Pam Boschee, International Editor
Technology applications and project updates
Those who have participated in previous years’ Offshore Technology Conferences are well aware of the benefits delivered by an event such as this. Newcomers will quickly discover the breadth of knowledge and experience offered by over 300 technical sessions, more than 2,000 exhibitors, and the 50,000 or so attendees.
Technology takes center stage
New ideas and lessons learned from experience dominate OTC.06’s technical program.
Three comprehensive sessions will address the effects of Hurricanes Ivan, Katrina, and Rita.
The range of topics in the Hurricane Ivan session include mudflows and mudslides, a pilot study for regionally consistent hazard susceptibility mapping of submarine mudslides, fixed offshore platform and MODU performance, assessment of storm sea fastenings for drilling and workover rigs on floating production systems, and pipeline damage, integrity assessment and on bottom stability observations.
Tommy Laurendine of the Minerals Management Service (MMS) will present the session keynote,Lessons Learned from Hurricane Ivan.
As global interest increases in alternative forms of energy and sustainability, the oil and gas industry has demonstrated movement toward further development of these resources. It is generally agreed that conventional oil and gas production will peak someday and then decline. Also, there is worldwide concern by many that carbon-based energy sources should be replaced.
Predictions of conventional production decline rate vary but it is apparent that in the near term of 5 to 10 years, more emphasis will be on gas and coal. In the next two to three decades, energy from tar sands, oil shale, and nuclear power will become the most significant replacements for declining conventional oil and gas production.
Methane hydrates, hydropower, solar power, wind power, agricultural crops, and other sources could contribute to future energy supplies.
Offshore wind energy and hydrates will be discussed in three sessions, and a panel discussion,Post-Peak Oil: Alternative Energy Sources, will define when these sources could replace a significant portion of the present conventional oil and gas production.
LNG 2006 begins with a worldwide view of offloading availability. Single Buoy Moorings Inc. and SBM Production & Contractors will discuss offloading operations supported by practical examples of tandem offloading from the world’s largest LPG FPSO, and give typical availability figures for side-by-side LNG offloading for various locations in the world.
A newly proposed concept, the GTL/oil FPSO, will be introduced by Syntroleum and Bluewater Energy Services BV.
Syntroleum Corp. and Bluewater Energy Services BV have formed a JV to develop and finance the building of the world’s first air-based gas-to-liquids plant on an FPSO that could also produce oil and offer storage capabilities.
The purpose of the JV is to develop, construct, own, and operate GTL/oil FPSO vessels.
The companies are working together to identify projects that will allow the JV to participate in the upstream development of oil and gas reserves and downstream processing at offshore locations.
A detailed feasibility study conducted by the companies has addressed a design with capacity to handle up to 17,000 b/d of Fischer-Tropsch (FT) products, 40,000 b/d of crude oil, and 10,000 b/d of condensate on an FPSO, which would also include around 2.3 MMbbl of storage capacity.
The GTL/ oil FPSO study follows Syntroleum’s work with its GTL barge concept for shallow water.
By using the GTL/ oil FPSO technology concept, companies can develop offshore gas reserves that otherwise would be uneconomical, and in the process avoid costs of reinjection of natural gas back into the reservoir.
Project developments and updates
West Africa’s Benguela-Belize project began first oil production in January. Located approximately 50 miles (80 km) offshore Angola in approximately 1,300 ft (396 m) of water, the field is being developed in two phases.
Phase 1, Benguela Belize, combines an integrated drilling and production platform hub facility supported by a compliant piled tower, which marks the first application of this structural technology outside the US Gulf of Mexico.
With topsides weighing over 40,000 tons, it is one of the largest structures in the world. The tower and topsides were built in Angola, Korea, and Texas.
A session is dedicated to the full scope of this achievement.
Introducing the session with a project overview, Chevron Corp. presents the analysis process, challenges, and lessons learned in achieving optimum development when a wide range of feasible technical solutions were applicable.
Key factors included: 300-600 m (1,000-2,000-ft) water depth, surface or subsea wellheads could be used, shallow reservoir depths, proximity of existing infrastructure for oil storage and export, and additional prospects identified within subsea tieback distance to the production hub.
Other factors that influenced development included: low reservoir pressure requiring 1-to-1 water injection-to-withdrawal ratio; shallow reservoir depths spread over a large area; crude oil gravity variations requiring the assessment of processing 24° API and 38° API crude oils; crude oil storage and export options via floating systems or via pipelines and produced gas management.
Other presenting companies and their topics include: Mustang Engineering and Chevron ETC, tower design; KBR LLC, topsides engineering; Kiewit Offshore Services Ltd., tower fabrication; Heerema, installation; and Technip, project-focused approach.
Another project-specific session will provide an overview of ExxonMobil’s Kizomba A and B developments.
Kizomba A was the first deepwater drilling platform installed off Angola.
Both the Kizomba A and B projects incorporate a surface wellhead, TLP that is close-moored to an FPSO in more than 1,100 m of water.
Each project also includes offloading facilities and subsea wells and equipment.
The FPSOs set records for size, each with processing facilities for 250,000 b/d of throughput and more than 2.2 MMbbl of storage.
The Xikomba project, which employs an FPSO converted from a trading tanker, will also be described.
The development of K2, an oil field located approximately 132 mi south off the Louisiana coastline, primarily within Green Canyon block 562, is another project-specific session.
In water depths ranging from 3,800-4,000 ft, Green Canyon block 562 is jointly owned by Eni, Anadarko, ConocoPhillips, and Chevron.
The K2 development features three subsea wells in two different clusters.
Environmental, drilling, and completion challenges to be presented include subsea trees and controls, flowlines and risers, topside design, chemical injection systems, and the capital value process for turnarounds.
Brazil’s Albacora Leste field development project consists of the production development of an offshore deepwater oil field, in the Campos Basin, of which Petrobras and Repsol YPF are the concessionaires.
Petrobras is the field operator and holds a 90% working interest, while Repsol YPF holds the remaining 10%.
Albacora Leste field covers an area of 141 sq km, at water depths ranging from 800 to 2,000 m, with reserves of approximately 565 MMbbl of oil and 10 bcm of gas.
The field’s reservoir development, well construction, subsea production system development, FPSO systems, facilities, and mooring systems will be discussed in detail.
An integrated management strategy for big offshore production facility construction projects such as Albacora is presented as well.
Petrobras signed the first contract for the construction of the FPSOP50in 2001. A total of $500 million, divided into five contracts, was assigned for the design, procurement, construction, commissioning, and assisted operation of the FPSO unit with oil capacity of 180,000 b/d and gas capacity of 6 MMcm/d.
Unlike other projects, the construction of the FPSOP50 was divided into five contracts in order to minimize risks and anticipate the supply of the long lead modules.
One of the biggest challenges for Petrobras was to organize itself and its contractors to fully guarantee the scope contracted and to minimize the interfaces among the contractors.
Seismic and subsalt imaging
Improved subsalt imaging technology will be discussed in several sessions. Five GoM examples are included in a session taking place on Monday morning, May 1, presented by BP America Inc.
Subsalt exploration is challenging because of the profound impact salt movement has on subsalt structure, fluid flow, and the ability to image and predict subsalt conditions.
From a drilling perspective, exiting salt has proven to be problematic due to encountering abnormally high pressures when exiting base of salt, resulting in the loss of well control and likely necessitating the need to sidetrack the well at a substantial cost.
Current methods of predicting pressure, which rely on velocities derived from surface seismic data or detailed subsurface geologic models, do not sufficiently reduce uncertainty pre-drill.
Statistical data mining of industry wells in the GoM deepwater show that nearly 50% of the wells in the deepwater complex salt arena have problems of exiting salt.
Drivers for seeking improved drilling efficiency are the potential cost and time savings in the expensive deepwater drilling environment. It is particularly imperative to minimize non-productive time because the industry in general is increasingly moving into the complex subsalt arena in the GoM.
Look-ahead vertical seismic profiles (VSPs) were tested to see if the data gathered would help in predicting pressure directly below salt, which to date is commonly the most problematic zone in the subsalt section.
A look-ahead VSP is acquired above the prospective zone for which information is being interpreted. Two methods, which derive elastic parameters in unique ways, were tested on three post-drill tests and then applied in real-time to two complex subsalt wells.
Post-drill tests describe those tests in which the VSPs are run post-drill (typically to image the deeper reservoir sections) and geophones are placed in salt and processed in a manner to simulate a look-ahead VSP.
In all five cases the VSP-derived pressure prediction suggested the correct adjustment in the mudweight relative to the actual pressure, resulting in substantial cost savings on the first real-time application of the technology. These tests were applied Gulf-wide, from Perdido to the relatively mature Mississippi Canyon area.
These tests demonstrate potential to better estimate pressure exiting base of salt in complex deepwater subsalt prospects, eliminating the costly sidetracks due to well control issues.
In the same session, Chevron, BP, Husky Energy, and Shell International E&P will offer additional insights into imaging, anisotropy, and pressure prediction.
The Atlantis ocean bottom seismic (OBS) project will have a dedicated session as well.
Atlantis OBS applied the technology of deepwater node seismic acquisition in an effort to achieve high-quality subsalt imaging. As the first large-scale deepwater seismic acquisition survey to obtain data from autonomous nodes, the survey fostered innovations in node manufacturing, node deployment, and survey design.
Over 900 nodes were produced in nine months. Deployment equipment included specially designed skids, two remotely operated vehicles (ROVs), and an advanced navigation system.
Intensive modeling provided an initial assessment of optimal node spacing and node layout grid.
BP’s Michelle Judson will deliver the keynote,Accelerating the Pace of E&P Innovation.
Additional insights will be provided by BP, Fairfield Industries Inc., Canyon Offshore Inc., Geo Century Inc., and G. Openshaw, a consultant involved with the project.
Major oil companies will present worldwide examples of reservoir monitoring on Tuesday, May 2.
Seismic monitoring of the Girassol, Heidrun, and Genesis fields will be discussed, as well as 4D seismic in Brazil and other locations, by Shell International E&P, Chevron, Total E&P, BP Netherlands, and Petrobras.
Deepwater and subsea challenges
The FPSO technology session will include discussions of deepwater oil export systems, geotechnical design code for suction anchors in clay, design of FPSO piles against storm loading, trends in FPSO design, experience with a DP FPSO in a hurricane area, upgrade of DP failure mode effects analysis, and investigation of sway-yaw motions of deepwater FPSOs.
In this session, Bluewater Energy Services BV describes the successful application of FPSOMunin, fitted with dynamic positioning (DP) and high propulsion power in the South China Sea.
The oil and gas industry offshore China is exposed to severe hurricanes, and in order to minimize the exposure, most of the FPSOs in the area are disconnectable and able to sail away from the affected area.
The characteristics of tropical cyclones and how a disconnectable FPSO reacts will be discussed.
Interaction of Deepwater Pipelines with the Seabed on Monday, May 1, discusses topics such as mitigation methods for deepwater pipeline instability induced by pressure and temperature variations, the effect of HP/HT flowlines and soil interaction on deepwater subsea development, and the combined effect of flowline walking and riser dynamic loads on HP/HT flowline design.
Subsea and riser integrity will be discussed in a dedicated session, which will include SCR integrity management and riser integrity management for deepwater developments.
Advances in riser and umbilical technologyincludes case examples from ExxonMobil, Wellstream International Ltd., Nexans Norway, Marinek, Intec Engineering, Chevron Energy Technology Co., Sound Research Laboratories, Cranfield U., Trevor Jee Associates, Bureau Veritas, BP, Single Buoy Moorings Inc., and Trelleborg Industries.
In their case study, T. Hill, Y. Zhang, and T. Kolanski of Wellstream, say unbonded flexible pipe has been an enabler for deepwater (<3,300 ft) and ultra deepwater (>3,300ft) developments for over 15 years.
The technology has enabled the industry to initially produce in deepwater in the early 90s and then into ultra deepwater up to 6,500 ft in the late 90s. Water depths greater than 6,500 ft push the envelope where typical free hanging riser configurations can operate.
High tension loads from free hanging pipe weight coupled with high pressure loads creates a challenge for any riser system.
Their case study discusses a flexible pipe riser: 6-in. ID x 10,000 ft water depth x 12,500 psi design pressure. The key challenges for this depth and internal pressure combination are: top tension load, collapse load, and birdcage load.
They quantify each of the key technical challenges and set forth methods for meeting each challenge, such as unique riser configurations.
The results of the case study confirm the ability of unbonded flexible pipe to operate in ultra deepwater under high pressures.
Carlos Moreira, Petrobras, and Ruxin Song, Technip Offshore Inc. chair the session,Deepwater Steel Caternary Risers. Wave-loading fatigue performance of SCR in ultra deepwater; effectiveness of helical strakes in the suppression of high-mode-number vortex-induced vibrations; safety factors for ultra deepwater SCR handover operations; automatic ultrasonic inspection of SCRs with a corrosion-resistant alloy layer; strength and fatigue effects on the Matterhorn gas export SCR from Hurricane Ivan; and the application of CFD for vortex-induced vibration analysis will be discussed in this session.
Presenters from Intec Engineering and the MMS discuss fatigue performance of SCRs in ultra deepwater applications.
Case studies have been performed for risers in 10,000 ft water depth in a typical GoM environment. A truss spar buoy and semisubmersible have been modeled as potential hosts for 16-in. diameter SCRs. These are considered the most likely potential solutions in GoM ultra deepwater locations.
An FPSO/FSO host vessel would also pose a solution for ultra deepwater; however, in the US GoM such a solution has yet to be adopted. Vessel motions have been derived for the selected host types. Riser fatigue analyses have been performed based on derived vessel motions to evaluate fatigue performance of SCRs from these hosts.
SCR designs are very sensitive to motion characteristics of the host platform. A main design issue for the SCR concept is fatigue.
In ultra deepwater, the combined mass of the mooring lines, risers, and umbilicals takes up a significant proportion of the system’s total mass. The hydrodynamic damping due to drag force on these slender bodies also has significant effects on resonant response.
A coupled analysis is where these inertial and damping effects are included and solved simultaneously with the vessel motion response. This study evaluates vessel motions for both fully coupled and uncoupled analysis. SCR fatigue performance is evaluated using both sets of motions.
On Thursday, May 4, Patrick Wong, ExxonMobil, and Pharr Smith, GlobalSantaFe, chair the session,Developments in Jackup Technology. Metocean criteria for GoM jackups is one of the topics to be discussed.
Prior to the 2006 hurricane season, jackups had successfully operated in the GoM with few failures, but until recently there was not a consistent metocean criteria to which they were assessed prior to operations.
This presentation by Ensco International, ABS Consulting, Oceanweather Inc., and Lewis Engineering Group, sets out a methodology that can be used to determine if the unit can be safely operated and successfully evacuated prior to the arrival of a tropical revolving storm likely to cause the unit distress.
Other topics in this session include site assessment for jackups in the GoM; 3D nonlinear wave spreading on jackup loading and response and its impact on current assessment practice; cavity stability and bearing capacity of spudcan foundations on clay; jackup foundation performance in clay; installing jackups in punch-through-sensitive clays; and the potential benefits of using skirted foundation for jackup platforms.
FMC Technologies, Baker Oil Tools, Intec Engineering, ASGM Engineering, Stress Subsea and Shell International E&P offer technical insights inDeepwater HP/HT, HIPPS, and Thermal Performance on Tuesday, May 2.
FMC Technologies discuss future considerations for subsea HP/HT equipment and systems. Their paper describes that while the development work involved in achieving subsea HP/HT equipment (rated for over 10,000 psi and 250°F) has been significant, it has been piecemeal, project requirement driven, and highly proprietary in nature.
Offshore exploration efforts are now turning to even deeper reservoir pockets, and the industry recognizes a need for the next step (to 20,000 psi working pressure systems and likely over 350°F).
Several questions are being raised over how to define appropriate temperature ratings and introduce additional service life requirements, such as fatigue and cyclic loading.
Every combination of design pressure, temperature rating, and cycle life involves significant product development.
However, HP/HT narrows the number of available materials because of the extremely high partial pressures of H2S and corrosive byproducts combined with the de-rating of material strength for temperature (both metallic and nonmetallic).
Fracture mechanics and associated fatigue design analysis is a science being used to more rigorously design pressure-containing equipment at ambient temperatures.
Fracture mechanic theory is totally unknown at elevated temperatures. Therefore, expanded understanding of material performance at higher temperatures is needed along with a wider search for new ferrous, non-ferrous and composite materials.
Networking made easy
Developing and fostering business relationships is a top priority of offshore professionals.
Interaction with offshore professionals on a smaller scale at OTC.06 is made possible through a series of industry breakfasts where region-specific topics will be discussed. India’s offshore oil and gas industry will be discussed on May 2.
Officials from India’s Directorate General of Hydrocarbons, Ministry of Petroleum and Natural Gas, Gas Authority of India Ltd., and Oil and Natural Gas Corp. will highlight recent E&P activity in offshore western and eastern India. Discussions will also cover the new exploration licensing policy and current fiscal environment for offshore oil and gas investment.
On May 3, Russian government officials and other experts describe Russia’s plans for developing the oil and gas resources on its continental shelf, possible opportunities for foreign companies, and Russia’s fiscal and regulatory method for development.
The Russian government says about 4 million sq km of Russia’s continental shelf are suited for development and could produce up to 320 bcm of gas and 95 million tons of oil per year.
Australia’s offshore developments will be the topic of breakfast discussion on May 4 as a panel addresses developments, future projects, commercial opportunities, and the Australian government’s role in stimulating investment in its offshore sector.
Topical luncheons are also offered. One series will discuss a broad range of topics covering management, implementation, research and technology. Another series will address the operators’ perspectives.
An awards luncheon on May 2 will be hosted by Gilherme de Oliveira Estrella, Petrobras’ managing director for E&P. He will deliver a keynote address,New Challenges for the Petroleum Industry.
Honorees will include Peter Marshall for his contributions to the evolution of the offshore industry from shallow water, fixed platforms into ultra-deepwater floating facilities, particularly for advancements in the selection, welding, and inspection of steels for offshore structures, and the development of reliability-based designs.
Doris Engineering will be recognized for its sustained and pioneering innovations in the design and construction of offshore facilities for nearly four decades.
OTC will award a special citation to Matt Simmons, chairman and CEO of Simmons and Co. International for his contributions to educating the world about the energy industry and his participation in numerous presentations for OTC.
An energy roundtable on May 2 highlights a panel of executives who will discussDoes the Price of Oil have New Meaning?
Taking place in more casual venues, special events round out the networking opportunities. An all-you-can-eat Cajun crawfish boil and an OTC night at the ballpark (Astros vs. St. Louis Cardinals) mix relaxation, fun, and business.•
South Africa showcases its service capability
South Africa will have a strong presence at OTC.06 when 25 companies participate and exhibit at the oil and gas industry’s largest show.
Fifteen South African companies will be exhibiting at booth 5653 under the South African Oil and Gas Alliance, and 10 companies will be attending as a group organized by the South African Chamber of Commerce America.
“We’re bringing a group to OTC every year,” says one of the organizers, Gary Schwabe of the South African Oil & Gas Alliance, “because it’s one of the best ways to showcase what South Africa has to offer-namely, service capability matched with strategic geographical advantage.”
South Africa’s Cape Town is the closest first-world port to the heart of West Africa’s oil and gas activity and is serviced by over 600 South African engineering companies.
The OTC group is being organized by the South African Chamber of Commerce America (SACCA) and the South African Oil and Gas Alliance with support from South Africa’s Department of Trade and Industry.
Exhibitors include: Cape Oil & Gas Supply Initiative, Belmet Marine Pty Ltd. South, A. Hak Industrial Services, African Oil and Gas Alliance, Capital Outsourcing Group, DCD-DORBYL (Pty) Ltd., Marine Cape Town (Pty) Ltd., Ropetec, Krew Investments SA (Pty) Ltd., Grinaker-LTA M&E, Toprope, Globe Engineering Works (Pty) Ltd., RNB Engineering (Pty) Ltd., Kwikspace Modular Buildings (Pty) Ltd., and RJ Southey Contracting.
Spotlight on New Technology awards
As part of its annual program, OTC recognizes the best new innovative technologies through its Spotlight on New Technology award.
The 2006 award recipients include:
• Aker Kvaerner Subsea - MultiBooster
• Baker Oil Tools - Z-Seal Technology
• Baker Oil Tools - Smart Intervention System
• CDS Separation Technologies, an FMC Technologies subsidiary - Compact Subsea Separator with Integrated Sand Handling
• Ctour Process Systems AS - The Ctour Process
• Draka Marine Oil and Gas - Flex-Flame HC 1100/30 Hydrocarbon Fire Resistant Cable
• FMC Technologies - Subsea Electric Actuator System for Manifold Retrofit
• Halliburton - Slimhole Reservoir Drilling and Evaluation System
• PowerWell Services - PowerAMPS Managed Pressure Drilling System
• Schlumberger - EcoScope Multifunction Logging While Drilling Service
• Schlumberger - QuickSilver Probe Wireline Sampling Tool
• V-Tech AS - UniTong
• Weatherford International Ltd. - PowerStroke Milling System
The 13 winning technologies will be honored at a presentation on Monday, May 1, at 4:00 p.m.
Criteria used in selecting the top-tier technologies included innovation (technology must be less than two years old); achievement of full-scale application or successful prototype testing; demonstration of broad appeal to the industry; and the ability to deliver significant benefits beyond existing technologies.
For additional information, visit otcnet.org. Information about the conference and session content was derived from the OTC.06 abstracts available at press time.
Visit Offshore magazine at booth 2941.
