Novel High Speed Telemetry System with Measurements Along the String Mitigate Drilling Risk and Improve Drilling Effic

1. Novel High Speed Telemetry System with Measurements Along the String Mitigate Drilling Risk and Improve Drilling Efficiency SPE 143430 Daan Veeningen, SPE NOV IntelliServ

2. Talking Points Introduction of the Broadband Network, addressing deepwater challenges High speed telemetry to measure and control downhole operations improving drilling efficiency Measurements all along the string to warn for developing trouble Cases and conclusions

3. Deep water challenges IntelliServ Broadband Network 57,600 bits/sec Simultaneous data High bandwidth High definition High Volume Real time Mud Pulse 10 bits/sec Sequential data • Deep, sub-salt reservoirs • Narrow Pore-Frac window • Wellbore instability • Well complexity • Data acquisition rate resolution Continuous bi-directionaldata transfer Tool actuation Data transferred in 2-5 sec pulses vibration Sonic Image Logs Etc, Etc gammaresistivitypressurevibration

4. Broadband Network Components 1) Armored coax cable 2) Induction coils 3) Boosters

5. Broadband Network System Equipment • DP • HWDP • NM DC, DC • Jars • Reamers • Saver subs • Crossovers Telemetry Service • Broadband Telemetry • Field Specialists • Bi-directional tool communication • Down-hole tool actuation services • Network diagnostics • Software displays • Inventory management • Support from central technology support hub • Service Companies: • BH, HAL, SLB, WFT • Interface Sub • IntelliServ • Temperature, Annular Pressure, Internal (bore) Pressure Managed Service Measurements

6. 1 Advantage #1 for Deep Water: High Speed, Broadband 2 3 Because downhole signals are transmitted and evaluated as time-series measurements, they have to be measured quickly enough to ensure they can be accurately defined. Vibration Mitigation Wellbore Imaging Downhole Tool Control Nyquist Theorem

7. 1 Bit Bouncing: High-Frequency Axial Vibration Signal Definition 2 3 1 Hz ~40 Hz Courtesy: NOV Downhole, Blackbox recorded data

8. 1 Log Quality in Real Time: Broadband Required 2 3 • Improved log quality reduced geological uncertainties • Sub surface risks evaluated in real time including capability for time lapse logging • Redundant telemetry systems permit continuation Courtesy: BakerHughes

9. 1 Downhole Tool ControlHigh-Efficiency Operations 2 3 “A +10% in time savings and reduced drilling costs significantly impacted the project economics” IADC/SPE 119570 – Step-Change Improvements with Wired-Pipe Telemetry

10. 1 Downhole Tool ControlHigh-Efficiency Operations 2 3 With Mud Pulse 7:00:00 AM WP DOWNLINK RIBS OFF ORIENT TESTRAK FOR TESTS TEST AT 15,235 FEET TEST AT 15,231 FEET TEST AT 15,225 FEET WP DOWNLINK HOLD MODE <17 min> Courtesy of Halliburton Courtesy of Baker Hughes • 54 formation pressure tests with the broadband network experienced an average time savings of 8 min per test • Improved FPT quality control in real time eliminated the need for wireline MDT

11. 1 Advantage #2 for Deep Water: Measurements beyond at the bit 2 3 Distributed measurements provide additional insight of what is happening along the miles of pipe and help avoid potentially trouble Drilling Completions Testing • Capabilities: • Pressure • Temperature

12. 1 Advantage Two for Deep Water: Measurements beyond just at the bit 2 3 Pack-Off Kick Detection (Large Annulus) PRESSURE ANNULAR GRADIENT PRESSURE GRADIENT CHANGE IN AN INCREASE IN AN INTERVAL? INTERVAL ? Y Y BORE, ANNULAR Y CUTTING WELLBORE Y PRESSURE DECREASE PRESSURE INCREASE IN AN INTERVAL? BUILD-UP INFLUX IN AN INTERVAL? N N N N CONTROL INFLUX (SHUT IN WORK DRILLSTRING, CIRCULATE OR DYNAMIC WELL KILL) TO REDUCE PRESSURE GRADIENT RETURN OPERATIONS CONTINUE

13. 1 Along String Pressure Evaluation Detecting a Pack-Off in Deepwater 2 3

14. 1 Hole Cleaning Optimized 2 3 Deeper Shallower

15. 1 Early kick detection and Closed Loop MPD 2 3 • Fully automated system delivers <10 second kick detection response time • Holds bottom hole pressure <30 psi window while drilling • Holds bottom hole pressure <100 psi window during connections • Automatically circulate out kick, maintaining constant bottom hole pressure Courtesy: BakerHughes, @Balance

16. 1 Installation of a Gravel Pack 2 3

17. Conclusions • Broadband Network Enables • High Telemetry Speed for Downhole subsurface conditions to be measured and controlled • Measurements beyond just at the bit for Early Warning and Reduce Risk • Mitigate Drilling Risk and Improve Efficiency • Vibration, image logs, QC and commanding tools • Hole cleaning optimization, pack off/kick prevention • Early Days for Installation of Completions, Well Testing to follow.

18. Questions? Thanks to our Service Partners

19. Bio – Daan Veeningen Daan Veeningen has fourteen years of international oilfield experience. Daan has extensive operational experience in well construction operations in three continents. Further, Daan developed drilling engineering tools and marketed Schlumberger services with real time capabilities. At NOV, Daan has been responsible for business development and marketing for the IntelliServ broadband networking and along-string evaluation services for high-definition downhole and sub-surface operations for the last two years. Daan holds a masters degree in petroleum engineering from the Delft University of Technology and has been awarded numerous patentsfor drilling systems and processes.