nov intelliserv august 28, 2009 houston, texas

IntelliServ Broadband Network™ and Along-String Evaluation™ services for high-definition downhole and sub-surface operations

NOV IntelliServAugust 28, 2009

Houston, Texas

What is the Value?

10% reduction in drilling time with

increased downlinking

efficiency.

1+ trips saved per Well

⁻ Memory fill-up⁻ Neutron sensor

failure⁻ Rotary Steerable

System, diagnostics and resets

⁻Reamer activation

20-68% increased circulating hours

by managing downhole vibrations,

MSE based on downhole

measurements

1MM bbls additional reserves

0.36Deg/100ft vs 1.32 cumulative dogleg severity in 8 ½” section

6 days saved by wellbore quality, back-reaming practice

1 casing string saved by time lapse wellbore image logs

1,300 ft deeper shoe with Formation Pressure Test with QC in real time

More Wells Better Wells

57,600 bps vs 2bps

Courtesy of Schlumberger

Courtesy of Baker Hughes

Courtesy of Halliburton Courtesy of Halliburton

Courtesy of Schlumberger

Courtesy of Schlumberger

Talking Points

What is the value today and paradigms tomorrow?

What is our service performance?

Which factors impact quality of service?

Ask the R&D Managers…

Today’s Challenge for Telemetry Systems

Mud Pulse

10 bits

/sec

Seq

uential

data

Data transferred in 2-5 sec pulses

gam

ma

resi

stivi

ty

pres

sure

vibr

ation

Source: Bateman 2009

Wiring is the Only Option

Continuous bi-directionaldata transfer

IntelliServ Broadband Network

vibr

ation

Soni

c

Imag

e Lo

gs

Etc,

Etc

57,00

0 bits

/sec

Sim

ultan

eous

data

High

band

width

H

igh de

finiti

on

High V

olum

e

Rea

l tim

e

Tool actuation

Mud Pulse

10 bits

/sec

Seq

uential

data

Data transferred in 2-5 sec pulses

gam

ma

resi

stivi

ty

pres

sure

vibr

ation

Source: Bateman 2009

Networked Components

Next

Operational EfficiencyValue Seen for the IntelliServ Broadband Network

7.16

7.35

7.43

7.70

7.77

7.77

7.84

7.89

5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0

HIGH RESOLUTION DRILLING DYNAMICSDATA TRANSMISSION IN REAL TIME

MONITOR ALL DOWNHOLE TOOLSPERFORMANCE IN REAL TIME

ENABLE 'MEMORY QUALITY' LWDFORMATION EVALUATION IN REAL TIME

TRANSMISSION OF DATA REGARDLESS OFFLUID CONDITIONS

INSTANTANEOUS DOWN-LINKING TO RSSTOOLS/ ENHANCED WELL PLACEMENT

ENABLE HIGH RESOLUTION BOREHOLEIMAGING IN REAL TIME

ENHANCE 'LOOK AHEAD OF BIT'TECHNOLOGY/ SEISMIC WAVEFORMS

FULL TELEMETRY REDUNDANCY

AVERAGE RATING, SCALE 1-10 (10= EXTREMELY HIGH VALUE)

Welling & Company

Paradigm Shifts by the IntelliServ Network

1. Speed does matter:57,600 bits per second

Courtesy: NOV Downhole

Paradigm Shifts by the IntelliServ Network

1. Speed does matter:57,600 bits per min

2. Along String Measurement Service

6.43

7.04

7.14

7.71

7.91

5.0 5.5 6.0 6.5 7.0 7.5 8.0 8.5 9.0

DRILLSTRING VIBRATION /ROTATION

ANNULAR PRESSURE

DRILLSTRING BENDING,TORQUE & TENSION/

COMPRESSION

ULTRASONIC CALIPER

ANNULAR TEMPERATURE

Paradigm Shifts by the IntelliServ Network

1. 1. Speed does matter:57,600 bits per min

2. Along String Measurement Service

Paradigm Shifts by the IntelliServ Network

1. Speed does matter:57,600 bits per min

2. Along String Measurement Service

3. Access High Temperature Reservoirs Rotary Steerable

Near-bit Measurements

Along String Dynamics

Along String Formation Evaluation

Source: Derek MathiesonVice President, Chief Technology and Marketing Officer Baker Hughes Incorporated April 2009

Paradigm Shifts by the IntelliServ Network

1. Speed does matter:57,600 bits per min

2. Along String Measurement Service

3. Access High Temperature Reservoir

4. Transform OperationsCourtesy: BakerHughes, At Balance

Paradigms Uncovering A New Class of Facts

Existing New

Expe

cted

Une

xpec

ted

Network Always On. Trapped Pressure.

Vibration All Along the Drill String ROP Improvement with

Mechanical Specific Energy All Along the Drill String.

More Data, Less Time Required for Interpretation.

Impact on Formation Evaluation with Full Sonic Wave Forms.

Minimizing and Managing Downhole Vibration

Drilling Ahead when Memory Filled Drilling Ahead with diagnostics of

Sensor Failure Confirmation of Reamer

Functioning Wellbore Placement Increases

Productivity

High Resolution Wellbore Images Quality Assurance and Efficiency

of Formation Pressure Testing Dip Picking and Fault

Identification in Real Time Stabilization of Wellbore Stability Early Diagnostics of Tool Failure

Pack Off Determination and it’s Location with Along String Evaluation

Measurements while Tripping Multi-Pass Measurements Fast Downlinking, Re-

Programming/Configuring Tools Alter Formation Evaluation Program

with High Resolution Information while Drilling

IntelliServ Network-Ready Components

Current Commercial Network

Pipe Size Grade Length Connection

4” S135, CYX105 R2 XT38

5” S135, CYX105 R2 GPDS50

5-7/8” Z140, S135 R2, R3 XT57

Customer Bandwidth: 57,600 bps Functional Temperature: 302°F = 150°C Functional Pressure: 25,000 psi

Brunei

Colombia

Trinidad

Australia

Provo, Utah

Malaysia

United Kingdom

Mexico

Network Configured Components

Configured Drive Systems

Interface Subs to Connect to Service Companies

Extensible Tools - Jars

22

Valves, Etc – Configured PBL Tool

Others - Adapter Crossovers

Product Service Experience

Drilling Experience - Summary

Total Wells Drilled: 64 Total Footage Drilled: 640,422 ft Deepest Well Depth: 20,833 ft Highest Temperature: 298°F Highest Inclination: 98° Fluid Environments: OBM, WBM, Foam, Air Wireline Through String: 15,814ft

Data accurate as of 20 August 2009

Commercial Rollout

Footage Drilled with IntelliServ Broadband Network

Service Conditions Tested/Experienced

Wired Tubulars and Thru-string Operations

(Exaggerated Proportions)

Wiper Ball Compatibility - CatoosaTest

No adverse impact to foam wiper ball Leading and trailing ends of rubber wiper ball (large and small circles)

Minor scoring of hard rubber ball apparently from armored coax/coax

exit into bore

Wireline Tool Compatibility – Catoosa Test

Thru-string Operations – Field Experience

o Cementingo Number of Recorded Cementing Operations = 84No incidents related to IntelliServ system

o Wireline Operationso Number of Recorded Wireline Operations = 15o Greatest Recorded Wireline Depth = 15,814 ftNo incidents related to IntelliServ system; line drag

reported normal/below model on the deepest wireline operation

Shear Ram Compatibility – Cooper Cameron Test

o 5-7/8” S135 drill pipe (XT57 TJ)

No Impact of wiring components on shearing or ability to hold pressure after shearing

Unwired

Wired

Jar Compatibility – Lab Test

o 100 successive jar impacts in test facility (with collar and slinger)

Network components still passed data flawlessly during and after test

Field experience corroborates test results

Jar Compatibility – Field Experience

o Multiple stuck string events encountered:

oMultiple jar cycles employed without damage to network

o Jar detected by Network

Torsional Capacity – GRP Lab Testing

GPDS50 Recommended Make-Up Torque

Grant Prideco Lab Testing (cont’d)

XT57 Recommended Make-Up Torque

Grant Prideco Lab Testing (cont’d)

XT57 Recommended Make-Up Torque

Torsional Capacity – Field Experience Some damage to drill pipe incurred

Box end surface damage Excessive pin nose yielding Damage indicative of overtorque condition

Effect on telemetry: coil breakage/loosening

39

IntelliServ Standard Armor

Test Mat’l A Test Mat’l CTest Mat’l B

Other Environmental Conditions – Lab Testing of SCC Resistant Mat’ls

Significant SCC after 14 hours One site with significant pitting corrosion observed after 480 hours

No signs of SCC (die penetrant test) observed after 414 hours

No signs of SCC or pitting prior to 300 hours (21x mag)

No signs of SCC (die penetrant test) observed after 382 hours

21x magnification after 14 hours

21x magnification after 414 hours

21x magnification after 382 hours

Days into Drill Operations

0

50000

100000

150000

200000

250000

0 20 40 60 80 100 120 140 160

No SCCNo SCCSCC (after storage)

mg

/L C

hlo

rid

e

SCC

Water-based mud

Other Environmental Conditions -Field Experience

Service Performance of Broadband Network

Academy In Summary

Value Today with IntelliServ Broadband Network, Paradigms Shifts for Tomorrow

Converted Components are Available Today

The Network has seen Activity in a Variety of

Environments

Reliability Matters and is a Central Focus of

Ongoing Engineering Efforts

Q&A with R&D?

Thank You!Thank You for Your Interest in the Academy:

Topics for next Academy:

[ ] Along String Evaluation Service Roadmap [ ] [ ]