Pre-drilling engineering cost management in the background of two new laws
Author(s): Wang Yaozhi, Luo Jie, Guo Ruiying, Li Yadong, Exploration Business Department of PetroChina Southwest Oil & Gasfield Company, Capital Construction Project Department of PetroChina Southwest Oil & Gasfield Company, Exploration and Development Research Institute of PetroChina Southwest Oil & Gasfield Company
Pages: 123-126
Year: 2015 Issue: 9
Journal: Natural Gas Industry
Keyword: Sichuan Basin; Pre-drilling engineering; Cost; Management; Technology and management innovation; PetroChina southwest Oil & Gasfield Company; Law of the people’s Republic of China on Work Safety; Law of the people’s Republic of China on Environmental Protection;
Abstract: The Sichuan Basin is characterized by complex landforms,developed water systems,dense population and abundant agricultural and forestry resources.In the Sichuan Basin,pre-drilling engineering is difficult in construction,and safety and environmental protection are highly risky.After Law of the People’s Republic of China on Work Safety and Law of the People’s Republic of China on Environmental Protection are newly issued and implemented,more requirements should be met in the construction of pre-drilling engineering,so cost control is more difficult.Therefore,three improvement measures were proposed after the key parts of pre-drilling engineering construction were analyzed.First,optimize well locations and control the cost from the very beginning.Second,optimize design and improve technologies so as to decrease invalid work load as much as possible,increase investment benefits and reduce environmental risk.And third,innovate management mode,implement general contract system and control management cost.Analysis was performed on the oil and gas exploration characteristics of the Sichuan Basin in the new situations,with PetroChina Southwest Oil and Gas Fields Company as an example.And better results are achieved after a series of pre-drilling engineering cost control measures are adopted.On the whole,the pre-drilling engineering cost is kept stable and flat,well drilling costs of exploration areas are basically in control,with the ratio of exploration well pre-drilling engineering to well drilling settling cost,single-well average footage cost,single-well average newly-built road length and single-well average construction land dropping year after year.In this way,oil and gas exploration and development in Sichuan-Chongqing area are surely in good situations.
Pages: 123-126
Year: 2015 Issue: 9
Journal: Natural Gas Industry
Keyword: Sichuan Basin; Pre-drilling engineering; Cost; Management; Technology and management innovation; PetroChina southwest Oil & Gasfield Company; Law of the people’s Republic of China on Work Safety; Law of the people’s Republic of China on Environmental Protection;
Abstract: The Sichuan Basin is characterized by complex landforms,developed water systems,dense population and abundant agricultural and forestry resources.In the Sichuan Basin,pre-drilling engineering is difficult in construction,and safety and environmental protection are highly risky.After Law of the People’s Republic of China on Work Safety and Law of the People’s Republic of China on Environmental Protection are newly issued and implemented,more requirements should be met in the construction of pre-drilling engineering,so cost control is more difficult.Therefore,three improvement measures were proposed after the key parts of pre-drilling engineering construction were analyzed.First,optimize well locations and control the cost from the very beginning.Second,optimize design and improve technologies so as to decrease invalid work load as much as possible,increase investment benefits and reduce environmental risk.And third,innovate management mode,implement general contract system and control management cost.Analysis was performed on the oil and gas exploration characteristics of the Sichuan Basin in the new situations,with PetroChina Southwest Oil and Gas Fields Company as an example.And better results are achieved after a series of pre-drilling engineering cost control measures are adopted.On the whole,the pre-drilling engineering cost is kept stable and flat,well drilling costs of exploration areas are basically in control,with the ratio of exploration well pre-drilling engineering to well drilling settling cost,single-well average footage cost,single-well average newly-built road length and single-well average construction land dropping year after year.In this way,oil and gas exploration and development in Sichuan-Chongqing area are surely in good situations.
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