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Review of Zeron100 Failures in DulangADAPTED PRESENTATIONDate: 24 November, 2009 (Week 48)Location: PCSB Kerteh HQ

Iain ReiTechnical DirectorBackgroundPartiesOperator (OC): Petronas Carigali Sdn. Bhd.Service Provider (SP): Geowell Sdn. Bhd.Wire Supplier (WS): Wilco OFS Pte. Ltd.Location: Dulang, PMOScope of WorkSP to provide sand-bailing servicesWS to provide super-duplex stainless steel Zeron100 HS

Background: TimelineTimelineFirst contact: Week 40 (Susp. wire thinning)KSB Visit: Week 41 (Wire inspection)Second Contact: Week 42 (Susp. Inconsistent OD)KSB Visit: Week 43 (Wire inspection)Wire replacement: Week 43 (Inconclusive)Official reply: Week 45 (Mfg. Tolerance)Third Contact: Week 47 (Susp. lower MBL; surface quality; plastic behavior)KSB Visit: Week 48 (now)

Background: Zeron100First used in Dulang: 2003SP: Dimension Bid Sdn. Bhd.Current countries: 6 Malaysia, Indonesia, Vietnam, Thailand, Myanmar, TurkmenistanCurrent mean per annum usage: 60 reelsLargest end-user: Petronas CarigaliLargest single-user: Chevron ThailandKeywords: high breaking load, quality, consistency, support, service, stockist, fast

Background: Zeron100

Discussion: ThinningFirst issue: Wire thinningRestatement: wire is surface thinning inexplicably causing disruption in servicePremise:Wire was said to be unused and new from reelWire was of poor surface qualityConclusion:Wire was found to be usedWire was found to be significantly stressed mechanicallyLink to report from UK

Discussion: Thinning

Discussion: ODSecond issue: Inconsistent ODRestatement: wire OD is inconsistently thick or thin, resulting in uncertainty in quality that could lead to NPTPremise:Wire is said to be newWire OD was changing rapidly during spoolingOperator/helper detected accurately using hands on moving wire from supply to usage reelConclusion:Wire is newWire OD seemed to be changing if detected by handWire was replacedSubsequent findings from Principal show that OD was fluctuating within normal manufacturing limits of 0.001

Discussion: PlasticityThird issue: Plastic behavior of Zeron100 wireRestatement: wire elongates without recovering original length on tension; indication of poor qualityPremise:Break load testing methods are normal and common; equipment used to test is approvedWire elongates plastically without returning to original length under loadConclusion:Tested wire had already broken at rope socket but was undiscoveredSubsequent elongation was due to wire being pulled out of rope socketCup-cone break-ends of wire indicates wire is of good quality

Discussion: Plasticity

What is elasticity and plasticity?

Elasticity: when a material behaves elastically like rubberOn tension an elastic material will elongate proportionately with tensionOn release of tension, an elastic material will retain its original lengthPlasticity: when a material does not behave elasticallyOn tension beyond the elastic limit, a material will begin to act plasticallyThe subsequent increase in tension will not result in proportional elongation of lengthOn release of tension, the material will not return to its original lengthPlastic return of lengthx (plastic elongation)Discussion: Plasticity

SummaryFindingsMost findings conclusively attest to the quality of Zeron100Thinning on recent sand bailing activity is not yet examined and as yet outside of our scope of controlThinning is akin to mechanical erosion whereas stress-corrosion-cracking is a form of chemical erosion (or commonly called corrosion)Problems that have occurred to not seem to be due to the quality of the material or drawn wire

SummaryRecommendationsShorter runs-between-cut/test cyclesCloser surface inspection for scratches and large reductions in OD of wire between run-cyclesWilco have been recommended to:Check for well schematicCheck for nipple or SSD profiles, kick-offs, deviation angles, etc. that may lead to high forces of frictionRequest more supporting information from OC and SPProvide continued support to OC and SP

Case StudyExample: Chevron wire thinning WI/125xx; max pull: 1,350lb; on reel: 21,115'; 271runsMobilized in November 200725,000ft ZERON100, 0.125 WI/125xx; max pull: 1,500lb; on reel: 18,545'; 258runsMobilized in March 200920,000ft ZERON100, 0.125

Case StudyExample: Chevron wire thinning Chevron runs in the northern and southern offshore fields20,000+ runs per yearTypical measured depth of wells: 14,000-16,000ftTypical ordered slickline: ZERON100, 0.125Typical ordered length: 20,000ftTypical service company junk length: Remaining on drum 1.5 x Well MDShows great belief in their program and our wire

Wilco Website PreviewSurface informationHistoryWork historyTechnical informationMaterial data sheetsTest certificates (private access)FirstLook CalculatorContact point

http://www.wilcowirelines.com Contact UsWilco Oilfield Services Pte. Ltd. (estd. 1982)No. 9, Kaki Bukit Road 3, East Point Terrace, Singapore 417829Tel: +65(6)482-3666; Fax: +65(6)482-4782Visit us at: www.wilcowirelines.comEmail us: wilco@wilcowirelines.com

For a full technical presentation, please contact us. Focus group: well & production engineers

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