introduction of a hydraulic rig – how to lose friends ... · introduction of a hydraulic rig –...
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Introduction of a hydraulic rig – how to lose friends & influence people
© Contact Energy Limited 3 April 2013 Document title 2
Where are we?
3 April 2013 Document title 3
Background to the introduction of a new hydraulic rig to NZ
MB Century drilled more than 50 wells and over 100,000m with Rig 27 since 2005
© Contact Energy Limited 3 April 2013 Document title 4
It’s not broken so why fix it?
• To help us achieve our vision of zero harm
• To be able to drill closer to town
• To drill more efficiently
• Benefits listed in RFP:
– Potential reduction in incidents by 60%
© Contact Energy Limited
– Potential reduction in incidents by 60%
– Slightly smaller footprint – 15%
– Quieter – stated 45 dBA at 250m and no squeaky brake!
– Quicker drilling times
– Reduced rig move loads and shorter moves (6) days
– Reduced crane dependency
3 April 2013 Document title 5
Rig Specification – HH350B
• Rig, HPU, Generators, MCC, PCR VFD,
Mud System, TDU, CRT made in Italy
• BOP’s and Koomey made by T3 in N America
• Maximum Pull 350 tons (700,000 lbs)
• Maximum torque 4910 daNm (36,200 lbft)
• Range 3 singles
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• Mast 16.6m stroke
• 30 ton pull down
• 37” rotary table
• 3600m 5-1/2”pipe bin capacity
• 30” casing capability
• 3 no. 1000HP mud pumps
• 5 mud tanks - 363m3 (2280 bbl)
• 4 no. Generator Sets 1485 kVa, 1757 bhp
• Skidding system – 3 wells
3 April 2013 Document title 6
Assurance Framework – 5 phases
1• Procurement & Staffing
2• Well Site Selection, preparation & handover
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3• Commission & Integrate Rig
4 • Drill Well One (WK321)
5• Drill Well Two (T8C01)
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Critical Success Factors for Commissioning
Safety – zero harm
Future Well Programme
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No additional cost
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Procurement & Staffing – what was good
• Sign off by Moduspec as part of pre-spud
• 60 day on-site Drillmec support
• OEM parts specified for key components – lift path, well control, mud pumps, pressure control, safety systems
• Contract specification priority over manifest
• Staffing selection and training completed on time
© Contact Energy Limited 3 April 2013 Document title 9
Procurement & Staffing – what wasn’t so good
• Long contract negotiations (9 months +)
• Control of manufacturing process only ½ way into the build
• Desired modifications could not be achieved (carrier axle configuration)
• Improvements such as better secondary retention in mast couldn’t be achieved
• Definition & understanding was weak for Best Practice, FAT, SIT, SAT
• No requirement to supervise manufacturing or FAT testing
• Specification missed 16” casing from contract
© Contact Energy Limited
• Specification missed 16” casing from contract
• Unrealistic expectation on both sides that 1st well will be up to speed
• No contractual requirement for operational commissioning
• What constituted competency was difficult to reach agreement on
• Specify exact standards especially where ambiguity or multiple regs. exist – to ensure rig is built to NZ/AU standards & regulations
• Clearly define what needs to be installed for spud – e.g. Pipe bins – up or down, all or some, rig release bins and pipe handler up or down?
• Clearer notification requirements of defects – how, when, what?
3 April 2013 Document title 10
Manufacturing – the bad bits
• You only get what you ask for (CE mark, toolshed, paint)
• Some commissioning in the factory was poor
• Pipe handler was never commissioned or tested satisfactorily in Italy
• Pipe handler did not fit to rig without modification
• Support beams for rig carrier did not fit
• Mud pumps have caused some problems and delays
• Lack of information regarding interlocks and P&ID diagrams
© Contact Energy Limited
• Lack of information regarding interlocks and P&ID diagrams
• Lack of manuals for much equipment including H2S system
• Suction line in wrong place from supercharger skid to pumps
• Torque wrench and power tong clashing
• Numerous minor issues
• Poor handrail fit
3 April 2013 Document title 11
Shipping
• Scheduled for 8 weeks but took 12
• Contractor had no control over shipping
• Boat was very slow
• Heavy damage sustained in transit – pipe handler requiring significant repairs
• Customs clearance was very smooth with unloading straight onto trucks
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unloading straight onto trucks
• Several minor items missing on arrival
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Simulator Training Italy
© Contact Energy Limited 3 April 2013 Document title 13
Training
• Contractor sent crews from AD up to Italy
• Electricians and Mechanic training
• Contact sent Company Man, Senior DE and Drilling Manager
• Training was high quality and comprehensive
• Opportunity to meet senior Drillmec staff
• Opportunity to ask DWOP questions
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• Opportunity to ask DWOP questions
• Drillmec flew trainers to NZ to train remaining crews and third parties in New Zealand
• Short shift crews during commissioning and 1st well so they get good exposure to operations
3 April 2013 Document title 14
Well Site Selection, Preparation & HandoverWell Site Selection
© Contact Energy Limited 3 April 2013 Document title 15
Well Site Selection, Preparation & Handover
• The perfect site?
• Very close to office
• Most predictable geology and drilling in the Wairakei Field
• Good offset information
• High profile placement for public viewing
• Easy to control visitors
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• No nearby residential neighbours
• Close to Contractor yard
• Laid up our workover Rig 16 for the period to concentrate on Rig 32 introduction
• Optimisation of drill layout carried out
3 April 2013 Document title 16
Commissioning
• Commissioning period extended for 2 wells
• Contact and Contractor had very different ideas about what a commissioning plan looked like and who was responsible
• Initial resistance from third parties to engage in the process (BAU to solve on the job)
• Contractor initial commissioning planning was poor
• Had suspension clauses in third party contracts to cover extended commissioning
• Lots of questions raised in DWOP’s
© Contact Energy Limited
• Lots of questions raised in DWOP’s
• Operational commissioning critical – e.g. running casing, lifting ops, wireline
• Amount of certification and data to review is huge
• Daily meetings once rig arrived
• Additional Company Men used in Assurance role during commissioning
• Sought advice and experience of other operators around the world
• PLC & calibration issues required attendance by Drillmec from Italy (10 day delay)
3 April 2013 Document title 17
Assurance
• Vital to integrate as much as possible and test at factory prior to shipping
• Factory Acceptance Testing paperwork was average quality – 1600 pages
• MBC employed Moduspec to witness FAT testing – insufficient and several visits should have been made
• Lack of Drillmec recommendations for FAT, SAT and SIT testing
• Contact employed Moduspec to provide Electrical, Mechanical and DROPS inspections and surveys – part of pre-spud
© Contact Energy Limited
inspections and surveys – part of pre-spud
• Defect reporting was critical to keep in touch with delays
• Daily commissioning report updates vital
3 April 2013 Document title 18
People
• MBC had up to 8 FTE’s during the mid to late stages of procurement
• Contact employed a contract Project Manager with 20+ years experience
• Contact team involved Project Sponsor, 2 Company Men, 5 Drilling Engineers, admin
© Contact Energy Limited 3 April 2013 Document title 19
Drillmec SupportManufacturer Support
© Contact Energy Limited 3 April 2013 Document title 20
“It could have been better”
MB Century
24 hour helpline was called
at 10am Italian time on a
Saturday morning. The
answerphone message said
please call back Monday at
08.30 as the office is now
shut!
Hand Rail Incident leading to Injury
• Hand rails were not well manufactured with poor fit, gaps, independent movement and insufficient toe boards.
• This was identified early on but deemed as a low risk to be fixed at a later date.
• A Company Man descending the shaker stairs caught his hand on the temporary fix of rope and ruptured his bicep tendon requiring surgery and resulting in an LTI.
© Contact Energy Limited 3 April 2013 Document title 21
Communication
• Sharepoint set up by Contractor for them to upload documentation
• Team grew all the time and people got missed off important emails
• Decisions being made all the time – vital to use issues and decision registers
• Should have implemented Acconex!
• Version control by Contractor was poor
• Project Administrator was invaluable in arranging meetings, minutes etc.
© Contact Energy Limited 3 April 2013 Document title 22
Time & Cost
• It takes longer than expected to build, ship and commission
• Making changes during manufacturing added considerable build time in the factory
• The ship was very slow due to the level of shipping contract chosen
• Drillmec added an extra unexpected 10 days to commissioning for PLC and electrical issues to be resolved due to lack of commissioning in Italy
• NZ$500k was budgeted
• It cost NZ$1M to commission
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• It cost NZ$1M to commission
3 April 2013 Document title 23
Analysis of Performance
• Our in-house data analyst looked at time taken to drill sections, run casing etc. for comparison with historic wells (36K data points)
• The well was drilled at P57
• Very little down time during well one
• 96% operating rate
• 2% rig repair
• 2% code zero
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• 2% code zero
• Cementing P18 and lost circulation P16 (good choice of site)
• Some flat spots that need working on:
• Casing operations – P87 – singles so need to run coupled 24” pipe rather than weld
• Tripping – P74
• BOP’s - P92
3 April 2013 Document title 24
HSE
© Contact Energy Limited 3 April 2013 Document title 25
Dedication of HSE Staff was
a big factor in the successful
introduction
HSE
• Development of SWMS – huge improvement over original SOP’s. About 80 new SWMS produced. Good use of photos.
• Development of DROPS photo book – big improvement
• Development of Lift plan book including third parties
• Many items in mast not subject to secondary retention
• Crew used step backs instead of JSA’s or developing SWMS
• Trades now use JSA’s and step backs
© Contact Energy Limited
• Trades now use JSA’s and step backs
• Dedicated HSE personnel required for SWMS development
3 April 2013 Document title 26
Improvements Made
• 3rd party integration and layout optimised to keep worst noise in one area
• Better layout reduced trip hazards
• Separate fuelling for third parties stopped fuel transfers
• New installation solutions for Mud Logging – safer and more robust
• More cement storage for larger jobs
• Additional crew for cementing to manage fatigue better
© Contact Energy Limited
• Silenced booster for Air Drilling
• Silenced Cementing Unit will be procured
3 April 2013 Document title 27
Key risks & issues remaining
- Understanding of PLC issues and implications to operations
- Lack of definitive competency approach
- Level of defects has continued
- Ability to operate rig at production performance
- Safety across all of the above
- Unable to make up 36” BHA
© Contact Energy Limited
- CMUT – can’t run 13-3/8” Geoconn, 18-5/8” & 24” casing issues
- Topdrive gooseneck redesign required to better handle rough drilling
- Lack of storage on or near floor
- Unable to set bend in motors
- Control switches to the mixing pumps at ground level
3 April 2013 Document title 28
Summary of learnings
• Reminding yourself that your role is one of assurance
• Set expectations as clearly as possible in the contract
• Use shock subs to protect TDU
• Ensure that the contractor understands their obligations
• Include lists of standards pertaining to the operations
• Its going to take a long time!
© Contact Energy Limited
• Involve the subject matter experts at early specification and design stage
• There was a steep learning curve for both Contractor and Contact teams
• MBC relied heavily on key individuals with little contingency available
• Revisit DWOP’s regularly as knowledge increases
3 April 2013 Document title 29
We have drilled the first well at P50 cost and time,
no-one got hurt during initial commissioning and we are all still friends!
© Contact Energy Limited 3 April 2013 Document title 30
© Contact Energy Limited 3 April 2013 Document title 31