In North Dakota, Wireline Isolation Scanner* cement evaluation technology was deployed for Zenergy in the Bakken shale play. Due to its unique flexural attenuation measurements, the Isolation Scanner service was able to clearly image the lightweight cement behind the well casing, overcoming the challenges faced by conventional technologies. In addition, the Isolation Scanner tool measured 72 radial ultrasonic thicknesses to quantify drill wear, leading to significant savings for the operator in terms of costly fracturing strings and remedial squeezes.

In Russia, Surgutneftegas has purchased licenses for SIS Petrel* E&P, GeoFrame* reservoir characterization, ECLIPSE* reservoir simulation and Techlog* wellbore software platforms, together with a three-year maintenance agreement. Surgutneftegas has been using SIS software since 1995, and decided to further adopt the SIS software platforms in its newly created Geology & Geophysics and Reservoir Engineering divisions in order to increase efficiency in E&P decision making, improve reserves recovery management, and optimize well intervention.

Drilling Group

Second-quarter revenue of $4.29 billion was up 4% sequentially and grew 8% year-on-year. Pretax operating income of $804 million was 10% higher sequentially, and increased 11% year-on-year.

Sequentially, revenue increased primarily on strong international and offshore activity for Drilling & Measurements and M-I SWACO Technologies, mainly in Russia and the Middle East & Asia Area. In addition, both Drilling & Measurements and M-I SWACO posted strong results in US land on higher activity, which was largely offset by the effect of the seasonal spring break-up in Western Canada.

Sequentially, pretax operating margin grew 97 bps to 18.7% from increased land activity for Drilling & Measurements in the US, Russia and the Middle East, and improved profitability on IPM projects in the Middle East and Latin America.

A number of Drilling Group technologies contributed to the second-quarter results.

In China, Drilling & Measurements technologies were deployed for PetroChina Tarim Oilfield Company to drill 20 wells in previously unexploited reservoirs in the Hade Field in the country’s western region known for its complex geology and challenging drilling environment. A combination of PowerDrive Archer high build rate rotary steerable, NeoScope* sourceless formation evaluation while drilling, PeriScope bed boundary mapper, and geoVISION* imaging-while-drilling technologies enabled the accurate placement of a well along thin target layers and avoided drilling into neighboring water zones. Despite the hard formation, the drilling technologies achieved the required build rate and increased both footage per run and rate of penetration. As a result, the overall drilling time from kickoff to total depth was reduced from 67 to 42 days. In addition, the average production tests for the first five wells drilled showed incremental production 50% above the operator’s target.

In Central China, in partnership with CNPC Chuanqing Drilling Engineering Company Limited, a subsidiary of China National Petroleum Corporation (CNPC), Schlumberger Drilling Group technologies were deployed on the Shell China Sichuan Project to drill pilot holes and horizontal wells in the Fushun shale gas block. Drilling & Measurements PowerDrive X6*, PowerDrive vorteX* and PowerDrive Archer rotary steerable technologies, combined with MicroScope* resistivity- and imaging-while-drilling and PeriScope bed boundary mapper technologies were used in drilling the curve and the horizontal sections. These integrated drilling services were enabled by ROPO* rate of penetration optimization and included Smith Spear* shale-optimized steel-body polycrystalline diamond compact (PDC) drill bits and M-I SWACO WELL COMMANDER* by-pass circulating technologies. A total of three horizontal shale gas wells have been drilled and completed, with all of them achieving Shell’s Best-In-Class & Top Quartile drilling performance. The well lateral sections were placed entirely in the reservoir sweet spots and without geological sidetracks to save the operator more than 54 days.

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