Hollow Sucker Rods: Development and applications in Beam Pumping

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12 th Annual Sucker Rod Pumping Workshop Renaissance Hotel Oklahoma City, Oklahoma September 27 30, 2016 Hollow Sucker Rods: Development and applications in Beam Pumping Rodrigo Ruiz Technical Sales Manager Gustavo Alvarez Technical Sales Engineer TENARIS

Agenda Hollow Rod development Operation Challenges Applications Conclusion Sept. 27-30, 2016 2016 Sucker Rod Pumping Workshop 2

History Pumping Through Macaroni* (Hollow) Sucker Rods George McDANNOLD. SWSC 1960 2016 Sucker Rod Pumping Workshop 3

Development Main Characteristics Produced from seamless pipes with box-box ends and nipple connectors. Torque based + displacement Make-Up, no special tools required, only conventional rig tooling. Flush Connection (reduces wear failures in tubing). Possibility to inject through the hollow space. Available in Corrosion Resistant Steels 2016 Sucker Rod Pumping Workshop 4

Development Lab testing on full scale for BP Variable Amount Unit Comment Burst 32240 psi Simulated with OCTG R&D simulators Collapse 31990 psi Simulated with OCTG R&D simulators Sealability (N2) 15000 psi +20Tn Axial load and at room temperature and 150C. N2 Gas was used Fatigue endurance limit 180 MPa This value corresponds to a load range of 100% MGD of an UHS 1 sucker rod. 2016 Sucker Rod Pumping Workshop 5

Operation Challenges Flow Assurance Paraffin/Asphaltenes High viscosity fluids Common failures Hole deviation High wear rate along the tubing string High wear rate on the top of the pump Corrosion Does not allow high strength steel grades usually required for high loads Slim Hole Completions Rod size limited by the tubing and casing ID 2016 Sucker Rod Pumping Workshop 6

Applications: Injection High Pressure Hose Pumping while treating through the annulus. Batch or continuous treatment Optimization. Hot oil/water or steam assisted stimulations. Hollow Polished Rod Injection Cross Over PR - HolloRod TM HolloRod TM Check Valve #1 HolloRods TM HolloRod TM Check Valve #2 Slotted Pup Joint Cross Over API - HolloRod TM Conventional API Sucker Rods Rod Pump Tubing 2016 Sucker Rod Pumping Workshop 7

Applications: Injection Case 1 ALS: Beam Pumping Depth: 2725 ft Tubing: 2 7/8 Pump Size: 1 ¾ Pumping unit:c-303-200-118 Fluid Rate: 195 bbl @80%Ef String Design: 100% HolloRod TM Paraffin Treatment: 1 st Stage: continuously injection with 25 % chemical & 75 % solvent. 2 nd Stage: Steam injection Before After 2016 Sucker Rod Pumping Workshop 8

Applications: Injection Treatment Method CSG-TBG Annulus Batch CSG-TBG Annulus Continuous Risk of formation Damage Production Stop Required Rig intervention Required Heat transfer Efficiency Inhibition Efficiency Rig Cost /Others DLS Restrictions Chemical Waste Risk High No No Low Low Yes No High High No No Low Low No No High Re-Circulating High Yes Yes Low Medium Low No High Capillary String No No No N/A High High Yes Medium HolloRod TM No No No High High Low No Low *Comparison based on standard operation regime, not considering the initial installation. 2016 Sucker Rod Pumping Workshop 9

Applications: High Deviation Target Tubing wear failures in high dog leg severity sections of a well. Combined string with conventional sucker rods. Flush Design Improved Fatigue Resistance Cross Over PR - HolloRod TM HolloRod TM Check Valve #1 Slotted Pup Joint HolloRods TM HolloRod TM Check Valve #2 Slotted Pup Joint Cross Over API - HolloRod TM Conventional tooling Conventional API Sucker Rod Rod Pump Tubing 2016 Sucker Rod Pumping Workshop 10

Applications: High Deviation Target Well AB1 ALS: Beam Pumping Depth: 2970 ft Tubing: 2 7/8 Pump Size: 1.5 Fluid Rate: 274 BPD String Design: 2970 ft HolloRod Run life: 1504 days w/ HolloRod (re-design) Well AB2 ALS: Beam Pumping Depth: 2750 ft Tubing: 3 ½ Pump Size: 2.75 Fluid Rate: 1422 BPD String Design: 2750 ft HolloRod TM Run life: 698 days w/ HolloRod TM (pump failure) Average RL before HR: 318 days (Conventional Sucker Rod: body break) 2016 Sucker Rod Pumping Workshop 11

Applications: High Deviation Target Well# ALS Type Number Makeups Installation Date Max Run Life Run Life Range # HolloRodsTM installed # Conventional Rods % HR/API Tubing Size 1 BP 1 1/26/2011 1492 540+ 76 20 79% 3 1/2" 2 BP 2 7/23/2011 1314 540+ 69 28 71% 3 1/2" 3 BP 1 1/16/2011 1502 540+ 93 0 100% 3 1/2" 4 BP 1 1/5/2012 1148 540+ 34 92 27% 3 1/2" TK 70 5 BP 1 12/18/2010 1531 540+ 64 0 100% 3 1/2" 6 BP 2 8/3/2011 1303 540+ 91 0 100% 2 7/8" Operational conditions: The pump depth is the 3000-3200 ft, the average production is 670 bpd. Some wells produced over 1000 bpd. The tubing in general is 3.5, in a few cases is 2 7/8". The dogleg value between 2 to 5 / 100 ft and we have CO2 in these wells. Water: 60-90% Sand: 5% approx 2016 Sucker Rod Pumping Workshop 12

Applications: Tubing Less Target to slim hole wells Allows the use of bigger insert pumps as the diameter restrictions will be delimited by the casing. High Pressure Hose Hollow Polished Rod Production Flow Cross Over PR - HolloRod TM CARRERA ASCENDENTE CARRERA DESCENDENTE HolloRods TM HolloRod TM Check Valve #2 Hollow Cross Over API - HolloRod TM Hollow Rod Pump Tubing Section for Pump Setting Tubing Anchor On-Off Pump Hold down On/Off TAC Casing 2016 Sucker Rod Pumping Workshop 13

Applications: Flush Sinker Bars Target to high dog leg severity zones on the top of the rod pump. Standard Polished Rod Reduces bucking tendency It can be combined with internally coated tubing around the zone. Bare Tubing Polylined Tubing Cross Over API - HolloRod TM Slotted Pup Joint Flush Design + Stiffness + Weight HolloRods TM Slotted Pup Joint Cross Over API - HolloRod TM Rod Pump Casing 2016 Sucker Rod Pumping Workshop 14

Applications: Flush Sinker Bars This is the previous history for one of the test wells, actually is still running with 9 months operation. Two wells have been installed with polylined tubing to increase repeated tubing wear failures. No sinker Bar after 12 month Producing (Well also contained roller guides) W/ 1.5" Sinker bar after 9 months running (With 6per Tornado guides through bottom section) 2016 Sucker Rod Pumping Workshop 15

Conclusions Flow Assurance Increases efficiency of current treatments. Targets the interested zone. Hole deviation Improves run life in wells with high dogleg and reduces buckling tendency Slim Hole Completions It gives a reliable alternative to tubing + rods completion. Injection High deviation target Sinker Bar Application Tubing Less 2016 Sucker Rod Pumping Workshop 16

Questions Rodrigo Ruiz Technical Sales Manager Gustavo Alvarez Technical Sales Engineer 2016 Sucker Rod Pumping Workshop 17

Copyright Rights to this presentation are owned by the company(ies) and/or author(s) listed on the title page. By submitting this presentation to the Sucker Rod Pumping Workshop, they grant to the Workshop, the Artificial Lift Research and Development Council (ALRDC), and the Southwestern Petroleum Short Course (SWPSC), rights to: Display the presentation at the Workshop. Place it on the www.alrdc.com web site, with access to the site to be as directed by the Workshop Steering Committee. Place it on a CD for distribution and/or sale as directed by the Workshop Steering Committee. Other use of this presentation is prohibited without the expressed written permission of the author(s). The owner company(ies) and/or author(s) may publish this material in other journals or magazines if they refer to the Sucker Rod Pumping Workshop where it was first presented. Sept. 27-30, 2016 2016 Sucker Rod Pumping Workshop 18

Disclaimer The following disclaimer shall be included as the last page of a Technical Presentation or Continuing Education Course. A similar disclaimer is included on the front page of the Sucker Rod Pumping Web Site. The Artificial Lift Research and Development Council and its officers and trustees, and the Sucker Rod Pumping Workshop Steering Committee members, and their supporting organizations and companies (here-in-after referred to as the Sponsoring Organizations), and the author(s) of this Technical Presentation or Continuing Education Training Course and their company(ies), provide this presentation and/or training material at the Sucker Rod Pumping Workshop "as is" without any warranty of any kind, express or implied, as to the accuracy of the information or the products or services referred to by any presenter (in so far as such warranties may be excluded under any relevant law) and these members and their companies will not be liable for unlawful actions and any losses or damage that may result from use of any presentation as a consequence of any inaccuracies in, or any omission from, the information which therein may be contained. The views, opinions, and conclusions expressed in these presentations and/or training materials are those of the author and not necessarily those of the Sponsoring Organizations. The author is solely responsible for the content of the materials. The Sponsoring Organizations cannot and do not warrant the accuracy of these documents beyond the source documents, although we do make every attempt to work from authoritative sources. The Sponsoring Organizations provide these presentations and/or training materials as a service. The Sponsoring Organizations make no representations or warranties, express or implied, with respect to the presentations and/or training materials, or any part thereof, including any warrantees of title, non-infringement of copyright or patent rights of others, merchantability, or fitness or suitability for any purpose. Sept. 27-30, 2016 2016 Sucker Rod Pumping Workshop 19