Es el compromiso que hacemos con nuestros clientes y nuestro diferenciador más importante dentro de la industria de Oil and Gas. Así es como aseguramos la calidad y excelencia de nuestras operaciones de Perforación y Terminación.
Líderes en la industria de la perforación marina y terrestre.
To maximize the use of engineering tools in addition to expert judgment when setting the Technical Limit (TL) for a given operation, a methodology has been introduced to enable the success of oil and gas projects.
The paper “Integrated Operation Performance and Optimization Analysis Based on Technical Limit and Invisible Lost Time,” by Freddy José Márquez, EPRA Consultores, and Ranses Guillermo Sandrea, Opex, describes a methodology aimed to define a TL based on specific conditions of the well, to identify not only the invisible lost time (ILT) from operational performance, but also identify imprecisions on the daily operation reports (DOR), the program and well design.
Technical Limit (TL) and ILT are concepts that have contributed to the success of oil and gas projects around the world beginning in the late 1990s, many of which have been documented and presented at international conferences. The authors agree that TL represents the optimum time for a given operation, based on statistical analysis or operation team commitment. There is no doubt that defining TL could be challenging when unique activities are programmed or there is a lack of offset data — in these situations the estimated TL may be biased.
To present a better perspective, the paper defines that ILT is the difference between the productive time and TL. This value allows the estimation of efficiency. Identified invisible lost time (IILT) is the ILT portion that can be measured with real time data and/or DOR. The other portion is defined as unidentified ILT (UILT). In this paper, IILT and UILT were estimated to productive and non- productive time (NPT). In addition, geological correlation was used to estimate ILT derived from drilling performance.
Over 20 years ago, Bond et al. (1996) presented a well construction process idea that disrupted the way oil companies planned and executed drilling and completion projects. According to the paper, Bond proposed and defined TL as the “best possible” time for a given set of design parameters. He also introduced the concept of ILT, defined as the time taken to perform those activities included in a “normal” well but excluded on a theoretical well at which each operation is considered to achieve its best performance. The advantage is that TL allows one to estimate the operational efficiency and identify opportunities for improvement even when a well is constructed problem-free. TL is considered the foundation for different technical analyses presented in posts and papers from different companies that document importance of time and cost-saving achievements in international projects. Most of the literature consulted for the elaboration of this paper considers the use of statistics and drilling teams’ commitments to set the TL, which could lead to bias.
TL philosophy has demonstrated that processes can be improved by adopting systematic procedures, and when combined with technology, the results can be much more forceful. For instance, Maidla et al. (2010) use surface sensors data to improve drilling connection performance based on ILT, while Spoerker et al. (2011) presented a similar analysis but considering pipe tripping connections and casing connections. Lakhanpal et al. (2017) applied advanced signal reconstruction concepts to surface sensor data to calculate non-productive time (NPT) and ILT. In addition, Shamsi et al. (2018) and Torres et al. (2019) implemented the TL philosophy and used dashboards as a data visualization tool to communicate the results and explore the data to maximize its value. Ouahrani et al. (2018) presented an outstanding paper that demonstrates the value of combining TL philosophy with advanced data analysis and data visualization in real time.
According to the report, Coley et al. (2019) presented a paper that focuses on the development of a generalizable rig state engine based on the application of supervised ML classifiers to identify rig state. The model allowed the prediction of the current operation or rig state to derive metrics, Key Performance Indicators (KPI) and ILT, which were stored alongside the original real time and contextual data. Mora et al. (2021) compared different approaches, based on TL defined by experience, statistics, and ML, to measure ILT in drilling connections and point out the advantages and disadvantages of each method.
There are challenges and risks. For instance, there is the risk that completion and drilling teams may perceive that TL is neither realistic nor achievable, which has been documented in different papers. For example, Gallagher et al. (2005) noted that it was difficult to convince crews that TL does not mean “rush-rush,” so careful attention must be paid to implementation. Also, there is a fine line between loading someone up until they are stretched and setting unrealistic goals through overloading. Therefore, it is critically important to set goals with the right amount of stretch to challenge and to motivate employees without over-stressing. Shamsi et al. and Torres et al. identified it as challenging to obtain alignment across the different teams and overcome the resistance to change. Shamsi et al. also considered this condition a risk to shortcuts and potential trigger for HSE (Health, Safety and Environment) incidents or well integrity issues; hence, the ILT target was defined in agreement with all the crews and service companies based on the ideas proposed in ILT workshops.
The paper goes on to explain that to identify ILT related to performance the TL should be defined considering the current conditions as much as possible. Otherwise, it may be a situation where it is difficult to determine if inefficiency is due to performance or technology.
The engineering team should set up a TL that allows to identify, representative ILT to make improvement plans for future wells. During this time, strategic and stretch goals can be communicated to the team to ensure that they are perceived as realistic. In other words, set an engineering target and a
performance target. Management must provide the resources to achieve the goals and promote a “no blame culture” as recommended by Bond et al. (1996) at the beginning of the TL implementation.
The methodology suggests that the first step is to define the operation sequence, followed by defining a TL for each activity on that sequence based on statistics, engineering, or expert judgment. The report recommends that whenever possible, engineering should be used to estimate the TL under current conditions. For instance, hydraulic surge analysis will provide an optimum block velocity while tripping, and lag time will be a reference to define the time needed to clean the hole based on depth. In addition, hydraulics can be used to estimate the optimum pumping time to keep the pressure under rig specifications, as well as quantitatively estimating the value of having an accurate pore pressure prediction, accurate hydraulics models, cement tests, and others.
It is important to mention that the estimation of Invisible Lost Time in this paper, ILT, is referred to the difference between the TL defined on the planning phase and the actual productive time. Moreover, ILT is calculated for routine operations during NPT, such as bit trips, making and breaking bottom hole assemblies (BHA), among others. The paper reports that if real-time data is available, it can be used to identify sources of inefficiency by measuring ILT on drilling connections, time to pull a stand, circulating time, among others. These ILTs are defined as Identified Invisible Lost Time (IILT). The difference between ILT and IILT is defined as Unidentified Invisible Lost Time (UILT).
Once the ILT is estimated, the paper suggests it should be visualized among the data collected from reports and sensors to complement the improvements in process. High-tech dashboards allow the exploration of the data in real time and the visualization of hidden data patterns that can enhance its value. Current technologies allow sharing those sophisticated dashboards via the internet or intranet.
The paper reports that these results and data collected are analyzed to estimate the operation efficiency, quality of TL defined in the program, DOR precision and other potential inefficiencies that are not identified through the real-time data. Even when a technical limit is achieved, a root cause analysis (RCA) should be performed to evaluate operation performance, DOR accuracy and program quality. Lessons learned and best practices are captured through these RCA to adjust the current operation or be implemented in future projects.
The following case study puts the described methodology into context. The data corresponds to the drilling of a 12.25-inch hole, considering the operations from making up directional drilling BHA until the last BHA was laid down to run wireline logs.
The paper reports that after calculating the TL, ILT were estimated. However, some inconsistencies were observed in the results. The DOR was validated with real-time data, finding some activities that were shifted from the actual time that started and/or ended. Therefore, the times each activity on the DOR started and ended were validated or corrected to improve the quality of the analysis.
The case study presented in this paper demonstrated that by combining DOR, real-time data, and visualization tools, it is possible to identify sources of inefficiency. It is important to highlight that applying engineering calculations when defining the TL allows the evaluation of the efficiency of the operation under current conditions and the quality of both the operational program and DOR.
Distribution, Removable Time Distribution and Invisible Lost Time Distribution.
1. Setting TL from engineering calculations allows to:
+ Evaluate operational efficiency.
+ Evaluate the quality of operational program, and operation reports.
+ Reduce the need of historical data.
2. ILT during NPT brings an opportunity to reduce the NPT to the minimum possible.
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3. All tools available must be used to identify ILT.
4. UILT quantifies the ILT that cannot be identified with current resources.
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The implementation of a strong system of corporate governance and compliance policies for the oil and gas industry has become increasingly important for the success and sustainability of companies. It is a fact that inappropriate practices can jeopardize public trust, a company’s reputation, transparency, and principles. Therefore, it is necessary to identify, manage and control the company´s inherent risks effectively.
This is why the design and development of a compliance program is an essential tool for OPEX. The program enforces the methodology to carry out periodic evaluations of risks and controls, making it possible to define the next actions to strengthen regulatory compliance. However, to ensure the effectiveness of a compliance program, it is essential to incorporate the company’s Code of Conduct.
OPEX´s Code of Conduct establishes the ethical principles and guiding rules that guide the associates´ practices and decision-making within the organization. By incorporating the provisions of the Code of Conduct into the compliance program, the basic principles (foundation) are laid for an ethical and responsible business environment that strengthens integrity and public trust.
OPEX is a Mexican company specialized in the exploration and drilling of offshore and onshore wells and has successfully implemented a Code of Conduct that guides the behavior of its employees in their daily functions. This Code not only establishes the ethical norms and guiding principles, but also seeks to protect, strengthen and foster the trust that shareholders, clients, associates, suppliers, government authorities and people have placed in the company.
In addition, OPEX has developed a series of specific policies that, together with the Code of Conduct and the compliance policy, ensure high standards of integrity and effectiveness in areas such as health, safety and the environment, in addition to enforcing quality in all operations, supply chain and information security. The company also complies with its contractual commitments to customers, business partners, and subcontractors in a transparent manner, ensuring high standards of regulatory compliance.
In conclusion, the implementation of a compliance program and the incorporation of the Code of Conduct are essential for the success and sustainability of companies in the oil and gas industry. OPEX is an example of how the implementation of strong corporate governance policies and a focus on ethics and legality aid in protecting public trust and ensure integrity and effectiveness for the company.
To learn more about OPEX’s corporate governance policies and actions in favor of legality, ethics, transparency and regulatory compliance, visit: https://www.opex.mx/
In the southeastern region of Mexico, the development of oil fields is increasingly facing greater challenges. Currently, deeper reservoirs with complex geological settings and high pressuretemperature conditions have been discovered. One such case is Field A, located 17km from Comalcalco, Tabasco. This field is characterized by a complex geological history as a result of various tectonic-sedimentary events that gave rise to the sedimentary deposit which today make up its geological column.
The field’s geological conditions have led to deviations in drilling operations, prompting the execution of a thorough analysis by each specialty involved in the project, resulting in synergies across the entire multidisciplinary group.
This following article will address the challenges of drilling deep wells in Field A in the Isthmus Basin, presented during planning and execution, as well as improvement actions implemented that have allowed Opex Perforadora to optimize drilling times and, in turn, reduce delivery times to production.
Field A is characterized by the presence of salt structures with upward thrust, which are defined as precursors to the origin of sedimentary basin formation.
The current development of the field consists of four producing wells and three in operation. During the drilling process, these wells experienced specific particularities related to their geographical location in the field, which required a more extensive multidisciplinary analysis aimed at better understanding its geological environment.
With the support of Opex Perforadora’s geology, geophysics, and geomechanics departments, a geological characterization was conducted by zones to determine the most critical drilling risks as well as the plans to mitigate them.
Due to the specific challenges encountered during well drilling, particularly in relation to high-pressure sands, a decision was made to partition the field into two distinct blocks, (Block 1 and Block 2). This division became necessary due to the influence of a regional fault on the positioning of the sands.
Optimization in the design of Field A according to the risks encountered during drilling:
Throughout the development of Field A, numerous events occurred during drilling, including partial loss of circulation, influx, tabular collapses, gasification, and entrapments.
The most prominent risks in Field A include the presence of sandy intercalations with high pressure and a lower fracture gradient in western zone of the field. This led to the installation of a contingency 113/4-inch liner to continue drilling the highpressure zone.
The current design of Field A includes five Tubing-Retrievable (TR) packer installations and one contingency (Figure 2). This is a robust mechanical arrangement that, based on the information obtained from the current wells drilled in the field, is considered to be optimizable.
The placement of the 16-inch TR aims to isolate the sequence of producing depressed sands from the tertiary; nevertheless, well No. 3 was drilled in the northeast zone of Field A. Due to mechanical limitations of the drilling equipment, the placement of the 16-inch TR was programmed without fully covering the depressed sands section.
The remaining section of these sands was isolated with the placement of the 133/8-inch” TR. During drilling, only two intervals showed low pore pressure gradients (0.33 and 0.84 g/ cm3), which were drilled with mud densities (1.44 g/cm3) using high-performance bridging materials. By doing this, the risk of severe circulation losses and differential sticking was reduced, leading to the determination that it is feasible to eliminate the placement of the 16-inch TR in this area of the field.
The most critical area of Field A is located in the over-pressured sand sequence of the Miocene. This area is influenced by its position within the field. For Block 1, with an eastern direction, one can appreciate in wells 1A, 1, and 2 that the sand section is located at approximately ±4,000 mv, and at this depth, the fracture gradient is high (2.08 g/cm3).
Block 2, with a western direction, has a tendency to structurally uplift due to the influence of the regional fault. The sands are found at a shallower depth level than in Block 1. In well 6 ST, the high-pressure sand section was encountered at approximately ±3,750 mv (Figure 3), where an influx occurred, leading to a sidetrack and subsequently setting a contingency liner before the high-pressure zone.
The placement of the 9 5/8 -inch TR aims to cover the abnormal pressure zone that starts in the Miocene and extends up to the electric log marker at the top of the Upper Cretaceous Agua Nueva (KSAN) formation. However, based on the information obtained during the drilling of well 1 in Field A, it was observed that the placement of this TR within the Upper Cretaceous San Felipe (KSSF) formation, solely to isolate the abnormal pressure zone accompanied by the presence of the Upper Cretaceous Méndez (KSM) shale formation, provided the sufficient gradient to drill through the reservoir section. Additionally, it increased the rate of penetration and optimized operational times when drilling with an 8 1/2-inch drill bit.
During the drilling of well 2, one of the events with the greatest impact on drilling times was the low rate of penetration in the 8 1/2-inch stage due to the presence of flint in KSAN and KM, indicated by red boxes (Figure 4). This led to additional trips for drill bit changes.
Given the success achieved in drilling the 8 1/2-inch stage in well 2, the application of the downhole motor was replicated in the bottom hole assembly perforation design for well 6. This allowed the reduction of trips to change the drill bit from nine to two, resulting in the longest recorded drilling in the Mesozoic using a PDC 713 drill bit (Record: 1077 m cut, ROP of 4 m/hr, wear of 3-4-RO-S-X-I -CT/HC-
Optimization 5 (Drilling of 81/2-inch and 55/8 -inch stages in a single run)
During the drilling of the last two stages (8 1/2 inches and 5 5/8 inches) in the Upper Cretaceous and Upper Jurassic of well 1, similar drilling mud densities were used. However, since competent formations without indications of lost circulation were observed while drilling the Cretaceous section in well 2, the decision was made to drill both stages (8 1/2 inches and 5 5/8 inches) in a single run, replicating this good practice in the upcoming well design for the development of Field A.
In Field A, the geological characterization allowed for the delimitation of the critical zone of high-pressure sand in the Miocene, identifying seismic reflectors and electric logs as control points. Consequently, in well 6 ST, following the influx event, the contingency liner of 113/4 inches was successfully set prior to entering this section. This prevented the recurrence of the influx, allowing drilling to continue according to the original program.
By identifying the influx zone in well 1B and with the collaboration of the entire geoscience team, the extent of highpressure sand was determined. This led to planning a directional trajectory in well 8, which enabled us to avoid the influx zone and achieve successful drilling. This approach prevented deviations in operations and optimized operation times by up to 50 days.
The continuous evaluation of drilling events and information from correlation wells within Field A allowed Opex Perforadora to identify areas of opportunity and operational risks. These areas have been mitigated through the implementation of safe operational practices and design reengineering to optimize costs and operational times. This translated into the early incorporation of wells into production.
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This text is an excerpt from the paper, Challenges and Deep Well Drilling Challenges in Field A in the Salina del Istmo Basin, authored by Alan Juárez Reyes and Vicente Josafat Sandoval Gutiérrez, which was presented at the 2023 edition of the Mexican Petroleum Congress. The full article in Spanish can be consulted here.
Alejandro Ciliberto
Deputy Director of Supply Chain | OPEX
Q: What strategic plans have you implemented at OPEX to optimize supply chain functionality?
A: During my tenure at OPEX, we have implemented a demand forecasting system to accurately predict customer demand. We focus on the development of contingency plans to mitigate risks and disruptions in the supply chain, such as alternative sourcing options or backup tools and services. In addition, we have a continuous improvement culture to identify and address inefficiencies in the supply chain. Nevertheless, our most important strategy is to develop strategic partnerships with key suppliers to ensure a reliable and efficient supply chain.
Q: What are the key challenges and opportunities for OPEX in the oil and gas industry’s supply chain management?
A: This supply chain management faces several challenges and opportunities that require strategic planning and proactive management. Some of the main challenges are volatility and uncertainty. The oil and gas industry is characterized by volatile demand and supply, price fluctuations, geopolitical risks, and environmental regulations. These factors create uncertainty in the supply chain, making it challenging to plan for inventory, transportation, and procurement. Some of the opportunities can be collaborations and partnerships. Collaboration between different stakeholders within the oil and gas industry can lead to improved supply chain performance. Partnerships with suppliers, logistics providers, and other industry players can enhance innovation, reduce costs, and improve sustainability.
Q: Which skills are needed to be successful in supply chain management?
A: In my experience in OPEX, I would say that the most important skills (but not the only ones) are the following:
+ Leadership: Effective leadership is important in supply chain management to motivate and guide team members toward achieving the organization’s goals.
+ Collaboration: Supply chain management requires collaboration with various stakeholders, so the ability to work effectively with others is essential.
+ Problem-solving: Supply chain management often involves dealing with unexpected challenges and disruptions, so the ability to identify problems and develop solutions is critical.
+ Communication: Effective communication is crucial in supply chain management, as it involves coordinating with various stakeholders across the supply chain, such as suppliers, manufacturers and distributors.
Q: At OPEX, how do you supervise and manage end-to-end supply chain operations?
A: Managing end-to-end supply chain operations in OPEX it is a challenging task that requires:
+ Establishing clear objectives: Define the goals and objectives of the supply chain operations, aligning them with the overall business strategy.
+ Developing a robust strategy: Create a comprehensive strategy that outlines the key processes, resources, and activities required to achieve the supply chain objectives.
+ Collaborating with stakeholders: Foster strong relationships and collaboration with suppliers, manufacturers, distributors, and other partners in the supply chain. Maintain open lines of communication to ensure smooth coordination, as well as addressing any issues that may arise.
+ Establishing performance metrics: Define key performance indicators (KPIs) to measure the performance of the supply chain operations. This may include metrics such as on-time delivery and order accuracy.
Q: How do you develop strong relationships with suppliers, vendors, and key stakeholders to ensure timely and cost-effective delivery of goods and services?
A: We maintain open and transparent communication channels with suppliers, vendors, and key stakeholders. OPEX also fosters a partnership mindset with suppliers and vendors that seeks to build mutually beneficial relationships, while understanding their needs and goals and working collaboratively to find win-win solutions. In addition, we regularly engage with suppliers, vendors, and key stakeholders through meetings, conferences, or site visits and involve suppliers and vendors in the planning process to ensure alignment of goals and expectations.
Q: What are today´s supply chain management trends in the oil and gas industry?
A: Some supply chain management trends include the emphasis on collaboration and partnerships across the supply chain, with a focus on building strong relationships with suppliers, vendors, and other stakeholders. Moreover, there is a need for enhanced supply chain visibility to improve decision-making, mitigate risks, and optimize operations, in addition to using data analytics to gain insights into supply chain performance, identify areas for improvement, and make data-driven decisions. These are just a few examples of the current supply chain management trends in the oil and gas industry. The specific trends may vary depending on the region, market conditions, and other factors.
Q: How does OPEX develop and maintain effective inventory management strategies that optimize stock levels and minimize carrying cost, while ensuring adequate supply?
A: This requires careful planning and continuous monitoring. Here are some steps that we follow at OPEX to optimize stock levels, minimize carrying costs, and ensure an adequate supply:
Demand forecasting: Utilize historical data and customer insights to forecast demand accurately. This helps in determining optimal stock levels and avoiding stockouts or excess inventory.
Supplier collaboration: Establish strong relationships with suppliers to ensure timely deliveries and accurate lead time information.
Continuous monitoring and improvement: Regularly review and analyze inventory performance metrics, such as
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stock turnover ratio, fill rate, and carrying costs. Identify inefficiencies or areas for improvement and implement continuous improvement initiatives to optimize inventory management strategies.
Just-in-time (JIT) approach: Implement JIT principles to minimize carrying costs by receiving inventory just when it is needed in the production process or for customer orders. This approach reduces holding costs and improves cash flow.
Q: How does OPEX select its suppliers?
A: Selecting suppliers requires a systematic approach that considers several factors. First, we define the selection criteria that will be most important, such as quality, delivery, price, lead time, capacity, and financial stability. Second, we conduct market research to identify potential suppliers that meet the selection criteria and send the request for a quote. Once we receive the proposals, we assess the performance of shortlisted suppliers based on their track record, references, and certifications. We then evaluate their quality management systems, delivery performance, customer service, and financial stability. Finally, we proceed with the negotiations of favorable terms with the selected supplier based on the evaluation results. Lastly, we discuss pricing, delivery schedules, payment terms, and other contractual terms to ensure a mutually beneficial agreement.
To ensure they meet the agreed-upon terms, we do a continuous monitoring of the performance of the selected supplier using established performance metrics, such as quality levels, lead times, and on-time delivery rates.
Q: What elements do you consider in fostering a culture of collaboration, innovation, and continuous improvement within the supply chain function?
A: We must establish a clear vision and goals and communicate them to the team, ensuring alignment and understanding, in addition to demonstrating leadership support and encouraging open and transparent communication. On the other hand, it is very important to encourage collaboration across different functions within the organization, such as procurement, logistics, operations, and finance.
Q: How do you stay up-to-date on industry trends, emerging technologies, and best practices?
A: To stay up-to-date, I personally attend conferences and industry events. These events provide opportunities to learn from industry experts, participate in panel discussions, and network with professionals in the field. I also have a strong collaboration with my peers where we engage in knowledge sharing and collaboration.
Q: What are your main responsibilities in the company?
JB: I oversee and supervise everything that is related to OPEX’s well drill cementing process — from the design of the cementing project, based on the conditions of each well, to procurement, supply and logistics of all necessary equipment, materials, supplies and personnel.
In addition, I collaborate with on-site supervision for the preparation and application of the cementing process, in accordance with the previously established programs. Lastly, I follow up on subsequent analyses, lessons learned, document preparation and deliverables.
AO: I am in charge of verifying that technical and administrative compliance meets the requirements indicated in the contracts with our principal client – PEMEX Exploration and Production.
Q. How did OPEX come about and how has it developed over the years?
AO: OPEX emerged as a joint venture between CME business group and the Norwegian company Borr Drilling. Its objective is to provide comprehensive well drilling and completion services.
In Mexico, we provide our services to PEMEX Exploration and Production. This administration has made it a priority to increase oil production in Mexico in an orderly and constant manner.
The first jack-up platforms operated by OPEX in the Gulf of Mexico were Galar, Gersemi, Grid and Njord. We also collaborate on various well drilling projects in shallow waters in the Gulf of Mexico.
OPEX has developed into an integrated oil-field service company that, in addition to its alliance with Borr Drilling, has partnered with global firms such as SLB, Halliburton, Weatherford, Baker Hughes and Tenaris Tamsa. These alliances have allowed OPEX to provide high-quality service standards, as well as safety and operational excellence.
OPEX has implemented a transversal strategy to strengthen its internal operations and key departments, such as HR, administration, and operations.
OPEX is part of a Mexican business group that has been in the market for more than 40 years. It has more than 3,500 employees, two land drilling rigs and nine jack-up drilling platforms, all belonging to the latest generation, in addition to 15 vessels, two maneuvering yards with more than 100,000m2 and comprehensive aerial logistics.
Q: What services does OPEX offer and what is its main mission?
JB: OPEX is an integrator of turnkey well design, engineering, procurement, drilling and completion services for onshore and offshore oil fields in shallow waters.
We have jack-up platforms, land drilling equipment and vessels. Our numerous partnerships with other companies that provide us with a wide range of solutions allows us to offer holistic solutions to clients in Mexico for hydrocarbon exploration and production projects, obtaining attractive profit margins, profitability, efficiency, and safety.
Our mission is to contribute to increasing hydrocarbon production in Mexico as well as the identification of proven oil and gas reserves with solutions that reduce execution times, which translate into significant savings for our clients.
Q: What is the make-up of OPEX’s comprehensive services for shallow water oil well drilling?
JB: The company collaborates in well drilling projects in shallow waters mainly in fields or deposits operated and managed by PEMEX, under the turnkey modality.
This contractual scheme provides multiple financial, administrative, logistical, and operational benefits for our clients. It allows establishing a line of command and direct responsibility that achieves drilling time and quality objectives, as well as incorporating, coordinating, and grouping all company efforts involved in drilling such wells.
Under turnkey contracts, OPEX has managed to drill wells at lower costs, in less time, with greater efficiency, contributing to advancing hydrocarbon production.
OPEX’s comprehensive services, combined with technical specifications, offer the knowledge, design, supervision, and execution involved in the drilling of wells. These include geosciences (geology and geomechanics), well design, directional drilling, drilling fluids, electrical records and, of course, cementation. In addition, the service includes development, management, and administration of well projects.
Q: What would you consider OPEX’s greatest achievements?
AO: OPEX has successfully drilled more than 55 shallow water wells. This has resulted in an increase in national oil production of more than 200,000 barrels per day in first oil.
Furthermore, together with PEMEX, we have reduced well drilling times. This has translated into economic and logistical benefits for the NOC, allowing the production of hydrocarbons to grow while reducing operating expenses related to the rental of drilling equipment or platforms, and increasing profitability margins.
For instance, at the M field, located off the coast of Tabasco, we have drilled a 3,745m well in record time. We drilled the M-3 well in 25 days, with non-productive times of only 0.88 days. This represents a record for Mexico and is an example of good operating practices that must be implemented in subsequent drilling projects.
OPEX has contributed to bringing anticipated production to Mexico’s hydrocarbon matrix in line with PEMEX Exploration and Production’s operational strategy. When we do our
work, we employ indicators and technical standards at international levels.
Q: How does OPEX comply with national and international safety standards?
JB: All OPEX activities rely on a foundation of security and compliance, as there are many documents, regulations and procedures that must be monitored and addressed by the company’s employees.
At OPEX, we believe there is no job that needs to be done so quickly that we cannot take the time to do it in a safe manner. OPEX has implemented a Health, Safety and Environmental policy (HSE) as well as risk management policies that aim to protect the health and well-being of our associates as well as preserving the safety of people and facilities.
Company policies and regulations protect personnel, assets, quality, and the environment. They are also based on national and international operational safety standards.
OPEX has made it a priority to become an incident-free company while maintaining strict policies that ensure the integrity of equipment and facilities. In addition, the company complies with local regulations.
Q: What is the biggest challenge OPEX has faced in recent years and what strategies or actions were implemented to overcome it?
AOT: The biggest challenge we have faced is compliance with our client’s technical and financial obligations, within a framework of profitability. To solve these challenges, the company has incorporated specialists and experienced personnel into all areas of the company.
Moreover, we have established alliances with leading companies in the oil industry, consolidated a robust organizational structure and implemented quality procedures and standards.
Q: OPEX has a pool of expert associates and scientists who write articles and do in-depth research on the services you offer. How do you attract this talent?
JB: OPEX´s main strength is human talent. It is essential to provide staff with adequate conditions so they can perform their designated functions.
Our leadership is strengthened by attracting talent, this means hiring professionals committed to take the lead and make things happen. The human factor is the most important feature of our organization. We have outlined a plan to attract experienced, qualified, committed, initiative-driven personnel with impeccable integrity.
Without a doubt, attracting excellent human capital is a priority for the company. For this reason, in recent years, OPEX has focused its efforts on establishing alliances with universities to identify, recruit and train the best oil and gas industry graduates.
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We have the best of the best talent pool on the market. In addition to university recruitment, we have vastly experienced candidates who have worked for recognized national and international companies.
Q: Where is Mexico´s oil and gas industry heading?
AO: Mexico is committed to achieving high hydrocarbon production. The projects established between PEMEX and private companies in the well drilling and completion process have allowed us to obtain optimal conditions to fulfill the commitment we have with our clients.
Undoubtedly, the drilling process for the extraction of hydrocarbons is becoming increasingly complex, especially in deep and ultra-deep waters or areas of high geological complexity, extended reach wells and reservoirs with heavy oils. For successful projects to happen, it is necessary to have specialized personnel, processes, procedures, and services that guarantee efficient, safe, profitable, and sustainable drilling and completion activities.
Mexico will continue with its strategy to reverse the decline of mature fields and increase the production of liquid hydrocarbons. This strategy contributes to the country’s energy self-sufficiency and is consistent with the expected growth in demand for hydrocarbons in the coming decades.
Mexico is an oil country that has large deposits and fields. The country’s resources in terrestrial fields, shallow waters and even deepwaters are extensive, and must be used responsibly, efficiently and safely.
QHSE | OPEX
Q: As QHSE subdirector at Opex, how would you define your role and main responsibilities?
A: My main objective is to lead a group of professionals at Opex and our partner service companies that are part of the QHSE culture. At Opex, we seek to implement efficient and sustainable processes to ensure that drilling and well completion operations are successful and meet our operational excellence standards. Our goal is to carry out each activity in a safe and timely manner, maintaining environmental responsibility while minimizing risks. Security is our most important corporate value, and it comprises the basis of Opex’s DNA. Moreover, planning and prevention are considered the starting points of our operations.
Q: One of your main priorities is to improve the environment and safety in the workplace while establishing more sustainable production processes. Could you explain these concepts?
A: Opex is known as a highly efficient well drilling and completion company that promotes HSE principles (health, safety, and environment). We have established processes and KPIs that help us operate sustainably and efficiently, as well as highlighting the capabilities of every person and company that collaborates in our projects. The Opex QHSE management system is defined as being effective, easy to implement and sustainable. We comply with the highest global standards of the oil and gas industry as well as with Mexico’s regulations. Effective communication is key so that processes are understood, implemented, and systematically executed. Leadership at all levels of the company is very important for us.
At Opex, a Communication Protocol has been officially established and it is backed by our president and general director. The objective of this protocol is to ensure effective coordination and a lean flow of information to keep with harmony our “Operational Excellence” with our HSE. The strategy and tactics that we are implementing at Opex seeks to ensure that our drilling and completion services are executed with the highest standards of efficiency and quality within the industry without compromise HSE.
Q: What techniques and international standards does Opex employ to identify potential hazards in the workplace?
A: We have developed a series of processes and controls that are aligned with international standards and techniques. For example, in health and safety, we employ preventive approaches, such as JSA (Job Safety Analysis), PTW (Permit to Work), SWA (Stop Work Authority), HARC (Hazard Analysis and Risk Control) and MoC (Management of Change). Regarding the environment, we are committed to reducing our greenhouse gas emissions in line with the 2015 Paris Agreement.
Recently, we started an evaluation and strategic planning to implement ESG (environmental, social and governance) criteria in our land and offshore operations. Additionally, for engineering projects and other operations, we have adopted standards such as Well Integrity (ISO 16530), IADC (International Association of Drilling Contractors) processes and indicators, API (American Petroleum Institute) and IWCF (International Well Control Forum) standards and controls.
Q: What type of training programs does Opex implement to ensure safe work environments?
A: We have an onboarding program for our new employees aimed at introducing them to Opex’s vision and corporate values. From day one, we want new recruits to assume a personal commitment to the values that guide our operations.
Moreover, every employee must complete training required by PEMEX in Safety, Health, and Environmental Protection. Work meetings at Opex always begin by reviewing safety protocols aimed at contributing to greater awareness and prevention techniques to offset the risks we face in our operations. Our priority is to avoid accidents. We collaborate with Opex’s human resources department to ensure, in a systematic and corporate manner, effective and assertive training programs.
Q: What has been your experience when developing and implementing QHSE policies?
A: It has been a great experience of which I am deeply proud. At Opex, QHSE principles are not just found in documents, they have become the basis of our corporate life and culture – Opex has a QHSE identity. Opex’s talented pool of partners can find help and support for their daily tasks in our QHSE processes and controls implemented in our project to ensure each activity is done safely and correctly.
Q: How does the company ensure that its employees are aware of and comply with its safety protocols?
A: One of the great challenges facing the oil and gas industry is ensuring that each person understand and apply systematically processes and controls. At Opex, we have an organizational structure that is focused on safety, health, and environment. Our safety guidelines for each well, on land and in marine fields, help people to know and understand controls to mitigate risks and avoid accidents. Our processes and controls are stablished to keep each person safe and with environmentally friendly operations. This is why they are mandatory, and everyone must follow and respect them. Ensuring that each partner and Opex´s people comply with our safety protocols is a daily task.
Q: What are the standards for occupational safety and operational quality at Opex?
A: Our HSE standards and controls are aligned to comply with the following: 1) Regulatory elements in Mexico, 2) Contractual elements in our projects and 3) Aspects referring to internal Opex controls. Regarding operational quality, we have established our Operational Excellence System aimed at complying with standards and indicators of quality assurance and operational performance.
Q: At Opex, there have been no incidents/accidents or spills. What do you attribute this to?
A: In this industry every activity involves risks. Be alert and preventive is a daily task in order to avoid accidents. We value five key points that have helped us operate safely:
1. Effective communication with strict adherence to processes and controls.
2. Effective supervision at all levels.
3. Personnel training for activities to be carried out.
4. Provide adequate resources and work tools in a timely manner for each operation.
5. Provide management engagement and employee empowerment.
Q: What strategies do you employ to ensure that QHSE procedures are followed?
A: Opex manages comprehensive projects that require working together with our partners to have HSE success in our projects achieving our objectives.
It is very important that we can count on the commitment of our employees and business partners to the project. Therefore, we have established a strategy called Back to Basics, where our 80% of attention is in planning and preparation to deliver flawless operations.
Implementing specific actions, where we preventively work on risk management tools, as well as the generation of daily risk identification cards. In addition, we have daily meetings at each well with on-site personnel. Likewise, we meet with our partners to ensure support, provide resources, and monitor people in assigned activities.
We have the initiative of “Stop Work Authority” where each employee is empowered by top management to stop any risky activity to think and take actions to continue in safety manner.
Q: What are the main risks associated with well drilling projects and what measures are taken to reduce them?
A: Currently, Opex has seven jack-up platforms and two onshore drilling rigs allowing it to drill up to nine wells simultaneously. This means that every day more than 5,000 people collaborate with Opex in 18,900 activities every month. These figures have allowed us to gauge the risk exposure involved in offering this well drilling and completion service. We face risks every day in every activity, and we must be smart and effective in identifying them in terms of severity and likelihood. To avoid overexposure, some of the main risks with high potential results and on which we focus our strategy are high-pressure jobs (up to 15,000 psi), logistics (land, sea, and air transport) and working at heights.
Also, important to highlight that there are risks from the use of chemicals, equipment, and machinery or from working in confined spaces that have only one entrance and one exit. Likewise, there are risks associated with hot surfaces and moving heavy objects or using explosives. In this industry, the use of cranes, forklifts and mechanical lifts is very common and carries greater risk exposure.
Therefore, given these risks, Opex is aware of its enormous responsibility to ensure that our operations are safe, sustainable, and reliable. We seek to mitigate or eliminate risk exposure through teamwork, preventive actions, planning and effective communication. For Opex, our people are the most important. The success of our projects depends on each of them. This is why having a clear understanding of human behavior is key to implement effective and accurate actions to achieve the right fundamentals in our processes and controls. Achieving a QHSE culture is a long road, in which we at Opex invest and work every day to get it.