New Products PETROCARE Process Nitrate Technology for Control

PETROCARE™ The PETROCARE process § Licensed from Yara § Aqueous Nitrate added via water

Application Benefits and Concerns Ý Reduces H 2 S in reservoir Ý Lowers corrosion

PETROCARE™ Process § Exclusive license with Yara International ASA. (formerly the Agri division of

PETROCARE™ Products Product PETROCARE CN 45 PETROCARE CN 50 Density 1. 41 kg/l (11.

Summary § PETROCARE process is the treatment and inhibition of reservoir souring by application

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New Products § PETROCARE™ Process – Nitrate Technology for Control of Reservoir Souring Graham Smith Oilfield Marketing California, April 2004

PETROCARE™ The PETROCARE process § Licensed from Yara § Aqueous Nitrate added via water injection treats & inhibits reservoir souring, stimulating naturally occurring denitrifying bacteria § The NRB metabolism oxidizes H 2 S in the reservoir to produce harmless hydrogen sulfate, nitrogen and carbon dioxide § With nitrate NRB grow faster than and dominate SRB (not kill) § Can be significantly more effective at preventing reservoir souring than current chemical methods – Reducing costs, improving product quality, enhancing safety Confidential Property of Baker Petrolite. © 2004 Baker Hughes Incorporated All rights reserved.

Application Benefits and Concerns Ý Reduces H 2 S in reservoir Ý Lowers corrosion rate Ý Reduces amount of SRB Ü Target market is prevention/ remediation of reservoir souring § Not topside biocide replacement - does not prevent biofouling Ü Case by case basis Ü Long term solution § Not economically feasible for fields with short remaining production life Þ Concerns over NRB biofouling downhole – Must consider downhole injection conditions/ fracturing/ plugging Þ Logistics costs can be high ü Together BPC & Yara will develop better understanding of this technology, develop combination products and reservoir models Confidential Property of Baker Petrolite. © 2004 Baker Hughes Incorporated All rights reserved.

PETROCARE™ Process § Exclusive license with Yara International ASA. (formerly the Agri division of Norsk Hydro ASA) Exceptions: • MI – Norway • Champion – BP Azerbaijan • Nalco – BP Go. M: Horn Mountain, Atlantis, Thunderhorse • LATA – California Confidential Property of Baker Petrolite. © 2004 Baker Hughes Incorporated All rights reserved.

PETROCARE™ Products Product PETROCARE CN 45 PETROCARE CN 50 Density 1. 41 kg/l (11. 8 lb/USG) 1. 49 kg/l (12. 4 lb/USG) Crystallization Point -20 o. C (-4 o. F) -4 o. C (24 o. F) p. H 5 -7 Classification Non Hazardous HOCNF Category O or E Also: PETROCARE CN 77 (solid, dry, product) PETROCARE SN 98 (solid, dry, product) Confidential Property of Baker Petrolite. © 2004 Baker Hughes Incorporated All rights reserved.

Summary § PETROCARE process is the treatment and inhibition of reservoir souring by application of an aqueous Nitrate solution – NRB oxidizes H 2 S and they predominate over SRB – Does not directly replace topside biocides § Successful applications in North Sea – Reduces H 2 S, SRB and corrosion rate – Shell Mars will use PETROCARE supplied by BPC § Licence agreement with Yara – Exclusions (MI - Norway, BP - Azerbaijan & Go. M, LATA) § § Joint marketing and development efforts with Yara PETROCARE will be marketed as a specialty product with associated services and value pricing – § Strategy reflected in marketing and promotional material Apply on a case by case basis. Consider: – Economics/ Field Life/ Downhole Injection Conditions Confidential Property of Baker Petrolite. © 2004 Baker Hughes Incorporated All rights reserved.