National Oilwell Varco Drilling Automation and Optimization 2017 03 03

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Integrated drilling intelligence

Drilling Automation

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 2

You already own the rig of the future.

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 3

We enable you.

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 4

The driller is the link

Equipment Controls Integration

Drilling Optimization Processes

DRILLER

Machine control

Process control

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 5

DRILLER

CO Man

Comms Method

Verbal Commands

Drawworks Top Drive Mud Pump MPD

Drilling Mechanics

Meas

Formation Evaluation

Survey Meas

Steering Equip

A Bit Meas

The driller is the link

OPERATING SYSTEM

Hoist up

Open IBOP

Open slips

Start pumps

Start rotation

Tag bottom

Stop rotation

Stop pumps

Close slips

Close IBOP

Turn on Auto Driller

Hoist up

How slow should I lower to bottom?

Did I hoist high enough?

Can I start my pumps?

What RPM?

Is my crew safe?

What was survey depth?

Did I forget something?

OPERATING SYSTEM

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 7

Driller as a pilot DRILLER

(observes process)

GEOLOGIST DRILLING ENG

(offsite)

Comms Method

eVolve, 3rd party apps

Drawworks Top Drive Mud Pump MPD

Distributed Sensors

Drilling Mechanics

Meas

Formation Evaluation

Survey Meas

Steering Equip

A Bit Meas

APP for that?

NOVOS

OPERATING SYSTEM

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 8

NOVOS is the link

Equipment Controls Integration

Machine control

Drilling

Optimization

Processes

Process control

DRILLER (Process Supervisor)

NOVOS

OEM 3rd parties

OPERATING SYSTEM

©2016 NOV | Proprietary and confidential. National Oilwell Varco - Investor Presentation | 9

Machine Control – COMPLEX!! Top Drive Inputs & Outputs

©2016 NOV | Proprietary and confidential. National Oilwell Varco - Investor Presentation | 10

Process Control - Simple Top Drive RPM & Torque

NOVOS

Torque RPM

RPM

Torque

Process Inputs

Machine Control

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 11

Integrate

• NOVOS Process Automation Platform

• Integrates NOV Controls (Cyberbase & Amphion)

• SDK – Software Development Kit

• ANYONE can create an APP!

INTEGRATION

AP

MP

HIO

N C

YBER

BA

SE

SDK

Equipment Controls Integration

NOV Drilling

Optimization

Processes

3rd P NOVOS

OPERATING SYSTEM

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 12

NOVOS system overview

Surface Data from Rig Instruments

NOVOS takes aggregated data from surface instrumentation, rig

equipment and 3rd party data sources

NOVOS Integration Kit

Application Server, Interface SBC, Mission Control IPC,

Visualization IPC

NOVOS User Interface and Drillers set up

NOVOS screen replaces one of the driller’s Amphion

Downhole Data

NOVOS takes data from NOV and 3rd party downhole tools,

either by mud pulse or IntelliServ high speed network

OPERATING SYSTEM

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 13

Automate

• Well Plan – creates consistency every well.

• Automate the steps – Mud Pumps On

– Tag Bottom

– AutoDriller

– Off Bottom

– Mud Pumps Off

– Survey

– Etc.

AUTOMATION

TAG

BO

TTOM

SURVEY

FLO

W O

FF

INTEGRATION

AP

MP

HIO

N C

YBER

BA

SE

SDK

Equipment Controls Integration

NOV Drilling

Optimization

Processes

3rd P NOVOS

OPERATING SYSTEM

Cycle 5

Cycle 1

Cycle 2

Cycle 3

Cycle 4

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 14

Driller managing drilling steps

Completed 5 cycles in 20 minutes.

Inconsistent in

• Engaging Auto Driller

• Tagging bottom

• Setting slips

Block Height

Tim

e (m

inu

tes)

OPERATING SYSTEM

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 15

Driller managing the drilling process

Completed 11 cycles in 20 minutes.

Consistent in

• Drilling Process

• Minimizing Variances

• Protecting tools from damage

Up to 120% increase in productivity

Block Height

Tim

e (m

inu

tes)

OPERATING SYSTEM

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 16

Rig Optimization

• Optimize the Automated Steps – Circulating Bottoms Up

– Tag / Off Bottom – Minimum Bit Wear

– True Drill – Consistent Weight AT the Bit

RIG OPTIMIZATION

AUTOMATION

TAG

BO

TTOM

SURVEY

FLO

W O

FF

INTEGRATION

AP

MP

HIO

N C

YBER

BA

SE

SDK

Equipment Controls Integration

NOV Drilling

Optimization

Processes

3rd P NOVOS

OPERATING SYSTEM

©2014 NOV | Proprietary and confidential. Presentation Name - 00/00/00 | 17

Drilling Practices

Transitioning from sliding to rotating zone

During transition upwards of 30 G’s seen by the EMS

RPM variance seen from 0 to +500 RPM while moving pipe off bottom due to static friction

RPM variance seen coming from the high bend angle when rotating

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Burst Analysis HF Data

EMS showing high torsional vibrations, magnitudes seen in burst data below

• Burst data shows Gyro RPM fluctuations from 0-140 RPM’s during this period • Burst dominant frequency 0.28 hz which is the first torsional natural harmonic of

the string • There is also a secondary frequency generated by the high bend angle of the

motor creating a second peak in the Gyro RPM signal

©2014 NOV | Proprietary and confidential. Presentation Name - 00/00/00 | 19

Toolface stability Visualization

©2015 NOV | Proprietary and confidential. Presentation Name - 00/00/00 | 20

Burst – Data Animation – Reverse Rotation during Stick-Slip

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 21

IntelliServ system overview

WIRED DRILL PIPE

DataSwivel

Extracts signal from rotating drillstring

NetCon

Surface network controller and management system

Wired Drillstring

Enables high speed data transmission across drillstring

DataLinks or ASMs

Installed periodically along drillstring to condition and

amplify data signal (Matted to normal R2 or R3 joints of pipe)

MWD Interface Subs Interface between MWD, LWD tools and RSS tools and IntelliServ network

Reliability and Performance

¹Uptime is defined as the percentage of time that the Network is online and transmitting high-speed data. Uptime

% = (Possible Data Hours - Downtime)/ Possible Data Hours

Closed Loop Downhole Automation

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 24

Automated Drilling Applications DrillShark™, DH Drillshark

CLOSED LOOP

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 25

Automated Drilling Applications TrueDrill™

Well 6

Well 1

CLOSED LOOP

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 26

Automated Drilling Applications Automated Directional Drilling

CLOSED LOOP

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 27

Automated Drilling Applications EFD Visualization

CLOSED LOOP

• NOV topdrive software upgrade mitigates torsional vibration and stick • Sends an inverse wave into the drillstring, much like noise cancelling

• Improves drilling performance by • Improving borehole quality

• Improving RSS directional control

• Reducing torsional and coupled lateral vibrations

• Engaging cutters consistently

• Increasing founder point for higher ROP

• Increasing MTBF

• Improving MWD decoding

SoftSpeed2

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“Turn the Lights on” - WDP

• Coaxial cable enables 57.600 bps

Lateral Vibration

• Sensors along the entire drillstring

• monitor and control downhole

conditions throughout the well

Visualization – Vibration Mitigation W

ell

Depth

T

VD

• MWD – Single Point Measurement

Time Now

Vib

rati

on

Sev

erit

y Le

vel

Time Historical

Downhole Vibrations Viewer

• WDP – Along String Measurement

Down Hole Equivalent Fluid Density W

ell

Depth

T

VD

• MWD – Single Point Measurement

Time Now

Flu

id D

en

sity

Time Historical

Equivalent Fluid Density

• WDP – Along String Measurement

EFD Viewer – Pack off W

ell

Depth

T

VD

• MWD – Single Point Measurement

Time Now

Flu

id D

en

sity

Time Historical

Equivalent Fluid Density

• WDP – Along String Measurement

Flow off – NO DATA from downhole Flow off – Lights ON with WDP Pack off identified below ASM 2 and above ASM 1 (not around BHA)

ASM 1

ASM 2

Pack off

Pack off

Well Control Awareness Lost circulation events

• Along-string measurements for improved well control awareness

‒ Internal & annular pressure, temperature, rotation and vibrations

The RT annular pressure readings were used to calculate the relative height of the fluid column, providing a clear understanding of the wellbore condition

Well Control Awareness Hole cleaning

• Along-string measurements for improved well control awareness

‒ Internal & annular pressure, temperature, rotation and vibrations

Coring Efficiency jamming

Reduction in downhole torsional vibrations

Reduction in downhole torque

WOB ”unaffected”

EFD Viewer – Lost Circulation Drilling ahead – even color

Picking off bottom, circulating Colors change as hydrostatic pressure decreases

Continuing colorchanges show further decreased hydrostatic pressure

Well

Depth

W

ell

Depth

W

ell

Depth

Time 1

Time 2

Time 3

Time 1

Start displacement

Displacing..

Well displaced

Mud Displacement

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 38

Field Optimization

FIELD OPTIMIZATION

RIG OPTIMIZATION

AUTOMATION

TAG

BO

TTOM

SURVEY

FLO

W O

FF

INTEGRATION

AP

MP

HIO

N C

YBER

BA

SE

SDK

Equipment Controls Integration

NOV Drilling

Optimization

Processes

3rd P NOVOS

Distribute Learnings from one well to the fleet

NOV

NOVOS CLOUD

NOV NOV NOV

OPERATING SYSTEM

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 39

Conoco Phillips, Land USA

42 % reduction in time from previous pad Spud to TD

CLOSED LOOP

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 40

Hess, Land USA

More than 30% reduction in time from three previous pads

CLOSED LOOP

©2016 NOV | Proprietary and confidential. National Oilwell Varco - ADNOC | 41

• North Dakota,

• Very Similar rigs 1KM apart

• Supply chain efficiency

• Cuts waiting time

Consistent delivery

CLOSED LOOP

Reduced well delivery time

Less Non Productive Time and Invisible Lost Time

Helps train the next generation of drillers

More production from same rigs

Consistency and repeatability of performance

Improved decision making

Enables remote operations and efficient knowledge capture

Early gains in performance on challenging assets

Transfer learnings across all rigs

Automation Value Creation

©2016 NOV | Proprietary and confidential. 42