Hpht Solutions Drilling And Evaluation

HPHT Solutions Baker Hughes - Drilling and Evaluation • Baker Hughes D&E HPHT Solutions • HPHT Case History • Research and Development Outlook Christian Liss – Wireline HPHT Segment Manager Dominic Dieseru – Wireline Applications and Product Line Manager Stephen Rounce – Wireline Customer Service Manager Ian Mansfield – Marketing Director Reservoir Evaluation HPHT Wells Summit 2011 - London, November 16th 2011 © 2011 Baker Hughes Incorporated. All Rights Reserved.

HPHT Frontier Markets • HPHT drilling & exploration is critical to access – Onshore Shale, long horizontals – Offshore Deep Water, Ultra deep water – Geothermal applications • Cost of developing these wells is high • Reliability of service & equipment critical! Performance Through Technology • Target extreme service requirements • Apply robust design - modeling & validation • Drive reliability - testing & qualification • Deliver research innovations in Metals, Sensors, Electronics, Elastomers 2

© 2009 Baker Hughes Incorporated. All Rights Reserved.

Cement

Wireline Logging

Liner Hanger

BHI

FES

DD

BHI

MWD

Reamers

BHI

Year

Operator

Well name

TVD [ft]

Location

2003

Shell

Shark

25,745

Sout Timbalier

2005

Chevron

Cadilac

24,795

Viosca Knoll

2005

Shell

Joseph

25,537

High Island 10

2006

ExxonMobil

Blackbeard

30,067

South Timbalier

BHI

BHI

2008

McMoRan

Blackbeard RE

32,997

South Timbalier

BHI

BHI

2009

BP

Will K

28,404

High Island

BHI

BHI

2009

McMoRan

Ammazzo

25,488 South Marsh Island

BHI

BHI

2009

McMoRan

Davy Jones

29,300 South Marsh Island

BHI

BHI

2010

Armstrong O&G

BP Fee

15,800*

Cameron Parish

BHI

BHI

BHI

2010

McMoRan

Blackbeard East 32,000*

South Timbalier

BHI

BHI

BHI

BHI

BHI

BHI

BHI

BHI

BHI

2011

McMoRan

Davy Jones Offset

30,700* South Marsh Island

BHI

BHI

BHI

BHI

BHI

BHI

BHI

BHI

BHI

2011

McMoRan

Lafitte Project

23,000*

BHI

BHI

BHI

BHI

BHI

BHI

BHI

BHI

BHI

Eugine Island

BHI

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BHI BHI

* ongoing at the creation time of the slide 3

Bits

Fluids

Gulf of Mexico – Expertise in Ultra-deep Gas Case History

BHI

BHI

BHI

BHI

BHI

BHI BHI

BHI BHI BHI

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BHI

BHI

BHI

BHI

BHI

BHI

BHI

BHI

BHI

BHI

BHI BHI

Drilling Services HPHT Challenges & Solutions

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Circulating vs. Static Temperature During drilling • Bottom hole = circulating =

operating • Typical decrease: 5-50°C • Parameters

• Mud coolers • Hole size • Depth • Orientation • Flow rate • Drill string rotation • Cooler → Deeper 5

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HPHT Drilling Services Available X-tremeBorehole Motors Temperature OnTrak

OnTrak

AutoTrak

AutoTrak

LithoTrak

LithoTrak

TesTrak

TesTrak

SoundTrak

SoundTrak

MagTrak

MagTrak

ZoneTrak G/R

ZoneTrak G/R

StarTrak

StarTrak

SeismicTrak

SeismicTrak

0

6

X-tremeBorehole Motors

Rating

5

10

15 20 Pressure [kpsi]

© 2009 Baker Hughes Incorporated. All Rights Reserved.

25

30

35

0

25

50

Temperature Rating

75 100 125 Temperature [°C]

150

175

200

HPHT by Design - Development

7

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Minimizing Operating Days in High-Temperature Drilling in Haynesville Shale Case History

Objectives • Zero HS&E incidents • Identify zone of interest • Minimize operating days while drilling in HT environment reaching 343°F (172°C)

Days vs. Depth 11500 12000 12500 6 3/4" Curve 13000 13500

MEASURED DEPTH (ft)

Well Data • USA, Louisiana, Bossier Parish, 2009 • Hole Size: 6¾-in. • Well Type: Horizontal • Formation: Haynesville Shale • Planned Dogleg: 9°/100 ft • Mud Type: 15 ppg OBM

14000 6 3/4" Late ral 14500 15000 15500 16000 16500 17000 17500 18000 0

5

10 DAYS O N JO B

Solution • Service personnel trained in HT operations • High-temperature operating procedures • High-temperature MWD service Results • Zero HS&E incidents • Identified and successfully placed well into zone of interest • Completed drilling in 18 days • Drilled 6¾-in. curve (1,064 ft) with net ROP of 11 ft/hr • Drilled 6¾-in. lateral (4,435 ft) with net ROP of 39 ft/hr 8

© 2009 Baker Hughes Incorporated. All Rights Reserved.

15

20

SoundTrak™ Acoustic for PPP application Case History Determining accurate subsalt pore pressure in real time

 Low sensitivity to hole sizes, formation

Acoustic pore pressure

Measured pressures

Modeled Fracture gradients

9

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temperature and pore water salinity  Small effect on measurement around salt  No false indication of pore pressure sometimes seen with resistivity around salt because of changes in formation salinity  Correlation with seismic surveys  Characterization of rock mechanical properties for wellbore stability and completion analysis  Calibrate seismic velocities for look ahead predictions

SeismicTrak Service adds value to PPP

• • • • •

•

damage or effects Real time updates of time-depth profile Reduces uncertainties in surface seismic Place bit on surface seismic Look below the bit for pressure ramp detection Estimate distance to overpressured zone to predict and mitigate pressure kicks Reduce drilling hazards and NPT

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500m 200ms

• Seismic data from surface • Not affected by near wellbore

Drilling Fluids

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Keys To Success • Experience

– Have serviced more than 200wells >400ºF – Dominate provider to the extreme HPHT segment • Capturing Lessons Learned & incorporating into CPI

– Have extensive list of Lessons Learned/Best Practices • HPHT Laboratory capability, to include Specialized Equipment

– Have 3 strategically positioned Global labs with capability – Houston, Aberdeen & Kuala Lumpur

Keys To Success • Invert Emulsion Fluid for extreme conditions

– MAGMA-TEQ has proven track record – System is stable at BHT +600°F (316ºC). • Aqueous Fluid (Primary or Contingency)

– PYRO-DRILL also a proven track record – System is stable to ≥550°F (288ºC). • Sophisticated modeling capability

– – – –

Temperature - Presmod Hydraulics – ADVANTAGE Engineering Bridging – BRIDGE-WISE Down hole stresses – BORE-WISE

Drilling of 4 uHPHT wells from a Heavy Duty Jack Up with

Magma-Teq System Drilling Fluids Specification Process • Well conditions were a step change away from clients conventional North Sea wells. • Mud was required to be stable at up to 428°F and 18.5 ppg • BHDF selected with Magma-Teq system to provide HPHT fluids for UK and Norway

• A multinational drilling fluids development team was created to further refine the design of the drilling fluids for the uHPHT wells campaign:

– Problem identification, – Laboratory programs per well and – Chemical selection to optimize reuse. 14

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Case History System Performance in the Field • Bottom hole static temperatures were seen up to 395°F • Circulating temperatures were between 275°F and 376°F • BHP about 17,500 psi • The system was stable under the conditions encountered in the wells • The rheology was stable and controllable over long periods of time and despite extended fishing/pipe recovery operations • No significant fluctuations in fluid density after prolonged static periods • No dynamic sag despite relatively low circulation rates

Drilling of 4 uHPHT wells from a Heavy Duty Jack Up with

Magma-Teq System Optimization of Fluid cost and inventory • Objective: Utilize fluid on more than one well • 2,653 bbls from first well used for second well • 2,162 bbls from second well used for third well • 1,100 bbls added as possibility of losses occurred • 3000 bbls returned from third well to be reused Summary • Mud system was stable under conditions in all three wells • Negligible NPT caused by mud system • Rheology was stable and controllable despite extended section times • No significant fluctuations in fluid density after prolonged static periods • No dynamic sag despite relatively low circ. rates • Successful system on all three wells allowed optimization of cost and volume control

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Case History

The Magma-Teq System • A high temp. invert emulsion mud weighted with a mixture of Barite and Micromax • Micromax is Manganese Tetraoxide with very fine particle size d50 < 1μ • Base oil initially Escaid 120, latterly EDC99DW • Robust Emulsifier package • Specialized HPHT fluid loss additives • Premium Organophilic clay

PYRO-DRILL • KTB project - Ultra Deep HT Scientific drilling project in Germany. • Performed laboratory evaluations and presented Fluids recommendations to KTB. • Assisted at location with the conversion of an existing major competitor’s drilling fluid at 23,623’ (7200m) to a PYRO-DRILL geothermal drilling fluid (referred to as the KTB-HT system). • Provided technical assistance and support for remainder of the operation. • Total depth of the hole was 29,860’ (9101m) with a BHT of 482oF (250ºC) and 12.5 ppg MW

Advantages • Far lower gas solubility - immediate and apparent influx detection • Losses easier to manage • Superior HS&E - rig pit room/shakers areas • Environmentally more benign • Simpler waste management • Lower ESD and ECD, less tendency to generate fracturing • Much higher specific heat • Low compressibility - PVT non-issue • Simpler logistics, can be made up on site • Lower solids volume in fluid - higher base fluid densities • Multiple make-up brine options Disadvantages (versus oil mud) • Treatment of high concentrations of CO2 & H2S • Potential for formation stability issues • Potential for rheological instability (contamination)

Wireline Services

17

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Nautilus Ultra (HPHT) • Rugged construction

Nautilus UltraTM Open Hole 500°F and 30kpsi Cross-Dipole (XMAC-F1)

• Durability at extreme

temperatures lowers NPT • Superior sensors provide accurate data to aid reserve estimation • Unique provider of HT crossdipole logging services

Induction Resistivity (HDIL) Formation Evaluation

Porosity (CN) Density (CDL) Natural Gamma Ray (GR/SL) Borehole Geomety (XZ-Cal)

Nautilus UltraTM Cased Hole 500°F and 35kpsi Formation Evaluation

RPM Service pulsed neutron Formation evaluation in cased holes Production logging and water velocity determination Mineralogy behind casing

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© 2011 Baker Hughes Incorporated. All Rights Reserved.

HPHT Wireline Services Available Borehole Open Hole FE

Temperature Rating

Cross Dipole

Cross Dipole

Acoustic Imaging

Acoustic Imaging

Formation Coring

Formation Coring

Formation Testing/Sampling

Formation Testing/Sampling

Resistivity Imaging

Resistivity Imaging

Cased Hole FE

Cased Hole FE

Production Logging

Production Logging

Cement Evaluation

Cement Evaluation

Pipe Recovery

Pipe Recovery

0

19

Borehole Open Hole FE

Temperature Rating

5

10

15 20 Pressure [kpsi]

© 2009 Baker Hughes Incorporated. All Rights Reserved.

25

30

35

0

100

200 300 400 Temperature [°F]

500

600

HPHT Solutions: Deployment Risk Reduction

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© 2009 Baker Hughes Incorporated. All Rights Reserved.

World Wide HPHT Fields Above 150°C BHT and 690bar surface pressure

Nautilus Ultra 5 Year Job History

Oregon 246 DegC

Nautilus Ultra

Job History

#Jobs above 350°F

100+

Max. BHT:

474°F

Max. BHP:

29,000 psi

Max in-hole time:

50+ Hours

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© 2009 Baker Hughes Incorporated. All Rights Reserved.

Cooper Basin 243 DegC, 843 Bar

Devon 233 DegC, 1447 Bar

Cadillac 222 DegC, 1591 Bar

HPHT Pressure Testing and Fluid Sampling Objectives 1. Accurate formation pressures 2. Representative formation samples 3. Safe and efficient operation

Challenges • High Temperature – up to 388°F • High Tension – well depth of 5000m • Highly Depleted – pressure overbalance up to 8000 psi

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HPHT Pressure Testing and Fluid Sampling Solution DRM (Deployment Risk Management) recommendations • High strength HPHT cable • crush resistant HPHT wireline

• Derrick installed Capstan • Friction Reducing Stand-offs • Flywheels • Ultra slim profile standoffs

24

© 2011 Baker Hughes Incorporated. All Rights Reserved.

HPHT Pressure Testing and Fluid Sampling Solution Deploy RCX (Reservoir Characterisation eXplorer) • Prepared and tested for HT conditions • Fitted with Flywheels to mitigate the risk of sticking during testing/sampling • Fitted with 10kpsi differential pumps • Single Phase I & Single Phase II tanks designed for HPHT

25

© 2011 Baker Hughes Incorporated. All Rights Reserved.

HPHT Pressure Testing and Fluid Sampling Results: Effective Wireline Deployment plan resulted in zero NPT Pressures (Max Temp 363°F) • Acquired 100% of formation pressures tests requested – Max overbalance on pressure tests: 7000+ psi

Samples (Max Temp 388°F) • 3 Sample stations completed successfully – Up to 2hrs 10mins pumping at one station – Overbalance of 5000 psi differential

• PVT quality/quantity samples • First ever single phase downhole sample from this field 26

© 2011 Baker Hughes Incorporated. All Rights Reserved.

Geothermal Well, Australia

Case History

Objectives • Locate fractures within the wellbore • Safe Operation Challenges • BHT ~ 470°F (243°C) • TD ~ 16,000 ft

Solution • Nautilus Ultra Logging Suite w/ XMAC F1 Results • Successful Wireline conveyed run • Fractures interpreted from Cross-Dipole analysis

Research & Development

31

© 2009 Baker Hughes Incorporated. All Rights Reserved.

Component Reliability: Exponential Decline • Current specifications: 150°C • Arrhenius equation (reaction rate): 10°C ↑ = 50% ↓ component life

Svante Arrhenius

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© 2009 Baker Hughes Incorporated. All Rights Reserved.

Electronics: It’s easier to go to the moon. Operating Temperature Specification

Consumer

Industrial

Military & Space

Oil & Gas

33

-20°C

-25°C

Inspections

Tests

70°C

Assembled Parts

Final Test @ Room Temp

70°C

IPC-A-610: Class 1/2 Sample probe

Sub Assy @ Room Temp

-40°C

-20°C

© 2009 Baker Hughes Incorporated. All Rights Reserved.

IPC-A-610: Class 3 Sample probe

125°C

175°C+

IPC-A-610: Class 3 each solder

Sub Assy @ High Temp Final Test @ Room Temp Sub Assy @ High Temp Final Test @ Room Temp

Design for Reliability: Analyze, Test, Validate Model

Analyze • Mission profiling (thermal & mechanical stresses) • Component selection • Process optimization

Test • Lab qualifications – Component – Board – System

Validate • Root cause analysis • Optimization • Field performance

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Analyze, Design & Model

Test & Qualify

Lab

Validate & Improve

Field

Validation, Testing & Qualification Celle Technology Center

Woodlands Technology Center

Houston Technology Center

Electronics Design Innovation

Drilling Simulator & Drilling Dynamics Simulation

Model Testing & Verification

Beta Test Rig Oklahoma

Model Testing & Verification

Field Testing & Systems Integration Testing

35

HT Electronics Challenges – <175oC Operating IC’s onPCB)

175oC Approach – Pushing Reliability with

Today’s Technology

•Optimize PCB board layout for IC cooling •Increase solder resistance to creep

Thermal Flow - IC’s on PCB

•Thermal management • Move heat away from effected components (Passive/Forced) • Flask PCB’s ( from external thermal loads)

•Pre & Post Mfg Component & System Screening • Thermally cycle parts to find early failures

Steps (hrs) © 2009 Baker Hughes Incorporated. All Rights Reserved.

Heat Conduction from IC’s

Beyond 175°C: Enabling Technologies Packaging & components • Bare dies vs. plastic packaged components • Bonded vs. soldered connections

&

Active cooling • Memory, DSPs, etc. • Sensors Materials • Corrosion • Sealing 38

© 2011 Baker Hughes Incorporated. All Rights Reserved.

=

Extending Survivability - Packaging Passive Circuit Cooling

Wireline Today • Passive thermal “cooling” • Thermal insulation & flasking Tomorrow • More Hybrids & More active cooling

LWD Today • Vibration damping • Passive thermal “cooling” Tomorrow • More Hybrids & More active cooling

Composite Clam-Shell Top

Component Cavity Viscoelastic pad Composite Clam-Shell Bottom

Technology Investment – Infrastructure New Sensor (HT) Development Lab, Houston

Hybrid Electronics Lab, Germany

Finish Fall 2011

Finished 2009

• Over $20M in infrastructure investment in HPHT • Electronics design, testing and qualifications;

Data Acquisition, Mfg Automation IC failure analysis; X-Ray, Ultrasonic, elemental analysis, Thermal imaging diagnostics Simultaneous Ovens & Shaker Tables, Test chambers, Pressure Pits (375C, 40K)

41

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People

Houston, Texas

Celle, Germany

42

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Houston, Texas

Houston, Texas

Information Technology: Transforming Operations

43

© 2011 Baker Hughes Incorporated. All Rights Reserved.

Summary

44

© 2009 Baker Hughes Incorporated. All Rights Reserved.

BHI High Temperature R&D Capabilities • People – 100+ engineers on 40+ HT projects – Center of Excellence & HT Materials Department – Leading consultants, Universities, Government labs

• Solutions & Practices – – – –

30 years experience in flask design, fabrication, testing Real Time Temp. monitoring of critical components. Well developed HALT & HASS testing programs Specific standards, processes and component database

• Facilities – Specialized HT labs on Hybrids, Cooling, Fluids, Acoustic, NMR, Resistivity, Nuclear, Optics. – Testing up to 700F, 40ksi. 100+ HT ovens – IC analysis, X-Ray, Ultrasonic, Elemental, Thermal imaging.

• Suppliers and Partners – Industry wide HT contacts and partnerships on advanced components, IC, DSP, Sensor, PCB and proprietary soldering. 45

© 2009 Baker Hughes Incorporated. All Rights Reserved.

Solutions on the Market … for all aspects of D&E • Drill Bits, • Directional Services, • MWD/LWD Services, • Drilling Fluids • Open Hole Wireline Services • Cased Hole Wireline Services Solutions include • Deployment Risk Reduction • Planning, Simulation and Testing • Proven Processes, Procedures and Talent

46

© 2009 Baker Hughes Incorporated. All Rights Reserved.

Evolving the Portfolio • Additional Services and Technology • Fit for Purpose HT-Systems for extreme service specifications – Design for Reliability Focus in Design, Modeling, Testing & Qualification – Deliver Research Innovations in Materials, Sensors, Electronics, Nano-Structures and Manufacturing

Comments/Questions

47 © 2009 Baker Hughes Incorporated. All Rights Reserved.