2008 Jornadas de Perforaci ón 21 – 23 October 2008 Salta, Argentina

1. Challenging Drilling Applications Demand New TechnologiesMichael J. Jellison – NOV Grant Prideco™ 2008 Jornadas de Perforación 21 – 23 October 2008 Salta, Argentina 1

2. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison Outline • Deeper Targets and Faster Drilling with New Connection Technology • Advanced Material Technologies for UDD & ERD • Hardbanding Trends • Ultra-High Capacity Landing String System • What Really Happens to High Strength Drillpipe When Taking a Sour-Gas Kick • Severe Downhole Friction Heating Driving Increase in Drillstring Failures • Telemetry (Wired) Drillpipe • Conclusions 2

3. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison 3rd Gen. DSC(Design Philosophy)

4. Start Thread 1 3rd Gen. DSC ≈ 4 revolutions Start Thread 2 2nd Gen. DSC ≈ 13 revolutions Starting Thread Challenging Drilling Applications Demand New TechnologiesM. J.Jellison 3rd Gen. DSC combines two threads opposite 180 degrees apart (double-start) which reduce the revolutions from stab to make-up by 50%. 3rd Gen DSC run as fast or faster than the API equivalent connection.

5. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison 3rd Gen. DSC(Dual-radius Thread Form) In smaller DP sizes, 3rd Gen. DSC have at least 37% larger thread root radii than API to reduce peak stresses. In larger DP sizes, 3rd Gen. DSC have at least 160% larger thread root radii than API to reduce peak stresses.

6. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison Advanced Metals Drill Pipe 8

7. Yield Strength LCVN Toughness Challenging Drilling Applications Demand New TechnologiesM. J.Jellison High-Strength Steels Z-140 and V-150 provide increased “strength-to-weight” ratio products for current projects and demand is increasing. 6

8. 2006 2003 Challenging Drilling Applications Demand New TechnologiesM. J.Jellison High-Strength High-Toughness Steels In 3 yrs, probability of NOT meeting stringent, elevated LCVN specifications on Z-140 and V-150 has dropped ½. Next step is development of UD-165™ products. 7 Chandler, Jellison, Payne, Shepard, “Performance Driven Drilling Tubular Technologies,” paper SPE/IADC 79872, presented at the 2003 SPE/IADC Drilling Conference, 19 -21 February 2003.

9. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison Hardbanding Trends The hardband system for critical applications should incorporate the following features: • The hardband must be casing friendly with no tungsten carbides in its formulation. • The hardband should be applied in a raised configuration to maximize tool joint protection and limit contact between the bare steel on the tool joint OD and the well bore. • Both the pin and box members should include hardband to provide tool joint protection and minimize contact between the tool joint OD and wellbore.

10. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison 1st Generation Casing Wear Machine – 2004 • Capable of testing hardband vs. casing only • Table was “hinged” • A pressure transducer was used to measure side load • Load fluctuation was 30-35% • Table traverses as the hard band rotates • Water was the only coolant which could be used

11. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison 3rd Generation Hardband Test Machine 2007 Capable of simulating both “Open Hole” and “Cased Hole” operations The Casing or Stone rotates counter Hard Band rotation. This eliminates the need of a traversing table.

12. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison Video of 3rd Generation Hard Band Machine

13. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison Hardband Test Results Casing Wear Comparison Tool Joint Wear Comparison

14. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison Loads in Deep-Water & UDD are Heavy! 5 Paslay, Pattillo, Pattillo II, Sathuvalli, Payne, “A Re-examination of Drillpipe/Slip Mechanics,” IADC/SPE 99074, Presented at the 2006 IADC/SPE Drilling Conference, 21 – 23 February 2006

15. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison Slip-Crushing (Issue) 9 Paslay, Pattillo, Pattillo II, Sathuvalli, Payne, “A Re-examination of Drillpipe/Slip Mechanics,” IADC/SPE 99074, Presented at the 2006 IADC/SPE Drilling Conference, 21 – 23 February 2006

16. Reduced tool joint diameter for reduced make-up torque requirements Extended length, thicker wall slip section machined true for increased slip crushing capacity Internal and external upset (IEU) Double diameter box tool joint Tungsten carbide free hardbanding to protect riser/casing Increased elevator diameter for increased hoisting requirements High strength grade tube of reduced wall thickness Pin wall thickness to provide connection tensile capacity Challenging Drilling Applications Demand New TechnologiesM. J.Jellison Slip-Crushing Technologies (Pipe) 10 Chandler, Jellison, Payne, Shepard, “Performance Driven Drilling Tubular Technologies,” paper SPE/IADC 79872, presented at the 2003 SPE/IADC Drilling Conference, 19 -21 February 2003.

17. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison 1,000 Ton Slip System Slip-Crushing Technologies (Slips) Load distribution grooves improve equal weight distribution and reduce point loading in the toe area Extended Slip Contact Area (20”) Modified slip and bowl taper reduces transverse loading Remote Operated Hydraulic Powered Device Solid Internal Bushing Maintains dimensional integrity and minimizes radial forces on the rotary table Split Flush Mounted Bushing fits into Rotary Table 11 Patent-pending LDXL™ system from Access Oil Tools

18. Elevator Tonnage Rating CONVENTIONAL Challenging Drilling Applications Demand New TechnologiesM. J.Jellison UNCONVENTIONAL Hoisting Capacity (2 Issues!) Tool Joint Elevator Capacity Hoisting capacity is also a function of tool joint diameter! 12

19. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison Double Diameter Tool Joints Hoisting Technologies (Pipe) Reduced TJ diameter for MUT & fishing considerations Improved Tool Joint Elevator Capacity Tong space overshot fishing capable Larger elevator diameter for improved hoisting capacity 13

20. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison 1,000 Ton Elevator System Hoisting Technologies (Elevators) Replaceable insert bushings For use with 18˚ taper box tool joints Hydraulically actuated 14 Patent-pending XP1000™ elevator from Access Oil Tools

21. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison

22. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison

23. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison First test results … Initial conditions were defined as: • samples machined from pipe body – tool joint weld area • samples to be rolled for 3 hours in H2S-saturated, 5% K2CO3 solution, top half of the autoclave filled with 6 bar partial pressure H2S gas (equivalent to 12% H2S) at 80°C, residual stress 90% of yield strength • samples then taken from the (purged) autoclave and kept in 5% clean K2CO3 solution at ambient temperature for transfer to fatigue test • fatigue testing at 90% +/- 10% load for up to 107 cycles … and resulted in: • very few failures with large scatter, some H2S-exposed samples showing better fatigue life than undamaged base line samples ? ? ? L

24. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison

25. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison

26. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison High heat input can be created quickly by contact friction heating downhole Casing Eaton1 showed that temperatures over 1888°F (1031°C) could be reached with side loading of 2000lbf in 2 minutes when rotating against casing at 150 rpm. 2000 lbf 150 rpm Rotating tool joint • Eaton, L.P.: “Tool Joint Heat Checking While Predrilling for Auger TLP Project,” Paper SPE/IADC 25776 presented at the 1993 IADC/SPE • Drilling Conference, Amsterdam, The Netherlands, February 23-25.

27. Exaggerated necking at failure location Challenging Drilling Applications Demand New TechnologiesM. J.Jellison Case History: March 2006, Onshore, Alberta Canada • Pin tool joint separated from pipe. • Pipe experienced exaggerated necking at the fracture. • Extended necking required heating while tension was applied and is not possible with tension alone.

28. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison Telemetry Drill PipeNetwork Premium Drill Pipe and: • High-Speed, Bi-Directional Network • Allows acquisition from bottom of string • Boost and measurements along string • Temp Rating: 302˚ F • Pressure Rating: 25,000 psi • Speed: 57,000 bps • NOTE: Most BHA components can be converted to Intelligent drill string including: • Jars, stabilizers, reamers, drill collars, some float valves etc.

29. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison

30. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison Field Test Results Negative Pulse Data Telemetry DP Transmitted Data ROP:100 ft/hr All data, full resolution Sliding, no data acquired

31. Challenging Drilling Applications Demand New TechnologiesM. J.Jellison Conclusions • As the search for hydrocarbons extends into deeper and more remote subterranean targets and ever deeper waters, the demands placed on the drill string accelerate. • Higher torsional capacities, better strength to weight properties, faster running and tripping speeds are a few of the challenges that must be addressed with the next generation of drill stem technologies. • Critical ultra-deep, deep-water and ERD projects are already in the planning stages that cannot be efficiently drilled without the latest advances in drill pipe and drill stem designs. • Papers provide an update on recent developments and highlights some problem areas that are associated with the latest generation of extreme drilling applications. 18

32. Challenging Drilling Applications Demand New TechnologiesMichael J. Jellison – NOV Grant Prideco™ 2008 Jornadas de Perforación 21 – 23 October 2008 Salta, Argentina 1