Adco makes major savings with Shell drilling technique

The Abu Dhabi Co for Onshore Oil Operations (Adco) has saved more than $6 million and 200 drilling days from 1999 to end-2000 after adopting the Shell group's "drilling the limit" technique.

With the new technique Adco can drill three additional wells a year with each rig. Abdul Munim Al Kindy, deputy general manager of operations, said the greatest improvement Adco has seen is in the drilling of vertical oil wells in which drilling time has been cut from 30 days to less than 15, generating a savings in time of 51 per cent and a cost savings of 23 per cent.

Adco has nine drilling rigs and previously each could drill eight wells a year. With the introduction of the "drilling the Limit" technique, the company can drill three more wells a year with each rig, an increase of 27 wells a year.

"Shell has been very supportive by providing us with experts from Shell Technology E&P to implement the process. They have also provided training for our staff," Al Kindy said. He said the new technique will also be used in other Adnoc operating units. "Adnoc has backed this initiative and has made it all possible."

Adco intends to apply the technique to all its drilling operations. "We are now identifying additional resources required to carry this out and are examining the impact that the technique will have on our overall business plan," Al Kindy said.

In its first experience with the new technique, Adco obtained 45 per cent improvement in the time it took to drill a well and this resulted in enormous savings, he added. Shell has a 9.5 per cent stake in Adco.