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31 January 2017 AlphaRod TM CS Tenaris Sucker Rods “The information in this electronic mail is not intended to constitute professional or any other type of advice and is provided on an “as is” basis. No warranty is given. Tenaris has not independently verified any information –if any- provided by petitioner in connection with, or for the purpose of, the information contained hereunder. Petitioner acknowledges and agrees that the use of the information is at user’s own risk and Tenaris does not assume any responsibility or liability of any kind for any loss, damage or injury resulting from, or in connection with any information provided hereunder or the use thereof. Tenaris products and services are subject to the Company’s standard terms and conditions or otherwise to the terms resulting from the respective contracts of sale, services or license, as the case may be. Unless specifically agreed under such contract of sale, services or license, if petitioner requires Tenaris to provide any warranty or assume any liability in connection with the information provided hereunder, any such warranty or liability shall be subject to the execution of a separate written agreement between petitioner and Tenaris. The information in this electronic mail is confidential and shall not be reproduced or disclosed in any form or by any means whatsoever, without prior permission from Tenaris. For more complete information please contact a Tenaris's representative or visit our website at www .tenaris.com. ©Tenaris 2015. All rights reserved”.

Title of Presentation Frutiger 55 Roman 28pt, Line … · * Service Factor 1 HS (SF:0.9) AlphaRodTM can be simulated in SROD or RODSTAR by MMS or UHS @ SF of 0.9. Tenaris Sucker Rods

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31 January 2017

AlphaRodTM CS

Tenaris Sucker Rods

“The information in this electronic mail is not intended to constitute professional or any other type of advice and is provided on an “as is” basis. No warranty is given. Tenaris has notindependently verified any information –if any- provided by petitioner in connection with, or for the purpose of, the information contained hereunder. Petitioner acknowledges and agrees thatthe use of the information is at user’s own risk and Tenaris does not assume any responsibility or liability of any kind for any loss, damage or injury resulting from, or in connection with anyinformation provided hereunder or the use thereof. Tenaris products and services are subject to the Company’s standard terms and conditions or otherwise to the terms resulting from therespective contracts of sale, services or license, as the case may be. Unless specifically agreed under such contract of sale, services or license, if petitioner requires Tenaris to provide anywarranty or assume any liability in connection with the information provided hereunder, any such warranty or liability shall be subject to the execution of a separate written agreementbetween petitioner and Tenaris. The information in this electronic mail is confidential and shall not be reproduced or disclosed in any form or by any means whatsoever, without priorpermission from Tenaris. For more complete information please contact a Tenaris's representative or visit our website at www.tenaris.com. ©Tenaris 2015. All rights reserved”.

2Tenaris Sucker Rods Tenaris 31 January 2017

AlphaRodTM

In US +80% of the sucker rod failures are associated with

Fatigue or Corrosion-Fatigue

The operation conditions are becoming more challenging

3Tenaris Sucker Rods Tenaris 31 January 2017

AlphaRodTM

Development Premises

Operating Conditions

•Harsh environment, CO₂, H₂S, Chlorides

•High cyclic loads, temperature, pressure

•Water cut

Available options

•Standard industry steels

•Inhibition

•Lower strength material and oversized string design

R&D Inputs

•Develop a new series of Sucker Rods specially designed to:

•Increased corrosion-fatigue resistance,

•Capable to handle high loads

•Released at a market level price.

90% results in CF failures

4Tenaris Sucker Rods Tenaris 31 January 2017

AlphaRodTM

Development Process: Steel Design

Heat Treatment

• Full martensitic structure (95%)

• Tempered Martensite• Fine Ferrite Grains• Very fine Carbides

Ultra Clean Steel

• Highly controlled raw material

• Low Residuals:• Low P• Limited S & O

Chemical Composition

• Low Carbon• Micro Alloying: Cr,

Mo, Nb, B, Ti

Microstructure

Resulted in:• Fine grain/packet size distribution• Fine precipitates with high

spherical shape factor• Low dislocation density

AlphaRodTM

5Tenaris Sucker Rods Tenaris

AlphaRodTM

Metallurgical Concept

Normalized and Tempered rods

Standard Structure

AlphaRodTM

• Full martensitic structure (95%)• Tempered Martensite• Fine Ferrite Grains• Very fine Carbides

Perlite Bainite

6Tenaris Sucker Rods Tenaris

HS

500x

Center

AlphaRodTM CS

500x

Center

HS

500x

surface

AlphaRodTM CS

500x

surface

Grain size

~15 mm

Grain size

~4 mm

AlphaRodTM

Microstructure - Standard Rod vs AlphaRod™

7Tenaris Sucker Rods Tenaris

AlphaRodTM

Metallurgy Effect

Toughness

Fatigue Endurance

Microstructure

Corrosion Fatigue

8Tenaris Sucker Rods Tenaris 31 January 2017

AlphaRodTM

Introduction to Toughness

Fracture toughness is a property which describes the ability of a material containing a crack to resist

fracture

9Tenaris Sucker Rods Tenaris 31 January 2017

AlphaRodTM

Testing: Toughness

Increased toughness compared to Standard grades

KD 4320

UHS 4330

MMS 4138DA 4142

AlphaRod™ CS

Tenaris Norris Upco Weatherford Exceed

DA 4142 78 4142 AD 4142 D 4142 D

KD 4320 90 4320 KD 4720 KD 4720 EKD 3130

DS 4330 75 4330 S87 3130

MMS 4138 96 4138 HS 4138 T66/XD 4138 EH6 4138

UHS 4330 97 4330 HD 4332 EH7 4330

S88 3130 EHK 3130

10Tenaris Sucker Rods Tenaris 31 January 2017

AlphaRodTM

Introduction to Fatigue Failures

Paris Law

Threshold

11Tenaris Sucker Rods Tenaris 31 January 2017

AlphaRodTM

Testing: Fatigue Nucleation and crack growth rate

Threshold 25% Increased Threshold

Paris Law

1 10 100

1E-7

1E-6

1E-5

1E-4

1E-3

0.01

7.61

Fatigue crack growth:

Experim.; Best fit (Paris Law)

Q&T DS852, Gr. D: ; da/dN = 9.82E-10(K)3.28

N&T 4330, Gr.D: ; da/dN = 2.84E-9(K)3.18

Threshold:

Experim.; Best fit for threshold

Q&T DS852, Gr. D: ; (Kth= 9.46 MPa.m

0.5)

N&T 4330, Gr.D: ; (Kth= 7.61 MPa.m

0.5)

9.46

Q&T and N&T materials

Fa

tig

ue

cra

ck g

row

th r

ate

, d

a/d

N (

mm

/cycle

)

Stress intensity factor range, K (MPa.m0,5

)

AlphaRodTM CS

DS (4330M)

AlphaRodTM CS

DS (4330M)

ASTM E647

12Tenaris Sucker Rods Tenaris 31 January 2017

AlphaRodTM

Introduction to Fatigue Failures

Fatigue curve in salt water

Fatigue curve in air

Fatigue limit

N (no. of cycles)

S (

Str

ess /

Mpa)

S-N curve (Stress applied vs. Cycles until failure)

Corrosion-Fatigue Curve

13Tenaris Sucker Rods Tenaris 31 January 2017

AlphaRodTM

Testing: Fatigue Limit in Air

Improved fatigue resistance compared to Standard grades

AlphaRodTM CS

AlphaRodTM HS

AlphaRodTM CS

Standard N&T

Standard N&T

14Tenaris Sucker Rods 31 January 2017

• Liquid Solution simulating formation

water: pH~5.5

• Gas: CO2 + N2

• Temperature: 140F

• Pressure: 450psi

• Partial Prssure CO2: 145psi

• Loading: Mod Goodman @SF 1

~150% D, ~85% UHS

• Cycling frequency 20 cycles/min

(10 to 30 days each test)

AlphaRodTM

Lab test validation: Corrosion-Fatigue (CF)

CO2 H2S

• Liquid Solution: pH~4.5

• Gas: 100% H2S

• Temperature: 77F

• Pressure: 14psi

• Partial Prssure H2S: 14psi

• Loading: Smax=Mod Goodman

@SF 1= ~150% D, ~85% UHS

• Cycling frequency 20 cycles/min (10

to 30 days each test)

15Tenaris Sucker Rods Tenaris

Superior Corrosion Fatigue Performance in H2S and CO2 environments

Mechanical Properties Superior Toughness 2.25x vs API Grades

AlphaRodTM

Lab test validation: Summary

D A

llo

y

MM

SKD

UH

S

Alp

haR

od

™ C

S

D A

llo

y

MM

S

KD

UH

S

Alp

haR

od

™ C

S

Alpahrod™ 4x vs KD & UHSAlpahrod™ 2x vs KD & UHS

D A

llo

y

KD

Alp

haR

od

™ C

S

16Tenaris Sucker Rods Tenaris 31 January 2017

AlphaRodTM

Modified Goodman Diagram

* Service Factor 1

HS (SF:0.9)

AlphaRodTM can be simulated in SROD or

RODSTAR by MMS or UHS @ SF of 0.9

17Tenaris Sucker Rods Tenaris

AlphaRod™ Accesories are manufactured following the same quality standards andspecifications than AlphaRod™ in order to reach the identical characteristics andperformance than AlphaRod™ sucker rods:

• Couplings

• Grades: CS (Corrosion Service

• Sizes: 5/8” to 1 1/8” (FS and SH)

• BlueRod™ Sizes: 3/4” to 1” (FS and SH)

• Crossover Couplings

• Polished Rod Couplings

• Pony Rods

AlphaRodTM

Accesories

AlphaRod™ CS Coupling

After 112 operating days

T 8630 coupling

After 100 operating days

18Tenaris Sucker Rods Tenaris 31 January 2017

AlphaRodTM

Field Validation

XX1 XX2XX3 XX4

Last update: 12/31/2016

+60% of them already reach target and 4 of them

triple previous run time

11 strings installed in US in the last month

19Tenaris Sucker Rods Tenaris 31 January 2017

Concluding Remarks

The new steel notably increases the run life in corrosive

environments (CO2, H2S) at high loads (Capable of working up

to Modified Goodman Diagram for HS @ SF 0.9).

Steel Design Lab Testing Field Validation

6 years of R&D program

AlphaRodTM

31 January 2017

Questions?

Sucker Rods Division

“The information in this electronic mail is not intended to constitute professional or any other type of advice and is provided on an “as is” basis. No warranty is given. Tenaris has notindependently verified any information –if any- provided by petitioner in connection with, or for the purpose of, the information contained hereunder. Petitioner acknowledges and agrees thatthe use of the information is at user’s own risk and Tenaris does not assume any responsibility or liability of any kind for any loss, damage or injury resulting from, or in connection with anyinformation provided hereunder or the use thereof. Tenaris products and services are subject to the Company’s standard terms and conditions or otherwise to the terms resulting from therespective contracts of sale, services or license, as the case may be. Unless specifically agreed under such contract of sale, services or license, if petitioner requires Tenaris to provide anywarranty or assume any liability in connection with the information provided hereunder, any such warranty or liability shall be subject to the execution of a separate written agreementbetween petitioner and Tenaris. The information in this electronic mail is confidential and shall not be reproduced or disclosed in any form or by any means whatsoever, without priorpermission from Tenaris. For more complete information please contact a Tenaris's representative or visit our website at www.tenaris.com. ©Tenaris 2015. All rights reserved”.