Confidential. Not to be copied, distributed, or reproduced without prior approval.© 2017 Baker Hughes, a GE company, LLC

- All rights reserved.

SPE Knowledge Forum

10 Rules for Cost Effective Reservoir

Management

- RiskGuardTM

- FullStream

14 March 2019

David Bowling Business Development ManagerGeoscience and Petroleum Engineering

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Slide 2

Plan for the unexpected

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Slide 3

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Slide 4

Impact of Information on E&P cash flow

Source: The Digital Oil Field Oil and Gas Investor April 2004

Confidential. Not to be copied, distributed, or reproduced without prior approval.

Slide 5

GeomechanicsRelatedIncidents

Incident Identification

Source of increasing Risk (2011)

COST OF NPT

26BUS

D

AN ESTIMATED

25 %OF TOTAL DRILLING

COSTS

KEY FACTORSP

OO

RANALYSIS

PLANNING

COMMUNICATION

BARRIER MONITORING

CHANGE MANAGEMENT

SOLUTIONS

GEOMECHANICS ANALYSIS

PRE-DRILLING

REAL -TIME

COMMUNICATION

WHILE DRILLING

LOGGING

Our Industry Performance The Hard Facts

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Casing and Mud Design More Realistic

6

Include Geomechanics in wellbore stability mud weight design

Without Geomechanics (PP/FG Study) With Geomechanics

Both pore pressure AND collapse pressure needed

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Slide 7

Exploration Drilling loss of investment

Days

De

pth

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Slide 8

Bias

Availability Bias prior experience influences concepts

Confirmation Bias only use facts that support our decision

Blinkered mindset

Hindsight Bias

Overconfidence believing too much in our own decision competencies and estimates

-Invented-

Sunk Cost Fallacy to continue with a project after money, time and effort already invested

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Slide 9

Experience

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Slide 10

Integrate and align goals

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Slide 12

RiskGuard

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Slide 13

70% reduction in NPT

Optimize drilling, faster reaction time. Proactive not reactive

Optimise completion, larger hole size = more production

Explore deeper, further

RiskGuardTM Assessment

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Slide 14

Integrated RT Geomechanics- saved $30M

Background and Challenges

Wildcat deepwaterexplorationOffset well is 100km awayPoor 2D seismic, complex geologyUncertain pressure mechanisms AND stress distribution Narrow margin drilling

Approach and Solution

Real Time GeomechanicsTransition zone deeper, less dramaticDeepened hole section, lower mud weightDrilled faster

Results and Benefits

Safely drilled to planned TD Omit un-Reduce well costs by $30M

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Slide 15

Well Life Cycle

Information

Management,

Drilling Engineering,

Data Mudlogging,

Rig-Site SupervisionDrilling Dynamics

Drilling Fluid Systems

Formation

Evaluation MWD

Steerable

Drilling

Systems

High

Performance Bits

Completion

Fluids

Pumping,

Stimulation,

Filtration

Completion

Hook-ups

Tubing Conveyed

Perforating

Packers

Pre-Pack Well

Screens

Gravel

Packing

Services

Safety Systems

Flow Control

Equipment

Performance

Chemicals

Packers

Cementing

Equipment

Automated Production

Systems

Drilling Completion Production

D&E, C&P, Pressure Pumping D&E, C&P, Pressure Pumping D&E, C&P, Pressure Pumping

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Slide 16

Horizontal well tested validated

Geological uncertainties eliminated: structural plans clarified, gas-water contact location established, resource base defined Horizontal well achievable with high flow ratesCommercial Discovery

Background and Challenges

1037m horizontal Low-permeability sand Thin reservoir

Solution

Pre-drill modellingReal Time GeomechanicsReal Time PetrophysicsReservoir Navigation ServicesWell efficiency close to 100%.Gas inflow exceeded 1 mm3/dPotential to exceed 3 mm3/d

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Slide 17

Benchmark Asset Performance

Possible (3P) into Proven (1P)

Sub commercial (3C) into commercial (1C)

Explore deeper, further

Enhanced Recovery and Company Wealth

GeologyGeomechanics

Geophysics

Reservoir Engineering

Petrophysics

Production Technology

Completions

Project Management

and Economics

Drilling Engineering

Confidential. Not to be copied, distributed, or reproduced without prior approval.

Slide 18

Country Stress map (Kuwait)

BAHRAH

RATQA ABDALI

DHABI

RAUDHATAINSABRIYAH

UMM -NIQA

ABDULIYAH

AHMADI

ARIFJANBURGAN

DHARIF

KAHLULA

KRA -ALMARU

MAGWA

UMMGUDAIR

MINAGISH

RAHIYA

Najmah Horizon

Nor

thin

g (m

)

Easting (m)

XX,000

YY,000