Smart Well Completions

Bruce Techentien Halliburton GBTS Houston Texas

SmartWell Technology Overview Mexico

What is WellDynamics?
An independent company established as a
49% 51%

Joint Venture
by
WellDynamics bv (The Netherlands)

Halliburton Energy Services

and

Shell Technology Ventures

WellDynamics International Ltd (UK)

WellDynamics Inc (US)

WellDynamics Norge as (Norway)

WellDynamics is the worlds market leader providing intelligent completion technology.

SmartWell Completion Technology

A SmartWell completion enables the operator to remotely monitor and control well inflow or injection downhole, at the reservoir, with no physical intervention, to permit optimization of well, production and reservoir management processes.

Smart Waterflood Simulation

Elements of SmartWell Technology

Downhole flow control devices (Interval Control Valves) Downhole sensors Feed-through isolation packers
Interval Control Valve

HF1 Packer

Permanent Down-hole Gauge Cluster

 15% of discovered, uneconomic oil reserves in the UK Sector of the North Sea could be made economic by commingling.
Department of Trade and Industry (DTI) PILOT Undeveloped Discoveries Workgroup

SmartWell technology enables exploitation of marginal reserves and acceleration of hydrocarbon production through commingling of reservoirs.

Controlled Commingling with SmartWell Technology

Moving surface control downhole

World-wide, the oil industry produces more water than oil!

SmartWell completions permit the operator to optimize reserve recovery by management of injection and production profiles.
And reduce the amount of water produced too!

Waterflood and EOR Optimisation

Smartwell technology allows the operator to regulate or shut-off production or injection at each reservoir zone or each multilateral junction, without intervention.

Whats Wrong With This Picture?

Nothing if you like to invest in lots of wells and lots of surface infrastructure! Minimize CAPEX & OPEX Optimization of surface facilities: leveraged wellbores Eliminate interventions: reduce risk of well loss or HSE incidents

WellDynamics Offers Market Leadership in all Product Types

Full Range of Award-Winning Systems and Product Sizes:

SCRAMS - High Performance Digital Hydraulics - High Value Direct Hydraulics - High Value MC Line Low Cost

Economic Fit and Scope

SmartWell Systems for 300 to 30,000 BBL/d Wells

30,000bbls/d

Economic Threshold
MC w/ Direct Hydraulics Low end gauge PTS Manual SCU ESP/GL

HVC w/ Direct or Digital Hydraulics PDG, FO Manual / Automated SCU ESP/GL SoftFlow

IV-ICV w/ SCRAMS FO Automated SCU Direct Umbilical Long Distance (10Km+) Chemical Injection / SoftFlow

300bbls/d Range & Complexity of Offering

WellDynamics Offers
Global Installation Experience

Global Applications

+/- 240 Intelligent Completions Worldwide First installation August 1997 Majority of installations have been all hydraulic solutions Of the +/- 240 installations, WellDynamics has installed 130
Electro/Hydraulic SCRAMS installation

Field Reliability Performance

Downhole System Stability is Being Achieved
G ro u p B (h yd ra u lic flo w c o n tro l s ys te m s ) n o n p a ra m e tric re lia b ility a n a lys is
100 95

Reliability (% survive)

90 85 80 75 70 65 60 55 50 0 20 40 60 80

S y s te m R e lia b ility M is s io n R e lia b ility

T im e T (m o n th s )

Demonstrated Economic Value

Norsk Hydro Oseburg B21
Control gas influx in horizontal well $5.7million USD incremental value / 400k bbl incremental in 3 months Control distribution of WAG in injectors, water/gas influx in producers 3600 bbl/d incremental; NPV up to $55 million USD est. on one well Control water influx in long horizontal well with ESP A.L. Estimated incremental reserves of 800k bbl (25% increase in reserves) Control water influx in 4 leg multi-lateral well Incremental 96k bbl oil production in 2 months

Statoil Snorre B Field Development BHP Douglas Field D-17

Petroleum Development Oman Saih Rawl 108

Case Study 1Horizontal w/ Laterals & ESPs

Sweep and water breakthrough problems. Average water breakthrough for the field was 75%.

Challenge Carbonate Reservoir 4 to 7 open hole laterals Reduce length of laterals to improve efficiency ESP was a requirement

Case Study 1Horizontal w/ Laterals & ESPs

Sweep and water breakthrough problems. Average water breakthrough for the field was 75%.

Solution Use of an intelligent completion to: control contribution of laterals reduce water cut of produced fluids improve waterflood efficiency reduce dehydration and water disposal costs Implementation Successfully installed 4 Zone Digital Hydraulic System Integrated with an ESP Hydraulic disconnect separates Upper (ESP) from Lower (Flow Control Digital Hydraulic) completion

Case Study 2 : Multi Layered Reservoir Commingled

SmartWells to improve rate, reduce water cut & interventions

Conditions
Sand stone Deepwater Water drive VIP reservoir model used Maximum
Field / well rate BOPD / MMCFD P
drawdown

= 500 psi

Water cut / layer

Minimum
BHP = 2000 psi Crossflow

Case Study 2 : Multi Layered Reservoir Commingled

Reduced wells from 9 to 6 with SmartWells

Case Study 2: Multi Layered Reservoir Commingled

Base Case SmartWell Case

Acceleration Pays Incremental Production Results

Incremental 4 Mbbls in 2 yrs Reduce cross flow by 2500 bopd

Oil not Water Reduced Maximum Water Rate Reduce handling facilities Results
Reduced water peak by 5000bwpd