Gulf of Mexico Performance Fluids Management Implementation - Seven-Step Process

Abstract

Abstract BP's Gulf of Mexico (GoM) Operations have determined that the reduction of oil-on-cuttings (OOC) from 14% to less than 6.9% would provide the best opportunity to minimize the environmental impact of drilled cuttings discharge base on currently available technologies. Meeting the GoM NPDES environmental regulations, while simultaneously improving drilling performance drove the implementation of a Performance Fluids Management (PFM) process. Created within BP, PFM is a management process that integrates fluids and waste management. The new GoM cuttings discharge regulation (max 6.9% oil on cuttings) was met without adversely impacting drilling operations, while also reducing fluid cost by 8% ($3.5 MM) in 2001. This paper discusses the development and application of the PFM process. The authors will present the key components of PFM, which include implementation of a common format for fluid management programs, end-of-well recaps, a weekly PFM report capturing agreed upon performance targets, the PFM audit process, skill assessment for fluids and PFM engineers, and a model to predict accurate PFM cost/volumes generated. The PFM process has been implemented in Colombia, Bolivia and Argentina where it delivered similar savings. The process currently is being implemented in Trinidad. The process is applicable to wells in excess of $7–10 million total cost. The potential fluid cost reduction associated with a global PFM implementation will be around 10–15% ($20–25 million/year). Introduction Performance Fluids Management, or PFM as it is known by the acronym, is BP's worldwide management system for integrating drilling fluids, completion fluids, solids control, waste management and waste disposal. More than a bundling of services, PFM integrates the total fluid services into the goals of the total project. 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 costs. The Performance Fluids Management 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 In 2001 PFM was successfully implemented in the deepwater area of the Gulf of Mexico. Initial results show an 8% reduction in operating cost. Successful implementation of the process required cooperation and teamwork from both BP and the fluid service provider. In some cases PFM required changes in work habits and culture, which do not occur over night. However, incremental behavior changes can be managed over a few months to allow everyone to embrace the new process. Once the system is in place, and improvement begins, the change to PFM gets easier. The PFM drivers are:Improve drilling performanceQA/QC in fluids / waste management and environmental impactDelivery of high value from drilling fluids and waste management contractorsAbility to track and measure performanceImplementation of a common format for fluids and waste management programs Key Elements for a Successful Implementation of PFM Process 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. Since PFM requires modifying habits and current work processes, several things are needed prior to beginning the implementation of Performance Fluid Management.