BaroidOverviewJohnTarantoJrTechnicalManager.BaroidChinaAugust1,2012HSEPrinciplesIncidentsarepreventableManagementcommitmentEachindividualisresponsibleComplianceismandatoryFirstconditionofemploymentStopworkauthorityHowWeFitIntoHalliburtonDRILLING&EVALUATIONSperryDrillingWireline&PerforatingLandmarkSoftware&ServicesConsulting&ProjectManagementCOMPLETION&PRODUCTIONBaroidDrillBits&ServicesTesting&SubseaCompletionToolsCementingProductionEnhancementBoots&CootsMulti-ChemWhyBaroid?DeepExperienceinLab/Field1925 Filedpatentforfirstbarite-based

drillingfluid1930 Firstmudschool1932 Firstmud-testingproceduresandkit1939 Firstmud-loggingservice1940s Pioneersservicebyairandsea1950s Inventsfoamdrillingtechnology1960s Inventsoil-basedfluid,Invermul?system1970s Developsnewfluidsforhostilegeology1980s Developsmudlooptesting,improves

wastemanagement1990s Pioneersbiodegradableinvert

drillingfluids2000s Rollsoutfirstfamiliesofclay-freesynthetic

andhighperformancewater-basedfluids

2010s Introducesautomatedmudmonitoring equipmenttoindustryTheStartIn1929threeCompanies-CaliforniaTalcCo.,NationalPigments&Chemical,NationalLeadCompanyCaltalc=AquagelNL=BaroidMergercompletedin1931toformtheBaroidSalesCompanyTrainedanddispatchedSalesmenequippedwithaMarshFunnel,Hydrometer,SandTubes.1933BaroidopenedanofficeinHoustonTexas1931193319351948–theMobileMudLab1958Areaswith

LMPsGlobalLabsRegionLabsCountry/ArealabsBaroidLiquidMudPlantandLaboratoryLocationsRegionLMPCapacity

SouthernUnitedStates70,550bblNorthernUnitedStates109,366bblGulfofMexico258,200bblLatinAmerica127,359bblEuropeandSubSaharaAfrica404,865bblMiddleEast/NorthAfrica131,245bblAsiaPacific131,665bblEurasia24,106bblThousandsofExpertsWorkingtogethertosolveyourchallengesWELLSIGHT?

ExpressDrillingFluid

Graphics?ConsistentQualityIdentifythe

ChallengeSolution

CreationOperations

ProgramOperations

ExecutionKnowledge

CapturePresentthe

ValueCritical

FirstWellExecutionProblemResolutionForAnyChallengeResourcePlaysGeologicalEnvironmentalOperationalLogisticalCustomized

FluidsOffsetDataCurrentFluidsPerformanceProductOptimizationLabValidationMaterialRequirementsSuccessfulApplicationGTFARootCauseOngoingWellIssueCountrySupportRegionSupportGlobalSupportPerformanceReviewRecapBenchmarkingReviewPublicationRigorousProcessExecutionOptimizingPerformanceofRelatedServicesHolecleaningSurfacewastemanagementDrillbitperformanceDrillingperformancePressurecontrolDamagetoboreholeandformationEquipmentcorrosionLoggingaccuracy,efficiencyBoreholesmoothness,straightnessCasingoperationsefficiencyPermeabilityofformationProductionOurOfferingsDrillingFluidsGELCHEMPOLYMERBASEDCLEARWATER

(FLOCWATER)GEMCLAYSEAL?K+BASEDBARASILC?CRYSTAL-DRIL?BOREMAX?PERFORMADRIL?HYDROGUARD?INVERMULIEFENVIROMULIEFPETROFREEIEFXP-07IEFBAROID100LSOBMINTEGRADEIEFENCOREIEFINNOVERT?IEFACCOLADEIEFWater-BasedFluidsNon-Aqueous-BasedFluidsHigh

PerformanceAll–Oil

FluidsGeneric

FluidsBasic

FluidsInhibitive

FluidsHigh

PerformanceReservoirFluidsNonDamagingDrill-InFluidsFiltercakeRemovalN-FLOW?SystemsWellboreClean-UpPackerFluidsCompletionBrinesDisplacementOptionsOil-BasedOptionsWater-BasedOptionsSOLUBLEBRIDGINGMATERIALTHIXOTROPIC

FLUIDSOPTIMZIED

POLYMERSYSTEMSRETURNPERMEABILITYTESTINGALLOILSYSTEMSOPTIMIZEDEMULISIFIERSYSTEMSREDUCEDSOLIDSRETURNPERMEABILITYTESTINGMECHANICAL

CASINGCLEAN-UPCHEMICALCASINGCLEAN-UPPUSH/DEBRISPILLOPTIMIZATIONCFGANALYSISCHLORIDESBROMIDESFORMATESCORROSION/O2/BIOCIDEPACKAGESSCALEINHIBITORSAQUEOUSSYSTEMSNON-AQUEOUSSYSTEMSINSULATINGSYSTEMSACETICACID(NFC2)FORMICACID

(BDF325)LACTICACID(BDF

412&BDF408)SURFACTANT

REMOVAL(BDF442

&BDF443)WasteManagementThermaldesorptionunit(TDU)Thermo-mechanicalcuttings

cleaner(TCC)DissolvedairflotationunitsRotaryvacuumdryerFull-circlecuttingsreinjection

processWastewatertreatmentHighvolumecentrifugesHigh-flowfiltrationSolidscontrolOn-the-fly(OTF)mixerXtraflow?shaleshakerscreensSwiftPlant?fluidmixingand

storagefacilitiesPneumaticconveyingsystemsHCB?SupaVac?HandlingTreatmentDisposalChallenges/SolutionsCHALLENGE:HP/HTCustomizedsolutionsformanyHP/HTapplicationsWater-basedfluidsstableupto450°FInvertemulsion-basedfluidsstableupto550°FHighlyaccurateengineeringtoolsProvenglobaltrackrecord,includingingeothermalCHALLENGE:

DeepWaterCustomizedsolutionsformanyDeepwaterapplicationsLogistics/serviceexecutionHighlyaccurateengineeringtoolsEnvironmentalcomplianceN-SOLATE?thermallyinsulatingpackerfluidCHALLENGE:UnconventionalCustomizedsolutionsforallShalePlayapplicationsSHALEDRIL?familyoffluidsUniquechemistriestoenhancewellborestabilityCHALLENGE:HeavyOilCustomizedsolutionsforalltypesof

HeavyOilapplicationsOptimizedhighbitumenspecificfluidSolutionsforshallow,unconsolidatedformationsCHALLENGE:ImprovedNetRecoveryCustomizedsolutionsforallreservoirapplicationsDRIL-N?familyoffluidstominimizewellboredamageIntroductionofDRIL-N-STIM?technologyIn-houseReturnPermeabilitytestingcapabilities/expertiseEngineeredfluidssolutionsCustomizedfor:ValueROPNPTSafetyProductionCaseHistoriesExceedingPredictedProductioninTightSandstoneSaudiArabia:EngineeredBaroidFluidSystemsHelpSaudiAramcoExceedPredictedProductionRateCASESTUDYCLIENT:SAUDIARAMCOLOCATION:UNAYZAHFORMATION,CENTRALSAUDIARABIACHALLENGE:Minimizeformationdamagetothetightsandstonereservoirtoppedbyamajorshalebodywhiledrillingalonghorizontalandultimatelyincreasereservoirproducibility.SOLUTION:BaroidusedINVERMUL?oil-basedmud(OBM)sothattheshalewouldnotdestabilize.Asolids-free,oil-baseddrill-influid(DIF)minimizedformationdamage.Sandscreensrantobottominthereservoirandtheclaysectionwasisolatedbyblankpipe.TheBaroidN-FLOW?breakersystemremovedtheoil-wetfiltercakeeffectively.RESULTS:SaudiAramcopersonnelreportedoilflowingimmediatelyuponsubmersiblepumpactivationatasteadyproductiverate,significantlyexceedingoffsetproducer’sperformance.NorthSea:INNOVERT?Oil-BasedMudProvidesCostSavingsonSub-Horizontal(70°)Well

INNOVERT?Oil-basedMudProvidesCostSavings

onSub-horizontal(70°)WellCASESTUDY

LOCATION:NORTHSEACHALLENGE:DrilloffalongNorthAlwyntangentialfrom2,882mto6,245m.ThemainrisksincludedtorquelimitationsoftheTopDriveSystem,stuckpipe,plusholeinstabilityandcleaningat

highangles.

SOLUTION:INNOVERT?system’spolymersremoveorganophilicligniteandclaythatcausedeepwaterproblems.Gelstrengthsarehighwhenyouneedthem,butbreakeasilyunderslightpressure.FewersolidsandhighrheologygeneratelowECDswhileimprovingholecleaningandROP.RESULTS:TheINNOVERTsystem’slowmaintenancecharacteristicsprovideda57%reductionincostforthe121/4”sectionanda63%reductionforthe81/2”section.USDenver:Extended-reachlateralsintheDenver-JulesburgBasin,Jul2011 HalliburtonDrilledtheLongestHorizontalWell

intheDenverJulesbergBasininRecordTimeCASESTUDY

LOCATION:COLORADO,U.S.CHALLENGE:Extended-reachlateralsincreaseproductionrateswhileminimizingcosts.However,theyaremuchmorecomplexthanstandardhorizontalsduetohightorqueanddragondrillpipecausedbywellborefriction.SOLUTION:Halliburtondevelopedacustomlubricantcocktailandapplieditearlyinthelateral.TeamsalsousedBaroid’sDrillingFluidGraphics(DFG?)software

tosimulatefluidpropertiesandcuttingsremovalinrealtime.RESULTS:Arecord-setting,16,020-foothorizontalwellinjustunder

10dayswithnononproductivetimeorsafetyincidents.Halliburtondrilledthe9,124-footlateralsectionin119hours–withonebitinonerun.USCalifornia:CustomizedLostCirculationTreatmentsforHighlyFracturedGeothermalWellsCustomizedLostCirculationTreatmentsHelpResolveSevereFluid

LossesandReduceCostsinHighlyFracturedGeothermalWellsCASESTUDY

LOCATION:GEYSERS,NORTHERNCALIFORNIACHALLENGE:Highlyfracturedvolcanicreservoirscausedmassivefluidlosses.Oneoperatorconsidereddiscontinuingadrillingprogrambecause44cementplugswereusedtofightlossesinasinglesectionofwell.SOLUTION:HalliburtonWellSET?analysisrecommendeda50ppbHYDRO-PLUG?hydratinglostcirculationsqueeze,aswellas25ppbSTEELSEAL?1000resilientgraphiticcarbonand25ppbBARACARB?600groundcalciumcarbonate.Afterthreepills,theoperatorwasabletoresumedrilling.RESULTS:Theoperatorreachedatotaldepthof4,395feetwithoutcementplugs.ComparingthecostoftheLCMtreatments

tocementingoperations,theoperatorsavedapproximately$1.5million.CASESTUDY

LOCATION:NEUQUéN,ARGENTINACHALLENGE:Designafluidthatwouldtolerate425°F,minimizefluidinvasion,inhibitreactiveformationsanddeliveraningaugewellbore.Somepreviouswellshadtakenupto17daystocompletethe12.25inchintervalalonebecauseofseverelosses,swabbing,stuckpipe,fishingoperationsanddowntime.SOLUTION:Baroidformulatedalow-solidsfluidbysubstitutingBARAZAN?DPLUSxanthanbiopolymerforbentonite.Saltwaterinflux,reactiveclay,CO2andelevatedtemperatureswereencounteredwithnoadverseeffecttofluidproperties.RESULTS:Theoperatordrilledandcompletedtheintervalin12days–fivedayslessthanoffsetwells.Caliperlogsshowedlessthan3%washout,muchlessthanpreviouswells.Theentirewellwascompleted22daysunderplan.EngineeredWater-BasedFluidsHelpOperator

Save22DaysonChallengingGeothermalWellWater-BasedFluidsforUltraHigh-TemperatureApplicationsSTEELSEAL?LostCirculationMaterialandBARACARB?BridgingAgentHelpApacheImproveWellboreStabilityandCutCostsby50%CASESTUDY

LOCATION:NEUQUéN,ARGENTINACHALLENGE:Inonewell,Apacheencounteredwellboreinstability,stuckpipe,casingissuesandcuttingsissues.Thewell,withasidetrack,reachedTDin49days,24dayslongerthanplanned.Theirlocalmudcompanydidnotuseanybridgingorsealingmaterials.SOLUTION:Onthenextwell,Baroidrecommendedanengineeredwater-basedmudcustomizedwithashalestabilizer,KClbrine,STEELSEAL?LostCirculationMaterialandBARACARB?BridgingAgent.RESULTS:Thesecondwellwasdrilledin25dayswithoutanywellborestabilityissuesorstuckpipe.Comparedtothefirst,ApachesavedUSD$1.15milliononrigcosts.Mudcostswerealso

9%lowerthanplanned.STEELSEAL?LostCirculationMaterialandBARACARB?

Bridging

AgentHelpApacheImproveWellboreStabilityandCutCostsby50%OptimizingPerformance–CaseHistoriesHolecleaningSurfacewastemanagementDrillbitperformanceDrillingperformancePressurecontrolDamagetoboreholeandformationEquipmentcorrosionLoggingaccuracy,efficiencyBoreholesmoothness,straightnessCasingoperationsefficiencyPermeabilityofformationProductionCASESTUDY

LOCATION:NorthWestGermanyCHALLENGE:TheoperatorneededS-shapeddirectionalwellswithafivemeterradiustargettogainaccesstothesaltdomeundertheJemgumklosterfieldtocreatetennewgasstoragecaverns.Halliburtonneededtodrillthedifficult23-inchtopholesectionthroughClay/Claystone/ChalkandAnydrite,andreducethetimetakentodrillandcorethewells.SOLUTION:HalliburtonprovidedanintegratedsolutionthatincludedSperrydirectiondrillingandmeasurement-while-drillingservices.BaroidworkedcloselytoprovidefluidsolutionstoimproveholeandBHAcleaningsocriticaldoglegscouldbeachieved.RESULTS:Halliburtoncompletedthejobsixmonthsaheadofschedule.CombinedtechnologiesfromSperryDrillingandBaroidsavedthecustomertimeandmoneywhilestilldrillingaccuratewells.DrillingPerformanceIntegratedWorkflowDeliversGas

StorageCavernProjectSixMonthsEarlyCASESTUDY

LOCATION:OnshoreMboundiField,CongoRepublicCHALLENGE:ThehighlyreactivePointeIndienneshaleintheCongoMboundifieldposedahighriskofstuckpipeduetoswellingtendencies.Operatorsincurredahighpercentageofnonproductivetimefishingforstuckbottomholeassemblies.Severalwellshavebeenpluggedandabandonedasaresult.SOLUTIO