Drilling advances

	Vol. 224 No. 4
ROBERT E. SNYDER, EXECUTIVE ENGINEERING EDITOR

 World’s first casing drilling from a floater. Weatherford International Ltd. announced that its Drilling & Intervention Services division successfully completed the industry’s first Drilling with Casing (DwC) operation from a Transocean Sedco 601, the semisubmersible rig, in the Madura Strait off East Java Sea, for Santos Madura Offshore PTY LTD. Using Weatherford’s step-change Drilling with Casing technology and a surface BOP, Santos was able to skip the running of its 30-in. casing and downsize the 20-in string to 13-3/8 in. This string was drilled to a depth of 869 ft. The procedure saved 2-1/2 days of rig time – a reduction of over 80% in the overall running time – and enhanced safety, by reducing the number of people on the rig floor during casing running. 

 Using the easily drillable DrillShoe technology, a drillable bit with TSP diamond and tungsten carbide cutting structure, Weatherford eliminates the time-intensive process of retrieving casing-bit BHAs required by other casing drilling methods. Once the casing setting depth is achieved, cementing operations can begin almost immediately. The company says it, “Is pleased with the new milestone in its DwC operations, and believes it shows the industry that, Drilling with Casing is a viable means of drilling, even from a floater.” 

 Updated rig count forecast. Salomon Smith Barney (SSB) has released its Oilfield Equipment & Services, Updating Rig Count Forecast. From the report’s summary, in the first two months of 2003, North American rig counts have been well above expectations. However, this performance was generated in the less-profitable US land and Canadian markets, with offshore markets well below expectations. Moreover, in international markets, the year started out well below SSB’s forecast, particularly in Latin America and Africa. Based on the combined impact of these effects, SSB raised its 2003 worldwide Baker Hughes’ rig count forecast to 2,031 from the previous 1,935, up 5%. The US and Canada have been increased by 7% and 18%, respectively, while international was reduced 2%. 

 The firm continues to forecast 4% to 6% E&P spending growth during 2003, as the loss of service and drilling revenues from lower international and offshore rig counts should offset the higher US land and Canadian activity. SSB said, in further comments, in the first two months of the year, surging natural gas prices drove higher-than-expected rig counts in both Canadian and US land markets. In Canada, the rig count averaged 511 through February, well above the five-year average of 455, and an initial 340 forecast. Meanwhile, the US rig count averaged 877, vs. an 852 forecast, driven by a land rig count of 748 compared to a projected 718. However the Gulf of Mexico market has been stagnant, averaging 110, vs. a 115 forecast, and showing little signs of imminent improvement. 

 In international markets, the Baker Hughes rig count was just 734 in January, suggesting SSB’s initial 761 forecast for the quarter could prove optimistic. The new worldwide rig count forecast for 2003 of 2,031 represents 12% growth, vs. 2002, up from SSB’s previous 6% estimate. 

 Five-year offshore drilling spending. Another major new report launched by energy analyst Douglas-Westwood (DW) forecasts that, over the next five years, 14,626 offshore wells will be drilled worldwide at a total cost of some $170 billion. Of these, development wells will total 10,231, exploration wells 2,665 and appraisal wells 1,730. Deepwater drilling is forecast to see strong growth, with a total of US $40 billion to be spent on 560 exploration, 330 appraisal and 1,465 development wells in deep water. The deepwater share of drilling expenditure, which was around 20% in 2002, will increase to 31% by 2007. The main drivers for this change appear to be an increasing shortage of shallow-water prospects, combined with innovations in drilling technology, allowing deepwater drilling in more extreme conditions, the analyst said. 

 Total drilling and well completion expenditure in 2002 was estimated at $33.5 billion. Global spending is expected to be reasonably steady over the next five years; however, significant changes are expected in some regions. North America, where 4,798 wells are expected, will have the highest share of the total spent, increasing by $2.4 billion compared to the previous five-year period; and similar growth is expected in Africa, Latin America and the Middle East. However, Asia and Western Europe are both expected to see a significant decline in expenditure.

 Water depth capabilities will continue to grow beyond the current drilling record of 2,965 m (9,725 ft), and deepwater wells will partly offset declining activity in shallow waters. A decline in shallow-water activity is being driven by a global shortage of opportunities. Some growth is possible in the Persian Gulf, but this would depend on the controlling governments, primarily Iran and Saudi Arabia. Consequently, most new expenditure on rigs is expected to be directed at upgrades of both jackups and floating rigs to allow faster and/or deeper-water and deeper- reservoir drilling, DW notes. More information on The World Offshore Drilling Report 2003 – 2007 is available at: www.dw-1.com, or admin@dw-1.com. 

 New uses for floating rig designs. A submersible hull is to be used as a radar installation, and other future military possibilities are being considered. Moss Arctic Production’s newbuild 5th-generation semi hull Moss Sirius has been sold to the US government for about $63 million. The rig had been stacked at Sandnesfjord, Norway, following hull construction. The hull, capable of supporting 20,000 t, has been constructed to baredeck level and had been marketed as either a drilling or production unit. The vessel now will likely be outfitted and used as a radar installation according to the Offshore International Newsletter. 

 In related news, Halliburton said the US Navy is looking for “transformational technologies” as new methods to position and deliver troops and supplies throughout the world. Halliburton subsidiary Kellogg Brown & Root (KBR) has been working on a cost-effective solution for over a decade. Mobile Offshore Bases (MOBs), based on semisub drilling rig designs, are under consideration. Interest has continued to grow and KBR is preparing a proposal to acquire and offer a semi to the Navy as a turnkey, fully staffed floating offshore lab. The Navy has reportedly allotted $1 billion in its 2008 – 2009 budget to build a version of an MOB.