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(4) Well casing and tubing, (other than structural or drive casing and high strength casing and tubing) and drill pipe shall be in accordance with the relevant requirements of API, Specification for Casing and Tubing, Spec. 5CT, and for drill pipe, Spec. 5D.
(5) High strength well casing and tubing shall be in accordance with the relevant requirements of API Specification for High Strength Casing and Tubing, Spec. 5CT.
(6) Wellhead equipment shall be in accordance with the relevant requirements of API Specification of Wellhead Equipment, Spec. 6A.
(7) Hoisting equipment shall be in accordance with the relevant requirements of API Specification for Drilling and Production Hoisting Equipment, Spec. 8A.
(8) The recommendations of API Recommended Practice for Hoisting Tool and Maintenance Procedures, RP 8B, shall be observed in the operation and maintenance of hoisting equipment.
(9) Wire rope shall be in accordance with the relevant requirements of API, Specification for Wire Rope, Spec. 9A.
(10) The recommendations of API, Recommended Practice for Application, Care and Use of Wire Rope for Oil Field Service, RP 9B, shall be observed in the operation and maintenance of wire rope.
120. Inspection of Drilling Equipment.
(1) In the case of the first well to be drilled or worked over by a unit in Papua New Guinea, the drilling or workover rig and associated equipment shall be inspected by a qualified inspection company, approved by the Director, and the subsequent inspection report shall be forwarded to the Chief Inspector for review.
(2) Any deficiencies in the equipment, as highlighted by inspection report under Subsection (1), shall be remedied prior to spud or start of operations on the well.
(3) Following the remedying of deficiencies, the rig and associated equipment shall be re-inspected and approved by a Petroleum Inspector appointed under the Act, prior to the commencement of drilling.
121. Casing of Wells.
(1) The design and placement of all casing strings shall take into account known or predicted formation characteristics and strength, temperature, known or predicted formation pore-fluid type and pressures, kick influx volumes, required anticipated maximum mud weights, estimated maximum circulating pressures formation fracture and propagation pressures, lost circulation and loads exerted by other casing strings, wellhead and blowout prevention equipment.
(2) The maximum performance properties used in the design of casing strings shall be those indicated as minimum performance properties in API Bulletin 5C2 on Performance Properties of Casing, Tubing and Drill Pipe.
(3) Where practical, surface casing (which is defined as that casing which is set subsequent to the conductor pipe or casing) shall be set 25m into a competent formation and sufficient casing shall be run to cover shallow aquifers, prevent the release of well fluids to the environment and be set at the approximate depth as set out in the approved program.
(4) All casing and liner strings shall be designed to withstand the maximum anticipated burst, collapse and tensile loads at the temperatures and wellbore environments expected to be encountered.
(5) Where a casing liner is run in a well, there shall be an overlap of at least 30m between the top of the liner and the shoe of the previously run string of casing.
122. Pressure Testing of Casing Strings.
(1) Prior to drilling the plug after cementing, all casing strings, except the conductor casing, shall be pressure tested to either 70% of the programmed design burst pressure or 70% of the manufacturer’s minimum internal yield pressure, whichever is lower, but no less than the pressures as shown in the following table:–
(2) A test under Subsection (1) shall not exceed the rated working pressure of the casing and well head equipment, and where the pressure declines more than 10% in 15 minutes, or where there is other indication of a leak, corrective measures shall be taken until a satisfactory test is obtained prior to drilling out the shoe.
(3) The results of a test under Subsection (1) shall be entered in the daily drilling report and the tour report.
(4) Casing recovered from a well shall not be reused in another well unless–
(a) it has been inspected in accordance with API RP 5C1, “Recommended Practice for Care and Use of Casing and Tubing”; and
(b) its physical characteristics established by such inspection ensure compliance with Subsection (1).
(5) Unless otherwise approved by the Director, a well completed to produce oil or gas or to inject any fluid shall have the annulus between the second casing string and the surface casing vented to atmosphere.
123. Cementing of Casing.
(1) The conductor and surface casings shall be cemented to surface or as indicated in the drilling program that has been approved by the Director.
(2) All ensuing casing strings shall be cemented with sufficient cement of sufficient compressive strength to ensure that all aquifers and zones containing movable hydrocarbons are competently covered and/or isolated by cement and that the top of cement is at least 150m above the cementing point.
(3) The overlap between a liner and the next larger casing previously set shall be cemented with sufficient cement to fill at least 30m of the annular space between the liner and the next larger casing, or the overlap is sealed in some other approved manner.
(4) If the cementing requirements of this section have not been achieved, the site person-in-charge shall meet those requirements by remedial cementing, unless otherwise approved by the Director.
(5) Drilling shall not be commenced until a time lapse of–
(a) 24 hours; or
(b) 8 hours under pressure for all other casing strings or until surface cement samples are set.
(6) For the purposes of Subsection (5), the cement is considered to be under pressure if it is restrained from movement by the use of float valves or surface valves in the casing string.
124. Formation Integrity Tests.
(1) Unless otherwise approved by the Director, a formation integrity test shall be conducted after drilling out the casing shoe of surface and intermediate casing strings to ensure well integrity during the subsequent drilling operations.
(2) The results of a test under Subsection (1) shall be reported in the daily report and entered on the tour report and where the result of a test requires that the drilling and casing programs previously approved by the Director be amended, any such amendments will be submitted to the Director for approval.
(1) Unless the prior approval of the Director has been obtained the site person-in-charge shall, where applicable, take, preserve and maintain a series of cutting samples of not less that 100g (dry weight) of the various formations which the drill penetrates in drilling the well, taken every 3m or at intervals as required by or approved by the Director.
(2) The samples referred to in Subsection (1) shall be washed, dried and packed, and labeled with the name of the well and interval of depth and shall be delivered as soon as practicable, but within one month of rig release, to the Director at the licensee’s expense.
(1) Cores shall be placed in core boxes, or other suitable containers, accurately labeled as to the well number, number of core, top and bottom of core, interval cored and percentage recovery of core and shall be suitably stored until delivered at the licensee’s expense, within one month of the date of completion of the well, to the Director.
(2) Where vertical splitting of a core is required by the Director, a continuous section comprising at least a half slice of the core will be provided, but otherwise the core shall be apportioned into representative sections.
(3) In either case referred to in Subsection (2), the core shall be divided as follows:–
(a) licensee–50%, if desired;
(4) Notwithstanding anything in Subsections (2) and (3), the licensee may retain all cores from productive intervals, potential or actual, providing that–
(a) the Director may, if he so desires, require that 25% of such cores be delivered to the Core Library of the Department of Petroleum and Energy; and
(b) the core retained by the licensee shall be used for reservoir or other allied investigations, and shall not be in any other way disposed of or destroyed; and
(c) all results of such investigations shall be reported promptly by the Person-in-Charge to the Director; and
(d) when the licensee desires to send such cores out of Papua New Guinea for any purpose whatsoever, he shall advise the Director of his intention so that the provisions of Paragraph (a) may be invoked.
127. Age Dating of Samples.
The licensee shall, as early as practicable, use his best endeavours to ascertain, by palaeontological, radiometric or other suitable means, the ages of all undated rocks penetrated by the well.
128. Fluid Samples.
(1) Recovery from formation tests shall, when practicable, be sampled in accordance with API RP44 “Recommended Practice for Sampling Petroleum Reservoir Fluids”.
(2) A sample under Subsection (1), shall be labeled and analyzed and liquid samples shall be preserved for at least six months.
(3) Analyses of a sample under Subsection (1) shall be forwarded to the Director as soon as possible.
(4) Where required by the Director, a one litre portion of each sample under Subsection (1), shall be forwarded to the Director suitably labeled as to well number, condition of well when sampled, date, productive interval, type of test, nature of sample and sampling point, and such samples shall be supplied in sealed containers that meet all appropriate regulations of the Civil Aviation Act 2000, Harbours Board Act 1963 and Inflammable Liquid Act 1953 for the product it contains and the form of transport of such sample.
129. Formation and Inflow Tests.
(1) The site person-in-charge shall make every reasonable effort to advise the Director of his intention to conduct a formation test or inflow test.
(2) The site person-in-charge shall notify the Director as soon as possible of the results of a formation test and shall not make public the results until the Director has been so notified.
(3) The site person-in-charge shall, where requested by the Director, supply to him as soon as possible, a copy of the relevant operational report, fluid recovery rates, choke sizes, pressure and temperature readings and pressure recorder charts for each drill stem test or other test taken at the well and an interpretation and analysis of the test.
130. Electric or Other Well Logs.
(1) The site person-in-charge shall, before a drilling well is cased (other than surface casing), completed, suspended or abandoned, ensure that a suite of open hole wire line logs, as considered necessary by the licensee and approved by the Director, is run and recorded.
(2) Cased hole logs for well evaluation, as required by the Director, shall be run and recorded.
(3) Copies, stable base transparencies, magnetic tapes or other digital log data of all logs run, and computer processed interpretive logs made, shall be dispatched forthwith to the Director.
131. Protection of Aquifers.
During operations on a well, every practical precaution shall be taken to prevent communication between, leakage from or pollution to aquifers that are or may be used for any purpose.
132. Abandonment Principles.
Where a well or portion of a well is to be abandoned, the following provisions shall be observed:–
(a) the operator shall submit an abandonment program to the Director and said program shall not be carried out prior to receiving approval from the Director;
(b) abandonment programs shall be designed so as to ensure zonal isolation of any or all aquifers, lost circulation zones and other zones capable of fluid production and the programs shall specifically address the prevention of inter-zonal pressure transfer, pressure transfer from formations to the wellbore or tubulars and operational safety;
(c) ghost holes shall be abandoned or isolated by use of cement plugs unless otherwise approved by the Director;
(d) abandonment plugs shall be tested for quality and placement as directed by the Director;
(e) a steel well marker plate, having the well name and operator’s name bead-welded onto it, shall be installed 2m above ground level and permanently affixed to the abandoned well equipment;
(f) where at some future time, in the opinion of the Director, the abandonment has proven to be ineffectual, the licensee at the time of abandonment, shall be operationally and financially responsible for rectifying the situation as directed by the Director.
133. Well Completion.
(1) A completed well shall be completed in such a manner as to allow measurement of pressure and temperature under static or dynamic well conditions.
(2) The surface equipment shall be provided with sampling connections.
(3) The Person-in-Charge of a well shall, on completion of such well, keep and make readily available to a Petroleum Inspector an accurate record of all subsurface equipment and junk in the well.
(4) Before opening a well to production or injection and after every major repair, recompletion or workover, the well head and christmas tree shall be adequately pressure tested and the flow line shall be inspected to ensure satisfactory makeup.
(5) All produced and injected fluids shall be through tubing unless prior approval is received from the Director.
134. Disposal of Produced Oil and Gas.
(1) All oil or gas, that is circulated out of, or produced from a well during a drilling, testing or repair operation and that is not flowed via the well’s flowline to a gathering facility, shall be flowed to a vented storage tank or flare on location.
(2) Clean up operations or testing of a well using temporary well site facilities may be continued during the hours of darkness subject to the condition where oil and gas are being produced together, they shall be flowed through a separator and the gas flowed to a flare.
(3) The flare referred to in Subsections (1) and (2), shall be equipped with a reliable, continuous ignition source.
135. Disposal of Other Liquid Waste.
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