0413499

WEATHERFORD W MAGAZINE 2004 FIRST QUARTER

• Underbalanced Drilling vs. Overbalanced Drilling• Next-Generation EM/MWD System• WellServ's Four-Step Intervention Process• Total Tubular Services5™ Program is Reducing Costs• Enterprise Excellence Process

пе>??14Simply Productive31"1

TECHNOLOGY;

Practical Level 1 through 4Multilateral Systems that Eliminatethe Need for Expensive Assemblies

LOCATION:

Wytch Farm, UK

BENEFITS:

• Practical technology reduces costs

• Reservoir returns are measurably enhanced

' Safety on the job site is increased

Weatherford is proving the value of multilaterals in the field. Our practical, safeand cost-effective technology shifts their value in your favor.

Project SummaryWeatherford successfully installed a StarBurst™ multilateral system for BP atWytch Farm on Furzey Island. The StarBurst system was set at 2,370 metersand created a level 4-cemented junction for structural integrity. The installationof the 9%" x 7" system, without operational or functional problems, resultedin completion ahead of schedule. Designed functionality of the junction allowedthe 1,200-meter lateral to be drilled and completed quickly and safely. The parentbore was then reopened by a simple but accurately designed series of perforationsto the face of the hollow whipstock without damage to the casing.

HCAU - Hydraulic Control Addressing Unit

ROSS™ - Remote Operated Sliding Sleeve

Weatherford RR Packer with hydraulicfeed through

Weatherford StarBurst perforated hollowwhipstock and packer

Technology UsedThe StarBurst™ system is a level 4 multilateralsystem with lateral liner tie back to the main boreproviding mechanical stability with full access tothe lateral and production access to the main bore.The system is ideal for use in existing wells inmature fields, particularly those cases with decliningproduction having additional nearby reserves thatcan be accessed while still maintaining the originalwellbore production.

The StarBurst systems could be the practical approachto your multilateral needs. Review some of the featuresand benefits:

• Allows production from both existing wellboreand offset lateral

• One Trip control line set whipstock/packersystem rated to 3500 psi from above and5000 psi from below

• System eliminates risks associated withretrieving the whipstock

To see how practical multilaterals technologies canbe, contact us at multilaterals@weatherford.comor visit us at www.weatherford.com/multilaterals

Weatherford

contents

Foreword

Technology Transfer

Demonstrating and Articulating the Value Proposition 5

SURE Enhances UB Candidate Selection Process 6

Versatile MWD Tool Merges Brain with Brawn 8

Clarion™ System Makes Seismic More "P"Than "E" 10

Real Results

In-country Expertise Critical to Field Improvements 13

Well Thought Out Intervention Saves Well 15

DrillShoe™ III Cuts Costs for Shell Brunei 16

Product Line Focus

Screens Span Various Industries 17

Bundled Strategies

Taking Service to the Next Level 18

Day in the Life

A Well-Rounded Career Comes Full Circle 21

EEP

Enterprise Excellence in Action 22

Awards and Updates

Briefly Speaking 26

Flashback

The Creation of Tubular Running Services 30

A publication ofWeatherfordInternational Ltd.

Volume 6, No. 1

Weatherford's W Magazine Is published byWeatherford International Ltd. Pleasedirect all correspondence regarding thispublication, including reprint requests, toChristine McGee, 713-693-4362.

EditorChristine McGee, Vice President, MarketingChristine, mcgee @ weatherford. com

Managing EditorMonique A. Barbee

Business Division EditorsGary Aaron — Drilling &Well ServicesChristine Welsh — Completion &

Production SystemsAngie Gunden — Marketing SpecialistGraham Makin — Director,Technical

Marketing

ContributorsChris Ball,Tad Bostick, Greg Chitty, RhondaDuey, Stuart Ferguson, Greg Galloway,Darrell Johnson, Mike Juenke, Don Lyle,Frank Mathews, Keith Morley, Bill Pike, BillRouse, Chip Swarr, JimTerry, LarryTidwelland GatutWidianoko

IllustrationsCory Patterson and Jan Stafford

PhotographyPeter Brown and GregTrest

Weatherford products and services are subject to Weatherford's standard terms and conditions. Unless noted otherwise, trade-marks and service marks noted herein are the property ofWeatherford. ® 2004. Weatherford. All rights reserved.

W Magazine I 2004 First Quarter I 3

foreword

Who Is

By Christine McGeeEditor, W Magazine

It depends whom you ask. Peoplewho have worked in this industryfor decades often associateWeatherford with its classic busi-ness lines of tubular running,

cementing, fishing and rental. Some of our larger, multina-tional clients associate us more with our emerging tech-nologies - underbalanced systems, expandable technology,drilling with casing and production optimization. Andothers simply connect us with providing one specificproduct or service.

The truth about all these perceptions is that each ofthem is correct, but too limiting in scope. Weatherford isan amalgam of all these descriptions because we offer oneof the industry's most diverse portfolios of products andservices for drilling, intervention, completion and produc-tion applications.

At the same time, there are hallmarks of theWeatherford brand thattranscend specific prod-ucts, services and capabil-ities. These are thoseintangible qualities ofpragmatism, responsive-ness and effectiveness -qualities that all add upto making our clients'reservoir recovery opera-tions more productive.

To better reflectthese diversities and simi-larities withinWeatherford'sofferings, we havechanged the formatof W Magazine so youcan get a more completepicture of Weatherford's

breadth and depth. These changes include:• Technology Transfer, a section that highlights our

latest global technology commercializations;• Real Results, which focuses on three case historiesusing some of our newer products or services;

• Bundled Strategies, which highlights specific ways weare bringing products and services together to bettermeet customer needs; and

• Enterprise Excellence in Action, whichdemonstrates our renewed commitment to aculture of excellence.

We've also added some columns that help demonstrateWeatherford's long-standing reputation for service - A Dayin the Life, which focuses on a Weatherford employee andthe value he or she adds to the company, our heritage inclassic market segments (Flashback), and the evolution ofparticular product lines [Product Line Focus).

We hope you find this new format useful. Moreimportantly, we hope some of the articles will broadenyour current perception about who Weatherford is andwhat we stand for. f

4 I W Magazine I 2O04 First Quarter

technology transfer

Demonstrating the

By Stuart Ferguson, ChiefTechnology Officer, Weatherford

We live in an industry climatethat currently focuses on quarter-to-quarter performance. For ourclients, this means consistentlydelivering on their production tar-

gets. For Weatherford, in part, this means rapid com-mercialization of new technology.

In aligning ourselves with our clients' needs, we haveconcentrated on developing production-enabling tech-nologies - those that convert reserves into revenue. Inmost cases, our new products either drive down wellcosts, which lowers the threshold to bring on reserves,or increase well productivity, which accelerates produc-tion and cash flow. In the best cases, we can achieveboth of these ends.

However, as we all know, developing the technologyis only part of the equation. To make it pay off for bothour clients' reservoirs and for our own investment, wemust widely deploy new technology in the field, whichis where we often face our greatest challenge.

There are several factors playing into this dynamic.For starters, time pressure and a risk-averse environ-ment within many exploration and production compa-nies often leads to maintaining the status quo. Peopleare under enough pressure to meet production targets,they don't want to add the variable of "unproven tech-nology" to the mix.

Secondly, the oil field service sector in general hasn'tdone a stellar job in demonstrating a new technology'svalue proposition. We have tended to emphasize fea-tures rather than benefits, and generalities rather thanspecifics.

This latter point brings us to the purpose ofTechnology Transfer, a newly created section in WMagazine that follows this column. The articles inTechnology Transfer highlight some of our most prom-ising technologies and, true to our reformed words,

includes information about the value the technology canadd to the reservoir, how it is being applied in specificapplications and the results of those applications.

The technologies featured in this edition include:• the SURE Process, which can greatly enhance the

ability to value accurately underbalanced drilling(UBD) vs. conventional drilling for a particularreservoir or group of reservoirs. For instance, SUREallows operators to quickly and inexpensively screen100 reservoirs, narrow the field to 10 likely UBDcandidates, and then quantify the likely value rangethat UBD will realize. Under traditional circum-stances, the outcome of SURE could not beachieved without drilling and analyzing a very largenumber of analog wells - an extremely expensiveroute;

• the TrendSET™ EM/MWD system, a flexible meas-urement-while-drilling [MWD) system that meetsthe challenge of both underbalanced and conven-tional applications using two means of data trans-mission: electromagnetic and mud-pulse telemetry.In field trials, the electromagnetic system transmit-ted information from almost 11,000 ft C3,355 m), fardeeper than any similar tool in this type of applica-tion; and

• Clarion Optical In-Well Seismic Sensing System,which uses seismic technology to improve produc-tion, rather than exploration, of hydrocarbons. In afield trial last year, the Clarion system demonstratedthat a distributed array of fiber optic sensors couldreadily be deployed on a production tubing stringand produce high quality reservoir images.

I hope you find this information valuable. ^

W Magazine I 2004 First Quarter I 5

technology transfer

SURE UBSelectionEvery operator wants to improve productivity and maxi-mize net present value, from his or her assets or potentialacquisitions. Underbcuanced drilling has always been anoption for meeting that goal, but previously has been seenas expensive and unquantifiable,

Weatherford's new Suitability for Underbalanced ReservoirEvaluation (SURE) process and novel evaluation software,introduced in late January, can greatly enhance the ability toaccurately value underbalanced drilling (UBD) vs. overbal-anced drilling for a particular reservoir.

The core of the SURE process is the Reservoir ScreeningTool (RST)™, a quick-look screening software, and theReservoir &f Damage Assessment (RDA)™ software.Weatherford developed this software in conjunction with top

4 Phases of SURE

1. Screen candidate reservoirs using RST™ (Reservoir Screening 1

ConventionalTechnique No Go / Go — UBS Candidate: ' .'• I ;;: : :.

IContinue Study

I2. Gather and Validate Data from operator (detailed drilling fluid

description, detailed lab work). This phase also involves confirmingdata validity and weight analogs, and building statistical distributions.

3. Apply Analysis Tools, the core of which is the Reservoir & DamageAnalysis (RDA™) Software. This phase also uses conventionaldecline curve analysis on production data to build analogs at inter-well and field scales.

IH4. Present the Results - SURE applies risk analysis using Monte Carlo

simulation to drilling, completion, formation damage and reservoirengineering parameters.

ConventionalTechnique No Go / Go — UBS Candidate

Design, Engineering & Job Execution 4

consultants in formation damage analysis (Hy-Cal), riskanalysis and sub-surface disciplines.

Greg Chitty, director of reservoir suitability analysis forWeatherford, compares the process to the justification ofimplementing fracturing technology for productivityenhancement in the early days of fracturing. "Hydraulic frac-turing makes production of tight gas economic, but it isn't acure-all. Fracturing shouldn't be used on all reservoirs or inall situations, and operators pumped a lot of money down alot of wells before the industry developed the process thatallowed those operators to quantify the economic and tech-nical results they were achieving with fracturing technology,"he said.

The SURE process applies a similar reasoning to the justi-fication of implementing UBD in a given reservoir. Under-

balanced drilling is not an economic solution forevery reservoir. The SURE process allows opera-tors to quantify the results they can expect fromUBD so that accurate performance comparisonscan be made between underbalanced (UB) andoverbalanced technology. And it will do the jobquickly at a fraction of the cost in a fraction of thetime of expensive engineering studies.

EVOLUTION UNCERTAINTY

COST

INCREASING QUALITY& ANALYSIS OF DATA

DECREASES THEUNCERTAINTY OF

RESULTS

The four phases of SURE begin with identifying a reservoir candidateand end with presenting the results of data gathering and analysis.

How the Screening WorksIn a typical situation, the operator will ask theWeatherford Reservoir Suitability Analysis Team(RSAT) to analyze and evaluate its assets for UBdrilling. The first step the team will take is toscreen the asset[s) using the RST. This portion ofthe analysis is quick, inexpensive and requires only15 descriptive reservoir parameters as input. Thescreening tool will then calculate geologic,damageability and treatability indices to yield ascore from -100 (worst) to 100 (best), with 0 beingbreakeven. If the reservoir scores more than 70, itis suggested to implement UB drilling. If the reser-voir is between -20 and 69, an RDA study is rec-

ommended. If the candidate scores below -20,it is likely not a viable candidate.

6 I W Magazine I 2O04 First Quarter

technology transfer

In the second step, the RDA software can provide a

more detailed analysis that will ultimately yield pro-

ductivity and net present value (NPV) comparisons of

overbalanced drilled and completed wells vs. UB drilled

and completed wells.

In the final step, the RDA software employs a Monte

Carlo simulator to risk input properties of drilling, comple-

tion, formation damage and reservoir characteristics to

obtain a statistical distribution of skin damage and a forecast

of costs, production and NPV of drilling and completion

alternatives.

"It gives operators a novel vehicle to enhance confidence

in making the UB decision," Chitty said.

ШЯШНИИНВИНЕВШНВНВН8ШAdvantages of SUREUsed properly, the SURE process helps the operator:

• find the most likely UB candidates;

• understand the factors that will differentiate UB from

overbalanced;

• manage uncertainty and risk; and

• improve predictability of UB results.

Example: If an operator gives the team 100 reservoirs to

analyze, the RST analysis might eliminate 75 reservoirs as

poor candidates. Further scrutiny could narrow the field to

five clear winners that would be excellent candidates and are

ready to drill Then there may be as many as 15 mediocre

scoring candidates that would require an RDA in-depth study

to prove candidacy. The SURE process now has allowed the

operator to quickly and inexpensively look at 100 reservoirs

and in effect has lowered the UBD "opportunity finding cost"

ResultsThe SURE process will not guarantee a successful horizon-

tal UB well, but it will help manage the risk involved. For

instance, in a given field, an operator might have drilled 100

wells with overbalanced drilling and had a consistent $4 mil-

lion NPV on those wells.

But what happens when the field is depleting and the

operator's NPV of the overbalanced drilling program is

shrinking? The RST software might tell that operator the

reservoir is a good candidate for UB. Upon further analysis,

the RDA may predict a 70% chance of UB yielding an NPV

of greater than $4 million and a 10% chance of yielding an

NPV of $6 million. In this case, UB will give the operator a

chance to greatly improve financial performance beyond the

limits of what overbalanced drilling could achieve.

In summary, the operator can continue to drill wells the

traditional way and idly watch the NPV dwindle, or he or

she can assess the risk/reward scenario of UB to try and

obtain higher returns.

A more obvious UB prospect might be depleted reser-

voirs or where drilling related damage is suspected. For

example, operators may be pleased with a skin of -2 as esti-

mated by transient analysis of a horizontal well and think

the well is a peak performer. However, traditional transient

analysis will not account for permeability heterogeneity in

the reservoir, which can lead to misinterpretation.

The SURE process gives operators a different perspective

for interpretation. A proper post-well analysis of damage

performed by RDA software will show that for the horizon-

tal well, the actual skin may be closer to 4. Both RDA and

transient skin values will give the operator the same produc-

tion, but the RDA-calculated skin challenges the transient

analysis perception that there was minimal drilling and com-

pletion skin. This should show the operator that there is

clearly an opportunity to improve performance in a well that

was thought to have an excellent completion. ^,_

HISTORICALOBD

PREDICTEDUBD

4 m 5 m

NPV

6 m

Net present value histograms.

W Magazine I 2004 First Quarter I 7

technology transfer

Versatile MWD MergesBrain with BrawnWeatherford has developed a reliable, durable, modularmeastirement-whilerdnlling system 'that can meet the chal-lenge of harsh drilling conditions in underbalanced environ-ments or the more basic requirements of overbalancedapplications.

In the electromagnetic measurement-while-drilling(EM/MWD) world, non-productive time usually stems fromusing systems that aren't reliable.

With this in mind, Weatherford set out to develop anEM/MWD system that provides a magnitude improvementin reliability. The result is TrendSET™, an EM/MWD systemthe company currently is field-testing and will have commer-cially available in the first quarter of 2004.

The TrendSET system signifies a move from conven-tional systems retrofitted to work in extreme environmentsto a tool designed from the ground up specifically for thatpurpose.

"We feel strongly that our ability to grow as a directionaldrilling company is going to require a proprietary MWDsystem that is differentiated in one way or another fromthe competition," said Chip Swarr, product line managerfor Drilling Systems. 'This is a new-generation MWD sys-tem, and it's probably the only one out there. There aredozens of existing systems, but nobody else has startedwith a clean sheet of paper and created a new one.

"We've run the other guys' systems, and in some cases, it'scost us work by making the project cost-prohibitive."

UB Applications: The End GameProviding a reliable system that could work withWeatherford's other underbalanced CUB] offerings was akey business driver in initially developing the technology.For starters, the underbalanced drilling environment isharsh, characterized by the extreme shock and vibration ofthe technique. As a result, TrendSET's electronics werespecifically designed to withstand these conditions.

Another requirement was developing a system thatcould transmit signals through compressible fluids sinceconventional mudpulse systems used for MWD have been

(Left) Robert Villarreal (Houston) and Hugh Hawthorne(Casper, Wyo.) successfully ran the Tom Brown job inWest Texas.

limited in their ability to perform this function. TrendSETsolves this problem because it has two means of data trans-mission: E-WAVE™ electromagnetic data transmission andDuraPulse™ mud-pulse telemetry. E-WAVE serves as thewireless guidance for the UB system, transmitting direc-tional information and formation evaluation data fromdownhole.

Mix and Match FlexibilityThe beauty of TrendSET, however, is that it's not just for UBapplications. The system contains the full complement of

8 I W Magazine I 2004 First Quarter

technology transfer

MWD sensors, including directional, pressure, gamma and

resistivity, and allows its components to be combined for the

precise application needed.

For instance, it's ideal in conventional applications, pro-

viding higher reliability and faster data rates than conven-

tional MWD tools. With no moving parts, the sub is more

reliable than a mudpulser, so more time is spent on the

bottom drilling instead of tripping for pulser failures. The

telemetry also allows for higher data rates than a pulser-

based MWD system, so less time is spent waiting on sur-

veys, tool faces or data.

Additionally, the surface detection software can recognize

and filter signals a magnitude smaller than competitive sys-

tems, allowing for greater depth capability. The tool will

work in areas above highly resistive formations, anhydrates

or salt zones.

Real Results — North AmericaSo far, several of the tool's components have been tested

extensively in shallow gas wells in southern Alberta, Canada,

and more recently it's been applied in deeper directional

wells in the mid-continent. The result has been more than

500 hours of testing with no significant tool failures.

A more integrated version was tested recently by Tom

Brown Inc in the ACU field in Terrell County, Texas.

Missing only the custom-designed probe and the surface sys-

tem software, the test was primarily designed to evaluate the

depth limitations of the E-WAVE transmission system.

The system features high data transfer rates and can

measure annulus and bore pressures at the bottomhole

assembly to verify UB conditions. It's temperature-rated to

304T (150°C) and more for use in harsh environments. Its

greater signal resolution allows for greater depth capability.

In addition to UB conditions, the tool is well suited for

harsh drilling environments requiring fast reliable data

transfer and for difficult lithologies.

"We were looking at the transmission characterization,

and we've achieved our goals in that area," Swarr said. "In

fact, in my opinion, we've over-achieved them."

Swarr said that in addition to testing depth limitations,

the transmission system also was challenged by being in a

vertical hole where there's not always wall contact and trans-

mitting through oil-based mud.

"We were successful with all three of these goals," he said.

Brian Franks, a drilling and completions engineer for

Tom Brown, added that the test was more beneficial to his

company than originally anticipated.

'It enabled us to survey more quickly and get help to

determine our well location faster than a single-shot survey

method would have," Franks said. 'The time savings was the

best benefit"

Additionally, using TrendSET compared favorably to a

traditional MWD survey.

"That's a lot more expensive, and it requires actual circula-

tion," he said. "We were able to survey more quickly than

with MWD, and the results were comparable."

In fact, the companies had the opportunity to compare

the accuracy of TrendSET data with single-shot data and

found it to be comparable.

Most impressively, Franks estimated the tool was trans-

mitting information at about 10,800 ft (3,294 m).

Field Trial Results«Too! components have undergone more

tasting with no failures

«Depth limitation tostina of trie h-WA\/f-

system yisided that the BIOI was transmitting Information

at about 10,800 ft (3,294 m), far deeper than зпу other

electromagnetic tool in that type of application

* IrendSET data compared favorably and accurately totradirional meoSUibmeni-whHe-diiHiiiq a;

System Integration is Next StepThe entire integrated system was field-tested in mid-

December. Weatherford also will begin packaging its

UB/directional offerings in Ql 2004. The TrendSET

system complements Weatherford's other application-specific

services for directional drilling, including Redhead™ drilling

motors for UB applications and InZone™ coiled tubing direc-

tional drilling services, offering complete well design and

engineering, advanced bottomhole assembly packages and

expert support for coiled tubing applications. ^

W Magazine I 2004 First Quarter I 9

technology transfer

Clarion™ System Makes SeismicMore "P" Than "E"Seismic techniques traditionally Imve been used to explore,rather than efficiently produce, hydrocarbons. The followingarticle explains how Clarion, an optical, permanent in-wedseismic sensing system, is changing that standard.

The Evolution of Seismic TechnologySince the late 1970s, the industry has recognized the poten-tial of in-well seismic methods to improve exploration suc-cess, reduce drilling costs, control uncertainties and improveproductivity. Specifically, borehole seismic technology hadbeen earmarked as a natural link to further integrate surfaceseismic, core data and well logs. The geophysical informa-tion extracted from periodic borehole seismic surveys

Clarion delivers a high-quality seismic data stream through optical seismic sensing sta-tions, which are connected together and at the surface through rugged optical cable.

acquired with wireline deployed equipment, however, wasnot limited. Furthermore, sensor technology was not reliableenough and acquisition too costly for long-term imagingand monitoring applications.

"The market was ready for a simple, cost-effective and reli-able dynamic production optimization and reservoir man-agement capability," said Tad Bostick, vice president of busi-ness development for Weatherford's Intelligent Completionbusiness unit "Our answer was Clarion, an optical seismicsensing system that is installed during the completion phaseand remains in place in the wellbore throughout the life ofthe well. Its purpose is to deliver reliable, high resolution on-demand reservoir imaging that contributes to increases in

recovery and acceleration ofproduction."

Bostick also noted that tomeet the market need,Weatherford found a way tofast-track its "answer":Clarion's proof-of-conceptthrough product launch atthe 2003 Society ofExploration Geophysicistsconvention was less thanfour year's old.

"The whole progressionwas, first, to demonstratethat we could actually makeuseful multicomponent seis-mic measurements with anoptical system," Bostick said."That was achieved at theend of 1999 and into 2000.After that, we worked onsmaller, deployable, fit-for-purpose sensors, along witha state-of-the-art opticalmulti-channel architecture.This allowed us to imple-ment reliable seismic arrays

10 I W Magazine I 20O4 First Quarter

technology transfer

for long-term deployment within the tight constraintsfound in wellbores.

'The next step has been to integrate the seismic array intothe wide variety of completion designs and to install the sys-tems into production -wells. What remains is to validate themeasurement capabilities in the various reservoir environ-ments found throughout the world, implement the manage-ment and processing of data acquired from repeated imag-ing surveys and continuous monitoring, and combine theseismic data with other permanently monitored data toimprove the production and recovery processes."

Clarion's Benefits: Clear + NowThe Clarion system enables production optimization by mak-ing high-resolution [Clear) on-demand [Now) reservoir imag-ing possible. This facilitates the optimal placement of devel-opment and infill wells, reduces drilling and completioncosts, improves remedial action planning and implementa-tion to manage water and gas ingress, and advances theunderstanding of reservoir sweep and voidage replacement

Clarion also shifts the exploration and production (E^P)seismic game to more "P" than "E" by providing better linkagebetween the micro and macro investigative scale and betterintegration of an operator's multi-disciplinary competencies.

For instance, in the case of micro and macro investigativescale, production and reservoir management disciplineswork on different scales ranging from the microscopic scaleof the petrophysicist to the macroscopic scale of the geo-physicist Likewise, investigative data acquisition techniquesoperate at different scales. Coring investigates to a micro-scopic level A surface seismic survey investigates at a scale ofhundreds of meters to many kilometers. Only by merginginvestigative data and analysis at different scales from differ-ent disciplines can a comprehensive image of the producingreservoir asset be acquired. Weatherford's Clarion systemenables this link.

In the case of integrating an operator's multi-disciplinarycompetencies, an ongoing hurdle for any production time-lapse application is the gap between the geophysical com-munity and the engineering community.

"The geophysical community is concerned with sensors,

An in-well seismic station includes small, rugged opticalsensors contained in a robust, low profile protectivecarrier. The carrier is mounted to the tubing or casingstring using a mandrel or clamp-on system.

data acquisition, images and attributes. The completionengineers are concerned about how we're going to getthings in the wells, while being sure they're safe and effi-cient and don't add any significant risk to the well. Thenthere are the reservoir and production engineers, the oneswho will ultimately benefit from the seismic informationbeing folded back into their domain," Bostick said.

Weatherford's offering of an integrated service bringsthese different disciplines together.

"If you're talking about seismic production optimization,you have to get all the parties involved. Geophysicists can'tdo it independently. None of them can."

Two other benefits include permanent installation anddecreased uncertainty. Clarion is permanently installed,which removes the risk to well integrity and the lost pro-duction and cost associated with intervention-based bore-hole seismic techniques.

Clarion's sensors decrease uncertainty by providingconsistent, unchanging reference points in terms of depthand performance. They don't move or degrade during time.In 4-D applications, they eliminate repeatability uncertain-ties that can frequently result from repeat deployment oftemporary in-well sensors. From one survey to the next, thesensors eliminate data incompatibility and errors caused byusing different sensor types with different performancesourced from different contractors.

W Magazine I 2004 First Quarter I 11

technology transfer

Field Trial ResultsWeatherford conducted a series of field trials as part ofClarion's development plan to incrementally prove the var-ious aspects of the system. The first trial focused ondeploying a single multicomponent sensor downhole,with the primary goals of coupling the sensors to the for-mation, examining signal-to-noise ratios and gauging theperformance of the optical sensors relative to referencevertical seismic profiling (VSP} tool measurements.Results of the study indicated multicomponent seismicdata could successfully be acquired with tubing-deployedoptical sensors.

Another study in the Izaute gas storage field in south-western France involved the permanent installation of a

Clarion's Five Primary ApplicationsClarion provides clear information in a variety of appl ica-

tions. The optical seismic sensors achieve high sensitivity,

high bandwidth and enormous dynamic range without the

need for complex downhole signal conditioning,, amplifica-

tion and filtering typically required in electronic sensor

arrays. Permanently installed in the well close to the area

of investigative interest, Clarion seismic sensing enables

five primary applications on demand:

• VSP Reservoir Imaging—Permanently installed, stable,

in-well sensors improve 413 repeatability and yield high-

resolution on-demand vertical seismic profiling (VSP)

without the need for well intervention;• Permanently installed

sensors provide a consistent re ference point to calibrate

4-D surface seismic;

» Continuous passive acoustic

monitoring data assists reservoir understanding of fluid

movement, drainage efficiency, active fractures and for-

mation compaction;

» Crosswell —Data is used to analyze geological

and fluid properties, and reservoir connectivity between

wells at a much finer scale than surface seismic; and

• Seismic-While-Drilling -In-weli sensing of drill bit-gen-

erated seismic signals heralds a new tool to assist in

optimal well placement

multi-station, multicomponent array and the subsequentacquisition of a second survey for time-lapse studies(see W Magazine May 2003). Two types of permanentseismic surveys are being conducted in the field, VSP andextended microseismic monitoring. Previously completedfeasibility studies using conventional wireline tools havedemonstrated the ability to map the gas-water contactusing VSP and potentially correlate microseismic events togas injection and production activity.

The array was installed on the outside of 4-in, produc-tion tubing inside 95/s-in. casing. This design allows foreasy access through the tubing to the reservoir for loggingtools. Fiber-optic quarter-in, cabling links the seismic arrayto the surface and ties the sensor stations together.

The sensor output was interfaced in analog form to aconventional seismic recording system. Comparisons weremade to field data previously acquired with wireline VSP,and a good correlation was found.

While the initial acquisition went smoothly and thedata showed good repeatability, results of the time-lapsestudy conducted later were pending at press time. But theinstallation demonstrated that a distributed array of fiber-optic sensors could be readily deployed on productiontubing in a cased hole with minimal impact to the well.The next stage is to move into a more sophisticated multi-station installation offshore.

Clarion Goes CommercialMoving forward, Clarion is in full commercialization phase.

"We've reached a high level of confidence with theIzaute installation. Our focus now is working on gettingthe product and the manufacturing facilities ready to goalong with training the field operations and marketingstaff."

Bostick said Weatherford also is cross-training peopleacross the intelligent completions business unit on inte-grating Clarion with other permanent optical sensing prod-ucts such as temperature, pressure, flow and phase frac-tion, as well as with in-well flow controls.

To find out more about Clarion and request furtherinformation, visit wwn>.simplyintelligentinfo. f

12 I W Magazine I 2OO4 First Quarter

real results

In-coiCritici r»i i is

fryto

In-country agents and training ргехл ш- HI Imloaesia i :

to successful giK lift optimization program,

One of Weatherford's key strategies since the late 1990s

has been to better leverage its global footprint through

superior in-country expertise. The following real result

details how the company's executing this strategy in

Southeast Asia.

SituationWeatherford has been working for years in Indonesia

through an alliance with its agent P.T. Catur Khita Persada

to establish in-country core expertise. In one project under

that arrangement, Indonesian Gatut Widianoko of

Weatherford began working with BP Indonesia on three

large fields - Bima, Ardjuna and Arimbi - off Java's

north coast to optimize gas lift operation and improve pro-

duction, which he was able to accomplish on a handful of

test wells. As a result, Weatherford was awarded an opti-

mization contract to analyze and rework gas lift systems on

190 wells in the fields.

SolutionThe optimization process was broken into five key objectives:

• field review of surface piping and restrictions to

reduce any surface bottlenecks;

• field training of BP operations personnel in proper

operation, testing and troubleshooting techniques for

gas lift wells;

• training of gas lift shop personnel to address proper

valve calibration, preparation and repair;

• technical review of all well data including well tests,

well history and current gas lift settings; and

• improve field installation procedures.

A team of Indonesian engineers and technicians led by

Gatut began implementing these objectives throughout the

Java field. One complicating factor in the Java gas lift instal-

lations, however, was the high concentration of dual-gas lift

wells, which are notorious for problematic operation and

difficult to optimize.

To solve the problem, Gatut initiated a simplified tech-

nique called "casing-head tuning," a straightforward process

that involved the following steps:

1. The team members drew graphs of the well

conditions, including the static and flowing pressure

gradients.

2. From available information, they then performed an

engineering analysis to determine the optimal kick off

and operating pressure. Typically, the operating pres-

sure would be chosen at 90% of kick-off pressure.

A diagram cutaway shows the downhole Weatherfordvalve that allows technicians to tailor casing-headpressure for optimum performance.

W Magazine I 2004 First Quarter I 13

real results

3. Once the valve string was correct, the technician

would inject gas at various rates, monitor the corre-

sponding casing-head pressure, determine the opti-

mum gas lifted production and log the corresponding

casing-head pressure.

4. The field personnel would then monitor and main-

tain this casing-head pressure to maintain optimal

well production.

ResultsThe casing-head tuning simplified the field operations and

provided adequate criteria to maintain and hold improved

performance from gas lifted wells.

One well, for example, was producing 216 b/d of oil and

864 b/d of fluids with a casing-head pressure of 200 psi

before adjustments began. After raising pressure to 300 psi,

the well produced 225 b/d of oil in 898 b/d of fluids.

Increasing the pressure to 400 psi increased production to

231 b/d of oil with 924 b/d of fluids.

A pressure setting of 440 psi gave the team 288 b/d of

oil in 1,152 b/d of fluids. Another boost in pressure to 480

psi yielded 252 b/d of oil and 1,008 b/d of fluids. They set

the pressure to the 440-psi optimum and gained 72 b/d of

production.

In another case, a dual-string gas-lift well had been dead

since 1996. With representatives of the operator, the service

team first identified the problem, then redesigned the gas

lift for optimal production from both strings using the lat-

est well data available.

After completing the gas lift valve change-out the team

restored production to both tubing strings.

The processes developed for installation design, well

analysis and operation procedures are implemented and

continue to be refined.

At the same time, the team has trained many of the

operator's field technicians so they could continue the

design work, handle the valve installation and conduct the

tuning operation.

Using that on-the-job-training approach, the fields had

increased production by 3,500 b/d at the end of the first

year. That figure rose to 4,000 b/d by the end of the second

year and has reached 4,500 b/d.

Of those gains, 40% came from the gas lift valve change

out and 60% resulted from casing-head pressure tuning. Ж

Gas lift tuning

Status

Pre-well test

Testl

Test 2

Test3

Test 4

Post-well test

Gain

at FFB-7 well

bo/d

216

225

231 /"ffffJV

288252288

72

bf/d

864

898

924

1,152

1,008

1,152

CHP (psi)

200

ввжг 30°400

440

;.;.,.;., 460 . . ,;,:,;/,•','

440

Remarks

Before tuning

Optimum rate

Best CHP

Weatherford technicians in Indonesia used casing-head pressure tuning to increase production in BP'

by 72 b/d.

14 I W Magazine I 2O04 First Quarter

real results

Well Thought Out Intervention

An operator faced plug and abandonment before using theWeOServ*"1 four-step solution,

Cost-effective well interventions share four elements: 1]proper diagnosis of the problem; 2) practical solutions; 3}successful implementation; and 4) follow-up verification.The case history below demonstrates how Weatherford'sWellServ Intervention Services use this process to help oper-ators save their wells in situations that previously seemedunsalvagable.

SituationA South Texas operator re-entered a gas well that had pro-duced more than 5 Bcf of gas since 1985. The operator hadcontracted another service company to recover 27/8-in.,11.65-lb, 22% chrome tubing inside 5l/2-in., 23-lb casingfrom the sour well to allow a deeper completion, but wasunsuccessful. The string was stuck at 5,500 ft [1,677.5 m)when Larry Tidwell, Texas Gulf Coast sales representativefor Weatherford's WellServ operation, received an emer-gency call. The WellServ team had to use two solutions tosolve the problem, which made the difference between sav-ing the well vs. abandoning it

Solution #1Diagnostic-After consulting with the operator and reviewingprevious attempts to back off the pipe, the WellServ teamrecognized it couldn't precisely locate connections in thestring because the chrome metallurgy blocked magneticreadings.

Engineered Solution-The WellServ team suggested run-ning a 40-ft (12.2-m) string shot to assure it crossed a con-nection instead of using a collar locator and a conventional6-ft [1.8-m) primarcord shot

Implementation-With the string shot in the hole, theteam applied left-hand torque to the tubing and fired theshot The connection broke, allowing the first joint of pipe tobe recovered.

Verification—The string shot system worked well enoughto do the job down to 13,000 ft [3,965 m), but then torque

The WellServ team was able tocut the pipe in an hour and ahalf from rig-up.

transfer would notreach the connection.A second solution wasrequired to continuerecovering pipe.

Solution #2Diagnostic-Recovering additionalpipe meant cuttingthe tubing. This rela-tively simple task,however, was compli-cated by two factors:1) cutting choices nar-row drastically withtough chrome tubingwith a .422-in. wall thickness and an inside diameter of only1.99-in.; and 2) all cutters won't work with a bottomholetemperature of 330T [1G5.39°C) and pressure of 6,500 psi.

Engineered Solution-Became a chemical cutter couldn'tcut through that degree of thickness and a jet cutter wouldhave flared the pipe (and both would have preventedfishing operations), WellServ called on its partnershiparrangement with MCR Oil Tools to use the ExtendedReach (Slim) Radial Cutting Torch. The chosen model forthis job was the 11/2-in.-diameter tool. Additionally, becausethe cutting torch was non-explosive, the WellServ teamcould hotshot it from Lafayette, La., to the South Texaslocation without the red tape associated with the trans-portation of explosive materials.

Implementation-The team ran the cutter into the holeto a depth of 13,588 ft [4,144.34 m), set it and applied directcurrent to generate the L200T (648.24°C) needed to ignitethe special compound, which reached a temperature of6,OOOT [3,312.24'C) and melted through the chrome tubing.

Veiification-At the end of the two-week job, the teammade the cut in an hour and a half from rig-up. Since thismethod of cutting does not alter the diameter of the tubular,the operator was able to continue his fishing operation. ^

W Magazine I 2004 First Quarter I 15

real results

DrillShoe™ III Cuts Costsfor Shell BruneiEfficiency offers longer life for country's oldest field.

The oil field has an aging issue, including a growing numberof old fields that need to be maintained. Weatherford'sDrilling with Casing technology improves drilling efficiencyby eliminating time spent running casing.

SituationRoyal Dutch/Shell opened operations in the sultanate ofBrunei Darussalam in 1913 after finding oil in Miri field inadjacent Sarawak, Malaysia. It was the only company thatremained in the country through a host of non-commercialdiscoveries until it persevered with the nation's first commer-cial discovery at Seria field on Brunei's western coast in 1929.

Seria was Brunei's only producing field until 1960, andShell Brunei Petroleum has studied, tested and inventedways to maximize reserves and production throughout thefield's long life. It produced the field's billionth barrel of oilin 1991, and it continues to produce 26,000 b/d from Seria.

Shell Brunei has optimized production by constantlylooking for ways to get maximum production at the lowestcost. While pursuing that mission, the company evaluatedWeatherford's Drilling with Casing (DwC™} system withthe company's exclusive DrillShoe III on its S-816 well inSeria field.

SolutionUsing the system, an operator can drill with casing to a tar-get depth and cement the casing in place through the cas-ing bit At that point, the operator can drill throughDrillShoe III with a smaller casing size or a standard drill-string. The cutters on the bit unfold from the DrillShoeface like fingers opening from a fist to rest out of the wayin the well's annulus.

KCA-Deutag's T-41 rig with a top drive took the job ofdrilling the 12-in. hole from 194 ft [59 m] to 2,366 ft (721m)using the DwC system with a drillable casing bit andWeatherford's L42W1 large bore float collar at the bottom ofthe hole.

The casing string was 95/8-in., 47-lb/ft, New Vam L80 with

Weather-ford's DrillShoe II and DrillShoe ill casing-while-drilling bits save operators time and money.

Weatherford's 95/8-in. inside diameter, 121/4-in. outsidediameter DrillShoe III on the business end.

The drilling team used a potassium chloride/polymermud weighted to 9 ppg in the hole.

In the record-setting well, the bit was on the bottom for44 hours for a penetration rate of 49.2 ft/hour (15 m/hour)through the clay and sandstone section.

ResultsAt the completion of the test, the drilling team hadcompleted the world's longest run of any DrillShoe modelat 2,172 ft (662 in), and it accomplished the deepestDrillShoe setting depth at 2,366 ft (721 m).

As important as the physical records, the trial run in fieldconditions - matched against optimized, previously drilledwells - showed drilling with casing with a drillable bit wascost effective and belonged in the Shell Brunei engineeringtoolbox for appropriate wells. Meanwhile, the operator haseliminated one of the more hazardous operations in drilling,the rig floor operation of making up the drillstring.

On this first test run, at the highest cost point on thelearning curve, the S-816 well did not show a cost savings,but the results were good enough to show Shell engineersthat the technique and the technology worked as promised,and negotiations are underway for additional DwC wells. ^

16 I W Magazine I 2004 First Quarter

product line focus

By Bill Rouse, Vice President, Weatherford Well Screens

It is hard to find anodier Weathafiini inniua > hen

crosses as many biKimsscs ami I •; •• =к K-huheila •..-.•• !

Johnson Screens,

Weatherford screens are critical in thousands of applica-

tions, from the water we drink to the energy we consume.

They are important components used to produce the

paper we write on, the food we eat and the clothes we

wear. In the realm of vital screen technology, Weatherford

has a leadership position in practically every screen market

in which they participate.

This market dominance did not happen by chance. A

series of strategic moves culminated Nov. 30th, 2001, with

the addition of Johnson Screens to the Weatherford family.

Celebrating its 100th anniversary this year, Johnson Screens

has a rich, innovative heritage in the marketplace. Founded

in 1904 in St Paul Minn., the company has long been the

brand leader in screen design and manufacturing. It has

principal manufacturing operations in Houston; New

Brighton, Minn.; Chatellerault, France; Dublin, Ireland; and

Brisbane, Australia. The company services the oil and gas,

waterwell, mining, petrochemical, pulp and paper, water

process, and food and beverage industries, providing welded

profile wire screen in a wide variety of configurations.

Because of the synergies between the existing

Weatherford screen business and Johnson Screens, the

integration has gone well, especially on the oil and gas side.

From the beginning, management felt the products offered

a good fit In many cases, Johnson had a strong position

where Weatherford did not In those areas where both

companies had strong market presence, the combination

helped improve the company's earnings position through

consolidation.

The benefits of the integration have been impressive.

No other screen provider - and this applies to any industry

Weatherford screens serve - brings the same level of

engineering and design focus, expertise or global manufac-

turing footprint And, through the company's combined

size and economies of scale, Weatherford can offer greater

value to its customer base.

A high percentage of the screens business unit work-

force has been with the company for more than 10 years.

And company wide, the group has one of the highest

percentages of senior, tenured employees - those having

25 years or more on the job. This experience level brings

with it certain competitive advantages as well as a solid

position for future growth.

On the oil and gas side, Weatherford is uniquely

positioned to be the leader in offering their customer

base mechanical sand control solutions. Within its other

operating industries, the company has done some unusual

things and expanded into some different markets. Of

particular note, they are now working on a significant

architectural screens project for the rebuilding of WTC7 at

the World Trade Center site.

Other growth areas remain. Opportunities exist for oil

and gas refinery workovers, not only for specialty screens

used in catalyst conversion, but also for solid expandables

and recladding operations within refineries. In non-tradi-

tional oil and gas applications, such as coalbed natural gas

production, screens are an important element in pump

protection. And in mature oil and gas producing provinces,

increasing water incursion is driving reservoir instability

and escalating sand production, increasing the need for

screen products to control sand downhole.

Given the breadth and depth of experience across

industries, Weatherford is now poised to increase market

penetration and technical innovation. It is reassuring to

have a 100-year heritage of engineering and manufacturing

excellence to rely on as the company moves forward. ^

W Magazine I 20O4 First Quarter I 17

Taking Service to

the Next

' JM

iSi'S

•г

itiisSWfT ''-*"*

j

18 I W Magazine I 2O04 First Quarter

bundled strategies

As important as new technology is in gaining efficiency andcost advantage, it is also necessary to find the best way todeliver that technology to the client More and more, obvi-ous value exists in assembling a broader package of serviceswhen projects are viewed as an integrated solution ratherthan a series of unrelated operations.

However, it is also critical to understand that no companyhas every tool and all the expertise for every phase of a givenproject's life. That reality was often overlooked in the "inte-grated services" era when some companies tried to be every-thing for every client

Weatherford's more practical solution is to bundle itsservices where the strategy makes sense for the customerin a particular application. Bundling - grouping productsand services, possibly across division lines - reduces thenumber of interfaces between Weatherford and its clients.For example, providing two or more services on a locationmay call for a coordinator.

Ron Gordon, Director, Project Management, heads across-divisional group in the new organization charged withincreasing the ability to bundle services and systems withinand across Weatherford's new divisions.

"Weatherford wants to take a lead role in projects,instead of just being called when a packer is needed," saidGordon. "It allows us to use new technology in a moreeffective manner."

The goal is to create a semi-autonomous unit that pro-vides best-in-class project management for "hydrocarbonvalue-based" risk/reward contracts. Strong project manage-ment competencies include geological/geophysical, drillingand reservoir engineering.

"That will give us access to new opportunities, includinglarger and longer term projects," said Gordon. "And it's agood way to leverage our technology to add value for ourcustomers."

One angle that highlights the bundled services and sys-tems strategy aimed at lowering drilling and field operatingcosts and improving recovery is the Total Tubular ServicesCITS) program, which manages every aspect of the tubularprogram, from arrival of the pipe in the country to installa-tion in the well to the return of unneeded pipe to stock.

Pickup &Laydown

BOP Rental

CasingRunning

HydraulicWorkover

TorqueReductionTools with

Eng. Support

HammerServices

CompletionServices

InspectionServices

DrillingEquipment& Services

ChainManagement

Services

The bundling of tubular services also provides pull-through opportunities for other Weatherford productsand services, including the ones shown above.

Total Tubular Services ProgramFew elements of well construction and field exploitationinvolve a larger variety of equipment and services - and tra-ditionally, companies - than the acquisition and installa-tion of pipe and related completion equipment

More efficiently managing a tubular program from welldesign through installation and production can cut drillingand field development costs and operating expenses.Consequently, bringing order and efficiency to the processis not a new idea.

But Weatherford, with the help of its alliance partners,freshened up the idea, added some new services and creat-ed the TTS program.

"It is a solution rather than a 'callout' service," said FrankMathews, Vice President, Rental &f Tubular RunningServices. "Weatherford can take on the responsibility fortubulars from the mill to the wellbore, creating value forthe client It is a true project management effort, requiringcoordination of transportation and handling, inspectionand preparation, engineering support and documentation."

The solution begins with arrival of pipe in the country,includes installation in the well, and even extends to man-aging the return of unused pipe and equipment The serv-ice is especially appealing in an area where the client doesnot have sufficient infrastructure.

But even where infrastructure is adequate, operatorstaffs are stretched thin. And with broad responsibilities,they don't have the time to become experts on managingthe details of a tubular program.

W Magazine I 2004 First Quarter I 19

bundled strategies

"Weatherford can get subject experts together to capitalizeon synergies," said Mathews. "We can take advantage of ourlong experience in running pipe and downhole accessories,team this with our service capabilities, and ultimately elimi-nate redundancy from the supply chain process."

Important elements in the success of the Total TubularService are Weatherford's 440 locations in more than 100countries, and adherence by Weatherford and its alliancepartners to international quality standards, including thoseof ISO9001/ISO9002 and API.

The BenefitsFor the customer, TTS offers a more efficient administra-tion process that can bring a direct reduction in well costThere is one contract to negotiate and administer; a singlepoint responsibility, and a single billing structure stream-lines operations and facilitates measurement and control.And TTS makes it much easier to coordinate all work activi-ties, making it possible to reduce the number of supervi-sors, both local and expatriate, for each onshore operation.It all improves supply chain management, with benefitsboth to Weatherford and to the customer.

The TTS strategy also eliminates the need to preparetubulars offshore and greatly reduces the risk to the off-shore environment that might result, for example, from

WellDesign

ManufacturingThreading

OCTG Supplier

DrillingPlan

Transportation

AccessoriesManagement

• Float Equipment• Liner Hanger• Centralizer• Friction

Reduction Tools

Unloading

OIL COMPANY• Exploration• Discoveries• Evaluations• Development

ProgramWell

Installation

Remnant Pipes

Re-treadingInspection

On LandTransport

Local StockPipe Mgmt.

Sub-assemblies

Makeup

To Rig/ SupplyBoat :

Transportation

TTS offers a more efficient administration process thatcan bring a direct reduction in well cost.

lubricant disposal. It provides pipe tally details that supportOCTG "traceability." Quality assurance inspection of alltubulars is completed and verified upon delivery to cus-tomers and damage reports and delivery tallies initiated.Pre-assembly and makeup of float equipment and comple-tion assemblies onshore reduces the need for more costlyoffshore time.

In addition to greater efficiency for Weatherford andtheir client, the bundling of tubular services provides "pull-through" opportunities for other Weatherford products andservices, including casing running, hammer drilling, completion and inspection services, fishing equipment and services,drilling equipment, supply management services and more.

TTS in actionWeatherford's Phillips China Inc's Phase 1 Penglai 19-3operation, used onshore preparation services and reducedtheir costs by 20% when compared with the costs of usingseperate tubular services operations. Services includedtrucking the pipe from Xingang Port to the onshore facilityand offloading. Then when ready to go offshore, tubularswere transported to the dock. Work in the local stock pointincluded visual full body inspection, removal of thread pro-tectors, and end-area cleaning and drifting.

After a visual inspection, threads were re-doped for run-ning and cleaned thread protectors installed. Strapped,marked and tallied for inventory control, the pipe wasready to go offshore, where seven wells were batch drilledwith 13 3/8-in. and 9s/8-in. casing and five wells were batchdrilled for 133/8-in. There was no downtime, and no losttime accidents on the project

In the TTS package for Phillips China, Weatherford sup-plied:

• handling and running equipment for 133/8-in. non-pre-mium connections, and for 9s/8-in. and 7-in. chromepremium and non-premium connections;

• a StabMaster system;• handling and running equipment for 41/2-in. and

31/2-in. non-premium-connection tubing;• casing accessories, fishing tools and liner hangers; and• an Expandable Sand Screen (ESS™). ^

20 I W Magazine I 2OO4 First Quarter

day in the life

A Weil-RoundedFull CircleWhen Chris Ball began marking as a roustabout on aNorth Sea oilfield in 1979, he had no idea that the experi-ences he was gaining and the connections he was makingwould be valuable far a job 24 years down 'the- road,

"I learned a great deal while working as a roustaboutbecause at that time, it was quite typical to quit one rig, walkonto another, and get a new job," says Chris. "I started on theBrent Charlie platform, moved on to semi-submersibles andfinally to drillships."

These years were also beneficial for Chris when it comesto connections.

"During my four years as a roustabout, I worked withpeople from all over the world - some that have sinceresurfaced," he says.

In 1983, Chris joined Weatherford in the Middle East as aJoint Analyzed Makeup (JAM) technician. Since then, he hasworked for the company in multiple locations - Abu Dhabi,Algeria, Dubai Trinidad, the United States (Houston) andthe United Kingdom - in a variety of positions: drill crewmember, helium-operated leak detection/JAM supervisor,department supervisor, regional operations supervisor, dis-trict manager and well installation services worldwide train-ing manager.

Now all of that experience is coming to bear in Chris'srole as the Weatherford U.K Training Center manager, aposition and discipline that has taken on greater focus aspart of Weatherford's Enterprise Excellence Process (EEP).(For more information, see related article on page 22).

A key component of EEP, one for which Chris is wellprepared, is to improve the value of employees in their cur-rent roles and their potential for advancement

"I feel that the different positions I have held over theyears, as well as the variety locations in which I have livedand worked, enable me to provide a better training environ-ment," Chris says. "My experience allows me to talk to boththe commercial customers and Weatherford employees withan equal understanding of both of their needs."

Chris's experience also pays off in being able to offeremployees a framework about how much the industry has

Comes

U.K. Training Center manager, Chris Bali (left) often pro-vides tours of the Aberdeen, Scotland, site to visitingcustomers, students and Weatherford employees.

changed. For instance, during Chris's 20 years withWeatherford, there has been a significant shift in the wholeoil field's mindset toward safety.

"Back in those days, if someone got hurt while workingon the rig, they waited for a medic while everyone else con-tinued to work as if nothing happened," Chris remembers."But now, even minor injuries shut down the entire opera-tion, and this can be quite costly for operators."

Likewise, Chris also has seen Weatherford make majorstrides in workplace safety. For example, he taught Safe Start,a course designed to increase employee awareness of safetyon the job, to 400 Weatherford employees last year. *V

Weatherford has two dedicated training and technology

resources that provide full-sized drilling rigs for training,

product development and testing. These think tanks for

cultivating industry expertise and product leadership are

Weatherford's Technology & Training Center in Houston,

and RigTrain in Aberdeen, Scotland.

W Magazine I 2004 First Quarter I 21

ЕЕР

Entein A

;.;yr 0.;=

Achieving internal and external cus-tomer satisfaction is easier said thandone. But Weatherford has 'taken agiant step toward reaching this goalwith its revitalized. EnterpriseExcellence Process.

In 2003, Bernard J. Duroc-Danner,

Weatherford's chairman and chief exec-

utive officer, decided to re-focus the

corporation on its core elements, one

of which was re-kindling Weatherford's

culture of excellence.

To emphasize this comrnitmentDuroc-Danner appointed Keith Morley

as corporate vice president Enterprise

Excellence. A key

responsibility of

Keith Morley,

Corporate Vice

President,Enterprise

Excellence

this role is to guide a cross-divisional

team charged with helping each

employee enhance every aspect of

excellence in their daily activities. Thefollowing interview with Keith gives

some background about why the pro-

gram is much more than the more

familiar Quality programs of the 1990s.

Q: What are the business drivers

behind Weatherford's Enterprise

Excellence Process?

A: More than ever, the financial

and operating challenges facing our

customers demand innovative technol-

ogy, reliable equipment and effective

processes. To meet those demands,

Weatherford's Enterprise Excellence

Process (EEP) focuses on creating a

preventative culture with error-free

performance. The process addresses

everything from total technical integri-

ty assurance for products/service deliv-

Enterprise ExcellenceManagement System

Business Unit QualityManagement System

Business UnitOperating

Procedures

BUSINESS UNITS

Enterprise Excellence Process framework.

ery (including ISO, API or similar

standards of quality management

systems in our manufacturing and

service centers) to continuous processimprovement in our day-to-day

activities with both our internal and

external customers.

Issues such as personnel compe-

tency, performance tracking, strategic

customer alignment design validationand various aspects of safety, security,

health and environment are some of

the key modules of the EEP. The scope

also extends to processes related to our

corporate and social responsibilities.

Q: Ною was the program developed?

A: The first step was pulling

together an EEP Steering Team. This

10-member steering team is not a cor-

porate quality department, the quality

police or a source of funding for qual-

ity initiatives. Rather, it is a cross-divi-

sional, cross-functional, multidisci-

pline task force. The team is empow-

ered to drill down into the organiza-

tion to assess the current perform-

ance of our quality and business man-

agement systems, identify best prac-

tices and champion uniformity of

methods, tools and reporting that will

support our excellence improvement

activities on a global basis.

The next step was conducting ini-

tial assessments of our current quality

and business management systems.

The team visited a range of geographi-

cal locations and different business

units, resulting in the identification of

various best practices that currently

22 I W Magazine I 20O4 First Quarter

ЕЕР

exist within the enterprise. These best

practices, supplemented with other

world class processes, are being used

as the foundation blocks for our

global quality and business process

improvement activities going forward.

For instance, we recommended

incorporating PGA cultural training as

a building block for EEP's quality man-

agement process improvement tech-

niques after seeing how well it worked

at our Gemoco facility in Houma, La.,

and within our drilling and well serv-

ices organization in Norway. Both of

these organizations had maintained the

Philip Crosby, QIT cultural training

techniques as core processes within

their organizations. The QIT culture

empowers everyone from shop floor

personnel to top management to iden-

tify opportunities for improvement, cre-

ating an environment that promotes

continuous process improvement.

Client input also played an impor-

tant role in the initial development of

our EEP. We had excellent input and

contributions from BP in terms of

understanding the customer viewpoint

They helped us improve the design

and implementation of various aspects

of the process by sharing their experi-

ences and lessons learned in their

Global Quality Improvement Process,

which they have actively been imple-

menting for a number of years.

Q; What does EEP focus on

specifically?

A: The Steering Team, in collabora-

tion with Weatherford's Executive

Leadership, has identified seven areas

of improvement that with immediate

focus on the development of uniform

global practice, will enhance our oper-

ating performance and technical

integrity. Cross-functional teams are

assessing these improvement areas, or

"modules," to determine the scope,

functional requirements and appropri-

ate tools that are required to allow uni-

form application throughout

Weatherford. The modules under

review are:

1. Quality Management System

2. Performance Tracking

3. Personnel Competency

4. Equipment Maintenance

5. Strategic Customer Alignment

6. Design Validation and

Commercialization

7. Customer Requirements

Verification

Another improvement opportunity

we identified was the need for a docu-

mented, uniform set of performance

expectations or standards. As a result,

we published Weatherford's Enterprise

Excellence Management System,

Expectations Document This docu-

ment addresses the Seven Elements of

Excellence (see graphic at right) mat

are at the core of the Enterprise

Excellence Management System

The 7 Elements are based upon the

five core components of ISO 9000,

which include a documented Quality

Management System, Management

Responsibility, Resource Management,

Product &f Service Realization, and

Measurement-Analysis-Improvement

To these, Weatherford added Risk

Management and Health, Safety,

Security &f Environment to emphasize

the critical importance of these two ele-

ments to Weatherford. Under the head-

ings of these seven elements, we have

defined clearly what Weatherford

requires of our management and our

employees as we conduct our daily

business.

ELEMENTS of EXCELLENCE

1QUALITY MANAGEMENT SYSTEM: Ensuringthat the output of all processes achieve the

documented requirements and the expectationsof the Enterprise Excellence Process

!MANAGEMENT RESPONSIBILITY:

Demonstrating commitment of Weatherford's

leadership to enterprise excellence, continual

improvement and employee empowerment

( RISK MANAGEMENT: Identifying risks and

establishing methods to control them

tRESOURCE MANAGEMENT: Understanding the

link between resources and business success

and applying those resources effectively

iPRODUCTS SERVICE REALIZATION: Using

established processes to effectively

manage the six phases of product and

service realization

!MEASUREMENT, ANALYSIS & IMPROVEMENT:Creating systems that provide meaningfulperformance indicators and proven methods for

continual improvement

' HEALTH, SAFETY, SECURITY & ENVIRONMENT

(HSSE): Planning and managing all of ouractivities safely, with minimum impact on ourenvironment

W Magazine I 2004 First Quarter I 23

ЕЕР

Q: How will it benefit customers and

suppliers?

A: For our customers, the EEP

process results in significant advantages

(EEP framework on page 22]. For

instance, enhanced uniformity through

common processes will produce greater

efficiency and more effective planning.

EEP also will provide processes that

yield better discipline in capturing cus-

tomer requirements. As a result, non-

conformance in the delivery of products

and services to the external customer

is reduced and the completion of pro-

cesses in an error-free manner for our

internal customers mean that efficiency,

performance levels and ultimately our

value are each raised. This value

increase is quickly realized through

greater customer confidence, optimized

performance and reduced downtime.

For our suppliers, we can provide

better discipline in specifying require-

ments, which reduces non-confor-

mance to specifications and increases

performance levels. It also promotes

the sharing of goals and key perform-

ance indicators.

Q: Ною mil it benefit employees?

A: EEP provides a defined, uniform

framework and set of management

expectations as a roadmap to support

our future growth and help employees

better understand Weatherford's needs

and requirements. The employee's

career path will be better denned

through the emphasis on training and

competency assessment Improved

alignment of job descriptions/skills

requirements/training planning/demon-

strated competency is realized and

employees have better career-path defi-

nition and advancement flexibility

across the entire organization.

It also empowers employees to con-

tribute to identifying opportunities for

improvements, and to be involved in a

team environment to help implement

positive changes. The removal of waste

and the elimination of hassle from

their job process will create a more

productive and successful workforce

and in turn more opportunity for all

stakeholders: employees, customers

and suppliers.

Q; What milestones have been

reached to date?

A: Currently, Weatherford is imple-

menting a uniform cultural approach

to excellence and process improve-

ment through the implementation of a

customized Philip Crosby Quality

Improvement training program. In the

fall of 2003, Weatherford's entire exec-

utive officer team, the EEP Steering

Team, the 12 EEP Champions and

Lead Facilitators, (appointed by the

regional leadership to drive EEP

activities on the regional level) and

regional, product line/global business

unit vice presidents and other leader-

ship personnel went through Crosby

training and EEP orientation pro-

grams. We also have conducted Train-

the-Trainer programs in both

Aberdeen and Houston. These trainers

will conduct courses in Management's

role in Excellence, Skills for Excellence

and Essentials of Excellence through-

out the organization.

We recently published an Enterprise

Excellence Management System—

Expectations document that includes

our Enterprise Excellence Policy,

Objective and Commitment statement

Additionally, it provides an explanation

of the 7 Elements of Excellence that

defines a roadmap for management

and employees to follow to help us

achieve our objective. You can view

Weatherford's EEP Expectations docu-

ment at nmjw.weatherford.com.

Q: What are the next steps?

A: For 2004, we will continue to

focus on cultural training. We also will

continue implementing key perform-

ance indicators and develop a support

structure within every region for the

growth of the program. ^

24 I W Magazine I 2OO4 First Quarter

Pump up your reservoir recovery with Weatherford - the expertsin every form of artificial lift.

Lift Systems offered:* Reciprocating Rod Lift" Progressing Cavity Pumping* Gas Lift' Plunger Lift* Electric Submersible Pumping* Hydraulic Lift* Production Automation

& Optimization

Benefits:All Forms of Lift.We are the only single-source provider worldwide, offering products and systemsacross all artificial lift platforms.

Production Automation & Optimization.We combine the best hardware, software and communication systems to provideoptimum reservoir management and recovery ~~ from we/lsite or desktop.

Hybrid Systems.We integrate key technologies and combine the strengths of different forms of liftto increase efficiencies and improve economics.

Weatherford. The Lift Experts.™

Weatherford§ Worldwide ALS Customer Service: 713/60.4—1-800 email: als@woatherford.rom www.weatherford.com/ads/ak

briefly speaking

Caseand Me

Contracts

Real ResultsWeatherford's Rig Systems grouphas successfully introduced a revolu-tionary "all-in-one" PowerFrame™ on theBP Ula platform in Norway. As the firstall-in-one machine of its kind, this newsystem goes beyond the traditional defi-nition of iron roughneck, integratingautomated functions for mud bucketoperation, stabbing guide application,and cleaning and doping of drilLstringconnections. The original purpose ofthe project was to support local legisla-tion in an attempt to enhance safety byremoving "hands" from the drill floor.The system is the first on the market toaccomplish this task while also offeringadditional benefits, such as enhancedcommunication and make-up efficiency.

Automated doping operation by all-in-one PowerFrame on BP Uia platform.

Shell recently recognizedWeatherford as a key component totheir successful world record surfaceblowout preventer deployment in deep-water Brazil. The exploration well wassuccessfully drilled to a total depth

beyond 1,6405 ft [5,000 m).Weatherford assisted Shell in thisrecord-breaking project by supplyingand operating the mechanized TubularRunning equipment for the wellborecasing and casing riser. The success ofrunning the riser with an SBOP inBrazil, which is outside the normalbenign ocean conditions where the sys-tem is primarily run, opens up newopportunities worldwide with the costsavings of reduced time and the possi-bility of third- or fourth-generation rigsrunning the system rather man thecurrent fifth-generationI

The rig team, which includes manyWeatherford employees, celebratesthe,1 world record blowout preventerdeployment in deepwater Brazil.

Weatherford Directional DrillingServices—Venezuela has successfullycompleted the first well of a 10-welldirection drilling and measurement-while-drilling contract for PDVSA inthe Guafita field in southwesternVenezuela.

ContractsIn Chad, West Africa, ExxonMobilrecently awarded Weatherford a

supplier arrangement for progressingcavity pumping systems (PCPs] andproduction optimization systems fortheir Rome and Miandoum fields.The initial order was for 50 systemsvalued at about $10 million and mayresult in a significant sourcing con-tract and service agreement to beawarded this year. To date, five testwells have successfully tested up to9,000 bbl of fluid per day, and threewells are now on production.Installation of the production systemswill begin in January 2004.

Weatherford's Tubular RunningServices product service line recentlywas awarded the casing, tubing andriser running for BP's deepwaterMad Dog spar project Mad Dog is adevelopment project in Green CanyonArea Block 825 in 4,500 ft (1,372 m]of water. These services will couplewith the previously purchasedWeatherford PowerFrame™ andTorkWinder™ tong to efficientlyhandle all Mad Dog's tubular andbottomhole assembly needs.

In the United States, BP hasawarded Weatherford the Koreacommissioning for a Tubular RunningServices contract for their ThunderHorse deepwater project, which is thefirst step toward technical pre-qualifi-cation for work in the Gulf of Mexico.It is also a significant achievement forWeatherford to be working with BP intheir most challenging and largestdeepwater project to date.

26 I W Magazine I 20O4 First Quarter

briefly speaking

Weatherford completed two jobsin November as part of a major con-tract awarded by Petrobras earlier in2003. After taking several months tobuild special equipment, Weatherfordis furnishing and operating drillpiperiser string, hydraulic umbilical spools,and all associated hydraulically con-trolled equipment for the installationand intervention of subsea Christmastrees in Petrobras's deepwaterAlbacore Leste field. The work willbe handled out of Weatherford's basein Macae, Brazil.

Weatherford-Trinidad was recent-ly awarded a 28-well project throughits agent for the installation of PGPsystems. The total scope of the projectcould be 52 wells and may extend toother product lines, such as wellsiteautomation/optimization, plunger lifeand possibly electric submersiblepumping systems.

Stolt Offshore Ltd. has awardedWeatherford's Pipeline &? SpecialtyServices group the flooding, gaugingand hydrostatic testing activities forthe in-field pipelines and risers withan option for the de-watering activitiesfor Chevron Texaco's Sanha project,offshore Angola.

Weatherford's PCP systems group- Venezuela, was recently awarded aone-year contract extension. This proj-ect helped the customer achieve pro-duction of more than 124,000 b/d of oilwith minimum lifting costs. Once thecontract is complete, the customer will

purchase the equipment and enter intoa service contract with Weatherford for125 wells.

Niko Resources Ltd. recentlyawarded Weatherford a contract tosupply tubing retrievable surface con-trolled subsurface safety valves andaccessories for a 12-well offshore proj-ect This is the first award for theWeatherford's Safety Valve productline in the Indian subcontinent

Weatherford's Compression andProcess Solutions business unit (for-merly Gas Services International] hasbeen aggressively contracting severalwork projects in various regions of theworld. This global business unit, whichspecializes in client-specific compres-sion packages and floating productionstorage and offloading packages, wasawarded contracts totaling more than$50 million in recent months. Thesecontracts include, but are not limitedto, work with Modec (Offshore IvoryCoast), Enertrade (Queensland,Australia), Dodsal/Oxy (Oman) andBunduq (Offshore UAE).

ExxonMobil's U.S. Land DrillingDepartment recently awardedWeatherford's Tubular RunningServices group all their South Texasdrilling rigs. This comprises a five-rigassignment serviced out of CoipusChristi.

Apache awarded Weatherfordwith contracts covering TubularRunning Services, Liner Systems and

Cementation Products. Weatherfordwas able to meet the challengingrequirements of the independentoperator supporting Apache'sprogram to enhance the overallproductivity of their newly acquiredassets. This project is an importantmilestone for Weatherford's North Seaoperations, with new and independentplayers entering the market

BP has awarded Weatherford'sLiner Systems business unit a con-tract to service their requirements inNorway. This assignment is the firstof several pending Pan Europeancontracts that have been awarded toWeatherford, with others likely tofollow.

Vermillion has given Weatherfordthe opportunity to prove its ability tobundle UBS, Wellserv and Dalen servic-es with a contract to provide a fullunderbalanced coiled tubing drillingpackage. Four wells in the Paris basinarea of France will initially be drilled,with 10 to 12 additional wells slated forthis year.

Communications are a key compo-nent in WeilServ's success.

W Magazine I 2004 First Quarter I 27

briefly speaking

Danish Oil Natural GasExploration Sf Production recentlyawarded Weather-ford's WellServunit a four-year contract for the sup-ply of coiled tubing services in theNorth Sea. The contract initiallyinvolves 14 oil wells in the Nini/Cecilie and Siri fields, and theAmerada Hess-operated South Arnefield. WellServ will supply a range ofequipment and services including:coiled tubing; fluid pumping; nitrogenpumping; thru tubing; production log-ging; perforation; milling; zonal isola-tion; and flowline.

AwardsWeatherford-Brazil received theScience and Technology Master Prizefrom the Institute of Studies andResearch for Quality. The MasterPrize is awarded to companies andBrazilian institutions that, throughtheir processes, methods, products,techniques, services and investmentsin science and technology, resulted ininnovative, creative solutions andpromotes the development of thecountry. Petrobras was the only otherrecipient of this award in the oil andgas industry.

TrainingWeatherford's fourth successfulArtificial Lift training course for cus-tomers was held in October. Thecourse provides a thorough introduc-tion to the theory behind all forms ofartificial lift, demonstrating the advan-tages and limitations of each system,

application considerations and sampleperformance predictions. Courses willbe held in February and July this year.

ChevronTexaco secured Weatherfordto prepare posters covering drillingand production technologies for thenew ChevronTexaco and BP DrillingTraining Alliance facility.

Weatherford's Drilling TrainingAlliance (DTC), which provides train-ing for drilling and production engi-neers with BP, ChevronTexaco andtheir affiliates, has been involved in theset up of the new ChevronTexaco andBP Drilling Training Alliance facility.New posters were designed to repre-sent the well construction sequenceand provide a graphical illustration ofwhere products and services fit intothe process of creating a well.Organizers believe this will help stu-dents understand how specific equip-ment plays a role in their future wellplanning.

Weatherford's training center,RigTrain in Aberdeen, Scotland, offerscommercial and corporate training.Fully equipped with eight classrooms,the center features a training work-shop, two land drilling rigs, four testboreholes and two drilling simulators.

A team of qualified, experienced

instructors offers regular courseson a range of topics from drillingtechnology to well intervention tech-nology to health and safety legislationawareness.

Weatherford's RigTrain facility wel-comed nearly 5,OOO studentsthrough its doors in 2003 andexpects close to 6,OOO in 2O04.

For more information on any of theseupdates, please visit the WeatherfordWeb site at www.weatherford.com or

email info@weatherford.com.

28 I W Magazine 1 20O4 First Quarter

briefly speaking

40 Million Contract Awarded for Underbalanced Drilling

Weatherford's recent four-year contract extension, which

was announced Jan. 12, solidifies its platform for contin-

ued growth in the Middle East and North Africa.'••'- • • : ;©s!?f! • i ij|i

The contract extension will enable the company to pro-

vide underbalanced drilling systems (UBS) for Petroleum

Development Oman (PDO), a joint venture with Shell. ;

The contract was extended because of the proven• *'".-• :;:'.;

productivity, safety and cost benefits from using

Weatherford's UBS packages; as well as PDQ's identification

of underbalanced drilling as a key technology to help offset

declining production rates from mature Omani reservoirs.

Since June 2002, PDO has drilled 28 wells with

Weatherford UBS as part of a multi-well program to evalu-

ate the technology's economic and operational benefits. In

the first phase, PDO drilled 14 wells underbalanced in the

Nimr field in Southern Oman.

In the second phase, the underbalanced re-entry proj-

ect exceeded - and in some instances tripled -forecasted

production rates. All wells met or exceeded key perform-

ance indicators that were based on quality, health, safety

and environment performance; increased well deliver-

ability; and overall operational efficiencies. This phase of

the project also has yielded significant costs savings when

compared with the initial campaign.

"Together with Weatherford UBS, PDO has gone up a

huge learning curve in these campaigns, both from an

operational viewpoint, where efficiency has increased

tremendously, and from our reservoir understanding.

Safety is our top priority, and we are very pleased that the

campaign has been implemented without any underbal-

anced drilling-related incidents," said Paul Francis, PDO

Underbalanced Drilling Implementation Team leader. "We

are highly satisfied with the project's outcome and antici-

pate further spread in the use of underbalanced drilling

over the next four years."* "

The current third phase of PDO's unde.• ' - . . . ' .

program involves Weatherford drilling more complex

underbalanced drilling multilateral wells in the southern

Omani oil fields.

Winter/Spring 2004 WeatherfordEvent

.

Managed Pressure Drilling Forum

SPEIPCEM

Multilaterals, Intelligent Completions,

Expandables (MIE Forum)

IADC/SPE Drilling Conference

Offshore West Africa

SPE/ ICOTA Coiled Tubing Conference

Syrian Oil & Gas Exhibition

SPE International Oil & Gas Conf. & Exhibition

Offshore Technology Conference

Coalbed Methane

Global Petroleum Show

Neftegaz

Corporate TradeshowDates

Jan. 27-29

February

Feb 16-18

Ж March 2-4

March 17-19

Sip March 23-24 :;ЙApril 5-8

M;.' April 26-28 ^ШШ *May 3-6

Hi June 3-4 ' • : ; ШЙ1;June 8-10June 21-25

Schedule:Location

Galveston, Texas

Villa Hermosa, Mexico

The Woodlands, Texas""»•»" V™"/ •"* *™™

Dallas "Т*?Т p:-?

Abuja, Nigeria

The Woodlands

Damascus, Syria

Beijing \

Houston

Gillette, Wyo.

Calgary, Canada

Moscow

''<ШЙ:

'' ''"111

!••:•:•••:• -. :-: -•": -:::

;;•-'• "l*

• • :,.'. Г-.',,"'

W Magazine I 2004 First Quarter I 29

flashback

\ of Tul t-

л ж rt'& S li £ КГ

Weatherford has signifi-

canuy broadened and ele-

vated its product portfolio

since its humble begin-

nings as a centralizfr and

scratcher company in

1948. However, much of

the company's reputation

for service and responsive-

ness stems from what me

term our classic core, tech-

nologies...tlie well con-

struction, drilling tools,

fishing tools and otter

services that clients have

come to associate witii the

Weathetford mane. This

column's purpose, is to

highlight those classic, seg-

ments and the mle they Weatherford entered the tubular running services business in 1959 when manual casingplay in "Weutherford today, tongs were still the only option for operators.

The decade of the 1970s, one otherwise known for events

such as the impeachment of U.S. President Richard Nixon

and the Vietnam War, was also a crucial turning point for

Weatherford as a company

Why? It marked the creation of our tubular running busi-

ness, which, with more than 400 sets in service, held the

world record for the largest long inventory.

Weatherford's foray into tubular running started in 1959

with a traditional offering of standard casing tongs. In an

effort to continue developing a breadth of product and serv-

ice offerings, Weatherford acquired Lafayette, La.-based Lamb

Industries, Inc. in 1975, which added hydraulic tong technol-

ogy to the company's already strengthened portfolio.

This acquisition brought the Model 16 tong and the Joint

Analyzed Make Up QAM®) system, both of which are still

used around the world today, into Weatherford's tubular

running portfolio. JAM was the first commercial torque

turn computer monitoring system, which provided more

efficiency and less room for error for operators. The Model

16 tong, known in the industry today as the 16k tong, was

the first gated rotary-power tong. The Model 16 was easier,

safer and more versatile because of a smaller and lighter

profile, and higher torque output capability.

Today, we continue to evolve our tubular running services

offering. Aside from the JAM and Model 16, we also devel-

oped the industry's first mechanized rig systems and a vari-

ety of other innovations, ranging from casing handling to

developing a total tubular management package (see related

article on page 18}. ^

Tubular Running ServicesCasing Handling Equipment

Casing Running Services

Critical String Services

Hydraulic Power Tongs

Total Tubular Manayornsnl

Production Smng installations

Mechanized Rig Systems

Autoseai Circulating Systems

Torque Monilormc] & Testing

30 I W Magazine I 20O4 First Quarter

Expanding

Well costs typically cut by 20%Productivity increased by up to 70%

It's the bottom line that matters

Weatherford has expanded over 28.9 miles of ExpandableSand Screen (ESS™) in 231 installations. Isn't it timeyou shared in the SUCCESS™ story?

ESS screen: Unrivaled performance

Longest track record: ESS screen was first installed over 3 years ago in a well that isstill stable and producing consistently.

Consistent growth: In the last year, Weatherford has installed more than 25,042 feetof ESS screen in 44 wells (in a range of hole sizes).

World's longest installation: 7,200 feet of 4-inch ESS screen in a 6-inch hole at15,843 feet on the Shell U.K. Exploration and Production Brigantine-A offshore well.

A unique design: ESS screen is the industry's only compliant expandable sandscreen providing a high productivity completion due to: a large ID, large in-flowarea, support to the well bore and low plugging.

Highest number of geographic applications: ESS screen has been successfullyinstalled in: Gulf Coast, South America, China, Venezuela, North Sea, Middle East,Azerbaijan, Nigeria, Cameroon, Brunei, Malaysia, Indonesia and Australia.

ESS screen employs the revolutionaryPetroweave* system of overlappingrectangular metal weave filters.

Installed globally, ESS screen performssuccessfully in the most challenginglocations.

Want your own SUCCESS™ story?log-on to www.expandables.com

Weatherford© 2004. Weatherford International Ltd. All rights reserved. The Global Expandable

Technology Leader