Template (MSVT), now referred to as StimFORCE.
StimFORCE can be installed on an offshore supply vessel having sufficient free deck space (40 ft x 176 ft [12 m x 218 m]) and a deck loading capacity of 1,020 lbs/ft². The modular, interlocking design of all the equipment allows rapid installation and expedient removal on a suitable vessel, according to Baker. The offshore supply vessel can perform standard or multipurpose duties when the StimFORCE plant is removed, the company says. Individual equipment modules can be reconfigured to perform frac pack, open hole gravel pack, or stimulation services on rigs or platforms.
Baker Oil Tools says it recognizes the need for increased vessel proppant capacities, increased fluid pumping rates, and ultra clean heavyweight fracturing fluids (up to 14.6 ppg) to achieve maximum well productivity. Additionally, these low friction fluid systems are designed to reduce surface pumping pressures and hydraulic horsepower requirements to enable completion of extreme deepwater formations with long multiple pay zones.
StimFORCE 1, operational since November of 2007, is providing frac pack, open hole gravel pack and stimulation services for a major operator in Equatorial Guinea, West Africa. With additional horsepower and proppant capabilities, StimFORCE 2 will be operational in June 2008 for a major operator in Tunisia. Both are on long-term contracts.
Baker Oil Tools also provides stimulation services in the GoM. According to the company, theHR Hughes vessel has advanced station-keeping capabilities, is able to operate in elevated sea state conditions, and can execute multiple-zone completion operations.
Deepwater rigs, operating costs, and distance from shore dictate that vessels operate in close proximity, have advanced station-holding capabilities, operate in elevated sea state conditions, and perform multiple completion operations for extended periods of time.
Halliburton
Hallburton’sHOS Saylor vessel provides stimulation services for Pemex in the Bay of Campeche, Mexico, the company says. This newly outfitted stimulation vessel is equipped to perform acidizing, acid fracturing, water control, and nitrogen services.
TheHOS Saylor, equipped with a DP system, supports all phases of stimulation via systems that include blending, pumping, and storage. Halliburton says the vessel is able to transport over 30,000 gallons of acid, 40,000 gallons of solvent, 30,000 gallons of liquid nitrogen, and 12,500 gallons of additives at a time. Total hydraulic horsepower available for treating is approximately 6,700 with maximum treating pressure of 15,000 psi (103.4 MPa). These capabilities support a range of services from smaller treatments up to large clean out and fracturing operations.
Halliburton’s new stimulation vesselStim Star Borneo is the world’s first flat-bottomed, self-propelled stimulation barge, the company says. It is designed to meet the service needs of operators working in shallow, inland, and river delta waters of Southeast Asia. The vessel is equipped to provide multiple stimulation services including fracturing, acidizing, and coiled tubing. At 200 ft (61 m) length and 66 ft (20.1 m) width, the Stim Star Borneo has an operating draft of 10.5 ft (3.2 m) offshore and 9 ft (3 m) in the delta areas. It is equipped with a DP-1 system. Halliburton says a unique feature is the application of three retractable 360° azimuth type thrusters that power the vessel. Above deck storage capacities consist of 5,200 gal acid, almost 4,400 gal additives, and 350,000 lb proppant. Below deck capacities are almost 3,500 bbl of process and completion fluid and over 4,700 bbl of drill water. The Stim Star Borneo is equipped with Halliburton’s proprietary InstaVisTM gel-on-the-fly system. Maximum fracturing rate is 18 bbl/min with sand and 25 bbl/min with clean fluid.
Schlumberger
Despite the activity increase during 2007, Schlumberger has not added new vessels to the present fleet. However, due to the competition moving one vessel from the North Sea to India opened an opportunity to provide a mobile temporary package under the marketing name of FlexSTIM, according to Schlumberger.
FlexSTIM is a purpose-prepared package for quick deployment, on-client available PSV, providing a quick turnaround, the company says. Typically the deployments have done short campaigns of no longer than 2 to 3 months.
Activity has remained flat in the GoM with all service companies operating two vessels, Schlumberger observes. This should change starting in 2009 when deepwater activity will increase with the need to provide higher pumping power, larger carrying capacity, and station-keeping vessels.
Activity in West Africa has increased and should continue to do so at least for the next five years, Schlumberger says. Although the volume of work is not comparable to the present GoM activity, the distances between fields is significant, starting from Mauritania extending to South Africa. The West Africa market currently is covered by four vessels, according to Schlumberger.
The company has experienced an increase of activity in the Middle East, mostly in Qatar. More developments are planned for the North field (Qatar) and a sharp increase of activity offshore Saudi Arabia will require at least the addition of one more vessel to cover the work, Schlumberger says.
Although not present in either Brazil or Mexico, activity in these areas is also on the rise providing opportunities for future vessel deployment, according to the company.
In general, the present worldwide stimulation vessel fleet is old and needs upgrading or replacing, Schlumberger explains.
Despite the activity increase worldwide, service companies have not rushed to renew, add, or upgrade the existing fleet. And daily rates on the PSV fleet have increased sharply.
Schlumberger expects the rates to flatten in the next few years when the platform supply vessels and anchor handling tug supply vessels presently on the construction forecast are deployed balancing the supply of active vessels.
Larger boats with more high pressure pumping capacity, larger storage, and better station keeping vessels, are expected. And DP-2 should be the standard for the future stimulation vessels, Schlumberger says. Remote connectivity and offshore re-supplying may also be some of the features offered by the service industry.
