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Dear {FirstName} {LastName}: Volume 5, Number 4

Welcome to Technology Update, the Baker Hughes eNewsletter to inform you about our latest technologies for oil and gas drilling, formation evaluation, completion and production.

Intelligent Well SystemsBaker Hughes Russia Installs Intelligent Well Systems in West Siberia
Baker Hughes Russia has completed the installation of two Intelligent Well Systems in West Siberia. The installations provide in-well zonal contribution measurements, which allows a single wellbore to produce from two reservoir zones. This capability allows the client to meet government legislation for commingling production from one wellbore. The system also provides produced fluid density measurement. The two wells are the first of an initial six-well program. The project involved collaboration between Baker Oil Tools, ProductionQuest and Baker Atlas.

SMARTGUARD Naphthenic Acid Corrosion ControlBaker Petrolite Providing SMARTGUARD Corrosion Control for U.S. Refinery
Baker Petrolite is providing a SMARTGUARD Naphthenic Acid Corrosion Control program at a US refinery processing high TAN crude. One of the keys to success has been the innovative use of hydrogen permeation monitoring, which provides real-time, non-intrusive corrosion measurements of the customer’s metallurgical systems. SMARTGUARD monitoring indicated the active corrosion locations, which were subsequently verified by the refinery’s UT/RT reliability program. The SMARTGUARD® 2800 corrosion inhibitor was very effective in passivating the piping and controlling the corrosion.

Electrical Submersible Pumping SystemCentrilift Providing ESPs for CO2 Injection Project in Permian Basin
Centrilift is providing electrical submersible pumping systems to a major customer’s CO2 project in the Permian Basin after being chosen as the premier provider of high performance technology solutions for CO2 flood water alternating gas (WAG) injection cycles. Other factors in the contract award to Centrilift included superior field service, engineering and forensic analysis support.

UltraMax bitHughes Christensen’s UltraMax® Bit Sets New World Footage Record for TCI bits in Australia’s Cooper Basin
Hughes Christensen’s UltraMax bit with metal sealed bearings continues to raise the standard for Tricone® bit endurance. While drilling in the Cooper Basin, Australia, a single 10-5/8" UltraMax bit successfully drilled 25 consecutive top-hole sections without issues. The bit set a new world cumulative footage record for TCI (tungsten carbide insert) bits of this size achieving 25,662 ft (7822 m) at an average ROP of 114.8 ft/hr. Increased durability saved approximately $42,000 compared to offset wells. The new world record is 19,605 ft (5976 m) more than the previous mark of just 6057 ft (1846 m), an increase of 324%.

AutoTrakINTEQ Achieves 200,000-m AutoTrak G3.0 Milestone in China’s Bohai Bay
INTEQ China recently reached a new milestone in Bohai Bay when it surpassed 200,000 m (650,000 ft) drilled using AutoTrak G3.0 services for a major operator. Since the start of the development project in November 2003, over 105 complex 3D profile wells have been drilled using the system, including 13 shallow ERD wells which broke multiple records in the Bohai Bay area. Over the past 3-1/2 years, INTEQ China has attained customer KPI of over 95%.

MAX-BRIDGE(SM) SystemBaker Hughes Drilling Fluids Reduces Mud Losses and Differential Sticking with MAX-BRIDGESM System in Saudi Arabia
Baker Hughes Drilling Fluids Saudi Arabia has achieved success with a new application of the MAX-BRIDGE customized bridging system for reducing mud losses and differential sticking. A 5-7/8" section was drilled to 7000 ft (2134 m) with a 10.0 ppg low solids non-dispersed mud. It was then displaced to an 11.5 ppg MAX-BRIDGE treated salt polymer mud, which was used to drill through a known low pressure and high permeability zone. The difficult section of the hole was drilled smoothly with no problems down to the top of the Arab “D” producer sand at 8528 ft (2517 m). The operator then displaced out the existing MAX-BRIDGE treated mud with an 11.5 ppg CaCl2 /CaCO3 fluid to drill to section TD. Subsequently, the well was completed successfully to TD.

Predator XP(R) chargesBaker Atlas Performs Tubing Conveyed Perforating for a World Record Extended-reach offshore California Well
Baker Atlas has successfully conducted a TCP operation on a world-record, extended-reach well off a California platform. The “S-shaped” well was drilled to a depth of 33,435 ft (10,191 m) with an extended reach of 29,719 ft (9058 m). Maximum deviation was 86.5° with the zone of interest having a 51° deviation. The perforating assembly was run on a tapered string with no problems. The 555-ft (169 m) interval was perforated using 3-3/8" perforating guns featuring the Baker Atlas Predator XP® charges. A combination of a Model D and Model RD Firing Heads provided redundant pressure-fire initiation of the perforating guns. The guns were in position within 26 hours. The drill pipe was laid down while pulling out of hole. Total operating time was 75 hours, with no lost time during the TCP operation.

Composite Frac Plug for Barnett ShaleBaker Oil Tools Introduces New Composite Frac Plug for Barnett Shale Horizontal Wells
Baker Oil Tools has introduced a new composite frac plug designed specifically for pump-down applications for operators completing horizontal wells in the Barnett Shale. With the plug, operators have experienced increased reliability, faster deployment speeds, up to a 50% reduction in fluid volume, and improved drill-out times.


 Highlights...

RHEO-LOGIC(SM) Constant Rheology Synthetic-based Drilling FluidNew RHEO-LOGICSM Constant Rheology Synthetic-based Drilling Fluid
Baker Hughes Drilling Fluids has introduced RHEO-LOGIC, the next generation of constant rheology synthetic-based drilling fluid. The RHEO-LOGIC fluid mitigates the effects of temperature and pressure on the viscosity of the fluid downhole (“rheology”), allowing operators to better manage dynamic pressures while drilling critical wells.

RHEO-LOGIC is simple by design, easy to use, and does not exhibit an elevated viscosity profile. This low maintenance, cost effective system has been field proven to reduce mud losses, allow increased trip speeds, improve hole cleaning, and enhance overall drilling efficiency in pressure-critical wells.

Baker Hughes at Technical Conferences

Offshore Technology Conference (OTC)
April 30 - May 3
Houston, TX

CSPG, CSEG and CWLS Joint Convention
May 14 - 17
Calgary, Canada

OGU – Uzbekistan International Oil & Gas Exposition
May 15 - 17
Tashkent, Uzbekistan

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