Baker Hughes Awarded Horizontal Well Completion Contract for China Gas Field

Frac-Point, multistage, openhole fracture completion technology unlocks reserves in tight gas sands.

HOUSTON, TX – June 8, 2010 – PetroChina recently awarded Baker Hughes (NYSE: BHI) a contract to supply 77 multistage openhole fracture completion systems for horizontal wells in the tight gas sands of the Changquing Field, China's second largest onshore oil and gas field. Baker Hughes was awarded the one-year contract based on successful deployment of its Frac-Point™ technology in the Sulige gas field last year.

PetroChina is expanding its horizontal well, multistage fracturing activities to increase gas production from the tight gas sands in the Changquing Field. Characterized by low permeability, low pressure and low yields, reserve recovery from Changquing is technically complex – requiring innovations like multistage fracture completions to overcome the geologic challenges. Baker Hughes will provide Frac-Point systems for three-quarters of the total 102-well horizontal drilling program.

"We successfully deployed Frac-Point at the Sulige Field after other companies had limited success," says Richard Ward, president of Asia Pacific operations for Baker Hughes. "Based on this achievement, PetroChina chose Frac-Point for the majority of these difficult completions in the Changquing Field."

The Frac-Point system uses specially designed short-radius, openhole packers and frac sleeves to isolate intervals of a horizontal section and pinpoint fracture treatment placement. The one-trip system allows the fracture treatments for each section to be pumped on the same day, eliminating the expense of mobilizing and demobilizing pumping equipment. Frac-Point improves overall production by providing greater control of the frac treatment along the entire length of the horizontal lateral.

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