Rig Selection Process:
Added value to a project
2 DML
Oct 12th, 2004
Outline
Rig Selection Today
Objective
Drilling Rig
Rig Selection Process
Applications
Conclusions
Next Steps
Example
3 DML
Oct 12th, 2004
Rig Selection Today
Well Engineers do not have rig sizing expertise.
No guidelines or calculators available.
Rig sizing and selection not detailed in training process.
4 DML
Oct 12th, 2004
Objective
To develop a procedure to select the rig
that provides the best value to a project
Do not select a rig for the well.
Select a rig for the Project!
5 DML
Oct 12th, 2004
Drilling Rig
Mast Capacity – Handle CSG & DP Mast or Derrick
Substructure Capacity - Load-supporting
Drawworks - Lifting capabilities
Mud pumps – Hydraulic performance
Rotary performance - TopDrive or Rotary
Table
Drill String - Specifications
Solids Control Equipment & Tanks
Well Control Equipment
Moving capabilities
QHSE
Rotary performance & TDS
Drawworks Mud Pumps
Substructure Solids Control Equip. & Tanks
Drill String Specifications
Moving Capabilities
Well Control Equipment
6 DML
Oct 12th, 2004
Rig Selection Process
Perform a final
RIG SELECTION cost-benefits
Identifyto
analysis which
select
SET arethe
thebest
more
important
equipment
PRIORITIES Assess theof
components
COMPONENTS components
the rigs for of
thethe
EVALUATION competing
project rigs
Determine the
from
idealthe
rigtechnical
to drill a
EQUIPMENT SIZING well –side
Technical
capabilities
7 DML
Oct 12th, 2004
Rig Selection Process
• FIRST LEVEL
After First Level:
(Well (Rig
proposal) requirements)
Rig requirements
TO SIZE THE EQUIPMENT: RIG SIZING
• User friendly
defined
SPREADSHEET
• Designed for different types of wells
• Fast results
• Do not need rig sizing experts
8 DML
Oct 12th, 2004
Rig Selection Process
• SECOND LEVEL
Each rig component of
Ideal rig is the competing rigs is
After Second Level:
defined assessed against the
calculated requirements
NO GO
Which rigs are
Need improvement
Y/N
0%
1
capable of doing the
Just complies 30%
OK 70% x
Fit for purpose 100%
Competing rigs
well construction
NO GO Y/N
NO GO Y/N
Need improvement 0%
Need improvement 0%
Just complies 30%
2
Just complies 30%
OK 70% OK 70%
Fit for purpose 100% x
Fit for purpose 100%
NO GO Y/N N
Need improvement 0%
3 Just complies
OK
30%
70%
Fit for purpose 100%
9 DML
Oct 12th, 2004
Rig Selection Process
• THIRD LEVEL
RIG COMPONENT
impact
TIME SAFETY
ENVIRONMEN QUALIT
T Y
TO MEASURE THE IMPACT ON THE PROJECT: NUMERIC
Function of: VALUE
• Geographyical area
• Anticipated level of impact
• Component being assessed
• Offset analysis
10 DML
Oct 12th, 2004
Rig Selection Process
FOUR ELEMENTS
Environment
Quality
Safety
Time
0 0 0 0
1 1 1 1
2 2 2 2
3 3 3 3
A. Mast or Derrick 2101 4
B. Substructure
C. Drawworks
COMPONENT OF A RIG
D. Mud pumps performance
E. Rotary performance/TDS
F. Drill String Specifications
G. Solids control equipment and tanks
H. Well Control equipment
I. Moving capabilities
J. QHSE
11 DML
Oct 12th, 2004
Rig Selection Process
SECOND THIRD LEVEL
LEVEL
COMPONENTS RATE
(well requirements)
KEY COMPONENTS
(project needs)
After Third Level:
FOUR ELEMENTS
Environment
NO GO Y/N Y
Quality
Safety
Time
Acceptable 0%
IMPACT LEVEL
0 0 0 0
OK 30% 1 1 1 1
2 2 2 2
Key components are
Preferable 70% x 3 3 3 3
Fit for purpose 100% D. Mud pumps performance 2 1 2 3 8
identified
RIG EFFICIENCY:
A numeric value that indicates
which is the best technical
option for the project
12 DML
Oct 12th, 2004
Rig Selection Process
• FOURTH LEVEL
ADJUSTED DAYRATE
Function of:
• Estimated time per well
• Number of wells
• Rig efficiency
• Costs:
– Rig start up
– Modifications or repairs
– Dayrate
– Moving rate and costs
13 DML
Oct 12th, 2004
Rig Selection Process
Equipme Efficiency Time Adjusted Adjusted dayrate
nt time
Rig 1 E1 T (T x F1) ADR1
Rig 2 E2 T (T x F2) ADR2
After Fourth Level:costs,
Consider: Dayrate, Moving rate &
Rig startup, Modifications &
repairs, Number of wells
F1 & F2 - Function (Efficiency,…):
DTM-10 Economical
86% 11.5 d analysis
Measure 13.1
of the –
riskdrelated 11,966 usd
to increase
in time and problems with safety,
DTM-14
determination
74% 11.5 d environment
ofdaand quality13,288 usd
14.6
Modification
single criteria to
:
DTM-10 select
86% the
11.5equipment
d 13.1 d 11,966 usd
DTM-14 82% 11.5 d 13.6 d 12,505 usd
14 DML
Oct 12th, 2004
Rig Selection Process
Technical requirements Rig availability
BEST AVAILABLE
OPTION TO GIVE
VALUE TO A PROJECT
Costs Project needs
15 DML
Oct 12th, 2004
Applications
Rig selection procedure for bidding processes.
Sizing spreadsheet to determine rig requirements to drill a particular well design.
Training material and guidelines for well engineers.
Auditing for ongoing projects.
16 DML
Oct 12th, 2004
Conclusions
The rig selection process selects the best overall candidate based on rig
availability, technical requirements, project needs and costs.
The process includes a rig sizing methodology, spreadsheet based.
The process includes an evaluation procedure that rates different rigs using the
same criteria.
The final rig comparison is cost based.
17 DML
Oct 12th, 2004
Conclusions
The rig selection process is a tool for engineers of different levels – the whole
process is spreadsheet based.
GFE paper includes data gathering flowcharts and detailed tendering information
to be used as guidelines.
There is no a selection process available today within IPM – this is a first formal
approach and should be considered as the first step in an IPM rig selection culture.
18 DML
Oct 12th, 2004
Next Steps
Review the phylosophy behind the rig efficiency calculation: How risk and
decision analysis fits into the process.
Produce a proffesional software for rig sizing – Part of drilling office
applications.
Reinforce rig sizing and selection in the training process.
IPM Rig Selection/Sizing Standard?.
Increase IPM-Rig Management influence at project level.
Questions?
