Ensuring readiness for deepwater operations

The International Energy Agency (IEA) forecasts that hydrocarbon production from deepwater reservoirs will grow from 5 MMb/d in 2007 to 9.5 MMb/d in 2023. By then it will represent about 10% of global production.

Wood Mackenzie projects faster growth, with deepwater production reaching 9 MMb/d in 2017. The deepwater rig count is predicted to increase by more than 50% during the next five years, and by 2015 it is expected to exceed 300. More than 100 new floating rigs will be constructed and designed to operate in ever more challenging environments.

As oil operators expand their search into deepwater and under-explored reservoirs, we can expect many of the new exploration and development projects to be in remote areas of the world, with less local support infrastructure than in established producing regions. Operators will not only need to address more complex and uncertain technical challenges, but will also be required to commit to high levels of investment and potential financial risk.

Operational excellence from the service industry will remain a key requirement for finding and developing fields in remote, complex, deepwater environments, as costs incurred due to non-performance are likely to greatly exceed the cost of the service itself. Operators selecting partners in such environments will choose from those service companies able to handle the logistical challenges, and with the technology required to maximize the understanding of the reservoir and realize its potential. In addition, the operator will need to be confident that the service company can perform reliably and consistently.

Years of experience has led most prudent managers to the conclusion that for any project, upfront planning—requiring investment of time and capital—yields a better likelihood of success. The objective should be to ensure that, prior to starting operations, all involved – people, processes, and technologies – are capable and ready to complete the project safely, on-time, and within budget.

During the early 1990s, Schlumberger was one of the first service suppliers in the industry to introduce a QHSE management system. The growing complexity and cost of oil and gas development led the company to look for opportunities to further advance its reputation for operational integrity.

In 2007, Schlumberger conducted a comprehensive evaluation of its product and project performance, in terms of operational quality and reliability, against leading companies in a range of technology-driven industries. The objective was to improve performance through better technology development, deployment, and delivery. A key contributor to achieving the goal of flawless execution was to set a target of flawless planning.

Formalized programs have since been developed, with their operational side targeting field and wellsite operations in terms of people, processes, and product reliability. The programs have been customized for specific exploration, development, and production environments, of which deepwater is a prime example. Service contracts for complex deepwater projects frequently involve teams from several product lines, and often include third parties, so close cooperation and collaboration through expert project management are essential to success.

A three-stage approach was developed for the planning process for deepwater operations:

• A deepwater certification process to ensure the competence of all operators, engineers and supervisors involved in deepwater projects
• The development of project managers able to lead and coordinate multiple service lines to provide logistical, people and equipment assurance, and ensure execution is performed flawlessly
• An innovative project planning process to ensure the highest state of readiness is achieved.

The process not only considers the people and the equipment aspects, but also the complexity of the project. A key requirement of the process is to define and ensure clear and accountable commitment from the service company’s top management to the field crews executing the services.

The Project Readiness Assessment (PRA) is one of the mandatory tools used to address preparedness for deepwater projects. This considers all risks, especially those that could lead to a service quality failure, non-productive time, or damage to the company’s reputation. Four criteria are considered: project exposure, project or process complexity, people and competency of those involved, and availability and condition of the technology or equipment required. These criteria are applied at multiple points throughout the planning process. Appropriate levels of approval are required according to risk profile. Where necessary, changes to the project are made in advance of process breakdown.

A bold binary approach is required when deciding if and when to commence deepwater operations. The service team is either ready or it is not. If not, it does not go. Readiness must exist at all levels so crews and operators can be confident in ultimate success. In deepwater operations, the mantra is “get it right—first time and every time.” All of us suffer the consequences when a failure occurs. Flawless adherence to safety and environmental principles is everyone’s responsibility. Readiness is not negotiable, it is the only option.

Dean Watson
Schlumberger

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