OTC PREVIEW

OTC Preview: OTC 2007 will offer solutions on transforming the industry

 Building on the success of recent years, sponsoring organizations have even more innovative features lined up for 2007. 

Lauren W. Raber, Associate Editor

Charging into Houston for the 39th year, OTC 2007 promises to continue expanding and improving as the world’s premier event for the drilling, exploration, production and environmental protection of offshore resources. Managing partner SPE and 18 other sponsoring, endorsing and supporting organizations are planning for the largest attendance in over 20 years. This year’s theme is "Transforming the Industry," reflecting the effect that advances in offshore technology and the business climate have on the offshore industry. The conference will boast increased exhibit space, innovative presentations and fresh programming to accompany the more tried and true aspects of the annual line-up.

Arnis Judzis, chairman of the OTC Board of Directors, said, "OTC brings together the best minds in the world to share technologies to solve offshore challenges and increase supplies of oil and gas. OTC is a truly remarkable cooperative effort that transcends competitive pressures and geopolitical boundaries worldwide to share knowledge for the benefit of the industry."

Foremost among the 2007 improvements is expansion of the exhibit space into Reliant Stadium. There will also be a new "Morning Reports" breakfast series, in addition to the traditional Industry Breakfasts, in which industry leaders will discuss current projects. For the first time, OTC will sponsor an Energy Education Institute that encourages Houston area teachers to teach more science, math and energy-related topics in the classroom.

OTC quick facts. In the tradition of the last four decades, OTC will be held in Houston, April 30 – May 3, in the Reliant Park complex. Last year’s attendance rose to just shy of 60,000, and at least 5,000 more attendees are expected to participate this year, representing over 110 countries worldwide.

In addition to the established exhibition space in Reliant Center and the outdoor stalls, OTC will add a climate-controlled Pavilion (as done last year), as well as space in Reliant Stadium. Total exhibition square footage will increase 46,000 sq ft to a total of 515,000 sq ft. Upwards of 2,300 companies representing over 30 countries are likely to exhibit, including 185 new exhibitors. Following a slight decrease in technical presentations in 2006, this year’s program is expected to rise again to above 300.

In response to the ever-increasing need for more exhibit space, OTC will expand into Reliant Stadium.

Registration. For the second year, attendees can register for the conference online, all the way through the last day of events. After registering online, an attendee will receive a bar code to print out. By bringing this bar code on-site for scanning at registration stations throughout Reliant Complex, the attendee can receive his or her badge more promptly than waiting in line at the conference. In addition, there will be more onsite registration areas, including a main Registration Pavilion.

International visitors who pre-register online will, for the first time, be able to pick up their badges at a special OTC registration desk set up in Terminal E of Bush Intercontinental Airport. The desk will be open from 12:00 p.m. Friday, April 27, through 12:00 p.m. Monday, April 30.

Reliant Stadium. Last year OTC introduced two enclosed, climate-controlled Pavilions in front of Reliant Center as a solution to the ever-increasing need for more exhibit space. Although some exhibitors in these Pavilions were displeased with what they termed low traffic, one Pavilion will return in 2007, in addition to newly available floor space in Reliant Stadium. Combined, the two venues will add 46,000 sq ft of exhibit space.

To encourage attendees to visit the new areas, both will open at 7:30 a.m. each morning, before the outdoor and Reliant Center exhibitions open at 9:00 a.m. The Pavilion will serve complimentary coffee each morning, and the Stadium will have a free ice cream social each afternoon at 3:00 p.m. A covered walkway will connect the Stadium to Reliant Center, and OTC will provide more shuttles from the parking areas to stop at all exhibition areas.

Judzis pointed out that, "With an exhibit space the size of 13 football fields, OTC ranks among the largest trade shows in the US. To visit all 2,300-plus exhibitors, you could only spend 57 seconds at each one."A floor plan of the Reliant Stadium exhibition space is available at http://www.otcnet.org/2007/files/exhibitors/07ReliantStadiumInitialFloorPlanNov06.pdf.

Awards Luncheon. Marcos Assayag of Petrobras will receive the 2007 OTC Distinguished Achievement Award for Individuals during the Awards Luncheon on Tuesday, May 1. Additionally, Anadarko Petroleum Corporation, Helix Energy Solutions and Enterprise Product Partners will receive the Distinguished Achievement Award for Organizations. The keynote address will be delivered by Chad Deaton, chairman and CEO of Baker Hughes.

Marcos Assayag, OTC Distinguished Achievement Award recipient.

Assayag will be recognized for his efforts in fostering new technology for deepwater production. He is the basic design general manager of the Petrobras R&D Center. In this role he led the PROCAP programs and developed technology allowing the company to produce in water 6,560 ft deep. This laid the foundation for production in 9,840 ft of water.

Anadarko Petroleum, Helix Energy Solutions and
Enterprise Product Partners will together receive the award for Companies, Organizations and Institutions for their combined development of the Marco Polo Project. This project, featuring tension leg platform technology, is the deepest application in the world and has led to production
in 4,300 ft of water.

Further, OTC will award three Heritage Awards to mark the 60th anniversary of offshore E&P activity. Regarding the 60-year landmark, Judzis reflected, "In 1947, drilling in 15 feet of water was a challenge, and drilling out of sight of land was a major technical milestone. Engineers of that time could not conceive of drilling in water depths much over 50 feet. But today, advanced technology has pushed that limit to water depths of 10,000 feet." Jon Gjebdo, founder of Hitec Inc.; John Huff, chairman of Oceaneering International; and Owen Kratz, chairman of Helix Energy Solutions Group, will receive the Heritage awards for their service and contributions to the development of offshore resources. The only other time that the award has been given was 10 years ago.

John Gjebedo, John Huff and Owen Kratz will receive Heritage Awards.

Topical Luncheons. A variety of topical luncheons is slated this year, offering attendees the chance to hear leading experts discuss such issues as management, implementation, research and technology. Space is limited, so it is recommended that participants buy tickets with advanced registration. The five luncheons on Monday, April 30, include "A Close Peek Into the Reality of Peak Natural Gas and Oil," "Meeting the Quest for Dynamic Offshore Drilling in the Energy Frontier," "An Update on Nova Scotia's Petroleum Prospects," "Needing the Right Data: Exploration and Well Testing�A Global Market Perspective," and "Operator's Perspective Luncheon Series" with Lord Peter Truscott, Parliamentary Under Secretary of State for Energy in the UK. (Also see his comments on page E-185�E-186 of this issue.)

There will again be five luncheons on Wednesday, May 2, including "Confessions of an Offshore Technology Geek: Lessons Learned the Hard Way," "Technical Staffing: Supply and Demand Challenges," "Booming Offshore Oil and Gas Construction Business of China Fosters International Cooperation," "A Technical Challenge for the Greater Gorgon Project: CO 2 Geosequestration," and "Operator's Perspective Luncheon Series" with the director of finance at ONGC, Shri R.S. Sharma.

On Thursday, May 3, the number of luncheons will stay at three, including "Energy and Geopolitics," "A Thousand Barrels a Second" and "The Sakhalin II Phase 2 Project."

Industry Breakfasts and Morning Reports. OTC will join forces with the US Department of Commerce to present breakfast sessions covering business issues in developing regions of the world. On Tuesday, May 1, Sri Lankan officials from the Ministry of Petroleum and Board of Investment will discuss the country's upcoming first licensing round in "Sri Lanka�Exploring New Offshore Oil and Gas Opportunities." They will provide an overview of the country's offshore drilling history, as well as the petroleum potential off the west coast.

Senior officials from countries in the Gulf of Guinea, along with leaders in US energy companies, will present the "Gulf of Guinea" on Wednesday, May 2. They will cover oil and gas prospects in the area, plus commercial and new investment opportunities.

Finally, on Thursday, May 3, the topic, "The Arctic of Canada�Canada's Evolving Offshore Oil and Gas Industries" will be discussed by federal officials from Canada's North Oil and Gas Directorate and National Energy Board, and representatives from the Northwest Territories' Ministry of Industry, Tourism and Investment. Speakers will cover management and policy roles in the development of the area, as well as commercial and investment opportunities. In addition, a US private sector firm will offer its perspective on exploration, development and the environment in Arctic Canada.

New for 2007 is a series called "Morning Reports," to be held Tuesday through Thursday mornings. Industry leaders will share updates on current offshore projects as well as their insights on the most relevant projects in the offshore industry.

General Sessions. Once again, two General Sessions will take place at the 2007 OTC. The first will occur Tuesday, May 1, from 2:00 to 4:30 p.m., covering "The Petroleum Scene: New Realities Ahead?" Panelists will discuss the role of petroleum as the world's major source of energy throughout the 21st century, focusing on the challenges of deliverability rather than availability. The session will also deal with realities ahead for the petroleum industry involving resources, investments, opportunities and constraints; the role of downstream in sustaining market stability; and environmental matters. Mohammed Barkindo, Acting Secretary General of OPEC, will serve as moderator, while Hasan Qabazard, director of the OPEC Research Division, will deliver the keynote address. Panelists will represent the Algerian Ministry of Energy and Mines, the International Energy Forum Secretariat, Libyan National Oil Company, Chevron Corporation, International Sustainable Energy Exchange and Petrometrica.

The second session, "NOC-IOC�Service Companies: Revisiting the Collaboration Model?" will take place Wednesday, May 2, from 2:00 to 4:30 p.m. This session will look at the growing imbalance of reserves between national and international oil companies in the face of increasing pressure to produce. Panelists will discuss changes needed in the present industry model as relates to collaboration between NOCs and IOCs while demand grows closer to exceeding supply. The session moderators will be Amy Jaffe of the Baker Institute and Claire Lawrie of Accenture. A panel representing BP, Total, Weatherford, Abu Dhabi Marine Operating Company, Sonangol, Baker Hughes, Shell and Petrobras will participate.

Next Wave program. Following its very successful debut in 2006, the Next Wave program will return this year with an expanded agenda. The program is designed for upstream professionals under age 35, or those interested in meeting them. A reception will be held from 6:00 p.m. to 7:30 p.m. on Wednesday, May 2, with a full schedule set for Thursday, May 3.

Thursday will open with a General Session from 9:00 a.m. to 11:30 a.m., featuring speakers Jeff Spath, President of Reservoir Management at Schlumberger, and Belinda Robinson, Chief Executive of the Australian Petroleum Production & Exploration Association. They will speak on relevant technology, policy issues and career paths in the upstream industry. Following that session, there will also be a Career Insight Panel led by Claire Farley of Randall & Dewey, Castlen Moore of Apache Corporation, Jon Glesinger of Norman Broadbent (also see his comments on page R-222 of this issue) and Eve Sprunt of Chevron. They will discuss what companies are looking for, advanced degrees, and technical vs. managerial career paths.

After a group lunch, the afternoon will offer Next Wave participants over 20 roundtable discussions from which to choose, lasting from 1:00 p.m. to 3:00 p.m. Each breakout is to be facilitated by industry experts and will allow attendees enhanced interaction and networking.

OTC Energy Education Institute. For the first time, OTC, together with the US National Energy Education Developement (NEED) Project, is hosting an Energy Education Institute on Thursday, May 3, from 8:00 a.m. to 3:00 p.m. The workshop is open to Houston-area teachers from all grade levels and geared toward getting more science, math and energy topics into the classroom. That same day, OTC will host a student tour and luncheon from 9:00 a.m. to 1:45 p.m. Both events highlight the increasing need for the industry to recruit and capture the interest of younger generations.

Technical program. Throughout the four days of OTC, over 300 papers will be presented during the Technical Sessions. A sample of the topics includes:

• New Pipeline Technology Developments and Applications: Lowering the Risk of Offshore Operation
• Advances in Offshore Wind Energy
• Energy Security: Perspectives on the New Dynamics
• Seeing the Deep Reservoir: Recent Discoveries and New Seismic Imaging Technologies
• CNG and Other LNG Alternatives
• FPSO: Design, Certification, Evolution and Operations
• Advances in Riser Technology
• Extended-Reach Drilling: Pushing Beyond the "Limits"
• Subsea Increased Oil Recovery: A Considerable Technological Challenge
• New Technology Frontiers: The Partnership Between Solution Providers and Oil Companies

A listing of the major technical session topics is in the table below. For a more detailed listing of individual papers in the technical program, please check the listings at http://www.otcnet.org/2007/technical/index.html.

TABLE 1. OTC 2007 technical sessions Click image for larger view.

Spotlight on New Technology Awards. Now in its fourth year, the program will recognize 13 technologies representing 11 companies. The companies include Aker Kvaerner; Baker Oil Tools; DYNAenergetic GmbH & Co. KG; FARO Technologies; Jet-Lube, Inc.; MODEC International, LLC; SBM Offshore; Secure Drilling; Versabar, Inc.; Vetco Gray and Weatherford.

Winners are selected on four criteria. First, the technology must be "new and innovative," i.e. less than two years old. Second, the item must have been proven through either full-scale application or successful prototype testing. Third, it must have broad interest and appeal for the industry. Finally, the technology must make a significant impact, providing sizeable benefits beyond existing technologies.

Aker Kvaerner received two awards, including Aker Kvaerner Subsea's SeaBooster and Aker Kvaerner Well Services' PowerTrac Cone Crusher Scale Mill Concept. The SeaBooster is a subsea process system for the injection of raw seawater. Designed with a single retrievable liquid pump module called the LiquidBooster, the system allows water to travel through the injection well into a subterranean reservoir for maintaining reservoir pressure as oil is extracted. The filter unit is self-cleaning with a hydraulic actuator, or a water purging system. A service umbilical connects the system to the host facility, and it can be either standalone at the seabed or incorporated into a production/injection subsea template.

AkerKvaerner Subsea�s SeaBooster.

Created to remove wellbore scale build-up, the PowerTrac Cone Crusher runs in conjunction with the PowerTrac Advance (PTA) wireline tractor. The design is based on a main body with four free-rotating cones, each with a unique cutting pattern, as well as a special rotation adapter, mill gear and shock absorber for weight-on-bit control. The PTA tractor wheel can be employed as an anchoring device in both vertical and horizontal sections of the well, as well as a forward thrust device in the horizontal sections. After years of searching for a solution to wellbore scale build-up, this intervention tool proves especially valuable in extended-reach and horizontal wells and can be a cost-effective option instead of coiled tubing.

Baker Oil Tools also picked up two Spotlight awards, for the second consecutive year. The Diamond FRAQ Polymer-Free High-Performance Fracturing Fluid is the first VES fluid with polymeric fracturing fluid performance properties, as well as superior formation and proppant pack cleanup ability. The VES fluid use is extended to 300°F, due to its micelle stabilizers, and viscosity enhancers reduce the VES loading and total system cost. In an effort to reduce fluid treatment volume and improve fracture geometry, fluid loss control agents minimize fluid leak-off to at least 2,000 md and 250°F.

Baker Oil Tool�s Diamond FRAQ is polymer-free and high-performance.

Through nano particle technology, Diamond FRAQ can associate VES micelles together, stabilize VES micelle structures to 300°F, and form a pseudo-filtercake composed of highly viscous VES fluid and nano particles. Further, internal breakers function over a wide range of mix-water salinity and temperatures to follow the VES fluids, thus assuring viscosity reductions, and eliminate reliance on reservoir hydrocarbons. They also work synergistically with high-temperature stabilizers, viscosity enhancers and fluid loss control agents.

The linEXX Solid Expandable Monobore Liner Extension System was developed to create an alternative to conventional casing designs for deeper, more productive wells. Not only does the linEXX system facilitate deeper wells with larger holes at the reservoir, but it also lets operators isolate zones containing reactive shales, subsalt environments and low-fracture gradient formations.

The linEXX system is an alternative to conventional casing designs for deeper wells.

The system allows top-down expansion through the RC9 series recess casing shoe, which enables the liner to be anchored on the bottom of the parent casing and expanded into the shoe without ID size restriction. A FORMlock expandable liner hanger/packer then locates in the RC9 casing shoe and ties the linEXX liner to the previous casing strip. From that point, the linEXX solid expandable casing runs below the FORMlock hanger, while the RNX retrievable guide shoe guides the liner into the hole. In the case of downhole blockage, the top-down expansion system prevents loss of hole.

DYNAenergetics was recognized for its No Debris Gun System (NDG). While traditional perforating jobs leave unwanted debris in the well which can add up to tons of steel chips that damage sensitive downhole and surface equipment, this new technology leaves virtually no debris in the well. With an internal sliding sleeve activated by gas pressure from the detonation, the shot holes in the gun are closed after the shot. The pressure not only shifts the slider laterally, but also expands the sleeve and forces it into its new position, thereby making it impossible for the shot holes to reopen. Tests prove that no debris can exit the gun during or after the shot.

DYNAenergetic�s NDG leaves no debris in the well.

The gun is not pressure-tight, so fluid and gas can still circulate between the interior of the gun and the wellbore. It can be used with any standard-shaped charge, independent of size, geometry or explosive type. Throughout testing, QC shots with shaped charges showed little or no penetration loss.

FARO Technologies received an award for its Track Arm. Combining technology from two best-selling Coordinate Measure Machines�the FaroArm and the FARO Laser Tracker�the Track Arm is a portable computerized measurement device used to measure geometric features and directly import them into digital form.

While the FaroArm uses optical encoders, advanced error coding and temperature compensation technology to record 3D points on items up to 12 ft, the FARO Laser Tracker uses laser targets and Xtreme ADM technology to measure items as far as 230 ft. TrackArm allows users to effortlessly move between the tracker and the arm by using a laser target mounted on the FaroArm. The user is then able to measure in large volumes with the FARO Laser Tracker, then cross over to the FaroArm to digitize areas hidden from the Tracker's line-of-sight. A shared software platform called CAM2 Measure collects all the data in a single job file.

Jet-Lube, Inc., created the award-winning SEAL-GUARD ECF and NCS-30 ECF in response to stringent North Sea environmental guidelines for offshore chemicals. The OSPAR Commission's Harmonized Offshore Chemical Notification Format (HOCNF) required that pipe compounds be biodegradable, bio-accumulation-potential free and non-toxic, thus setting the most stringent thread compound standards to date. Jet-Lube completely reformulated its pipe compounds to meet environmental requirements while maintaining its performance standards, which resulted in SEAL-GUARD ECF for premium casing and tubing connections and NCS-30 ECF for drillstring connections.

Both ECF compounds are completely non-metallic, while still able to provide supreme protection against seizing and galling. They also are temperature-rated for applications from �65°F to 500°F, and their non-conductive formulas are ideal for high-pH mud applications (9�10%). SEAL-GUARD ECF has been specifically formulated for use on premium connections with its frictional properties similar to API modified. NCS-30 ECF, on the other hand, was formulated for use on rotary shouldered connections, high-torque and high-chrome or nickel alloys.

MODEC International, LLC was cited for its MOSES Self Stable Integrated Platform (SSIP) Tension Leg Platform (TLP). The system's inherent stability allows quayside integration and commissioning of the topsides to the hull structure, as well as wet towing to the installation site. It eliminates the need for costly temporary buoyancy or craned installation assistance. The MOSES SSIP TLP can support a range of drilling and workover rigs as well, plus a large number of Top Tension Risers (TTRs) and flowline risers. It can be used with wet and/or dry trees in all environments.

The MOSES SSIP TLP.

The hull is comprised of a central base structure and four rectangular Tendon Support Structures (TSS) located deep below the surface to provide a great amount of buoyancy. There are also four rectangular vertical columns further outboard, and they are smaller than conventional TLP columns. Top connectors on a porch arrangement support eight tendons at the end of the TSS, with each tendon connected at the sea floor to bottom connectors.

Following a three-year development program, SBM Offshore received a Spotlight award for its 20�in. LNG Toroidal Swivel, which makes LNG transfer possible with weathervaning offshore LNG terminals. The swivel has a central opening, an essential component of any marine transportation system in which LNG must be transferred through a weathervaning system. The design can be configured to allow the passage of multiple LNG streams up to 20 in. and a 16-in. vapor return. Composite material bearings and the use of thermal rods inside the toroid protect the swivel sealing function from thermal deformations when cooled to its 165°C operating temperature and 10.5-bar pressure.

SBM Offshore�s LNG Toroidal Swivel makes LNG transfer possible with weathervaning offshore terminals.

The swivel has undergone extensive tests simulating over five years of continuous service and is in the process of receiving an approval in principle from ABS.

Secure Drilling picked up an award for its development of the Secure Drilling System. The closed-loop system collects and analyzes drilling data and micro-fluxes to effectively manage wellbore pressure. Losses are identified at very low levels, and the driller is notified while there potentially is time to exert control and avoid total losses. Designed to incorporate existing drilling and pressure control equipment, the system requires minimal upgrades or equipment additions.

The Secure Drilling System circulation flow path, with the additional equipment needed to run automated kick detection and control. Note: (1) Rotating Control Device, (2) Secure Drilling Manifold, (3) Secure Drilling Control System.

The Secure Drilling System allows the driller to evaluate, on-screen, real-time changes in, and deviations from, expected behavior in flow and pressures. The driller can then use the technology to interpret the changes and alter the situation through computer-controlled equipment that makes adjustments in the flow regime, in response to changes in downhole or surface conditions. Specifically, the system allows the well to be drilling overbalanced, near-balanced or underbalanced, thus enabling each section of the well to be optimized, based on specific downhole conditions.

The flexible, rugged system requires minimum training to improve drilling efficiency and safety, and reduces well cost on the most basic to the most complex HPHT applications. It identifies and manages kicks and losses, reduces total influx volume, monitors surge/swab pressure effect, and discriminates between kick and temperature effects in HPHT applications. In addition, the system identifies ballooning or breathing phenomena, confirms statistically UB conditions during connections, and accurately interprets shoe leak-off and casing tests.

Versabar, Inc., was recognized for its Eugene Island 330C and 330B Topsides Raising Design. Both eight-leg platforms experienced extensive damage from Hurricane Rita in 2005, but with 32 synchronously controlled, 260-ton hydraulic cylinders, each was recently raised 14 ft. to prevent damage from future storms.

Versabar�s Topsides Raising Design will prevent future damage like that done by Hurricane Rita in 2005.

The cylinders pin into lower pad-eyes welded to the existing legs and upper pad-eyes that are integral to the split extension sleeve. The extension sleeves, with a 40½-in. diameter and 1½-in. wall, capture the legs during the final leg cuts, and use rub rails to limit lateral movement during raising to ¼-in. The legs are cut between two bushings installed near the top of the legs. Prior to the lift, the top of the extension sleeve is welded to the upper bushing, and after rising, the bottom of the extension sleeve is welded to the lower bushing. Pins with a 12-in. diameter and 1¾-in. wall are inserted into the leg to provide a storm-safe condition at all times, except when removed to raise the platform.

Vetco Gray won for the MR-6H SE Marine Riser Connection. The system brings drastic improvements in both safety and efficiency to the current industry offering of riser systems. Its design combines field-proven technology of the H-4 subsea wellhead connector and the dog-style marine riser (MR-). Hydraulic units on the spider engage a cam ring on the box which actuates six dogs into the profile in the pin. The pin is lowered into the box and guided into place with an internal guiding pin. Then the spider does the rest, automatically creating a full, pre-loaded connection with an efficient and effective load path.

Because the MR-6H connection is fully automated, people are removed from potentially dangerous situations. It takes under a minute to make or break the connection, allowing a string of MR-6H to run in half the time of a flanged riser system.

Weatherford's OverDrive System received an award for providing a safer, more efficient alternative to conventional casing installation. The system is made up of several distinct components, including the TorkDrive tool. This is mounted directly to the rig's top drive for making-up and breaking-out casing.

The OverDrive System is an alternative to conventional casing installation.

In addition to faster makeup and breakout with accurate thread compensation, the system also provides the ability to switch between fill-up and circulating functions without repositioning the tool, high-volume circulation and fluid recovery, independent torque measurements, and reduced risk of operator errors with multiple safety interlocks.

Beyond these improvements on conventional methods, the system allows advantages like rotating and pushing down the casing while running to help prevent differential sticking, achieving high-speed string rotation with the topdrive when drilling/reaming-with-casing and removing even more personnel from hazardous rig floor operations.

On a recent Wytch Farm extended reach project, 800 m of 13 3/8-in. casing were successfully installed in the vertical section of the well. Subsequent work on this well will include installation of 5 km of 9 5/8-in. casing in the horizontal section. Significant planning will be necessary, due to the 40,000 lb of push-down weight required to run the casing horizontally. Specifically designed for this type of application, the OverDrive System will make operations safer and more efficient, compared to traditional methods requiring extreme modifications to existing technologies. Planning has already commenced for the next well, which will require 60,000 lb of push-down weight.

Winning technologies will be honored at the Spotlight on New Technology presentation on Monday, April 30, at 4:00 p.m. inside the Reliant Center.