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SUSTAINABLE SAGDSteam Assisted Gravity Drainage

At Nalco Champion, our programs ensure that safety is no accident. Protecting the environment, and the health and safety of our employees, customers and the communities in which we live and work are among our highest priorities.

We operate with strong values — reaching our goals, doing what’s right, challenging ourselves, working together, making a difference — and doing it all with safety in mind.

We align our business practices to support the sustainable production of energy for the world, with products, services and technology designed to help you produce and refine oil and gas in a more efficient and responsible manner than ever before. Predictive, proactive and practical, Nalco Champion’s programs ensure responsible operations and support the environmental, social and economic objectives of sustainable development.

MORE THAN WHAT WE DO

SAFETY IS WHO WE ARE

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CREATING SUSTAINABLE SOLUTIONSWith oil that cannot be produced using conventional methods and hydrocarbon characteristics that are increasingly difficult to treat, today’s oil producers encounter more complex technical challenges than ever before.

Oil produced through Steam Assisted Gravity Drainage (SAGD) presents a number of upstream treatment issues — from resolving complex emulsions to managing produced water for reuse in feed steam generation. Reaching production target rates and profitability goals requires the optimization of facilities and multiple variables associated with phase separation, steam production and water quality.

As the world leader in oil and water treatment, we know how to partner with our customers to solve complex problems inherent in SAGD operations. Our custom solutions are built to address production issues from recovery of oil, as well as water management issues — from reservoir to refinery. Our extensive expertise enables the identification and application of a full range of programs and specialty chemistries to maximize your SAGD production, reduce equipment downtime and keep your operations running smoothly.

THE NALCO CHAMPION ADVANTAGEEXPERTISE: The world’s leading expert in oilfield process and water treatment solutions, Nalco Champion offers world-class solutions for your operations.

RESEARCH: We have more than 35 researchers exclusively dedicated to addressing water, heavy oil and bitumen issues for SAGD. Research commitment combined with industry knowledge and onsite expertise gives you a strong problem-solving partner to ensure your operation’s success.

RESOURCES: Nalco Champion has more facilities, more onsite technical experts and more people on the ground to provide exceptional service. With our global network of 13 technology centers and regional offices in 160 countries, we can deliver expertise and support everywhere it’s needed.

COMMITMENT TO SAFETY AND SUSTAINABILITY: We have an uncompromising commitment to health, safety and the environment in everything we do.

RESOLVING COMPLEX EMULSIONS The injection of steam into the reservoir to recover heavy oil results in a complex water-in-oil-in-water emulsion. Compared to emulsions encountered during conventional oil production, the complex emulsions are highly stable, requiring finely tuned emulsion breaker (EB) and reverse emulsion breaker (REB) chemical treatment programs to facilitate the isolation of dry oil.

Nalco Champion uses teams of scientists and field formulators to develop new EB and REB products designed specifically to address the complex emulsions for each customer. By coordinating laboratory chemical program

development with onsite production formulation, we provide you with the most robust solution possible. Your treatment program is designed to maximize the cost-effectiveness of the total oil-water separation program.

Our customized EB and REB programs deliver dry, on-spec oil with minimal interface issues and waste. They also reduce water disposal needs and enable cost-effective produced water reuse for steam production. Maintaining high produced water quality for reuse maximizes production with more effective and efficient steam generation.

OPTIMIZING WATER USAGE SAGD operators rely on recycled produced water as a major component for steam production. Preparing this water for reuse is critical, as each formation imparts unique impurities to its produced water. At the same time, managing produced water in a responsible way and enhancing reuse of a valuable natural resource is essential.

At Nalco Champion, our work with thousands of steam-generating applications over more than 80 years has provided us with the knowledge and experience to push beyond traditional performance boundaries, helping our customers produce safe, reliable steam in the most cost-effective manner possible. No one can match our breadth

of experience and proven ability to handle every challenge in every geography – from heavy to light viscosity, and at the most severe temperatures and pressures.

Our superior reverse emulsion breakers help producers maximize water clarification performance as well as water volume available for reuse.

Our water clarification programs enhance removal of hardness, suspended solids, silica and organic content, minimize sludge volume, help with environmental compliance and improve the performance of existing mechanical treatment methods.

PROTECTING EQUIPMENT FROM SCALINGThe emulsion mixture resulting from the SAGD recovery process is broken into oil and produced water. The produced water contains high levels of silica, hardness, metal ions and organic material. Under highly cycled operating conditions, these materials deposit inside once-through or heat recovery steam generators and evaporators. Managing this deposit formation and controlling corrosion is vital. Left unchecked, deposits can result in poor heat transfer, reduced steam generating efficiency, asset failures, plant downtime, lower production, excessive operating costs and increased emissions.

Combining the proper chemical treatment solutions with our technical expertise can prevent costly repairs to your equipment and loss of revenue due to production upsets.

Customers can count on Nalco Champion to identify and characterize deposits, design appropriate field tests and employ novel chemistries to minimize and clean deposits safely and effectively. We offer a complete tool box of anti-scaling solutions, corrosion inhibitors and cleaners with a proven track record of cost-effective results.

SOLVING THE MOST COMPLEX SAGD CHALLENGES

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YOUR PARTNER IN SAGD RECOVERY OPERATIONS Each phase of the SAGD recovery process has specific challenges. Nalco Champion offers a comprehensive set of products, applications and world-class industry expertise to address these challenges and contribute to the overall success of your operation:

Steam additives that enhance heavy oil recovery, resulting in

reduced steam-to-oil ratios and increased recoverable reserves

Emulsion breakers to resolve complex emulsions formed during

SAGD heavy oil operations

Reverse emulsion breakers to clean and clarify produced water

for steam generation

Water clarification programs to remove hardness, suspended

solids, silica and organic content and other impurities

Deposit inhibitor programs to minimize deposit formation inside

equipment

Cleaning programs that safely and successfully return assets

to original operating parameters with significantly reduced

downtime

Coagulants and flocculants to treat dispersed oil droplets in

the water entering the skim tank

Automation monitoring and product control platforms

that allow precise chemical program dosage, notification

and response to upset conditions, and extended

asset integrity

Corrosion Inhibitors to protect your

valuable assets

Warm lime softening pretreatment

programs that reduce operating costs

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EFFECTIVE, RELIABLE SAGD EXPERTISE FOR HEAVY OIL Nalco Champion has been involved with heavy oil and bitumen production for more than four decades. We understand the critical challenges facing today’s producers throughout the entire life cycle of an asset.

We take a holistic approach to effective treatment by addressing the entire production process. Working in close partnership with our customers, our researchers spend extensive time in the field to assess facility operations, investigate the root cause of critical issues and deliver solutions that yield results. We pre-screen chemistries for performance with state-of-the-art lab equipment and conduct onsite field trials before introducing a new chemistry into an operational setting. With Nalco Champion, you can expect a solution that is perfectly suited for your operation and will save you time and money.

As part of our SAGD extraction programs, we offer a broad range of innovative products and services, including:

Customized emulsion breakers for rapid, distinct separation of oil and water

Deposit inhibitor programs protect equipment from deposition, increase operating efficiencies and ensure asset integrity

Cleaning programs safely and successfully return assets to original operating conditions with significantly reduced downtime

Steam additives enhance bitumen recovery, resulting in reduced steam-to-oil ratios and increased recoverable reserves

Automation monitoring and product control platforms for precise chemical program dosage, notification and response to upset conditions plus extended asset integrity

Corrosion Inhibitors protect your valuable assets

Warm lime softening pretreatment programs reduce operating costs

NALCO CHAMPION EMULSION BREAKER BENEFITS

• Rapid, distinct separation of oil and water to meet customer specifications

• Versatility to treat virtually all types of emulsions

• Chemical solutions are convenient to handle and easily dispersed

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GENERATING MEASURABLE RESULTS SILICATE INHIBITOR TECHNOLOGY INCREASES EQUIPMENT RELIABILITY Oil Sands SAGD Facility / Alberta

SITUATION: A major Canadian operator near Cold Lake, Alberta, producing bitumen with a SAGD recovery project, asked Nalco Champion for assistance in reviewing steam quality and efficiency in its once-through steam generators (OTSGs). Nalco Champion conducted a field trial to evaluate opportunities for improvement that would result in increased steam generation in the OTSGs. One OTSG was selected for a four-month evaluation to compile baseline performance data. The evaluation, which included an intensive site audit and thorough review of historical operating data, determined that the OTSG feed water contained high levels of calcium, magnesium, iron and silica. Nalco Champion concluded that OS22055T, a unique silicate scale inhibitor treatment program developed specifically for SAGD recovery, would yield excellent results.

OS22055T contains proprietary hardness and silicate inhibitor technologies that can successfully solve steam quality and efficiency problems.

SOLUTION: Nalco Champion initiated a long-term trial of OS22055T in the OTSG feed water system. Different treatment scenarios were tested concurrently in each pass of one OTSG. The pass treated with Nalco Champion OS22055T operated at higher cycles of concentration, and provided higher steam quality under severe conditions. The use of this technology increased the amount of silica transported, which translated into an 87 percent reduction in silicate scale deposition compared to the untreated portion of the system. Results of the study indicate that the producer can safely and reliably run their system with an increase in steam quality of more than six percent with the use of OS22055T. This program successfully improves the efficiency, cost-effectiveness and reliability of plant operations for SAGD recovery of oil, and reduces emissions.

LIME SOFTENING RHEOLOGY MODIFICATION REDUCES OPERATING COSTS Oil Sands SAGD Facility / Alberta

SITUATION: The use of warm lime softening (WLS) for the pretreatment treatment of feed water for OTSGs is a common practice in the heavy oil recovery industry in Alberta. WLS uses lime and magnesium oxide (MgO) to remove hardness, silica and other unwanted constituents through a precipitation process. Softening depends on a consistent and constant supply of lime and MgO slurries to establish a stable sludge bed in the softener. Constant plugging of slurry feed systems and insufficient dosage of lime slurry have plagued the industry for years, resulting in costly chemical and mechanical cleaning and poor WLS performance. In this case, an Alberta oil sands SAGD facility was experiencing major plugging issues in their WLS system, resulting in inefficient operation.

SOLUTION: Nalco Champion developed MORPHX™ 100, a unique pretreatment slurry program to specifically address this issue for the heavy oil operations of our customer. The technology was demonstrated in a successful six-month trial. MORPHX 100 lime rheology modifier is now a regular part of the operation’s total chemical program. The producer has gained tremendous value with the new program. Line and tank plugging issues have been reduced with superior operational reliability and measurable performance gains at the operation’s water treatment facility. Reduced mechanical and chemical cleaning has resulted in reduced operating costs (more than $400,000 annually) as less lime and MgO is used.

NEW EVAPORATOR CLEANING TECHNOLOGY Organic and inorganic materials build up inside evaporators used to clean produced water for steam injection. The deposits are traditionally removed by mechanical cleaning or highly corrosive chemical washes. These methods are labor intensive, involve considerable downtime, pose safety risks and can cause damage to the metal surfaces of the equipment.

Nalco Champion recently introduced a novel cleaning technology for evaporators that is safer for workers to utilize, extends the usable life of critical equipment and involves less operational downtime compared to other methods. This technology is only available from Nalco Champion.

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Together, We’re Taking Energy FurtherTM

Nalco Champion Headquarters3200 Southwest FreewaySuite 2700Houston, TX 77027Telephone: +1-713-627-3303

Sugar Land Technology Center7705 Highway 90-ASugar Land, TX 77478Telephone: +1-281-263-7000

Ecolab Worldwide Headquarters370 Wabasha Street NSt. Paul, MN 55102Telephone: +1-651-293-2233

Nalco Champion, an Ecolab company, offers a singular focus on providing specialty chemistry programs

and related services for upstream and midstream oil and gas, refining and petrochemical operations.

Through onsite problem solving and the application of innovative technologies, we deliver sustainable

solutions to overcome complex challenges in the world’s toughest energy frontiers. Together, we’re taking

energy further. Visit nalcochampion.com to learn more.

Ecolab, Nalco Champion, Nalco, the logo and taglines are trademarks of Ecolab USA Inc.

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