D r i l l i n g a n d E v a l u a t i o n

AutoTrak ServicesAutomated rotary closed-loop drilling

2AutoTrak RCLS A story of unmatched performance

The challengeOver a decade ago, a Norwegian operator was facing a unique challenge. Its large gas field had considerable oil reserves. However, the combination of a challenging, costly operating environment and an extremely thin oil reservoir of 36 to 43 ft (11 to 13 m) meant there was no way to recover the oil economically with existing technology.

The answer1997: Baker Hughes introduced the AutoTrak Rotary Closed-Loop drilling system (RCLS). This breakthrough technology allowed operators to steer wellpaths and navigate reservoirs with continuous drillstring rotation for precise well placement at high penetration rates. No longer would operators be forced to choose between steering control and drilling efficiency.

The AutoTrak systems unique capabilities allowed the operators well planners to design innovative multilateral, extended-reach and 3D well plans to maximize recovery with fewer total wells and a smaller surface footprint.

The results2007: Over 1.8 million feet of reservoir were drilled and over one billion barrels of oil later, StatoilHydros Troll Field is an unqualified success. In a single decade, the field delivered more than USD 22 billion to the Norwegian economy with an estimated 70 years of production life remaining.

AutoTrak RCLS made it feasible to develop the fields multilateral wells with its precise steering capabilities. The increased reservoir drainage area per well allowed a reduction in the total number of wellsincreasing the operators efficiency and reducing the environmental footprint. The long horizontal sections facilitated production from a large drainage area more quickly than would otherwise have been attainable, resulting in early production and revenue.

The AutoTrak system permitted cost-effective access to reservoir sections that may have otherwise been deemed uneconomical to develop, ultimately allowing for an increase in producible reserves.

Delivering value worldwideGlobally, daily rig rates and associated drilling costs remain robust, driving clients demands for maximum reserve recovery rates while minimizing non-productive time (NPT). This is the work AutoTrak systems were designed to doproviding efficient, reliable and precise directional drilling services for Baker Hughes clients worldwide. And, as the complexity of well designs and reservoir development programs increases, so does the potential value of an AutoTrak system.

Once you do the math, the value of our family of AutoTrak RCLS systems becomes clear.

These advanced rotary steerable systems include: AutoTrak G3: the revolutionary, third-generation AutoTrak that sets the standard for rotary steerable performance in terms of precision and efficiency

AutoTrak X-treme: the powerful, high-speed rotary steerable system custom-engineered for reliable performance in the industrys most demanding environments and extended reach drilling (ERD) applications

AutoTrak eXpress: the new base-level AutoTrak system for lower spread cost environments with well-documented geology, but still requiring more challenging well profiles.

These key automated rotary directional drilling systems are at the heart of the Baker Hughes Answers While Drilling technologies. And no drilling systems anywhere match their speed, reach, reliability and sheer directional drilling precision.

The service equationPerformance does not come with technology alone. Baker Hughes experts from different product lines combine their expertise in planning, execution and optimization of client projects. With this total-systems approach, clients around the world are able to maximize their return in terms of drilling faster, more efficiently and more economically, than ever before.

3This is the work AutoTrak systems were designed to doproviding efficient, reliable and precise directional drilling services for Baker Hughes clients worldwide.

4AutoTrak RCLS Industry-leading capabilities

AutoTrak steering is specifically designed to provide the industrys most reliable and precise steering response in a wide range of formation types, drilling conditions and well profiles.

Versatile steeringAutoTrak systems have an enviable track record of steering to plan in-formation strengths ranging from weak to hard. Every day, deepwater operators rely on AutoTrak systems to steer in weak sediments, rapidly building angle smoothly to plan for efficient, reliable target intersection. And in hard rock drilling locations, AutoTrak systems deliver the same reliable steering responsepositioning wells for optimum productivity.

High-speed automated steeringThe AutoTrak steering principle is widely regarded as the industrys most precise and efficient. Using AutoTrak systems, challenging wells are steered to the most productive reservoir targetssimultaneously delivering excellent wellbore quality and low tortuosity. These benefits are achieved by integrating autonomous, closed-loop directional drilling control algorithms developed and continually improved over more than 20 years.

Every second, the downhole system compares the desired trajectory with the actual one, automatically adjusting steering parameters, based on the industrys closest inclination-to-bit spacing. The AutoTrak system will seek and continuously maintain the desired trajectory within a fraction of a degree.

This closed-loop control minimizes interaction from the surface while enhancing drilling efficiency, improving hole quality and precisely positioning wellbores.

Steering in tough environmentsStick-slip vibration is a dynamic condition that cannot always be avoided, due to wider use of less lubricious drilling fluids, more complex trajectories and increasing reach. A recognized advantage of AutoTrak steering is that, unlike other rotary steerable systems, its unique design ensures precise steering control even when stick-slip torsional vibration is present.

The AutoTrak system can place wells on plan with low tortuosity and intersect targets in the optimum zone to maximize both drilling efficiency and hydrocarbon recovery.

TIMELINE

2002 AutoTrak third generation introduced

2003AutoTrak drills 15,472 ft (4714 m) in single-bit run at average ROP of 95 ft/hr

AutoTrak: THE EVOLUTION OF UNMATCHED PERFORMANCE

1998 AutoTrak drills 10,184 ft (3104 m) of reservoir: world record for longest horizontal section

1997AutoTrak system introduced

First pilot series in Italy and Norway

1999 AutoTrak drills deepest horizontal section at 18,307 ft (5580 m)

2000 AutoTrak sets single run-time record of 241 drilling hours

AutoTrak sets world record for single run distance of 13,247 ft (4038 m)

AutoTrak drills hole at record 164.7 inclination

2008 AutoTrak breaks its own ERD drilling record, surpassing 38,910 ft (11 860 m), over 7.3 miles of hole

AutoTrak eXpress service introduced in United States and Canada

By November, 18 of the worlds top 25 ERD wells had been drilled using AutoTrak service

2009 Cumulative AutoTrak distance drilled surpasses 35 million ft

AutoTrak eXpress introduced in the Middle East

2007 AutoTrak sets ERD record by drilling an MD of 37,014 ft (11 282 m)

2004 AutoTrak breaks world record for 12-in. hole in single run

2005 AutoTrak X-treme service introduced

AutoTrak X-treme extends horizontal section of offshore Denmark ERD well 6,000 ft (1828 m) past prior limits

First commercial 4-in. AutoTrak G3 runs

2006 AutoTrak X-treme gains commendation in BG Chief Executive Annual Innovation Awards for value delivered in a challenging multilateral well development offshore India

5AutoTrak RCLS Industry-leading capabilities

AutoTrak G3 The benchmark in RSS performance

TIMELINE

2002 AutoTrak third generation introduced

2003AutoTrak drills 15,472 ft (4714 m) in single-bit run at average ROP of 95 ft/hr

AutoTrak: THE EVOLUTION OF UNMATCHED PERFORMANCE

1998 AutoTrak drills 10,184 ft (3104 m) of reservoir: world record for longest horizontal section

1997AutoTrak system introduced

First pilot series in Italy and Norway

1999 AutoTrak drills deepest horizontal section at 18,307 ft (5580 m)

2000 AutoTrak sets single run-time record of 241 drilling hours

AutoTrak sets world record for single run distance of 13,247 ft (4038 m)

AutoTrak drills hole at record 164.7 inclination

2008 AutoTrak breaks its own ERD drilling record, surpassing 38,910 ft (11 860 m), over 7.3 miles of hole

AutoTrak eXpress service introduced in United States and Canada

By November, 18 of the worlds top 25 ERD wells had been drilled using AutoTrak service

2009 Cumulative AutoTrak distance drilled surpasses 35 million ft

AutoTrak eXpress introduced in the Middle East

2007 AutoTrak sets ERD record by drilling an MD of 37,014 ft (11 282 m)

2004 AutoTrak breaks world record for 12-in. hole in single run

2005 AutoTrak X-treme service introduced

AutoTrak X-treme extends horizontal section of offshore Denmark ERD well 6,000 ft (1828 m) past prior limits

First commercial 4-in. AutoTrak G3 runs

2006 AutoTrak X-treme gains commendation in BG Chief Executive Annual Innovation Awards for value delivered in a challenging multilateral well development offshore India

While our steering unit is a key component in any AutoTrak system, the AutoTrak G3 RCLS system represents more than just a steering tool. AutoTrak G3 is a fully integrated drilling and evaluation system that incorporates our highly advanced OnTrak MWD/LWD and two-way communications and power.

Integrated MWD/LWDIn an AutoTrak G3 BHA, the OnTrak sensor sub is placed directly above the steering unitdelivering accurate, near-bit measurements for enhanced efficiency and navigation capabilities. These while-drilling measurements include directional information, vibration/dynamics monitoring, borehole pressure, dual-azimuthal gamma ray and multiple propagation resistivity.

We engineered the OnTrak sub with enhanced reliability in mindensuring accurate and dependable data acquisition with dual gamma detectors, multiple compensated resistivity antennas and redundant power sources. The tool can measure downhole dynamics, allowing drillers to immediately adjust drilling parameters to prevent tool failures and maximize drilling progress.

Two-way communications The systems Bi-directional Communication and Power Module (BCPM) provides power to the downhole measurement-while-drilling and logging-while-drilling (MWD/LWD) tools as well as fast, two-way communications between the tool and surface using mud pulse telemetrypermitting wellpath changes on the fly without interrupting the drilling process.

In addition to supplying communications and power for the AutoTrak system, the BCPM performs this function for our other LWD tools as well. Because our numerous MWD and LWD systems can communicate with the surface via a single downhole sub, tool length and sub placement is optimizedfacilitating closer sensor-to-bit measurements and simplifying BHA designs.

Industry-leading performance Today, AutoTrak G3 RCLS is recognized as the industry standard in rotary steerable performance and precision. In addition to our third-generation AutoTrak RCLS service, Baker Hughes can now offer two additional service options, AutoTrak X-treme and AutoTrak eXpress, to best meet our clients drilling requirements.

6AutoTrak X-treme The ultimate drilling machine

In 2005, drilling and evaluation experts took the capabilities and design of the AutoTrak system and made one fundamental addition that changed everything: an advanced and proven motor technology.

The AutoTrak X-treme RCLS employs a pre-contoured stator design with an enhanced drive train that creates an even more powerful directional drilling machine. The X-treme power section is fully integrated into the rotary steerable system to permit full communication between the MWD/LWD measurements and the AutoTrak steering unitdelivering pinpoint well placement capabilities together with penetration rates typically associated with the industrys most advanced performance motor systems.

In addition to an enhanced rate of penetration (ROP), the integrated downhole motor drives reliability by minimizing the wear on the casing, drillstring and bottomhole assembly (BHA), and decoupling LWD systems from bit dynamics.

Unique design for increased reliability, performance In contrast to conventional rotary steerable tools, our latest generation AutoTrak systems are designed with a high rotary speed specification (up to 400 RPM)making them ideal for running in conjunction with a downhole motor.

These systems feature a modular BHA architecture for more versatile BHA makeups. By positioning the X-treme Modular Motor immediately above the AutoTrak steering unit and below the OnTrak MWD/LWD sub, high power from the motor is delivered directly to the bit with minimal BHA length below the motor. The modular concept also allows us to offer near-bit gamma ray and resistivity measurements below the motor for applications where sensor spacing is critical.

With AutoTrak X-treme systems, the need for continuous high surface rotary speeds to attain high ROP from conventional rotary steering operations no longer applies. Now, drillstring rotary speed can be determined based solely on optimizing drilling dynamics and hole cleaning efficiency, avoiding harmful drilling vibrations and extending rig capabilities.

Proven resultsAs the AutoTrak X-treme system was deployed for field use, it quickly established many drilling performance benchmarks that set it apart from other rotary steerable technologies. These include: Superior power generation 50 to 100% higher than conventional, elastomer-based power sections, while decoupling drillstring vibration to deliver the maximum possible energy to the cutting structure of the bit

Enhanced reliability at exceptionally high rotary speed, up to 400 rpmensuring superior hole cleaning for lower risk operation at high ROP

Increased record-breaking ROP, even in extreme, harsh environments, regularly drilling over 100% faster than other rotary steerable systems

Reduced drillstring and casing wear by 50%critical in re-entry and complex multilateral well operations

Extended horizontal step-out capability on demanding extended reach wells

The answers for enhanced drilling speed and efficiency You can measure the performance of the AutoTrak X-treme RCLS just by measuring time. Projects scheduled for 10 days completed in two days. A 9,000 ft (2743 m) single-run section with an ROP 50% higher than previous systems saved five drilling days. A 13,200 ft (4023 m) trilateral well completed in just 107 drilling hours at a record-breaking 123 ft/hr ROPand released the rig 12 days early. All achieved by drilling continuously at maximum speed with no compromise to steering precision and minimal or zero non-productive time.

Maximum power, speed and precision Theyre all factors in saving time. And on any major drilling project, time is money. Saving time and money is the value of the AutoTrak X-treme RCLS.

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9AutoTrak eXpress Advances in efficiency

Grounded on the basicsIntroduced in 2008, the AutoTrak eXpress system is specially designed to deliver enhanced efficiency and drilling performance in established fields with well-documented geology and reservoir targets.

Its the system you use where your 3D field model and well profile are well understoodbut where well construction economics are dependent on services that enable faster, more cost-effective and safer approaches to drilling than conventional drilling services.

AutoTrak eXpress is the service you need when real-time formation evaluation is not critical, but real-time drilling precision is paramount. When conventional well profiles cant do the job, but true 3D directional drilling fits the objectives. When slide drilling is not an option in holding and tightly maintaining trajectories. When continuous drillpipe rotation requires controllable buildup rates of up to 10 at 100 ft (30 m). When the job requires sharp turns of 8 and beyond per 100 ft. And when extended reach and multilateral drilling capabilities will let you cover the spread of your reservoir with fewer rigs and wells.

The AutoTrak eXpress system simplifies challenging directional drillingfor both your wellbore placement and economic plans.

Reducing complexity enhances rigsite efficiencyAutoTrak eXpress is designed for simple, easy, automatic operation. No special surface equipment is needed to change well trajectories. In fact, existing rig equipment can be used to adjust steering targets on the flywithout pulling off bottom or interrupting drilling.

Our proven computerized rotary steering principle and closed-loop downhole controls provide simple, reliable directional control. Should the systems near-bit sensor detect deviations from the wellpath, internal hydraulics automatically deliver optimum steering forces to the steering pads to keep the well precisely on track.

Benefits of the AutoTrak eXpress system include: Maximized drilling efficiency and wellbore placement with automated rotary drilling

Reduced risk of differential sticking via continuous rotation

Extended horizontal and lateral capabilities for maximum payzone contactincreasing production rates and extending the life of the well

Improved hole quality and hole cleaning to reduce completion risks

When economy, efficiency and simplified steering precision are your route to profitability, our AutoTrak eXpress system provides the right answers needed to advance your reservoir performance.

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Delivering the power and the knowledge

One key to our AutoTrak services performance and precision is the critical, real-time directional and formation evaluation data provided by the Baker Hughes suite of advanced MWD and LWD services.

Our integrated OnTrak sensor sub is placed directly above the steering unit or power section in the AutoTrak and AutoTrak X-treme BHA to ensure accurate, near-bit measurements (azimuthal gamma, resistivity, directional, borehole pressure and vibration/dynamics data) while drilling.

The results are clear, precise reservoir navigation capabilities integrated into the rotary steerable system for enhanced steering precision and efficiency.

Seamless integration with advanced evaluation servicesAdditional Baker Hughes formation evaluation technologies can be incorporated into AutoTrak and AutoTrak X-treme BHAs to provide a more comprehensive view of the surrounding formations and reservoir, including: AziTrak deep azimuthal resistivity for increased reservoir navigation capabilities and simplicity via the detection of bed boundaries and oil/water contact zones hours before they can be detected with conventional sensors

MagTrak LWD magnetic resonance for precise, real-time answers to critical questions regarding fluid volumes, total and effective porosity and permeability estimations in production zones

SoundTrak advanced acoustic LWD for compressional and shear-wave travel time in fast and slow formationsallowing real-time access to critical formation answers to maximize drilling efficiency and wellbore placement

TesTrak formation pressure-while-drilling for improved pressure management, enhanced wellsite safety and increased reservoir knowledge

LithoTrak advanced LWD porosity for accurate nuclear measurements and formation density images

StarTrak high-definition advanced LWD Imaging for high-resolution, 360 imaging comparable to static LWD logsin real time.

So as you drill, you can make on-the-spot, petrophysical field evaluations and make steering changes on the fly based on real-time positional data or even steer to specific reservoir properties. The result: nonstop drilling with unprecedented speed and precision across a wide range of hole sizes, including full LWD capabilities in slim-hole applications.

Integrated designs, real-time dynamics enhance reliability Our total system approach to directional drilling applications employs expertise in BHA design and bit selection to achieve optimum drilling efficiency and reliability. And thanks to the modular design of our LWD suite, the placement of individual logging subs can be adjusted based on the clients logging objectivesensuring the most critical measurements are as close to the bit as possible.

The Baker Hughes CoPilot real-time drilling optimization service pushes performance limits even further. This industry-leading servicebased on comprehensive pre-well planning, a versatile real-time downhole data acquisition and diagnostic tool, and thorough post-well analysisreveals insight into downhole conditions with a level of detail never before available. At the wellsite, the CoPilot service helps drillers optimize AutoTrak drilling performance by monitoring a variety of downhole conditions and proactively managing drilling parameters.

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AutoTrak RCLS

AutoTrak eXpress AutoTrak G3 AutoTrak X-treme

Automated closed-loop steering Near-bit inclination sensor Logging-while-drilling services Directional service only Integrated mud motor Memory log processing Wired-pipe telemetry

High-speed telemetry

Real-time drilling diagnostic and optimization service

Real-time imaging service

Reservoir navigation service

Downlink setupFlow rate sequence,

Manually adjusted rig pumpsComputer-controlled

Bypass actuatorComputer-controlled

Bypass actuator

Pressure rating 20,000 psi 20,000 psi

30,000 psi

20,000 psi

Optional high-pressure service

Temperature rating 302f (150c) 302f (150c) 302f (150c)

Optional high-temperature service

= included = optional service on request = not available

30,000 psi

347f (175c) 347f (175c)

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