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oil & gas

VietGazProm: Saving $40 million and 50 days.

Well-delivery process management, from concept to close out

Key facts

  • 01.

    Client

    VietGazProm

  • 02.

    Asset

    Oil field, Vietnam

  • 03.

    Results

    <6 % non-productive time 50 days total time saving $40m total cost saving

Client challenge

VietGazprom is a joint operating company. Gazprom is a global energy company, with the world's largest natural gas reserves. It focuses on geological exploration, production, transportation, storage and processing, together with sales of gas, gas condensate and oil, sales of gas as a vehicle fuel. It also generates and markets heat and electric power.

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. We were appointed as the project management contractor to deliver these wells. At the time of the project start up, our client had no well-delivery process or procedure in place.

How we helped

We developed a bespoke set of well-delivery procedures and policies to meet the joint venture’s requirements and obligations with the Vietnamese governing body legislations.

This work covered the drilling of two deepwater wells at depths greater than 1,500m.

Our support encompassed:

  •  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.

Well_delivery_process_management_-_723x100 

Insight

Our single team approach helped define clear responsibilities and accountabilities, guaranteed 24x7 business continuity, improved quality and enabled faster decision making and processing. Good 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 the 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. This minimised 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. Our solid QAQC strategy with third-party equipment inspection, witnessing and verification was reflected in the reduced downtime.

Industry firsts

This explorative project had a high degree of operational risk due to the wells’ location, supply chain and logistics. It was an industry first in the region for several reasons:

  • the first gas discovery in deepwater and deepest water depth well

  • the first time a wellhead was allowed to be left in place in Vietnam

  • the first time a sixth-generation dual derrick rig had worked in Vietnam

  • the first time a deepwater well had targeting basement in the region.

Key results

We assisted our client in the drilling of two deepwater wells off the coast of Vietnam, the first by the consortium. Both wells were safely and successfully drilled, evaluated and abandoned under budget and ahead of schedule. All operations were conducted with zero incidents, accidents and environmental issues. Only three hours' non-productive time of the drilling rig was recorded in 68 days of operations on the first well.

  • <6% non-productive time (NPT).
  • 50 days total time saving over both wells (49.83 days).
  • $40m total cost saving over both wells ($38,924,454).

Business Benefits

  • Rig performance assured.

  • No delays over logistics, materials and personnel.

  • Compliance with legislation and regulations.

  • Constant optimisation of time and costs.

  • Cost savings achieved at each phase.

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Client feedback

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

“With the assistance of the Lloyd’s Register team, JOC (Vietgazprom) brought to a higher level the procedures of contracts signing, risk assessment, HSSE, well engineering. The experience of working together will undoubtedly allow JOC (Vietgazprom) to systematise and develop on its basis a well delivery process with all required procedures for follow-up projects.”

Director

VietGazProm

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