HALLIBURTON SPERRY DRILLINGDIRECTIONAL DRILLING & M/LWD PERFORMANCE REVIEWMAY 1 – SEP 30 2013

Halliburton Life Rulesالحياة - قواعد هاليبرتون

الوقاية مهماتالعمل تصريحاآلمنة القيادةالشخصية

الطاقة نظام عزلوالتسجيل

المرتفعة المغلقة األماكن دخول األماكن في العملالي ١٠ للوصول صفر قواعد

حوادث

الكيميائية المواد تـداولالمتساقطة األشياءاليدوية العِددالرفع عمليات

LOTO PPE Work Permit Driving Safety

Working at Height Confined Space

10 to ZERO

Chemical Handling Dropped Objects Hand Tools Lifting and Hoisting

Safety is part of our culture at Halliburton.It is not only a priority, but also a core value.

Dave LesarChairman of the Board,

President and Chief Executive Officer

Zero Fatalities

Zero LTI

Zero Recordable Injuries

Zero Recordable MVAs

Zero Env. Incidents

LTI: Lost Time Injury

MVA: Motor Vehicle Accident

Halliburton HSE Performance at Khalda Operation Area (Incidents Stats.)

Khalda / Halliburton Operation (Q2&3 2013)

6

Zero LTI, Zero damage to equipment and Zero environmental incidents with Khalda

Sperry drilled successfully 29 wells with 13,697 operating hrs with a run success rate of 93%

Successful record breaking run of Meghar-3 with a complete footage of 6543 ft in 44.2ft/hr

Another successful record breaking run of Pepi-12 with a complete footage of 2862 ft in 18.3ft/hr

Thorough investigation of all failures and rapid action taken to correct and prevent future failures

HIGHLIGHTS

7

7” GeoForce Motor back-off on W. Kanayes-I2 EDC-54 after 17 circulation hrs

7” Geoforce motor in well SIWA R-1X rig EDC-48 was exposed to high downhole vibration which exceeded the tool limits due to the damage/loss of the PDC bit blades in hole

LOWLIGHTS

New PDC bit vs the Damage PDC bit

8

LWD failure occurred in well Tayim-W2 due to lack of process adherence

Several MWD service interrupts occurred due to downhole vibration

LOWLIGHTS

9

BUCHIS-W2X

JADE-N2X KHALDA SW-5 NARMER-1X NEILOS-5 RAMOSE-1X SHROUK-E31 SHROUK-E32 SIWA R-1X SYRAH-N1X TAYIM W-2 UMB-221 AMOUN NE-2 FAGHUR-S5 SHAMS-15X

WELLS COMPLETED DURING MAY 1 – SEP 30 ‘03

SIWA E-1X TUT-105 UMBARKA-225 AG-117 PEPI-12 W.KALABSHA A-8 HYDRA 7 KHEPRI-48 ST1 Meghar-3 NRQ-255-4 A PEPI S-1X TAYIM W-4 ST UMB-224 W. KAL N-4 W.KANAYES I-2

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May June July Aug Sep

# Wells 8 6 4 3 8

# Runs 29 25 18 22 32

Total Operating Hours 3186 2758 2166 2543 3044

Total Footage (m) 49,354 43,946 28,441 33,957 46,548

Total NPT (Hrs) 24 18 15 37.5 75

Total # Service Interrupts 2 1 1 2 1

Total # Trips For Failures 1 1 0 2 5

Operating Efficiency (%) 99.2 99.3 99.3 98.5 97.5

Bit Run Success Rate (%) 97 96 100 91 85

MTBTFF (Hrs) 3186 2758 1618 1271.5 608.8

MTBTFF 3 Mo Rolling Avg 2620.7 2987.3 2520.7 1882.5 1166.1

Total NPT Rig Cost ($) 35,016 26,262 21,885 54,713 109,425

SPERRY PERFORMANCE SUMMARY DD/MWDMAY-SEPT 2013

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OPERATING HOURS VS. NPT HOURS

May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct0.0

500.0

1000.0

1500.0

2000.0

2500.0

3000.0

3500.0

50.0%

55.0%

60.0%

65.0%

70.0%

75.0%

80.0%

85.0%

90.0%

95.0%

100.0%

Operating hrs. NPT Operating Efficiency %

Ope

ratin

g E

ffic

ienc

y

%%

Ope

ratin

g H

ours

12

RUN EFFICIENCY

May-13 Jun-13 Jul-13 Aug-13 Sep-130

5

10

15

20

25

30

35

50.00

55.00

60.00

65.00

70.00

75.00

80.00

85.00

90.00

95.00

100.00

29

25

18

22

32

2 1 1 2 11 1 02

5

Number of runs Runs with SI TFF Run efficiency %

Num

ber

of r

uns

Run

Effi

cien

cy %

13

Well Name Run #

NPT Hrs

Preliminary Findings & Probable Cause

Corrective Action / Action Plan

1) W. Kanayes I-2 600 20 Motor backed off at adjustable ring connection.

1. Torq Lok will be mandatory for all motor connections.

2. Rotor Catcher will be installed in all Sperry motors.

3. Utilization of whirl analysis for all drilling runs.

2) PEPI-S1X 500 19Power section elastomer failure & mud invasion of the bearing assembly due to seal failure.

1. Change bearing system from oil-packed lubricant to mud-lubricant system.

3) PEPI-12-ST 400 24Power section elastomer failure & mud invasion of the bearing assembly due to seal failure.Additional to physical damage to the rotor’s thread box connection.

1. Change bearing system from oil-packed lubricant to mud-lubricant system. 2. Replaced damaged parts.

4) Tayim W-2 600 18 Human procedural error in using the proper adapter tips compression.

1. Memo was circulated to all M/LWD field engineers.

2. Re-assess LWD crew.3. Check sheets re-submitted to the field

engineers.

5) PEPI-12-ST 500 18 Many clutch slips occurred as the piston was totally compressed (mud invaded), when moving the oil plug the mud came out from it instead of oil.GeoPilot TL 381 failed L1 test, tool sent “No Response” Tool-face error and clutch slip error.

1. Problematic GeoPilot sent to higher level of repair and maintenance for full tear down to component level for further investigation. Still in Progress.

TOP 5 NPT EVENTS MAY 1 - SEPT 30 2013

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WHAT WENT WRONG ACTION TAKEN 7” GeoForce motor back off

EDC-54 W. Kanayes-I2 after 17 circulation hrs

The rotor was in a bad condition, & the connection of the adjust ring was destroyed (Swell).

Torq Lok will be mandatory for all motor connections

Rotor Catcher will be installed in all Sperry motors

Utilization of whirl analysis for all drilling runs

1) W. KANAYES-I2 EDC-54

Adjust ring connection

The departed motor

15

WHAT WENT WRONG ACTION TAKEN Mud conditions (high mud

solids, invasive muds) Running the motor in excess

of recommended parameters

Changed bearing system from oil-packed lubricant to mud lubricant system

2) PEPI-S1X EDC-16

Corrosion impact on the HCP (hard chrome plated) rotors

16

WHAT WENT WRONG ACTION TAKEN

Failure of rotor adopter seal boot

Changed bearing system from oil-packed lubricant to mud lubricant system

Replaced damaged parts

3) PEPI-12-ST EDC ST-5

Damaged motor catch stem’s pin thread

Damaged rotor’s thread box connection

Wear on stabilizer blades and the body has crack shown on its surface

17

WHAT WENT WRONG ACTION TAKEN Human procedural error

in using the proper adapter tips compression range between 0.25" and 0.75”.

Failure of LWD lead engineers to follow the check off system in place to prevent the incident

Check sheets re-submitted to the field engineers & Spot audit will be conducted on two rigs to ensure compliance

Disciplinary action was applied to the LWD lead engineer and re-assessment of LWD crew

4) TAYIM W-2 EDC-19

Memo was circulated to all M/LWD field engineers

18

WHAT WENT WRONG ACTION TAKEN Many clutch slips

occurred as the piston was totally compressed (mud invaded), when moving the oil plug the mud came out from it instead of oil

GeoPilot TL 381 failed L1 test, tool sent “No Response” Tool-face error and clutch slip error

Problematic GeoPilot sent to higher level of repair and maintenance for full tear down to component level for further investigation. Still in Progress

5) PEPI-12-ST EDC ST-5

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