Exploration Drilling – Tackling Cost Overruns Amid Unpredictable Geological Conditions (Day 2)

Dear Readers,

Introduction

Exploration drilling is a critical phase in oil and gas exploration, where operators drill wells to evaluate the subsurface for hydrocarbon potential. In Nigeria, deepwater exploration, such as in the Preowei field, often faces unpredictable geological conditions. These uncertainties can lead to significant cost overruns and operational challenges, impacting project economics and timelines. Through innovative drilling technologies and robust project controls, companies like TotalEnergies are working to mitigate these risks and optimize drilling outcomes.

?? Key Project Updates

• ? Estimated Investment: Exploration drilling projects in deepwater regions can cost between $100 million to over $600 million, depending on geological complexity and well depth.
• ? Cost Overruns: Unexpected geological conditions, including abnormal pressure zones and formation heterogeneity, have driven project costs upward.
• ? Advanced Drilling Technologies: Implementation of technologies like directional drilling and managed pressure drilling is helping to reduce operational risks.
• ? Regulatory & Compliance Factors: Strict environmental and safety regulations also influence drilling operations, affecting project timelines and costs.

?? Advanced Exploration Technologies & Their Impact

The Preowei field project leverages cutting-edge drilling technologies to counteract unpredictable subsurface conditions:

• Directional Drilling & Geosteering: Enables precise wellbore placement and real-time adjustments to navigate complex formations.
• Managed Pressure Drilling (MPD): Helps maintain optimal drilling pressures, reducing the risk of kicks and blowouts.
• Real-Time Data Analytics: Continuous monitoring of drilling parameters aids in early detection of anomalies.
• Advanced Drilling Fluids: Customized fluids are used to stabilize the wellbore and manage lost circulation in challenging formations.

?? Work Breakdown Structure (WBS) & Status

The exploration drilling process at the Preowei field is structured into five key phases:

1. Survey Planning & Well Design (2022–2023) ? Completed

• Detailed geological assessments, well design, and risk analysis were finalized.

2. Rig Mobilization & Setup (2023–2024) ?? Ongoing

• Mobilization of drilling rigs and setup of support infrastructure are currently underway.

3. Drilling Operations (2024–2025) ?? In Progress

• Active drilling operations are being conducted, with real-time monitoring to manage unexpected conditions.

4. Well Evaluation & Decision-Making (2025) ?? Upcoming

• Data from drilling operations will be analyzed to inform completion and appraisal decisions.

5. Post-Drilling Analysis (2026 & Beyond) ?? Future Phase

• Long-term evaluations and reservoir appraisal will guide future development strategies.

?? Major Contractors & Service Providers

The success of the Preowei field drilling project relies on a strong network of global and local partners, including:

• TotalEnergies: Leading the deepwater exploration and drilling efforts.
• Baker Hughes & Schlumberger: Providing advanced drilling technologies and real-time data analytics.
• Local Service Providers: Ensuring logistical support and technology transfer to bolster local capabilities.

These collaborations facilitate technology integration, improve operational efficiency, and help manage project costs effectively.

?? Challenges in Exploration Drilling

• Unexpected Geological Variations: Variations such as abnormal pressure zones and heterogeneous formations can lead to drilling complications and increased costs.
• Operational Hazards: Issues like lost circulation, wellbore instability, and drilling fluid losses add to project risks.
• Cost Overruns: The cumulative effect of unexpected conditions and operational delays results in significant budget escalations.
• Regulatory Pressures: Compliance with strict safety and environmental standards further complicates drilling operations.

?? Strategies for Effective Management

• Enhanced Subsurface Imaging: Utilize advanced seismic imaging and geological modeling to better predict subsurface conditions.
• Real-Time Drilling Monitoring: Implement robust monitoring systems that provide instant feedback to adjust drilling parameters as needed.
• Adoption of MPD & Directional Drilling: Leverage managed pressure drilling and geosteering techniques to navigate complex geological environments.
• Integrated Project Controls: Use integrated project management systems to track costs, schedule, and risk in real-time, ensuring proactive decision-making.

Projected Completion Date

• Rig Mobilization & Setup: Expected to conclude by Q4 2023.
• Active Drilling Operations: Targeted for Q2 2025.
• Well Evaluation & Decision-Making: Scheduled for Q3 2025.

References

• ?? Deepwater Exploration Insights – TotalEnergies
• ?? Advances in Directional Drilling – Baker Hughes
• ?? Managed Pressure Drilling Techniques – Schlumberger

Disclaimer

This newsletter is generated using AI and is based on publicly available data and industry insights. For real-time project updates, we encourage input from field professionals and experts.

Conclusion

The Preowei field drilling project by TotalEnergies highlights the challenges of managing cost overruns in deepwater exploration due to unpredictable geological conditions. By integrating advanced drilling technologies, real-time monitoring, and robust project controls, operators can effectively mitigate risks and optimize drilling performance. This case study serves as a benchmark for improving exploration efficiency in Nigeria’s complex deepwater environment.

?? What are your thoughts on managing cost overruns in exploration drilling? Let’s discuss!

Kind Regards,

Engr. George Nwogu,

COO, BIZVILLE PROJECT MANAGEMENT Limited

Senior Contract Project Manager

#ExplorationDrilling #DeepwaterOil #ProjectControls #NigeriaEnergy #GeorgeNWOGU #Nigeria #BIZVILLEPM ????

Motto: Humanity First, then Smart and Green. ??