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

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.

Baker Petrolite Providing HI-M-PACT Flow Assurance Treatment for GoM Project
Baker Petrolite is providing flow assurance treatment for a major project in the Gulf of Mexico. The application system contained a 17-mile umbilical operating at 14,000 psi that originated in 60 ft (18 m) of water and terminated at the well head in 2700 ft (823 m) of water. The product environment experienced severe pressure and temperature change over the transition from surface to subsea. As a result of the collaboration, the customer decided to apply a Baker Petrolite combination product, HI-M-PACT anti-agglomerate low dosage hydrate inhibitor (LDHI) with a specially formulated paraffin inhibitor. This combination will be used to provide production flow assurance on future operations.

Electrical Submersible Pumping SystemCentrilift Installs Largest ESP System for German Geothermal Project
Centrilift has installed the largest electrical submersible pumping (ESP) system in a geothermal well in Unterhaching, Germany. The ESP system features a 1600 HP 725 harsh environment Vanguard motor and can produce up to 170 liters per second (45 gallons per second) of geothermal water from a depth of 3200 m (10,499 ft). Unterhaching is a suburb of Munich near the Austrian Alps. The city will use energy from the 240° F (116° C) water the Centrilift equipment produces to heat 20,000 homes during the winter months and during warmer months the hot water will be used to produce electricity using a steam turbine. The water used for heating and electrical generation will be re-injected into the formation, providing a nearly endless supply of clean energy for the next 100 years.

Genesis drill bitsHughes Christensen Bits Break Drilling Records in Libya’s Ghadames Basin
Hughes Christensen has enabled a major operator to break all drilling records in the Ghadames Basin, onshore Libya. In the second well drilled in the area, the customer used 100% HCC bits and achieved a 19-day drilling time reduction compared to the original AFE. After conducting an in-depth analysis of available offset data and applying HCC’s local drilling experience, the well reached TD at 11,030 ft (3362 m). Only three bits were used (excluding coring heads and drill-out runs). They included a 17-1/2" GTX-C03H (saved 7 days), a 12-1/4" HC607Z (saved 7 days), and an 8-1/2" HC606Z (saved 5 days).

OnTrak SystemsINTEQ Deploys LithoTrak®, OnTrak® systems and X-treme® motor technology in a High Pressure GoM Deepwater Well
In the Gulf of Mexico, INTEQ has successfully completed deployment of the LithoTrak, OnTrak systems and X-treme® motor technology in a deepwater well with pressures above 25,000 psi and a true vertical depth exceeding six miles (9656 m). AutoTrak, OnTrak and TesTrak® systems were proven in a very similar environment early in 2006 for the same international operator. The recent deployment was an outstanding success with excellent directional control, and exceptional OnTrak and LithoTrak formation evaluation data. There was a very good density image, delivering important structural information, all achieved with full bi-directional communications.

Fluids Environmentat Services (FES)Baker Hughes Drilling Fluids Providing Fluids and Environmental Services for Ultra-Deep Gas Well in Gulf of Mexico
Baker Hughes Drilling Fluids and its Fluids Environmental Services (FES) Team is providing services on a super major’s >30,000 ft ultra-deep gas project 60 miles off the shoreline of Galveston, TX. The challenging well will be among the hottest in the world with bottomhole temperatures expected to reach 550°F (288°C). BHDF is using the ADVANTAGE® hydraulics and temperature modeling system, advanced testing equipment such as the Chandler 7600 XHPHT Viscometer, and the successful MAGMA-DRILLSM HPHT emulsion-based system. With its recent successes in a number of deepwater drilling projects throughout the GoM, BHDF is now recognized as the leader in HPHT applications.

TCPBaker Atlas Conducts First Tubing Conveyed Perforating Job in Indonesia using Coiled Tubing in a Horizontal Well
In Indonesia, Baker Atlas has completed its first ever TCP job using coiled tubing in a horizontal well. Baker Atlas led four contractors on the job, arranged for several meetings with the client, and executed the job safely and efficiently. The success was made possible with help from other Baker Atlas and Baker Oil Tools districts in the planning and the provision of equipment, personnel, and job execution.

Baker Oil Tools India Solves Reaming Problem in India’s Remote Assam Well
Baker Oil Tools India operations team recently displaced a competitor, saved a client significant downtime, and displayed exemplary teamwork in the remote Assam region of India. The customer needed to under-ream the hole to ensure sufficient clearance to run 16" casing, but a restriction in the wellhead prevented the use of a conventional bit and a bi-centered bit had already proven unsuccessful. After drilling problems continued, BOT’s field personnel recommended utilizing the LOCKOMATIC® Under-reamer with PDC Cutters to ream the hole out to 17-1/2". After solving logistics problems, the equipment arrived safely in Assam from Prudhoe Bay, Alaska and was successfully run in the well to allow the casing run. The operations team in India received congratulations from the client who stated, “I do not believe we would have successfully drilled and cased this hole section without your help.”


 Highlights...

AutoTrak SystemAutoTrak® System Utilized in Record Sakhalin Island ERD Well
HOUSTON INTEQ, a division of Baker Hughes Incorporated, announced that the company’s AutoTrak rotary steerable system was deployed on ExxonMobil’s recently announced record extended reach drilling (ERD) well on the Sakhalin-1 Project. The Exxon Neftegas Limited (ENL) Z-11 well marked the longest measured depth extended-reach well in the world.

Located on Sakhalin Island, offshore Eastern Russia, the record setting well achieved a total measured depth of 37,016 feet (11,282 meters) or over seven miles. “The INTEQ Sakhalin team is proud to have participated in ENL’s success on the Z-11 with its AutoTrak technology and services,” said Paul Butero, INTEQ’s President.

Baker Hughes at Technical Conferences

SPWLA Annual
June 3 - 6
Austin, Texas, U.S.A.

Brasil Offshore
June 19 - 22
Macae, Brasil

(MIOGE) 9th Moscow International Oil & Gas Exhibition
June 26 - 29
Moscow, Russia

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