Reducing NPT Amidst Fluctuating Crude Oil Prices: Using Data Analysis to Investigate Well Construction Cost

Abstract

Abstract During drilling operations, one of the key parameters keenly monitored and measured is the Non-Productive Time (NPT). It is usually desired to be kept as minimal as possible due to its significant contribution to the entire well construction cost. In some instances, some of the factors responsible cannot be controlled such as bad weather conditions or occurrence of natural disasters. However, industry experience shows that a significant chunk of most NPT recorded can be avoided and mitigated with adequate planning, monitoring and prompt decision-making. In order to ensure sustainable oil production amidst the present economic situation of fluctuating crude oil prices occasioned by the imminent energy transition and other related factors, the costs associated with development and production of hydrocarbon assets will require prudent management by eliminating or reducing NPTs. This paper aims to illustrate some of the best in-class operational procedures and actions undertaken by the drilling operations team of a producing company for significant reduction of NPT spanning across seven (7) wells in two (2) of its producing fields. Information from structured daily operations reports were extracted and analyzed with significant focus on the time sheets and contributing factors to Non-Productive Time. Further attempts were made to identify the major contributors and the most efficient processes to eliminate their occurrences. The analysis shows an average of about thirteen percent from the first well drilled in 2018 to the most recent one drilled in 2021. This translates to about USD5.4 million in NPT cost equivalent over the span of the seven (7) wells. The prevalent drilling operational challenges were found to be related to host community issues, location preparation, statutory regulatory compliance issues, logistics, weather conditions, crew competency, well-bore instability, and most prevalently rig equipment failures etc. The data analysis showed a consistent decrease in NPTs for these factors, primarily due to deliberate and concise project planning and execution. The results from these analyses can therefore be used as a framework to improve current drilling practices, in order to achieve significant well construction cost savings and further support the need for sustainable oil production. However, it is important to ensure quality data gathering and structure by insisting on identifying and recording all the NPT-related issues. This will allow prompt forecasting of drilling operational challenges as well as proactively taking concrete steps to mitigating them.