Integrated Model-Based Approach to Drilling Project Management

Abstract

Drilling operations account for over 80% of the total cost of a well and this cost will continue to increase rapidly as the petroleum industry moves deeper offshore to explore additional reserves. In many regions around the world especially the Gulf of Mexico, Gulf of Guinea and North Sea (i.e. The Golden Triangle), daily operational cost of an offshore rig range from $1 million to $1.5 million. This high cost, as well as increasing concern to exceed stakeholders expectation, has underlined the necessity for sound project management to ensure that wells are drilled at lowest possible costs since the major objective in all drilling operations is to safely drill useable holes at minimized cost. Most often, only technical aspects of rig operations are thought to influence the number of days spent on location. In a more practical sense, however, both technical and non-technical issues control the success of rig operations; hence the need for a holistic approach for effective project delivery.In this paper, a comprehensive and integrated model-based approach is proposed for managing drilling projects. This technique is based on project management body of knowledge and it emphasizes both technical and non-technical factors that influence successful drilling operations. Using this method, a dynamic well plan can be developed which can always be updated with current information obtained as drilling progresses. This scheme facilitates real-time documentation of lessons learnt which will aid planning and implementation of future drilling programs. Furthermore, project performance can easily be tracked on the basis of triple constraints of time; scope and approved budget since high-quality drilling management practice involve effective monitoring and control of these constraints. Collaborative engagement of drilling contractor, operating and service company representatives throughout the project phases is indispensable for full implementation of the proposed system. This scheme ensures development of detailed and dynamic authorization for expenditure (AFE) that accounts for non-technical project constraints. This paper is most applicable in management and systems technical category.

Revolutionizing Property Management: e-Perumahan Web-Based Housing Management System

“…called tables/entities, Each data can stand alone or be related to one another. The commonly used database is MySQL [4]. Several aspects need to be further developed in the future.…”

Data-Driven Joint Chance-Constrained Optimization for the Workover Rig Scheduling Problem

“…The system designs the well-pad layout, determines the production facilities, allocates wells to rigs considering the fleet availability, rig locations, and other related attributes, and returns the rig schedule as one of its outputs. Omosebi et al (2014) proposed a methodology based on project management to correctly plan drilling projects and rigs schedules. However, the authors did not mention the employment of optimization methods.…”