OTC .09 – Celebrating 40 years

Two papers will discuss the Ormen Lange field’s subsea compression system and long step-out power supply.

Further discussion on the uncertain price of oil continues Tuesday afternoon. The panel session is centered on a Baker Hughes paper, “Navigating Long-Term Business in the Face of Short-Term Fluctuation.” The panel is expected to spotlight various NOC, IOC, and service company plans to tackle the current financial flux.

A Wednesday afternoon program features an invited organization, the Research Partnership to Secure Energy for America (RPSEA). This non-profit organization focuses on maximizing US natural resource values for ultra deepwater and unconventional natural gas.

Highlighted topics include increasing supply, reducing cost, increasing E&P efficiency, and improving safety while minimizing environmental impacts.

The partnership encompasses industry, operators, and vendor and service providers as well as government, national labs, and state and federal agencies. Also included are universities and 133 member organizations.

Alternative options

Sustainability of conventional fuels is a growing concern. Though new technologies permit drilling down deeper in deeper waters, interest in alternative fuels is increasing.

Thursday morning kicks off with a panel discussion on Ocean Thermal Energy, turning the solar energy trapped by the ocean into useable energy. First an overview of the latest technology available will be presented followed by papers reporting on technical viability, transportation and storage of ammonia and its possible usage for offshore wind energy, and cost and commercialization challenges.

Running concurrently is a technical session discussing unconventional oil and gas. Oil recovery in tight gas sands, fracturing horizontal shale wells, and surfactant adsorption during CO2 foam flooding will be topics covered by Schlumberger, Halliburton, Marathon Oil Co., and Shell Oil Co. Specific projects will be highlighted to illustrate how technology was successfully used in the field.

LNG and CNG also will be discussed on Thursday morning. New technology to transport these alternative fuels has evolved. The participants will look at new CNG inter-model containers, multi-composite hose for STS LNG transfer, and a new tank containment system for ultra-large LNG carriers. LNG transfer in harsh environments as well as a paper from the Center for Marine CNG, “Marine CNG: Why Hasn’t it Happened?” will round out the program.

The LNG transportation interchange will continue Thursday afternoon. Floating offshore LNG is not new to the industry; however, successful development and design approval have taken over 20 years to materialize. Discussions will center on development of an LNG FPSO, value-chain optimization, ship-to-ship transfer of LNG, safety risk assessment of floaters, and various choices of LNG FPSOs.

Cryogenic pipelines are an alternative to FPSOs as LNG transportation to shore. In a Thursday afternoon session, participants will discuss the risks and benefits to using subsea cryogenic pipelines. Flour Enterprises, Technip, JP Kenny, ITP Interpipe, ABS, Det Norske Veritas, Gaztransport and Technigaz, and Brass LNG will all present papers on this topic.

Case studies

Milestone projects offer insight into successful use of new technologies or existing technologies used in novel ways. Companies will highlight challenges faced as well as lessons learned.

An overview of the Sakhalin-1 project will be presented by ExxonMobil on Monday morning. Sakhalin-1 is an oil and gas development on the northeast shelf of Russia’s Sakhalin Island. It was declared commercial in October 2001.

The Chayvo, Odoptu, and Arkutun-Dagi fields make up the development site; combined they are expected to contain total recoverable reserves of about 2.3 Bbbl and 17.1 tcf. The project is recognized for its successful integration of three-dimensional seismology; reservoir and production engineering; ability to plan and model operations despite 6-ft (2-m) thick ice; environmentally friendly facility design; and its use of the world’s most powerful land-based rig, which drilled vertically and horizontally beneath the seafloor to the Chayvo field some 5 to 7 mi (8 to 11 km) offshore to set 17 world records for extended-reach drilling. It also set records for drilling speed.

TDW Offshore Services will discuss Independence Hub deepwater riser flex joint repair work.

The Monday afternoon session will feature a program on the Thunder Horse drilling riser centralizer. The program will cover technology-specific topics such as the riser hang-off tool, quick-disconnect goosenecks, and the drilling riser centralizer. The presenters also will discuss riser forces and reactions, operational uncertainties, and system design.

Designed to process 250,000 b/d of oil and 200 MMcf/d of gas, theThunder Horse platform will support up to 25 subsea wells. It is 150 mi (241 km) southeast of New Orleans, in Mississippi Canyon blocks 778/822.

Representatives from Delaittre Harchambe Consulting will discuss the Moho-Bilondo project on Tuesday afternoon. Moho-Bilondo, the first deepwater development in the Republic of Congo, came onstream in April 2008. The field is 9 mi (14 km) off the Congolese coast in 2,300 ft (701 m) of water and consists of subsea well clusters that flow into a floating processing unit. It is expected to reach a maximum total production rate of 90,000 b/d in 2010.

The participants will talk about the phased approach used to develop the field, the use of flexible risers, flow assurance challenges, the subsea production system, and management of commissioning and startup activities.

The Tahiti project will be the topic Thursday morning. The Tahiti field is in Green Canyon blocks 596 and 640, approximately 190 mi (306 km) southwest of New Orleans in 4,000 ft (1,219 m) of water. The Tahiti field is estimated hold 500 MMbbl of oil from more than 20,000 ft (6,096 m) below the seabed. First production is expected in 2Q 2009.

The session will include an overview of the field development, discussion of the fabrication and installation of the spar belly side strakes, its subsea system, and steel catenary riser and flowline monitoring system.

A Thursday afternoon session will address the Agbami project which is offshore Nigeria. The Agbami field is a subsea development. Its wells are tied back to an FPSO and a dry tree unit with drilling capabilities in about 1,341 m (4,400 ft) of water. Production flows from the dry tree unit to an FPSO for processing. The field came onstream in September 2008.

The panel will tackle topics ranging from delivery of this project without injuries or incidents and incorporation of Nigerian content to more technical issues such as intelligent well completions, the subsea equipment systems and installation contracts, and the offloading system.

Also on Thursday afternoon is a general panel session entitled, “When Failure is Not an Option: Managing Megaprojects in the Current Environment.” The panel, which represents operators, contractors, project managers, and consultants, will take a multifaceted look at megaproject challenges including hostile environments, partner, and stakeholder alignment, organizational effectiveness, and risk management.

Geophysical technology

Advances in geosciences technology mitigate the risk associated with offshore exploration. A Petrotechnical Visualization program will be split into a morning and an afternoon session on Monday. Representatives from Shell International Exploration and Landmark Halliburton will present: “3D Petroleum Visualization: Workflows and Collaborative Solutions to Identify New Exploration Plays, Enhanced Reservoir Characterization, and Improved Drilling and Wellbore Placement.”

Though energy companies have been using seismic imaging for over 80 years, technological developments have improved the exploration discovery rate. Seismic imaging will be the topic of a Tuesday morning session. The papers will center on the future of this technology. Participants will discuss reverse time migration and full waveform inversion.

Modern geophysical technology will be explored further on Wednesday afternoon. Fairways Offshore Exploration will present a paper on exploring bypassed opportunities in the Gulf of Mexico. Another GoM focused paper will discuss identifying and prioritizing exploration areas. In addition, new applications of AVO scanning, which has been around for the past 20 years, will be the topic of two papers within this session.

Methods in Geophysics and Petrophysics will be highlighted Thursday morning. An overview of the horizontal well on the Gimboa field off Angola will be among the topics in this session.

Schlumberger Drilling & Measurements Scope logging-while-drilling and PowerDrive rotary steerable technologies were deployed on the Gimboa field for Sonangol E&P. The success of the technologies in drilling the Gimboa horizontal well led to their use on a subsequent lateral drainhole that represents the longest-ever horizontal well drilled in Angola. Operations were monitored remotely from a Schlumberger OSC Operations Support Center installed in the operator’s office. The lateral drainhole was positioned using Scope technology resulting in a net pay greater than 70%.

The Gimboa field is 85 km (53 mi) offshore Angola in block 4/05 in 700 m (2,297 ft) of water. It was completed in May 2008 and produces to a converted tanker FPSO with an oil storage capacity of 1.8 MMbbl and a production capacity of 60,000 b/d. The Gimboa project consists of three production and four water injection subsea wells, clustered around a central manifold and tied-back to an FPSO.

Subsea success

Key to the continued success of deepwater drilling, subsea technology sessions are among the best attended at OTC. Subsea integrity management will start off the subsea program on Monday morning. Subsea integrity is updated continuously to improve data management. In turn, this data is used to protect personnel, prevent unplanned shutdowns, and avoid environmental damage.

Topics covered in this technical session include asset management, flow assurance, H2S scavengers injection, and subsea pumping stations.

Two technical sessions on Wednesday center on advances in flow assurance. On Wednesday morning, the papers focus specifically on technologies and field applications. Predicting hydrate plugs, flowline plug remediation, produced fluids in flexible risers, and mineral scale removal are among the topics scheduled. A case study of the Papa-Terra project offshore Brazil also will be discussed.

The afternoon session will focus on technologies and field optimization. Papers spotlighting flow assurance, hydrate plugs, pigging, and implementing a real-time production management system will be presented.

Running concurrently is a technical program on subsea compression, separation, and pumping. Subsea processing and boosting, separation systems, and umbilicals are among the technologies discussed in this session.

In addition, two papers will look at the Ormen Lange field. One paper will focus on the subsea compression system; the other will look at its long step-out power supply. The field is 100 km (62 mi) off the northwest coast of Norway on the Norwegian continental shelf in 850-1,100 m (279-3,609 ft) of water. A subsea gas compression system was chosen as an alternative to a costly topside compressor on a floater. Subsea compression on Ormen Lange requires step-out distance of 120 km (75 mi) for power, the total installed power, which will exceed 50 MW, and the system throughput of about 60 Mcm/d (2.1 MMcf/d)

A Thursday morning technical session will showcase subsea inspection, maintenance, and repair. Two specific projects will be highlighted here – Girassol and Independence Hub.

The Girassol field is in 1,400 m (4,593 ft) of water offshore Angola. The paper will focus on the project’s water injection line. The subsea production systems include well manifolds, wellheads, christmas trees, and jumpers connecting wells to manifolds. Development of Girassol entails 39 subsea wells tied into an FPSO. The subsea wells include 23 producers, 14 water injectors, and two wells for injecting the associated gas produced during processing of the crude. Roughly 13 subsea manifolds and associated control systems were installed on the seabed, which requires 500 valves to control the circulation of fluids between the subsea wellheads and the FPSO.

TDW Offshore Services will discuss Independence Hub deepwater riser flex joint repair work. The platform is in Mississippi Canyon block 920 in 7,920 ft (2,414 m) of water. The fields that produce back to Independence Hub incorporate up to 15 subsea wells producing dry gas in water depths of 7,900 ft to 9,200 ft (2,408 m to 2,804 m). Production from all fields is tied back to the central floating host facility via a subsea production, flowline, and riser system. The facility processes the production and provides compression as required for export.

Technical advances

The following programs highlight technological advancements that reduce time and, thus money:

Monday 9:30 am-noon

• Developing the Largest Oil Fields in Saudi Arabia
• Drilling Technology
• New Petroleum Initiatives and Results in Atlantic Canada

Monday 2:00-4:30 pm

• Presalt Challenges: Exploration and Development
• Well Completion Technology
• Structural Integrity Management
• Facilities Technology

Tuesday 9:30 am-noon

• Panel: Management of Technology
• Emerging Technology for the Oil and Gas Industry: Delivering the Largest Oil Increment in the World
• MODU Anchor
• Advances in Flexible Riser Technology
• Spar Technology

Tuesday 2:00-4:30 pm

• Deepwater Riser Technology
• Offshore Pipelines I

Wednesday 9:30 am-noon

• Offshore Pipelines II
• Arctic Exploration, Production, and Transportation
• Advances in Jackup Technology

Wednesday 2:00-4:30 pm

• Panel: Arctic Energy Challenges and Developments
• Advances in Mooring Systems and Materials
• Riser and Pipeline Seafloor interaction

Thursday 9:30 am-noon

• Deepwater Technology

Thursday 2:00-4:30 pm

• Dynamic Design Issues for Deepwater Development
• Offshore Exploration and Production

The Next Wave and Topical Luncheons

Introduced at OTC 2008, the Next Wave program aims at young professionals. This year’s keynote speaker is John Hofmeister, retired president, Shell Oil Co. and founder and CEO of Citizens for Affordable Energy. He will focus on how the industry boom will affect young professionals’ long-term careers. This program runs from 9:00 am to 2:00 pm on Wednesday. Topics covered in the 30 afternoon breakout sessions include career paths, geopolitical challenges, and interdisciplinary teams.

The topical luncheons, scheduled for Monday, Wednesday, and Thursday, include presentations and discussions centered on management, implementation, research, and technology in the oilfield.

Monday’s lunches consist of a discussion by Kathy Dunderdale, minister of Natural Resources, province of Newfoundland and Labrador. Dunderdale will talk about her region’s energy growth and opportunities. Another choice is investing in Saudi Arabia. Amin H. Nasser, senior vice president, Saudi Aramco, will discuss the role of IOCs in this region. An overview of Brazil’s oil industry will be given by Dilma Rousseff, president of board of directors, Petrobras. Also Monday is a paper about energy policy change given by William F. Whitsitt, senior vice president, Public Affairs, Devon Energy Corp.

The Distinguished Achievement Awards will be made Tuesday, May 5. According to OTC, this annual event recognizes individuals and companies that have made outstanding contributions to the offshore industry. The keynote speaker this year is Thierry Pilenko, chairman and CEO, Technip.

OTC will present the 2009 OTC Distinguished Achievement Award for Individuals to Peter G. Noble for his marine design innovations. Specifically, Noble will be honored for his contributions to innovative marine vehicle and floating offshore systems design and engineering, including LNG vessel design, arctic engineering and icebreaker technology, and for his dedication to encouraging and mentoring students and younger professionals.

Sakhalin Energy Investment Co. will be honored with OTC’s Distinguished Achievement Award for Companies, Organizations, and Institutions for the company’s Sakhalin II Phase 2 project. Sakhalin Energy implemented complex integrated project facilities in a technically challenging and environmentally sensitive arctic environment, demonstrating significant achievements in technical excellence, project execution effectiveness, and HSES performance.

OTC also will present a Heritage Award to Wolfgang E. Schollnberger, retired vice president of technology for BP, for his outstanding service to the industry through his advocacy of new technology and his leadership of professional societies, including serving as chairman of the OTC Board of Directors. The award recognizes an individual for distinguished service and significant contributions to the development of offshore resources.

Lunch topics on Wednesday include Arctic Projects given by Herve Madeo, Shtokman first deputy CEO, VP Projects. If you prefer a warmer climate, Gerald North, Harold J. Haynes Endowed Chair in Geosciences, Texas A&M University, will discuss hurricanes. Sure to be a sell-out is the popular Matthew Simmons, chairman, Simmons and Co. Intl. Simmons will talk about peak oil, water, and raw materials. Also on the agenda is a look at future deepwater production facility construction. Robert A. Deason, president and CEO, J Ray McDermott will give this presentation.

There are three lunches to choose among on Thursday. These include talks on oil futures by Dan Pickering, co-president, Tudor, Pickering, Holt & Co.; CNG by Xiuli Wang, vice president and CTO, XGAS; and managing oil technology by Melody Meyer, president, Chevron Energy Technology Co.

Please note that all luncheons require a pre-purchased ticket to attend.

OTC 2009 Spotlight on new technology awards

The winning technologies scheduled to receive 2009 Spotlight on New Technology Awards recognizing innovative technologies affecting offshore E&P include:

• 2H Offshore - INTEGRistick Dynamic Curvature Sensor
• Baker Hughes Inc. - TORXS Expandable Liner Hanger System
• Baker Hughes Inc. - Frac-Hook Multilateral System
• Cameron-Nautronix – NASMUX
• ProPure AS – ProSalt
• Reelwell AS - Reelwell Drilling Method (RDM)
• Schlumberger Subsea Surveillance - subC-strip and subC-collar
• Specialized Products - Pulse Technology-Battery Maintenance, Conditioning, and Charging
• Technip France - Amplitude-LNG Loading System (ALLS)
• US Synthetic Corp. - Diamond Radial Bearings
• VetcoGray - SEM5
• Weatherford Intl - OneTrip StarBurst Multilateral System
• Welltec - Well Cleaner PST
• WesternGeco - Coil Shooting

Industry breakfasts focus on developing regions

OTC and the US Department of Commerce come together each year to organize industry breakfasts. These breakfasts offer expert views on conducting business in developing regions. This year Brazil, Southeast Asia, and Iraq will be highlighted. If interested in attending, please purchase tickets in advance.

Brazilian government officials and industry executives will discuss the state of play in Brazil’s upstream oil and gas sector, with focus on offshore developments, opportunities for small and medium size companies, and the role of Brazil’s petroleum industry regulator.

Top-level government officials and industry executives will discuss regional upstream activities, focusing on gas development and deepwater exploration. In addition, panelists will discuss downstream markets and the potential for further integrating the region’s gas infrastructure.

This forum for Caribbean nations will highlight its oil and gas policies and promote trade and investment opportunities in its oil and gas sectors.