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Weatherford’s Managed Pressure Drilling (MPD) Services

Drilling

Evaluation

Drilling hazard mitigation

Completion

Drilling-with-casing (DwC™) systems

More Productive Drilling

Secure Drilling services Air drilling Downhole tools Fluid systems Managed pressure drilling Pressure-control equipment Underbalanced drilling

Leverage Weatherford’s extensive portfolio of MPD equipment and associated expertise to maximize control of your wellbore’s pressure profile, mitigate multiple drilling hazards, and ultimately make otherwise undrillable prospects drillable.

SM

SM

Production

Intervention

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Solid expandable systems

Nearly half of all drilling hazards are related to wellbore pressure. Weatherford’s MPD services can help you beat the odds. As the oilfield services industry’s largest global provider of MPD services, we offer more technology, expertise and real results.

More technology. Recognizing the value of MPD

as a powerful drilling hazard mitigation technique, we began amassing the essential tools of the trade more than 40 years ago. Today our expansive portfolio of MPD equipmentthe world’s largestranges from rotating control devices (RCDs) to a state-of-the-art Microflux™ control system.

More expertise. Drawing on our collective MPD

experience and specialized training, our global team of highly skilled MPD specialists lend critical expertise to your drilling operations.

More real results. Since 1968, we have been

providing MPD support to clients for drilling operations throughout the world. Among other benefits, our services have minimized nonproductive time and ended detrimental kick/loss cycles. And in some cases, we have made undrillable prospects drillable.

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© 2005-2010 Weatherford. All rights reserved.

Weatherford’s Managed Pressure Drilling (MPD) Services

Nonpressure related events

Kick 9%

Shallow Water Flow 3%

Lost Circulation 13%

More than 40 percent of all drilling hazards relate to wellbore pressure. MPD presents a highly effective means to mitigating such hazards. K. James y an mp Co son Dod

Sloughing Shale 3%

Stuck Pipe 11%

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Twist Off 3%

MPD = More Productive DrillingSM

MPD benefits include:

An acronym for managed pressure drilling, MPD could easily stand for “more productive drilling.” Our MPD services can help you mitigate pressurerelated drilling hazards (such as kicks and fluid loss), maximize drilling efficiency, and make otherwise undrillable wells drillable. The technique entails the use of specialized equipment to control the wellbore pressure profile more precisely than allowed by conventional drilling methods.

• Effectively mitigates drilling hazards, such as differential sticking, fluid loss, kicks, lost circulation and nuisance gas zones

• Optimizes rate of penetration (ROP) and prolongs bit life, cutting the number of trips and reducing nonproductive time (NPT) to enhance drilling efficiency

• Reduces the number of casing strings relative to conventional drilling techniques and in some cases, deepening casing set points

• Minimizes health, safety and environmental (HSE) risks • Enables the drilling of otherwise undrillable wells

© 2005-2010 Weatherford. All rights reserved.

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Defining MPD MPD entails the use of an RCD, a choke-manifold system and other equipment to achieve precise control of a wellbore’s pressure profile while drilling. Common MPD drilling techniques include detection and management, constant bottomhole pressure (CBHP), pressurized mud-cap drilling (PMCD), and dual gradient.

Rotating control device Main flowline

Trip-tank fill up

Microflux™ control manifold

Shale shakers

Gas to vent

Mud gas separator

Trip tank

Rig choke manifold Trip-tank pump

Managed pressure drilling: An adaptive drilling process used to precisely control the annular pressure profile throughout the wellbore. The objectives are to ascertain the downhole-pressure-environment limits and to manage the annular hydraulic pressure profile accordingly. It is the intention of MPD to avoid continuous influx of formation fluids to the surface. Any influx incidental to the operation will be safely contained using an appropriate process. ▪▪ MPD process employs a collection of tools and techniques which may mitigate the risks and costs associated with drilling wells that have narrow downhole environmental limits, by proactively managing the annular hydraulic pressure profile. ▪▪ MPD may include control of backpressure, fluid density, fluid rheology, annular fluid level, circulating friction, and hole geometry, or combinations thereof.

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© 2005-2010 Weatherford. All rights reserved.

▪▪ MPD may allow faster corrective action to deal with observed pressure variations. The ability to dynamically control annular pressures facilitates drilling of what might otherwise be economically unattainable prospects. International Association of Drilling Contractors (IADC) Underbalanced Operations and Managed Pressure Drilling Committee

Weatherford’s Managed Pressure Drilling (MPD) Services

Variant

Detection and management

Objective

Enhance wellsite safety when drilling with hazardous fluids through unknown geopressure zones or in formations with high concentrations of toxic gases, such as hydrogen sulfide (H2S).

How it works

Detection and management practices minimize the risk of well-control incidents when drilling with hazardous fluids or in formations with high concentrations of toxic gases—a risk exacerbated by a narrow, pore-pressure/fracture-gradient window. These techniques incorporate the use of a closed-loop, mud-return, handling system (as opposed to more conventional open-air systems) on the rig floor to ensure that all annular fluid returns are contained. Its key components include an RCD (positioned above the blowout preventer), drillstring floats and a dedicated choke.

Variant

Constant bottomhole pressure drilling

Objective

Eliminate kick/loss cycles when a formation’s fracture gradient approximates its pore pressure— a common scenario on deep wells.

How it works

Achieved with an RCD and an additional control choke, CBHP drilling enables operators to maintain a precise balance between pore pressure and fracture gradient—even when pumping stops—without the use of heavier-than-optimal drilling fluids. The capability to quickly change equivalent mud weight and maintain optimal equivalent mud density ends problematic kick/loss cycles.

Variant

Pressurized mud-cap drilling

Objective

Minimize mud losses and associated NPT when drilling in highly depleted zones or formations with large voids, such as caverns.

How it works

Heavy, viscous mud is pumped down the annulus, where it acts as a cap on the well and keeps fluids from escaping. A second lightweight, ‘sacrificial’ drilling fluid, such as seawater, is used to continue drilling. The lighter fluid enhances drilling efficiency. Also, PMCD techniques trap fluid and cuttings beneath the surface—eliminating the need to dispose of them, preventing dangerous gases from reaching the wellsite, and, in many cases, helping to stabilize the formation.

Variant

Dual-gradient drilling

Objective

Reduce the risk of formation damage and related fluid losses when drilling in deep formations with low-fracture gradients, while eliminating the need to change mud density.

How it works

Typically, a second light-weight fluid (such as nitrogen) is injected into the annulus with a parasite string or concentric casing (land), or a marine riser (offshore). As the light fluid rises, it takes heavy mud with it, reducing the total weight of the mud in the annular column. Ideally suited for deepwater drilling, this technique tricks the wellbore into thinking the rig is closer than it is by removing some of the hydrostatic head pressure that would otherwise result from heavy mud and cuttings in the annulus returns. In addition to minimizing formation damage, dual-gradient drilling eliminates the need for frequent mud-density adjustments, a more conventional technique that results in flat time.

© 2005-2010 Weatherford. All rights reserved.

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More technology Through acquisitions and experience-driven research and development, we have built the largest MPD product selection in the oilfield services industry. With such a breadth of equipment and built-for-purpose systems, we are positioned to meet your MPD needs in virtually any drilling conditions, onshore and offshore. Our MPD portfolio includes surface and subsea RCDs, specialized drilling fluids, and a revolutionary Microflux™ control system that enables real-time detection of minute downhole influxes and losses.

Rotating control devices. Used in mudreturn systems to contain annular fluids during drilling operations, RCDs are key enablers of MPD techniques. They make underbalanced, near-balanced or overbalanced drilling possible when facing an elevated risk of gas kicks. We offer a broad selection of RCDs, many of which have been engineered for specific conditions. For example, we offer the built-for-purpose SeaShield™ marine series for offshore drilling environments, and the SafeShield™ land series for virtually any onshore application.

DDV® downhole deployment valve. Our innovative DDV system—a casing-deployed, downhole-pressure, isolation device—removes the need to place a viscous plug and enables maximum tripping speeds without the risk of swabbing. This process reduces tripping times and greatly enhances safety on MPD operations.

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© 2005-2010 Weatherford. All rights reserved.

Advanced Microflux control system. This revolutionary system represents a major step change in MPD technology. It enables the real-time measurement and analysis of flow and pressure data with an unprecedented degree of precision, enabling rapid detection—and consequently minimization—of kick and fluid loss on MPD operations. The fully automated system is driven by proprietary algorithms, which enable precise wellbore pressure profile management.

Weatherford’s Managed Pressure Drilling (MPD) Services

Gateway™ wirelineretrievable, nonreturn valve. Our flapper-style, drill-float valve is designed to manage backpressure in the drillstring on MPD operations. Unlike a fixedfloat valve, the Gateway valve can be changed out or removed on wireline, eliminating the need to trip pipe, thus enhancing operational efficiency and safety.

Drilling fluids. The success of an MPD operation is highly contingent on the use of appropriate drilling fluids, the applications of which include maintaining wellbore stability, minimizing corrosion and effectively removing cuttings. We offer a wide selection of drilling fluids and chemicals, as well as compatible delivery systems. Our portfolio includes specialized fluids suited for MPD operations in a range of drilling environments.

Surface separation equipment. MPD techniques

Nitrogen-generation and compression equipment. We offer

do not invite an influx of hydrocarbons, per se; however, some operations may require the use of surface-separation equipment beyond a rig’s existing capacity. We can supply two- and four-phase systems for both onshore and offshore operations.

a wide selection of nitrogen-generation and compression equipment, used on MPD operations to lighten drilling mud and annular fluids.

Removing nitrogen from air

© 2005-2010 Weatherford. All rights reserved.

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More expertise We draw on decades of experience, extensive internal training and our breadth of capabilities to provide you with the value-added expertise so critical to the success of your MPD operations.

Planning for success Offshore Deep-Gas Project Days vs. Depth 0

20

40

60

80

100

120

We use a basic, three-step process to develop and implement MPD strategies that fulfill client objectives:

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0 Conventional MPD Conventional Cumulative Days: 143.938 to 27000 ft

2000 4000 6000

Evaluate. Drawing on multiple resources, including our SURE™ well candidate selection software, we develop a thorough understanding of your reservoir and your objectives.

MPD Cumulative Days: 117.550 to 27000 ft

8000 10000 12000

Engineer. Using data we obtained during the evaluation phase, we work with you to develop a comprehensive strategy, which includes the MPD techniques and equipment to be used. This up-front planning is critical to the success of your MPD operation.

14000 16000 18000 20000 22000 24000 26000

Execute. We provide wellsite support throughout your MPD operation. We can also leverage our vast network of subject matter experts in other disciplines, as needed.

Cost Distribution

Mean = 38M USD

Mean = 47M USD

MPD Cost 25

30

OBD Cost

35

40

45

50

One element of the evaluation phase may include our SURE™ well candidate selection process. This proprietary software package helps quantify the benefits of using MPD techniques on a given well. The comprehensive application can also be used to evaluate the merits of similar drilling methods, such as underbalanced and air drilling.

Weatherford MPD Milestones

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1968

1998

1999

Added rotating control device—a key MPD enabler—to product portfolio

Began expanding selection of MPD equipment through acquisition and internal development and providing MPD support services

Developed DDV downhole deployment valve

© 2005-2010 Weatherford. All rights reserved.

®

2000

2003

Launched a QHSE management system designed explicitly for MPD and related services

Launched SURE well candidate selection software and process, used to assess reservoir suitability for MPD and related services

Weatherford’s Managed Pressure Drilling (MPD) Services

Building a knowledge base With years of MPD experience, we bring valuable lessons from previous jobs to each new operation. A robust performance tracking system helps us identify best practices. Our field experience has heavily influenced our MPD product-development focus on built-for-purpose systems.

Combining depth and breadth Weatherford combines depth of MPD expertise with a breadth of capabilities that spans the life cycle of a well—drilling, evaluation, completion, production and intervention. Positioned to provide holistic solutions to your operational challenges, we routinely engage subject matter experts in a range of complementary disciplines on MPD operations.

Cultivating expertise through training We provide our MPD specialists with extensive training to complement their field experience and to ensure that they are well versed on our products and services, as well as the latest MPD and drilling hazard mitigation techniques. We also use a competence assurance program to evaluate the skills of our MPD specialists on a routine basis. Our global network of training facilities includes dedicated MPD training centers that are equipped to simulate field environments.

Enabling third-party operators and rig contractors As a major oilfield services provider, we have adopted a highly collaborative approach to doing business. In line with that philosophy, we offer specialized MPD training to third-party operators and rig contractors. We can provide the training— which covers MPD techniques, as well as proper use of our equipment—at client sites or at one of our facilities.

2004

2007

2008

2009

2010

Applied MPD techniques in marine environment for first time

Debuted revolutionary Microflux™ control technology, which enables real-time identification of minute downhole influxes and losses

Deployed marine-series RCD for first time

Employed marine-series RCDs on floating rig for first time

Received industry’s first API 16RCD certification for RCDs

© 2005-2010 Weatherford. All rights reserved.

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More real results Since 1998, we have provided MPD support on operations in countries throughout the world. Examples of our Real Results showcase our success.

Mexico: MPD techniques enable operator to reach TD, reduce fluid losses Our MPD techniques enabled an operator to overcome wellcontrol issues experienced in previous operations—gas influx, stuck pipe, fluid losses—and consequently to reach TD safely on an onshore, horizontal well. MPD also made drilling near the pore pressure possible, minimizing formation damage.

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© 2005-2010 Weatherford. All rights reserved.

Peru: MPD techniques mitigate circulation losses, reduce drilling costs on remote wells The section was drilled in seven days—two days faster than planned—saving the operator more than US$400,000 per well. The use of a two-phased drilling system helped maintain strict control of bottomhole pressure, thereby minimizing fluid losses and the risk of hole instability.

Egypt: Our advanced Microflux™ control technology enables drilling of previously undrillable well The combined use of our advanced Microflux control system and an operator’s near-balanced drilling system ended detrimental kick/loss cycles to enable the drilling of an exploratory HP/HT well to TD. Eight previous attempts to drill the well had failed.

Offshore India: CBHP drilling helps reduce NPT in HP/HT Well NPT related to downhole problems was reduced to one day, compared to an average of 10 days for each of three previous wells in the field. In addition, fluid losses were minimized to 290 bbl of synthetic oil-based mud, compared to previous losses of up to 4,000 bbl.

Weatherford’s Managed Pressure Drilling (MPD) Services

Secure DrillingSM services: A better way to drill MPD is part of an expanded range of Secure Drilling services that we offer to minimize the risk of drilling hazards related to a wellbore’s pressure profile, and ultimately, to optimize life-of-well performance. Our Secure Drilling services encompass:

Vietnam: CBHP drilling enables drilling of recordsetting well

Indonesia: PMCD and DDV® tool enable drilling of big-bore gas wells

We used CBHP drilling to mitigate severe-brine-drilling, fluid losses on a development well in a pressurized, fracturedbasement reservoir where losses and kicks are common. At a depth of 21,411 ft (6,526 m), the resulting well was the country’s longest basement well to date.

Our PMCD-variant MPD and DDV tool enabled an operator to drill 300 MMscf/d. Use of the DDV tool eliminated the need for killing the well before setting the completion string. Use of a PMCD system reduced consumption of lost-circulation material. These measures contributed significantly to minimizing formation damage and preserving reservoir potential.

Personnel and asset protection. The use of RCDs to protect wellsite personnel and rig equipment is a cornerstone of our Secure Drilling methodology. Detection and management. We use advanced identification and control systems to rapidly detect kick and fluid loss, and manage the wellbore pressure profile during drilling operations. Reservoir evaluation. We draw on our extensive evaluation capabilities to obtain pertinent reservoir data—such as pore pressure, fracture gradient, hydrocarbon composition—that drive drilling and completion decisions. Performance optimization. Leveraging reservoir data and other resources, we design and implement strategies to optimize life-of-well performance.

© 2005-2010 Weatherford. All rights reserved.

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Weatherford’s Managed Pressure Drilling (MPD) Services

Weatherford’s MPD services are an integral component of our drilling hazard mitigation (DHM) portfolio. To learn more about our phased approach to DHM—explore, engineer, execute—or how our MPD services can help you maximize control of your wellbore’s pressure profile, mitigate multiple drilling hazards and ultimately make otherwise undrillable prospects drillable, contact an authorized Weatherford representative or visit weatherford.com/MPD.

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© 2005-2010 Weatherford. All rights reserved.

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Weatherford products and services are subject to the Company’s standard terms and conditions, available on request or at weatherford.com. For more information contact an authorized Weatherford representative. Unless noted otherwise, trademarks and service marks herein are the property of Weatherford. Specifications are subject to change without notice. Weatherford sells its products and services in accordance with the terms and conditions set forth in the applicable contract between Weatherford and the client.