Drilling & Measurements

Introduction

D&M Segments
DD MWD LWD - DB
Measurement Services
Measurements While Drilling Logging While Drilling

MWD/LWD
Drilling Services
Drill Bits Steerable systems (Rotary & Motors) Engineering and planning (DEC) Performance applications

Drilling Mechanics Remote Communications

Drill Bits Steering System

Our Direction
Lowering Lifting Costs through Reduced Drilling Costs & Improved Productivity

Real-Time drilling solutions

Improve risk management and reduce NPT

Real-Time petrophysical solutions

Precise wellbore placement with FE

Innovative drilling and measurement systems

Process improvements to change the game

Mode of Operation
1. Drill the upper, non productive section as quickly as possible Stuck Pipe Avoidance Reduce NPT (Back Reaming, DP Washouts, etc) Reduce casing strings through design optimization (DEC)

2. Drill the production zone with the following objectives: Optimize well placement for maximum production Streamline bore hole geometry to reduce rugosity

Minimize NPT due to decision lag time

Drilling & Measurements

PowerDrive Rotary Steerable System

System Specifications

Rotary Speed Range Max. Operating Temp. Weight Build Rate Available Hole Size Configuration Downward Communications

PowerDrive675 40 to 220 rpm 250 F [120 C] 1720 lbm [780 kg] 0 to 8/100ft 8.5, 9.5, 9.87 in.

PowerDrive900 40 to 200 rpm 250 F [120 C] 2376 lbm [1080 kg] 0 to 5/100ft 12.25, 14.5, 14.75 in

Mud flow variation (typically 20% variation)

Mud flow variation (typically 20% variation)

PowerDrive Reliability
350000 250

Total Feet Drilled (all Sizes) Total MTBF (All sizes)

280000 200

Footage Drilled

210000

150
MTBF

140000

100

70000

50

0 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 1996 1997 1998 1999 2000 2001

Alask a
Norway Denmark Holland UK Azerbaijan

Newfoundlan d Nova Scotia

S.China Sea Sakhalin GOM Qatar Abu Dhabi S.Arabia

Venezuela Trinidad

Nigeria Congo Angola E.Guinea

Balikpapan Brunei Malaysia Indonesia Phillipines

W.Australia R&M Base R&M Base planned Activity planned in 01.

PowerDrive Rotary Steerable System

Field proven in wide range of operational conditions Fully rotating BHA permits backreaming and minimizes lost-in-hole risks

Compact and Reliable BHA

Robust Design

Interchangeable bias unit at rig site

Compact system with length < 15 ft provides wide range of measurements closer to the bit than conventional motor assemblies

Functional Design

Pad out

Pad in

Optimal Bit Design for Rotary Low Steeringaspect ratio for tight radius drilling

Gauge PDC cutters for aggressive side cutting action

Optional DiamondBack cutters for high durability

Open bit face for fast cuttings removal; works with all mud types Short gauge length coupled with continuous action of paths produces excellent hold quality without reducing steerability.

PowerDrive: Job History

Deployed more than 600 times in locations covering North Sea, Asia, Middle East, South America, and North America

Depth range = 1283 to 37,001 ft

Maximum DLS = 11/100 ft in 8.5 hole, 5.5 /100 ft in 12.25 hole. Inclination range = 0 to 144 (only commercial rotary steerable system that is capable of a vertical kick-off) Longest runs (as of July 2001)

World Record in 8.5 hole: 17,283 ft in a single run in 8.5-in. hole with an 8.5-in. EHP41A Reed Hycalog bit (176 continuous operating hours) World Record in 12.25 hole: 13,799 ft in a single run in 12.25-in. hole. Danish sector of N.Sea. (163 continuous operating hours)

Technical Benefits

Designed as a drillers tool: No non-rotating external parts no dependence on friction with hole wall no limit on backreaming less risk of stuck tools

Simple flow change communication no interference with MWD telemetry

no complex and unreliable surface equipment with long rig-up time

Highest MTBF of any RSS (client data)

Proven steerability up to 10/100ft

Worldwide network of R&M facilities in 7 locations (11 by year end 2001)

Hole Quality

Smooth profile Good gauge No spiraling Reduced cuttings beds

New Developments PowerDrive Xtra

Commercial introduction in Q3 2001

Enhanced reliability, real-time communication & steering capabilities Includes:
e-mag telemetry for near bit inclination and azimuth, and tool setting in both 6.75 and 9 tools New valve design with improved system hydraulics providing greater predictability of steering response Mechanical enhancements to control and biasing units

PowerDrive Xtra Key Features Realtime communication PowerDrive Xtra Of tool status, near bit
Optimized Reed-Hycalog Bit designs inclination and Azimuth to surface with Mk2 e-mag system Sensor and electronics packages redesigned to higher standards of reliability and accuracy

Optimized hardfacing on pads to increase life in abrasive formations

Optimized shock and vibration resistant suspension system

Optimized valve Design to maximize Steering capabilities

Carbide coated torquer sleeves To increase run life

High strength and toughness hinge pins to increase shock and 10 Initials fatigue resistance

Bias unit component redesigned to increase fatigue life and reduce

Balanced wide flow range turbines

Valve Modifications
Problem:

valve lifting & sticking leading to loss of steering response

Solution:

Redesign of valve with new timing, valve shape and spring loaded shaft

Drilling & Measurements

PowerDrive Example Applications

Example: ERD Well in China

1739 m drilled in one run of 174 hr Drilled 330 m/day compared to previous best of 220 m/day Saved $536,000 Eliminated difficult directional control found with conventional BHAs

Increasing ROP

Complex Well Paths

Improved drilling efficiency 98 m/day with PDM, 193 m/day with RSS U and W shaped wells, up to 144 inclination

W ELL

World Record 12-1/4 Run 13,799ft

Statoil
FIELD

SCA-7

Siri (76803)

STRUCTURE

Siri A

Grid North Tot Corr ( W 3.28 ) Mag Dec ( W 1.68 ) Grid Conv ( E 1.595 )

Vertical Section View

Tie-In 0.00 0 MD

0
NORTH >>>

Survey Station 0.00 120 MD Survey Station 2.50 195 MD

0 2000

1000

2000

3000

4000

5000

6000 2000

400

Survey Station 10.00 425 MD

PLAN VIEW

Scale (1 cm = 500 meters)

True Vertical Depth (1 cm = 200 meters) Elev Ref: RKB(47.80m above MSL)

1000

Az im ut h

Build 1.50/30 m

40 .6 1

1000

800

Survey Station 30.00 850 MD

0
Build 1.70/30 m

SCA MWD Surveys

Hold Azimuth 90.00

Workplan IM T1 T2

SCA-Well prop 5

Ho ld

1200
Survey Station 77.41 1727 MD
Hold Angle 77.41

<<< SOUTH

1000

2000
<<< WEST

3000

4000
EAST >>>

5000

6000

SCA MWD Surveys

1600
Proposal Survey

2000

IM T1

1000

2000

3000

4000

5000

6000

Vertical Section Departure at 78.43 deg from (0.7, 2.1). (1 cm = 500 meters)

Quality Control Date Drawn: 10-Jul-2001 Drawn by: ______________ Checked by: ______________ Client OK: ______________

Directional control - Build & Turn

Build (48-84deg Inc), Turn (184-264deg Az)

Vertical Section View

Drilling Hours 42, Circulating hours 50 Drilled to section TD

-1500 -1000
PLAN VIEW

4500
GE-02 MWD Surveys in 17 1/2" hole 13 3/8'' Casing Point

-500

-1000

Scale (1 in = 500 feet) -1000

GE-02 MWD Surveys in 17 1/2" hole

True North Tot Corr ( W 3.68 ) Mag Dec ( W 3.68 )

13 3/8'' Casing Point

True Vertical Depth (1 in = 500 feet) Elev Ref: RKB(85.00ft above MSL)

Proposal Survey

-1500

-1500

5000
<<< SOUTH

-2000
GE-02 280600 Horizontal Hole Rev.2

-2000

5500

GE-02 MWD Surveys in 12 1/4" hole Projection to TD GE-02 280600 Horizontal Hole Rev.2 9 5/8'' Casing Point

-2500

9 5/8'' Casing Point GE-02 MWD Surveys in 12 1/4" hole Projection to TD

-2500

500

1000

1500

2000

-1500
<<< WEST

-1000

-500

0
EAST >>>

Vertical Section Departure at 262.54 deg from (-68.6, -20.8). (1 in = 500 feet)

8498ft in 1 Run - Tangent, Build & Turn

0 2000 4000 0

128.5 drilling hrs. 171.2 pumping hours. 3D Directional control while always rotary drilling Excellent hole cleaning throughout Manageable ECD No time lost for wiper trips Higher overall ROP Optimum torque and drag results Steady consistent deviation with no large hidden doglegs Low tortuosity

Start of Run 141.0Az 6787 MD

0 -2000 -2000

13 3/8'' Casing Point Vertical Section View

2000
True North Tot Corr ( E 4.30 ) Mag Dec ( E 4.30 ) True Vertical Depth (1 in = 2000 feet) Elev Ref: Rotary Table(87.40ft above Mean Sea Level)

-4000

-4000

Proposal

4000

Survey

-6000

-6000

13 3/8'' Casing Point 43.22 6698 MD 5878 TVD

6000

End of Run 186.1Az 15285 MD

-8000 -8000

Start of Run 44.25Inc 6787 MD

Shetland Clay 8430 MD 6983 TVD

8000 -10000 -10000

End of Run 73.15Inc 15285 MD

Cromer Knoll 12510 MD 9500 TVD 10000 Kimmeridge 14175 MD 10435 TVD Heather 15194 MD 10805 TVD 0 2000 4000

PLAN VIEW

2000

4000

6000

8000

10000

Vertical Section Departure at 185.93 deg from (-303.9, -2.9). (1 in = 2000 feet)

Drilling & Measurements

PowerPak Steerable Motors

PowerPak Overview
60 models from 2 1/8 in. to 11 1/4 in. PowerPak XP, HF & GT extended power sections PowerPak XF & XC short radius drilling Oil seal or mud lubricated bearings

Bearing Section Design

Mud-Lubricated radial & axial bearings Single-piece forged drive shaft Optimized design for minimum erosion & pressure drop

High Performance Motors

12 new designs: Establish PowerPak Motors as the most versatile in the industry. High Performance drilling

High torque - PowerPak GT motors

4.75, 5.00, 7.00 & 9.62 (to 18kft.lbs)

High Speed - PowerPak HS motors

4.75, 6.75 & 9.62 (to 600 rpm)

High flow - PowerPak HF motors

5.00 ( 400 gpm), 7.00 (1000gpm)

Interference fit
Correct operating interference +0.020 Elastomer swell with temp and fluid absorption Elastomer compression from pressure PowerFit software to calculate set up under shop conditions

PowerFit
PowerPak Interference Calculator. Version 1.1b (23 Mar '98) Motor Code
A475XF4516 A475XXP5683 A475M7822

Well Data BHCT. / F 175 TVD. / ft. 18500 Fluid density / ppg 13 Measured Rotor & stator Dimensions / in. 4.200 2.800 3.540 -0.040 0.030

Motor Running Data Expected Pressure drop across motor / psi 300 Mud Type
Water based Oil based (Diesel) Oil based (Synthetic)

Interference fit
Thermal expansion

A475XP7838

Drilling fluid absorption

Hydrostatic compression

Workshop Temp. / F 70 Motor Dimensions Rotor Major Diameter Rotor Minor Diameter Stator Minor Diameter Measured Interference / in Recommended Interference / in

Stator Serial Number Rotor Serial Number Assembly date

Set up under shop conditions

Acceptable deviance 0.015

Use standard stator and standard rotor

Stator Elastomer

Typical life of 100400hrs Typical failure modes

Fatigue Chemical degradation Heat build-up (Hysteresis)

PowerPak - Slim-hole GT Motors

Summary

PowerPak operated for >300k hrs p.a. with MTBF>1600hrs PowerPak GT High torque tools provide record breaking performance.

PowerPak HS tools provide maximized power for Impreg Bit applications.

PowerPak HF tools designed for high flow with no compromise in reliability.

Drilling & Measurements

Measurements at the Bit

 Trajectory control with immediate information on bit direction and BHA tendencies Electromagnetic transmission of survey and geological data to the MWD Data transmitted to the surface via MWD telemetry

Steerable Systems - GeoSteering Tool

The GeoSteering Tool incorporates drilling and Evaluation measurements into a standard Schlumberger mud-lubricated, steerable motor.

Steerable Systems - AIM

Measures where you are going, not where you have been

Steerable Systems AIM/GST

Example of the effects of sensor spacing

Stay in the target and reduce lost footage

New Systems: 2D Rotary Steerable

Drilling & Measurements

2-D Rotary Steerable for 6 hole

3 position hydraulic activating adjustable Stabilizer Confirms Position of Adjustable Stabilizer with AIM provides earliest indication of drop and build tendencies

AIM-VGS

Tool for 6 hole in field test 3 position, flow activated, Oil-sealed. Integrated with AIM for position confirmation Field tests in N.Sea, Saudi Arabia & Nigeria. 5 runs completed resulting in modifications to cylinders and seals

In-Development Systems for 8.5 and 4.75 hole (Q4 2001)

AIM - At Bit Inclination Measurement

Integral to Standard Power Pak Motors. Continuous Single-Axis Inclination ~1ft from Bit vs 40 ft for

MWD

Telemetry to 60ft behind Bit Rotating Near-Bit Stabilizer

20,000psi, 150 C Rating

200+hr Battery Life

Drilling & Measurements

Planning the Well Bore

PowerPlan
An integrated suite of drilling applications designed to optimize well planning and drilling. The trajectory is planned taking into consideration anticollision, BHA design and behavior, torque and drag, hole cleaning and other operational constraints. Access to extensive drilling, geological and petrophysical information is readily available to aid in well planning. Application modules are on the wellsite to monitor performance and to make plan modifications if necessary.

PowerPlan - Applications

GeoFrame Database
(POSC Compliant)

PowerPlan - Applications
Standard PC Look & Feel

PowerPlan - Well Design

Generate geometrical well plans for geological targets Build trajectories by section or from a list of standard curve profiles Take advantage of full graphing, plotting and reporting features

PowerPlan - BHA Tendency

Calculate torque and drag Analyze drillstring and BHA behavior Investigate different drilling operations

Compute loads and forces acting on your string Calculate equilibrium build and turn rates for your BHA

PowerPlan - BHA Management

Easily drag and drop components into your BHA Benefit from extensive catalogue of components Add new components to the database if required

PowerPlan - Hydraulics
5000 4000 3000 2000 1000 0 0

Pressure Drop Analysis

800 600 400 200 0

Hole Cleaning

100

200

300

400

500

600

700

50

Pump Flowrate (gpm)

100 150 200 250 Rate of Penetration (ft/hr)

300

10 9.9 9.8 9.7 9.6 9.5

0 100

ECD Analysis

150 100 50 0

A675M4548 (no nozzle)

200 300

400

500 600

700

50

100

150

200

250

300

350

400

Pump Flowrate (gpm)

Hydraulic HP

PowerPlan - Hole Cleaning

Perform hole cleaning analyses Calculate pressure losses and ECDs Perform rate sensitivity studies Calculate motor performance over entire trajectory and range of flow rates

PowerPlan - Drillstring Analysis

Tripping Loads Analysis
CSG_FF= 0.00 OPH_FF= 0.00 CSG_FF= 0.20 OPH_FF= 0.20 Trip in CSG_FF= 0.20 OPH_FF= 0.30 Trip in CSG_FF= 0.20 OPH_FF= 0.40 Trip in CSG_FF= 0.20 OPH_FF= 0.50 Trip in 60 Bore Hole: Borehole #1 Engineer: Cooper Client: Oil Co. Date: 07/17/97

TRIPPING LOADS ANALYSIS

50

40

30

20

10

0 3000 -10

3500

4000

4500

5000

5500

6000

6500

-20

-30

Bit Depth (ft)

PowerPlan - Anticollision
Close Approach Model anti-collision scenarios with traveling cylinder plots, spider maps and detailed proximity calculations

Visualize the 3-D result with GeoViz to ensure all geologic objectives are met

Drilling & Measurements

Drilling Services

Drilling Services Extended Reach Drilling

Extended Reach Drilling (ERD) Definition Horizontal displacement/TVD ratio > 2.0

Types of extended reach wells: Very shallow Very long Ultra long Designer

Extended Reach Drilling

Extended Reach Drilling

Challenges High ratio stepouts - long displacements Long open hole sections Hole stability issues Directional control and surveying practices ECD management Risk - cost of failure Continuous improvement to reduce costs Comprehensive contingency planning Rewards Utilization of existing locations and infrastructure Logistical requirements reduced Overall Capex reduction Environmental impact reduced Development of marginal field reserves Removes constraints of conventional drilling limitations ERD may be the only development option

Extended Reach Drilling

Planning Clearly defined goals Project management including support teams Risk assessment and contingency planning Execution Precision directional control Well stability management Formation evaluation acquisition Evaluation Continuous monitoring of performance Focus on reduction of costs

Extended Reach Drilling

ERD Modeling
Torque and drag analysis ECD and hydraulics analysis Optimization of directional profile plan

Validation of models Real-time Post analysis Calculation of friction coefficients

Length of cased hole significant factor MWD signal attenuation

Extended Reach Drilling

World Record

M-16SPZ well, Wytch Farm, drilled 10,728 meters stepout (35,196 ft

Deepest oil and gas well at 11,278 meters (37,001 ft) PowerDrive rotary steerable system for directional control No mechanical or electronic failures Well completed with 81/2 in. hole section

Extended Reach Drilling

Schlumberger is the drilling services leader in ERD Services provided globally for various clients including 9 of the Worlds Top 10 longest reach wells First to pass the 10 km barrier on Wytch Farm 1M-11SPY 1M16SPZ - World record stepout at 10,728 m (35,196 ft) [37,001 ft - 11,278 m measured depth] Repeated success on other projects - Total Austral wells CN-1 (34,728 ft displacement)

First to pass the 8 km barrier - Wytch Farm 1M-05SP (26,361 ft displacemen

Extended Reach Drilling

The Worlds Longest Step-outs
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Horizontal Measured Displacement Depth, ft 35,196 34,728 33,181 29,324 26,840 26,450 26,338 26,160 26,138 25,764 25,195 25,105 25,081 24,839 24,823 24,590 24,203 24,186 23,917 22,762 37,001 36,693 34,967 31,555 28,501 30,301 28,592 27,986 29,173 30,600 26,880 27,240 29,631 27,450 28,497 27,178 28,087 27,645 28,743 25,351 TVD, ft 5,371 5436 5266 5899 4914 9793 5265 5301 5358 9088 4932 5433 7074 6798 9340 6752 9400 9403 9147 6625 Operator BP Amoco Total BP BP Amoco Total Phillips BP Total BP Amoco Norsk Hydro Total BP Maersk RWE-DEA Phillips RWE-DEA Statoil Woodside Statoil RWE-DEA

Well
M-16Z CN-1 M-11Y M-14 CS-1 24-3 A-14 M-05 AS-3 M-15 30/6 C-26 CS-2 M-09 MFF-19C Dieksand 4 24-3 A-17 Dieksand 3 A2-T-2 GWA-13 33/9 C-2 Dieksand 2

Location, fields UK land Argentina, Ara UK, Wytch Farm UK, Wytch Farm Argentina, Kaus S. China Sea, Xijiang UK, Wytch Farm Argentina, Ara UK, Wytch Farm North Sea, Oseberg Argentina, Kaus UK, Wytch Farm Denmark Germany, Dieksand China, Xijiang Germany, Dieksand North Sea, Sleipner Australia, Goodwyn North Sea, Statfjord Germany, Dieksand

Schlumberger Drilling Service DD/MWD/LWD/PowerDrive DD/MWD/LWD/VISION/AIM DD/MWD/LWD/GST/PowerDrive DD/MWD/LWD DD/MWD/LWD/GST DD/LWD DD/MWD/LWD/GST DD/MWD/LWD/GST DD/MWD/LWD/PowerDrive DD/MWD/LWD/GST DD/MWD/LWD/GST/PowerDrive DD/LWD/VISION DD/MWD/LWD MWD/LWD DD/MWD/LWD

DD/MWD/LWD/GST

Extended Reach Drilling

The Future of ERD
Stepouts greater than 10 km now feasible Rig sizing issues Review of hole sizing requirements

New technology
ERD multilaterals Deepwater ERD Continuous improvement of technical limits

Information transfer

Drilling Services - Deepwater

Safe efficient solutions for the drilling conditions encountered in deepwater environments Well Stability Real-time pressure and temperature Real-time caliper Directional Control Wide range of steerable drilling systems Reliable strong MWD telemetry Formation Evaluation Extensive LWD measurements Wireline retrievable data Planning Comprehensive pre-job analysis and contingency planning On-site applications to track performance and make modifications if necessary

Drilling Services - Deepwater

Kick Tolerance requires exact measurements of downhole pressure

Drilling Services - Deepwater

Real-time Annular Pressure Measurements can detect and monitor shallow water flow.

Drilling Services - Deepwater

APWD provides accurate real-time ECD calculation while drilling

Example: ECD monitoring

Drilling Services - PERFORM

PERFORMance drilling by Risk Management Comprehensive Planning Real-time Solutions

Reduced Cost Reduced Non-productive Time

Drilling Services - PERFORM

The planning and reporting process of Schlumberger PERFORM services is handled by four components:

DrilMap is a continuously updated drilling plan with associated contingency plans,

DrilCast provides a daily reporting scheme which identifies anticipated drilling activities, DrilTrak records the history as a well is being drilled with measurement and observation information and DrilBase provides a database of events, procedures and processes which can be accessed for future well planning. The four Schlumberger PERFORM components replace ad hoc reactions with a systematic drilling process for efficiency gains which lead to overall cost reductions.

Drilling Services - PERFORM

PERFORM
DrilMap DrilCast DrilTrak DrilBase

LWD Formation Evaluation Well Planning

Trajectory Design Hydraulics Analysis BHA Behavior Torque and Drag Analysis Anti-collision Formation Imaging Calipers

Drilling Mechanics
Downhole Weight and Torque Downhole Shock and Vibration Washout Detection Downhole Pressure Kick Alert

Modeling
Pore Pressure Wellbore Stability Kick Tolerance Hydraulics