iCem SM Service

1. iCemSM Service Achieving wellbore integrity with sound, technical decision making

2. Increasing the Probability of Wellbore Integrity Sound technical decisions rely on: Field-proven technical solutions Laboratory-driven empirical data And now the most robust cementing design tool available in the industry: iCemSM Service Drive better decisions by collaboratively conducting iterative scenarios and evaluating alternatives for achieving successful cementing operations.

3. iCemSM Service – Wellbore Integrity Increasing the probability of a successful cementing job Restrict fluid movement between formations Bond and support the casing Water Aquifer Hydrocarbon Zone Hydrocarbon Zone

4. iCemSM Service – Analysis for the Life of the Well Drilling Completion Production

5. General Cementing Job – Process Overview Solution Development • Finite Element Analysis • Computational Fluid Dynamics Job Execution • Density Control • High-Capacity Blender • Dropping the Plug • Bulk Delivery and Feed Results Evaluation • Bump the Plug • Cement Bond Log Cement Sheath with optimum zonal isolation is the objective for each individual well.

6. iCemSM Service – Process Overview Solution Development • Well Configuration • Formation Properties • Casing Properties • Operational Loads • Mud, Spacer, Cement Fluid Properties Job Execution • Real-Time Data • ECD (calculated) • Fluid Volumes & Densities • Pump Rates • Planned vs Actual Job Comparison Results Evaluation • Future Design Optimization • Analysis of ECDs, Fluid Volumes, Fluid Density, Pump Rates, etc. High-Level Features • Fresh User Interface • PROFILE™ Wellbore Schematic with Directional View • 2D Hydraulics Simulator • 3D Fluid Displacement • Simulator • Stress Analysis Simulator • Dynamic Temperature Modeling with Heat Transfer and Slurry Placement Temperature Graph • Real-time Data Acquisition and Monitoring

7. Legacy Discrete Software Now Consolidated OptiCem™ Software Cement Job Simulation Finite Element Analysis Displace 3D® Simulator Displacement models in 3D Computational Fluid Dynamics WellLife® Express Service Cement Sheath Stress Analysis Finite Element Analysis Data Acquisition Field data acquisition and monitoring iCemSM Service

8. iCemSM Service

9. Two-Dimensional Hydraulic Simulation Equivalent circulating density (ECD) management Dynamic temperature affects on fluid properties Pump schedule design With and without foam cement Volume to achieve TOC Balanced plug Standoff Torque and drag Surge and swab Mud removal and erodibility Advanced rheological modeling Other utilities (i.e. integrated fluid-flow potential) Complex wellbore geometry designs Automatic pump rate adjustment to stay below fracture gradient

10. Two-Dimensional Hydraulics Simulation Interactive temperature profile graph Casing temperature Annular temperature profiles Bottomhole circulating temperature

11. Two-Dimensional Hydraulics Simulation Cement stages temperature tracker

12. Three-Dimensional Displacement Simulator Fluid interface Fluid placement over time at all depths Drilling fluid Spacer Lead cement Tail cement Helps determine spacer volume to avoid contamination of cement

13. Three-Dimensional Displacement Simulator Conforms to highly eccentric annuli or localized washout Predict Material Volumes to Avoid contamination Achieve top of cement (TOC) Achieve optimum casing standoff Determine impact of pump rate Determine impact of pipe rotation and reciprocation

14. Three-Dimensional Displacement Simulator The same data can be represented both in a graph (above) or a cross section of the well (below) Helps determine a volume of spacerfor optimized displacement. 70% 10% Direct correlation of data. In this example further iterations are required to develop a design that eliminates channeling.

15. Cement Sheath Stress Analysis Cement hydration Shoe pressure testing Fracturing / stimulation Completion fluid change out Injection and production Evacuation / unloading Well kill Examines Effects of Planned Well Operations on Specific Cement Designs

16. Cement Sheath Stress Analysis Predicts the competence of a cement sheath Generates mechanical properties for the sheath to survive downhole stress conditions Simulator elements Properties of the formation Well structure Long-term critical well conditions Operation Type MD TVD Pre-Job Temperature (ft) (ft) (°F) Product 166880 166880 141.0 Casing Fluid Pressure Casing Fluid Temperature Pore Pressure (psi) (°F) (psi) 11409.0 416.0 11076.0

17. Cement Sheath Stress Analysis – “What If?” Reports on performance differing cement systems allowing cost analysis Enables decisions based comparisons of cementing mechanical properties Young’s Modulus Poisson’s Ratio Shrinkage Thermal expansion Compressive strength Tensile strength Thermal conductivity Specific heat

18. Real-Time Data Acquisition and Monitoring Real-time collection and graphing of cementing operations data Equivalent circulating densities (ECDs) Pump pressure Pump rate Fluid volume Fluid density Scores

19. Real-Time Data Acquisition and Monitoring Evaluation of pre-job simulations against recorded job data – During or after the job Identification of probable causes of irregularities on the job Enables optimization of future designs

20. Challenge (Libya) Poor cement bond log (CBL) results from first two production wells in a new field Solution Three-dimensional displacement Simulation and cement sheath stress analysis Modified mud rheology Increased use of centralizers to achieve 70% standoff Increased spacer volume to 60 bbl Result Significantly improved CBLs in wells after optimized plan via iCemSM service Case History – Field Application Excellent CBL after simulations designed solution modifications Poor CBL from previous wells

21. Challenge (Shale North America) Highly stressed formation subjecting wells to excessive washout, sloughing shales, stuck pipe, and poor cement jobs Solution – iCemSM service simulation revealed risks of debonding and causes of sheath failure over time due to wellbore stresses and led to changes as follows: Wellbore fluid conditioning Optimized centralizer placement for proper standoff Cement spacer properties Resilient mechanical properties designed into the slurry to address completion and production wellbore stresses to the cement sheath Result CBL indicated dramatic improvements in placement coverage over conventional cements used previously Previously required remediation was avoided Case History – Field Application

22. Challenge (HPHT) High profile eastern-hemisphere wells for a major operator in a field where previous wells experienced Gas migration and channeling issues Expense and delay of remedial cementing operations Solution – Eight (8) iCemSM service simulations run during a 2-hour meeting evaluating the following parameters Spacer volume Wiper plugs Rotation and reciprocation during pumping operations Pump rates Centralization Result Spacer volume doubled over previous well plans Pump rates increased though still within fracture gradient limits Centralizers changed to ones that allow pipe rotation Cement bond logs were excellent / no remediation required Case History – Field Application

23. Summary Job Plan Slurry Design Surge & Swab Avoidance Cement Mechanical Properties Centralizer Selection iCemSM Service Cement Sheath Analysis Casing Placement Achieve Top-of-Cement Torque & Drag Minimization ECD Management Mud Conditioning Avoid Cement Contamination Displacement Efficiency

24. Questions? iCemSM Service