Improving Wellbore Stability Predictions at Well and Reservoir Scale using 3D Geomechanical ModelBagus Arief WibowoGeologist Consultant Reservoir Software and Technology

2014 BAKER HUGHES INCORPORATED. ALL RIGHTS RESERVED. TERMS AND CONDITIONS OF USE: BY ACCEPTING THIS DOCUMENT, THE RECIPIENT AGREES THAT THE DOCUMENT TOGETHER WITH ALL INFORMATION INCLUDED THEREIN IS THE CONFIDENTIAL AND PROPRIETARY PROPERTY OF BAKER HUGHES INCORPORATED AND INCLUDES VALUABLE TRADE SECRETS AND/OR PROPRIETARY INFORMATION OF BAKER HUGHES (COLLECTIVELY "INFORMATION"). BAKER HUGHES RETAINS ALL RIGHTS UNDER COPYRIGHT LAWS AND TRADE SECRET LAWS OF THE UNITED STATES OF AMERICA AND OTHER COUNTRIES. THE RECIPIENT FURTHER AGREES THAT THE DOCUMENT MAY NOT BE DISTRIBUTED, TRANSMITTED, COPIED OR REPRODUCED IN WHOLE OR IN PART BY ANY MEANS, ELECTRONIC, MECHANICAL, OR OTHERWISE, WITHOUT THE EXPRESS PRIOR WRITTEN CONSENT OF BAKER HUGHES, AND MAY NOT BE USED DIRECTLY OR INDIRECTLY IN ANY WAY DETRIMENTAL TO BAKER HUGHES INTEREST. # 2014 Baker Hughes Incorporated. All Rights Reserved. As we all know, Baker Hughes has long been known for its excellence in the area of products and services in the wellbore. And since 3 or 4 years ago, through acquisitions of 4 major consultancies (GCA, GMI, Helix RDS, and EPIC) and 3 software companies we brought their technology and expertise to become the natural centre of excellence for reservoir understanding within BHI.

And Today I will be presenting a technology that enable geology , geophysicist, and geomechanics engineeer to improve their understanding of the wellbore integrity , stability at well and reservoir scale using an accurate approach of 3D geomechanical model.

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Why Geomechanics?Todays reservoirs are more difficult to access and develop :Most reservoir approach depletions and many are compartmentalizedOnshore reservoirs are deeper and manifest HPHT conditionsOffshore reservoirs are in deep water and at greater depthHeavy oil recovery requires high temperature operationsUnconventional resources exploitations (tight gas/oil, etc.)Geomechanics is a KEY enabling technology for Todays technically challenged reservoirsAdvanced technology is required to optimally drill, complete, stimulate and produce these reservoirs# 2014 Baker Hughes Incorporated. All Rights Reserved. Todays reservoir are more difificult to access and develop, as it already approach depletions, reservoir are getting deeper and manifest HPHT condition, more e&p drilling in deep water and so forth. In such challenges, we need to understand the mechanical behavior of reservoir and overburden formations during the different phases of petroleum operations, and thats where geomechanics analysis play an important role that enables us to predict wellbore and reservoir deformations/failures and generates engineered solutions for optimal field developments.

2Accurate Geomechanical models required throughout the Life of a ReservoirReservoirGeomechanicalModelEXPLORATIONLeakage & migration analysisDetermining fault seal propertiesPore pressure from seismicDRILLINGOptimize mud weightOptimize well trajectoryChoose casing pointsPore pressure predictionReal time wellbore stabilityEXPLOITATIONDetermine fault sealing properties andLeakage & migration analysisFractured reservoirsReservoir compaction and production-induced faultingCOMPLETIONSand production predictionHydraulic fracturingReservoir compaction and production-Induced faulting

# 2014 Baker Hughes Incorporated. All Rights Reserved. Geomechanical Model is the Foundation of Field Optimization

3Why Geomechanics?

# 2014 Baker Hughes Incorporated. All Rights Reserved. These are some examples of geomechanics analysis implementation, from well bore centric problem to a reservoir scale problem, for example Casing can fail by a number of means, either above the reservoir or within the reservoir, Sand production can erode surface facilities as well as completions, to analysis of faults and fractures.

To achieve production & reservoir life optimization. We need to ensure the complex wells are:

Safer & StableCost EffectiveProfitable

437% of drilling NPT due to Pore Pressures & Wellbore Stability issues.1,2,3 Welling & Co. (2009); Industry Survey Dodson et al. (2004); Incidences from 549 GoM shelf wells (Pshale at crestPsand