DRILLING MARKETS
the depths of each hole section. Mr Al
Darkazly also noted possible disputes if the
casing is tagged at different depths than
the BHA, or if directional work deviates
from the plan.
Petronas’ review of cost models also
revealed several potential areas of
improvement for IDS contracts that Mr
Al Darkazly said could help minimize dis-
putes between operators and contractors.
For one, by refining the risk-sharing
mechanism in IDS contracts, operators
can establish clearer responsibilities and
expectations for contractors, minimizing
disputes and creating an environment
where risks are effectively managed and
shared. A potential approach is to transfer the
risk fully to the contractor, which may
result in an increase in the contract cost.
However, this ensures that the operator’s
spend is closely aligned with the bud-
get. For example, if the drilling contractor
bears the cost of mud losses or left-in-hole
BHA, that can help mitigate financial risk
for the operator. Another strategy may be
to share the risk with the contractor based
on a calculated percentage, taking into
account the probability of encountering
issues downhole.
Another way to minimize potential
disputes may be to avoid specifying the
number of rigs in an IDS contract, Mr
Al Darkazly said. This is beneficial from
the operator’s perspective as it allows
for the potential provision of additional
rigs when needed to expedite drilling
activity or overcome contractor-related
delays, ensuring adherence to the delivery
schedule. Thirdly, under the per hole section
model, true vertical depth (TVD) is gener-
ally specified for each hole section with
a safety margin. However, conflicts may
arise in cases where the total depth criteria
are modified by the reservoir geologist to
drill a deeper TVD. To address this issue,
Mr Al Darkazly suggested two potential
mitigations. First, the safety margin of
TVD can be increased based on field expe-
rience, resulting in a higher cost estimate
that can accommodate potential chang-
es. Alternatively, a cost line item can be
included in the contract for each addi-
tional meter drilled beyond the specified
TVD depth, ensuring that any deviations
from the original plan are accounted for
and appropriately compensated.
Also, to prevent disputes and ensure
compliance with established standards,
IDS contracts should include explicit pro-
visions addressing contractor practices
that deviate from the operator’s practic-
es. These practices may include reduc-
ing mud quantity, operating with minimal
manpower, employing inexperienced per-
sonnel and other non-compliant actions.
By incorporating comprehensive details
and emphasizing adherence to the opera-
tor’s practices, Mr Al Darkazly said, opera-
tors can set clear expectations.
“We have a competitive bidding process,
and we’re awarding the contract to the
lowest bidder, so we’re aware that some-
times the contractor must make decisions
to save costs on their end, but we need to
ensure that we are clear about our stan-
dards,” he said. DC
“Insulated pipe,”
continued from page 38
An average MWD temperature of 164°F
was seen while drilling, which FORGE
and Eavor attributed to the positioning of
non-insulated pipe near the BHA. Further,
it was observed that the average MWD
temperature rose to 220°F while drilling in
the next run, when no IDP was used. The
formation reached a maximum tempera-
ture of 450°F throughout all runs.
After the IDP was pulled and inspected
onsite, Eavor noted that the external coat-
ing showed negligible wear from the trial.
There was minor damage to the internal
coating on a small number of joints, but no
damage was found on the MWD tool or the
drill bit nozzles.
“This learning cycle of finding out how
the pipe behaves can be done in the lab,
but it’s really hard to compete with field
deployment. What we’ve seen with our
testing so far is that the thermal out-
put, and the performance of the pipe, is
matching our expectations,” Mr Vetsak
said. He also noted the impact of the IDP in
protecting the MWD tools overall. In a
previous run without using IDP, one of the
MWD batteries – rated for up to 300°F –
failed at a recorded temperature of 327°F.
This was because the BHA faced height-
ened vulnerability during the process of
tripping in the hole and at the beginning
of drilling a new section due to a lack of
circulation. This lack of circulation could
lead to the column warming up close to
the temperature of the surrounding for-
mation. While running in hole, the BHA encoun-
ters hot fluid, and without adequate cir-
culation it can warm up quickly, requir-
ing frequent pauses to circulate and cool
down the BHA. If the cool-downs are not
performed in time, the BHA is at risk of
exceeding its maximum design tempera-
tures. As the IDP reduces heat transfer
between the hot annulus and the cold fluid
in the drill pipe, the risk of exceeding the
BHA maximum temperatures is reduced.
During the two runs utilizing the IDP, Eavor
and Forge reported no failures of the MWD
tools. DC
In May 2023, the IDP was put to the
test again, this time as part of the US
Department of Energy’s FORGE project at
the University of Utah. Eavor provided 350
joints of internally and externally coated
IDP for two bit runs, with the aim to
demonstrate the technology’s capacity to
reduce BHA temperatures, reduce tem-
perature-related equipment failures and
observe any potential drilling performance
improvement. In the first run, a full string of the IDP
was utilized, along with a new motor;
a mud chiller was also brought online
toward the end of the run, decreasing
the inlet temperatures from approximately
130°F to 110°F. An average MWD tempera-
ture of 149°F was seen while drilling, a
reduction of 31° compared with the previ-
ous run in the well.
In the second run, a partial IDP string
was used, with approximately 70% IDP
and 30% regular non-insulated drill pipe.
40 JAN UARY/FEB RUARY 2024 • D R I LLI N G CO N T R ACTO R
EDITORIAL • IADC CONNECTION
IADC project provides new insights
to enhance oil and gas recruiting
FROM THE PRESIDENT
The new year is a great time to contem-
plate what’s working for us and how we
can amplify the elements of our success.
Equally important is identifying areas of
potential growth and paving the way for
innovative solutions. Within the broader
framework of the drilling industry, we
benefit from commendable strengths —
unyielding commitment to safety, ongoing
collaboration for the collective good and
the privilege of working in a field that
enhances people’s quality of life.
Amidst our accomplishments, room for
improvement remains. It’s imperative to
vocalize our own stories, bridging the gap
between the industry’s true nature and
public perception. There’s also a need to
revitalize our efforts in attracting new tal-
ent to this remarkable industry. To main-
tain a competitive edge, we have to capti-
vate the attention of potential employees,
showcasing the dynamic and rewarding
nature of opportunities within our field.
In response to these sectorwide chal-
lenges, IADC launched the Industry Value
Initiative in 2022. The mission was three-
fold: first, to understand perceptions of our
industry among potential employees; sec-
ond, to identify what today’s job seekers
truly desire in a career; and third, to equip
member companies with the insights
gleaned from this project to aid them in
attracting and securing top talent.
To set the project in motion, IADC con-
tracted Brunswick Group to design and
execute a research plan to help us gain
a baseline understanding of perceptions,
motivations, misconceptions and oppor-
tunities among prospective employees.
Brunswick Group conducted a series of
focus groups and online surveys among
specific audiences in key regions. The
identified audience groups included vet-
erans, vocational students and individuals
currently employed in a relevant industry,
among others. Key regions for this proj-
ect were the United States, the United
Kingdom, Asia Pacific and the European
Union. We learned from the research findings
that higher familiarity with the drilling
industry often correlates to increased
interest. When exposed to tailored mes-
saging, most groups expressed markedly
higher openness to this field. The data also
revealed that awareness of the industry is
modest, indicating significant opportunity
to enhance public understanding. Broad
outreach about the industry’s nature and
purpose is essential to thrive in today’s
labor market. It’s very likely that promis-
ing future employees aren’t considering
drilling careers presently, whether due to
unfamiliarity or misinformation.
To make inroads, messaging must align
with prospective employees’ aspirations.
Those surveyed valued work-life balance,
career growth and professional develop-
ment above all. Job security, workplace
safety and benefits were also viewed as
essential priorities. Attracting talented
candidates will require finding compel-
ling ways to communicate the advantages
of working in this industry.
Additionally, it’s crucial to directly
address prevalent concerns regarding a
career in drilling, such as environmen-
tal impact, job insecurity and workplace
hazards. In surveys, participants selected
“risky” and “polluting” as top descriptors
for the industry, while considering “safe”
and “sustainable” as inapplicable. Many
also felt as though a career in drilling was
“not for them,” whether from disinterest or
perceived lack of credentials. To challenge
these notions, messaging should show-
case our commitment to sustainability and
an inclusive work culture. By highlighting
stewardship initiatives, safety innovations
and diversity in roles, we can convey that
our industry offers dynamic, stable careers
for all types of talent. Reassuring narra-
tives that combat outdated myths and
accurately reflect our values will likely
resonate with prospective recruits.
On that note, we can also utilize messag-
ing around advanced technology to rein-
troduce the industry to people. While tech-
Jason McFarland, IADC President
nology was not the audience’s first associ-
ation with drilling, messaging around how
we use cutting-edge technology can help
drive interest moving forward. By show-
casing complex technical capabilities and
state-of-the-art tools, we can reshape anti-
quated perceptions and set this industry
apart as an exciting career option for the
next generation.
In order to spread any of the above mes-
sages, we must utilize the right channels
and sources. Company websites and social
media platforms are fundamental avenues
to educate potential recruits. Furthermore,
those surveyed indicated that if consider-
ing a drilling career, they would turn first
to family, friends and acquaintances with
a career in the industry as their most trust-
ed sources. This underscores the impor-
tance of empowering current employees to
be passionate and authentic ambassadors
for working in this field.
These data-driven insights synthesize
more than a year of diligent work to guide
our members in today’s recruiting land-
scape, yet they represent just a preview
of the extensive Industry Value Initiative
project findings. IADC invites and encour-
ages all members to fully leverage these
resources to craft targeted outreach efforts.
With compelling, research-based messag-
ing, we can capture the interest of the
future workforce. Our success depends
on conveying what makes this work so
meaningful – both to seasoned employees
and promising newcomers alike. DC
D R I LLI N G CO N T R ACTO R • JAN UARY/FEB RUARY 2024
Scan me to access
the IVI Executive
Summary and research
ﬁ ndings.
bit.ly/4b5CudB 41