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Standard Forms and Procedures for Chemical Product Lifecycle OPT-T-2016-001 1 Standard Forms and Procedures For Chemical Product Lifecycle Reference No. :OPT-T-2016-001 Version :1.0 Release Date : April 18, 2016 Author :John Xiao Approval :John Xiao Use :Segment and Area President FETC, Research Center MPL, HSE, Marketing Revision History Version Date Description Comments 1.0 18 Apr 2016 Initial Release

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Page 1: Standard Forms and Procedures For Chemical Product Lifecycle · Standard Forms and Procedures for Chemical Product Lifecycle OPT-T-2016-001 3 1. Introduction This document describes

Standard Forms and Procedures for Chemical Product Lifecycle OPT-T-2016-001

1

Standard Forms and Procedures For Chemical Product Lifecycle

Reference No. :OPT-T-2016-001

Version :1.0

Release Date : April 18, 2016

Author :John Xiao

Approval :John Xiao

Use :Segment and Area President

FETC, Research Center

MPL, HSE, Marketing

Revision History

Version Date Description Comments

1.0 18 Apr 2016 Initial Release

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Contents

1. Introduction ............................................................................................................................ 3

2. Specifications and Quality Assurance ....................................................................................... 3

2.1Product and Raw Materials Information ...................................................................................... 3

2.2Quality Assurance Standard Q/OPT 0015/2010 for KCM001 ....................................................... 4

3. QUALITY, HEALTH, SAFETY, ENVIRONMENTAL .......................................................................... 5

3.1HSE and HAZCOM Data Sheet ....................................................................................................... 5

3.2Waste minimization and Management Plan ................................................................................ 7

3.3Environmental Guidelines ............................................................................................................. 7

4. Field Operations ...................................................................................................................... 8

4.1Wellsite Delivery Review .............................................................................................................. 8

4.2Operational Impact Study ............................................................................................................. 8

4.3Field Test Check List .................................................................................................................... 10

4.4Example of Field Test Plan .......................................................................................................... 10

4.5Product Manual .......................................................................................................................... 11

4.6Example of Product Technical Data Sheet: ................................................................................. 12

5. Manufacturing, Procurement and Logistics ............................................................................ 13

5.1Manufacturing Procedures and Vendor Information ................................................................. 13

5.2Example of Product Labeling ...................................................................................................... 13

5.3Authorization to Ship Experimental Products ............................................................................ 14

6. Marketing and Intellectual Properties .................................................................................... 14

6.1Product Codes ............................................................................................................................. 14

6.2Marketing Analysis ...................................................................................................................... 16

6.3Example of Marketing Flyer ........................................................................................................ 18

6.4Client and Internal Training PPT ................................................................................................. 19

6.5Patent, Paper, Case Histories ...................................................................................................... 19

Copyright © 2016 OPT Oilfield Services, Unpublished Work for internal management use. All rights reserved. This articles may contains confidential and proprietary intellectual property of OPT Oilfield Services and may not be copied or stored in an information retrieval system, transferred, used, distributed, translated or re-transmitted in any form or by any means, electronic or mechanical, in whole or in part, without the express written permission of the copyright owner.

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1. Introduction

This document describes standard forms and procedures that apply to research, development and

application of oilfield chemical products.

Classification Forms and Procedures

Specification and Quality Assurance Product and Raw Material Information Quality Assurance Standard Q/OPT

Quality, Health, Safety, Environmental HSE and HAZCOM Data Sheet with MSDS Waste Minimization and Management Plan Environmental Guidelines

Field Operations

Wellsite Delivery Review (Initial and Final) Operation Impact Study Field Test Check List Product Manual Technical Data Sheet

Manufacturing, Procurement, Logistics

Manufacturing Process Vendor/Supplier Information Packaging and Labeling Authorization to Purchase Raw Materials

Marketing and Intellectual Properties

Coding Marketing Analysis (SWOT, ROI etc.) Marketing Flyers Client and Internal Training PPT Patent, Paper, Case Histories

2. Specifications and Quality Assurance

2.1 Product and Raw Materials Information

Code: EffectiveDate: Status:

ProductName: PurchasingAgent:

Description: PurchasingLevel:

ShelfLife: QARepresentative:

Ingredient weightpercentage(wt%) CASNumber

Name: TestingMethod Specification Unit

ProductName ProductLine ConcentrationorLoading SoldAs

Company ManufacturingSite Nature

Name

ProductandRawMaterialInformation(OPTConfidential-InternalUseOnly)

BasicInformation

ChemicalComposition

Notes

SpecificationsandTestMethods

TestingResult

FieldApplications

StatusorRawMaterialCode

RawMaterialSupplier

ProductName

Approval

Title Date

Notes

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2.2 Quality Assurance Standard Q/OPT 0015/2010 for KCM001

2.2.1 Scope of Work

Describes the product specifications, testing methods, sampling and regulations, transportation,

warehousing, storage, packaging and labeling.

2.2.2 References:

GB/T 13216.5-91, ASTM E70, GB12008.3-89, GB12003.6-89, GB10235-2005

2.2.3 Coding:

KCM 001

“001” represents “Product Number”

“KCM” represents “Cementing Product”

2.2.4 Specifications

Table 1 Product Specifications

Items Units Value Test Methods

Appearance N/A White particles Observation

pH N/A 8.0-9.5 Section 5.1

Density S.G. 1.37-1.39 Section 5.2

2.2.5 Testing Methods

(selected portion, see details in product information)

2.2.5.1 pH Measurement

(1) Principle: The electrodes calibrated by standard pH solutions can be used to measure the

concentration of hydrogen ions in aqueous solution. The pH is then calculated by the relationship

between pH and hydrogen ion concentration.

(2) Safety: Read reference information about reagents and test apparatus carefully before testing.

The information include manuals, MSDS, and other published document. The disposal of waste

materials must follow local regulations.

(3) Materials and Apparatus: Buffer solutions at pH 4, 7, 10, pH meter with range 0-14 and accuracy

of 0.1, thermometer with accuracy of 0.1oC, magnetic stirrer with stirring bars, water bath at

accuracy of ±1oC, KCM001

(4) Testing Procedures

i. Prepare test sample, slowly add 1g KCM001 sample into 99ml water.

ii. Place test sample and standard pH buffer solutions into water bath with temperature controlled at 25oC.

iii. Calibrate pH meter with standard buffer solutions.

iv. Measure pH value of test sample and record.

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2.2.6 Rules of Sampling and Qualifications

2.2.6.1 Sampling

Samples must be taken from at least 10% of the whole product delivered to the warehouse or

location. Total amount of the sample is about 1kg and mix them well. Split the sample into two parts

(about 500g each) and place them into dry and clean insulated sample bottles. Label them with

product name, sampling date, place of sampling, lab tech name, date of manufacturing, and batch

number.

2.2.6.2 Rule of Qualifications

A qualified product MUST meet the specification items listed in Table 1. Double the sample quantity

and re-test the product if more than one items (including one) in Table 1 does not meet the

specification. The product is disqualified if it still fails to meet the specifications.

2.2.7 Packaging, Labeling, Storage and Transportation

(1) Use plastic-lining paper bags with high strength and durability.

(2) Label must include: manufacturer, address, product name, date of manufacturing, batch number,

models, QA standard, shelf-life, and net weight.

(3) Net weight per sack is 25±0.25 kg or 50±0.5 kg.

(4) Test certificate from QA department must attach to each batch of product.

(5) Keep product in dry warehouse with proper ventilation, avoid direct sunshine and humidity

during storage and transportation.

(6) Shelf life is 2 years, can still use it after 2 years if the product meets specifications by this QA

method.

3. QUALITY, HEALTH, SAFETY, ENVIRONMENTAL

3.1 HSE and HAZCOM Data Sheet

This HSE and HAZCOM data sheet must be submitted to QHSE team at the beginning of the Concept

and feasibility phase and revised anytime there is a change in the information. The QHSE team will

distribute this information to IP, MPL teams, at which time direct communication between the project

leader and these groups should be initiated if it has not already been initiated. A written report of the

assessment results including required follow up actions will be sent to the project leader by QHSE

team.

3.1.1 Basic Product Information:

Contact (project leader or developer):

What are the uses of this product?

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In what geographical areas will it be used?

What are the anticipated treatment volumes?

What is the product’s concentration in use?

What other products will it be used together with this product?

3.1.2 Product Composition:

Chemical name CAS# Concentration

3.1.3 Vendor’s MSDS:

(See details in product MSDS)

MSDS include sixteen sections:

(1) Product and Company Information

(2) Composition and information of Ingredients

(3) Hazardous Identification

(4) First Aid Measures

(5) Fire Fighting Measures

(6) Accidental Release Measures

(7) Handling and Storage

(8) Exposure Controls and Personal Protection

(9) Physical and Chemical Properties

(10) Stability and Reactivity

(11) Toxicological Information

(12) Ecological Information

(13) Disposal Considerations

(14) Transport Information

(15) Regulatory Information

(16) Other Information

3.1.4 Registration Plan:

Status Filing Required? (Yes/No) Filing Name Filing Date

DSL/NDSL (Canada)

EINECS/ELINCS (EU)

ASIA COUNTRIES

TSCA (USA)

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3.1.5 Registration Testing Plan:

Product Test Type and Method Lab Used Date Submitted Report Date Results and Report

3.2 Waste minimization and Management Plan

Location Estimated Amount

Waste Composition

Minimization/Disposal Strategy and Methods

Laboratory

Yard and Field Testing - Product surplus - Spills - Waste

Warehouse/District - Product surplus - Spills

Wellsite/Job site - Product surplus - Treatment lines - Tanks/Containers - Flowback pits - Offshore discharge - Others

3.3 Environmental Guidelines

Two principles are generally applied to the daily usage of oilfield chemicals:

(1) Try NOT use hazardous/toxic materials

(2) Justify the HSE issues if we MUST use them.

In general, chemicals such as the following should be avoided because they are likely to cause

unacceptable health, safety, environmental, liability, and regulatory risks, and customer acceptance

will be poor:

(1) highly toxic to animals or aquatic species,

(2) carcinogens,

(3) organohalogens (non-polymeric),

(4) ozone depleters,

(5) EPA Extremely Hazardous Materials list,

(6) marine Pollutant list,

(7) arms control substances.

It will be difficult and sometimes even impossible to find products that do not have one of the above

properties. If products with these properties must be used, we should be able to document the

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reason why we have to use them, including documentation that we tried but could not find anything

more environmentally friendly (Justification). The efforts include:

(1) Is a chemical required?

(2) Why was this one selected? Are all components required?

(3) What is environmental fate? (brief description of what we think happens with this chemical in the

environment)

(4) What is the added value? For instance questions like: Does this product do anything we could not

do before? Increase of production? Reduction of environmental impact? Or anything else we

think would help in the acceptance of the product). This does not need to be a very detailed,

scientific paper; one or two pages of a simple explanation is sufficient.

4. Field Operations

4.1 Wellsite Delivery Review

Items presented by the developer at initial wellsite delivery review shall include as applicable:

Service delivery process maps and operating procedures

Preliminary field test plans

Chemical product registration and ecotox schedule

Draft experimental product MSDSs/International labels

Draft waste minimization plans

Draft packaging plans

Reactive chemical review if applicable

Draft manufacturing plans

List of required field equipment

Items presented by the developer at final wellsite delivery review shall include as applicable:

Service delivery process maps and operating procedures

Field test plans

Chemical product registration and Ecotox Results

MSDSs/International labels

Waste minimization plans

Packaging plans

Reactive chemical conclusions implementation review

Manufacturing plans

List of required field equipment

4.2 Operational Impact Study

(1) Are there any special storage requirements at the district? (Ventilation, temperature, isolation)

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(2) How will the chemicals be transported to location? Are special tanks required for transportation

or on the job location? What becomes of unused product after the job?

(3) Do any of the chemicals involved with this system react with carbon steel, stainless steel, buna-n,

viton, or Teflon? If this is a potential problem, how is this controlled?

(4) Do the hoses used in the additive process require flushing before or after use? What product is

used to flush the hoses? How is the flush disposed?

(5) Can the chemicals involved with the system be pumped with standard metering pumps without

modification?

(6) Do any of the products involved with the system require PPE in addition of the standard PPE?

(Nomex, steel toes, work gloves, glasses)

(7) What are the largest and smallest jobs (product volume) that are expected to use this system?

How much of each product will be required to be on location for the large jobs?

(8) What are the highest and lowest pump rates for jobs that will use this system?

(9) What is the minimum concentration of each additive in gal per 1000 gal (gal/Mgal) of base fluid?

What is the minimum chemical addition rate for each chemical at the minimum pump rate and 16

ppa. (reduce rate by 1/3)

(10) What is the maximum concentration of each additive in gal/Mgal of base fluid. What is the

maximum chemical addition rate for each chemical at maximum pump rate and no proppant

added?

(11) For dry additives. What is the screw factor for the additive. (lbs/rev.) Can all the required additive

be loaded into the feeder before the job? If not, how will the additional product be added?

Where will it be stored so that it can be added during the job?

(12) Are the field test objectives consistent with the marketing plan? Do the field test objectives take

into account data required for modeling?

(13) Which of the chemicals get added at the mixer suction and which at the mixer discharge?

(14) Are any of the chemicals likely to foam in the mixer? Is the shear rate of the mixer adequate to

mix the chemicals and not so strong it destroys the product?

(15) How does the viscosity compare to J508W in the range of 40F to 120F? Make a comparative

graph if you feel this is a potential issue.

(16) Can the number of additives be reduced by premixing some of the additives? If so, does this

become a disposal or transportation issue?

(17) Do any of the liquid additives require metering rate precision of 5% or less when compared to the

base fluid? Do any of the dry additives require metering rate precision of 10% or less?

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(18) Are the liquid additives conductive enough to be read with a magnetic flowmeter or do they

require a mass flowmeter?

(19) Is there a clearly defined pre-job (on location) quality test procedure? Is there a clearly defined

quality test procedure for the lab?

4.3 Field Test Check List

Duration of Testing (Well defined initiation and completion criteria)

Number of jobs, Hours, Units, Defined

Type of Job Defined

Test Locations Designated, Agreed with Location Managers

Field Test Coordinator(s) Assigned

Objective of Testing Defined, Plan Written

Quantify the extra value this technology brings to the client in beta test

Draft Operator’s or User's Manual

Tech Letter, including Field Mixing Procedure(s)

Parts Manual (if applicable)

Spare Parts or Inventory (w/MSDS) Readily Available

Trouble-Shooting Manual

Draft Online Training Material

Training Provided

Maintenance Manual

How do we charge for this during field testing

Failure Description Defined

Field Test Report Format Provided

Participation of other departments defined

4.4 Example of Field Test Plan

4.4.1 Objectives

Clear demonstration that KCM008E provides substantially improved fluid loss control in high

temperature cementing operations at effective cost level compared to pre-existing techniques

employed by the target customer sample, and that the improved fluid loss control properties plus

cost-effectiveness to demonstrable in zonal isolation and well integrity, especially in higher

temperature environments.

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4.4.2 Target Environment

From market research we have identified the following locations and lead clients to ensure a

representative test environment and to expedite the field testing phase. OPT individuals from these

operations have also been identified as ‘location’ marketing representatives:

(1) China (SINOPEC Shengli Oilfield) Aimin Wang

(2) Indonesia (Pertermina) Ku Katong

(3) Abu Dhabi (ADCO) Huifu Shan

A field test training school will be held at FETC Dongying in June 1, 2016. Orders for KCM008E to be

processed through MPL Beijing only after approval from FETC Dongying.

4.4.3 Plan Ownership

The person responsible for the field test plan is Yanping Fan in FETC Dongying.

4.4.4 Deliverables Required

(1) Deploy KCM008E on at least six (6) wells globally that yield successful results.

(2) Three (3) wells to be 200-250F and three (3) wells to be > 250F.

4.4.5 Measurement of Success

For a treatment, using KCM008E, to be deemed successful it must meet the following criteria:

(1) Demonstrate improved job quality (bonding strength between formation and cement, cement

and casing) compared to conventional jobs using CBL or other measuring techniques.

(2) Cost saving by 20-50% compared to conventional fluid loss additives.

(3) Agreement from client for OPT to publish well performance data.

(4) A comprehensive and timely DEE report is to be submitted to FETC DY each time KCM008E is

deployed along with a commentary of well site delivery.

4.4.6 The Time frame

The field testing is envisaged to start in Q4-2016 and last for around six months with a

Commercialization Gateway Meeting anticipated to be held in April, 2017, prior to the product

commercialization launch in June, 2017.

Plan Prepared by Product Developer

Plan Agreed by Yanping Fan FETC Manager

Plan Approved by John Xiao Chief Scientist

Plan Approved by Huifu Shan Segment President-WCS

4.5 Product Manual

(see manual details in Fluid Technical Manual)

A typical product or fluid technical manual include:

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(1) Introduction

(2) Physical Properties, Hazards, and Environmental

(3) Fluid or Product Design

(4) Fluid Mixing and Field Operations

(5) Quality Assurance Testing

4.6 Example of Product Technical Data Sheet:

Early Strength Enhancer KCM042

Introduction

In cementing shallow wells with low-density cement system, adequate compressive strength is

required for supporting the casing and next operation. KCM042 is used to accelerate the cement

hydration process and improve crystal structure of set cement, in order to enhance the early strength

development of the cement and reduce WOC time at low temperature and low density conditions.

Physical Properties and Hazards

Additives Form S.G. Water Solubility Melting/

Flash Point (oC) Health Hazard

Physical Hazard

pH

KCM042 White

powder 2.65 Soluble 880 Eyes, Dust N/A

Chemical Properties and Application

The KCM042 is inorganic early strength enhancing agent, which can effectively reduce the cement

slurry thickening time and improve the early strength of set cement. When KCM042 is used together

with KCM029 filling agent, it will activate the ingredient of KCM029 and improve the compressive

strength of low-density cement systems. KCM042 is compatible with most of KCM cement additives.

Treatment

Typically 2-20%BWOC is effective for the compressive development of cement system. In low density

slurry system design, concentration of 5-10%BWOC is generally used.

Packaging

KCM042 is supplied in plastic-lining bags with net weight of 25kg/sack. It should be stored in shaded

areas with good ventilation. Keep it away from high temperature, humidity and direct sunlight.

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5. Manufacturing, Procurement and Logistics

5.1 Manufacturing Procedures and Vendor Information

MPL coordinates contacts with vendors and suppliers. The vendor and supplier information is

extremely confidential and required for the completed formulation for each new raw material. The

information include:

(1) Manufacturing procedures, including order of addition.

(2) Product and purchase specifications

(3) MSDSs for raw materials and products.

(4) Three 4-ounce samples made from different lots of the components.

5.2 Example of Product Labeling

PRODUCT CODE: KCM001

PRODUCT NAME: Accelerator

Packaging: 25kg per sack

Batch Number:

Manufacture Date:

Gross Weight: 25.18kg

Net Weight: 25kg

Company: OPT Petroleum Engineering & Technology Co., Ltd.

Address: No. 1240, #2 South Road

Dongying City, Shandong Province 257000

The People’s Republic of China

Phone: +86-546-7777360

Fax: +86-546-7758303

HAZARDS IDENTIFICATION

Main Health Hazard:

Eye Contact: Cause severe irritating

Skin Contact: Cause severe irritating

Inhalation: Harmful if inhalation

Ingestion: Harmful if swallowed

Main Environmental Hazards: None

Special Precaution: None

Physical Hazards: Dust

FIRST AID MEASURES

Eye Contact: Immediately flush eyes with water for 15 minutes while holding eyelids

open and seek medical attention

Skin Contact: Remove contaminated clothes and shoes. Wash thoroughly with soap and

water. Seek medical attention if irritation occurs

Inhalation: Move to an area with fresh air

Swallowing: If several grams are swallowed, immediate medical is required. If

delayed, consider inducing vomiting. After vomiting give milk or water.

Note: None

FIRE FIGHTING MEASURES

Extinguishing Media: Water fog, alcohol foam, CO2, Dry Chemical

Further Information: Wear protective fire fighting clothing and avoid breathing vapors, Using

Self-Contained breathing apparatus in closed area

NFPA Rating: Health: 2; Flammability: 0; Reactivity: 1; Other: None

HANDLING

TRANSPORTATION INFORMATION

UN Number: None

IMO Description: Not Regulated

IATA Description: Not Regulated

ADR Description: Not Regulated

REGULATORY INFORMATION

Symbols: None

Risk: None

Safety Advice: No special precaution required

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5.3 Authorization to Ship Experimental Products

This form must be completed and in the hands of the approved vendor before any experimental

product may be shipped.

6. Marketing and Intellectual Properties

6.1 Product Codes

R codes: These are codes for “raw materials.” These codes are used for purchasing materials from our

suppliers. They are created in conjunction with and as part of the product codes.

ER codes: They are used to designate intermediates that may be isolated before being formulated or

further developed as products. They are created in conjunction with and as part of the product codes.

They may require the support of OPT MSDSs and labels.

Confidentiality Codes

The Confidentiality Code (CC) level of a chemical product is designated as CC-1, CC-2, or CC-3. The CC

level signifies the degree to which information about a product is restricted. The lower the CC level

the more important the confidentiality or consistency, and thus the more restrictive.

CC-1: Highly Restricted Products

Knowledge of the specific chemical composition and source(s) are restricted to designated personnel.

The product composition and supplier(s) may be disclosed to additional suppliers or clients with

whom OPT has executed a secrecy agreement. No direct sales of CC-1 products are allowed. CC-1

products are to be used ONLY as part of a well service.

CC-2: Restricted Products

Knowledge of the specific chemical composition is restricted to designated personnel. Knowledge of

sourcing information (e.g. supplier(s) and supplier's product name) is controlled within OPT. The

product composition and supplier(s) may be disclosed to additional suppliers or clients with whom

OPT has executed a secrecy agreement.

DATE:

TO:

Attn:

Product Name: Product No.:

Ship To: Function No.:

QUANTITY UNIT COST

Packaging Type: Total Packages to Ship:

Shipping Date:

Purchasing Order:

Project Charge No.:

Developer:

Department Manager:

cc:

FETC Manager

Authorization Form to Ship Experimental Products

Signatures:

Date:

Date:

Developer

TOTAL COST

Attachment

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CC-3: Unrestricted Products

For CC-3 products the chemical product name, composition, and source(s) may be released to anyone

within or outside of OPT.

Purchasing Level Codes

The Purchase Level Code (PLC) of a chemical product is designated as PLC-1, PLC-2, or PLC-3. The PLC

signifies the degree to which sourcing of a product is restricted. The lower the PLC number the more

important the confidentiality, consistency, or supply advantage, and thus more restrictive.

PLC-1 Criteria:

All PLC-1 materials must be centrally purchased.

PLC-2 Criteria:

Materials may be purchased centrally or locally, but ONLY from approved sources shown on the

Internal Purchasing Specifications and which have active purchasing agreements in place.

PLC-3 Criteria:

PLC-3 coded materials may be purchased centrally or locally from either the designated approved

sources (as listed on the Purchasing Specification) or from qualified local sources.

Code Assignments:

KDF Drilling Chemicals

KCM Cementing Chemicals

KMA Acidizing Chemicals

KHF Fracturing Chemicals

R Raw Materials

ER Experimental Materials

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6.2 Marketing Analysis

Is there a need?

Is this real?

Is there real

market? Will client buy it?

Is it a real

product?

Satisfy market?

Can it be made?

Differentiation?

Can we win?

Product

competitive? Cost-effective?

Company

competitive?

Industry

structured?

Organization

effectiveness?

Adequate

return?

Is it worth?

Will it be

profitable? Risk acceptable?

Satisfy other

needs?

Company

objectives?

Other factors?

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Example of SWOT Analysis on High Temperature Sandstone Acidizing Technology:

Strength (1) Less CAPEX intensive, low job cost, high net profit, small fluid volumes, simple to formulate (2) World wide presence, CT service, multiple product lines (3) Good solid technical base, good reputation (4) Good analytical tools to help in understanding (5) Environmentally conscious technology (6) Good systems- new products (7) Aggressive modelling of acid process (8) Fluid selection guidelines (9) Large product offering

Weakness (1) No custom pumping equipment, lack of matrix acid speciality group, not differentiated enough, service quality issues (2) Lack of understanding diversion /displacement issues, complex chemistry, real impact of precipitation (3) Fluid selection guidelines vs well/ reservoir environment (4) Training and Marketing, lack of case histories, lack of database of matrix jobs (5) Identifying type & degree of problem, Lack of data given by client (6) Technology is technically driven vs. field cost driven

Opportunity (1) Acidizing could be applied to more wells (2) Remediate prop fracs – Brownfield reactivation (3) Acid frac, heavy oil, less reactive fluids (HT), non-aqueous systems, non fluoride clay dissolution, wormhole in sandstones, special procedures/products for gas wells (4) Real time evaluation of acid treatments (5) Universal continuous diverter for sandstone (6) Matrix stim particularly for depleted reservoirs

Threats (1) Hydraulic fracturing w/proppant, extreme over-balanced perforating, non chemical intervention (PST, vibration) to aid in damage remediation (2) Deceptive competitors’ claims (3) OPT does not have reputation in industry equal to big services (4) BJ phosphonate acid (HV acid) (5) Competitive market – short development time (6) Poor introduction of new technologies (7) Lack of prioritization / co-ordination

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6.3 Example of Marketing Flyer

Effective Laminar-flow Viscous Spacer – ELViS

System Description

ELViS spacer system is engineeringly designed to displace mud prior to cementing in effective laminar-flow technique. It provides good mud and cement compatibility, fluid loss control, adjustable density and rheology, and excellent solid suspension properties. All-in-one formulation mechanism makes operation simple and non-risk. ELViS can be used at both freshwater and seawater and wide range of temperature because of its unique chemical nature. Characteristics and Benefits

Characteristics Benefits Single additive

Simple and easy field mixing and operation Fast hydration

Excellent particle suspension property

Adjustable density and viscosity at both surface and downhole Efficient mud displacement and predictable job design properties

Low fluid loss rate

Compatible with most WBM and cement slurries

Stable at wide range of density and temperature Usable for variety of wells and formations Not sensitive to additives, mix-water, and cement brand

Typical Properties and Application Conditions

Temperature: BHST 100-320oF (35-160oC) Density: 10.0 ppg to 20.5 ppg (1.20 – 2.45 g/cm3) Rheology: Adjustable up to 160oC Mix-water: Fresh water, seawater and brines API Fluid Loss: <50ml Suspension property and stability:

Density 1.70S.G.

Other additives Barite, Defoamer

Spacer concentration 14 kg/m3

Test conditions 20oC, one week aging

Upper density 1.699

Middle density 1.701

Lower density 1.705

Field Cases

Client Comments

We have never used such a good spacer system in our oilfield since we started operation 5 years ago. ELViS system is excellent operationally and logistically because of its simplicity, easy-mixing, and superior suspension property. We are planning to replace all spacer systems with ELViS in our oilfield. Safety Precautions

KCM004 (ELViS HT) and KCM006 (ELViS MT) in ELViS system play the most important role in rheology, fluid loss control, suspending property, and fluid compatibility for high and medium temperature oilwell cementing respectively. In addition, antifoam agent KCM003 and weighting agent are generally used to avoid foaming tendency and adjust system density. Please refer to respective product sheet and MSDS for their safety information.

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6.4 Client and Internal Training PPT

A typical client PPT can be found at 20160418-Client PPT Template-JohnX-v1.0.pptx

6.5 Patent, Paper, Case Histories

A patent example can be found at 20160418-Patent Example-JohnX-v1.0

A published SPE paper can be found at 20160418 SPE Paper Example-JohnX-v1.0

A typical case history can be found at 20160418-Case History Example-JohnX-v1.0