N-SOLATE® HIGH PERFORMANCE Insulating Packer Fluid © 2012 HALLIBURTON. ALL RIGHTS RESERVED. customer CHALLENGE Preventing unwanted heat loss during production © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 2 Challenge 1: production rate Production rates slow down with: Heat loss Paraffin and asphalt buildup © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 3 Challenge 1: production rate Production rates slow down with: Heat loss Paraffin and asphalt buildup © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 4 Challenge 2: wellbore integrity Pressure buildup can compromise casing integrity. © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 5 convection Without proper heat insulation, heat transfer is uncontrolled Well producing in a steady state prior to production Threatens wellbore integrity Reduces production flow rates © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 6 Before N-SOLATE® Packer Fluid ONLY LOW ONLY OIL VACUUM TEMPERATURE INSULATORS BASED INSULATORS TUBING INSULATORS © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 7 Baroid’s SOLUTION ® N-SOLATE High Performance Insulating Packer Fluid can effectively control unwanted heat loss by reducing both conduction and convection for the life of the well. © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 8 Applications N-SOLATE Applications: © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 9 DEEPWATER HP/HT STEAM INJECTION PERMAFROST ® N-SOLATE Packer Fluid Applications Oil Based Water Based N-SOLATE N-SOLATE N-SOLATE N-SOLATE 175 275 400 600 DEEPWATER DEEPWATER DEEPWATER DEEPWATER CONTINENTAL SHELF CONTINENTAL SHELF HP/HT HEAVY-OIL GEOTHERMAL GEOTHERMAL PERMAFROST STEAM INJECTION N-SOLATE® packer fluids have low-thermal conductivity components. © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 10 ® N-SOLATE Packer Fluid Specifications © 2012 HALLIBURTON. ALL RIGHTS RESERVED. Thermal stability – from 90°F to 600°F Density range from 8.5 lb/gal to 15.0 ppg Pumpable viscosity Hydrate inhibitive to >8,500 psi @ 40°F (can be engineered to higher pressure with density limitations) Green – Oil and grease content <8 mg/L and LC-50 >100,000 11 ® N-SOLATE Insulating Packer Fluids BEFORE AFTER crosslinker crosslinker Day 1 © 2012 HALLIBURTON. ALL RIGHTS RESERVED. Day 14 N-SOLATE® systems are engineered to activate to a robust, insulating gel at a prescribed temperature and time. Example of N-SOLATE® 275 Fluid Day 28 12 ________ Testing with N-SOLATE 275 Upper Middle 1.05 in 0.70 in 0.35 in 79 123 170 82 129 Example of effective insulating packer fluid. Demonstrates high thermal gradient and convection currents are eliminated. 177 Flow Temp: 280 oF Lower 91 147 Zone 3 Zone 2 © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 196 Zone 1 13 Density: 10.0 lb/gal customer BENEFITS Lower cost as opposed to traditional methods such as vacuum insulating tubing (VIT) Higher production potential Increase production rates, while reducing the costly risks associated with uncontrolled heat loss. © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 14 HIGH PERFROMANCE ® N-SOLATE Insulating Packer Fluids Can prevent annular pressure buildup for the life of the well Control and prevent heat loss for the well’s life Maintains wellbore integrity Compatible with most wellbore fluids Environmentally friendly, with low GOM toxicity and low oil and grease Tailored per well for maximum production can eliminate heat loss by more than when compared to basic insulation methods. 90 © 2012 HALLIBURTON. ALL RIGHTS RESERVED. % 15 TM WELLCAT Casing Design Software Accurately models the thermal insulating effectiveness of N-SOLATE fluids. Wellbore Temperatures - Deepwater Gas Production (32mmscf/day) Wellbore Temperatures - Deepwater Gas Production (32mmscf/day) 3000 4000 5000 6000 7000 5000 6000 7000 8000 8000 9000 9000 10000 Tubing Fluid Tubing Tubing Annulus Casing1 Casing1 Annulus Casing2 Casing2 Annulus Casing3 Casing3 Annulus Undisturbed 4000 MD (ft) MD (ft) 3000 Tubing Fluid Tubing Tubing Annulus Casing1 Casing1 Annulus Casing2 Casing2 Annulus Casing3 Casing3 Annulus Undisturbed 10000 11000 11000 12000 12000 13000 13000 14000 14000 15000 15000 16000 16000 17000 17000 35 60 85 110 135 160 Temperature (°F) 185 210 235 260 35 UNCONTROLLED HEAT LOSS WITH BRINE © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 60 85 110 135 160 Temperature (°F) 185 210 CONTROLLED HEAT LOSS WITH N-SOLATE FLUID 16 235 260 EACH RESERVOIR IS UNIQUE. TAILORED PER WELL FOR MAXIMUM PRODUCTION © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 17 HIGH PERFROMANCE ® N-SOLATE Insulating Packer Fluids Saved Operators 2MM $ (vs. vacuum insulated tubing) © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 18 CASE STUDY: Insulating Packer Fluid Offers Cost Effective Alternative in Deepwater Operations Location: Offshore Louisiana CHALLENGE Preventing well failure caused by annular pressure buildup in Gulf of Mexico deepwater wells. Find a less-expensive and efficient insulation system that would prevent heat transfer and allow for increased flow rates. SOLUTION N-SOLATE® packer fluid was custom-engineered specific to well conditions, formulated for a delayed crosslinking until placed in the wellbore; at which point full gelation of the system occurred In each well, 10 lb/gal packer fluid was blended on the rig site and pumped into the production annuli. Maximum flow-production temperatures for the wells were 210º F (99º C). The cross-linking occurred before reaching this temperature, activating the insulating gel structure. RESULTS Using the high performance packer fluid, It took 12 hours less rig time at a depth of nearly 22,000 ft than it would have to achieve a lesser depth of 10,000 ft with vacuum insulated tubing Nearly $2 million in cost savings were realized over using the traditional vacuum insulated tubing system © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 19 CASE STUDY: Innovative Use of N-SOLATE® Packer Fluid in Gulf of Mexico CHALLENGE Lost circulation High ECD Because of extremely cold sea floor temperatures, the synthetic-based fluid was becoming excessively thick when cooling off in the riser, requiring greater pump pressure to move SOLUTION N-SOLATE 600 packer fluid was used in the riser wall annulus to keep the heat from the synthetic-based mud (SBM) in the main annulus from being lost to cold sea floor temperatures RESULTS Once the N-SOLATE 600 packer fluid was in place, further lost circulation was not experienced Equivalent circulating density (ECD) was drastically reduced Higher circulation rate and faster drilling rates achieved Drilling fluid returned to surface 20 degrees warmer compared to wells without the insulating effects of NSOLATE fluid Less stress on the wellbore throughout the entire operation Major reduction in drilling time and reduction of fluid costs © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 20 related DOCUMENTS Sales Data Sheet Technical Papers Case Studies © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 21 BAROID Laboratory Support Baroid scientists and engineers work with state of the art equipment and an extensive global database in order to perform comprehensive testing analysis on a global scale. Baroid’s Laboratory Services include: © 2012 HALLIBURTON. ALL RIGHTS RESERVED. Analytical technical support Bioassay technical support Reservoir fluids technical services Drilling fluids technical services Industrial drilling products lab Quality assurance Research and development 22 BAROID RESERVOIR FLUID SOLUTIONS Reservoir Drilling Fluids Breaker Systems Completion Fluids Wellbore Clean-Up and Displacement Packages Breaker Systems for Polymer and Solids Removal Lost Circulation in Pay Zones Solutions © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 23 discover BAROID ecosystem Click on image above to launch ecosystem, then click on Launch Interactive ► Where people, processes, and technology are brought together to build customized solutions, optimize performance and deliver distinctive service quality. www.halliburton.com/baroid © 2012 HALLIBURTON. ALL RIGHTS RESERVED. 24