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INTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre , M. Merliahmad, M. Tivelli Technical Assistance - South East Asia

INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

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Page 1: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

INTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS

F. Daguerre, M. Merliahmad, M. Tivelli

Technical Assistance - South East Asia

Page 2: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 2

Failure – Lack of Structural ReliabilityFailure – Lack of Structural Reliability

Introduction

Well ChallengesWell Challenges

Completion

Production

etc

Well Design

(Load cases –Environment …)

Exploration -Drilling

(Associated services)

Casing + Cementing

Conceptual Vision

Page 3: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 3

Introduction

Well ChallengesWell Challenges

Completion

Production

etc

Well Design

(Load cases –Environment …)

Exploration -Drilling

(Associated services)

Casing + Cementing

Conceptual Vision

Mat

eria

l

Perfor

man

ce

Structural Performance

Life

expectancyW

orking Conditions Wor

king

Con

ditio

ns

Working Conditions

Product Performance

Mechanical Properties

Corrosion&Cracking

Resistance

Dimensions

Multiaxial Loads

Thermal profile

Fluid dynamics

Interaction fluids & materials

Page 4: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 4

Introduction

Well ChallengesWell Challenges

Completion

Production

etc

Well Design

(Load cases –Environment …)

Exploration -Drilling

(Associated services)

Casing + Cementing

From needs to requirements

Mat

eria

l

Perfor

man

ce

Structural Performance

Life

expectancyW

orking Conditions Wor

king

Con

ditio

ns

Working Conditions

Product Performance

Mechanical Properties

Corrosion&Cracking

Resistance

Dimensions

•API 5CT/ISO 11960

•NACE MR0175 /ISO15156

•API 5C3 / ISO 10400

•API 5C5 / ISO13679•Proprietary specs.

Page 5: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 5

Introduction

Well ChallengesWell Challenges

Completion

Production

etc

Well Design

(Load cases –Environment …)

Exploration -Drilling

(Associated services)

Casing + Cementing

From needs to requirements

Mat

eria

l

Perfor

man

ce

Structural Performance

Life

expectancyW

orking Conditions Wor

king

Con

ditio

ns

Working Conditions

Product Performance

Mechanical Properties

Corrosion&Cracking

Resistance

Dimensions

•API 5CT/ISO 11960

•NACE MR0175 /ISO15156

•API 5C3 / ISO 10400

•API 5C5 / ISO13679•Proprietary specs.

Page 6: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 6

Material PerformanceMaterial Properties

•API 5CT/ISO 11960

Page 7: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 7

Material PerformanceMaterial Properties

•API 5CT/ISO 11960

Ys Range [ksi] 40 45 50 55 60 65 70 75 80 85 90 95 100 105 110 115 120 125 130 135 140 145 150 Max HRC

Group I H40 J55 - K 55

N80 Type1 & N80QGroup II M65 22

L80 23

C90 25,4

C95T95 25,4

Group III P110

Group IV Q125

Page 8: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 8

Material PerformanceMaterial Properties

Mat

eria

l

Perfor

man

ce

Structural Performance

Life

expectancyW

orking Conditions Wor

king

Con

ditio

ns

Working Conditions

Product Performance

Mechanical Properties

Corrosion&Cracking

Resistance

Dimensions

•API 5CT/ISO 11960

7.1 Chemical Composition7.10. Hardenability7.11 Grain size

6.2 Heat Treatment

Page 9: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 9

Material Performance

Page 10: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 10

Material Performance

Page 11: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 11

Material PerformanceMaterial Properties

•API 5CT/ISO 11960

7.1 Chemical Composition7.10. Hardenability7.11 Grain size

6.2 Heat Treatment

7.2 Tensile properties7.3-7.-6 Charpy V-notch test7.8 Hardness variation7.14 Sulfide stress cracking

Mat

eria

l

Perfor

man

ce

Structural Performance

Life

expectancyW

orking Conditions Wor

king

Con

ditio

ns

Working Conditions

Product Performance

Mechanical Properties

Corrosion&Cracking

Resistance

Dimensions

Page 12: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 12

Material PerformanceSulfide Stress Cracking Resistance

•NACE MR0175 /ISO15156-2

Page 13: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 13

Material PerformanceSulfide Stress Cracking Resistance

•NACE MR0175 /ISO15156

In environments containing H2S, hydrogen embrittlement, Sulfide Stress Cracking could suddenly occur

Mat

eria

l

Perfor

man

ce

Structural Performance

Life

expectancyW

orking Conditions Wor

king

Con

ditio

ns

Working Conditions

Product Performance

Mechanical Properties

Corrosion&Cracking

Resistance

Dimensions

Page 14: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 14

Material PerformanceSulfide Stress Cracking Resistance

1. Chemical composition, method of manufacture, product form, strength, hardness of the material and its local variations, amount of cold work, heat-treatment condition, microstructure, microstructural uniformity, grain size and cleanliness of the material;

2. H2S Partial pressure in gas or equivalent concentration in water phase.

3. Acidity (in situ pH) of the water phase.

4. Chloride ion concentration in the water phase

5. Presence of sulfur or other oxidants

6. Exposure to non-production fluids

7. Exposure to temperature

8. Total tensile stress: applied stress plus residual stress.

9. Exposure time.

Factors interacting in the performance of steels

Page 15: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 15

Material PerformanceSulfide Stress Cracking ResistanceH2S pp > 0,3Kpa (0,05psi)

Page 16: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 16

Material PerformanceMaterial Properties

•API 5CT/ISO 11960

Page 17: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 17

Material PerformanceMaterial Properties

•API 5CT/ISO 11960

•Supplementary Requirements

•Product specification Level

•Mechanical Properties

•Statistical testing

•NDT acceptance criteria

•Inspection Frequencies

Risk Concern ?Risk Concern ? Improve Structural ReliabilityImprove Structural Reliability

SR12. Statistical analysis of impact testingSR16. Impact testing (Charpy V-notch) for pipeH.2.2 Grade N80Q, PSL-3 (6.2.2). Only N80Q shall be furnished for PSL-3.H.4. PSL2 C90, T95, Q125. Chemical composition shall be Type 1.H.5 Yield strength - Q125, PSL-3. The maximum yield strength shall be 140 ksiH.6.1. PSL2. Charpy, minimum 75% shear area.H.7. PSL2 L80 Type 1: Hardenability 90%. PSL3 C90 & T95: 95% H.9 Sulfide stress-cracking - PSL-3. Method A testing with a load of 90% SMYS.

Page 18: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 18

Material PerformanceStructural Performance

Mat

eria

l

Perfor

man

ce

Structural Performance

Life

expectancyW

orking Conditions Wor

king

Con

ditio

ns

Working Conditions

Product Performance

Mechanical Properties

Corrosion&Cracking

Resistance

Dimensions

Page 19: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 19

Material PerformanceStructural Performance

•API 5C3 / ISO 10400

Mat

eria

l

Perfor

man

ce

Structural Performance

Life

expectancyW

orking Conditions Wor

king

Con

ditio

ns

Working Conditions

Product Performance

Mechanical Properties

Corrosion&Cracking

Resistance

Dimensions

Page 20: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 20

Material PerformanceStructural Performance

•API 5C3 / ISO 10400

Classical approach, deterministic, smooth body continuous mechanics

Statistical approach, realizing the variability of product parameters

depending no actual process control capabilities

Influence of imperfections and material fracture toughness in the

product rupture.

Page 21: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 21

Material PerformanceStructural Performance

•API 5C3 / ISO 10400

6 Triaxial yield of pipe body

7 Ductile rupture of the pipe body

8 External pressure resistance

9 Joint strength

Annex B (inf.) Discussion of equations for ductile rupture

Annex D (inf.) Discussion of equations for fracture

Annex F (inf.) Development of probabilistic collapse performance properties

Annex G (inf.) Calculation of design collapse strength from collapse test data

Annex K (inf.) Tables of calculated performance properties in SI units

Page 22: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 22

Material PerformanceStructural Performance

•API 5C3 / ISO 10400

6 Triaxial yield of pipe body

23 May 2011

Internal Pressure

External Pressure

TensionCompression

YsYs

External Yield

Internal Yield

+

_

+

_

Page 23: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 23

Material PerformanceStructural Performance

•API 5C3 / ISO 10400Annex F (inf.) Development of probabilistic collapse performance properties

Page 24: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 24

Material PerformanceStructural Performance

•API 5C3 / ISO 104007 Ductile rupture of the pipe bodyAnnex B (inf.) Discussion of equations for ductile ruptureAnnex D (inf.) Discussion of equations for fracture

Final failure must consider the imperfection acceptance levels

Annexes K and L: Burst for P110 at 12,5 % and at a 5 % NDT inspection level.

Supplementary requirements, like SR2, or PLS 2 /3 in API 5CT – ISO 11960 for a higher structural reliability becomes evident.

Rupture could be ductile or fragile, with different mechanisms and quite different load levels.

H2S will affect the actual toughness and then special formulas are to be considered. Several work is ongoing in this regards.

Page 25: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 25

Material PerformanceStructural Performance

•API 5C5 / ISO 13679

Mat

eria

l

Perfor

man

ce

Structural Performance

Life

expectancyW

orking Conditions Wor

king

Con

ditio

ns

Working Conditions

Product Performance

Mechanical Properties

Corrosion&Cracking

Resistance

Dimensions

Page 26: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 26

Material PerformanceStructural Performance

•API 5C5 / ISO 13679

For API connections, round and buttress, the main characteristics are covered in API TR 5C3 / ISO TR 10400 and tabulated in Annexes K and L.

The type of conditions in which they are used and their limitations to “low pressure, no critical services” are widely recognized.

API 5C5 / ISO 13679, that establishes minimum design verification testing procedures and acceptance criteria for casing and tubing premium connections

Page 27: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 27

Material PerformanceStructural Performance

•API 5C5 / ISO 13679

It categorizes test severity into four test classes.

Cal I, for liquid service, testing at room temperature without external pressure and bending optional.

Cal II adds thermal cycling with a cumulative exposure of 5 h to gas at 135 °C.

Cal III, for gas and liquid service, includes external pressure in the cycling testing.

Cal IV, for most severe application includes bending, and thermal/pressure-tension cycling with cumulative exposure of about 50 h to gas at 180 °C.

Page 28: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 28

ISO 13679 – Galling Evaluation & Seal capacity under combined loads

Failure testpil+T to F

7.5.8P8

7.3.2

T/C pi w B7.3.4

FMU (B)7.2.5H/L

Bake

MBG (B)7.2.3L/H

MU (A)7.2.2H/L

T/C pi w B T/C pi w B

7.3.2

T/C pi/po

7.3.3

Specimen 8L-H

PFBSThread taper

Specimen preparation Specimen 7L-H

PFBS

Specimen 6H-L

Failure testpo to F7.5.7P7

FMU (B)7.2.5H/L

Bake

MBG (B)7.2.3L/H

MU (A)7.2.2H/L

7.3.4 7.3.4

RRG (B)

7.3.2

FMU (B)7.2.5H/H

Failure testpi+C to F

7.5.6P6

Bake

7.2.4L/H

MU (A)7.2.2H/H

RRG (B)

PSBF

7.2.4

Failure testT to F

MBG (B)7.2.3L/H

FMU (B)

MU (A)7.2.2

Specimen 3H-H

NOM-NOM

7.5.3

Bake7.3.2

Thermal Cycle 7.3.5

po+C to F7.5.4

H/H

L/H

T/C pi/po

7.3.3

7.2.2

Series C Thermal Cycle 7.3.5

Thermal Cycle 7.3.5

Thermal Cycle 7.3.5

7.5.5P2 P4 P5P3

Failure test Failure testT+pi to F

IV & III

Failure testpih+T to F

7.5.1Path No. P1

Structural testsCAL

Failure testC+po to F

7.5.2

Series BT/C pi w B

7.3.4

T/C pi/po

7.3.3T/C pi/po

7.3.3Series A

Bake7.3.2CAL II, III, IV

Bake7.3.2

Bake7.3.2

Bake Bake7.3.2

FMU (B)7.2.5H/LH/H

FMU (B)7.2.5H/H

7.2.5H/H

FMU (B)7.2.5H/L

FMU (B)7.2.5

7.2.3L/H

MBG (B)

RRG (B)7.2.4L/H

RRG (B)7.2.4L/H

H/H

MU (A)7.2.2H/L

MU (A)MU (A)7.2.2H/L

MU (A)7.2.2H/H

Specimen 5H-L

PSBF

Specimen 4L-H

PFBS

Specimen 2L-L

PSBFThread-seal interference

Amount thread compound/torque shown in

each block

Specimen 1H-L

PSBF

Make andbreak properties

GA

LLIN

G R

ESIS

TAN

CE

CO

MB

INED

LO

AD

S

FAILURE TESTS

8 SPECIMENS

Validation Tests

Page 29: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 29

Material PerformanceStructural Performance

•API 5C5 / ISO 13679

-20.0

-15.0

-10.0

-5.0

0.0

5.0

10.0

15.0

20.0

-3,000 -2,000 -1,000 0 1,000 2,000 3,000

Axial Load [kips]

Pres

sure

[ksi

]Load PointsCollapse Pressure95% VMES100% VMES (Y ield)

Test Failure

Page 30: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

DMF 4th Petroleum Forum Federico Daguerre 30

ConclusionsFrom needs to requirements

Mat

eria

l

Perfor

man

ce

Structural Performance

Life

expectancyW

orking Conditions Wor

king

Con

ditio

ns

Working Conditions

Product Performance

Mechanical Properties

Corrosion&Cracking

Resistance

Dimensions

International Standards and Recommended Practice assure the structural reliability.

The application of these documents requires a sound engineer judgment for each application.

Some cases are not considered in these documents, and as stated in API 5CT / ISO 11960 introduction:

“Users of this International Standard should be aware that further or differing requirements may be needed for individual applications”.

Page 31: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli
Page 32: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

© 2010 Chevron

Lessons Learned & Best Practices : Chevron Thailand Shore Base Project

Sansana Malaiarisoon Assistant Manager - Corporate ResponsibilityChevron Thailand Exploration and Production, Ltd.

4th Petroleum ForumMay 27, 2011

May 2011

Page 33: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

© 2010 Chevron

Outline

I. Project Rationale and Description

II. Stakeholder Engagement Framework vs Chevron Project

Development and Execution Process (CPDEP) & Environmental,

Social and Health Impact Assessment (ESHIA)

III. Best Practices and lesson Learned

Potential Impacts on Local Fishery

Complimentary Initiatives

Public Scoping (PP1) vs Public Review Sessions (PP2)

2

Page 34: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

© 2010 Chevron

I. Project Rationale and Description

3

Project Rationale

Offshore platforms of Chevron Thailand are located in the Gulf of Thailand

Offshore platforms are serviced by two shore bases: Songkla and Sattahip , Chonburi provinces

Capacity of both bases are insufficient

Possibilities to expand are limited

We will see increased activity in the near future

Page 35: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

© 2010 Chevron 4

Project Area: 395 rai ( 64 acres)• Land Part: Warehouse • Marine Part: Trestle and Jetty for berthing

I. Project Rationale and Description (cont’d)

Page 36: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

© 2010 Chevron

Phase 1 : Opportunity

Phase 2 :Develop Alternatives

Phase 3 :Develop Preferred Alternative

Phase 4 :Execute

Phase 5 :Operate and Evaluate

5

Monitoring and

Evaluation

Continual Improvement

Awareness

Understanding

Acceptance / EIA submission

Commitment / EIA/HIA and Permit

approval

Deg

ree

of S

uppo

rt C

hang

e

II. Stakeholder Engagement Framework Vs CPDEP

201320102008

Chevron Project Development and Execution Process (CPDEP)

Chevron’s Vision : “to be the energy company most admired for its people, partnership and performance”Chevron’s OEMS Vision : “to be recognized and admired by industry and local communities for its world-class performance on safety, health, the environment, reliability and efficiency”

Stakeholder Engagement & Participation

Environmental, Social & Health Impact Assessment (ESHIA)

Page 37: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

© 2010 Chevron 6

No. of Visits People Engaged with

Within 5 km Radius

Regulatory Requirement (EIA)

Focus Group Meeting 27 440

Public Hearing Meetings 5 2,258

Attitude Survey 1 467

In Depth Interview 1 7

Stakeholder Engagement

Regular Visits 1,147 18,655

Focus Group Meeting s(Informal) 86 2,706

Open House Trips 6 213

Beyond5 km Radius

Regular Visits 368 > 10,000

Open House Trips 11 343

III. Best Practices & Lesson Learned: Stakeholder Engagement Strategy

The Case of CTSB (January 2008 - April 2011)

Page 38: INTERNATIONAL STANDARDS AND … 11-14.pdfINTERNATIONAL STANDARDS AND RECOMMENDED PRACTICES FOR ASSURING STRUCTURAL RELIABILITY ON OCTG PRODUCTS F. Daguerre, M. Merliahmad, M. Tivelli

© 2010 Chevron

III. Best Practices & Lesson Learned: Stakeholder Engagement Strategy (cont’d)

Vision: “To improve the lives of people wherever we work” and to be “neighbor of choice”

Principles Outcomes

Less

ons

Lear

ned

& Sh

are

Info

rmat

ion

with

Pro

ject

Te

amLe

sson

s Le

arne

d &

Shar

e In

form

atio

n w

ith P

roje

ct

Team

Committed to company’s vision & the

Chevron Way

Committed to company’s vision & the

Chevron Way

Sincere & Respectful to community opinions

Sincere & Respectful to community opinions

Transparent & easily

accessible

Transparent & easily

accessible

Strategy

Stakeholder Engagement Plan(Identification & Prioritization)

Stakeholder Engagement Plan(Identification & Prioritization)

Early engagement prior to commencement of project

Early engagement prior to commencement of project

Regular and continual visitsRegular and continual visits

Seek community’s advice & give correct project information

Seek community’s advice & give correct project information

Monthly community meetings & regular engagement via tea shop visits

Monthly community meetings & regular engagement via tea shop visits

Focus groups & community outreach activities

Focus groups & community outreach activities

Open House TripsOpen House Trips

Public relations and dissemination of information via community board, local

radio and print publications

Public relations and dissemination of information via community board, local

radio and print publications

Community Participation from inception of the project

Community Participation from inception of the project

Community has correct understanding of the project & Chevron

Community has correct understanding of the project & Chevron

Community participation in design of project & mitigation measures

Community participation in design of project & mitigation measures

Community needs/concerns & suggestions revealed and listened to

Community needs/concerns & suggestions revealed and listened to

Community participation in M&E of Chevron’s performance in response to

EIA commitment

Community participation in M&E of Chevron’s performance in response to

EIA commitment

Community participation in construction of quality of life development plan

Community participation in construction of quality of life development plan

Better quality of life and well-being for local community

Better quality of life and well-being for local community

Community accepts Chevron as a good neighbor

Community accepts Chevron as a good neighbor

7

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© 2010 Chevron 8

April 2008: Eight focus group meetings with different groups of stakeholders to present the design and seek their feedback Key Concern: Obstruction of breakwater on fishing and sailing routes & Obstruction of public beach

III. Best Practices & Lesson Learned: Potential Impact on Local Fishery

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© 2010 Chevron 9

Solution: Revision of the Marine Part design from a breakwater sheltered harbor to an extended jetty with wave wall.

III. Best Practices & Lesson Learned: Potential Impact on Local Fishery (cont’d)

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© 2010 Chevron 10

With the new design, fishing boats can go under the jetty, alleviating any obstruction and the public beach is no longer obstructed

Impacts were significant since the majority of local community are fishermen

Impacts have been mitigated

Community concerns were incorporated in our assessment and planning

ESHIA is not only a checklist, but strictly enforced

Gains “TRUST” from local community

III. Best Practices & Lesson Learned: Potential Impact on Local Fishery (cont’d)

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© 2010 Chevron 11

Objectives

• To oversee the well-being of fisheries who will be directly affected by the CTSB project

Members 222 members from 4 villages

Roles and Responsibilities

• Set framework and criteria for compensation to fisheries

• Monitor Chevron’s performance on CTSB in response to EIA commitment

• Develop fishery community development plan

Current Status

• 6 meetings organized

• Developing alternative occupation plan for fishery groups

• Serve as a representative on Bi-party Committee

III. Best Practices & Lesson Learned: Complimentary Initiatives - Fisheries Working Committee

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© 2010 Chevron 12

Objectives

• To monitor Chevron’s performance on CTSB in response to our commitment to EIA

Members 24 members from all sectors:

• Community leaders and local experts

• Academics, health, local administrations, fisheries, agriculture and local occupational community

• Committee’s consultant (from community)

Roles and Responsibilities

• Monitor CTSB’s performance in response to EIA commitment

• Safeguard benefits for local community

• To serve as a focal point that echoes community’s concerns and complaints

Current Status

• 8 meetings organized

• Recruiting local community as committee consultants

• We want to transform committee from bi-party to tri-party

III. Best Practices & Lesson Learned: Complimentary Initiatives - Community Advisory Committee

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© 2010 Chevron

The plan is categorized into seven categories:

This plan covers the construction period, up until commencement of operation

2. Community & Quality of Life Development Plan2. Community & Quality of Life Development Plan

7. Fishery Development Plan7. Fishery Development Plan

4. Biodiversity Action Plan4. Biodiversity Action Plan

6. Local Community and Public Participation6. Local Community and Public Participation

1. Education, Culture and Youth Development1. Education, Culture and Youth Development

5. Health & Safety Promotion Plan5. Health & Safety Promotion Plan

3. Community Cooperative Plan3. Community Cooperative Plan

13

III. Best Practices & Lesson Learned: Complimentary Initiatives - CTSB CSR Plan

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© 2010 Chevron 14

No. of participantsKey Success Factors

1. Intensive Stakeholder Engagement

• Early, regular & continuous engagement with key stakeholders

• Various focus groups meetings (Govt, community & medias)

• Songkhla Open House Trips

• Early engagement with Fishery Group

• Establishment of working committee with local community

• Economic benefits & costs study

• CSR project as social mitigation measures

(1,600 PAX)

III. Best Practices & Lesson Learned: Public Scoping Meeting (PP1) vs. Public Review Meeting (PP2)

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© 2010 Chevron 15

Key Success Factors

2. Strategic Preparation & Planning

• Teashop dialog & consistent visit

• Community meeting (i.e. village fund meeting, elderly group meeting and village health volunteer meeting)

• Update information and dissemination via community boards

3. CTSB Model & Animation

• Clear picture for local people to see how they could live close to CTSB project and continue their livelihood.

4. Good Collaboration & Teamwork

• Project Team, HES, PGPA, External Consultants & Experts

Participants on August 5, 2010 (PP2)

III. Best Practices & Lesson Learned: Public Scoping Meeting (PP1) vs. Public Review Meeting (PP2) (cont’d)

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© 2010 Chevron 16

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New Life to Jasmine Field

DMF 4th Petroleum Forum Bangkok26th_27th May 2011

Val Kienast and Rattana W.

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Why “New Life to Jasmine Field ”Production history (arrested the decline and improved reserves replacement)

2010-2011 Infill drilling program results

How Seismic and well integration for well placement , interpretation and reservoir mapping

Enhancing recovery through horizontal wells

Employing some newer technologies on the market to improve oil recovery

Conclusion & Acknowledgements

2

Presentation Outline

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PattaniBasin

Jasmine field

B5/27 Jasmine Field Location

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Production

Produced 35 Millionth Barrel in March 2011

Slowed decline rate and maintained production

Development Drilling

11 Development Wells drilled in 2010

Delivering above expectation

11 Development Wells drilled in 2011

9 wells currently online, remaining waiting for tie-in or completion

Utilized all slots from all platforms

Reserves

2P Reserves Replacement Ratio (RRR) of 0.9 for both years

Jasmine and Ban Yen Highlights 2010-2011 To-date ...

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B5/27 Oil &Water Production …

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2 Platforms

1 Platform

2 Platforms

Wells / Online Year

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WPD

WPB

WPA

WPC

BYA

2011 infill wellExisting well

Increasing Well Complexity ...

2010 infill wellExisting well

WPD

WPB

WPA

WPC

BYA

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Red#. Future WO.

Infill Drilling EUR Delivery – 2010 Wells ...

10 Wells online and delivering above expectation.

One dry well bold test of a similar stratigraphic trap as encountered by BYA-14

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Red#. Future WO.

9 Wells online (C-17,18,19,20,22,23,BYA-09,10 & 23)1 wet (C-21) bold test of new fault block1 gassy (C-23)BYA 24 is being evaluated and completed

Infill Drilling EUR Delivery – 2011 Wells ...

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PSTM_FINAL_NO_WHITINGPHIE

Emerge PHIE cube provide log-type image, top-base sand not peak-trough, easy to work and understand.

The faults are more visible in Emerge data

Emerge data for Well Placement and Interpretation

C20C20

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Strong correlation between seismic and net sand observed from existing wellsNet Sand map is conditioned by seismic attribute

660_1&2 Net Sand Map overlaid by structural contours

660_1&2 penetration point660_1&2 penetration point

PHIE Mean Window Extraction

Reservoir Maps Integrated Emerge Data

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Structural Modeling Reservoir Mapping Net Gas (ft) Net Oil (ft)

Reservoir Maps Integrated Emerge Data

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Expected : Thicker sand trend along NNW-SSE direction

36 ft of net reservoir is expected

Actual : Thicker sand trend along NNW-SSE direction is proven

31 ft f t i i f d

D24

D24ST

D24

Reservoir Map Overlaid by Structural contour Reservoir Map Overlaid by Structural contour

Existing penetration Existing penetration

JAS D24 Pre and Post Drill Comparison

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TD @ 11077ftMD

TD @ 12934ftMD

TD @ 10343ftMD

WPC

WPA

Three Long-reach horizontal / high angle wellsPrimary targets were 50 sands, post drill result opens up more opportunities, north of A platform

Increasing Use of Horizontal Wells ...

C22

C23

C16

Infill drilling

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50 Reservoir Interval

140

HS

Intra HS

50

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680

660

640-2

N S

N S

680

660

640-2

Enhancing Recovery Through Horizontal Wells

Infill drilling

B20

B15ST

B20

B15ST

Increasing oil recovery of reservoirs with defined fluid contacts through horizontal wells

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D-17

D-16

D-14

BYA

BYA-09 BYA-04

Refined Reservoir Definition & Recovery Optimisation ...

BYA09

BYA04

Advanced mapping technique to better indentifyprospect. Advanced well and reservoir management through use of ICDs in Horizontal Wells

Infill drilling

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Maximizing Recovery – Well Optimisation& Application of New Technologies …

Periscope -To steer horizontal wells

Stethoscope - Pressure measurement while drilling

Tractor - Perforation on C-19 high deviated well and cased hole logging.

ICD - BYA-09

Integration of Static and Dynamic data to develop full field reservoir model

Seismic,Seismic,Exploration,Exploration,AppraisalAppraisalRaw DataRaw Data

Hierarchical Hierarchical Rock ModelRock Model

Property Property ModelModel

UpUp--scaled scaled Simulation Simulation

ModelModel

Seismic,Seismic,Exploration,Exploration,AppraisalAppraisalRaw DataRaw Data

Hierarchical Hierarchical Rock ModelRock Model

Property Property ModelModel

UpUp--scaled scaled Simulation Simulation

ModelModel

C16 Periscope

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Taking a new look at seismic helped to target smaller reservoirs and better define the larger established reservoirs.

Applying good Development Geology and Reservoir Engineering techniques combined with some of the newer technology on the market arrested the decline and improved the reserve replacement ratios.

Next step is to apply the static and dynamic modelling for evaluation of the potential for IOR -- specifically utilizing produced water for water-flooding 050 reservoir.

New Life to Jasmine FieldSummary

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Val Kienast (Co-Author) Manora Team leader

Piyatad Tabmanee Jasmine PE

Theeranun Limniyakul Jasmine PE

Carlos Rodriguez Jasmine Senior PE

Fred Houtzager Jasmine Team leader/Chief PE

Christopher Platt Chief Petrophysicist

Jason McClure Supervising Drilling Engineer

Chris Oglesby Chief Geologist

David Carter Chief Geophysicist

Mike Pine VP Development

Ian Anderson Senior VP Exploration

David Johnson President20

Acknowledgements

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The End

5 Year Plan Presentation to DMF – April 2011 21

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2. EMERGE Multi-Attribute Analysis

The Data that EMERGE uses:A seismic volume (usually 3D).A series of wells which tie the volume.Each well contains “target” log, such as porosity, which is to be predicted.Each well also contains the information for converting from depth to time, usually in the form of a check-shot corrected sonic log.

(Optional) One or more “external” attributes in the form of seismic 3D volumes.

The Objective of the EMERGE Program:EMERGE is a program that analyzes

well log and seismic data.It finds a relationship between the log

and seismic data at the well locations.It uses this relationship to “predict” or

estimate a volume of the log property at all locations of the seismic volume.

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Well Fault Block Sands Pre /Post Drill EUR (MSTB)

Initial Rate/Status

C-17 Del-6B 390/50 180/336 >650

C-18 Del-6C 50 250/156 Wait for flowline

C-19 Del-6D HS 200/200 530

C-20 Del-6 245/200/HS/50 125/170 190

C-21 New Fault Block HS/50(Gas/Wet) 216/0 P&A

C-22(H) Jas A_CW 50 230/321 >600

C-23(H) Jas A_East 50 275/To be evaluated 500

7 wells drilled6 wells completedOne dry well, tested new fault blockUtilized all slots in C platformPrimary targets were 50 sands, post drill result opens up more opportunities, north of A platform

Oil Producer

C22

C21

C23 C17

C18C20

C19

2011 Jasmine C Drilling Results

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Well Fault Block Sands Pre /Post Drill EUR (MSTB)

Initial Rate/Status

BYA-9(H) Main 250 300/300 1370 (ESP)

BYA-10 South 245/200/180/160 240/470 500 (ESP)

BYA-23 South/BY2D 460/50 330/316 620 (ESP)

BYA-24 Main 540/50 300/To be evaluated Wait for completion

4 wells drilled and completedUtilized all slots in Ban Yen platformProduction expected to be better than pre drill predictions

Oil ProducerBYA10

BYA09

BYA24

BYA23

2011 Ban Yen A Drilling Results