Well delivery process management for VietGazprom - concept to close out

Achieving both time and cost savings

Client: VietGazprom
Asset type: Oil field
Location: Vietnam

< 6 % NPT

50 days TOTAL time saving over both Wells

$40m TOTAL cost saving over both Wells

Overview

VietGazprom is a joint operating company. Gazprom is a global energy company focused on geological exploration, production, transportation, storage, processing and sales of gas, gas condensate and oil, sales of gas as a vehicle fuel, as well as generation and marketing of heat and electric power. Gazprom holds the world's largest natural gas reserves.

Gazprom and PetroVietnam signed a long-term Public Joint Stock Company (PJSC) agreement for development of Blocks 129, 130, 131 and 132 offshore Vietnam, with JOC Vietgazprom as Operator. LR was appointed as the Project Management contractor to deliver these wells.

Operational challenge for the client

At the time of the project start up, the client had no well delivery process or procedure in place. The client required the development of a bespoke set of procedures and policies that would meet their requirements and its obligations with the Vietnamese governing body legislations.

How Lloyd's Register helped

We developed a bespoke well delivery process for the drilling of two deepwater (>1,500m) wells, that included:

  • Risk assessment
  • Hazard re-assessment for deepwater operations
  • Offset well analysis
  • Conceptual well design
  • Drilling and Well Testing Basis of Design
  • Rig selection and negotiation
  • Regulatory documentation preparation
  • Rig acceptance and auditing

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By its very nature, this explorative project had among the highest operational risks due to location, supply chain and logistics. The campaign had many firsts for the region, including:

  • The first deepwater campaign undertaken by Vietnam Oil and Gas Group (Petrovietnam) and PJSC (Gazprom)
  • The first time the Wellhead was allowed to be left in place in Vietnam
  • The first time a 6th Generation dual derrick rig had worked in Vietnam
  • The first time a deepwater well had targeting basement in the region
  • The first deepest water depth well
  • The first gas discovery in deepwater

Our single team approach helped define clear responsibilities and accountabilities, guaranteed 24x7 business continuity, improved quality and enabled faster decision making and processing. Communication was key across the partners and contractors, and by using our robust and comprehensive project management processes, we were able to provide our client with the necessary support to effectively deliver their project ahead of schedule and under budget.

Our rig acceptance process and testing of the main rig systems was reflected in very low rig downtime. A total of only three hours' non-productive time of the drilling contractor was recorded in 68 days of operations on the first well.

Effective planning of the dual derrick rig activity enabled several operations to be performed offline, thereby minimising operational time, as well as the auxiliary rotary table being consistently used throughout the well for support of primary operations.

Our quality assurance strategy was reflected in minor non-compliances and limited downtime, and our QAQC strategy with third party equipment inspection, witnessing and verification was reflected in the reduced downtime.

Results

  • We assisted our client in the drilling of two deepwater (>1,500m) wells off the coast of Vietnam, which were the first deepwater wells drilled by this consortium of partners. Under one sole team, both wells were safely and successfully drilled, evaluated and abandoned under budget and ahead of schedule.
  • All operations were conducted with zero incidents, zero accidents, and zero environmental issues.
  • Only three hours' non-productive time of the drilling rig recorded in 68 days of operations on the first well
  • There was < 6 % NPT over the whole campaign duration with no delays over logistics, materials or personnel.
  • Our project management process delivered a high quality performance:
    • TOTAL time saving over both Wells : 49.83 days
    • TOTAL cost saving over both Wells : $38,924,454

Benefits

  • Rig performance assured
  • No delays over logistics/materials/personnel
  • Compliance with legislation and regulations
  • Constant optimisation of time and costs
  • Cost savings achieved at each phase

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Client testimonial

JOC (Vietgazprom) is grateful for the excellent professional work performed by a tight-knit team of LR experienced specialists. Involvement of the LR team allowed for preparation and detailed design of the wells in a timely manner as well as reduce time and cost for construction of two deepwater wildcat wells.

With the assistance of the LR team, JOC (Vietgazprom) brought to a higher level the procedures of contracts signing, risk assessment, HSSE, well engineering.

The experience of working together with the skilled team of LR will undoubtedly allow JOC (Vietgazprom) to systematise and develop on its basis a well delivery process with all required procedures for follow-up projects.

There is no doubt that for subsequent projects JOC (Vietgazprom) will consider a possibility of engaging the LR team for technical support in the very first instance.

Director of VietGazProm

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