STEVE HOUGHTON

North America Operations Manager

Oilfield Water Management

M-I SWACO

Flowback / Produced Water ManagementWater Challenges in the Permian Basin

Integrated Service Offering

Water Sourcing: Municipal

Water wells: shallow and deep

Ponds, Streams and Rivers

AMD, waste waters

Re-use/ Treatment

Sea Water

Environment: Concern about depletion of reservoirs

Impacts the aquatic life

Footprint

Transportation: Number of trucks in the road 12,000 Bls = 100

trucks

High tendency to pipe the system

Water Storage: Use of ponds, impoundments, frac tanks

Temporary and re-usable above ground tanks

Regulations: Ultimate drivers for permits of water sourcing

Dictate discharge criteria

Water Challenges in the PERMIAN BASIN

Integrated Flowback Services: VALUE CHAIN

Fracturing Operation

Flowback Control

• pressure

• rates

Measurements

• Qg, Qo, Qw

• Pwh, Pc, T

Separations

• solids

• liquids

Sampling and characterization

• water analysis

• rate of solids

• chemical analysis

Fluid Management

• loading and hauling

• treatment/inhibition

• treatment/recycling

Normal Production Operations

• separations

• treatment

• measurement

• characterization

Flowback and Clean Up

• High conductivity fracs (minimize

damage to wellbore and reservoir),

increased Q

• Reduce HSE risks

• Automate pressure and flow

control

• Lower $/boep

• Reduce standby and or NPT

• Better reservoir understanding

• Accurate measurements

• PVT quality samples

• Water analysis / prod

treatment

Fracturing Fluid Optimization

• Lower $/boep, increased Q

• Lower flowback op ex

• Improved clean up and less

nuisance issues

• Better integration with

facilities and production

• Improve efficiency of client

engineer

Water Treatment and Management

• Reduce water disposal cost

• Lower $/boep

• Fit for purpose and cost effective

treatments for reuse/disposal

• Short term (mobile)

• Long term (permanent)

• Reduce environmental risks/liabilities

• Chemical conditioning prior to reuse

• Enhance corporate image by being

green

• Water analysis / prod treatment

Standard Spread

• Wellhead

• Choke

• Sand buster

• Chemical Injection

and Chemicals

• Liquid separators

• Vx or other

multiphase flow

meter

• Flare/Vent/Sales

Line

• Line to Pit

• Lines to liquid

storage

• Measurements (P, T,

Qi)

M-I SWACO PRODUCTION TESTING SERVICES

Frac Flowback Services

Frac Plug Drill Outs

Flowback CONVENTIONAL SETUP

Sand traps / Debris Catcher

Choke Manifold

2 or 3 phase Separators

Gauge or Surge Tanks

Flow piping (Up/Downstream)

Flagship Technologies AUTOCHOKE

Innovative transition and application during drill out / flowback applications

Near-constant bottom hole pressure control, prevents wellbore collapse

Precision control for stripping pipe in and out of the hole

Helps to avoid pressure-control incidents thru seamless choke size transitions

Plugged debris at choke manifold causing hammering effect due to sudden pressure

release

Reduces fluid losses and NPT

Mobile Remote unit can be placed anywhere for better communication drilling /

flowback

Digital readouts ensure that errors in pressure readings and pressure inputs are

greatly reduced

Flagship Technologies DUAL PLUG CATCHER

Reduces NPT by allowing critical path removal of

debris and other solids during drill outs and

flowbacks

Upstream of choke manifold and sand filter to reduce

plugging and wear / tear of choke beans (adj/fixed)

Dual flow paths and bypass allows redundancy to

ensure uptime during critical path.

Pad applications for multi-well

measurement(s)

Accurate 3 phase measurement • Ability to take insitu sampling

(PhaseSampler)

• Oil and Gas Mode Algorithms

Mobile or Permanent Installations

Complete well profiling / trending• Able to measure without separation from

start of well cleanup period.

Flagship Technologies VX PHASETESTER - MULTIPHASE FLOWMETER

M-I SWACO OILFIELD WATER MANAGEMENT

M-I SWACOWater Treatment Technologies• Filtration

• Chemical

• Mechanical

• Membranes

• Thermal

Clean Water Returned To

Hydrologic Cycle

Wat

er R

etu

rned

for

Reu

se

Close Loop System

100% Recycle

Pro

du

ced

Wat

er

Disposal/Water Flooding/ Steam Injection

Discharge

Underground

Storage

■ Type 1 Technology: Mobile Total Suspended Solids (TSS) removal – Disinfection

■ Type 2 Technology: Mobile Removal of constituents as Ca, Mg, Ba, Sr, Fe (Reclamation)

■ Type 3 Technology: Mobile Total Dissolved Solids (TDS) removal

■ Type 4 Technology: Central facility with piping system close to produced water activity to

treat water for re-use, disposal or discharge

Treatment Options FIT FOR PURPOSE

Low Mobile Treatment Specifications High

HighTYPE 1:TSS Removal

Disinfection

TYPE 2:Hardness Removal

Ba, Sr

Oil and Grease

TYPE 3:TDS Removal

(Desalination)

Low Price/Bbl High

TYPE 4:Central Facility + Conveyance System

Mobile Treatment:

Early Stage Shale

Gas Play Model

Central Facility:

Produced Water

Model

Filtration System: TYPE 1 TECHNOLOGY

Operational Highlights

■ Filtration of total suspended solids

■ Solids removal to meet operators micron cut

(100 to 0.5 microns)

■ 99.9% water recover for reuse

■ Inexpensive with all produced waters

■ Process rate of 10 barrels/minute

■ Low energy consumption – 30 gallons of

diesel per 24 hours

■ Highly mobile – 24’ enclosed goose neck

trailer pulled with M-I SWACO pickup truck

■ No special permits required for transportation

■ Rig site footprint requirement 35’ x 12’

■ Rig up time: 2 hours

Reclamation System: TYPE 2 TECHNOLOGY

■ Chemical precipitation and filtration of

heavy metals, hardness and total

suspended solids (TSS)

■ 99% water recover for reuse with

TDS below 125K

■ Inexpensive with all produced waters

- price depends on specifications for

reuse

■ Low energy consumption – 60

gallons of diesel per day

■ Highly mobile – transported by 18

wheeler trucks

■ Rig site footprint requirement 120’ x

120’

■ Rigged up and treating fluid within 5

hours

■ Adaptable to changes in feed water

chemistry

Reverse Osmosis: TYPE 3 TECHNOLOGY

Features:

■ Remove TDS up to 40K TDS.

■ Pre-treatment required

■ 35 - 40% recovery drinking water

quality

■ Inexpensive with less than 40K TDS

flow back & produced waters

■ Low energy input required

Central Processing Facility: TYPE 4 TECHNOLOGY

■ Central Water Treatment Facilities for large quantities of produced water

■ Fit-for-purpose process design

■ Design, construction, operation and maintenance project development

Contacts:

Pressure Control:

George Murphy

5950 North Course

Houston, TX 77072

Office: 713 689-6242

Email: gmurphy@miswaco.slb.com

Production Well Services:

Ed Dugas

3600 Briarpark Drive

Houston, TX 77042

Office: 713 689-6183

Email: edugas@miswaco.slb.com

Oilfield Water Management:

Steve Houghton

3600 Briarpark Drive

Houston, TX 77042

Office: 713-689-2084

Email: shoughton@miswaco.slb.com

Questions?