Recent advancement in well-control technology improves safety and allows cost savings for well designs

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Recent advancement in well-control technology improves safety and allows cost savings for well designs Simulation While Drilling and Relief Well Injection Spool 1

Doing More for Less What can we cut? Largest cost to an operator The cost of a blowout is difficult to measure Total cost to BP for Macondo is in the range of $70 billion* During normal operations, drilling wells is the largest expense to an operator Rig rates Number of casing Technology to reduce a casing string $2 mill per normal well $50 mill per Big Bore well +$300 mill for a field development *Forbes Oct 2015

Relief Well and Dynamic Kill Overview Relief wells are the last line of defense After intersecting with a relief well a dynamic kill is done Dynamic kill uses mud hydrostatic and friction to stop the blowout Deeper intersect makes the kill operation less challenging There are limits to how deep a relief well can intersect Intersect is often at the deepest casing shoe DOWNHOLE RANGING REQUIRES STEEL IN TARGET WELL

Relief Well and Dynamic Kill Overview Pumping capacity of a relief well is limited Two or more relief wells may be required Only once have two simultaneous relief wells intersected a blowout Two simultaneous relief wells may be challenging* Permission from regulatory agency Kill requirements sometime drive the well design Relief wells are unique and challenging El Isba, Syria 1995 Artic Environment 2014 IADC - Dual Relief Well Operations Challenges and Solutions

Casing Design Driven by Kill Requirements Example 1 Multiple Sands Kill requirements are conservative (wildcat wells) Additional casing is set to isolate sands Some sands may not be prolific Introduce additional cost Additional risk

Casing Design Driven by Kill Requirements Example 2 Big Bore Gas Wells Off-bottom kill may not be possible Extra string must be set above reservoir* Smaller hole = smaller completion Need more wells to develop a field *SPE-174890-MS: Blowout Prevention and Relief Well Planning for the Wheatstone Big-Bore Gas Well Project

Simulation While Drilling, SWD SWD forecasts kick tolerance and RW kill requirements real-time Drill the entire reservoir zone Significant cost reducing potential Shorter drilling time Reduced number of casing strings Ensuring successful well integrity management SWD has been used on several wells and already demonstrated its value to the industry REAL-TIME DATA

Relief Well Injection Spool, RWIS RWIS is a Mini BOP Stack, mounted on top of the relief well wellhead Sits between the wellhead and the BOP and same bore as the BOP (18 ¾") The RWIS will include valve inlets for pumping and pipe/shear ram The kill spool is a dead equipment during drilling of the relief well The kill spool could be used to increase pump capacity into the well RWIS is patent pending - Expected completion time is Q4 2016

Blow Out Well STEP 1 Drill Upper Hole Section Relief Well Injection Spool, RWIS Relief Well Rig LMRP BOP Wellhead Last Shoe Before Intercept

Blow Out Well Relief Well Injection Spool, RWIS STEP 2 Pull BOP and Install RWIS Unit Relief Well Rig LMRP BOP Wellhead Last Shoe Before Intercept

Blow Out Well Relief Well Injection Spool, RWIS STEP 2 Pull BOP and Install RWIS Unit Relief Well Rig LMRP BOP Wellhead Last Shoe Before Intercept

Blow Out Well Relief Well Injection Spool, RWIS STEP 2 Pull BOP and Install RWIS Unit Relief Well Rig LMRP BOP RWIS Wellhead Last Shoe Before Intercept

Blow Out Well Relief Well Injection Spool, RWIS STEP 3 Reconnect Relief Well rig to well landing BOP onto RWIS Relief Well Rig LMRP BOP RWIS Wellhead Last Shoe Before Intercept

Blow Out Well Relief Well Injection Spool, RWIS STEP 4 Attach Kill Vessel(s) to RWIS Relief Well Rig LMRP BOP RWIS Wellhead Last Shoe Before Intercept

Blow Out Well Relief Well Injection Spool, RWIS STEP 5 Drill out of shoe and intercept incident well Relief Well Rig LMRP BOP RWIS Wellhead Last Shoe Before Intercept

Blow Out Well Relief Well Injection Spool, RWIS STEP 6 Conduct Well Kill operations from designated vessels Relief Well Rig LMRP BOP Wellhead Last Shoe Before Intercept

Blow Out Well Relief Well Injection Spool, RWIS STEP 7 High rate dynamic kill achieved Relief Well Rig Well Killed LMRP BOP Wellhead Last Shoe Before Intercept

Relief Well Injection Spool Benefits No rig modifications required Enables relocation of pumping and storage off the rig to dedicated pumping vessels Increases flow capacity to the wellhead significantly Alternative to two or more relief wells Intersect blowout shallower, in less time, and limit spill potential Give operators permission to drill in environmental sensitive areas

Casing Design Driven by Kill Requirements Solutions: RWIS and SWD Example 1 Multiple Sands SWD is used to calculate kick tolerance and kill requirements real-time SWD may reduce number of casing strings while mitigating risk RWIS is a contingency in the unlikely case of a blowout from multiple sands RWIS ensures a blowout can be killed with a single relief well Cost savings per string is ~USD 2 mill

Casing Design Driven by Kill Requirements Solutions: RWIS and SWD Example 2 Big Bore Gas Wells With RWIS an off-bottom kill may be possible Extra string set above reservoir may be eliminated Bigger hole = larger completion A large field can be developed with less wells Ormen Lange Phase 1: Fourteen 7 wells match eight 9⅝ wells = $300 million savings* Cost reduction ~USD 50 mill per Big Bore well *IADC July/August 2005: Shell, Norsk Hydro to drill world s largest deepwater wells in Ormen Lange field

Well Control & Blowout Support We offer expert advice in blowout prevention and response in the event of a well control incident Blowout contingency planning Blowout and well control response Simulations while drilling Casing magnetization Transient multiphase flow analyses Well control courses, training and spill drills Key Projects Montara/Timor Sea Blowout 2009 Macondo/US Gulf Blowout 2010 Elgin/North Sea Blowout 2012 Porter Ranch Blowout 2016

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