InnovateAn internal technology news magazine by Well Services

Newest offshore coiled tubing unit arrives

Explore the land of “firsts”

Real-time mapping for fracturing

Issue Six ■ March 2003

2

content...

Well ServicesManaging EditorBrett RimmerEditorKaren A. RoachDesignteswww.tesmm.comPrintingClassic Printers, Inc.

ContributorsRaafat Abbas, Sandra Aldana, Teoman Altinkopru, Jean-MarcBoisnault, Ernie Brown, JamieCochran, Dan Domeracki ,Virginia Jee, ChristopherJergovic, Roger Keese, RichardLuht , Badar Malik, Tony Markve, Ali Mazen, Patrick Mukoro, Ivan Munoz, Patty Ocanas,Mazen Omari, Mike Ramsey,Erik Rhein-Knudsen, Jose Rueda, Emmanuel Seenath, Andry Sitorus,Timo Staal, Warren Zemlak,Richard Zinno

Published by Well Services Segment ofSchlumberger Oilfield Services,to inform employees about new technology, products, servicesand applications. Innovate is distributed to SchlumbergerOilfield Services employees.

CorrespondenceInnovate300 Schlumberger Drive Sugar Land, Texas 77478 USA

E-mail Innovate@slb.com

An asterisk (*) in this publication denotes a mark of Schlumberger.

©2003 Schlumberger Technology Corporation.All rights reserved.TSL - 4275

Vision

American Coastal Energy efficiently uses advancesIndependents operate in new paradigm

InnovateAn internal technology news magazine by Well Services

From delivering the newest offshorecoiled tubing (CT) system in Norway

to introducing new CT processes inAlaska, efficiencies plus customer

understanding equal results.

Company Perspectives

A Final Word

Focus on News

Marketing Forum

3

Now interactive, the i-Handbook is available onlineField data handbook makes electronic debut4

Gain in production pleases customerHigh temperature fracturing fluid commercialized5

Will save time and money when working in the fieldReal-time diagnosis planned for preventive maintenance6

New tool provides Rapid Response successLogging multiple laterals in a single run7

Saving time and money on each well Advanced fiber cement controls losses in Indonesia10

A roundup of process improvementsUpward trend continues for coiled tubing drilling worldwide11

Willingness of their clients to be “first” energizes their businessExplore the Middle East and Asia Area12

Correct slurry design was criticalDeepwater cementing solution prevails in Trinidad & Tobago14

Extended crosslink time proves efficient in the Gulf of MexicoNew product and combined system deliver winning punch15

Simulation lays ground work for better zonal isolation in Irish SeaProblematic casing cementation issues resolved16

Reducing our time to market22

Issue Six ■ March 2003

Earn credits to gain recognition and win prizesNew incentive award program and winners announced18

Real-time, on-site, microseismic hydraulic fracture monitoring is hereMicroseismicity forms basis for new world class service8

Service Anniversaries20

Innovate ■ March 2003

Delivery received in Stavanger, NorwayUltimate offshore coiled tubing unit 23

Understanding leads to efficiencies23

3

vision...

Innovate ■ March 2003

Having shaped the future of American Coastal Energyfor more than 30 years, Dave McCarver continues tosee an active role for his kind of independent energyproducing company.

Efficiencies for independentsIn the end, the role of the independent producer is still

about getting oil and gas out of the ground efficiently and

economically whether offshore or land-based. Considering

the scale of the kinds of projects that American Coastal

Energy develops, we can’t afford to carry our own well

research and development (R&D) group. Because of the

availability and efficiency of technology advances provided

by the service companies, we don’t have to.

When major oil and gas producers develop a field, the

huge scale of the projects can support the development of

new technology applications by companies like Schlumberger

in coiled tubing, multilaterals, sand and flow control, as

well as real-time instrumentation monitoring to maximize

the reservoir.

The challenges associated with deep and ultra-deep drilling

have changed the picture for independents. In the past,

independents were able to operate based on their own

experience and that of their well-trained rig crews. Those

days are gone forever.

We have learned to efficiently use the technological

advances developed by the major service companies. With

help from Schlumberger, we can keep hitting our kinds of

home runs in this business.

David McCarver III

President

American Coastal Energy

Innovate ■ March 2003

focus newsThe updated Field Data Handbook for

cementing, stimulation and coiled tubing

(CT) is now available as a desktop

application online—the i-Handbook*

electronic oilfield data handbook.

First published by Schlumberger more

than 35 years ago, this reference has

become an industry standard for petroleum

engineers—providing important data

engineers need to drill and complete

a well.

The i-Handbook is an interactive tool

that provides not only the data lookup

features of previous products, but also

simple to use calculators for the most

commonly used computations, such as

tubular or tank volumes. It makes a

quantum leap forward with its interactive

wellbore diagram that allows the engineer

to build a graphical

view of the wellbore by dragging and

dropping data from the tubular tables. The

engineer can then define various flow paths

in the well and the volumes of the defined

sections will automatically be calculated

and displayed on the diagram. A library of

predefined wellbore diagrams facilitates the

usefulness of this new feature.

The i-Handbook features six sections:

General Information contains conversion

factors, useful formulae, tank and drum

capacity tables and calculator, mud pump

displacement—animator and

calculator, data on API flanges, rings

and gaskets; CT and Pipe Data includes

mechanical properties for API standard

and non-API tubulars like tubing, casing,

drill pipe and CT, drill bit clearances in

casings; Volume features dimensions and

capacities for open hole, tubing, drill pipe

and casing, annular volume for various

combinations of open hole and tubulars,

drill pipe tool joint displacement;

Fracturing includes formulae and

treatment-related information and

calculators, carbon dioxide and nitrogen

data; Cementing lists physical properties of

cement slurries along with several useful

calculators; and acid, Oil and Brine

contains various acid and brine tables

with calculators.

“With the i-Handbook resource,

engineers can do in-field quality checks,

basic materials formulations and quick

cementing computations to expedite

drilling the well,” says Business

Development Manager for Cementing

Roger Keese.

Spread the word among your

customers. The new online

i-Handbook version is available

for download at no cost at

http://www.slb.com/oilfield/ihandbook/. ▲

4

Electronic handbook includes interactivity features

“With the i-Handbook resource, engineers can doin-field quality checks, basic materials formulationsand quick cementing computations to expeditedrilling the well.”

Successfully tested in Texas, Colorado

and Saudi Arabia, ClearFRAC* HT high

temperature polymer-free fracturing fluid

has turned in another stellar performance

in its latest North Louisiana field trials.

Designed to extend the temperature of

viscoelastic surfactant to 275° F, the new

addition to the fracturing high technology

toolbox was recently commercialized.

ClearFRAC HT high temperature fluid

allows fracturing treatments to become

polymer-free in high temperature wells

that would normally use large

concentrations of damaging polymers.

Until now, high polymer-based gels had

to be used to withstand degradation as

the result of high temperatures in

certain wells.

The Hosston formation, where the

latest studies took place, was perfect for

a three-well comparison pitting the new

high-temperature ClearFRAC fluid with

more conventional treatments. The

Hosston reservoir consists of sandstone,

intermingled with streaks of shale, ranging

in depth from 7000 to 9500 ft with static

bottom hole temperatures from 200° to

275° F. Current polymer-based systems

were considered satisfactory, but with

the high amount of polymer left

in the formation (and the resulting

damage in the proppant pack), the

customer could not recover the

maximum amount of gas from

the reservoir.

Enter the better way from

Schlumberger. According to Field

Engineer Tony Markve, “New

technology is of little use if the

economics are not favorable. The

customer feels that the slightly

higher initial costs involved

were more than paid for by

the 45% gain in

production,” he notes.

Lab tests concluded

that high temperature

ClearFRAC fluid

remains stable

at high

temperatures while

creating the needed

fracturing properties.

Postjob pressure matching,

using FracCADE* fracturing

design and evaluation software, accurately

predicted fracturing properties, such as

half-length, effective conductivity and

fracture width for the three wells.

Production was computed on a raw scale

by taking gas production per net foot of

pay to ensure similar comparative grounds

in each well. Customer economic factors,

including initial job costs, net present

value, profitability and return on

investment, were also computed.

Safety and operational aspects also

affect quality job performance. Only two

additive pumps are required with high

temperature ClearFRAC fluid, as opposed

to the five to six pumps required for current

treatments. Plus, high polymer treatments

involve prejob, onsite mixing of the

crosslinker and buffer solutions, which

often contain hazardous chemicals. Thus, a

potential safety issue that could result from

the hazardous fumes that are generated

when mixing these solutions is now a thing

of the past with ClearFRAC high

temperature fluid. ▲

Innovate ■ March 2003

focus on news

5

Newest fracture fluid increases production

When compared with more conventional treatments, including CO2, the new high temperture fracturingfluid out performed the others.

Innovate ■ March 2003

focus on news

When Department Manager Erik Rhein-Knudsen asks a question,

the answer usually results in another patent and another “first” for

Schlumberger. His latest question? “Wouldn’t it be great to have

all the information we need to maximize the use of our existing

equipment fleet?” The answer is a resounding yes. At present, the

Wellsite Delivery Department team is creating and lab testing just

such a preventive maintenance program to deliver capital productivity,

capital efficiency and have the information available in real time.

Currently most Oilfield Services land and offshore surface

equipment preventive maintenance programs are manually

scheduled, based on accumulated unit hours usage.

Programs based on average wear and tear are adequate for many

industrial trucks, vehicles and related equipment, but they are

necessarily conservative for Schlumberger to avoid unscheduled,

costly downtime when providing crucial well site services

for customers.

The new program relies heavily on monitoring all key unit

components. These would include, for example, acoustic

diagnostic, drive shaft torque and pressure measurements, etc.,

combined with complete historical data on each equipment piece.

The program will provide real-time information for accurate

decision making for real-time preventive maintenance, no matter

where the decision is being made, no matter where the job is

being performed.

“The goal is to increase and maximize utilization rates for all

our units, but we are starting first with fracturing,” notes Rhein-

Knudsen, “since fracturing requires more capital expenditure at

the wellsite than other services. While much of the information

associated with this program is proprietary, a good analogy would

be the typical health checkup. Just as the doctor listens while

moving the stethoscope around to find abnormal sounds in your

heart and lungs, having our acoustical diagnostic information

available in real time can nip potential problems in the bud.”

As an example, acoustical information provided by each sensor

opens a window into how a particular piece of equipment is

operating. “Whether from a drive-shaft or hydraulic pump, the

built-in sensor programs allow us to identify any anomalies in real

time for effective action,” says Rhein-Knudsen. “It’s like having

eyes and ears inside the equipment.”

Information for each job

The process also aids in job planning. “A huge advantage is that

we can know in real time how our equipment is holding up during

one job to maximize its usage and adequately plan for the next

job,” Rhein-Knudsen continues. “Our surface units are then better

maintained and more reliable, resulting in increased utilization

rates. Let’s say a particular fracturing job traditionally needed

eight high pressure pumpers. Suppose we can predict the same

performance and the same reliability with only six? We will have

saved our customer a considerable amount of money by not

having to schedule those extra two units.”

The new preventive maintenance program means real-time

data capture and analysis can be viewed from the fracturing

monitoring van or anywhere, for example, the customer’s office,

via InterACT* wellsite monitoring and control system. Field trials

of the program begin in the fall. Will this first result in another

patent for Schlumberger? Rhein-Knudsen didn’t say. But the

savings delivered by these real-time efficiency tools will certainly

help to maintain the Schlumberger competitive edge. ▲

Real-time maintenance problem prevention

6

“A huge advantage is that wecan know in real time how ourequipment is holding up during onejob to maximize its usage andadequately plan for the next job.”

Real-time information on mechanical performance will enable real-timepreventive maintenance to aid in planning.

Recently submitted to the Hart’s E&P

2003 Special Meritorious Award for

Engineering Innovation, the Discovery

RST* reservoir saturation tool for

multilaterals also discovered success in a

recent job in Oman.

According to Rapid Response Project

Senior Engineer Mike Ramsey, planning

and delivering the product “was a year in

the making. Being our first project after

forming the Rapid Response Group, it

provided the perfect opportunity to

answer a specific application and allow

the Rapid Response Group to shine. As is

always the case, the project had to be

delivered in the shortest time possible.

There was little existing technology to call

upon, but the final plan gave our field

organization a specialized product and

solution to help the client. Substantial

additional revenue is expected to be

realized by the Oman office,”

Ramsey says.

The challenge was to provide an RST

profile in one or more laterals of

multilateral wells, on coiled tubing (CT), in

a single trip in the well. The local team of

Operations Manager Timo Staal and

Reservoir Engineer Peter Hook prepared

an analysis of what the end result should

be and submitted it to the Rapid Response

team in Sugar Land, Texas. A project

summary with deliverables and costs was

developed by the Rapid Response team

and presented to Staal, Hook and the

client. “They quickly made the decision to

launch the project,” Ramsey adds.

“The solution was truly elegant,” says

Business Development Manager Teoman

Altinkopru, “since a joint financial

investment was made by Schlumberger

and the client to fund the development of

the envisioned CT tool for the job. A

major challenge called for logging the

laterals required in a single run.”

Wireline Engineer Christopher Jergovic

explains how it works: “The Discovery

RST unit emits neutrons that interact with

the formation and formation fluids. The

neutrons activate the oxygen of the water,

which then decays and emits gamma rays

that are detected by the Discovery RST

technology. Based on the results, we’ve

now proven we can profile the wells and

tailor a treatment on location,” he says.

Product Champion Emmanuel Seenath

recalls, “Oman served as an ideal testing

ground since the Discovery RST

technology combines the Schlumberger

reservoir saturation tool and Discovery

MLT* multilateral tool to guide a reservoir

saturation tool into the lateral legs. We

also showed that when this service is

performed on CT, it can be completed

in one day, versus the typical treatment

of using a workover rig and killing the

well for up to nine days. In addition, the

project served to test the reach of 2-in.

CT and compare enzyme treatments for

water well stimulations, as opposed

to hydrochloric acid treatments,”

Seenath notes.

“Our biggest challenge was not just

selectively entering the desired lateral and

logging as many laterals as required in a

single run, but doing so while the well

was under injection. Entering the lateral

while the well was under injection would

lessen the chances of disturbing the

reservoir and altering the injection

profile,” says Seenath.

Another deliverable of the project was

to ensure that the fluid level inside the CT

did not fall. “It is important to maintain

the fluid level because the neutron emitter

would only see total fluid movement and

could not discern between fluid

movement inside and outside the flowby

housing,” Hook explains.

“Discovery RST technology on CT has

provided a huge first project success for

the Rapid Response Group. Three

openhole laterals were entered on the

first attempt in the Shuaiba well in the

Saih Rawl field in Oman. With the help of

Discovery RST technology, Reservoir

Engineer Peter Hook was able to

successfully map a water injection profile

in an openhole multilateral well.

Operations Manager Timo Staal has

already identified approximately 160 of

the customer’s wells that will benefit

from this service,” Ramsey concludes. ▲

Innovate ■ March 2003

Discovering success with cross-

segment initiatives in Oman

focus on news

7

The group successfully mapped a waterinjection profile in an openhole multilateral well.

A major challenge required logging thelaterals in a single run.

“...a huge first project success for the RapidResponse Group. Three openhole laterals wereentered on the first attempt...”

Innovate ■ March 2003

focus on news

8

New and promising well development

innovations don’t come along everyday,

and when they do appear, they aren’t

always properly utilized. Some well

development innovations are not

developed because the supporting

infrastructure either doesn’t exist or

because the technology was considered

too expensive to create. In other cases, a

submerged technology was developed for

use in other industries. Such was the case

for microseismicity. It was a submerged

technology that Schlumberger has now

fully emerged—a proven way to

efficiently maximize the reservoir with

real-time, full images of hydraulic fracture

volume, orientation and growth patterns.

Mining industry helped mature the concept

Before sending miners miles below the

surface, mineral operators needed to

make sure their workers would be safe

when extracting precious materials

beneath the earth’s surface. Whether for

coal or gold, passive monitoring of

acoustic emissions, or microseismicity,

has been studied by the mining industry

since the 1940s. Also used by the

scientific community for earthquake

monitoring, microseismic sensors

continue to provide insight into the nature

of the forces involved.

This was the thinking behind

StimMAP* hydraulic fracture stimulation

diagnostics, the world class, real-time

service that Schlumberger has brought

into practical application.

In fact, according to Director of

Hydraulic Fracture Monitoring and

Permanent Borehole Seismics Richard

Zinno, the science behind StimMAP

technology is related more closely to

earthquake seismology than to reflection

seismology—the methodology commonly

used in petroleum exploration.

“Human activities, such as excavation,

petroleum withdrawal and fluid injection

into the subsurface, cause the earth to

move and shift, just as earthquakes do.

Monitoring the seismic emissions that

result shows the effects of those

activities,” Zinno notes.

Though the oil and gas industry has

just now begun to fully invest in this

technology, as far back as the 1920s, its

usefulness in predicting how petroleum

production could trigger seismic events

has been documented. Plus, commercial

oil extraction or injection has long been

conducted in regions with histories of

natural seismicity. So why is

Schlumberger just now able to offer

microseismic technology for operators to

use in their wells? There are various

reasons, but, in addition to the fact that

the service was often economically

prohibitive, it took some time for the

technology to catch up with the idea.

Digital array recording frequencies and

telemetry rates have only recently

become available to record the low

amplitude, high-frequency signals related

to microseismicity. And, because of the

costs associated with this technology,

most studies were focused on the few

fields where seismic emissions were

detectable at the surface.

Now, with the introduction of StimMAP

diagnostics, the oil and gas industry can

take full advantage of real-time, on-site,

microseismic hydraulic-fracture

monitoring—the best means of acquiring

empirical data on the dimensions of

created-fracture systems. Using a

multilevel acoustic array deployed in an

offset well, credentialed Schlumberger

Microseismic technology offers real-time

fracture-mapping capabilities

Whether viewed outside or at the customer’s office, the StimMAP diagnostic service offersreal-time monitoring while the fracturing operation is taking place.

“The feature that makes this service mostappealing is that it can be performed while thefracturing is in progress.”

Innovate ■ March 2003

seismologists record the microseismic

emissions induced by the fracturing

process. The seismologists use computer

imagery to map the emissions to their

hypocenter location in three-dimensional

(3D) space. The maps are then animated

to show progressive fracture-growth

and the subsurface response to

pumping variations.

“The feature that makes this service

most appealing is that it can be

performed while the fracturing is in

progress,” Zinno explains. Real-time

results are displayed either onsite in the

FracCAT* stimulation control vehicle or,

via the InterACT* wellsite monitoring

and control system, at the customer’s

remote location.

Zinno goes on to note that along with

convenience and real-time results, the

customer gets economic benefits as well.

“Operators derive additional value from

off-site post-processing. Plus, the

increased understanding of the fracturing

process acquired often results in

dramatic cost reductions,” he says.

Saving money and increasing production

StimMAP hydraulic fracture

stimulation diagnostics offers

Schlumberger’s clients a robust, high

tech tool to increase rates of return on

their development dollars in two major

ways: Design better, more effective, well

completions by direct comparison of

empirical fracture maps; optimize well

spacing and placement based on

accurate drainage maps.

“One operator has reduced well

stimulation costs by 35% with hundreds

of wells still left to drill in the field. In

another field, an unexpected fracture

pattern revealed by microseismic

imaging led to alterations in the

operator’s infill drilling program,

dramatically reducing drainage over-lap

and the number of under performing

wells,” recalls Zinno.

Monitoring fracture growth is just the

beginning of StimMAP capabilities.

This breakthrough technology has

multiple applications. StimMAP

microseismic technology can also be

employed as part of the growing

investment in instrumented reservoirs

and thereby offer operators the ability to:

monitor rock mass deformations that

could lead to well failure; map reservoir

compartmentalization by detecting

small movements of minor

fault systems; map water flood

conformance by detecting changes in

seismic activity associated with fluid

movement; and detect and map drainage

related, reservoir compaction and

monitor cap rock integrity.

Since its beginnings in the South

African gold mines, microseismic

monitoring is now a proven technology

from Schlumberger with broad

applications. Many industries have long

seen the value in using microseismic

monitoring systems to address safety

and productivity concerns. Thanks to

StimMAP utilization, the oil and gas

industry can use this emerging

technology to enhance reservoir

development in such areas as tight

gas completions, fault mapping,

reservoir imaging, water-flood

conformance, drilling-waste

disposal and thermal recovery.

The possibilities are vast

and still emerging. ▲

focus on news

9

Recording the low amplitude, high-frequency signals related to microseismicity providesempirical data on the dimensions of created fracture systems.

focus on news

Located in the Central Sumatra basin,

Indonesia, Duri field is the biggest steam

flood project in the world with

multibillion barrels of original oil in place.

Each day more than one million barrels of

cold water equivalent are steam injected

to heat up the reservoir and enhance the

oil recovery. The field, which covers

30,000 acres, produces an average of

205,000 barrels of oil per day. Because of

the field’s geographic composition,

production does not come easily. Several

issues make tapping into the field’s vast

reserves difficult.

The sand is unconsolidated and oil is

produced from a structurally trapped

multi-layered Miocene sandstone at depths

between 200 and 900 ft.

The reservoir structure is naturally

faulted and increases the risks of

interconnecting steam to wellbore and

surface leading to possible well control

issues. The oil in the field is classified as

heavy oil at 16° to 20° API in natural

reservoir temperatures and requires steam

to reduce the viscosity so that it can be

produced via artificial lift equipment.

Because of these obstacles, lost

circulation is not an unusual phenomenon.

The severity of the losses can range from

one barrel per hour all the way to total

losses. The operator drilling in the field

recently ran into just that problem.

The operator drilled through a 521-ft

formation, only to experience total lost

circulation. After an unsuccessful attempt

to cure the loss by pumping 80 barrels

mud with 30 pounds per barrel (lbm/bbl)

of lost circulation material, the operator

called on Schlumberger to create a

solution that would cure losses and

cement casing successfully after blind

drilling to total depth.

The Well Services team designed a plan

that used CemNET* advanced fiber

cement to control losses. CemNET fiber

cement forms an inert fibrous network

across the loss zone, allowing circulation

to be regained.

“We have used CemNET cement system

to cure loss circulation after other

conventional lost circulation techniques

have failed”, says Caltex Pacific Indonesia

- Drilling Engineer Effendhy. “We now

perform blind drilling to TD, set CemNET

plugs, drill out cement and gain mud

circulation. This method has given us

good results to cure loss circulation

problems while drilling and cementing

Rindu formations.”

Well Services Engineer Andry Sitorus

notes that “CemNET has proved its

efficiency in eliminating losses during

cementing operations, and also reduces the

need for costly remedial squeeze

operations. The CemNET fibers are

engineered to the optimal size for sealing

loss zones,” he says.

After just 30 bbls of CemNET slurry

were pumped, the well started to return to

surface and circulation was established

after the cement was drilled out. “The client

was not only pleased with the way we

handled all the loss circulation issues,”

Sitorus says, “but they were very impressed

with the CemNET system as a whole.”

Caltex is now using CemNET fiber

cement on all jobs in which a minimum of

losses are encountered. Thus far, well over

100 loss circulation plugs and primary

cementing jobs have been completed in

Duri using CemNET technology. The

sturdy fiber cement continues to come

through with a success rate of

approximately 90%.

“One of the factors that is making the

CemNET solution so popular with our

customers is its simplicity in job

execution,” explains Well Services

Technical Manager Badar Malik. “The

fibers are easily mixed with cement slurry

while being added in the slurry tub. The

fiber disperses very well and there have

been no issues of any surface equipment

plugging in any Duri jobs. We have already

pumped two CemNET jobs via 1.5-in.

coiled tubing with good results, as well.

CemNET technology is especially handy

for locations with logistic issues. If during

drilling, the customer encounters losses

and decides to pump a loss circulation

plug, CemNET fiber easily converts a

conventional cementing system to a

CemNET loss circulation solution.”

Due to its successes with CemNET

technology, Schlumberger has been able

to replace the competition on six cement

jobs. It is estimated that the efficiencies

associated with the CemNET solution

are saving Caltex around $20,000 and

32 hours of rig time for each well. ▲

Fiber cement comes through in rugged

Duri field applications

10 Innovate ■ March 2003

The fiber component is a key element in theCemNET system, forming a mat-like bondacross the loss zone.

“One of the factors that is making CemNET solutionso popular with our customers is its simplicityin job execution.”

It might seem a stretch of the imagination to see what Prudhoe

Bay and Lake Maracaibo have in common. But with the renewed

interest in coiled tubing drilling (CTD) worldwide, these diverse

areas are creating an enviable track record of Schlumberger

performance in addition to the 19 major clients and more than

20 countries where Schlumberger has conducted CTD operations.

And, as the Alaskan fields continue to mature, CTD is proving

to be the most efficient and economical means of sidetracking

wells on the North Slope. “Through-tubing sidetracking accounts

for 80% of the wells drilled in Prudhoe,” notes CTD Business

Development Manager Richard Luht. Reliability and process

improvements also translate into timesavings. “From an average

20 days to drill and complete a sidetrack with CTD in the early

1990s, the efficient hybrid CTD units are currently drilling three

wells per month per unit,” he adds.

Seeming to enjoy enormous growth with lots of competitive

activity armed with purpose-built equipment, many competitors

have experienced difficulty finding new applications for their CTD

equipment, leading to low utilization rates when CTD activity

recedes. “This is where our commitment to the long haul is now

bringing dividends. We fully evaluate the market, technical and

economic aspects, and prove the technique with existing equipment

before building fit-for-purpose units. The usual capital expenditure

for new CTD equipment runs from $2 to $10 million plus,” Luht says.

Going deeper with CTD in new wells

Moving south to Venezuela, the challenges in Lake Maracaibo

involve those associated with depleted and shallow reservoirs.

Low reservoir pressures, water invasion and sand production are

common characteristics of these wells. Most of the wells have

had several workover interventions with many different

completion scenarios. Representing more than 45% of the total

Venezuelan oil production and after 80 years of exploration and

production, a total oil capacity of 1.8 million barrels of oil per day

by the year 2007 is envisioned for Lake Maracaibo.

When CTD drilling operations started in Lake Maracaibo, the

average time to drill one well was 20 days. In just one year, the

progress in number of days was enormous—7.1 days

improvement and is now at an astounding 3.9 days. A large part of

the success story is attributable to the Schlumberger purpose-built

CTD Barge 1021. This multipurpose vessel was built with safety in

mind since the potential presence of shallow gas sands makes

safety a priority. Plus, its 8.8 ft draft allows access to shallow water

depth areas and well congested zones where its smaller footprint

offers needed maneuverability. Loaded with the latest in CT,

drilling, cementing and wireline equipment, CTD Barge 1021 has

successfully drilled 270 wells, most between 1000 to 1800 ft deep.

A recent joint feasibility study by Schlumberger and Petroleos

de Venezuela, S. A. (PDVSA) explored a new design and

operational sequence for CTD operations in Lake Maracaibo that

could allow deeper drilling, bringing added value to the customer.

Primed for future growth

Trends continue to point the way for CTD success worldwide.

With the recent award of a CTD campaign in the United Arab

Emirates, and the continuation of the CTD operation in Indonesia,

Schlumberger is recognized as the leader in the high tier CTD

market. “Our ability to transfer knowledge into our operations

provides unique customer benefits in this niche market,” Luht says.

“A competitive advantage that Schlumberger has been able to

maintain is our personnel and our various product segments. Our

CTD personnel are cross-trained in measurement-while-drilling

(MWD) systems, drilling engineering, project management and

well services. Advantages that can be recognized from an

integrated approach include real-time data transmission

via the InterACT* well site monitoring system, an integrated

solution provided to the customer, and a single point of contact,”

Luht explains.

“When customers consider all the factors needed for a

successful CTD campaign, we have the technical knowledge,

decades worth of work in this area and the skilled personnel with

worldwide experience who can get the job done,” Luht says.

“Whether our customers need to tap bypassed pay in maturing

fields, reduce damage to the formation through under or

dynamically balanced drilling, test new zones in existing fields or

explore new regions, our structured approach to CTD provides

the Schlumberger advantage wherever our customers are

operating their oil and gas activities,” Luht concludes. ▲

Coiled tubing drilling surpasses

customer expectations

11Innovate ■ March 2003

focus on news

The phenomenal successes achieved with drilling operations on LakeMaracaibo have been supported by CTD Barge 1021.

Middle East and Asia Area

Innovate ■ March 2003

Product development remains a function of the Product Center,

but once the Schlumberger product is developed, testing is

carried out in selected locations. The location of the Middle East

and Asia (MEA) Area offers an extremely fertile ground for such

field trials due to the widely varying conditions and also the

willingness of Schlumberger clients in the region to be “first” in

the world. Once a product or service is proven here, it may

require little (if at all) modification for deployment elsewhere and

in such environments as the North Sea or Gulf of Mexico.

MEA Sales and Marketing Manager Patrick Mukoro feels he was

well-prepared for his role since starting his current assignment in

July 2001. “A broad understanding of all the services is very handy in

the areas of bidding strategies, competition assessment and pricing

techniques,” he notes. “It also applies to the various New

Technology (NT) products and services, enhancing mapping and

improving deployment planning. In this job, one needs the ability to

carry out critical analysis of the market any time or place and then

formulate the necessary action plans to address both the short and

long term goals,” Mukoro says.

“For NT pricing, I believe that we’ve come a long way with the

introduction of the NT Commercialization Guide, introduced early

in 2002. For the first time, we have a well-coordinated and

documented plan to release products and services to the field with

excellent pricing guidelines. In the customization of our products

and pricing, there are four things we must seriously consider:

understanding the total cost to deliver the product or service,

specific to the GeoMarket* Area or location; avoiding the

temptation to go the easy way of “cost plus” pricing; carefully

quantifying the added value to the customer; and knowing what the

competition offers and their value added, if any,” Mukoro explains.

Smart pricing and innovative NT deployment are the winning

combinations for effective contract management, according to

Mukoro. “The more explicit you can express the value, the easier

it is to sell. This is one aspect of the job where field personnel

require training in the ability to negotiate. Very often, I see

situations where our opening positions are too low,” he explains.

“To do my job properly requires that I work closely with the

operations managers and the GeoMarket Technical Engineers

(GMTEs) to execute the plans and strategies to achieve both

short and long-term objectives.”

Structured process assures success

Central to the success of MEA is “our structure in place,” adds

Mukoro. “NT implementation is a primary function of the business

development managers and the Client Support Laboratory (CSL)

technology hub in Kuala Lumpur. First, there is the introduction of

the selected technology, based on mapping and potential impact to

the market or client. In some cases, specific customization is

required. In other cases, an off-the-shelf approach can be used.

Then follows the usual candidate selection, design and application,”

he says. “From that point, the project progression is brought

forward by the individual operations managers and GMTEs.”

This approach has brought high marks for East Africa and East

Mediterranean Operations Manager Jean-Marc Boisnault, based in

Cairo, who has introduced the benefits of LiteCRETE* slurry

system and SCALE BLASTER* engineering approach to scale

removal service to his customers. “But it was our creative use

of VDA* Viscoelastic Diverting Acid that recently brought an

appreciative letter from the General Manager of Scimitar

Production Egypt Ltd. (SPEL)

Mel Trethart,” Boisnault says.

SPEL cited the complete

background study from

Schlumberger, utilizing logs,

drill cuttings, fluids and

production histories, which

provided insights to design the

highly optimized system,

providing the latest VDA-

combined stimulation

technique. The note also praised all areas of the operation,

closing with “good work.”

Saudi Arabia, Kuwait, Bahrain and Pakistan Operations

Manager Ali Mazen has experienced similar successes working

with Saudi Aramco, the world’s largest oil producing company,

12

Ingenuity provides fertile ground for new technologies

The MEA hosted a first of its kind celebration last fall. Patick Mukorowelcomes customers to the New Technology event, highlightingapplication successes.

WPS Business DevelopmentManager Pia Francini receivedtremendous customer responsefollowing the stimulation NewTechnology presentation.

and considers “seeing them very satisfied with Schlumberger

products and services as the best part of my job,” Mazen says.

“We’ve recently field tested the latest ClearFRAC* systems, as

well as DepthLOG* CT depth correlation log. The best teams from

the client and Schlumberger work together through the entire

process of candidate selection, design, execution and evaluation.

Partnering with our clients is our recipe for success.”

Indonesia Operations Manager Warren Zemlak has found that

“careful investigation must be made to understand the NT

potentials that may be of benefit to the client. Often under

existing contracts, NT items can be introduced to improve the

profitability and return of our resources,” Zemlak says. “Even

in a typical commodity market—of which Indonesia is typical—

NT solutions allow us to move away from conventional systems,

allowing us to improve product cost, product revenue ratios and

offer reduced rig time and lower drilling costs,” he notes.

“Well cementing is a good example. Viewed by many as a low-

end service, we have considerable room to move when applying

NT solutions, such as LiteCRETE* and DeepCRETE* slurry

systems,” Zemlak adds.

Based in Mussafah, Gulf Operations Manager Mazen Omari

feels that a major Schlumberger advantage is how “we are able to

use our strong position in the United Arab Emirates to assist

other countries where we have a lower market share,” Omari

explains. His group recently introduced Discovery RST* reservoir

saturation tool for multilaterals to Oman as their latest NT

solution (see this issue, page 7 for details), as well as introducing

FlexSTONE* cementing system for isolating gas wells in Abu

Dhabi and LiteCRETE* slurry system for the first time in Qatar.

For Operations Manager Sandra Aldana, based in Kuala

Lumpur, recent NT successes “included packaging a number of NT

benefits designed to address unique ultra-deepwater activates.

Two clients were involved. Murphy, utilizing a combination of

DeepCRETE* and DeepCEM* deepwater cementing solutions, and

Shell, using DeepCEM slurry and the WELLCLEAN* II Engineering

Solution. These projects were so successful that this technology

has now become a standard system for both clients,” Aldana says.

Recognition is a key element

“One action we take,” Mukoro goes on to say, “is that when

performance meets or exceeds customer expectations, we

make sure that some recognition is given in terms of creating

joint papers, presenting plaques or generating Performed by

Schlumberger (PBS) entries. In 2002, MEA submitted six PBS

entries of which four are directly related to significant NT

achievements,” he notes.

That concept was the basis for creating last fall’s NT

celebration event in Abu Dhabi, according to Mukoro. “It was

the first of its kind and we received overwhelmingly positive

feedback,” he says. “What we did was to invite clients from across

the MEA who are willing to share success stories of the specific

Schlumberger technologies they recently deployed. We briefly

introduced the technologies and the clients took it from there to

present the actual case histories.”

Mukoro feels the benefits of the NT celebration event were

obvious. “Our customers received the satisfaction that

Schlumberger cared and appreciated their participation in NT

deployments. On our part, it gave us the unique opportunity to

cross-fertilize our efforts and achievements in one location with

each other,” Mukoro says.

Going deeper with CTD in new wells

The end result is “still ongoing with our VES deployment,”

Mukoro explains. “We believe that this is a great product with

huge potential and our strategy is to accelerate its deployment in

the shortest possible time. Everyone, clients and employees are

excited about its performance and the results achieved from the

use of this family of fluids. Our plan is to continue to lead the

application and customization of these products with the

objective to achieve over 80% coverage in our area by year end.”

Another important initiative is the “CemCRETE Everywhere”

push, Mukoro notes. “We started last year to deploy the

CemCRETE* technology to gradually replace conventional cement

as much as possible. Our total “CemCRETE” to total cement usage

ratio was nearly one third in 2001 and approached 50% in 2002.

We have the aggressive goal to increase this to two thirds

in 2003,” he concludes. ▲

Innovate ■ March 2003 13

“A broad understanding of all the services is very handy in the areas of bidding strategies, competitionassessment and pricing techniques.”

The New Technology event in Abu Dhabi allowed attendees toshare information and best practices.

As the deepest offshore well in

Trinidad and Tobago, the BP Catfish

project presented many challenges,

including the fact that the original

surface casings were set in weak and

unconsolidated formations that could

result in the loss of the entire wellhead.

Add fluid losses while drilling, gas

hydrates and shallow water flow and

it is not surprising that Operations

Manager Ivan Munoz is grateful for the

latest deepwater cementing solution

based on DeepCRETE* technology.

“Channeling, cement contamination

and loss of zonal isolation could also

threaten the well because of water/gas

influx and the presence of

overpressured sands, requiring heavy

mud to keep the hole stable prior to

running casing,” says Munoz.

Low bottomhole static temperature

(BHST), with its potential for delaying

the compressive strength development

of the cement, was also a factor that

demanded consideration. The correct

slurry design was critical for the

success of the cementing jobs and also

required extensive lab testing and

thorough QA/QC.

DeepCRETE slurry specifically

addresses these needs and has been

engineered to cement weak, shallow

and cold formations in deepwater with

or without the presence of shallow

water/gas flow hazards. The system is

designed to:

■ Help maintain returns during

cementation of weak zones with its

low density.

■ Prevent shallow water/gas flow

migration after cementing thanks to

its rapid build up of gel strength and

GASBLOK* technology.

■ Minimize waiting-on-cement

time with its quick compressive

strength development.

■ Reduce logistics and increase

safety by eliminating the need for

specific foamed cement equipment

and personnel.

■ Have its properties optimized

through CemCADE* cementing

design and evaluation software.

The Catfish operations involved six

casing cement jobs, ranging all the way

from 26-in to 9 5/8-in. casing strings.

Evaluation reports from each job

showed similar results:

■ No downtime during the operation

■ Cement back to the mud line

(for upper strings)

■ No water flow after the cement job

■ No environmental issues

■ Sufficient leakoff test (LOT) to

continue drilling.

Achievements by design for Catfish

also include zero squeezes due to poor

primary cementing. The 16-in. casing

cement job on this well represents the

deepest Below Mud Line (BML) in the

world, utilizing DeepCRETE slurry.

The 20-in. casing cement job associated

with Catfish currently stands as the

fourth largest DeepCRETE job that

has been pumped worldwide. And the

Catfish well itself is the third deepest

worldwide in terms of water depth,

where the DeepCRETE solution has

been used.

Munoz is happy to report that,

considering the potential for problems

associated with this well, the Catfish

cementing jobs were completed with

no delays due to laboratory reports,

no lost time due to shipping material

delays or equipment-to-rig delays. “And

since we utilized an identification dye

on the surface strings, we were able to

reduce cement volumes when

displacement was started, as soon as

we could see the dye returning to the

sea floor. That brought environmental

benefits to all the jobs,” he notes.

In every case, the DeepCRETE

solution worked to meet all the

cementing objectives associated with

this project. ▲

Deepwater Catfish challenges cured with

latest cementing solution

Innovate ■ March 200314

CompanyPerspectives

“Channeling, cement contamination and lossof zonal isolation could also threaten the wellbecause of water/gas influx and the presenceof overpressured sands, requiring heavy mud tokeep the hole stable prior to run casing.”

Innovate ■ March 2003

Commercialized by Schlumberger in February, the earth-

friendly GreenSlurry* gel coupled with a new surfactant and

crosslinker mechanism is helping to deliver a one-two punch

in the Gulf of Mexico (GOM), according to GeoMarket*

Technical Engineer Stephan Harris, based in New Orleans.

“Although other companies have a slurried guar gel that

will pass environmental requirements, their surfactants and

fluid properties are just not of the same caliber,” Harris says.

The newly developed GreenSlurry fracturing gel is in

compliance with the U. S. Mineral Management Service

discharge regulations planned for the GOM, as well as having

received the highest gold band rating for use in the North Sea.

The GreenSlurry system has been used exclusively in place of

conventional slurries in the GOM and is currently being

introduced into the North Sea.

“We pump STIMPAC* fracturing/gravel-packing service to

bypass damage here in the GOM. These treatments must be

pumped with fluids that are completely friendly to the

environment and pass all discharge regulations,” Harris says.

“By combining our new GreenSlurry system with our new

encapsulated crosslinking system specially developed for

GOM operations, we are able to move into deeper water

where the zones of interest are also deeper—some up to

31,000 ft and where the temperature can be under 180° F.

The zones that are being stimulated also have extremely

high permeability,” explains Harris.

“Clients are starting to ask for test results of just the base

system, excluding additives, during qualification tests. This

tells us that the competition is having a hard time presenting a

complete fluid—including the surfactant and delay times—

that meets all of the GOM requirements,” Harris adds.

And the newly encapsulated system from Schlumberger

offers the competitive advantage, since the older wells in the

GOM are now being sidetracked with smaller casings. “We

need to pump at higher rates down long work strings with a

very efficient fracturing fluid. Our fluid was specifically

designed to complete the large, high rate jobs in the deep

water areas of the GOM. As a side benefit, we will soon start

using it in the deep shelf gas plays, as well,” Harris says.

The new encapsulated system enables Schlumberger to

use greatly extended delay times that simply cannot be

achieved with current systems. This reduces the friction

pressure which, in turn, translates into jobs being pumped

at higher rates.

“Our customers benefit from our ability to extend the time

crosslink up to ten minutes for these very deep, very high

volume workstrings. Without our enabling technology, the

customer would be limited to completing some long intervals

in two different treatments, which means more rig time and

hardware costs—or complete them using a gravel pack only,

resulting in a much higher skin and potentially lower

production,” Harris explains.

The field engineers also like the new system since it is so

consistent, “which means no more late nights in the lab,

trying to get the fluid just right,” Harris concludes.

Earth-friendly GreenSlurry fracturing gel, combined with

the new crosslinker and surfactant, is providing the one-two

winning technology punch in the GOM. ▲

15

New earth-friendly system enables higher

treatment rates

By combining systems, Schlumberger can use greatly extended delay timesthat cannot be achieved by competitive systems, as well as being friendlyto the environment.

Having access to the widest range of

tools in the high technology toolbox

means operators can have confidence in

the ability of Schlumberger to accurately

predict the success of their jobs.

Well Services personnel consider a

full range of measures during the

design, planning and execution phase

of each job. A team operating in

Lennox field recently used the

WELLCLEAN II* Engineering Solution

which includes MUDPUSH II* Spacer

and WELLCLEAN II Simulator, as well

as CemCADE* cementing design and

evaluation software, to create a job that

was both effective and environmentally

sound in the BHP Billiton Petroleum

Liverpool Bay Development.

Located on Britain’s West Coast, in

the Liverpool Bay sector of the Irish

Sea, this is home to one of BHP Billiton

Petroleum’s largest projects worldwide.

Total recoverable reserves are

estimated at more than 150 million

barrels (bbls) of oil and 1.2 trillion

cubic feet of gas. In addition to the oil

and gas fields, significant offshore and

onshore facilities are in place for

extracting, transporting and processing

these reserves.

Historically, the Lennox field (with

nine producing wells and two gas

injection wells) has suffered from

problematic 9 5/8-in. casing

cementations where gas migration has

been widespread. Gas pressure buildup

in the 9 5/8-in. to 13 3/8-in. casing B

annulus is also common in many of the

wells. As gas migration to the surface

can have severe safety consequences,

the gas accumulation, which contains

high concentrations of H2S, needs to be

vented periodically to the atmosphere,

posing a risk to personnel working on

the platform.

Using analysis provided by the

WELLCLEAN II Simulator, the

Schlumberger team was able to

determine that a great deal of mud

remained in spite of an existing mud

removal process. Without effective

mud removal, complete zonal isolation

could not be achieved.

As a result, gas migration, sustained

casing pressure and increased costs

were just a few of the risks the

operator faced. From the initial

planning stages, a holistic approach

was taken to ensure that all aspects of

the cementation process were fully

addressed. This includes centralization,

mud removal, slurry properties

(transition time, permeability, and gel

strength development), as well as

other factors.

Using the analysis from the

WELLCLEAN II Simulator, the Well

Services team designed a job featuring

a MUDPUSH II Spacer that not only

offers outstanding suspending

properties at low viscosities, but is also

specially formulated to address

environmental concerns. The spacer’s

properties include lower toxicity, better

bio-degradation and lower bio-

accumulation to produce a minimal

environmental footprint.

According to Well Services Field

Engineer Jamie Cochran, “Reliability in

the output from the WELLCLEAN II

Simulator was achieved by analyzing

the previous cementations that had

resulted in poor B annulus isolation.

The results of the modeling were

High confidence translates into high success

for Irish Sea wells

Innovate ■ March 200316

CompanyPerspectives

“The client was pleased with the job andconvinced that this new design approachis valid.”

Oil Storage Installation

Douglas Complex

Tanker Loading

14" Gas16.8 km

20" Gas33.5 km

Liandudno

Point of Ayr Terminal

20" Gas26.0 km

Connah's QuayPower Station

Liverpool

Hamilton Field20" Gas11.2 km

Hamilton North Field14" Gas114.3 km

Lennox Field14" Oil16" LP Gas12" Injection Gas31.7 km

Liverpool Bay

OperationsSupport Vessel

The Liverpool Bay Development is composed of oil and gas fields, together with significantoffshore and onshore facilities used for extracting, transporting and processing these reserves.

compared favorably with the USIT log

results that were run post cementation

for the well. By analyzing previous

9 5/8-in. casing cementations with the

WELLCLEAN II Simulator and bond

logs, we were able to establish a good

correlation to verify the accuracy of

the simulations for this application.

This preparatory work gave us

confidence in the design which could

be confirmed hours prior to the job,”

Cochran says.

Based on the WELLCLEAN II

Simulator analysis, the team also

increased the slurry’s density and used

CemCADE software to increase and

optimize the displacement rate. As a

result, the well achieved complete

zonal isolation and eliminated the

undesired gas migration to surface.

Complete mud removal was achieved

at the 9 5/8-in. casing shoe, which was

critical for drilling and completing the

well as a trilateral producer. “The

client was pleased with the job and

convinced that this new design

approach is valid,” adds Cochran.

Parameters adjusted as a result of

WELLCLEAN II Simulation for the

BHP Billiton Lennox Well Casing

Cementation included:

■ Reologies of fluids adjusted; Pv of

the spacer increased

■ Spacer volume and type adjusted;

wash removed and 80 bbls of

weighted spacer pumped (as

opposed to 50 bbls on previous jobs)

■ Slurry density increased

■ Care taken to provide good

centralization since simulations

highlighted this criticality

■ Displacement rate increased and

optimized, using CemCADE software.

This design methodology has

recently been proven on a well drilled

on the nearby Douglas Platform, where

gas migration has also been eliminated

with no reported gas pressure on the

B annulus after four weeks. ▲

17Innovate ■ March 2003

ft %0

4500

4000

3500

3000

2500

2000

1500

Clevely'sMudstone

BlackpoolMudstone

Rosal Halte

Andsel Mudstone

OmskirkSandstone

4500

4000

3500

3000

2500

2000

1500

4500

4000

3500

3000

2500

2000

1500

100

The wells were reviewed and the results evaluated using the WELLCLEAN II Simulator. Results were thencompared to actual wireline logs with strong correlations and used to predict success in future wells.

Actual log comparison

Innovate ■ March 200318

Launched this January, the new Knowledge

in Action incentive and recognition

program is announcing its first quarterly

round of award winners and will confer

prizes at each quarter’s end thereafter. The

top winners will accrue their prize credits

in terms of knowledge activity.

“Field users can earn credits in a variety

of ways,” explains Advisor, Stimulation

InTouch Manager Ernie Brown, “by

sharing knowledge, reusing other’s

knowledge and improving

existing knowledge.”

The program has two distinct elements.

There are the top three InTouch field user

awards that are proposed by the operations

managers. The InTouch top ten winners are

nominated by their GeoMarket* management.

“Field users earn credits for sharing their

knowledge; using each other’s knowledge; improving knowledge

quality; and can also earn points when others reuse their shared

knowledge,” Brown adds. A minimum of 30 credits must be

earned to be considered for awards in either category of the two-

fold program.

Earned credits are tracked

InTouch field users can use their individual knowledge

activity report to detail the number of acknowledgements

earned for each of the knowledge activity types. Field users

accumulate acknowledgements in the six knowledge activity

types throughout the quarter. The acknowledgements are

then converted into credits. The sample box shows how one

field user is accumulating credits toward a prize.

Offering a wide variety of prizes

“The awards are tiered in value with prizes that include

travel vouchers, gift certificates, company store items, as well

as special InTouch items,” says Knowledge Management

Champion for Stimulation Jose Rueda. “The highest award is

up to a value of $500. These top winners can pick from a Palm

pilot, a digital camera or other items of equivalent value.”

The real benefits, “center around improving service with

knowledge sharing and reuse,” Rueda notes. “In addition to

supporting the company strategy for Knowledge

Management, the program allows us to measure the financial

impact, in terms of time and money saved,

from sharing and reusing our knowledge.

We believe it will create enthusiasm

among field users and help operations to

reuse best procedures, techniques and

proven practices from other groups.”

The new Knowledge in Action program

will replace individual program efforts

with one common incentive program

without increasing overall cost.

Administration for determining the

winner is done by InTouch managers.

Start generating your individual

knowledge activity report by accessing

InTouch online. Then select My

Profile>>My Reports>>Knowledge>>

Knowledge Activity By User>> Generate

Report, and your submission just might

be a winner.

Here are the current winners

Case History 3316739

By combining organic mud acid (OMA) with organic clay

acid (OCA), the team was able to increase the production

of a well in the Gulf of Mexico that was experiencing a steep

decline in production. This report also provided summaries

of the diagnostics, recommendations and postjob results

of the application in a two-layer gas well completed with

STIMPAC* fracturing/gravel-package service to bypass

damage. After determining that the skin factor of both layers

had increased during production time, the Schlumberger

team recommended performing the matrix acidizing

treatment with OMA, then followed by OCA to dissolve and

stabilize the fines, which had migrated into the near wellbore

region and fracture. The well production increased to 14,300

Mscf/D after the combination of new technology and

products was applied during the job.

Awards program keeps getting better

CompanyPerspectives

Activity types CreditsSharing 10(Validated content consisted of best practices, solutions, etc.)

Edit bonus 5(The shared credit was clear andrequired little editing)

Reuse 3(Credit given because others used this person’s content)

Feedback to others

Use 3(Indicates usage of the person’s content via feedback)

Technical improvement 4(Confirmed via feedback)

Editorial improvement 1(Editorial improvement via feedbackto this person’s existing content

WPS - Well Production ServicesSalah Al-HarthyGeoMarket* Technical EngineerAbu Dhabi, Arab Emirates

Accruing Prize Credits

Case History 3335156

This document discusses the best practices that have been

developed over the last couple of years in Tengiz, Kazakhstan

when operating with coiled tubing (CT) in extremely sour

Category III/IV wells, extreme working conditions with

temperatures ranging from – 40° to 40° Celsius, and pumping

highly flammable fluids. The discussion includes a thorough

coverage of wellhead equipment rigup and the strategy behind

the choice of this configuration. Category III/IV operations

mean regularly working with CT at around 9,000-psi

wellhead pressure (WHP) with occasional CT jobs having the

potential to approach 10,000-psi WHP. Noteworthy inclusions

are the plans for safety improvements in the rigup through the

incorporation of newer equipment with better specifications.

And, since hydrogen sulfide is present in the majority of these

kinds of wells in Tengiz, the document also discusses steps and

processes adopted in these operations to mitigate and

significantly reduce the risks involved when operating in these

hazardous environments.

Innovate ■ March 2003 19

Operations SupportJeff BeckelWell Services Delivery Manager Denver, Colorado, USA

WCS - Well Construction ServicesMohammed DooplyTechnical EngineerYangon, Myanmar

CTS - Coiled Tubing ServicesBrian GoddardDESC EngineerTengiz, Kazakhstan

Case History 3414731

Though generally dry in the Western U.S., there are still

problems with moisture in electronic enclosures. Daily

temperature swings in the West cause enclosures to

“breathe,” concentrating moisture inside. For this reason,

this report recommends inserting moisture-absorbents in

these electronic enclosures and using anticorrosion sprays.

This report provides the polymer advantages, noting that the

polymer absorbs more moisture than silica-gel. The

recommended polymer is packaged in cloth bags that are

preferred in this type of environment. The polymer absorbs

water as well as vapor. The products come in bags that can

be reused by heating overnight at 150 to 180° F. The bags

swell up and get hard when they need to be recycled. The

moisture is bonded at the molecular level, so once the water

is absorbed, squeezing the bag will not cause it to be

reabsorbed. In addition to the polymer desiccant, this report

also recommends ways to protect against corrosion and

oxidation. By spraying boards and contacts with the

recommended brand of antioxidant spray and inserting a

vapor anticorrosion capsule in the enclosure, moisture

problems can be greatly mitigated.

Case History 3338907

In Bongkot field, located in the Gulf of Thailand, an

operator experienced the problem of effectively isolating a

shallow gas sand that has a very narrow window between

the pore and fracture pressures. Various cement slurry and

design techniques were attempted without success in the

first three wells. A unique combination of LiteCRETE* slurry

system with GASBLOK* LT gas migration control cement

system and DeepCEM* solution was designed as a way to

solve the problem. The remaining seven wells were

successfully cemented with this design and the logs show

better hydraulic isolation across the shallow gas formations

and there were no indications of an annular pressure

increase nor gas migration while drilling the next section.

The client was extremely satisfied with these results and

estimates the solution has saved at least $10 million.

CompanyPerspectives

30 yearsJohnson, Dennis Sugar LandMoore, Roger Longview

25 yearsArmstrong, Robert GrahamBaugh, Stephen MidlandBravo Delgado, Ismael BalikpapanBryant, Stephen Sugar Land Cannon, Michael WillistonCarder, Wayne LongviewDe Leon, Antonio Elk CityFox, Robert VernalGarcia, Jr., Vidal LemingGarza, Joe AliceHaywood, Ronald AlaskaHuber, Jimmy LongviewMullinax, Stephen Grand JunctionReese, Clay VernalSim, Cheng Chew SingaporeValadez, Jose LaredoWarden, Angela SonoraWhite, Jr., William Longview

20 yearsAdolf, George Karel Brunei Arismendi Anuel, Orlando Jose Maturin Bailey, Michael New OrleansBenbarkat, Sadak Hassi MessaoudBoisnault, Jean-Marc Cairo Bowen, Patricia Rock SpringsEllison, Mark AberdeenForbes, Raymond AberdeenFry, Blair Sherman Raduzhny Giersdorf, Gary AlaskaGuessouri, Mohamed Hassi Messaoud Hardy, Richard WillistonLinares, Alirio Jesus Barinas Miller, Bruce LongviewRozari, Emnual Balikpapan Redjowiyono, Saidi Bin Java Sea Younger, Keith Product Center

15 yearsAltinkopru, Teoman Sugar LandAmbar, Tony Java SeaBakker, Albert Coevorden Barracosa, Carlos Enrique Cañadon SecoBenabdelhafid, Abdelhafid Hassi MessaoudBrowne, Stanley LongviewBuddhu, Mervyn Galiota Cardenas Modrow, Francisco Rio de JaneiroCortes Ramirez, Hector Sugar LandDjembi, Edmond Port Gentil Fanguy, William MauriceHargrave, Ray BroussardMahoney, Michael David MidlandMohammed, Hassan Ahmed Abu Dhabi Mootz, Carl El RenoNepia, Paul Jack Al KhobarOlivares Rosales, Rodolfo Burgos Palle, Kanis Java Sea Patty, Franky Java SeaRasnaadja, Mohamed In Amenas Robichaux, Darren Maurice Schraad, Wolfgang Vechta Sporar, Sharyn Sugar Land Villapana, Antonio Sembrano Kemaman Witt, Irena Sugar Land

10 yearsAl-Bassam, Ahmed Moerdijk Abbott, Dana LaredoBenaceur, NourEddine Marsa MatrouBurke, Kenneth Prudhoe BayDaraf, Abdelhamid Hassi Messaoud Cedeno Quinto, Bernardo Lago Agrio Chaparro Nava, Orlando Jose Las MorochasChristianson, Lyle Whitecourt Dhuyvetter, Charles Prudhoe BayDocherty, Kevin BakuDuerr, David Prudhoe BayEdwards, Douglas MauriceEscalante, Andres VillahermosaGopalakrishna , Rajikumar BIGORANGE 25 Graham, Donald Rock SpringsGriffith, Cedric MauriceGuevara Nunez, Franklin Lago Agrio Igtanloc, Mark Prudhoe BayJimenez, Severo Sebastian Lago Agrio Kincaide, Darrel LongviewLapp, Andreas Vechta Leal Narvaez, Arturo Ciudad del Carmen Lima Torres, Jose Luis Poza Rica Maciel, Sandro MacaeManalili, Gregorio North Africa Miranda Llerena, Julio Lago Agrio Mozill, Greg HoustonOrtiz, Sandro Karim Las Heras Puttaiah, Jayaprakash SingaporeReyna, Reynaldo AliceRiojas, Ruben AliceRodriguez Cervera, Ismael Ciudad del Carmen Saebi, Shahryar Middle East Smati, Rachid Hassi Messaoud Smith, David Prudhoe BaySmith, Roger Prudhoe BaySuire, Jules MauriceVijil, Blanca Sugar LandWold, Mark Alaska

5 yearsAbd-El Manaf, Ahmed Marsa Matrou Abu Helal, Ali Hussain Udhaliya Acord, Timothy LongviewAdam, Shadad Khartoum Ahmed, Mohamed Sief Abu RudeisAhmed, Ragab Rus ShukeirAjaj, Mustafa DohaAllen, William VernalAl-Kharari, Ali Hassan Dubai Al-Qadour, Sulaiman Al Khobar Al Habsi, Jamal Ahmed Amer Abu Dhabi Atwood, Tony Prudhoe BayAuthement, Jason BerwickBaeten, Dan KenaiBaker, David Sugar LandBaldwin, Thelma West Prestonsburg CityBarcant, Margaret MauriceBarrios, Walter Santa Cruz Becerra Cantu, Roberto Reynosa Belaid, Djamel Eddine Hassi MessaoudBeneddine, Laala Hassi Messaoud Bennett, Joe Red DeerBenmir, El Mir Hassi MessaoudBranchi, Andrew Grande PrairieBoyko, Greg Grande PrairieChan, Shyong Woei SingaporeClapp, Judith Kellyville Corkum, Daniel Grande Prairie

Service Anniversaries

Innovate ■ March 200320

5 years con’tChapman, Les DenmarkConde Diaz, David Reynosa Cordaro, Sabrina Milan/RozzanoDacres, Jr., William Sugar LandDavila, Rogelio AliceDavis, Dennis AlaskaDawson, Grady West Prestonsburg CityDiaz Minghetti, Miguel Angel MaturinDickson, Michael Aberdeen El Tayeb, Khalid Khartoum Escobar, Elias AliceFatha, Abdul Java Sea Fraser, Greig AberdeenGafar, Haithem Al Khobar Garcia Alvarez, Henner Alejandro Yopal Garcia, Francisco LaredoGarcia, Robert AliceGibbs, Jesse Grande PrairieGirouard, Kirk MauriceGomez Bobadilla, Rosa Angelica Reynosa Gonzales, Oliver AliceGonzalez Arbelaez, Edwin Villavicencio Gomez Zarracino, Bernabe VillahermosaGriffith, James Rock SpringsHadaji, Larbi In SalahHassan, Mohamed Abu Rudeis Hebert, Clark Houston Hernandez Cordova, Luis Alberto Ciudad del Carmen Himel, Daniel MauriceHorn, Michael LongviewHowell, Kyle KenaiHutcheson, James BeckleyHutapea, Tumpal Bottesford Hylsky, Edward Port Gentil Ibrahim, Mohamed Rus Shukeir Iskandar, Iskandar Balikpapan Islam, Asraful Hassi Messaoud Jamieson, Giuliana Aberdeen Jensen, Jacob DenmarkJensen Q., Sten DenmarkJepson, Don George Aktau Jimenez Ricardez, Jose Alfredo VillahermosaJones, Michael MidlandJumaa, Moosa Khartoum Justus, Frederico Santa Cruz Kaskalla, Lordon FarmingtonKefi, Slaheddine Sugar Land Kelkar, Shrihari VernalKikuchi, Hiroaki Nagaoka Kimmins, Daryl Red DeerKoh, Chee Hui SingaporeKrizou, Said Hassi Messaoud Kyaw Nyunt, Michael SingaporeKyzer, Beth Ann SonoraLarson, Arthur Williston

Law, Kevin DartmouthLazreg, Nabila Hassi Messaoud Lebada, Maamar Hassi Messaoud LeForce, Roy New OrleansLi, Jack Sugar Land Littlewood, Christopher Prudhoe BayLouviere, Russell MauriceMacDonnell, Edison Fort St. JohnMalayattil, Rajesh Abu Dhabi Mc Clelland, Kenneth Udhaliya McDowell, Ryan CalgaryMechta, Sofiane Hassi Messaoud Mehdizadeh, Mohsen LongviewMohamed, Abdullah Khartoum Muluk, Nofri Java Sea Myles, Kevin Alaska Mogensen, Lars DenmarkMohamed, Idris Khartoum Narcisse, Matthew MauriceNwabuoku, Kennedy Raduzhny Nyuli, Greg Red DeerOchoa Delfin, Rubelio Reynosa Oestergaard, Flemming DenmarkOrtiz Varon, Raul Yopal Pallares Moreno, Henry LimaParkhomenko, Anatoly Aksai IPeek, Kevin LongviewPatey, Michael Aberdeen Pham, Hau Sugar LandRajan, Kadappuram Abu Dhabi Rodriguez Delgado, Wilson Yesid Yopal Romero, Andrew AliceRomero, Oscar Neuquen Rosalyna, Visca Java Sea Rowell, John AlaskaRuiz Patino, German Eduardo Lago Agrio Sadek, Sadek Cairo Salam, Abdul BalikpapanSalem, Mohamed Abu RudeisScranton, James AlaskaShaikh, Humair PerrytonSilva, Jair Sao Mateus Stannard, Bryan Yon Aberdeen Stevenson, Casey Farmington Subchan, Mohamad Balikpapan Suthichoti, Polpipat Stavanger Tampubalon, Kelly Caltex DuriTesta, Umberto Port Harcourt Thein, Than Oo Singapore Thomas IV, James BeckleyTrabelsi, Habib Sfax Trevino Moreno, Rigoberto Burgos Valon, Liliane Macae Velasquez, Jesus Las Morochas Walker, Jimmy BryanWeiss, Adrian MidlandXu, Ron Sugar Land

21Innovate ■ March 2003

Innovate ■ March 200322

The annual drive to collect input to R&D is underway. This

year, the broadest array of Schlumberger staff ever will contribute

from Field Personnel, GeoMarkets and Areas to Segments,

Eureka Communities, Global Account Directors, Theme Groups,

Solutions Groups, Product Centers and research teams.

The market value and potential return on investment (ROI)

for each input are rigorously evaluated and tested in multiple

marketing and business reviews to assure accuracy and the

best possible chance for success. Final approval of the

Segment and Solution R&D Input portfolios comes from the

highest levels in Schlumberger. Along the way, each of us has a

responsibility in the process and the results.

Once the portfolio is final, the work begins in earnest!

The Product Centers develop and deliver new technologies for

deployment in the field. This is where the “Time to Market”

becomes critical. There is never a moment to lose in the race

to bring our best and newest product to our clients.

The chart on this page shows the typical product life cycle.

Positioning our products to make the greatest sales impact—at

the far left of the curve maximizes the financial reward of each

product. Shifting the curve to the left also makes it more

difficult for our competitors to make money and take market

share with “copy-cat” products that inevitably follow our

product successes. Clearly, speed is a key to maximizing our

pricing and profitability.

Marketing and Business Development staff are building new

and dynamic support to help the GeoMarkets (and you) move

commercialized

products to market

faster and more

efficiently. Last

year, we

distributed the New

Technology

Commercialization

Plan for each product

released. These books

contain technical product

descriptions, market

positioning strategies, pricing strategies, client reviews,

anticipated competitor response, roll-out schedules, product

support information and descriptions of specially developed

promotional materials. Later this year, we will be releasing

fully digital versions on a secure Well Services web site.

Our goal is to give the entire Schlumberger organization the

best tools to make

positioning our products

faster, easier and more

effective.

In light of these

efforts to build on our

technology heritage,

you are encouraged

to use the Schlumberger Communications Signature—a world

of answers—as part of your personal signature, to sign off or

end marketing communications materials. “A world of

answers” makes a critical distinction since it’s not only about

the technology we offer, it’s also about the network of highly-

motivated experts we’ve formed who help solve even the

most challenging problems. A world of answers—the most

salient reason for why our clients choose, and remain

loyal to, Schlumberger.

The “Time to Market” is NOW!

Dan Domeracki

Marketing Manager, Well Services

marketingforum

Stage 1 Stage 2 Stage 3 Stage 4Market

DevelopmentGrowth Maturity Decline

1 2 3 4 5 60

5

10

15

20

25

Years

0

Sales

Volum

e (do

llar i

ndex

)

The need for speed: reducing our time to market

Innovate ■ March 2003 23

a finalword...

The second weekend in March saw

the delivery of the new Coiled

Tubing SEAS* Coiled Tubing Safer,

Efficient Automated Solutions unit

in Stavanger, Norway. Developed

jointly with BP Norway and

engineered by Schlumberger, this

special project has created the

ultimate offshore version of the

land-based CT Express* unit.

The offshore edition improves the

safety and efficiency of the current

well site delivery process, as well as

lower the total system cost to the

customer. It is a modular package

that, by combining major

components, simplifies rig-up

operations, attains zero discharge

and provides optimum space

utilization with maximum versatility.

Improved ergonomics and a high

degree of automation allow the job

supervisor to focus more on the well

treatment. The Coiled Tubing SEAS*

unit is already booked for work.

The latest offshore technology arrives

Innovate is dedicated to informing all

Well Services personnel about the New

Technologies (NT) that are continuously

being developed and showing the impact

they have in the four corners of the world.

In today’s ever changing oil and gas

industry, it is not just the use of NT that

will bring success to our clients and to

Schlumberger. More importantly, it is

developing a true understanding of our

clients’ problems and through the use of

sound engineering practices, correctly

applying the required technology that will

bring the greatest returns. This issue

applauds the efficiencies behind our most

recent NT applications.

Brett Rimmer Managing Editorrimmer@sugar-land.oilfield.slb.com

www.slb.com/oilfield