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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

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