RHELIANT PLUS Superior performance, thermal stability and cost savings from the next generation flat rheology invert emulsion system for deepwater

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1 RHELIANT PLUS Superior performance, thermal stability and cost savings from the next generation flat rheology invert emulsion system for deepwater drilling

2 RHELIANT PLUS: Innovation for faster drilling and lower costs in challenging downhole environments Globally, operators face a dilemma. They need invert fluids for deepwater and extended reach drilling (ERD) but face complications from shifting wellbore temperatures where increased temperature conditions downhole coexist with near freezing temperatures at sea bottom. In deepwater, poor hole cleaning, barite sag and other costly problems can arise from reducing surface rheology to compensate for increasing Equivalent Circulating Density (ECD) in cold riser temperatures.

3 Next generation drilling fluid provides excellent hole cleaning and rheological stability Features Flat rheology profile over wide temperature range Uses single rheological modifier Enhanced gel structure Organophillic clay as a viscosifier Temperature stability up to 350 F Tolerant to solids Benefits Improved well construction costs Reduced gel strength progression Reduced hydraulic fluctuations from surge/swab Reduced sag potential Easier to engineer Reduced whole mud losses The next generation RHELIANT PLUS drilling fluid system from M-I SWACO, a Schlumberger company, provides operators thermal stability, consistent rheological properties, and protection from barite sag in deep water and ERD drilling operations, despite significant temperature fluctuations in the formation and riser. An advancement from the M-I SWACO RHELIANT drilling fluid system deployed successfully in deepwater globally, the RHELIANT PLUS drilling fluid system allows for excellent hole cleaning. It also provides reduced operating costs through improved tripping speeds and reduced potential for loss of circulation in all types of well profiles: deepwater, directional and ERD. The RHELIANT PLUS drilling fluid system maintains constant properties independent of temperature and pressure. This oil-base drilling fluid system retains nearly constant 150 F low shear rates viscosities even when encountering temperatures as low as 40 F (4.4 C). Its consistent rheological properties and gel structure allow drilling and break circulation pressures with lower ECDs, contributing to fewer problems while drilling and successfully avoiding the loss of whole drilling fluid. The RHELIANT PLUS fluid system also reduces wellbore stresses because it is more tolerant of solids contamination than other systems and provides ECD management for enhanced ERD operations. The robust formulation is easily adaptable to changing well conditions with a minimal number of components, thus reducing storage requirements and simplifying engineering. Compared to the field-proven RHELIANT drilling fluid system, the RHELIANT PLUS drilling fluid system assures improved cement operations with improved cement bonding from the low gel structure and higher temperature stability in drilling operations. At the same time, the new RHELIANT PLUS drilling fluid system provides the same flat rheological property profile.

4 Superior rheological properties outperform competing fluids The use of clay as the primary viscosifier in our flat-rheology system is a key difference for M-I SWACO. By design, both the RHELIANT and the RHELIANT PLUS drilling fluid systems use organophilic clay as a viscosifier. The RHELIANT PLUS drilling fluid system typically uses 50 percent more clay and half the rheological modifier compared with a comparatively formulated RHELIANT drilling fluid system. The RHELIANT PLUS drilling fluid system allows a higher clay content while delivering lower gel progression. It minimizes additives that contribute to polymer viscosity. Instead, clay chemistry is manipulated by the primary additives. The gel strengths structure of the RHELIANT PLUS drilling fluid system is essential to minimizing sag, suspension of cuttings and hole cleaning. Simple formulation for superior results The RHELIANT PLUS drilling fluid system is a robust, three-component formulation that is easily adaptable to changing well conditions, making it easy and quick to maintain and control on location while reducing the amount of fluid waste and associated costs. The all-in-one SUREMUL PLUS emulsifier, the all-in-one RHEFLAT PLUS rheology modifier and VG PLUS, a single type of organophilic clay, are the key components of the RHELIANT PLUS drilling fluid system. The SUREMUL PLUS emulsifier is the primary emulsifier and combined wetting agent in the RHELIANT PLUS drilling fluid system. It delivers excellent emulsion stability, preferential wetting of solids by the continuous oil-phase, filtration control and stability at high temperatures. Additionally, the SUREMUL PLUS emulsifier is tolerant to solid contaminants and changes in the oil-water ratio (OWR). Initial treatment is 8-12 ppb ( kg/m³) depending on density, oil-water ratio and required temperature stability The RHEFLAT PLUS rheology modifier is a gellant and rheological modifier specifically designed to increase the low-shear viscosity, improve sag control and provide the flat rheology of the RHELIANT PLUS drilling fluid system. The RHELIANT PLUS drilling fluid system works in conjunction with VG-PLUS and/ or VG-SUPREME organophilic clays and is effective at temperatures up to 300 F (149 C). If temperatures above 300 F (149 C) are expected, usage of the VERSAGEL HT viscosifier is recommended. Initial treatment is 0.6 lb/bbl to 1.5 lb/bbl ( kg/m³) depending on the base fluid, the drilling fluid density, and the oil-water ratio. Maintenance treatment is 0.05 lb/bbl to 1.0 lb/bbl ( kg/m³). Other drilling fluids additives used in RHELIANT PLUS drilling fluid system include more conventional products, such as lime, calcium chloride (CaCl 2 ) brine, and filtration control polymers. Special additives can be used to increase the temperature stability of the system. Put RHELIANT PLUS to work for you To find out more about how the RHELIANT PLUS drilling fluid system is working for our other customers worldwide, contact your local M-I SWACO representative.

5 Next generation conversion with no operations changes The RHELIANT PLUS and RHELIANT drilling fluid systems are fully compatible. Converting to the RHELIANT PLUS drilling fluid system does not require changes in operation and can be effectively carried out from a wide range of NAF fluids. The next generation RHELIANT PLUS drilling fluid system offers additional performance benefits that include reduced gel strength progression, lower break-circulation pressures and associated break-circulation ECD, reduced hydraulic fluctuations from surge/swab, simpler formulation in the field, and greater temperature stability. The RHELIANT PLUS drilling fluid system generates shorter tripping times than the RHELIANT drilling fluid system or reduced surge/swab effect at the same tripping times. In hole cleaning, the RHELIANT PLUS drilling fluid system shows a slight edge in large ID holes. Swab effect is reduced with the RHELIANT PLUS drilling fluid system, resulting in the ability to pull out of hole (POOH) faster, especially in deeper or ERD sections where time savings are amplified. The current RHELIANT drilling fluid system formulated for the Gulf of Mexico is stable to approximately 270 F, which is suitable for most deepwater applications. The RHELIANT PLUS drilling fluid system is stable to approximately F. The RHELIANT PLUS drilling fluid system has been run in HPHT conditions in the southern GOM, including 17 ppg / 350 F BHST. Current RHELIANT drilling fluid system chemicals such as the SUREWET fluid additive, the RHEBUILD viscosifier, and the RHEDUCE dispersant are all compatible with the RHELIANT PLUS drilling fluid system and will be maintained for any potential specialty requirement until they are deemed unnecessary.

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7 The RHELIANT PLUS drilling fluid system proves itself in the field Sakhalin Island, Russia: The RHELIANT PLUS drilling fluid system achieves flat rheology across wide temperature range and excellent hole cleaning in first field trial The Situation The operator needed to convert a VERSACLEAN system to a RHELIANT PLUS drilling fluid system in order to experience reduced gel strength progression, lower break-circulation pressures and associated breakcirculation ECD, reduced hydraulic fluctuations from surge/swab, simpler formulation in the field, and greater temperature stability during drilling. The Solution Due to a last minute well design change, the client agreed to the use of the existing VERSACLEAN system as seed mud. The used VERSACLEAN whole mud was added to the RHELIANT PLUS drilling fluid system while drilling. With a 65:35 ratio of RHELIANT PLUS drilling fluid system, the VERSACLEAN fluid behaved like a RHELIANT PLUS drilling fluid system. The Results The converted fluid improved hole cleaning with overall thinner fluids (6rpm vs with conventional). The use of lower OWR resulted in a projected $1.2 million (USD) reduction in annual base oil costs. Thinner surface fluid resulted in mud-oncuttings losses approximately 50 percent of historical averages. Back-reaming in highly deviated in. and 8.5-in. sections was reduced to zero in some cases. Reduced ECDs allowed for use of higher surface mud weights to improve hole stability. Flow rates on 17.5-in. section improved from 1,185 gpm to 1,320 gpm at similar SPP. Angola: The RHELIANT PLUS drilling fluid system performs above the client s expectations in Deepwater Angola The Situation A deepwater operator in Angola wanted to improve drilling performance and avoid higher costs by using only the RHELIANT PLUS drilling fluid system for its large diameter deviated hole section where hole cleaning and mud conditioning for cementing casing previously required extra rig time. The Solution A plant provided 90,000 barrels of the new RHELIANT PLUS drilling fluid system. Plant s fluid ECDs in in. and 8.5-in. sections were reduced percent compared to a historical comparison of competitive systems. The RHELIANT PLUS drilling fluid system s organophilic clay, provided rheological properties of approximately 60 percent compared to historical offsets while exhibiting no sag tendencies. The Results The operator drilled and completed the first well with the RHELIANT PLUS drilling fluid system, significantly lowering rheology in degree deviations while delivering improved hole cleaning. The operator was able to pull out on elevators for the first time in six years without back-reaming the 17.5-in. and in. sections. Extremely flat gel strength progression was observed in both paraffin and Low Toxicity Mineral oil formulations.

8 This information is supplied solely for informational purposes and M-I SWACO makes no guarantees or warranties, either expressed or implied, with respect to the accuracy and use of this data. All product warranties and guarantees shall be governed by the Standard Terms of Sale. Nothing in this document is legal advice or is a substitute for competent legal advice M-I L.L.C. All rights reserved. Mark of M-I L.L.C. FBR R1 (E) Digital Print in U.S.A.

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