OIPA Well Control Insurance Program

Cudd Well Control Based in Houston, TX. –firefighting –blowouts –well control –well control engineering contingency planning rig inspections well plan reviews kick modeling relief well drilling risk assessment

Blowout Statistics Data on blowouts is "spotty" 1 in every 400 wells drilled has a serious well control event Blowout frequency has not changed through time Shallow wells and deep wells

Blowout Cost Well control experts are traditionally % of total blowout cost Numerous services needed for blowout intervention

Blowout Cost Direct Intervention Services –bulldozers –excavators –cranes –forklifts –fluid storage –vacuum trucks –high pressure pumping –kill fluids –wellhead equipment –rental tools –catering –security personnel –relief well –pollution clean up

Blowout Cost Indirect Costs –local evacuation –loss of product –administration costs –royalties –litigation –blowout recovery –well re-drill

Engineering Services Proactive pre-event –contingency planning –rig inspections –customized training –drilling plan review Reactive –well kill operations –consulting engineering

Well Control Engineering Emergency Preparedness contingency planning rig inspections well plan reviews kick modeling relief well planning risk assessment