GW-LWD (BWR) Science & Technology Management Department, CNPC China national Petroleum CorPoration

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GW-LWD (BWR) Science & Technology Management Department, CNPC 2015 China national Petroleum CorPoration

GW-LWD (BWR): A Steering Wheel to Accurate Tracking of Reservoirs!

Contents 1 Introduction 3 2 Characteristic Technologies 6 3 Typical Cases 11 4 Scientific Research Equipment 13 5 Qualification Standards 14 6 Expert Team 17 7 After-sale Services 19

China National Petroleum Corporation (CNPC) is a state-authorized investment agency and a state holding company. On July 1998, with the implementation of the Institutional reform of the State Council, CNPC was reorgnized to become an integrated oil company of cross-regions, crossindustries and cross-countries, it adopts modern enterprise system to realize the integrations of upstream and downstream operations, internal and external trade, production and marketing. CNPC s business covers six main sectors: oil and gas operations, petroleum engineering service, petroleum engineering construction, petroleum equipment manufacturing, financial services and new energy development. In 2014 CNPC produced 113.67 million tons of crude oil and 95.46 billion cubic meters of natural gas, while crude processing volume reached 150.2 million tons. The total revenue of RMB 2,730 billion with a profit of RMB173.4 billion had been achieved the same year. CNPC was ranked 3th among the world s largest 50 oil companies and 4th in Fortune Global 500 in 2014. CNPC strictly follows by the combined strategies of increasing resource capacity, expanding market shares and consolidating the international role, and persists in regarding technical innovation as a key framework to advance technological progress. To develop its core businesses, focuses will be placed on the solutions of key bottleneck technologies and key proprietary technologies. Thanks to continuously improving of the technical innovation system, optimizing the configuration of technological resources and strengthening the construction of strong talent teams, CNPC s technological creativity has been considerably upgraded. Consequently, a large number of technologies have been developed independently, with its own intellectual property. The GW-LWD (BWR) is one of representatives for major innovations of CNPC. OFFERING ENERGY SOURCES, CREATING HARMONY 2

1Introduction GW-LWD(BWR) system integrates measurement and transmission of information while drilling and provides bases for adjusting drilling direction and maintaining high drilled ratio of reservoirs at any time through real-time monitoring of downhole geologic parameters and engineering parameters in the drilling process. The system is widely applied in geosteering and formation evaluation of complex structure wells such as horizontal wells, extended reach wells, etc., and can greatly increase drilling success ratio, single-well production and recovery ratio, reduce oilfield development and production cost and realize high efficiency development of oilfields. 3

Introduction GW-LWD(BWR) Great Wall-Logging While Drilling (Broadband Wave Resistivity) system has three sizes including φ120, φ172 and φ203. The system can work in HTHP environment of 150 and 140Mpa and measures 3 engineering parameters (inclination, azimuth and tool face) and 3 geologic parameters (formation depth, shallow resistivity and formation GR value) in real time. CNPC has proprietary intellectual property rights of the system, 7 national utility model patents and 1 invention patent. The system is the first set of broadband wave resistivity logging tool while drilling designed and manufactured independently by China and reaches the advanced level of international like tools. Surface software and hardware platform Surface data processor and system software Surface data acquisition and well depth system Pulse generator Positive pulse MWD system Downhole turbine generator Directional measuring tool GW-LWD (BWR) Rectifier GR logging tool Driver Broadband wave resistivity logging tool (BWR) Downhole memory Telescopic connector 4

GW-LWD (BWR) 6 key technologies Accurate BWR calculation chart modeling realization of wider BWR measuring range; Perfect BWR logging tool calibration system ensurance of the trueness and reliability of resistivity measurement data; Originally created high-speed stable FS33 network communication protocol realizing tool expandability; Advanced mud pulse encoding and decoding technology realizing signal transmission in severe environment; Complete data processing algorithm performing accurate measurement of directional parameters in pumping state; High power generator and high performance positive pulse system meeting the requirements of connection and power supply to subsequent tools and upload large quantity of data. 3 innovative technologies Self-adaptive transmitting power adjustment technology increasing the dynamic range of receiving signals and measurement SNR; Pulse signal decoding time perturbation technology increasing decoding ratio in high noise environment; Man-machine interactive intelligent decoding technology avoiding secondary pumping and saving operation time. Better than international like tools in 3 technical indexes Resistivity logging tool detection depth; System data transmission rate and storage capacity Mud pulse signal decoding capacity 5

2Characteristic Technologies GW-LWD(BWR) system mainly consists of four parts including surface software and hardware platform, positive pulse MWD system, BWR logging tool and GR logging tool. Surface processor Signal cable Pressure sensor Hook load sensor Surface software Driller s display Downhole tool setting Drawworks sensor GR logging tool BWR logging tool Directional measuring tool Downhole generator Pulse generator 6

GW-LWD (BWR) 2.1 Surface Software and Hardware Platform The surface software and hardware platform includes surface data processor, sensor, signal transmission cable, surface software system, etc. The surface system acquires downhole mud pulse signals and well depth signals via the senor, transmits them to the PC via the CAN bus for decoding and processing by the surface software, and displays and records downhole information in real time. The surface hardware is characterized by high reliability, water proofing, explosion proofing, etc., and the data processor has independent system software and can realize remote high speed communication with the driller s display. 2.2 Positive Pulse MWD System The positive pulse MWD system mainly consists of pulse generator, downhole turbine generator and directional measuring tool (downhole central processor) and has relevant matching subs such as drive controller, rectifier, downhole memory, etc. The system can provide directional measurement and auxiliary parameters such as inclination, azimuth, tool face, etc., communicate with other measuring modules, receive and store other measuring data, realize pulse signal encoding (pulse width adjustable) and control pulser to generate signals. GW-LWD(BWR) is designed with a large power downhole turbine generator and the control signal downloading technology based on displacement adjustment has been developed, so that the positive pulse system is characterized by strong anti-interference capacity and stable and reliable working and accurate measuring of directional parameters can be realized in pumping state. 7

Characteristic Technologies 2.3 BWR Logging Tool The BWR Logging Tool of GW-LWD(BWR) uses the four-transmitter two-receiver six-antenna mode, measures the amplitude ratio and phase difference of two receiving coils by alternately transmitting 2MHz and 500kHz sine electromagnetic waves depending upon the difference of different formations in absorbing electromagnetic waves during electromagnetic wave propagation in formations, and obtains formation resistivity information through further conversion. The logging tool can realize electromagnetic signal detection in complex drilling environments involving high temperature, high pressure, vibration, impaction, etc. and eliminate various possible interferences through acquisition and processing of multi-frequency and multi-coil signals. The system is designed with a downhole dual-64m memory system, stores 32 measurement parameters downhole, provides 8 BWR logging curves at different detection depths and deep and shallow resistivity logging curves in real time, and can perform measurement for continuous 300hr, with the maximum effective detection depth up to 2.2m. Tool antenna structure 2.4 GR Logging Tool The GR Logging Tool can connect MWD and other measuring modules, communicate with them and provide GR measurement data of formations. GW-LWD(BWR) integrates a high precision GR detection sensor and is designed with the matching GR interface circuit, independent high voltage power supply and self-adaptive filter, thus realizing accurate GR measurement. GR sensor PMT 8

GW-LWD (BWR) 2.5 Specifications of GW-LWD (BWR) General specifications Sand content No higher than 1% Drilling fluid type Drilling pump Vibration Impaction Tool face update time Full measurement time Non-limited Duplex or triplex pump Acceleration 196m/s 2 (frequency sweep range 20~200)Hz Acceleration 455m/s 2 (half-sine waveform) 11, 24 or 35s 55s General specifications Tool OD 203 mm 172 mm 120 mm Total length of the tool 13.40 m 13.48 m 12.33 m Hole size 311 mm 215.9 mm/241.3 mm 149 mm/172 mm Connecting thread type 630 630 410 411 311 310 Rate of over-all angle change Directional : 8.2 /30m Rotate : 8.2 /30m Directional : 16 /30m Rotate : 9 /30m Directional : 30 /30m Rotate : 12 /30m Max temperature 150 150 150 Maximum pressure 140 MPa 140 MPa 140 MPa Displacement 32 ~ 72 L/s 28 ~ 46 L/s 11 ~ 22 L/s Pulser type Positive pulse Positive Directional measuring tool specifications Measurement accuracy Measurement range Inclination ± 0.1 0 ~ 180 Azimuth ± 0.25 0 ~ 360 Tool face ± 0.5 0 ~ 360 9

Characteristic Technologies GR logging tool specifications Measurement range Real time transmission Yes Downhole storage Accuracy Vertical resolution ±3% full range 6 (153mm) BWR logging tool specifications Frequency Measurement method Source distance Measurement range Accuracy 2MHz Phase amplitude Long Short Long Short 0.1 ~ 2.000 Ω m 0.1 ~ 2.000 Ω m 0.1 ~ 500 Ω m 0.1 ~ 300 Ω m ± 1% [0.1 ~ 50Ω m] ± 0.1mmho/m [above 50Ω m] ± 1% [0.1 ~ 50Ω m] ± 0.1mmho/m [above 50Ω m] ± 2% [0.1 ~ 25Ω m] ± 0.8mmho/m [above 25Ω m] ± 2% [0.1 ~ 25Ω m] ± 1mmho/m [above 25Ω m] 500kHz Phase amplitude Long Short Long Short 0.1 ~ 1.000 Ω m 0.1 ~ 1.000 Ω m 0.1 ~ 300 Ω m 0.1 ~ 200 Ω m ± 1% [0.1 ~ 25Ω m] ± 0.8mmho/m [above 25Ω m] ± 1% [0.1 ~ 25Ω m] ± 0.8mmho/m [above 25Ω m] ± 2% [0.1 ~ 25Ω m] ± 2mmho/m [above 25Ω m] ± 2% [0.1 ~ 25Ω m] ± 2mmho/m [above 25Ω m] 10

3Typical Cases (1) Successful application in overseas high resistivity formations GW-LWD(BWR-120) has been applied in Rangnaruoer Region, Kazakhstan in 2014. The block is marine carbonate rock oilfield with high formation resistivity; as generally accepted in the industry, operation is difficult in the horizons in the block. With GW-LWD, the single-well footage is 400m, the highest measured formation resistivity is up to 433Ω; waveform is stable; data are accurate. After 230h continuous working, the system has zero failure. The drilled ratio with the reservoir thickness less than 1m is up to over 90%. A good effect has been obtained and the system has been highly recognized by Party A. 11

Typical Cases (2) Keeping high drilled ratio in marginal thin reservoirs GW-LWD (BWR) system was successfully applied in a block in Hailar, Inner Mongolia in May, 2014. The reservoirs in the block of the well are marginal thin reservoirs with the thickness less than 2m, and the average drilled ratio of reservoirs in ambient wells is less than 60%. After 250h of downhole working, GW- LWD(BWR) had no failure. The data acquisition accuracy ratio is 100%, reservoir conditions are reflected accurately in time, and the drilled ratio of reservoirs is up to over 93%. (3) Adapting to oil base drilling fluid and successful application in shale gas wells GW-LWD (BWR) system was successfully applied in Pengshui block in Chongqing at the end of 2012. Pengshui block is a newly registered region with low exploration degree. The operation well is a sidetracked horizontal shale gas well and belongs to a very important appraisal well. Oil base mud was used during operations. The tool worked stably and had no failure after 436h continuous testing. Curves have obvious and clear reflection and the drilled ratio is up to 100%. 12

4Scientific Research Equipment The internationalized joint R&D mode is used for GW-LWD(BWR). CNPC has a specialized LWD industrialized base integrating R&D, manufacturing, detection and calibration, high-end R&D environment and advanced equipment conditions. Instrument R&D and manufacturing base Key laboratory of CNPC High and low temperature & vibration three-comprehensive tester LT0606 LWD cyclic simulation test bench Probe heating test furnace R72-45-10 Hydraulic spinner assembly THJY-CZJ356ZJ The first BWR verification pool in China 13

5Qualification Standards 5.1 Qualification CNPC has passed ISO9000 quality system certification and is qualified in oil and natural gas drilling engineering research, product provision and technical services. 14

GW-LWD (BWR) 5.2 Standards GW-LWD (BWR) system strictly conforms to relevant national and industrial standards, and three sets of enterprise standards have been self-formulated. Executed relevant standards (part) General specifications for MWD SY/T 6702 Measurement and inspection regulation of directional surveying instruments SY/T 5416 Method for basic environmental testing of petroleum exploration and development instruments SY/T 5102 The calibration for petroleum nuclear logging tool SY/T 6582.2-2003 Calibration method for electronic inclinometers SY/T 6587 Self-formulated standards GW-LWD logging while system Q/SY-GWDC 0033-2011 GW-LWD(BWR-172) logging while drilling system configuration standards Q/SY-GWDC 0038-2011 Logging while drilling resistivity tool calibration Q/SY-GWDC 0077-2013 15

Qualification Standards 5.3 Patents 1 invention patent A nonmagnetic wear-proof sleeve for logging and drilling tool ZL 2008 1 0228215.3. 7 utility model patents Slotted hexagon screw nailhead and bolt ZL 2008 2 0218307.7; A soft docking cable conveyer in horizontal well hydraulic pumping ZL 2004 2 0113588.3; An inner and outer hexagon bolt for MWD ZL 2008 2 0218606.2; A self-locking bolt for MWD ZL 2008 2 0218605.8; A matching tool for slim hole MWD ZL 2011 2 0495387.4; A pulse generator oil filling machine ZL 2013 2 0266670.9; A radar RF connection maintenance tool ZL 2013 2 0263119.9 16

6Expert Team Li Yonghe Senior technical expert, professional level senior engineer. He has been long engaged in drilling engineering research and application. He has obtained 5 CNPC science and technology advance & technology innovation prizes and 32 national patents, and 15 papers written by him have been published. Tel: 0427-7297505 Email: lyongh.gwdc@cnpc.com.cn Wang Xuejian Senior technical expert, senior engineer. He has been long engaged in drilling engineering research and application. He has obtained 1 grade Ⅰ CNPC science and technology advance prize and 2 grade Ⅱ CNPC science and technology advance prizes, and 8 papers written by him have been published. Tel: 0427-7297535 Email: wxj.gwdc@cnpc.com.cn Bai Rui Senior technical expert, senior engineer. He has been long engaged in drilling and logging technology research and field application. He has obtained 28 national patents and 1 grade Ⅰ CNPC science and technology advance prize, and 6 papers written by him have been published. Tel: 0427-7297585 Email: lh_bair@cnpc.com.cn 17

Expert Team Wang Haimin Senior engineer. He has been long engaged in LWD technology field application and is experienced in tool design and improvement. He has obtained 1 grade Ⅰ CNPC science and technology advance prize and 2 national patents. Tel: 0427-3250282 Email: lh_whm.gwdc@cnpc.com.cn Zhang Lei Engineer. He has been engaged in study and application of downhole drilling tool electronics for many years. He has obtained 1 grade Ⅰ CNPC science and technology advance prize and 7 national patents, and 3 papers written by him have been published. Tel: 0427-3250200 Email: leiz.gwdc@cnpc.com.cn Zhang Meijun Engineer. He has been engaged in LWD technology field application and improvement of LWD related software for many years. He has obtained 1 grade Ⅰ CNPC science and technology advance prize and 5 national patents. Tel: 0427-3250205 Email: zhgmj.gwdc@cnpc.com.cn 18

7After-sale Services GW-LWD (BWR) system provides customers with comprehensive quality guarantee services. Free tool maintenance within one year after sale; Free software upgrading and maintenance within one year after sale; Provide comprehensive technical training and actual production logging operation guidance to customers; Provide customers with the needed technical support and fittings. 19

技术依托单位联系人 : 董智伟先生电话 :0427-3250200 Email: riickard@126.com Contact of the Technical Support Unit : Mr. Dong Zhiwei Tel: 0427-3250200 Email: riickard@126.com 中国石油科技管理部联系人 : Contact of Science&Technology 刁顺 / 窦红波先生 Management Department,CNPC : 电联系人话 :86-10-59986059/59982528 : 刁顺先生 Contact: Mr. Diao ShunMr. Diao Shun/Dou Hongbo Email: 电话 sdiao@cnpc.com.cn/ :86-10-5998-6059douhb@cnpc.com.cn Tel: 86-10-5998-6059 Tel: 86-10-59986059/59982528 Email: sdiao@cnpc.com.cn/ douhb@cnpc.com.cn Email: sdiao@cnpc.com.cn Email: sdiao@cnpc.com.cn