NEW TECHNOLOGIES INCREASE DRILLING PERFORMANCE IN

OMV PETROM

March 20, Bucharest

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Route to Drilling performance…?

Engineering could be the key!

► Engineering ► identify real drilling problems ( check deeper the offset wells); ► perform well concept selection meetings and engage all key contractors; ► apply the best technology for the best candidates ( will increase the people confidence); ► be open and trust in NEW technology & tools ( casing drilling, stand alone screen, swell packers, slim wells constructions, logging while drilling) where we have good candidates for these; ► team work ; involve more the Rig Contractor, Association & casing & cementing companies as well as engage drilling supervisors during planning stage.

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Reasons for new technologies

► Cut drilling cost by:

►Drilling time reduction;

►Cluster rig site deviated, high deviated & horizontal wells;

► Slim wells.

► Qualitative wells by:

►Using proper drilling fluid systems;

►Performing good cementing operations;

►Proper completion based on reservoir properties.

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Technologies applied

► Down hole motors & Rotary steerable system ( ~ 90% of activity):

► deviated, high deviated and horizontal wells. ► Good drill bits; especially PDC – drill shoe to shoe section.

► Efficient drilling mud systems: Water based mud & Synthetic based mud.

► Running casing L 2 - Casing drilling ( 11 operations in last year):

► casing bit; ► casing running tool / casing drive system. ► Running casing L1 ( ~ 75% of operations):

► reamer shoe; ► casing running tool / casing drive system.

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Technologies applied cntd.

► Casing bit ►Reamer shoe

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Technologies applied cntd.

► Casing Running Tool ( CRT) / Casing Drive System( CDS):

►more flexibility while casing running;

►reduce running time.

Remark: Casing Running Tool was used in around 90%

of casing running operations – except small rigs

( HH -75).

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FACTS - 9 5/8 Casing drilling job

► 760 m vertical section drilled with 9 5/8” casing, TSH-Blue thread;

► 12 ¼” XCD3 Drillable bit;

► 9 5/8”x11” Non-Hard Faced Centralizers.

ADVANTAGES

► Elimination of Casing Running Flat Time of the 9 5/8” casing;

► Better hole cleaning;

► Reduction of mud losses;

► Wellbore Strengthening;

► Safety.

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Time break down comparison

Casing while Drilling at 675 Tintea vs. Rotary Drilling at 679 bis Tintea

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FACTS - Horizontal section realized by real time monitoring

► Down hole motor

► Logging while drilling ( Near Bit iPZIG)

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FACTS – Stand alone screen &

Swell packers on completion string

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FACTS - Stand alone screen (SAS) &

Swell packers(SwP) on completion string

► 7 wells completed with SAS and SwP in last year, as an alternative of open hole gravel pack completion: ► pack on horizontal wells with long open hole section with high

dog leg severity ( DLS); ► some of them produce with higher rate than was expected; ► all wells still produce with no sand problems.

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FACTS - Horizontal shallow wells

► Horizontal wells:

► 15 wells drilled so far;

► Suplac Horizontal wells are Extended Reach Wells by definition

(Measured Depth greater than twice the MD - TVD > 2 x TVD).

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FACTS - Typical Horizontal Well Profile (Suplac)

Expected thickness ~10m tvdss

Top PN = 15.11m tvdss Top PN

Base PN Possible depth of base PN

OWC=-3m vtvdss

Standoff = 2m tvdss

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FACTS - Real time reaction for trajectory control

Red curve – latest proposed trajectory

Green dashed – DESIRED

Build up from the starting point @270 m as much as possible to try to achieve the DESIRED well!

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Conclusions

► Factors of success:

► efficiency increase;

► cost management alongside OMV PETROM values Professionalism, Pioneering, Partnership;

►HSEQ.