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Automated Well Control in MPD Blaine Dow – Drilling Engineering, Marketing and Technology Manager, DPM 1 9/22/2016 Confidential Information 2013 M-I SWACO

MPD - 101 2 9/22/2016

MPD - 101 3 9/22/2016

Diverting Nuisance Gas Operational Complexity Engineering Detail Gas Circulation Conventional Flow Drilling Equipment Sizing Kick Detection Equipment Layout Design Formation Assessment MPD Program HPHT Narrow MW Detailed MPD Process Engineering TIER 1 4 9/22/2016

Trapping Pressure On Connections Operational Complexity Engineering Detail Gas Circulation Conventional Flow Drilling Equipment Sizing Kick Detection Equipment Layout Design Formation Assessment MPD Program HPHT Narrow MW Detailed MPD Process Engineering TIER 2

Managing Narrow Window Drilling TIER 3 Operational Complexity Engineering Detail Gas Circulation Conventional Flow Drilling Equipment Sizing Kick Detection Equipment Layout Design Formation Assessment MPD Program HPHT Narrow MW Detailed MPD Process Engineering

Compelling Questions to address: Question 1: Can we automate MPD and Well Control? Question 2: What barriers currently exist? Question 3: How do we remove the barriers? 7 9/22/2016

Field Example: Adaptive Pressure Control – MPD / Flow Drilling Mud Gas Separator High Pressure RCD Flare Gas Flow Meter Choke Manifold Flow Meter Backpressure Pump

Automated MPD Well Control Event Influx detected, backpressure applied Influx growing, more backpressure applied

Automated MPD Well Control Event (continued) Heavy weight rollover initiated while drilling resumes Last bit of gas passes at surface, Influx managed

Industry Barriers to Automated MPD Well Control Category Status Equipment: pressure and volume No issues Technology: detection and control No issues Regulations Outstanding Liabilities: Drilling contractor and service provider Outstanding Legacy: Roles and responsibilities Outstanding

Well Control in MPD MPD Operations Matrix Standard Surface Pressure Indicator Defined by MODP Influx Indicator MPD Operations Matrix At Planned Drilling Back Pressure At Planned Connection Back Pressure Planned Back Pressure & Back Pressure Limit Back pressure Limit No Influx Continue Drilling Continue Drilling Continue operation, adjust system to decrease WHP Secure well, evaluate next planned action Operating Limit Continue drilling, adjust system to increase BHP Continue drilling, adjust system to increase BHP Cease drilling, adjust system to decrease WHP and increase BHP Secure well, evaluate next planned action Operating Limit Secure well, evaluate next planned action Secure well, evaluate next planned action Secure well, evaluate next planned action Secure well, evaluate next planned action Optimum parameters for MPD Operations Continue MPD Operations with caution while the influx is confirmed Influx confirmed. MPD Operations must be stopped and the well secured to evaluate next action

MPD and Well Control – Real life HPHT Exploration well, offshore jackup Automated MPD system using flow metering to monitor for influx and loss – navigate PP ramp All necessary pre-planning, and Well control matrix in place The story interpretation of roles and responsibilities was left to be discovered during a live event. Ref: SPE 143099, SPE 163546

MPD and Well Control – Future State Automation of the process Highly likely to improve outcome Desire of several operators Logical Dependencies: Integrated control of MPD equipment and Rig equipment Data: quality, frequency, control Liability agreement

Compelling Questions to address: Question 4: Should we automate MPD and Well Control? Yes! 15 9/22/2016

Thank you

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