Successful Utilization of Performance Fluids Management in Gulf of Mexico Region 6 Assures Environmental Compliance

Abstract

Meeting the new Gulf of Mexico NPDES environmental regulations (maximum 6.9% oil-on-cuttings), while simultaneously improving drilling performance has been achieved through the implementation of a Performance Fluids Management (PFM) process. This paper describes the creation and application of a fit-for-purpose GOM PFM process, which is a management process that integrates all fluids and waste management-related activities. This paper will show how the new NPDES (National Pollution Discharge Elimination System) regulation (maximum 6.9% oil on cuttings) was met without impacting drilling operations, while at the same time reducing costs 8 % ($3.5 million) in 2001. Key components of the PFM process include implementation of a common format for fluids management programs; establishing and defining key performance indicators; end-of-well recaps; a weekly PFM report capturing target and stretch performance measures; PFM audit process; skills assessment tools for fluids and PFM engineers; and a model to predict accurate PFM cost/volumes generated. In order to achieve the objective of reducing the oil-on- cuttings to meet regulatory requirements, the PFM seven-step process was utilized. This process includes expectations, analysis, modeling, setting goals, planning, execution and reviews. The reduction of oil-on-cuttings (OOC) from 14% to less than 6.9% in the GOM was a very important objective to improve the quality of the discharges to reduce environmental impact. It was very important that drilling performance should be maintained or improved. The PFM process integrates fluids and waste management. This paper discusses the application of the PFM process. The authors will present figures showing the following improvements:Reduction in days per 10,000 ftReduction in oil-on-cuttings (OOC)Reduction in downhole mud lossesReduction in actual cost compared to AFEIncreased mud recovered The PFM process has been implemented in Colombia, Bolivia, Argentina and Trinidad, where it delivered similar savings. The process is applicable to wells in excess of $7 million total cost. Introduction PFM is BP's worldwide management system for integrating drilling fluids, completion fluids, solids control, waste management and waste disposal. PFM is not a bundling of services. The purpose of PFM is to provide a culture of continuous improvement. This system was developed in Colombia in 1997 as a response to rising drilling fluids and waste management costs. The PFM system implemented in the area focused on reducing non-productive time and the amount of waste generated onsite. Since its implementation, the PFM system has reduced the total fluids related costs by $750,000 per well in Colombia and reduced waste volumes by 41%.1 Successful implementation of the process required cooperation and teamwork from both BP and the fluid service provider. PFM requires changes in work habits and culture, which do not occur over night. Once the system is in place and improvement begins the change to PFM is simplified. There are many reasons to justify implementing PFM. These include improved drilling performance, QA/QC in fluids / waste management and environmental impact, delivery of high-value from drilling fluids and waste management contractors; the ability to track and measure performance, and the implementation of a common format for fluids and waste management programs. PFM Implementation While teamwork between the operator and service supplier is crucial, at the end of the day PFM should be a process that resides within the service company. Nevertheless, it requires support and understanding from the operator for its implementation.