Broadband Networked Drillstring For High-Definition Downhole Data, Along String Evaluation and System Integration

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Broadband Networked Drillstring For High-Definition Downhole Data, Along String Evaluation and System Integration September 9 th 011 Daan Veeningen Daan.veeningen@nov.com

Some quick answers to burning questions 1 4 First wired-system to market, patents dating from the 1940 s Largest Oilfield Manufacturer and Largest Service Company Support JV Jobs, worked in 4 continents, 4 service companies (BHI, SLB, HAL, WFT) 5 Facilities Provo, Navasota, Aberdeen, Villahermosa, Trinidad + Container R&M 6 5/8 Pipe size available, in addition to 4, 5 and 5 7/8 10 57 Years broadband networking Commercial Launch in Jan 006 45 % minority interest of SLB; maintain open network kbps broadband network, mbps field tested 95 % Uptime in H1 450 Thousand feet of Networked Pipe in portfolio 1,000,000 Feet deployed, 87 wells, 3 different rigs 30,000,000 Drill Pipe Device-Hours

gamma resistivity pressure vibration vibration Sonic Image Logs Etc, Etc Today s Well Construction Challenges Mud Pulse Data transferred in -5 sec pulses Safety Cost control Consistent performance IntelliServ Broadband Network Deep reservoirs, complex wells Narrow pore-frac window Need for downhole data Need for downhole tool control Need for system integration Lagging bi-directional telemetry Continuous bi-directional data transfer Tool actuation

System Components 1) Armored coax cable ) Induction coils 3) Boosters

Broadband Telemetry for Downhole and Along String Measurements Equipment Pipe/Coil + Coax DP HWDP NM DC, DC Jars Reamers Saver subs Crossovers Broadband Telemetry Field Specialists Bi-directional tool communication Down-hole tool actuation services Network diagnostics Software displays Inventory management Support from central technology support hub People, Processes Managed Service BHA / Along String Measurements Service Companies: BH, HAL, SLB, WFT Interface Sub IntelliServ Temperature, Annular Pressure, Internal (bore) Pressure

IntelliServ Capabilities

1 Capability #1: High Speed, Broadband Because downhole signals are transmitted and evaluated as time-series measurements, they have to be measured quickly enough to ensure they can be accurately defined. 1. Vibration Mitigation. Wellbore Imaging Nyquist Theorem

1 Broadband speed enables high-frequency signal definition 1 Hz ~40 Hz Courtesy: NOV Downhole, Blackbox recorded data

1 Broadband speed enables high-frequency signal definition 1 Hz ~40 Hz Courtesy: NOV Downhole, Blackbox recorded data

1 Broadband speed for high-definition wellbore imaging Gamma Image 4 sector drilling at 30 ft/hr passing a fault (Mud Pulse) Gamma Image 8 sector while drilling at 00-300 ft/hr SPE 119570

1 Broadband for high-definition logs in real time Improved log quality reduced geological uncertainties Redundant telemetry systems permit continuation Sub surface risks evaluated in real time including time lapse or 4D logging Mud Pulse best case: Ream down 60 ft/hr 1 pt/ft 4 sector. The 4 sector image averages out the breakout. Wired Pipe: Ream down at 30 ft/hr pts/ft 16 sector Courtesy: BakerHughes

1 Capability #: Measurements beyond just at the bit Distributed measurements provide additional insight of what is happening along the miles of pipe and help avoid potentially trouble 1. Event Detection. UBD / MPD Capabilities: 1. Pressure. Temperature

1 Along-string evaluation for kick detection PRESSURE GRADIENT CHANGE IN AN INTERVAL? Kick Detection (Large Annulus) t = 0 t = 1 t = t = 3 Δ Δ Δ Δ Sensor #3 Y BORE, ANNULAR PRESSURE DECREASE IN AN INTERVAL? Y WELLBORE INFLUX* Δ Δ Δ Δ Sensor # N N CONTROL INFLUX (SHUT IN OR DYNAMIC WELL KILL Δ Δ Δ Δ Sensor #1 OPERATIONS CONTINUE * LARGE ANNULUS ANNULAR PRESSURE SENSOR

1 Along-string evaluation for event detection PRESSURE GRADIENT CHANGE IN AN INTERVAL? Kick Detection (Large Annulus) ANNULAR PRESSURE GRADIENT INCREASE IN AN INTERVAL? Pack-Off Y Y BORE, ANNULAR PRESSURE DECREASE IN AN INTERVAL? Y WELLBORE INFLUX PRESSURE INCREASE IN AN INTERVAL? Y CUTTING BUILD-UP N N N N CONTROL INFLUX (SHUT IN OR DYNAMIC WELL KILL) WORK DRILLSTRING, CIRCULATE TO REDUCE PRESSURE GRADIENT OPERATIONS CONTINUE RETURN

1 Along-string pressure evaluation Pack-off detection in deepwater

Time 1 Along-string hole cleaning evaluation Track 1 Track Track 3 Track 4 Track 5 Track 6 14:00 ECD (ppg) ECD (ppg) ECD (ppg) ECD (ppg) ECD (ppg) ECD (ppg) 15:00 16:00 17:00 18:00 19:00 Deeper Shallower

1 Along-string evaluation for UDB, nitrogen

Rotary Steerable 1 Capability #3: Surface system integration Distributed measurements provide additional insight of what is happening along the miles of pipe and help avoid potentially trouble 1. Downlinking 5 bps Mud- Pulse Telemetry. Trip Speed Optimization Broadband Network Downlink Time and No. of Confirmation Time Saved Well Downlinks (hr:mm) (hr:mm) A 58 04:00 0 B 71 04:15 Capabilities: 0 C 54 03:45 1. Pressure 0. Temperature 1 50 N/A 04:0 7 N/A 06:4 3 6 N/A 04:00

1 Measurement While Tripping 1. Trip Speed Optimization based on Swab/Surge Measurement. Control drawworks speed based on tension/compres sion Measurement while tripping

1 Measurement While Tripping 1. Trip Speed Optimization based on Swab or Surge Measurement. Control drawwork s speed based on tension or compression measurement

SPEED SPEED Today s Capabilities DOWNLINK

MEASURE WHILE TRIPPING (Near) Future Capabilities Along String Evaluation for: Cementing Casing Running Perforating Completions Testing Early production.0 Mbps field test 10/ 09 653 Gigabits transmitted 40 kbps maximum data rate 199 ft BHA with 1 tools Drawworks Heave compensation Mud Pump startup, shut down Auto-Choke Topdrive systems

Thanks to our Service Partners Questions?

Bio Daan Veeningen Daan Veeningen has more than fifteen years of international oilfield experience. Daan has extensive operational experience in well construction operations in three continents. Further, Daan developed drilling engineering tools and marketed Schlumberger services with real time capabilities. At NOV, Daan has been responsible for business development and marketing for the IntelliServ broadband networking and along-string evaluation services for high-definition downhole and sub-surface operations for the last two years. Daan holds a masters degree in petroleum engineering from the Delft University of Technology and has been awarded numerous patents for drilling systems and processes.