2.17 Modified for choke line friction.

Stop in operation
a) Make a plot of pump pressure vs. # of pump strokes in the graph below. Include
also a rough sketch of pump
and casing pressure before injection of kill mud, with the following information: The
kick is detected at
minus 3500 strokes as shown in Figure 2-5. Use Drillers method. Pump is turned on
to kill the well at 3000
strokes. Assume casing surface pressure reaches a maximum at 500 strokes and
that all gas is out of the
annulus/ choke line at 250 strokes. Start injection of kill mud at 0 strokes. All
depths are related to RKB.
Mud weight, 1 : 1.4 kg/1
Reduced pump circulating rate, SCR: 30 spm
Pump flow rate: 800 1/min
Pressure when circulated up riser: SCP1 38 bar
Pressure when circulated up choke line: SCP1 53 bar
Well depth: TVD 3000 m
Casing shoe depth: 2000 m
SIDPP: 30 bar
SICP: 37 bar
CapDS: 10 l/m
pLO at casing shoe with mud of 1060 kg/l: 115 bar
Figure 2-2 World Bank Working Paper
_
In_general_terms,_the_geological_risk_begins_to_diminish_after_a_discovery,_while_the_
political_and_financial_risks_intensify.5_One_reason_for_this_is_that_the_bargaining_power_
and_relative_strength_of_the_investor(s)_and_host_government_shift_during_the_cycle_of_
exploration_ and_ development._ By_ the_ time_ production_ starts,_ capital_ investment_ is_ a_
sunk_cost,_and_facilities_installed_in_foreign_countries_represent_a_source_of_vulnerability_
to_the_investor_(Tordo,_2007).__
Initially,_ oil_ and_ gas_ lie_ in_ undiscovered_ reservoirs_ of_ various_ sizes_ situated_ at_
different_depths_in_the_earths_crust.6_Although_technological_advances_in_recent_years_
have_helped_substantially_reduce_the_uncertainty_of_possible_outcomes_in_both_mature_
and_ frontier_ basins,_ the_ exploration_ of_ oil_ and_ gas_ remain_ a_ high_risk_ venture._
Geological_ and_ geophysical_ data_ provide_ some_ indication_ of_ reservoirs_ location_ and_
size,_ but,_ ultimately,_ the_ only_ way_ to_ determine_ whether_ oil_ and_ gas_ is_ present_ in_
commercial_ quantities_ is_ to_ drill_ a_ well._ When_ an_ exploratory_ well_ is_ successful,_
additional_ wells_ are_ drilled_ to_ determine_ the_ extent_ of_ the_ discovery_ and_ the_
development_ options.7_ If_ the_commercial_ viability_of_ a_ discovery_ is_ established,_more_
wells_ (that_ is,_ additional_ investments)_ are_ usually_ needed_ to_ develop_ the_ discovery._

Once_ the_ production_ (and_ transportation)_ capacity_ is_ installed,_ oil_ and_ gas_ are_
produced_over_a_number_of_yearsusually_at_declining_rates_as_resources_are_depleted._
The_level_and_length_of_production_depend_on_a_host_of_factors,_both_technical_(such_as_
size,_ reservoir_ characteristics,_ characteristics_ of_ crude_ oil_ and/or_ gas,_ and_ geography)_
and_economic_(oil_ and_ gas_ prices,_ project_ costs,_ fiscal_ regime,_ and_ so_ on)._During_ the_
exploration_ phase,_ major_ uncertainties_ are_ related_ to_ volumes_ in_ place_ and_ project_
economics._ As_ more_ information_ is_ acquired,_ these_ uncertainties_ are_ mitigated;_
meanwhile,_uncertainties_related_to_the_recovery_factor,_reservoir_performance,_project_
cost,_oil_and_gas_price,_and_regulatory_changes_become_more_relevant._
Given_these_factors,_it_is_difficult_to_determine,_in_advance,_the_existence_and_size_of_
oil_and_gas_resources,_as_well_as_their_quality,_potential_production_levels,_finding_and_
development_ costs,_ and_ future_ prices_ in_ the_ world_market._Moreover,_ the_ resource_ is_
nonrenewable,_and_a_large_portion_of_the_total_risk_is_project_specific._These_facts_bear_
important_ consequences_ for_ policy_ makers:_ even_ if_ a_ hypothetical_ social_ welfare_
function_ could_ be_ determined_ with_ precision,_ the_ uncertainty_ surrounding_ the_
existence_ and_ value_ of_ petroleum_ resources_ makes_ their_ management_ a_ complex_
endeavor._Policy_makers_are_therefore_motivated_to_devise_and_implement_policies_that_
reduce_uncertainty._Promoting_exploration_activities_helps_to_reduce_uncertainty_but,_as_
this_paper_will_show,_requires_numerous_policy_decisions.__

The Decision to Explore for Petroleum Resources

The_ first_ crucial_ set_of_ decisions_ a_government_ faces_ is_ whether_or_not_ to_ explore_ for_
petroleum,_at_what_pace_to_explore,_and_who_should_undertake_such_exploration._
Petroleum_has_played_an_important_role_over_the_past_century,_and_its_numerous_
uses_have_become_an_integral_part_of_todays_global_economy._Hence,_the_presence_of_
petroleum_in_meaningful_quantities_can_have_important_economic,_developmental,_and_
strategic_ consequences_ for_ a_ country._ On_ this_ basis_ only,_ we_ could_ conclude_ that_
information_ on_ the_ existence,_ likely_ size,_ and_ distribution_ of_ petroleum_ reserves_ is_
valuable_to_the_society_at_large._This_holds_true_even_if_exploration_proves_unsuccessful.__