® BAROID Oil Sands Enhancement Package © 2013 HALLIBURTON. ALL RIGHTS RESERVED. why BAROID? © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 1925 Filed patent for first barite-based drilling fluid 1930 First mud school 1932 First mud-testing procedures and kit 1939 First mud-logging service 1940s Pioneers service by air and sea 1950s Invents foam drilling technology 1960s Invents oil-based fluid, Invermul® system 1970s Develops new fluids for hostile geology 1980s Develops mud loop testing, improves waste management 1990s Pioneers biodegradable invert drilling fluids 2000s Rolls out first families of clay-free synthetic and high performance water-based fluids 2010s Introduces automated mud monitoring equipment to industry 2 consistent QUALITY Our Technical and Operational Process Identify the Challenge Solution Creation Operations Program Operations Execution Critical First Well Execution © 2013 HALLIBURTON. ALL RIGHTS RESERVED. Knowledge Capture Problem Resolution 3 Present the Value 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: © 2013 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 4 heavy oil CHALLENGES Casing shoe accretion difficulty tripping running liners BHA accretion reduction in ROP BHA responsiveness foaming excessive torque & drag Hole cleaning reduced ROPs difficult trips stuck casing Running liner © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 5 Stuck pipe pack off differential sticking heavy oil CHALLENGES Environmental concerns: Water consumption Transportation Disposal liability Operational footprint Wellbore erosion (from heat, sand, or additives) Screen blinding at the shakers BHA/tool wear from sand Fluid flexibility, reusability Fluid contamination © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 6 Baroid’s SOLUTION BAROID® Oil Sands Enhancement Package Helps prevent bitumen accretion in oil sands and heavy oil drilling operations, enabling economic recovery of heavy oil and reduced NPT © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 7 field APPLICATIONS BAROID Oil Sands Enhancement Package: Heavy oil, extra heavy oil Oil sands Steam assisted gravity drainage (SAGD) Cyclic steam stimulation (CSS) Horizontal and extended reach drilling heavy oil wells Effective in temperatures up to 100˚ C (212˚ F) © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 8 operational BENEFITS Maximize operational efficiency: Simplified water-based fluid to increase drilling performance with no additional logistical concerns Reduce NPT from bitumen accretion Increase ROP when drilling through bitumen Reduce torque and drag in horizontals Increase distance of horizontals able to be drilled with single fluid © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 9 operational BENEFITS Achieve HSE goals: Reusable fluid Resistant to contamination Water-based cuttings and fluid pose less safety and environmental risk to transport and dispose of than oil-based Decrease disposal volume: cuttings are encapsulated, making them easier and safer to handle/transport Water can be recycled and reused with Baroid dewatering systems © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 10 operational BENEFITS Reduced costs: Product is effective at low concentrations Decrease disposal volume minimizes transportation and disposal costs Lubricious fluid reduces repair cost associated with BHA and tool damage from sand Longer fluid life: over 8,500 m (27,800 ft.) drilled with a single fluid © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 11 Oil Sands Enhancement Package cementing preparation © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 12 Oil Sands Enhancement Package fluid will be water wet, and designed for easy removal No special additives are required in the spacer Cement spacer relies on rheology to efficiently displace drilling fluid. Rheology should remain relatively flat across a broad range of shear rates. Creates a thin filter cake and is readily lifted off the wellbore face key FEATURES © 2013 HALLIBURTON. ALL RIGHTS RESERVED. Maintains low rheological profile Does not disperse bitumen Effective in temperatures up to 100˚C (212˚F) Provides lubricity Resistant to contamination Low solids fluid; minimizes plastic flow potential Reduces screen blinding, cuttings easily removed Customizable to formation Creates a thin and even filter cake Avoids emulsification into the drilling fluid 13 screenable CUTTINGS Prevents screen blinding by mitigating accretion A. Untreated bitumen in typical WBM B. Unsuccessful additives in typical WBM C. WBM Treated with BAROID Oil Sands Enhancement Package © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 14 prevents ACCRETION BAROID Oil Sands Enhancement Package fluid strips out sand and encapsulates bitumen for easy removal A A. Oil-sand adhesion with typical water-based fluid © 2013 HALLIBURTON. ALL RIGHTS RESERVED. B B. Oil-sand adhesion with BAROID Oils Sands Enhancement Package 15 LAB DATA reverses accretion Baroid Oil Sands Enhancement Package fluid polymer can reverse accretion of heavy oil that has occurred on the casing of BHA Day 1 Day 2 Treatment with 242 kg/m3 additional 28.5 kg/m 3 OSEP bitumen still results polymer additive in no accretion results in no accretion (without Oil Sands (242 kg/m3 oil sands) Enhancement Package) © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 16 Day 3 Day 4 242 kg/m3 additional bitumen results in heavy accretion (without Oil Sands Enhancement Package) Treatment with additional Oil Sands Enhancement Package polymer additive reverses accretion ® ENVIRO-FLOC dewatering equipment Baroid Oil Sands Enhancement Package can be used along with Baroid ENVIRO-FLOC® dewatering equipment for added operational benefits: Can Reduce Environmental Liability – Produces clear water for reuse or discharge options – Maximizes water re-use and significantly decreases the amount of freshwater used Can Reduce Costs – Provides efficient recovery of valuable base fluids such as brines – Helps eliminate disposal costs and minimizes water usage Increased Performance and Versatility – – – – Enhance solids control beyond mechanical equipment capabilities Customizable for various types of working environments High capacity process tanks Single and dual centrifuges available © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 17 ® ENVIRO-FLOC dewatering equipment Halliburton Baroid ENVIRO-FLOC® dewatering system uses flocculation and coagulation to remove suspended solids and additives Treated water is recycled and reused at the rig site or discharged safely without harmful contaminants Winterized © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 18 Process up to 500 gal/min ® ENVIRO-FLOC dewatering equipment Halliburton Baroid ENVIRO-FLOC® dewatering system Chemical treatment alters the characteristics of slurries so more suspended solids can be removed mechanically © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 19 ® ENVIRO-FLOC dewatering equipment Halliburton Baroid ENVIRO-FLOC® dewatering system Leaves water clear and ready for re-use or disposal Maximizes water re-use and significantly decreases the amount of freshwater used © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 20 ® ENVIRO-FLOC dewatering equipment Halliburton Baroid ENVIRO-FLOC® dewatering system Enables more efficient and environmentally friendly SAGD and CSS drilling operations © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 21 ® ENVIRO-FLOC dewatering equipment Halliburton Baroid ENVIRO-FLOC® dewatering system Maximizes Versatility Customized to meet operational requirements by fitting onto skids or trailers © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 22 ® ENVIRO-FLOC dewatering equipment Drill over 8,500m over the period of 40 days; built ~500m3 Stripped ~90m3 using conventional de-watering polymers (18% of the volume built) De-watered fluid put back into active system to re-build new volume with no negative impact © 2013 HALLIBURTON. ALL RIGHTS RESERVED. Halliburton’s ENVIRO-FLOC® dewatering system 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 © 2013 HALLIBURTON. ALL RIGHTS RESERVED. 24