Nov 2008

Advanced Cementing to Increase Well Productivity

November 12 14, 2008
The University of Oklahoma Norman, Oklahoma

Nov 2008

New Workover Techniques

Snubbing and Hydraulic Workover Operations

Hydraulic Workover Operations

Nov 2008

Introduction
Snubbing, sometimes referred to as hydraulic work over (HWO) is a method used to run pipe into and pull pipe out of the well both with & without pressures.

Hydraulic Workover Operations

Nov 2008

What is Snubbing?
Snubbing: The process of overcoming forces acting against tubulars; by mechanical means. While maintaining well control by an external sealing device (BOP, Rotating Head, Annular, etc). Force > Tubing Weight = Snubbing

Hydraulic Workover Operations

Nov 2008

What is Stripping?
Stripping: The process of controlling well bore pressure; while running or pulling tubulars. Force < Tubing Weight = Stripping

Hydraulic Workover Operations

Nov 2008

Definitions frequently used in Snubbing/HWO operations

Snubbing/Stripper Snubbing/Pipe Light Stripping/Pipe Heavy Hydraulic Rig Assist Conventional Unit Guide Tubes Stripper Bowl Stripper Rams Safety Rams Slip Rams Access Window Back Pressure Valves N Nipple Snub

The HWO Unit

Nov 2008

The HWO unit provides the pipe handling capabilities needed to move pipe in or out of the wellbore against pressures. The major components typically include:
Hydraulic jack system with power rotating head

Pipe guide tubes

Stationary & traveling slips Access window

Work basket & hydraulic control panels

Self-contained hydraulic power unit

The HWO Unit

Nov 2008

HES offers a wide range of units to best meet the needs of the customer:

Nov 2008

Snubbing/HWO Unit Selection

Things To Consider

Well Conditions Well Data:

Maximum anticipated surface pressures Perforations Production tubing & down hole equipment limitations

Customers Objective
Will well be entered through the existing production string? Will the production string be removed from the wellbore by the use of the unit?

Nov 2008

Selection of the HWO Equipment

Selection Criteria
Wellbore Conditions

Well objectives
Work string requirements

Maximum lift & snub loads required

Minimum restriction in wellbore

Nov 2008

Selection of the HWO Equipment

Selection Criteria
HWO stack arrangement for operation objectives

Adequate wellhead & surface casing designs for additional loads

Site space available for HWO operations

Availability of equipment & experienced personnel

Considerations in Selecting the Unit

Nov 2008

1 Maximum load that may need to be lifted: Weight of workstring at maximum planned working depth: = 3.02 lbf/ft X 15,200 ft = 45,904 lbf Maximum pull that may be desirable if workstring got stuck: = 77,500 lbf (80% of the workstring minimum yield rating) 2 Maximum force that may need to be snubbed against: Maximum well pressure X cross sectional area of largest pipe to be snubbed plus ram friction: = 6,800 psi X 0.785 (1.662- in)2. + est. 5,000lbs ram friction = 19,700 lbf During snubbing through an annular, the snub: Maximum allowable snubbing pressure through the annular X cross sectional area of tool joint + ram friction 3,000 psi X 0.785 (1.927-in)2 + est.. 5,000 friction = 13,700 lbf

Considerations in Selecting the Unit

Nov 2008

Buoyancy may contribute to lighten the maximum potential lift but is generally considered a safety factor and not used in planning: Anytime snub loads are anticipated, guide tubes are required to reduce the ID of the jack

Considerations in Selecting Stack Conf.

Nov 2008

Special purpose stack arrangements and procedures may be required for situations where severely corroded, collapsed, full of holes, etc.., tubing string have to be stripped out of the well.

Nov 2008

Safety Standards for Snubbing Operations

Personnel safety should always be the primary concern during snubbing operations. A daily safety meeting. Prior to the start of the operation each day, should include the work to be done and any related safety precautions.

Nov 2008

Safety Standards for Snubbing Operations

There should always be at least two methods for the basket personnel to evacuate the basket in the event of an emergency.

HRA (Hydraulic Rig Assist)

Nov 2008

The HRA combines the best of both worlds. The unit comes equipped with everything needed to perform the snubbing and stripping operations; while maintaining work over rig speed and efficiency. ONE LIFT - ONE FLANGE In most applications the Rig Assist can be rigged up and ready to go in less than an hour!

Performance Specifications
Nov 2008

1. 180K & 120K 2. Lift Rating (Hook Load): Self Lift or Equivalent to Rig Hook Capacity 3. Snub Rating: 95,000lbf & 60,000lbf respectively 4. Pressure Limitations: Up to 8,000 psi with current configured BOPs, ability to accommodate 15M equip 5. Slips: 125Ton, 250Ton, 500Ton 6. BOP Config: 5M Annular, (3) BOP Rams, Equalizing and Bleed Off loop- all flanged 7. Pipe Handling: Dual Counter Balance Winch System

Rig Up and Lubricator Limitations

Nov 2008

Physically there are no limitations to the rig up height.

All BHA dimensions must be known

All BHA will have to be lubricated in or stripped in. If stripping a BHA is needed; then the ODs have to be common sized. We have means to lubricate in excessively long BHAs. Units come equipped with ALL Necessary Slip Bowls & Power Tongs

Nov 2008

What makes Halliburton different?

Nov 2008

Our Telescoping Tube Guide allows us to snub tubulars with un-matched safety, speed and assurance. The Telescoping Tube Guide can be used to snub up to 2 7/8 tubing within excess of 8000 psi at surface. No other company any where offers this service with a Rig Assist package.

What makes Halliburton different?

Nov 2008

HAL-Snub Work Sheet : HWO Supervisor inputs real job data to determine all parts of the activity. Work sheet can be changed at anytime during the job as conditions change. The work sheet contains Halliburtons exclusive Tubing Buckling diagram.

What makes Halliburton different?

Nov 2008

Tubular Stress Management: : Allows the user to input tubulars and well conditions prior to the job to determine maximum pipe limits and safety factors. Can be changed real time as conditions change.

What makes Halliburton different?

Nov 2008

Cerberus For Jointed Pipe: : Allows the user to input tubulars, well conditions and well bore geometry prior to the job to determine maximum pipe limits, hydraulics, drag and foam wash. Can be changed real time as conditions change.

Nov 2008

Got Snubbing?? What can it do?

Pin Point Stimulation ~ Surgi Frac, Delta Stim Sleeve Operation Prop Stop Treatment Conformance Solutions ~ Water Web, Therma Tek Well Control Anything a Rig Can do; PLUS doing it under pressure

Nov 2008

Rig Assist with Crane Support Movie

Next Generation Snubbing

Nov 2008

Next Generation Snubbing Unit currently under development Ability to run pipe minimum 60jts per hour Hydraulic Rotary minimum 3000ft/lbs @ 100RPMS 300K Hook Load 150K Snub Load Fully Guided Rig up times 2 hours or less Highly Mobile Small Footprint

Nov 2008

Nov 2008

Appendix

Current Market Share

Nov 2008

INTERVENTION SERVICES
Major Competitors - Global BJ Services Schlumberger Competitors - Specific Markets Cudd Market Share - 1999 HES 27% Schlumberger 24% BJ 9% Cudd 3% Others 37% Total market - $777MM

(CT/SLICKLINE/WELL CONTROL/SEWOP)

COMPLETION PRODUCTS
Major Competitors - Global Baker Hughes Schlumberger Weatherford Market Share - 1999 HES 30% Baker Hughes 30% Schlumberger 13% Weatherford 8% Others 19% Total market - $1.05B (for products that HES supplies)

Competitor Strategies - Schlumberger

Nov 2008

CADE Software deployment Holditch (SIGMA) Integrate Camco, MI & DS names with Schlumberger image Integrate remote data transmission, Shunt Screens and ClearFracTM Fluids for Sand Control package New Marine Vessels for Deep Water capabilities Client Link

Invest in Intelligent Completions/Multi-laterals Invest in CT operations CT tools, and CT spoolable completions Strengthen Camco product line. Acquired Secure oil tools in Canada Market total capability in West Africa with SEWOPs (leased) Possible Acquisitions:
Sensor Highway or CIDRA for Fiber Optic Technology

Competitor Strategies - Baker

Nov 2008

Continue strong investment in Marketing Add Stim Vessel for FracPac capability Leverage market perception to move into Frac Pac Continue to improve ExcluderTM Screens Develop Intelligent Completion offering Continue to invest in Intellectual Property

Integrate Atlas, Western Geophysical and INTEQ Reduce inventory and improve pricing to strengthen BVA Invest in CT tools and CT drilling technology Possible Acquisitions:
Sensor Highway or CIDRA for Fiber Optic Technology BJ or OSCA for pumping services and FracPac capabilities

Competitor Strategies - BJ
Nov 2008

Power Vision (similar to TIMS) Low Cost Provider International Expansion Canada South America ViSTARTM Fluids High Temp Markets South Texas

Strengthen and align its CT services globally Possible Acquisitions: Cudd for CT and Well Control Services OSCA for pumping services and FracPac capabilities

Competitor Strategies - Weatherford

Nov 2008

Continue its aggressive acquisition strategy to buy technology rather than develop Fill gaps in its product offerings mainly in Completions and Sand Control Integration of multiple business units with focus on product sales and bundling of products Low Cost Provider

Invest in and combine assets to improve Screen sales with expandable screens (Petroline) and commodity screens (Houston Well Screen) Maintain perception with HAL, SLB, & BHI that WFT is NOT a direct competitor Possible Acquisitions: Smith, TAM, TIW or Wood Group

The Future - V2003

Nov 2008

Customer #1 Dubai

Customer #3 Angola

Customer #4 Dallas

Extranet

Virtual Halliburton Global Tech Team: 24/7 Support

Customer #2 KL
Customer #6 Norway

Customer #5 London

Provide advice, consulting and other engineering services through e-mail or live chats. Could be a real-time function and a training media for RTRS.

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Nov 2008

The Future - V2003 Real Time Reservoir Solutions

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C om p le te ple R R ep o r ts & F i e l d T ic ke ts Fi

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Vi su V is u aliz al iz ati atio on n R R oo o om m B B us us & & T T ech ech S s So o ln l ns R RU U & & R RD D

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D a ta A c q u is iti o n & S to r a g e
H a l li bu r t on E n e rg y S e r v i c e s

R e a l T im e R e s e r v oi r S o l ut io ns

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Nov 2008

CPE PSL Group - H1 Strategy Update

Whats Different?

Focus on specific target markets to position as #1

Improve focus on smaller business lines in PSL Group by managing businesses in four groups of common lines Addition of PES and Smart technology to CPE technology portfolio Added knowledge management and RTO strategies Improved marketing and commercialization plans Must increase technology and capital spending on CPE as core profit generator for HES
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