N-SOLATE ® HIGH PERFORMANCE Insulating Packer Fluid

1. N-SOLATE®HIGH PERFORMANCE Insulating Packer Fluid

2. customerCHALLENGE Preventing unwanted heat loss during production Higher Production Potential Maintain Wellbore Integrity

3. Challenge 1: production rate Production rates slow down with: • Heat loss • Paraffin and asphalt buildup

4. Challenge 1: production rate Production rates slow down with: • Heat loss • Paraffin and asphalt buildup

5. Challenge 2: wellbore integrity Pressure buildup can compromise casing integrity.

6. convectionWithout proper heat insulation, heat transfer is uncontrolled Well producing in a steady state prior to production • Threatens wellbore integrity • Reduces production flow rates

7. Before N-SOLATE® Packer Fluid ONLY LOWTEMPERATURE INSULATORS ONLY OILBASED INSULATORS VACUUMTUBING INSULATORS

8. N-SOLATE®High Performance Insulating Packer Fluidcan effectively control unwanted heat loss by reducing both conduction and convection for the life of the well. Baroid’sSOLUTION

9. Applications N-SOLATE Applications: • DEEPWATER • HP/HT • STEAM INJECTION • PERMAFROST

10. N-SOLATE®Packer Fluid Applications Oil Based Water Based N-SOLATE175 N-SOLATE 275 N-SOLATE 600 N-SOLATE 400 • DEEPWATER • CONTINENTAL SHELF • PERMAFROST • DEEPWATER • CONTINENTAL SHELF • DEEPWATER • HP/HT • GEOTHERMAL • DEEPWATER • HEAVY-OIL • GEOTHERMAL • STEAM INJECTION N-SOLATE® packer fluids have low-thermal conductivity components.

11. N-SOLATE®Packer Fluid Specifications • Thermal stability – from 90°F to 600°F • Density range from 8.5 lb/gal to 15.0 ppg • Pumpable viscosity • Hydrate inhibitive to >8,500 psi @ 40°F (can be engineered to higher pressure with density limitations) • Green – Oil and grease content <8 mg/L and LC-50 >100,000

12. N-SOLATE®Insulating Packer Fluids BEFOREcrosslinker AFTERcrosslinker N-SOLATE® systems are engineered to activate to a robust, insulating gel at a prescribed temperature and time. Example of N-SOLATE® 275 Fluid Day 1 Day 14 Day 28

13. ________ Testing with N-SOLATE 275 0.35 in 0.70 in 1.05 in 123 79 170 Upper Example of effective insulating packer fluid. Demonstrates high thermal gradient and convection currents are eliminated. 129 177 82 Middle • Flow Temp: 280 oF • Density: 10.0 lb/gal 91 147 196 Lower Zone 3 Zone 2 Zone 1

14. customerBENEFITS • Lowercost as opposed to traditional methods such as vacuum insulating tubing (VIT) • Higherproduction potential INCREASE PRODUCTION Increase production rates, while reducing the costly risks associated with uncontrolled heat loss.

15. HIGH PERFROMANCEN-SOLATE®Insulating Packer Fluids can eliminate heat loss bymorethan 90%when compared to basicinsulation methods. • Can prevent annular pressure buildup for the life of the well • Control and prevent heat loss for the well’s life • Maintains wellbore integrity • Compatible with most wellbore fluids • Environmentally friendly, with low GOM toxicity and low oil and grease • Tailored per well for maximum production

16. WELLCATTMCasing Design Software Accurately models the thermal insulating effectiveness of N-SOLATE fluids. UNCONTROLLED HEAT LOSS WITH BRINE CONTROLLED HEAT LOSS WITH N-SOLATE FLUID

17. EACH RESERVOIR IS UNIQUE. TAILORED PER WELL FOR MAXIMUM PRODUCTION

18. HIGH PERFROMANCEN-SOLATE®Insulating Packer Fluids $2MM Saved Operators (vs. vacuum insulated tubing)

19. CASE STUDY: Insulating Packer Fluid Offers Cost Effective Alternative in Deepwater OperationsLocation: Offshore Louisiana CHALLENGE • Preventing well failure caused by annular pressure buildup in Gulf of Mexico deepwater wells. • Find a less-expensive and efficient insulation system that would prevent heat transfer and allow for increased flow rates. SOLUTION • N-SOLATE® packer fluid was custom-engineered specific to well conditions, formulated for a delayed cross-linking until placed in the wellbore; at which point full gelation of the system occurred • In each well, 10 lb/gal packer fluid was blended on the rig site and pumped into the production annuli. Maximum flow-production temperatures for the wells were 210º F (99º C). The cross-linking occurred before reaching this temperature, activating the insulating gel structure. RESULTS • Using the high performance packer fluid, It took 12 hours less rig time at a depth of nearly 22,000 ft than it would have to achieve a lesser depth of 10,000 ft with vacuum insulated tubing • Nearly $2 million in cost savings were realized over using the traditional vacuum insulated tubing system

20. CASE STUDY: Innovative Use of N-SOLATE® Packer Fluid in Gulf of Mexico CHALLENGE • Lost circulation • High ECD • Because of extremely cold sea floor temperatures, the synthetic-based fluid was becoming excessively thick when cooling off in the riser, requiring greater pump pressure to move SOLUTION • N-SOLATE 600 packer fluid was used in the riser wall annulus to keep the heat from the synthetic-based mud (SBM) in the main annulus from being lost to cold sea floor temperatures RESULTS • Once the N-SOLATE 600 packer fluid was in place, further lost circulation was not experienced • Equivalent circulating density (ECD) was drastically reduced • Higher circulation rate and faster drilling rates achieved • Drilling fluid returned to surface 20 degrees warmer compared to wells without the insulating effects of N-SOLATE fluid • Less stress on the wellbore throughout the entire operation • Major reduction in drilling time and reduction of fluid costs

21. relatedDOCUMENTS Sales Data Sheet Technical Papers Case Studies

22. Baroid scientists and engineers work with state of the art equipment and an extensive global database in order to perform comprehensive testing analysis on a global scale. BAROIDLaboratory Support Baroid’s Laboratory Services include: • Analytical technical support • Bioassay technical support • Reservoir fluids technical services • Drilling fluids technical services • Industrial drilling products lab • Quality assurance • Research and development

23. Reservoir Drilling Fluids Breaker Systems Completion Fluids Wellbore Clean-Up and Displacement Packages Breaker Systems for Polymer and Solids Removal Lost Circulation in Pay Zones Solutions • BAROIDRESERVOIR FLUID SOLUTIONS

24. discoverBAROID ecosystem Click on image above to launch ecosystem,then click on Launch Interactive ► Where people, processes, and technology are brought together to build customized solutions, optimize performance and deliver distinctive service quality. www.halliburton.com/baroid