ReelDirection NOV Well Intervention and Stimulation Equipment

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A PUBLICATION OF Spring 2011 ReelDirection NOV Well Intervention and Stimulation Equipment World s Leading Equipment Supplier for: Coiled Tubing Units Snubbing Nitrogen Pumping Fracturing Cementing Pressure Pumping Wireline Pressure Control Data Acquisition It s no myth: fully electronic solutions for improved well intervention control can cut costs NOV ASEP Elmar has now designed, manufactured and tested its first fully electronic remotely operated well intervention equipment. NESSIE, which stands for NOV Electric Smart System Intervention Equipment, is set to revolutionise the field of wireline intervention control by enhancing the efficiency, accuracy and reliability of operations, resulting in optimised production from wells and maximizing return on investment. NOV ASEP Elmar s engineering director Carl Wood and Keith Dempsie, principal engineer of NOV ASEP Elmar, explain the thinking behind this exciting innovative system. The technology behind wireline pressure control equipment (WPCE) has come along way since NOV ASEP Elmar designed and introduced the very first wireline valves (formerly referred to as wireline BOPs) in the 1950 s under the Bowen name. The latest electric generation of WPCE, which is designed in-house by NOV ASEP Elmar s engineering team, will change the way that offshore wireline operations are conducted worldwide by primarily improving the safety, flexibility and control of well intervention activities. (see page 7) Electrical technician testing one of the WLV control skids....produces new Recessed Reel Bodyload CTUs Contents NOV Hydra Rig has just completed manufacture of two recessed reel truck mounted CTUs that are destined for Russia. The Terberg chassis utilizes a Volvo cabin, controls, transmission, and a Volvo Euro 5, 440hp engine. The unit is winterized to -50C for operation in Arctic conditions in Siberia. These particular chassis are 10 X 8, but 10 X 10 units are available. The split frame design enables NOV Hydra Rig s Patented DID designed reels to fit thru the frame. The split frame design significantly increases the capacity of a bodyload coiled tubing unit while maintaining a road legal height, and at the same time lowers the CG of the unit for more stable handling in off road conditions. This DID has a capacity of 14,500 of 1-3/4 tubing. A HR560 Injector is mounted on a hydraulic tilt stand for leaving the tubing stabbed during transport. Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Stackable Offshore Units N2 Vaporizer Automation System MicroCoil Capillary Units CT Support Pumpers, Fracturing Equipment New BOP and Two Door Stripper Packer Cerberus Software NESSIE 2011 Trade Shows Page 1

NOV Hydra Rig s Stackable Offshore Units Two of these stackable units have been delivered by NOV Hydra Rig Canada and are now in operation. NOV Hydra Rig UK has produced the stackable unit above, with sound enclosed power pack, DNV and ATEX certified, with CE markings. The NOV Hydra Rig stackable CT skid is another development based on specific customer requirements for a small footprint unit suitable for limited space on an offshore platform. The control cabin skid can be mounted on top of the power pack skid or it may be used side by side where space is not limited. NOV Hydra Rig Nitrogen Division and NOV CTES introduces new Merlin - Nitrogen Vaporizer Automation System Suitcase Mount for Retrofit Applications Integrated into Main Control Panel on New Build NOV Hydra Rig and NOV CTES has developed an Automated Discharge Temperature Controller for NOV Hydra Rig s Direct Fired Nitrogen Vaporizers. The Merlin Nitrogen Vaporizer Automation System has been developed to allow the operator to input the desired discharge temperature on a touch screen HMI and let the controller operate the vaporizer to control the discharge temperature, thus allowing the operator to focus on rate and pressure control. The system is available on the full range of models of NOV Hydra Rig Direct Fired Nitrogen Vaporizers and can be included on new build units or retrofit onto existing units with NOV Hydra Rig Direct Fired Nitrogen Vaporizers. To date five automation systems have been supplied and are in operation in the field. Page 2 Merlin - Nitrogen Vaporizer Automation System FEATURES Automatically maintains operator preset discharge temperature Automatic fuel and fan control improves vaporizer efficiency Built in data acquisition system Auto re-ignition on flame out Built in self diagnostics Safety warnings and system shutdown to protect critical components Remote monitoring BENEFITS Reduces temperature variations during rate and/or pressure changes Provides cleaner emissions and improved fuel efficiency Provides data for job analysis and customer reports System monitors for flame out and reacts quickly to maintain preset temperature Pinpoints problem area and provides potential solutions Reduces costly repairs and downtime Provides real time data to control center and/or office location

NOV Hydra Rig introduces MicroCoil capillary units The NOV Hydra Rig MicroCoil Compact Well Intervention unit has a combined power pack and operator cabin, integrated into a single fully-enclosed offshore-style container. The power pack and operator cabin drives and controls a number of alternate well-intervention systems such as slickline, capillary tubing or small coiled tubing. The unit can be operated with or without the optional wire-line module attached. The functionality of the wireline module and capillary components are independent of each other. The container s power pack compartment (sound reduced to 83 DbA average) contains the major diesel/hydraulic assembly. If required the unit can be ATEX/ Zone 2 certified for offshore use. The operator cabin compartment is fitted out with the control panel and operator chair. The control console is a designed for ease of use and maintenance. It features direct hydraulic controls and instrumentation is provided for weight and depth. A NOV data acquisition system or customer supplied system is integral to the control console. The cabin compartment is double-insulated and is provided with heating and ventilation. Together, the combined power pack and operator cabin container and secondary open-frame container form a complete capillary tubing spread. Capillary coiled tubing may be used for placement of well treatment chemicals and can be appropriate for nitrogen injection for well kick-off. There is a standard option to install a slickline winch module. This is supplied as a separable container, bolted to the front of the combined power pack and operator cabin when in use. When separated for transport or storage, the slickline winch module is fully enclosed, damage resistant and weatherproof. The combined power pack and operator cabin is designed to fully utilise the NOV Hydra Rig HR420 capillary injector. The compactly designed HR420 capillary injector has a rated pull of 20,000lbs, a rated snub of 10,000lbs and weights just 1500lbs (700kg). Two fixed displacement motors drive heavy duty chains with precision cast gripper blocks to suit capillary tubing, cable and or coiled tubing from ¼ OD to 1 OD. Page 3

NOV Rolligon Engineering Responds to the New Shale Completion Demands For equipment operators, shale completion is synonymous with tough on equipment. In response, NOV Rolligon has developed new robust designs for Coiled Tubing Support Pumpers specifically geared for high pressure/high rate shale applications. These higher rated twin pump units provide the capability of 1600 bhp to 1900 bhp on a single trailer mounted Coiled Tubing Support unit with pressure capability to 15,000 psi. As the industries requirements change, NOV Rolligon will continue to lead the way with products to meet those needs. Twin Quintuplex Trailer Mounted Coiled Tubing Support Pump NOV Rolligon Expands Presence in Offshore Fracturing Market Romania Spread for the Black Sea NOV Rolligon continues to expand its offshore fracturing equipment market with innovation and fit for purpose engineering designs. The applications can range from fit for purpose units on custom design fracturing boats to modular designs for rapid installation on the deck of more conventional vessels. The engineering design can not only meet special fit for purpose applications, but also the varied safety regulation requirements such as DNV 2.7-1, CE marking, and ABS certified. The NOV Rolligon fracturing package can be engineered to meet the changing demands of the service industry. Page 4 Below Deck Blending System for an Integrated Frac Vessel

New 6.375 Triple BOP and 4.06 Two Door Stripper Packer NOV Texas Oil Tools has recently completed the manufacturing and qualification testing for a new 6 3/8 Model ES64 BOP stack. The stack has two unique tools that were a first for Texas Oil Tools. 1. New Model ES64 Triple BOP 6.375 bore, 10,000psi working pressure Hydraulic Quick Ram Change Larger shear seal actuator Metal x Metal Bonnet gaskets Shearing capabilities: o Coiled tubing All sizes up to 3.50.204 120K yield o Wireline, braided wire, electric line Holding capabilities o Pipe heavy mode 100,000lbs o Pipe light mode API 16st requirements 2. Two Door Stripper Packer 4.06 bore 10,000psi working pressure Capable of running up to 2.875 coiled tubing Slip Bowl capabilities in the upper housing Rotating Bottom Flange assists in rigging up and making up flanges External visual indicator for packer monitoring Electronic indicator capabilities for packer monitoring The Improvements in the BOP will decrease the time required to conduct regular maintenance on the equipment with the addition of the hydraulic ram change system. This system has been used before on smaller BOP s and it has been improved for the 6 3/8 ES to make it easier to assemble. The shearing capacity has increased with a larger piston on the shear seal actuator. The BOP has passed all of the API 16A qualification requirements, and additional requirements from API 6A, NORSOK, and ISO. Our qualification testing includes a gas test. The Two Door Stripper Packer improvements is the addition of an external visual indicator. The indicator is attached directly to the main piston, as the stroke of the piston increases the indicator will show percentage of packer wear. As you approach the stroke of the piston the packer assembly will be worn to levels that is must be replaced. The system also allows for an electronic LVDT to be attached so that the wear can be monitored inside the control cabin. Page 5

NOV CTES s Cerberus software effectively models downhole pulsation devices Field operations with high angle or wellbores with long horizontal sections can present a unique set of challenges. Successful outcomes are dependent on the use of advanced technology. In these scenarios, gravity can no longer be used to deploy the Bottom Hole Assembly (BHA), and the coiled tubing (CT) must be used to push the BHA to the desired working depth. According to a 2009 SPE paper presented by Ken Newman et al. 1, Case histories show that the [Cerberus forces] model gives reasonable results when compared to measured field data. The figures below represent the Cerberus modeling results obtained in a case study described in the referenced SPE paper. Friction forces (acting between the CT surface and the surrounding tubulars) increase as push is sustained, resulting in helical buckling of the tubing. If pushed far enough, the CT will eventually experience lockup, preventing any additional forward movement of the BHA and potentially limiting the success of the field operation. Fortunately, there are several methods of reducing friction forces in long horizontal wellbore sections. One of these our focus here is the application of gentle downhole pulsation, or vibration energy, on the CT string (by way of devices such as the NOV Downhole Agitator ), to gently oscillate the BHA to reduce friction for the purpose of delaying the onset of lockup, thereby allowing further penetration into an extended-reach well. Intervention without pulsation tool: lockup at 13,463 ft. This friction-reduction technique also helps to mitigate the slip/stick movement of the CT that occurs in some situations, allowing for more constant weight on bit (WOB) when performing milling or drilling operations. Key challenges encountered when using a downhole pulsation device are: 1) accurately predicting the additional depth of penetration that is achievable with the use of the tool, and 2) accurately predicting the additional amount of available WOB that is deliverable as a result of reduced friction. It s important that these predictions are made correctly prior to mobilization of the equipment to ensure that no opportunities are missed; or conversely, that the field operation is successfully performed. NOV CTES s Cerberus software s modeling capabilities can be used to answer both of these challenges. Within the software, the friction-reducing properties of various downhole tools are definable by user inputs. These user inputs are then used to provide an analysis of the friction reduction achievable by use of the pulsation tool. More importantly, the pre-job analysis provides an estimate of the additional CT penetration depth that can be achieved as a result of the friction reduction provided by use of the pulsation tool. Intervention with pulsation tool: lockup at 14,370 ft. Bottom line: Downhole pulsation tools can help delay the onset of CT lockup and can extend the reach of the BHA in wellbores containing long horizontal sections, and Cerberus software can provide effective modeling of these types of operations. 1 Kenneth Newman et al., Modeling the Affect of a Downhole Vibrator, SPE 121752, 2009 SPE/ICoTA Coiled Tubing and Well Intervention Conference and Exhibition, The Woodlands, Texas USA, 31 March 1 April 2009. Page 6

NOV ASEP Elmar s Electric Smart System Intervention Equipment NESSIE Technology The NESSIE system is designed to ensure that even the most delicate adjustments to pressure control or grease injection can be done instantly from the safety and comfort of the winch cabin, without a diesel engine. The essence of the technology is incorporation of an NOV ASEP Elmar SmartMonitor realtime computer-generated interface in the winch control cabin which instructs the units on a fully automated basis. Out-with the winch unit, NOV ASEP Elmar CAN-bus technology eliminates hydraulic control up to the point of the wireline valve (WLV) control skid. By replacing hydraulic connections with CAN-bus technology and integrating SmartMonitor technology within each unit, the end result is a complete electronic well control and winch package consisting of an e-drive winch system, a WLV control skid, a grease injection skid and a wellhead pump master valve unit. The SmartMonitor hardware is a touch screen computer that controls all aspects of the wireline operation including; wire lubrication and tension, the display of real time imagery from cameras as well as controlling safety protocols. The result is a quieter, more controlled, environmentally friendly product that can be operated remotely from anywhere in the world. Technical challenges One of the biggest challenges encountered during the design process was developing a method to synchronize the automatic controls of the SmartMonitor with the manual controls of the WLV control skid. The intelligent process advanced, named physical feedback by the company s engineering team, ensures that in the event of an emergency where manual control is required to override the SmartMonitor control, the handles are in the correct position for an engineer to operate instantly. NOV ASEP Elmar carried out an intense program of testing to ensure high performance and reliability of the new electronic solutions and techniques. Cold weather testing was conducted in a test chamber to temperatures as low as -20 C in order to verify the systems reliability, even in the harshest conditions. Cost-effectiveness With rig costs running into millions of dollars a day, developing cost sensitive technologies without compromising safety or performance is paramount. When it comes to service life and maintenance checks, NESSIE technology is longer lasting and more efficient. The SmartMonitors initiate regular health checks scheduled according to actual usage time rather than calendar based scheduling, which is less efficient. Maintenance costs are therefore much lower than hydraulic power equipment resulting in a cost-effective method for intervention activities. Conclusion NESSIE is indeed a major step forward in using software and electronics to drive innovative, reliable and cost-effective intervention equipment during oil and gas exploration worldwide. Quiet, environmentally friendly, safe, reliable, cost-effective and high performing electronically driven equipment is the new direction of well intervention pressure control technology and NESSIE is set to revolutionise the field of well intervention control. Page 7 316 marine grade stainless steel pressure test skid. SmartMonitor on the grease injection skid.

Technical Handbook Update: NOV Group Coiled Tubing Handbook is available on CD by contacting Gloria.Butchard@nov.com NOV Group Wireline Handbook is available on CD by contacting Karen.Walker@nov.com NOV Well Intervention and Stimulation Equipment 2011 Trade Shows -CIPPE Beijing, China March 22-24 -SPE/ICoTA Woodlands, Texas April 5-6 -ICOTA Well Intervention Seminar Stavanger, Norway May 31 -OTC Houston, Tx. May 2-5 -OGU Tashkent, Uzbekistan May 17-19 -Brazil Offshore Rio, Brazil June 14-17 -MIOGE Moscow, Russia June 21-24 -Offshore Europe Aberdeen, Scotland September 6-8 -KIOGE Almaty, Kazakhstan October 5-8 -LAGCOE Lafayette, Louisiana October 25-27 NOV Corporate Headquarters 7909 Parkwood Circle Drive Houston, Texas 77036 United States Phone: 713 375 3700 Fax: 713 375 3994 Well Intervention and Stimulation Equipment Headquarters 1020 Everman Parkway Ft. Worth, Texas 76140 United States Phone: 817 985 5000 Fax: 817 985 5297 NOV WISE Sales Far East Phone: 86 10 8485 1973 E-mail: Bradley.Hastad@nov.com Mexico South America Phone: 86 10 8485 1973 E-mail: Freddy.Salazar@nov.com Middle East Phone: 971 4 883 0414 E-mail: Kerry.quick@nov.com Russia and Europe Phone: 971 4 883 0414 E-mail: Andy.Jenkinson@nov.com Manufacturing Locations NOV Hydra Rig USA Ft. Worth, Texas Phone: 817 985 5000 E-mail: hrisales@nov.com USA Duncan Oklahoma Nitrogen Division Phone: 580 255 4433 E-mail: hrnsales@nov.com United Kingdom Phone: 44 1493 651801 E-mail: hruksales@nov.com Alberta - Canada Phone: 403 279 6430 E-mail: hrcsales@nov.com Texas Oil Tools USA Conroe, Texas Phone: 936 520 5300 E-mail: totsales@nov.com USA - Broussard, Louisiana Phone: 337 839 0024 United Kingdom Phone: 44 1224 331 200 Rolligon USA, Anderson, Texas Phone: 936 873 2600 E-mail: rolligonsales@nov.com CTES USA Conroe, Texas Phone: 936 521 2200 Technical Support: 936 521 2200 E-mail: ctessales@nov.com United Kingdom - Aberdeen Phone: 44 1224 748797 Dubai Middle East Phone: 971 481 0132 Fidmash Minsk, Belarus Phone: +375 17 298 24 11 E-mail: fidmashsales@nov.com Manufacturing Locations NOV ASEP Elmar United Kingdom Phone: +44 1224 740261 E-mail: ASEPElmar-UK@nov.com Netherlands Phone: +31 184 608 700 E-mail: ASEPElmar-NL@nov.com United States Phone: + 1 713 983 9281 E-mail: ASEPElmar-Americas@nov.com Middle East Phone: +971 4 810 0100 E-mail: ASEPElmar-Dubai@nov.com Singapore Phone: +65 6546 0928 E-mail: ASEPElmar-Singapore@nov.com NOV ASEP Elmar Sales, Rental and Service Location Macae, Brazil Phone: +55 22 2773 3328 E-mail: ASEPElmar-Brazil@nov.com Perth, Australia Phone: +61 8 9456 0999 E-mail: ASEPElmar-Perth@nov.com Veracruz, Mexico Phone: +52 229 937 2890 E-mail: ASEPElmar-Americas@nov.com Representative Offices Beijing, China Phone: +86 10 8485 1973 Bogota, Colombia Phone: +57 1602 0414 Edmonton, Canada Phone: +1 780 986 6063 Fidmash, Minsk, Belarus Phone: +375 17 298 24 11 Istanbul, Turkey Phone: +90 262 679 0500 Louisiana, USA Phone: +1 337 839 0024 ext 201 Moscow, FSU Phone: +7 495 258 1473 Page 8 2011 National Oilwell Varco D392001760-MKT-001 Rev. 05