Weatherford Drilling with Casing Dw C Managed Pressure

Weatherford Drilling with Casing (Dw. C) + Managed Pressure Drilling (MPD) 26 th May 2017 TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING

Dw. C Opportunities: 1. I am drilling short conductor/surface casing 2. I plan to batch-drill 3. The section will encounter loss circulation and need to save mud cost 4. I have trouble getting casing or liner to TD, reaming before running casing is standard practice 5. I am drilling through high pressure zone into low pressure reservoir or weak zone 6. When running in casing to seafloor I have trouble finding the predrilled hole 7. I can use non-retrievable Dw. C as the section doesn’t require logging or steering TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved. 2 2

Weatherford Dw. C Footprint Implemented in 38 countries servicing over 138 clients Focus on non-retrievable system Time saving Problem resolution Manufactured and shipped over 1, 800 tools to date Drilled 1500 wells , over 441, 000 m in total Casing sizes from 4 -1/2” to 24” TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved.

Key Value Drivers for Dw. C/Dw. L • Safety – Reduced number of trips and less handling of BHA’s – Simplified procedure for rig crews – Well control procedures as per conventional drilling – – Casing/Liner is on bottom • Cost Reduction • Hazard Mitigation – Improves drilling efficiency – – Eliminate trips Reduces risk and mitigate hole problems – Lower mud density – Reduce or eliminate fluid losses – Cure or reduce mud losses – Trouble zones always behind pipe – Provides ability to get casing to bottom first time – Reduced surge/swab effects No tripping of pipe TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved. 4

Dw. C System Advantages & Disadvantages Non-Retrievable System Casing Float Collar Retrievable System Advantages Disadvantages Simple to operate and low cost No directional control except nudge system No Risk of Through-casing irretrievable logging only (GR, tools/stuck BHA Acoustic, in the hole Neutron, Resistivity) Cementing can commence immediately upon Total Depth Unable to land sub-sea wellhead Advantages Disadvantages Steerable with PDM or RSS More complicated to set up and operate and high cost MWD & LWD Capabilities Risk of irretrievable tool/stuck BHA Ability to land subsea wellhead Flat time between reaching TD & cementing Defyer Casing Bit TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING Long rate hole to ream with next BHA if used with RSS © 2015 Weatherford. All rights reserved. 5

Dw. C System – Defyer Series Drilling & Reaming Products NON-RETRIEVABLE SYSTEM TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved. 6

Non-Retrievable Dw. C Defyer™ Series Drillable Casing Bit DPA Series Steel blade strip DT Series Excellent Reaming Tools Aluminum blade support PDC Cutters Steel Outer Body Tungsten Carbide Hardfacing on Aluminum surface 6 mm round TSP pressed into the Aluminum Aircraft grade Aluminum nose (fully PDC drillable) Interchangeable nozzles PDC gage cutters 80% less steel to drill out Drill up to 20, 000 psi Unconfined Compressive Strength (UCS) formation Ceramic Nozzle Drill up to 7, 000 psi Unconfined Compressive Strength (UCS) formation © 2015 Weatherford. All rights reserved. 7

Weatherford Defyer DPA Field Drillout Result 1 TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved.

TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved. 9

Dw. C System – Surface Casing Drive & Drilling System NON-RETRIEVABLE SYSTEM TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved. 10

Dw. C Surface Casing Drive & Drilling System 1. n Over. Drive™ System Combines Six Conventional Tools into One Remote Operated Tool Power Tong Main Hoisting Elevator Fill up & Circulating Tool Stabber/Stabmaster™ ISIS (Integrated Safety Interlock System) – Weight Compensator – Independent Torque Measuring System – – – TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved. 11

Tork. Drive™ Portfolio TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved. 12

Dw. C Surface Casing Drive & Drilling System 2. Dw. C Spear – Attached to top drive – Simple operating mechanism with ¼ turn right to engage; ¼” turn left to release – Provides simultaneous of circulation and rotation to the casing string – Accommodate with Mud Saver Valve (upon request) – Simple rig up procedure – ICDT Size: l l 9 -5/8” – 13 -3/8” ICDT 16”-24” ICDT – Modified Dw. C Spear l 5 ½”, 7”, 9 -5/8” & 13 -3/8” Internal Casing Drive Tool (ICDT) TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING Modified Dw. C Spear © 2015 Weatherford. All rights reserved. 13

Dw. C System – Accessories NON-RETRIEVABLE SYSTEM TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved. 14

Dw. C System – Accessories n Non-Rotating Dw. C Centralizer – Enhanced blade design for optimal fluid bypass – Internal journal bearing lining Reduce friction and casing wear – Light weight for safe and simple installation – Extremely durable throughout the casing drilling operation TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved. 15

Dw. C System – Accessories n Centralizer Sub – Hardwearing, robust construction – Suitable for high side force, abrasive environment – Also used in tight annulus application where slip-on centralizer is not an option TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved. 16

Dw. C System – Accessories n Float Equipment – As mechanical well control barrier during casing while drilling application – Installed for cementing operation TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved. 17

Float Collar Tested to API RP 10 F Category III Standard 18 © 2015 Weatherford. All rights reserved. 18

Dw. C System – Accessories n Torque Ring – Increase connection torque rating for drilling/reaming with casing application – Commonly used for API Buttress connection, where no positive shoulder available on the connection TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved. 19

Proven Connections for Dw. C / Dw. L n Standard Buttress with torque rings n GB Tubulars GB CD and GB CDE Modified Buttress n Vam - DWC/C, DWC/DS, DWC/U n Vam SLIJ II, Vam Top, New Vam (obsolete) n Tenaris. Hydril Wedge Threads – 513, 521, 523, 563 n Tenaris Blue n Hunting SLSF n US Steel Star Steel - CDC n ULTRA-SF (Reaming with casing in shale plays) n ULTRA-DQX n Dril-Quip E 60 MT, H 60 MT n Vetco RL 4 S © 2015 Weatherford. All rights reserved. 20

Dw. C System – Cases Histories NON-RETRIEVABLE SYSTEM TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved. 21

Real Result Drilling 20” Casing Client PTTEP Location Myanmar Equipment Defyer 20” x 24” DPA 8419 Results Drilled 50. 6 m to a depth of 600 m TD, using casign spear as the casing drive system. Another two similar drilling length wells were drilled near the same block. Value Install conductor string through choppy current in first attempt. Safer and more efficient Drilling with Casing operation. © 2015 Weatherford. All rights reserved.

Real Result Drilling 20” and 13 3/8” Casing Client Murphy Oil Malaysia Location Malaysia Equipment Defyer 20” x 24” DT 306 & Defyer 13 -3/8” x 16” DPA 4413 20” Casing Shoe Results 13 3/8” Casing Shoe 20” DT 306 bit drilled 119. 4 m (391. 73 ft) of 20” casing string to a depth of 180 m (590. 55 ft). Drilled out the cement and 20” DT 306 shoe track with the 13 -3/8” x 16” DPA 4413 in 2 hours 50 minutes without any issue. 13 -3/8” DPA 4413 bit drilled 317. 5 m (1041. 66 ft) of 133/8” casing string to a depth of 497. 5 m (1632. 21 ft). Drilled out the 13 -3/8” DPA bit with a 5 -bladed conventional PDC bit in 12 minutes. Value Drilled and cemented both conductor and surface hole casing in less than 48 hours time. © 2015 Weatherford. All rights reserved.

Real Result Drilling 24” Casing Client OMV New Zealand Location Offshore New Zealand Equipment Defyer 24” x 27” DT 306 Results 24” DT 306 bit drilled 116 m (381 ft) of 24” casing string to a depth of 263 m (863 ft). 24” conductor batch drilling job (total 9 wells). Average ROP inclusive connection time was controlled to minimize platform foundation washout to 10. 8 m/hr (35. 4 ft/hr). Average on bottom ROP was 11. 2 m/hr (36. 7 ft/hr). Value The planned eight conductors were installed so efficiently that a ninth conductor was added to the program. © 2015 Weatherford. All rights reserved.

Real Result Drilling 13 3/8” Casing Client Horizon Oil Location PNG Equipment Defyer DPA 8516 13 -3/8” x 17” Results Drilled 935. 7 m to a depth of 1006 m TD, using ICDT spear as the casing drive system. Drilled through sandstone, claystone, siltstone, coal and limestone Value Dw. C application saved about 2 days rig time (equal to US $ 500, 000) compare to conventional drilling mode that require wiper trips © 2015 Weatherford. All rights reserved.

Rotating Control Devices (RCD) TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved. 26

Safe. Shield® RCDs Dual Element 7000 series Dynamic Pressure Static Pressure 2500 psi 5000 psi 1500 psi 3000 psi 1500 psi Model 9000 9” ID IP 1000 7” ID Model 7100 7” ID = Internal Diameter of Bearing Assembly. Pass-through diameter = ¼” less. © 2015 Weatherford. All rights reserved.

RCD Selection Safe. Shield RCD Model 9000 IP 1000 7100 Static Pressure (psi) 500 1500 5000 Dynamic Pressure (psi) 500 1000 2500 RPM 100 100 Bore I. D. (inch) 9. 00 7. 00 Number of Elements single dual Element type Natural & Polyurethane © 2015 Weatherford. All rights reserved.

Drilling with Casing + Managed Pressure Drilling (Case History) 4 -1/2” DWC TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved. 29

Project Introduction n n n Country : Papua New Guinea (PNG) Well Type : Side Track 2 Job Type : 4 -1/2” Dw. C (Hole Size 6” OD) Depth In : 1485 m (Fault start at 1490 m) Depth Out : 1675 m Inclination Angle: 18 deg Job Background In the previous two conventional drilling attempts on getting the conventional drilling BHA and casing string past the Fault rock section, combating against losses and the string encounter formation severe collapse causing the stuck of BHA (1524 m) and also failure tripping in the casing string to targeted depth. Significant NPT was incurred on the project. Main bore and ST 1 well were abandoned. Casing drilling technique was being considered to install the casing string across the unstable fault rock zone and allow next hole section to be drilled until the lower reservoir zone. © 2015 Weatherford. All rights reserved. 30 30

Project Introduction 50% Sandstone, 50% Siltstone © 2015 Weatherford. All rights reserved. 31

Project Summary Pore Pressure : 17. 2 ppg Fracture Pressure : 19. 6 ppg © 2015 Weatherford. All rights reserved. 32

ECD with 14. 5 ppg MW + SBP (170 GPM) MW ECD with No SBP ECD + SBP Target ECD at Bottomhole 17. 3 ppg 17. 5 ppg 17. 8 ppg 18. 0 ppg SBP 245 psi 300 psi 390 psi 440 psi © 2015 Weatherford. All rights reserved. 33

SBP during Connections (Pumps Off) MW No SBP Applied Target BHP 17. 3 ppg 17. 5 ppg 17. 8 ppg 18. 0 ppg SBP 830 psi 885 psi 970 psi 1030 psi Status OK OK OK Fracture at Shoe © 2015 Weatherford. All rights reserved. 34

Q&A TUBULAR RUNNING SERVICES - TOTAL DEPTH SERVICES/DRILLING WITH CASING © 2015 Weatherford. All rights reserved. 35