Technological Services for Drilling

Innovation Service Company Petro Engineering , LLC

CONTENT

About us . 1. Drilling Fluids .. 2. Physical and Chemical Research Centre .. 3. Bit Service ... 4. PDM Service .. 5. Measuring-While-Drilling Service.. 6. Contacts

3 5 10 13 17 21 28

2

About the Company

ISC PetroEngineering a team of highly qualified specialists and young scientists, putting its main objective the achievement of high technical-economic and qualitative indicators in the construction of oil and gas wells within a variety of geological and technological conditions. Our main goal is the development of drilling engineering services, incorporated scientific approach.

Integrated engineering solutions, a detailed analysis of technologies and rational decisions allow us to meet all the needs of the Customer.

3

Our Staff

ISC PetroEngineering is composed of the commonwealth energetic and highly skilled professionals, supporters of drilling business. The company staff is about 1000 people, including graduates from international universities, MBA programs, leading oil and gas institutes of Russia, 1 PhD, 2 professors, 3 employees are preparing to defend their theses. Managers and specialists of PetroEngineering posses deep field and managing background in such companies as LUKOIL, Rosneft, Surgutneftegas, PetroAlliance, MI Swaco, Weatherford, Schlumberger, etc. Human resources development is one of the priority directions of the company strategy.

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Drilling Fluids Service

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- Analysis of field data and improvement of DF composition

- Mud program development, engineering calculations - Drilling fluids monitoring and measurement - Introduction of advanced technologies and reagents

Our approach is in invention, selection and application of drilling fluid systems, ensuring trouble-free drilling process and reservoir preservation

Drilling Fluids Service

Since 2010 we have drilled more than 1200 wells - Inclination angle up to 90 - Displacement up to 2300 - MD up to 6600

Our Clients: - GazPromNeft - LUKoil - EDC Group - RosNeft - RITEK

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Drilling Fluids Service

Control of technological parameters during drilling and well completion Engineers in field and Company man at office Field laboratory sets Fann and OFITE with HPHT filter press DDR (according API RP 13B-1 and 39-2-645-81) Analysis of finished wells and recommendations

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Reagents for Drilling Fluids

Our Policy : - Direct contracts with manufacturers - Specifications for reagents Petro series, - Incoming laboratory control, - Logistics

HIGH QUOLITY

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Drilling Mud Systems

Petro Cap PHPA encapsulating fluid Petro Com clay-free biopolymer fluid Petro Com S clay-free biopolymer fluid with hydrophobic constituents Petro Com M (NK) high density biopolymer fluid with low solids content, based on NaCl, KCl brines Petro Com M (Ca) high density biopolymer fluid with low solids content, based on CaCl2 brine Petro Pol clay-free mineralized fluid based on cellulose ethers Petro Lime lime-gypsum inhibiting fluid EWO Drill reverse W-in-O emulsion fluid based on mineral oil

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Physical and Chemical Research Centre

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Physical and Chemical Research Centre (PCRC) testing and analytical laboratory of PetroEngineering - Development of new drilling fluid compositions, implementation services - Quality control and testing for all produced and supplied

chemical reagents in compliance with API, GOST, local standards and technical requirements. Feasibility studies on interchanging different chemical reagents.

- Accredited testing for drilling fluids and chemical reagents for drilling fluids according to API Spec 13A, Spec 13B-1, Spec 13D, Spec 13I, RP 63, ISO 13500 and Russian standards and requirements.

- Analytical surveys, development of non-standard techniques for drilling fluids analysis (swelling, interphase tension, wettability, return permeability, defoaming etc.)

PCRC - Equipment

PCRC is equipped with modern laboratory tools and instruments according to API, ISO and GOST standards. All the instruments posses Russian state register certificates and are checked for accuracy on a regular basis.

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Cooperation, analytics, developments

Mutual work of service departments and PCRC: - Chemical reagents sampling, acceptance and control of

supplier incoming production - Worldwide analysis of modern drilling fluid systems - Regional (field) analysis of drilling fluids implementation,

with background survey - Development of new formulations, feasibility and

technological efficiency studies

Permanently covered regions of surveys: - Western Siberia - Urals and Volga - Tyman-Pechora (Komi)

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http://www.tngg.ru/ru

Bit Service

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- Drilling Program preparing

- Matching Bit&PDM for each section

- Logistics and delivery of Bits and spear parts

- Drilling Report and Bit Run

- Engineering during well construction

- Post Run Analisys

Bit Service

- Planning and approving Bit Run program - Data base, analysis , recommendations - Pilot projects - Reporting and presentations on wells drilled

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Background

2010 (-) 2011 2012 2013

Bit Service

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Bit penetration vs Time drilling of directional well

Our partners

Our company has direct contracts with: Chengdu Best Diamond Bit Co. Ltd., Burintech, VolgaBurmash, BurService, Universalnoe burenie,UDOL, Centre Instrument Service, Burovaya Technologicheskaya companiya, Uralskaya mashinostroitelnaya company TD RINACO, NOV, SMITH International, Tianjin Lilin Petroleum Machinery Co., Ltd., Kingdream Public Limited Company etc. Together with some manufacturers, PetroEngineering is working on the development of new and improvement of existing designs of drilling bits.

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PDM motor service

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One of the main division of PetroEngineering is PDM motor service department offering top class downhole motors for leading drilling companies in Russia and abroad. Our job is development of hydraulic downhole motors suitable for technological and geological conditions of the fields of Western Siberia, Volga-Ural and Timan-Pechora provinces. Elements of PDM motors produced by PetroEngineering are made from high quality materials and with using advanced technologies. Quality of PDM Motors is certified under API standards, and proved with 7 certificates of quality under ISO 9001 and 9002 standards.

Technical decisions

Durable power shafts have extended OD and more balls with higher diameter. All the Shafts are made of steel sections treated in radial forging machines for higher durability. Axial bearings multi-row radial-thrust ball bearings with extended load capacity. The bearings are made of silicon molybdenum steel alloys at vacuum-arc melting, so the alloy posses high impact resistance and strength, and the bearings have extremely long lifetime.

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# pos. Nomenclature OD, mm

Lobe

configuration

Number of

stages Rate, liter/sec RPM M, N*m Load, kN

1 DMR10665.9DP 105 6:7 5,9 6-12 130-260 250-3800 80

2 DMR17875.7DP 178 7:8 5,7 19,7-39 76-158 9030-15610 250

3 DMR17875.0DP 178 7:8 5 18-38 70-180 10137-12500 250

4 DMR17876.0DP 178 7:8 6 18-38 70-180 11550-13800 250

5 DMR17856.1DP 178 5:6 6,1 19-38 120-230 8000-15000 250

6 DMR17856.0DP 178 5:6 6 15,8-32 78-200 66240-8814 250

7 DMR17877.5DP 178 7:8 7,5 18-35 90-180 12150-14300 250

8 DMR17847.0DP 178 4:5 7 14-32 105-210 8814-11963 250

9 DMR24436.0DP 244 3:4 6 22,5-64 80-220 9570-14782 350

10 -240.5/6.41 240 5:6 4,1 30-60 286-355 9531-16700 350

Technical characteristics

Service Center

PetroEngineering Service centers are located in Pokachi (Western Siberia) and Osa (Urals) towns, equipped with all necessary equipment and measuring instrument allowing to perform full range of maintenance for PDM, jars, etc. Monthly, Pokachi Service Center produce more than 80 repairs. In the centers we have skilled profess