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Welling & Company

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A Worldwide Survey of the Market For C F Cementing Products & Services ti P d t S i

2010 Edition

(c)2010--Welling & Company Unauthorized reproduction or distribution of this report in whole or in part, is prohibited. Contents are protected by International Copyright Laws

July, 2010

TableofContents
INTRODUCTION13 ANALYSISOFFINDINGS134

VERBATIMCOMMENTS172 GRAPHICHIGHLIGHTS1156
Activity&Trends116 WellCharacteristics1720 TechnologyIssues2128 AgreementStatements2933 PerceivedLeadingSuppliers3464 SupplierPenetration,MarketShare&PerformanceRatings65122 NetPromoterScores123132 DerivedImportance133135 ValueMaps&CustomerValueScores136145 CementingHardware146149 SupplierStrengths&Weaknesses150156

APPENDICES
ListofRespondingCompanies CopyofSurveyQuestionnaire

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INTRODUCTION
This report presents the results of a survey of decisionmakers within petroleum operating companies worldwide who are engaged in the utilization of cementing servicesandtechnology.Thesurveyfocusedondeterminingtheirattitudes,practices, expenditures, trends, technology needs and other perceptions and preferences pertaining to the utilization of cementing services and technologies for both land and offshoreoperations. Theresearchwasconductedforagroupofcompaniesengagedinprovidingcementing equipment and services to this segment of the petroleum industry. The study was a multiclient effort conducted for the exclusive use of the sponsoring companies and addressedtheconcernswhichtheyhaveregardingtheindustryanditsfuture. The research was conducted by Welling & Company, specialists in research in and for thepetroleumandrelatedindustriesforover39years,withindepthexperienceinthe completionandproductionsegmentsoftheindustry. Thesurveyconsistedofinterviewswithatotalof289keyindividualswithincompanies locatedandactiveinseveraldifferentcountriesandoperatingareasoftheworld.The 289 key individuals interviewed for this survey represented approximately 430 geographic areas and basins of the world since some of the respondents interviewed wereresponsibleformorethanonegeographicregion.Insomecompanies,morethan oneofficeorlocationwascoveredandthesearetreatedasseparatecompaniesfor purposesofthesurvey,iftheiractivityandprojectswereexclusiveorunrelatedtothe otherlocationscovered. Thecompaniestargetedforinterviewingaswellasthespecificrespondentswithineach company were selected from a proprietary database of companies and key personnel maintained by the research firm, supplemented by names of key decision makers provided by the sponsoring companies. The sample focused on the more active companies ineacharea.Inthatregarditisnotatotallyrepresentativecrosssection. Rather,itrepresentstheresultsofamodifiedrandomsampling. Specificrespondentswithineachfirmwereprequalifiedasknowledgeableandinvolved intheselectionofvendorstoprovidecementingservices.Characteristicsofthesample maybefoundintheinthefirstfewgraphsofthereportandinthepercentagedtables located in the interactive CD ROM database. There is also a list of the companies interviewed and their location in the Appendices of the report and available in the interactiveCDROMdatabase.

ii Thequestionnairewasdesignedwithinputsfromseveralofthesponsoringcompanies. Thequestionnairewassubmittedtomostofthesponsors(thosewhohadcommittedto theprojectbeforequestionnairedevelopmentwascompleted)beforeinterviewswere begun.AcopyofthequestionnairemaybefoundintheAppendicesofthereport. Interviews were conducted both in person (facetoface) in some areas and by telephone by the research firms professional staff working from the firms offices in HoustonandLondon.Interviewerswerespecificallybriefedintheadministrationofthe questionnaire. Respondentswerenottoldtheidentityofthesurveysponsorsandtheywereassuredof theconfidentialityoftheirindividualanswers. TheinterviewswereconductedfromAprilthroughearlyJulyof2010. Upon completion of the interviews they were coded and tabulated and the results convertedtopercentagedtablesforinterpretation.Datapresentedinthesetableshave beenbrokenouttoreflectdifferencesbetweensignificantsubsamples. Thereport,completewithanalysisofthedata,ispresentedalongwithaninteractiveCD ROMdatabasetoassistusersingleaningallpossiblevalueandusefromtheresults. Thewrittenreportcontainstheanalyticalsectionsconsistingofthefollowing: Introductionandmethodology AnalysisofFindings GraphicHighlightswhichpresentallkeyresultsingraphicformat Alistofthecompaniesinterviewedandtheirlocation. AcopyoftheQuestionnaireusedtoconducttheinterview The Statistical Exhibits which are the percentaged results of every question in tabular format broken out to reflect differences by significant subsample are available in the interactiveCDROMdatabaseandbrokenoutinthefollowingsubsamples: ByCompanyType: Majors LargeIndependents Small/MediumIndependents NationalOilCompanies

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ByGeographicArea:

ByHemisphere: WesternHemisphere EasternHemisphere The statistical exhibits have been percentaged, carried out to one decimal place. The raw numbers of interviews or respondents represented by the percentages are presentedadjacenttothepercentages.Thebasenumberofinterviewsonwhicheach column of percentages has been based may be found at the top of each column of percentages. The Interactive CDROM contains all data from the survey and affords users the opportunity and capability to break out results in an almost infinite number of sub samplesorslices. Surveyusersshouldbecautionedaboutplacinggreaterreliabilityontheresultsthanis warrantedbythesizeanddesignofthesample.Inparticular,itshouldbeborneinmind thatthesurveywasnotdesignedtobeaquantitativemarketsurvey,butratherastudy ofthetrends,desiresandneedsinvariousareasofoperationalpractice.Whilesome competitiveandmarketinformationwasacquired,itshouldnotbeconsideredas totallyindicativeoftheindustryormarketsincethesamplewasnotdesignedtobea purely representative crosssection. Rather, it concentrated on the more active companieswhorepresentthebulkofthemarketformostofthesurveysponsors. This report was prepared by Welling & Company who is solely responsible for its contents. The results are intended for the exclusive use of thesponsoringcompanies andanyreproduction,distributionorpublishingofanyofthefindingsreportedherein withouttheexpress,writtenconsentofWelling&Companyisunlawfulandissubjectto prosecutionunderinternationalcopyrightlaws.

Land Offshore(shelf+deepwatercombined) OffshoreShelf OffshoreDeepwater GulfofMexico U.S.Land Canada LatinAmerica NorthSea/Europe WestAfrica AsiaPacific NorthAfrica/MiddleEast Russia/Caspian NorthAmerica International

AnalysisofFindings
TrendinExpendituresforCementingServices
Anticipatedexpendituresamongtheoperatorssurveyedforcementingservicesfor2010and 2011areupoverallversus2009withanestimatedaverageincreaseof16.9%.Morethanhalf (59%)oftheoperatorssurveyedstatedthattheyplantospendmorein2010and2011versus 2009.Approximately10%oftheoperatorssurveyedstatedthattheyplantospendlessduring thesametimeperiod.

TRENDINEXPENDITURESFORCEMENTINGSERVICESOVERNEXT2YEARS(20102011) SpendMore SpendSame SpendLess NetChange+/ TOTALSAMPLE 59% 31% 9% 16.9% MAJORS 58% 30% 12% 14.1% LARGEINDEPENDENTS 56% 33% 10% 18.7% MED/SMALLINDEPENDENTS 53% 37% 7% 19.0% NOC'S 70% 24% 6% 15.4% NORTHAMERICA 59% 32% 9% 15.1% INTERNATIONAL 59% 30% 10% 17.8% TOTALLAND 60% 31% 8% 15.8% OFFSHORESHELF 56% 33% 10% 15.4% OFFSHOREDEEPWATER 61% 28% 8% 26.2%

TRENDINEXPENDITURESFORCEMENTINGSERVICESBYREGIONOVER NEXTTWOYEARS NetChange+/ USLAND 16.4% GULFOFMEXICO 8.3% CANADA 7.5% LATINAMERICA 11.6% NORTHSEA/EUROPE 19.7% WESTAFRICA 24.6% MIDDLEEAST/N.AFRICA 13.7% ASIAPACIFIC 22.6%

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Thelargestanticipatedincreaseinexpendituresisreportedamongtheoffshoredeepwater operatorsat26.2%.Geographically,WestAfrica(24.6%),AsiaPacific(22.6%)andtheNorthSea (19.7%)reportedthelargestanticipatedincreasesduringthenexttwoyears. Theanticipatedspendingincreasesreportedinthissurveyisconsistentwithotherresearch Welling&Companyhasrecentlyconductedforsurveysinothersegmentsoftheoilandgas industryincludingcompletions,surfacewellheadsandotheroilfieldservicesrepresentinga generallyoptimisticperspectiveamongtheoperatorsforthenexttwoyears. CertainlytherecenteventsintheGulfofMexicowillimpactspendingplansinthisregionasthe futurerulesforengagementhaveyettobedeterminedandmaynotbecomeclearformonths.

SpendingRangesforCementingServices
Theaverageannualexpenditureforcementingservicesamongtheoperatorssurveyedwas$15 millionandrangedfromaslowas$1.1milliontoover$20million.Thetablesbelowillustrate thetypicalspendingrangesamongtheoperatorssurveyedandisalsobrokenoutbyvarious subsegments.

RANGESOFANNUALCEMENTINGEXPENDITURES LESSTHAN1.1MILLION 1.1TO3.0MILLION 3.1TO5.0MILLION 5.1TO10.0MILLION 10.1TO20.0MILLION 20.1TO50MILLION OVER50MILLION

17% 21% 17% 16% 18% 8% 3%

AVERAGEANNUALCEMENTINGEXPENDITURES(INMILLIONSOFUS$) TOTALSAMPLE 15.063 MAJORS 29.220 LARGEINDEPENDENTS 12.560 MED/SMALLINDEPENDENTS 6.850 NOC 8.480 LAND 13.370 OFFSHORESHELF 17.520 OFFSHOREDEEPWATER 17.700 NORTHAMERICA 18.690 INTERNATIONAL 15.160

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OpinionofCurrentPricingForSelectedCementingProductsorServices
Overall,operatorsviewpricingforprimarycementingjobs,remedial/squeezejobsandplug& abandoncementingasfairandeachcategoryreflectsanormaldistributionofresponses reportedamongtheoperatorssurveyed.Foamcementingisviewedasbeingslightlyhigher pricedamongtheoperatorssurveyedfollowedbycementbondlogging.Improvementsin communicatingthevalueoffoamcementingwouldhelpbringthiscategoryincloseralignment withtheotherservicecategoriesmeasured.
FAIRLY PRICED 56% 44% 48% 20% 38% SLIGHTLY WAYTOO NET(ACCEPTABLE HIGH HIGH MINUSHIGH) 29% 11% 16% 27% 11% 6% 22% 7% 19% 25% 15% 20% 32% 14% 8%

PRIMARYCEMENTINGJOBS REMEDIAL/SQUEEZEJOBS P&ACEMENTING FOAMCEMENTING CEMENTBONDLOGGING

DistributionofCementingExpenditures
81%ofplannedcementingexpendituresduring2010and2011areintendedforprimary cementingwiththebalancedistributedbetweenremedialcementing(11%)andplug& abandoncementing(8%).

TOTALSAMPLE NORTHAMERICA INTERNATIONAL TOTALLAND OFFSHORESHELF OFFSHOREDEEPWATER


DISTRIBUTIONOFCEMENTINGEXPENDITURESBYTASK PrimaryCementing RemedialCementing 81% 11% 86% 10% 79% 11% 84% 10% 76% 12% 78% 12%

Plug&Abandonment 8% 4% 10% 6% 12% 10%

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Remedial/squeezejobsareintendedtosealperforationsapproximately31%ofthetimeas reportedbytheoperatorsfollowedbyshoesqueezes(29%),sealingcasingleaks(23%)andliner topsqueezes(17%).

INTENDEDPURPOSEOFREMEDIAL/SQUEEZEJOBS SEALPERFORATIONS SEALCASINGLEAKS LINERTOPSQUEEZE SHOESQUEEZE

31% 23% 17% 29%

Thepreferredcementingtechniqueforeachtypeofremedial/squeezejobisshownbelowin thetable.

PREFERREDCEMENTINGTECHNIQUEFORSELECTEDREMEDIAL/SQUEEZEJOBS HIGH LOW BRADEN UNDER BLOCK PRESSURE PRESSURE HEAD PACKER SQUEEZE SEALPERFORATIONS 16% 15% 15% 8% 14% SEALCASINGLEAKS 12% 13% 22% 7% 14% LINERTOPSQUEEZE 12% 21% 16% 9% 9% SHOESQUEEZE 6% 17% 18% 19% 10%
AnticipatedDrillingandP&ATrends

Landoperatorsstatedthatonaveragetheyplantodrill92oilwellsin2010and114oilwellsin 2011.Landoperatorsalsoreportedthattheyplantodrillonaverageapproximately76gas wellsin2010and93gaswellsin2011.Plannedplug&abandonmentwashighestamongthe landoperatorswithareportedaverageof18peroperatorsurveyedin2010andgrowing modestlytoanaverageof20peroperatorin2011. Thefollowingtablesprovidemoredetailontheexpectednumberofwellstobedrilledin2010 and2011(oil,gasandinjection)alongwiththeplannednumberofplug&abandonments brokenoutbyland,offshoreshelfandoffshoredeepwater.

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TOTALSAMPLE OILWELLS GASWELLS INJECTION/DISPOSALWELLS PLUG&ABANDONWELLS

2010
LAND 92.0 76.1 10.4 18.4 SHELF 14.5 7.9 3.8 3.0 DEEPWATER 7.0 4.2 1.4 0.7 LAND 114.4 93.5 8.1 20.3

2011
SHELF 17.4 9.6 2.9 2.7 DEEPWATER 7.9 8.8 1.8 0.3

NORTHAMERICA OILWELLS GASWELLS INJECTION/DISPOSALWELLS PLUG&ABANDONWELLS

2010
LAND 110.7 96.4 9.6 20.3 SHELF 7.2 7.4 1.0 4.2 DEEPWATER 4.7 4.0 0.3 1.3 LAND 135.8 132.9 4.9 21.7

2011
SHELF 8.3 4.3 0.5 2.7 DEEPWATER 3.7 3.5 0.1 0.3

INTERNATIONALSAMPLE OILWELLS GASWELLS INJECTION/DISPOSALWELLS PLUG&ABANDONWELLS

2010
LAND 57.5 22.2 7.1 9.6 SHELF 10.5 6.0 2.5 2.9 DEEPWATER 5.1 1.2 0.5 0.5 LAND 60.3 27.8 7.5 10.8

2011
SHELF 11.5 6.5 1.8 2.9 DEEPWATER 3.7 1.9 0.4 0.3

SHAREOFWELLSBYTYPEOVERNEXT2YEARS TOTALSAMPLE NORTHAMERICA INTERNATIONAL 48% 46% 57% 38% 42% 25% 5% 3% 8% 9% 9% 10%

OILWELLS GASWELLS INJECTION/DISPOSALWELLS PLUG&ABANDONWELLS


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CharacteristicsofFutureCementingJobs
Theaveragetypicalpressuretobeencounteredamongtheoperatorssurveyedforfuture cementingjobsduring2010and2011isapproximately6100psiwithreportedpressureranges amongtheoperatorsvaryingfromlessthan500psitoover35,000psi. Theaveragetypicaltemperaturetobeencounteredamongtheoperatorssurveyedforfuture cementingjobsduring2010and2011is194degreesFahrenheit(F)withreportedtemperature rangesamongtheoperatorsvaryingfromlessthan100degreesFtoover500degreesF. Detailsoftheresponsesandadditionalsegmentationofthedataisavailableintheinteractive CDROMdatabase.

ExpectedWellCharacteristicsofFutureProjects
Characteristicsofthewellstobedrilledduringthenexttwoyears(2010and2011)brokenout byholedeviationrangesareshowninthetablebelowandsegmentedbyland,offshoreshelf andoffshoredeepwater.

CHARACTERISTICSOFWELLSTODRILLOVERNEXT2YRSDEVIATIONRANGES DEVIATIONRANGES WELLTYPEIF>60DEGREES 3060 OVER60 HORIZONTAL ERD JTYPE 030DEGREES DEGREES DEGREES LAND 26% 37% 71% 14% 9% 37% OFFSHORESHELF 39% 33% 51% 30% 32% 28% OFFSHOREDEEPWATER 23% 27% 39% 43% 14% 50%
Anywellsplannedtobedrilledwithdeviationsgreaterthan60degreesarealsofurther segmentedbywelltype(eg.horizontalvs.extendedreachvs.Jtype). Theaveragelateralstepoutsreportedamongtheoperatorsforhorizontal,extendedreachand Jtypewellsrangefrom1000feettoover6000feetandareshownbelow.

LATERALSTEPOUTDISTANCESOFHIGHLYDEVIATEDWELLS 1,000to3,000Feet HORIZONTALWELLS EXTENDEDREACHWELLS JTYPEWELLS 37% 19% 22% 3,000to6,000Feet 38% 23% 16% Over6,000Feet 25% 34% 15%

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Approximately25%oftheplannedhorizontalwellsareintendedtohavelateralstepoutsin excessof6,000feetandapproximately34%oftheextendedreachwellsplannedwillbe designedwithaveragelateralstepoutsinexcessof6,000feet. Theshareofwellstouseselectedmudtypesordrillingsystemsisshowninthetablebelow.

SHAREOFWELLSTOUSESELECTEDMUDTYPESORDRILLINGSYSTEMS OILBASEDMUDS 42% PSEUDOOILBASEDMUDS 5% SYNTHETICMUDS 25% WATERBASEDMUDS 56% FORMATEFLUIDS 2% SALTENRICHED/SATURATEDMUDS 7% AIRDRILLINGSYSTEMS 6%

Waterbasedmudsandoilbasedmudsremainthemostwidelyusedmudtypeswhiletheuseof syntheticmudsisreportedtobeusedinapproximately25%oftheplannedwells.

MultiStageCementing
Nearlyhalf(51%)oftheoperatorssurveyedusemultistagecementingwiththeaveragetypical numberofstagesusedperwellreportedas2.51andtheaveragepercentofwellsusingmulti stagecementingreportedas17%.Thetablebelowbreaksouttheuseofmultistagecementby varioussubsegments.

SHAREOFOPERATORSUSINGMULTISTAGECEMENTING/SHAREOFWELLSTOUSE %OFWELLSTO TYPICALNUMBEROF %OPERATORSUSING USE STAGESPERWELL TOTALSAMPLE 17% 2.51 51% LANDSAMPLE 20% 2.41 55% TOTALOFFSHORE 14% 2.67 45% GoM 20% 14% 3.00 USLAND 64% 21% 2.70 INTERNATIONAL 44% 16% 2.56
27%oftheoperatorsbelievethatmultistagetoolsareproblematicandthatthemostcommon problemsinvolvetoolmalfunctionandleaking.
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Standardizedvs.CustomizedApproachtoCementingJobs
Approximately1in4oftheoperators(29%)statedthattheyliketocustomizethedesignof theircementingjobsinordertoimproveefficienciesorreceivesomeotherbenefit.38%ofthe operatorsstatedthattheytendtofollowastandardizedapproachtocementingdesignandthe balanceoftheoperatorsstatedthattheyusebothapproaches(standardapproachandsome customizedapproaches).Mostoften,operatorsfeltthatHP/HT,deepwater,horizontaland othercomplexsituationswarrantedtheuseandconsiderationofcustomizedcementing designs.

TOTALSAMPLE LANDSAMPLE TOTALOFFSHORE

STANDARDIZEDAPPROACH 38% 40% 35%

LIKETOCUSTOMIZE 29% 22% 36%

BOTH 33% 37% 27%

Nearlytwothirdsoftheoperators(69%)statedthattheywouldbewillingtoinvestmoreona cementingjobleveragingcustomized,stateofthearttechnologyifaclearbenefitcouldbe demonstratedandtheaverageincreaseininvestmentamongtheoperatorswas29.5%.

ShareofWellswithIsolationChallenges
76%oftheoperatorsstatedthattheyhadexperiencedisolationchallengessuchasannular casingpressureorsurfacecasingventflowandthatonaveragethisproblemwasexperienced withapproximately30%oftheirwells.Deepwaterwellshadthehighestreportedincidenceat 42%.Thevariancesinresponsetoisolationchallengesareshownbelowinthetableand brokenoutintovarioussubsegments.

SHAREOFOPERATORSWITHISOLATIONCHALLENGES/SHAREOFWELLS %OPERATORSWITHISOLATION %WELLSWITHISOLATION CHALLENGES CHALLENGES TOTALSAMPLE 30% 76% LANDSAMPLE 28% 75% OFFSHORESHELF 29% 80% OFFSHOREDEEPWATER 76% 42% NORTHAMERICA 72% 26% INTERNATIONAL 78% 33%
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CementBondLogAnalysesandUseofComputerDesignSimulation
Approximatelyhalf(51%)ofthecementingjobsrunacementbondlog/cementevaluation analysis.Thehighestreporteduseisonlandandoffshoreshelfwellsbothat64%andthe lowestreportedusageiswithdeepwaterwellsat41%.Approximately20%ofprimarycement jobsdonotmeetexpectationsoftheoperatorandapproximately25%ofremedialcementjobs donotmeetexpectationsoftheoperator.
SHAREOFWELLSRUNNINGCEMENTBONDLOGANALYSES/WELLSNOTMEETINGEXPECTATIONS
%JOBSRUNNING CEMENTBONDLOG %PRIMARYCEMENTINGJOBS NOTMEETINGEXPECTATIONS %REMEDIALCEMENTINGJOBS NOTMEETINGEXPECTATIONS

TOTALSAMPLE LANDSAMPLE OFFSHORESHELF OFFSHOREDEEPWATER NORTHAMERICA INTERNATIONAL

51% 64% 64% 41% 56% 50%

20% 22% 17% 16% 20% 19%

25% 26% 24% 27% 21% 27%

90%oftheoperatorsstatedthattheyhaveusedcomputerdesignsimulationtodesignand evaluatetheircementjobsandthatthesimulationsoftwareisusedonaveragewith approximately25%oftheircementjobs.


COMPUTERDESIGNSIMULATIONANDEVALUATION
%OPERATORSUSING %JOBSUSING

TOTALSAMPLE LANDSAMPLE OFFSHORESHELF OFFSHOREDEEPWATER NORTHAMERICA INTERNATIONAL

90% 84% 96% 97% 82% 95%

25% 26% 24% 27% 21% 27%

Technologies&ApplicationsMostNeedingAdditionalInvestmentand Development
Therespondentswereaskedtoratetheimportanceofaseriesof8specificdrillingand completionenvironmentsand9cementingequipmentandserviceareasthattheybelieved neededadditionalresearchanddevelopmentinordertomeetfuturecementingneeds comparedwithcurrenttechnologyavailableinthisfield.Therespondentswereaskedtousea scaleof1to10wherebyaratingof9or10indicatedthattheybelievedthose
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technologies/applicationswerethehighestpriorityorthosewiththemostcriticalneedfornew improvedtechnology.Theobjectiveofthissectionistohelpprovideguidancetothe technologyservicesuppliersastowheretobestallocatehumanandfinancialcapitaltowards thedevelopmentofnewtechnologytoassisttheindustryinimprovingcementingcapabilities. ManagedPressureDrilling,HP/HTenvironments,DeepwatercementingandHorizontalwells werethetop4drillingandcompletionenvironmentsreceivingthehighestpercentageof9and 10ratingsamongthe8drillingandcompletionenvironmentsinvestigated. Selfhealing/swellablecement,consistentproductperformanceandwellclean out/spacers/displacementwerethetop3cementingequipmentandservicesreceivingthe highestpercentageof9and10ratingsamongthe9categoriesinvestigated.

R&DURGENCYREGARDINGSPECIFICDRILLING&COMPLETIONENVIRONMENTS RATINGSDISTRIBUTION AVERAGE 9or10 7or8 6orLower RATING MPDORUNDERBALANCEDWELLS 46% 42% 6.62 12% HP/HTENVIRONMENTS(>15KPsi/>350F) 42% 41% 6.48 17% DEEPWATERCEMENTING 40% 43% 6.34 17% HORIZONTALWELLS 14% 41% 45% 6.31 EXTENDEDREACHWELLS 9% 37% 54% 6.00 GEOTHERMALCEMENTING 10% 28% 62% 5.51 SHALECEMENTING 5% 26% 69% 5.17 COALBEDMETHANECEMENTING 3% 25% 72% 4.88

R&DURGENCYREGARDINGSPECIFICCEMENTINGEQUIPMENT&SERVICES RATINGSDISTRIBUTION 9or10 7or8 6orLower SELFHEALING/SWELLABLECEMENT 40% 44% 16% CONSISTENTPRODUCTPERFORMANCE 37% 46% 17% WELLCLEANOUT/SPACERS&DISPLACEMENT 38% 51% 11% CORROSIVERESISTANTCEMENT 33% 60% 7% SPECIALTYADDITIVES 4% 33% 63% CEMENTINGHEADTECHNOLOGY 9% 28% 63% CASINGEQUIPMENT 6% 32% 62% HIGHHORSEPOWERCEMENTINGUNITS 5% 26% 69% INCREASEDPUMPRATES 5% 27% 68% AVERAGE RATING 6.51 6.25 5.97 5.57 5.44 5.43 5.21 4.97 4.94

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CementingServiceSuppliers
Inanefforttobetterunderstandhowoperatorsviewsuppliersofcementingservices, respondentswereaskediftheytendedtoagreeordisagreewithselectedstatementsto determinetheirstanceonquality,contractingandpricingissues.

Cementingisacommodity;Iseenoneedtopayforpremiumquality
TOTALSAMPLE MAJORS LARGEINDEPENDENTS MEDIUM/SMALLINDEPENDENTS NOC'S LAND OFFSHORESHELF OFFSHOREDEEPWATER NORTHAMERICA INTERNATIONAL NETAGREEMENT 30% 19% 34% 35% 33% 28% 33% 25% 28% 31% NETDISAGREEMENT 54% 68% 51% 43% 52% 55% 50% 61% 55% 53% OVERALL+/ 24% 49% 17% 8% 19% 27% 17% 36% 27% 22%

Pricebuyerswereoutnumberedoverallbynearlya2to1ratiowiththehighestvariance occurringwiththeMajorswholargelybelievedthatcementingserviceswerenotacommodity.

Igetthesamequalitycementingjobfromallthesuppliersinmyarea
TOTALSAMPLE MAJORS LARGEINDEPENDENTS MEDIUM/SMALLINDEPENDENTS NOC'S LAND OFFSHORESHELF OFFSHOREDEEPWATER NORTHAMERICA INTERNATIONAL NETAGREEMENT 24% 19% 23% 25% 33% 26% 17% 31% 26% 24% NETDISAGREEMENT 64% 66% 70% 65% 48% 63% 67% 61% 69% 60% OVERALL+/ 40% 47% 47% 40% 15% 37% 50% 30% 43% 36%

Again,operatorswerefairlyuniformintheirviewthatdistinctionsinjobperformanceexist betweencementingsuppliersbynearlya3to1ratio.
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IprefertoworkwitharepthatIhavealongstandingrelationshipwith
TOTALSAMPLE MAJORS LARGEINDEPENDENTS MEDIUM/SMALLINDEPENDENTS NOC'S LAND OFFSHORESHELF OFFSHOREDEEPWATER NORTHAMERICA INTERNATIONAL NETAGREEMENT 71% 76% 67% 66% 74% 73% 70% 80% 72% 70% NETDISAGREEMENT 12% 10% 9% 20% 14% 13% 10% 9% 12% 13% OVERALL+/ 59% 66% 58% 46% 60% 60% 60% 71% 60% 57%

Whilerelationalbasedsellinghasbeenpresentintheoilfieldformany,manyyears,there appearstobeastrongrecognitionamongtheoperatorsregardingthevalueoftherelationship betweenthecementingsuppliersandoperators.Thisrelationshipismuchhigherthantypically observedinothersegmentsoftheoilfieldservicessectorinwhichwestudy.

Theadditionalcosttoensuretheholeisproperlypreparedandconditioned priortocementingisjustifiable
TOTALSAMPLE MAJORS LARGEINDEPENDENTS MEDIUM/SMALLINDEPENDENTS NOC'S LAND OFFSHORESHELF OFFSHOREDEEPWATER NORTHAMERICA INTERNATIONAL NETAGREEMENT 89% 89% 90% 96% 80% 91% 87% 86% 91% 86% NETDISAGREEMENT 7% 5% 7% 4% 15% 7% 8% 9% 6% 10% OVERALL+/ 82% 84% 83% 92% 65% 84% 79% 77% 85% 76%

Mostalloperatorsagreethattheinvestmenttoproperlyprepareandconditiontheholeprior tocementingisjustifiableandmakesgoodsense.

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SupplierAssociationsonSelectedCementingApplicationsorWellConditions
Respondentswereaskedtoidentifywhichsupplierstheyconsideredtobetheindustryleader foraseriesoftwelvecementingapplicationsorwellconditions.Thedifferencesinassociation ofthevariouscementingservicesuppliersonthetwelvecementingapplicationsareshownin thetablebelow.

PERCEIVEDLEADERFORSELECTEDAPPLICATIONORWELLCONDITIONS
HALLIBURTON SCHLUMBERGER HP/HTCEMENTING DEEPWATERCEMENTING HORIZONTALCEMENTING SELFHEALING/SWELLABLECEMENT LOWDENSITY/ULTRAFINECEMENTS CORROSIVERESISTANTSLURRIES CEMENTINGTOOLS CEMENTINGSOFTWARETECHNOLOGY CEMENTMIXING/PUMPINGEQUIPMENT FOAMEDCEMENTING SHALECEMENTING GEOTHERMALCEMENTING 51% 32% 50% 35% 41% 38% 61% 43% 54% 42% 32% 28% 25% 19% 28% 29% 39% 22% 18% 42% 27% 14% 15% 12% BJ SERVICES 11% 7% 15% 10% 16% 6% 11% 9% 18% 15% 14% 9% ALL OTHER 5% 5% 6% 3% 5% 7% 6% 5% 8% 3% 9% 4% NA/DK 19% 44% 16% 33% 14% 39% 9% 14% 12% 34% 45% 55%

Halliburtonledinmostcategorieswiththeexceptionofselfhealing/swellablecement,low density/ultrafinecementandsoftwaretechnologywherebySchlumbergergenerated responsessimilarorequaltothatofHalliburton.


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SupplierAssociationsonSelectedImageandPerformanceFactors
Respondentswereagainaskedtoidentifywhichsupplierstheymostcloselyassociatedwitha seriesoffourteencustomerserviceandimagefactors.Thedifferencesinpreferenceand associationofthevariouscementingservicesuppliersonthefourteencustomerserviceand imagecriteriaareshowninthetablebelow.

HALLIBURTON Workstofindnewsolutionstosavemy companytimeandmoney Bestforintegratedsolutions Lowestcostprovider Costsmore,butworthit Understandstheneedsofmylocal market Respondsquicklytomycall Mostreliablecementingequipment Exhibitstechnologyleadership Besttechnicalsupport Bestoverallfieldpersonnel BestHSEprogramsandrecord Mostconsistentproduct Mosttrustednameinthecementing field Cementingproductsavailablethatcan meetabroadrangeofneeds
48% 46% 26% 40% 52% 55% 55% 42% 54% 50% 43% 52% 65% 65%

SCHLUMBERGER
30% 42% 13% 31% 23% 33% 33% 51% 40% 30% 45% 34% 29% 50%

BJSERVICES
22% 14% 34% 7% 27% 24% 21% 11% 16% 16% 18% 19% 16% 28%

Again,HalliburtonledinmostcategoriesfollowedbySchlumbergerandBJServiceswiththe exceptionoflowcostproviderwherebyBJServicesledinthiscategory.

CustomerPerceptionsofSuppliersStrengthsandWeaknesses
Additionalanalysisofthesupplierassociationsonthesefourteenimageandperformance factorsnormalizedbasedonsuppliermarketpenetrationhelptoquicklyrevealcustomers perceptionsofeachsuppliersstrengthsandweaknesses.Thisanalysisisshowninthetable belowandhighlightsthemagnitudeofeachsuppliersstrengthorweaknessrelativetothe suppliersmarketpenetrationandgaugedagainstthemarketbaselineorbenchmark.

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HALLIBURTON Workstofindnewsolutionstosavemy companytimeandmoney Bestforintegratedsolutions Lowestcostprovider Costsmore,butworthit Understandstheneedsofmylocal market Respondsquicklytomycall Mostreliablecementingequipment Exhibitstechnologyleadership Besttechnicalsupport Bestoverallfieldpersonnel BestHSEprogramsandrecord Mostconsistentproduct Mosttrustednameinthecementing field
21% 17% 19% 36% 27% 24% 29% 5% 27% 35% 3% 27% 56%

SCHLUMBERGER
10% 27% 52% 26% 33% 11% 8% 51% 12% 4% 28% 1% 17%

BJSERVICES
11% 43% 70% 62% 6% 13% 21% 56% 40% 31% 31% 26% 39%

SupplierPenetrationforCementingServicesPurchasedPast2Years
Overall,buyersofcementingservicesinthepast2yearsuseapproximately2.09suppliers. Halliburtonledinoverallmarketpenetrationwith75%oftheoperators/buyerssurveyed statingthattheyhadusedHalliburtoninthepast2yearsfollowedbySchlumbergerat63%and BJServicesat47%. Marketpenetrationvariancesamongthesuppliersduringthepasttwoyearsaremoreeasily seeninthetablebelowandsegmentedbyland,offshoreshelf,offshoredeepwater,company typeandgeographicregion.
SUPPLIERSUSEDPAST2YEARS HALLIBURTON SCHLUMBERGER 63% 75% 67% 74% 59% 73% 60% 82% 71% 72% 59% 77% 69% 71% 70% 75% BJSERVICES 47% 53% 43% 47% 44% 49% 43% 50% ALLOTHERS 24% 23% 21% 30% 50% 37% 25% 9%

TOTALSAMPLE MAJORS LARGEINDEPENDENTS MED/SMALLINDEPENDENTS NOC'S LAND OFFSHORESHELF OFFSHOREDEEPWATER

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SUPPLIERSUSEDPAST2YEARSBYWESTERNHEMISPHERE BJSERVICES HALLIBURTON SCHLUMBERGER 67% 53% 80% 62% 50% 82% 44% 61% 72% 64% 60% 71%

ALLOTHERS 27% 62% 20%

GULFOFMEXICO USLAND CANADA LATINAMERICA

SUPPLIERSUSEDPAST2YEARSBYEASTERNHEMISPHERE BJSERVICES HALLIBURTON SCHLUMBERGER 84% 28% 81% 80% 46% 74% 72% 45% 83% 58% 48% 62% ALLOTHERS 19% 9% 8% 25%

NORTHSEA WESTAFRICA MIDDLEEAST ASIAPACIFIC

AVERAGENUMBEROFSUPPLIERSUSED TOTALSAMPLE 2.09 MAJORS 2.17 LARGEINDEPENDENTS 1.96 MED/SMALLINDEPENDENTS 2.19 NOC'S 2.37 LAND 2.22 OFFSHORESHELF 2.07 OFFSHOREDEEPWATER 2.04 GULFOFMEXICO 2.00 USLAND 2.21 CANADA 2.39 LATINAMERICA 2.15 NORTHSEA/EUROPE 2.12 WESTAFRICA 2.09 MIDDLEEAST/NORTHAFRICA 2.38 ASIAPACIFIC 1.93

NOCstendtousethemostsuppliersamongtheoperatorsat2.37.

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SupplierEstimatedMarketShareforCementingServicesPurchasedPast2 Years
Respondentswereaskedwhatpercentoftheircementingbusinesswenttoeachsupplierin termsofdollarsspentduringthepasttwoyearsandtheresultingestimatedmarketsharesby supplieroverthepasttwoyearsareshowninthetablesbelowandbrokenoutbyland,shelf, deepwater,NorthAmericaandinternationalmarketsegments.
ESTIMATEDMARKETSHARESPURCHASESPAST2YEARS BJSERVICES HALLIBURTON SCHLUMBERGER TOTALSAMPLE 30% 17% 41% LAND 25% 19% 42% OFFSHORESHELF 35% 15% 39% OFFSHOREDEEPWATER 36% 23% 38% NORTHAMERICA 26% 19% 42% INTERNATIONAL 34% 17% 40% ALLOTHERS 12% 14% 11% 3% 13% 9%

Halliburtonleadsoverallmarketshareat41%followedbySchlumbergerat30%andBJServices at17%.HalliburtonholdsastrongleadinlandmarketshareandparticularlyinNorthAmerica. Schlumbergersstrongestpresenceisintheoffshoremarkets(bothshelfanddeepwater). Thetablebelowillustrateshowthecompaniescompareonmarketpenetration,marketshare andtheirshare/penetrationratiosforcementingservicepurchasesduringthepast2years.


2010Penetration 75% 63% 47% 2010MarketShare 41% 30% 17% 2010S/PRatio 54.7 47.6 36.2

HALLIBURTON SCHLUMBERGER BJSERVICES

Share/Penetrationratiosareusedtoshowhowmuchofatypicalcustomersbusinessa supplierisgettingandhowmuchisgoingelsewhere.Overall,asmentionedearlier,operators areusingapproximately2.09suppliersforcementingservicepurchasesinthepast2years.If operatorsareusingonaverage2.09suppliers,anaverageshare/penetrationratiowouldequal 47.9(100/2.09).Anysupplierabovethisisgettingmorethanhisfairshareofhisexisting customersbusinessandbelow47.9indicatesasuppliershouldfocussomeeffortsongettinga largershareofhiscurrentcustomersbusiness.HalliburtonandSchlumbergerbothexhibit solidS/Pratiossuggestingthattheyarereceivingtheirfairshareoftheirtypicalcustomers businessoverall.BJServicesS/PratiosindicateanopportunityforBJServicestogrowtheir businessbyobtainingalargerpercentageoftheirexistingcustomersbusinessparticularlyin theoffshoreshelfandlandsegments.
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SupplierEstimatedCustomerRetentionRates
Halliburtonwasselectedby47%oftherespondentssurveyedfortheirmostrecentcementing servicejobandSchlumbergerwasselectedby31%oftherespondentsfortheirmostrecent cementingjobfollowedbyBJServicesat20%.Thetablebelowbreaksoutingreaterdetailhow supplierswereawardedtheoperatorsmostrecentcementingjobbyland,offshoreshelfand offshoredeepwatermarketsegments.
SUPPLIERAWARDEDMOSTRECENTJOB HALLIBURTON SCHLUMBERGER 31% 47% 25% 48% 36% 46% 42% 44% BJSERVICES 20% 24% 15% 19% ALLOTHERS 10% 10% 11% 3%

TOTALSAMPLE LAND OFFSHORESHELF OFFSHOREDEEPWATER

Overall,operatorscitedprice/contractasthedecidingfactorintheselectionoftheirmost recentcementingsupplier.Thetablebelowoutlinesthereasonsforselectingeachofthe respectivecementingsuppliersfortheirmostrecentjob.


REASONSFORSUPPLIERAWARDEDMOSTRECENTJOB PRICE/ EQUIPMENT SERVICE/ AVAILABILITY CONTRACT QUALITY PERSONNEL 48% 15% 14% 16% 57% 14% 16% 20% 71% 8% 4% 10% TRACK RECORD 10% 12% 10% TECHNICAL CONCERNS 5% 6% 2%

HALLIBURTON SCHLUMBERGER BJSERVICES

Halliburtonledthemarketwiththehighestestimatedcustomerretentionrates(percentof recentorderswonbyeachsupplierdividedbythepenetrationrate)at63%followedby Schlumbergerat49%andBJServicesat43%.Schlumberger,however,tiedHalliburtons customerretentionrateforthedeepwaterat60%and59%respectively.Detailsofthe customerretentionratesareinthetablebelow.


RETENTIONRATESFORSELECTEDCEMENTINGSUPPLIERS BJSERVICES HALLIBURTON SCHLUMBERGER TOTALSAMPLE 49% 43% 63% LAND 42% 49% 62% OFFSHORESHELF 52% 35% 65% OFFSHOREDEEPWATER 60% 38% 59%


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CompetitiveLandscapeCementingServiceSuppliers
Regardlessofhowtheleadingsuppliersforcementingservicesandequipmentcomparewith othersortheweightingofthefactorsofimportance(asprovidedinthegraphicexhibits)hereis howeachofthecompanieslookwithregardtotheirstrongestandweakestratingsfrom14 variousevaluation/selectioncriteria.(Relativeimportanceofeachfactorinparentheses, Factorsintophalfforimportanceareinboldtext).

HALLIBURTON
StrongestRatings
Reliabilityandqualityofequipment(1) CommitmenttoHSEpolicies(T4) Consistentproductquality(3) Trackrecord/Pastfavorableexperience(6)

WeakestRatings
Pricecompetitiveness(9) Differentiatingtechnology(13) Highhorsepowercementingequipment(14) Responsivetoneeds(10)

SCHLUMBERGER
StrongestRatings
CommitmenttoHSEpolicies(T4) Abilitytohandletechnicalchallenges(8) Consistentproductquality(3) Reliabilityandqualityofequipment(1)

WeakestRatings
Pricecompetitiveness(9) Differentiatingtechnology(13) Highhorsepowercementingequipment(14) Availabilityofequipment&crews(T4)

BJSERVICES
StrongestRatings
CommitmenttoHSEpolicies(T4) Consistentproductquality(3) Trackrecord/Pastfavorableexperience(6) Reliabilityandqualityofequipment(1)

WeakestRatings
Differentiatingtechnology(13) Modelingsoftware(12) Abilitytohandletechnicalchallenges(8) Highlytrained&capablefieldpersonnel(2)


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Supplierrankingsonperformanceandimagecriteriaforcementingservicesuppliersareinthe tablesbelowandbrokenintoseveralsubsegmentstohighlightvariancesbycustomer segment.Performanceandimagefactorsonthetablearelistedinorderofstatedimportance.


TOTALSAMPLE
ReliabilityAndQualityOfEquipment HighlyTrained&CapableFieldPersonnel ConsistentProductQuality AvailabilityOfEquipment&Crews CommitmentToHSEPolicies TrackRecord/PastFavorableExperience OverallTechnicalSupport&Service AblilityToHandleTechnicalChallenges PriceCompetitiveness ResponsiveToNeeds LocalLabServices ModelingSoftware DifferentiatingTechnology HighHorsepowerCementingEquipment

Halliburton
1 1 1 1 2 1 1 2 2 1 1 T1 2 T1

Schlumberger
2 2 2 2 1 2 2 1 3 2 2 T1 1 T1

BJServices
3 3 3 3 3 3 3 3 1 3 3 3 3 3

LANDSAMPLE
ReliabilityAndQualityOfEquipment HighlyTrained&CapableFieldPersonnel ConsistentProductQuality AvailabilityOfEquipment&Crews CommitmentToHSEPolicies TrackRecord/PastFavorableExperience ResponsiveToNeeds AblilityToHandleTechnicalChallenges PriceCompetitiveness OverallTechnicalSupport&Service LocalLabServices ModelingSoftware HighHorsepowerCementingEquipment DifferentiatingTechnology

Halliburton
1 1 1 1 2 1 2 2 1 1 1 1 1 1

Schlumberger
2 2 2 2 1 2 1 1 3 2 2 2 3 2

BJServices
3 3 3 3 3 3 3 3 2 3 3 3 2 3

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OFFSHORESHELF
ConsistentProductQuality ReliabilityAndQualityOfEquipment HighlyTrained&CapableFieldPersonnel OverallTechnicalSupport&Service CommitmentToHSEPolicies TrackRecord/PastFavorableExperience AblilityToHandleTechnicalChallenges AvailabilityOfEquipment&Crews LocalLabServices ResponsiveToNeeds PriceCompetitiveness ModelingSoftware DifferentiatingTechnology HighHorsepowerCementingEquipment

Halliburton
1 2 2 1 2 2 2 1 1 1 2 2 2 2

Schlumberger
2 1 1 2 1 1 1 2 2 3 3 1 1 1

BJServices
3 3 3 3 3 3 3 3 3 2 1 3 3 3

OFFSHOREDEEPWATER
HighlyTrained&CapableFieldPersonnel ReliabilityAndQualityOfEquipment CommitmentToHSEPolicies AvailabilityOfEquipment&Crews ConsistentProductQuality PriceCompetitiveness AblilityToHandleTechnicalChallenges OverallTechnicalSupport&Service TrackRecord/PastFavorableExperience LocalLabServices ResponsiveToNeeds HighHorsepowerCementingEquipment ModelingSoftware DifferentiatingTechnology

Halliburton
1 1 1 1 1 1 2 2 1 3 2 1 1 1

Schlumberger
2 2 2 3 2 3 1 1 2 1 1 3 2 2

BJServices
3 3 3 2 3 2 3 3 3 2 3 2 3 3

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NORTHAMERICA
HighlyTrained&CapableFieldPersonnel ReliabilityAndQualityOfEquipment ConsistentProductQuality AvailabilityOfEquipment&Crews TrackRecord/PastFavorableExperience ResponsiveToNeeds CommitmentToHSEPolicies AblilityToHandleTechnicalChallenges PriceCompetitiveness OverallTechnicalSupport&Service LocalLabServices DifferentiatingTechnology ModelingSoftware HighHorsepowerCementingEquipment

Halliburton
1 1 1 1 2 2 2 1 2 1 2 1 1 2

Schlumberger
3 3 3 3 3 3 1 2 3 3 3 3 2 3

BJServices
2 2 2 2 1 1 3 3 1 2 1 2 3 1

INTERNATIONAL
ReliabilityAndQualityOfEquipment ConsistentProductQuality HighlyTrained&CapableFieldPersonnel TrackRecord/PastFavorableExperience OverallTechnicalSupport&Service AvailabilityOfEquipment&Crews AblilityToHandleTechnicalChallenges HighHorsepowerCementingEquipment CommitmentToHSEPolicies PriceCompetitiveness ResponsiveToNeeds ModelingSoftware LocalLabServices DifferentiatingTechnology

Halliburton
1 1 1 1 1 1 2 2 2 1 1 2 1 2

Schlumberger
2 2 2 2 2 2 1 1 1 3 2 1 2 1

BJServices
3 3 3 3 3 3 3 3 3 2 3 3 3 3


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Itisimportanttonotethatthetop4buyingfactorsonastatedbasis(reliability/qualityof equipment,trained&capablefieldpersonnel,consistentproductqualityandavailabilityof equipmentandcrews)allexhibitasignificantgapbetweentheoperatorsstatedimportanceof thatspecificselectionfactorandthesupplierratedperformanceonthosespecificfactors.This indicatesthatregardlessofeachsuppliersperformanceratingsontheseselectionfactors, suppliersneedtoimprovetheirperformancetomeettheoperatorsperformanceexpectations andneeds.Improvementintheseareaswilltranslateintoimprovedfinancialperformanceand higheroverallcustomervaluealongwithclosingthedoorforpotentialnewentrantstoenter themarketandsatisfytheseneeds. Wealsocapturedinthissurveythetoptiebreakingbuyingfactorallthingsbeingequal betweencementingservicesuppliersintermsofcost.Thiswasanunaided,openended questiondesignedtocapturetopofmindresponsesfromtheoperators.Withallthingsbeing equalintermsofcost,buyersofcementingservicescitedthatthequalityoffieldpersonneland overallservicequalitywasthemostimportantfactordrivingtheirdecisiontoselectone cementingservicessupplieroveranothercementingservicessupplier(citedby46%ofthe respondents)followedbyreliability/qualityofequipment(citedby23%oftherespondents) andavailability/delivery(citedby11%oftherespondents).Suppliersviewedasbeingthebest onthetoptwotiebreakingbuyingfactorsandneedingthemostimprovementonthese factorsaredetailedbelow.
PERSONNEL/SERVICEQUALITY BEST HALLIBURTON SCHLUMBERGER BJSERVICES ALLOTHERS 47% 34% 12% 7% NEEDTOIMPROVE 20% 29% 25% 10% EQUIPMENTQUALITY BEST 45% 45% 12% 3% NEEDTO IMPROVE 17% 21% 29% 6%


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NetPromoterAnalysis
CalculationsfortheNetPromoterScorearebasedononequestion;Howlikelywouldyoube torecommendthiscompanytoafriendorcolleague?andisdeterminedbysubtractingthe percentageofPromotersfromthepercentageofDetractors.Promotersarerespondents givingarecommendationratingof9or10,Passivesarethosegivingratingsof7or8and Detractorsarethoseratingacompany6orlower.Activepromotersareoneofthebestand cheapestformsofmarketingcommunicationsandessentiallyserveasanextensionofthesales team.Detractorscannegativelyimpactyourimageandyourabilitytogainand/orretainnew business.ItisalsoimportanttokeepthePassivesinmindasthisgroupcanbeswayedinto eithercampovertime.TheNetPromoterScoreisanimportantmetrictomeasureandtrack overtimebecauseithasbeendeterminedviaresearchtodemonstrateaclosercorrelationto businessperformancethanthatofcustomersatisfaction. Thetablebelowshows1.)Numberofrespondentsprovidingratingsforeachcompany2.) PercentageofrespondentsclassifiedasPromoters,PassivesandDetractorsand3.)Net Promoter(PromotersminusDetractors).

TotalLand
BJSERVICES HALLIBURTON SCHLUMBERGER

#Responses 53 88 62 #Responses 51 80 76 #Responses 36 61 56 #Responses 15 19 20

Promoters (9or10) 28% 48% 34% Promoters (9or10) 26% 49% 46% Promoters (9or10) 30% 53% 43% Promoters (9or10) 13% 37% 55%

Passives Detractors (7or8) (6orLower) 38% 34% 41% 11% 48% 18% Passives Detractors (7or8) (6orLower) 56% 18% 42% 9% 41% 13% Passives Detractors (7or8) (6orLower) 59% 11% 42% 5% 44% 13% Passives Detractors (7or8) (6orLower) 54% 34% 42% 21% 30% 15%

2010Net Promoters 6% 37% 16% 2010Net Promoters 8% 40% 33% 2010Net Promoters 19% 48% 30% 2010Net Promoters 21% 16% 40%

TotalOffshore
BJSERVICES HALLIBURTON SCHLUMBERGER

OffshoreShelf
BJSERVICES HALLIBURTON SCHLUMBERGER

OffshoreDeepwater
BJSERVICES HALLIBURTON SCHLUMBERGER

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GulfOfMexico
BJSERVICES HALLIBURTON SCHLUMBERGER #Responses 10 11 10 #Responses 34 61 38 #Responses 51 74 49 #Responses 58 104 99 #Responses 54 99 95 #Responses 57 83 58 Promoters (9or10) 30% 45% 50% Promoters (9or10) 27% 55% 36% Promoters (9or10) 35% 58% 40% Promoters (9or10) 19% 46% 41% Promoters (9or10) 16% 44% 40% Promoters (9or10) 36% 55% 45% Passives Detractors(6 orLower) (7or8) 40% 30% 37% 18% 40% 10% Passives Detractors(6 orLower) (7or8) 38% 35% 32% 13% 42% 22% Passives Detractors(6 orLower) (7or8) 35% 30% 30% 12% 43% 17% Passives Detractors(6 (7or8) orLower) 57% 24% 45% 9% 43% 16% Passives Detractors(6 (7or8) orLower) 58% 26% 47% 9% 43% 17% Passives Detractors(6 (7or8) orLower) 36% 28% 33% 12% 37% 18% 2010Net Promoters 0% 27% 40% 2010Net Promoters 8% 42% 14% 2010Net Promoters 5% 46% 23% 2010Net Promoters 5% 37% 25% 2010Net Promoters 10% 35% 23% 2010Net Promoters 8% 43% 27%

USLand
BJSERVICES HALLIBURTON SCHLUMBERGER

NorthAmerica
BJSERVICES HALLIBURTON SCHLUMBERGER

International
BJSERVICES HALLIBURTON SCHLUMBERGER

EasternHemisphere
BJSERVICES HALLIBURTON SCHLUMBERGER

WesternHemisphere
BJSERVICES HALLIBURTON SCHLUMBERGER

Overall,HalliburtonledthemarketwiththehighestNetPromoterScoreof39%.Halliburtons NetPromoterScorewashighestintheoffshoreshelfandU.S.Landmarketsandlowestinthe offshoredeepwater.Conversely,SchlumbergershighestNetPromoterScorewasinthe offshoredeepwaterwithascoreof40%.BJServiceshighestNetPromoterScorewasinthe offshoreshelfwithascoreof19%.


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Statedimportanceweightsversuscorrelationtolikelytorecommend The following matrix shows the correlation factors (an indication of derived importance) vs. the stated weights for all measured attributes (study questions). The four quadrants of the matrix show how various factors play in the customers supplier selection decision process. Thesefourquadrantsaredefinedas:

A. Baseline Requirements These attributes have a high stated importance but a low correlation to customers likelihood to recommend a supplier. They tend to be critical factors that would cause severe problems for asupplier that does not performadequately on them. Howeversince they do not correlate strongly to likelihood to recommend a supplier, the customer needs on these factors are probably being metbymostvendors.Thereforeadequateperformanceonthesefactorsisexpectedandnosupplierin thecurrentmarketisprovidingsomethingthatisfarsuperiortoothers.Thesteeringwheelinyourcaris goodexampleofabaselinerequirement.Youwouldntbuyacarwithoutone,butsincemostcarshavean adequatesteeringwheelitprobablydoesntaffectyourchoiceofacar. B. ConsciousDifferentiatorsTheseattributeshavebothahighstatedimportanceandahighcorrelationto customerslikelihoodtorecommendasupplier.Thereforesuperiorperformanceonthesefactorsislikelyto helpyoudifferentiatethevalueofyourproductsandservicesfromthecompetition. C. Latent Differentiators These attributes have a low stated importance but a high correlation to customerslikelihoodtorecommendasupplier.Thereforesuperiorperformanceonthesefactorsislikelyto helpyoudifferentiatethevalueofyourproductsandservicesfromthecompetitionbutcustomersmaynot be overtly aware of the importance of this factor. An example of a latent differentiator is the prestige associatedwiththebrandofautomobilepurchased.Carbuyersusuallydontsaytheprestigeofthebrand isimportantbuttheperceivedprestigeusuallycorrelatesstronglytooverallpreference. D. Low Impact These attributes have both a low stated importance and a low correlation to customers likelihoodto recommendasupplier.Thereforeanyworktoimprovethesefactorsislikelytohavealow impactoncustomerperceivedvalueofyourproductsandservices.

ThematrixbelowidentifiestheBaselinerequirements,Conscious&Latentdifferentiatorsand Lowimpactattributesforcementingservicesuppliersandisplottedagainsttheselected suppliersperformanceversustheircompetitors(+/%)oneachattribute.Theindividual attributesrankinginstatedimportanceisinparentheses.

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ATTRIBUTESCEMENTINGSERVICES
BaselineRequirement Availabilityofequipment&crews(4) CommitmenttoHSE(5) PriceCompetitiveness(9) ConsciousDifferentiator Reliabilityandqualityofequipment(1) Highlytrained&capablefieldpersonnel(2) Consistentproductquality(3) Trackrecord/Pastfavorableexperience(6) Overalltechnicalsupport&service(7) Ablilitytohandletechnicalchallenges(8) LatentDifferentiator Responsivetoneeds(10) LocalLabservices(11) LowImpact Modelingsoftware(12) Differentiatingtechnology(13) Highhorsepowercementingequipment(14)

SelectedCompany'sPerformacevsCompetitors HALLIBURTON 3 0 1 3 4 2 2 3 2 2 2 4 3 1 SCHLUMBERGER 1 4 4 1 2 1 1 2 5 1 1 4 4 1 BJSERVICES 4 4 3 5 6 4 3 5 8 4 2 8 7 2

WeightingofPricevs.NonPriceFactorsinVendorSelection
Thefollowingquestionwasaskedtoeachrespondenttounderstandthevalueandweightingof priceintheirvendorselectionprocessWhenchoosingasupplierforcementingservices,what percentofyourpurchasedecisionisbasedonthepriceversusnonpricefactors?Thefollowing tableshowshowmuchemphasisisplacedonPricebycompanytypeandselectedmarket segments.

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PERCENTOFDECISIONBASEDONPRICE TOTALSAMPLE 56% LAND 57% OFFSHORESHELF 54% OFFSHOREDEEPWATER 54% MAJORS 54% LARGEINDEPENDENTS 54% MED/SMALLINDEPENDENTS 58% NOCS 60% USLAND 56% GULFOFMEXICO 59% CANADA 62% LATINAMERICA 51% NORTHSEA/EUROPE 55% WESTAFRICA 53% MIDDLEEAST/N.AFRICA 62% ASIAPACIFIC 59%

Theseratingsindicatethat,overall,buyersaresomewhatpricesensitive(approximately56/44), butthereissignificantopportunityforsupplierstodifferentiatethevaluetheydeliverthrough thekeynonpricefactorsthatalmostequallyfactorintotheoperatorsdecisioninselecting suppliers.Thedataalsosupportsthatcementingservicesissomewhatmorepricesensitive thentheupstreamoilfieldservicesindustryaverageof50/50.Inparticular,certainregions suchasMiddleEast/NorthAfrica,CanadaandAsiaPacificaremorepricesensitivethanother marketareasforcementingservices.Withallofthissaid,cementingservicesisnotas commoditizedasotherindustriessuchaspetrochemicalswherebythepricesensitivityis closerto75%to80%leavingverylittleroomforsupplierdifferentiationandvaluecreation. Improvementinperformanceinthetop4selectioncriteriashouldtranslateintoimproved businessperformanceandtheabilitytobestoptimizeP&Lefforts.

ValueMap
Thevaluemapisavisualpictureofthecompetitiveperformanceprofileofhowthecustomers decisionismadeamongseveralcontendingcompanies.Thevaluemapplacesyourcompany andeachoftheselectedcompetitorsonachartbyplottingthemarketperceivedperformance (benefits)score(xaxis)andthemarketperceivedpricescore(yaxis)fromthecompetitive
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performanceprofile.RunningdiagonallyacrossthechartisTheFairValueLinewhichits slopereflectstherelativeweightscustomersplaceoncostsandbenefits.Itisameasureofthe tradeoffscustomersarewillingtomaketoobtainmorebenefitsorlowercostinanoffering.In effect,theFairValueLineisalineatwhichacompetitorwouldneithergainnorlosemarket shareiftheymovedalongit.Theareaaboveandtotheleftofthelineistheareaofinferior value,whereacompanysperformanceistoopoortojustifyitsprice(companiesinthisarea wouldbeexpectedtolosemarketshare).Theareabelowandtotherightofthelineisthe desirableareaofsuperiorvalue,whereperformanceexceedswhatwouldbeexpectedatthe pricecharged.Companiesinthissuperiorareaofthechartshouldbeexpectedtogainmarket share.ThelowerleftportionofthemapisconsideredanEconomyPosition(customers perceivecompaniestobeofferingalowerpricedlowerbenefit)whiletheupperright portionofthemapisconsideredaPremiumPosition(customersperceivecompaniestobe offering,higherpricehigherbenefit).Remember,whatcustomerswantisagoodvalue withvaluebeingdefinedbytheratioofBenefitstoPrices.Anycompanythatmoves significantlytotherightofthefairvaluelinehasthepotentialtooutmaneuvertheir competitorsandgainmarketshare.Understandinghowyourofferingispositionedinthe mindsofcustomerswithinatargetmarketisessentialindevelopingandimplementinga businessstrategytoprofitablygrowyourbusiness.

VENDOR VALUE MAP


-CEMENTING SERVICES______________________________________________________
RELATIVEPERFORMANCE

TOTAL SAMPLE
86

InferiorCompetitive Performance
88 90 92 94 96 98 100 102

SuperiorCompetitive Performance
104 106 108 110 112 114

HigherPrice/PoorerPerformanceHigherPrice/BetterPerformance
86 88 90 92 94 96 98 100

HigherPriced

PremiumOffering

RELATIVEPRICING

BuyingDecision
SCHLUMBERGER

Basedonprice=56% Nonpricefactors=44%
*Slope = Calculated as % of buying decision based on price (Lower angle=More price sensitive)

BJ SERVICES
102 104 106 108 110 112

EconomyOffering

LowerPriced

HALLIBURTON

114

132
LowerPrice/PoorerPerformanceLowerPrice/BetterPerformance

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VENDOR VALUE MAP


-CEMENTING SERVICES______________________________________________________
RELATIVEPERFORMANCE

TOTAL LAND
86

InferiorCompetitive Performance
88 90 92 94 96 98 100 102

SuperiorCompetitive Performance
104 106 108 110 112 114

HigherPrice/PoorerPerformanceHigherPrice/BetterPerformance
86 88 90 92 94 96 98 100 102 104 106 108 110 112

HigherPriced

PremiumOffering

RELATIVEPRICING

BuyingDecision
Basedonprice=57% Nonpricefactors=43%
SCHLUMBERGER BJ SERVICES HALLIBURTON
*Slope = Calculated as % of buying decision based on price (Lower angle=More price sensitive)

EconomyOffering

LowerPriced

114

133
LowerPrice/PoorerPerformanceLowerPrice/BetterPerformance

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VENDOR VALUE MAP


-CEMENTING SERVICES______________________________________________________
RELATIVEPERFORMANCE

TOTAL OFFSHORE
86

InferiorCompetitive Performance
88 90 92 94 96 98 100 102

SuperiorCompetitive Performance
104 106 108 110 112 114

HigherPrice/PoorerPerformanceHigherPrice/BetterPerformance
86 88 90 92

HigherPriced

PremiumOffering

RELATIVEPRICING

SCHLUMBERGER
94 96 98 100 102 104 106 108 110 112

BuyingDecision
Basedonprice=54% Nonpricefactors=46%
*Slope = Calculated as % of buying decision based on price (Lower angle=More price sensitive)

HALLIBURTON

LowerPriced

BJ SERVICES

EconomyOffering

114

134
LowerPrice/PoorerPerformanceLowerPrice/BetterPerformance

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VENDOR VALUE MAP


-CEMENTING SERVICES______________________________________________________
RELATIVEPERFORMANCE

GULF OF MEXICO
76

InferiorCompetitive Performance
80 84 88 92 96 100 104

SuperiorCompetitive Performance
108 112 116 120 124

HigherPrice/PoorerPerformanceHigherPrice/BetterPerformance
76 80 84 88 92 96 100 104

HigherPriced

PremiumOffering

RELATIVEPRICING

SCHLUMBERGER HALLIBURTON

BuyingDecision
Basedonprice=59% Nonpricefactors=41%
*Slope = Calculated as % of buying decision based on price (Lower angle=More price sensitive)

LowerPriced

108 112 116 120

EconomyOffering

124

BJ SERVICES
LowerPrice/PoorerPerformanceLowerPrice/BetterPerformance

135
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VENDOR VALUE MAP


-CEMENTING SERVICES______________________________________________________
RELATIVEPERFORMANCE

US LAND
86

InferiorCompetitive Performance
88 90 92 94 96 98 100 102

SuperiorCompetitive Performance
104 106 108 110 112 114

HigherPrice/PoorerPerformanceHigherPrice/BetterPerformance
86 88 90 92 94 96 98 100

HigherPriced

PremiumOffering

RELATIVEPRICING

BuyingDecision
Basedonprice=56% Nonpricefactors=44%
SCHLUMBERGER
*Slope = Calculated as % of buying decision based on price (Lower angle=More price sensitive)

HALLIBURTON
102 104 106 108 110 112

BJ SERVICES

EconomyOffering

LowerPriced

114

136
LowerPrice/PoorerPerformanceLowerPrice/BetterPerformance

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VENDOR VALUE MAP


-CEMENTING SERVICES______________________________________________________
RELATIVEPERFORMANCE

INTERNATIONAL
86

InferiorCompetitive Performance
88 90 92 94 96 98 100 102

SuperiorCompetitive Performance
104 106 108 110 112 114

HigherPrice/PoorerPerformanceHigherPrice/BetterPerformance
86 88 90 92 94 96 98 100 102 104 106 108 110 112

HigherPriced

PremiumOffering

RELATIVEPRICING

SCHLUMBERGER

BuyingDecision
Basedonprice=55% Nonpricefactors=45%
*Slope = Calculated as % of buying decision based on price (Lower angle=More price sensitive)

BJ SERVICES

HALLIBURTON

EconomyOffering

LowerPriced

114

137
LowerPrice/PoorerPerformanceLowerPrice/BetterPerformance

Welling & Company

CustomerValueIndex
Thecustomervalueindexmeasuresthecustomersperceivedvalueofasupplierrelativetothe perceivedvalueofallsuppliers.Thecomprehensiveindexallowsyoutobenchmarkyourself relativetoyourcompetitionbasedontheperspectivesofyourcustomersandprospects.The customervalueindexisanotherimportantmetrictomeasureandtrackovertimebecauseit hasbeendeterminedviaresearchtodemonstrateaclosercorrelationtobusinessperformance thanthatofcustomersatisfaction.Thehigheryourcustomervalueindex,thegreaterlevelof valuecustomersviewyourofferingsintermsofbenefitsversusprice.Trackingthecustomer valueindexandthenetpromoterscorearetwogoodmetricstomeasureandtrackovertime toguidebusinessperformanceimprovement.Bothmetricshavesupportingempiricalevidence demonstratingtheircorrelationtobusinessperformanceishigherthanthatofcustomer satisfaction.
CUSTOMERVALUEINDICES
HALLIBURTON SCHLUMBERGER BJSERVICES TOTAL 101.91 98.45 99.64 LAND SHELF DEEPWATER 102.42 100.47 105.20 99.25 98.50 94.30 98.32 101.03 100.50 GoM 92.64 90.14 117.22 USLAND 101.35 98.90 99.75 INTERNATIONAL 103.24 98.28 98.48

CopyrightWelling&Company2010.Allrightsreserved.

33

GainersandLosers
Whodoyoufeelisgaininggroundinthismarketandwhodoyouthinkislosingground comparedtotheircompetitors?Theultimateperceptionquestion,assomehavetocometo callit,representsmoreofabeatonthestreetthanafirmmeasurementofasuppliers successinaparticularmarket.Halliburtontakesthetopspotinthissurveywith28%ofthe respondentsstatingtheyaregaininginthemarketasopposedto18%statingtheyarelosing groundinthemarket(net+10%).Schlumbergerfollowedin2ndplacewith22%citinggaining and15%citinglosing(net7%).
Gaining 28% 22% 16% 7% Losing 18% 15% 13% 12% NET+/ 10% 7% 3% 5%

HALLIBURTON SCHLUMBERGER BJSERVICES ALLOTHERS

CementingHardware
NorthAmericanoperatorstendtopurchasetheircementinghardwarefromaspecialtysupplier whereasinternationaloperatorsarealmostevenlysplitonpurchasingtheircementing hardwarefromspecialtysuppliersandbundlingthehardwarewiththecementingservices company.Thetableshowsthevariancesinpurchasingpreferencebyvarioussegments.
BUNDLINGOFCEMENTINGHARDWAREPURCHASES BUNDLEWITHSERVICE PURCHASEFROMSPECIALTY COMPANY SUPPLIER 30% TOTALSAMPLE 44% 74% LAND 35% 41% OFFSHORESHELF 59% OFFSHOREDEEPWATER 47% 50% NORTHAMERICA 32% 72% INTERNATIONAL 52% 53%

CopyrightWelling&Company2010.Allrightsreserved.

34

Weatherfordisthepreferredsupplierforthepurchaseofcementinghardwarewith48%ofthe operatorssurveyedcitingWeatherfordastheirpreferredsupplier.Halliburtonwas2ndat23% followedbySchlumbergerandDavisLynchbothat8%.


PREFERREDSUPPLIERFORCEMENTINGHARDWARE
TOTAL WEATHERFORD HALLIBURTON SCHLUMBERGER DAVISLYNCH BJSERVICES ALLOTHERS 48% 23% 8% 8% 3% 8% LAND 53% 21% 4% 11% 1% 11% OFFSHORE 43% 26% 12% 4% 6% 6%

Price/contractagreementwascitedasthekeydriverinfluencingthesupplierselectedforthe purchaseofcementinghardwarefollowedbyequipmentperformance(citedby36%ofthe respondents),equipmentquality(30%),availability/delivery(23%)andspecializedcapabilities (17%).


PRIMARYCONSIDERATIONSINCEMENTINGHARDWARE SUPPLIERSELECTION
PRICE/CONTRACT/AGREEMENT EQUIPMENTPERFORMANCE EQUIPMENTQUALITY AVAILABILITY/DELIVERYPERIOD SPECIALIZEDCAPABILITIES TRACKRECORD/REPUTATION ALLOTHER 57% 36% 30% 23% 17% 10% 9%

SupplierStrengths&Weaknesses
Acompletelistingofsuppliersperceivedstrengthsandweaknessescanbefoundinthe followingsectionofverbatimcomments.
CopyrightWelling&Company2010.Allrightsreserved.

RESPONDENT 3-D Oil & Gas, Winters, TX Abu Dhabi Marine Operating Company, UAE Abu Dhabi National Oil Company, UAE ADCO, UAE Addax Petroleum, Nigeria ADMA, Abu Dhabi Agip, Nigeria Agip, Nigeria Anadarko Petroleum, Indonesia Andes Petroleum, Ecuador Antero Resources, Rifia, CO Apache Khalda, Egypt Apache, Canada Apache, Houston, TX Arena Energy Offshore, The Woodlands, TX ATP Oil & Gas, Houston, TX Baytex Energy, Canada BG Group, Algeria BG Group, Scotland BHP Billiton, Australia Bill Barrett Corporation, Denver, CO BP Norge, Norway BP, Angola BP, Canada BP, Columbia BP, Egypt BP, Houston, TX BP, Indonesia BP, Russia BP, Scotland BPZ, Peru Britannia Operator Ltd, Scotland British Gas, Nigeria Cabinda Gulf Oil Company, Angola Cano Petroleum Inc, Ft Worth, TX Carigali Hess Operating Co, Malaysia Centrica Energy, Scotland CEPSA, Spain Chesapeake, Muldrow, OK

WHERE DO YOU FEEL CURRENT CEMENTING TECHNOLOGY FALLS SHORT R&D in primary cementing. Additives and bonding. They should invest R&D resources to make better cement for production casing and well gas integration. We need new technology for light weight cement slurries. I believe that cementing services are improving; however, product providers should invest R&D resources in formation drilling as we still face problems with that. More R&D in the area of well head equipment. We are mainly facing issues around projections of the life of the well and we need most advanced technology on gas stops. Low cost lightweight cements. Better systems to distribute products to execute the job. Availability. Surface casing vent flow problems. Lightweight slurries and lost circulation. In filling microfractures in cement slurries. Sometimes we can't. In the line of asset find cement. Lost circulation. Deepwater technology. HP/HT well technology. Well control to be able to provide slurries to prevent any problem from cementing. HP/HT applications. None. Blends of cement. In all areas, it's setting times and the development of strength of the cement as well. Because if we want the cement to be set strong, we have to buy expensive additives or if we want it to be set quickly and have compressive strength, it costs a lot of money. Better quality cement. Improve blending and right angle cementing. Foaming. Channeling depth migration gas. Inject well leakage. Low density of slurries. Shale cementing. Well cleanout technology. HT & HP wells, complex wells. Technology and field personnel. Zone isolation. Quality assurance on equipment. HP/HT 20,000 PSI and 400 degrees F operating conditions. Need cementing "life of well" assurance. Trucks and equipment. Traveling distance to remote locations. Improve casing leakage, bleeds. High pressure, high temperature and deepwater technologies. Issues related to drilling in the far north. Permafrost cementing, especially when hydrates are present. Also cementing relating to salts environment. Cementing in HT/HP conditions. In spacers/cementing with low grades. Cementing log analysis. We need offshore technology because all technology is focused on land. Don't know. R&D in mud removal and cement placement. Reduce channeling. Cementing ERD wells. Horizontal cementing. Cement strength and availability of equipment. Deepwater issues. Zonal isolation of gas bearing zones. Shale cementing and cement to improve borehole stability, elastic cement. Improvement in equipment and product.

RESPONDENT Chesapeake, Oklahoma City, OK Chesapeake, Oklahoma City, OK Chevron, Bakersfield, CA Chevron, Houston, TX Chevron, Houston, TX Chevron, Indonesia Chevron, Kuwait Chevron, Lafayette, LA Chevron, Nigeria Chevron, Thailand Chisolm Oil & Gas, Buda, TX Cimarex, Midland, TX Cimarex, Taylorsville, MS Cimarex, Tulsa, Ok Cimarex, Tulsa, Ok Cimarex, Tulsa, Ok CNOOC, China CNOOC, China CNOOC, China CNOOC, Nigeria CNR International UK Ltd, Scotland

WHERE DO YOU FEEL CURRENT CEMENTING TECHNOLOGY FALLS SHORT Mechanical issues. Pump equipment, slurry and mixing. Innovative slurry design and life of oil cement, ESP in high temperatures. Gas intrusion out of cement. Software technology. They need to improve the surface for depleted zones. They should invest in technologies which are fit for purpose. They focus on a lot of big things due to which they have lost base business opportunities. Lightweight cement. More R&D on well control procedures while stripping. We have some challenges with HT cementing slurries. That's the only area where we feel technology falls short. Deepwater R&D on primarily HP/HT cementing for gas migration, zonal isolation. Specialty additives. Service and quality. Equipment and technology. Horizontal technologies. Quality cement jobs, better technology. Cementing additives and cement slurry system, cementing and completion tools. The equipment has not improved a lot in recent years, cementing equipment and simulation software needs to be improved. The performance of the cementing material isn't stable enough. Cementing quality is not good under high pressure and high temperature conditions, so the risk is comparatively high. Equipment and field personnel. Zonal isolation in narrow frac zones. Killing losses in cementing/fluid technology. There have been a lot of advances specifically for systems that can reduce gas migration, not just for activity here in this region, but other regions, which is a serious problem due to poor cement isolation. Light weight cement size, there are a few, but they tend to be very expensive, so it's a case of finding a light weight cement that isn't too erroneous specifically for the initial cementing area 26" or 30". Deeper lightweight cements are more technical, so if it costs a lot it's not an issue because it's a situation where the actual result is essential, so companies are prepared to pay more to get results. Increase the use of nitrogen, gas flow prevention. More efficient new equipment (cement pumping units and cement trucks that we use on land). There are lots of old equipment circulating and we need more efficient equipment. Cold weather technology. Reverse cementing, foam and lightweight and gas surface casing vent flows. Equipment and technology is improving, for most operators, what they essentially need is not state of the art technology as most of the wells are normal ones within technology limit. So getting good people to carry out designed cement job is preferable to edge state of the art technology. The accurate calculation on top of cement; stage tool improvement; cement slurry loss into formation. Cementing in lower pressure in sand presence.

Comstock Resources, Frisco, TX

Conoco Phillips - Global Wells, Houston, TX Conoco Phillips, Algeria Conoco Phillips, Anchorage, AK Conoco Phillips, Canada

Conoco Phillips, China

Conoco Phillips, China Conoco Phillips, Farmington, NM

RESPONDENT Conoco Phillips, Farmington, NM Conoco Phillips, Farmington, NM Conoco Phillips, Houston, TX Conoco Phillips, Houston, TX Conoco Phillips, Midland, TX Conoco Phillips, Nigeria Conoco Phillips, Scotland Contact Energy Ltd, New Zealand Continental Resources, Enid, OK Continental Resources, Enid, OK Crawley Petroleum Corp, Oklahoma City, OK Dana Petroleum, Egypt Dapeco, Oman Delta Petroleum Corp, Denver, CO Devon Energy, Canada Devon Energy, Houston, TX Devon Energy, Houston, TX Devon Energy, Houston, TX Devon Energy, Navajo Dam, NM Devon Energy, Oklahoma City, OK Dune Energy, Lafayette, LA Ecopetrol, Columbia El Paso Energy, Houston, TX El Paso Energy, Houston, TX Encana, Canada Encana, Dallas, TX Encore Denbury, FT Worth, TX Endeavour Energy UK Ltd, Scotland ENI, Algeria ENI, Egypt

ENI, India ENI, Italy ENI, Italy ENI, New Orleans, LA Enquest, Scotland EOG Resources, Canada EOG Resources, China EOG Resources, Denver, CO

WHERE DO YOU FEEL CURRENT CEMENTING TECHNOLOGY FALLS SHORT Lightweight slurries. Product design. Equipment and personnel. Light slurries. Material selection. We don't fall short anywhere, it's pretty basic. Isolation of water. High temperature geothermal cementing. Bonding issues. Decreasing capacity. Technology. None. Equipment and upgrading of maintenance services are the areas where they can invest R&D resources. We also struggle when we do shale and there are less chances of getting good cement. Progress light cement in lost circulation. Economy light cement. Understand gray cement color alteration zone in contract with zone of fragmented shale casing support. Understanding horizontal stress and pore pressure gradients. Gas migration - pad drilling underneath well pad. Higher strength with lower density. I think technology is current and efficient, but R&D needs a more suitable execution (off and on time cementing services). Pumping needs to have a solid design before lateral drilling. Mainly the blowouts, lost circulation, the trick wells. The density for cement holes for a better flow. Nothing at this time. Everything is pretty good right now. Training of personnel/staff. Management of all cement services (need to have continuous field education and new services). Knowledge needs to be improved in the field. Light slurries or swellables. More availability; equipment and personnel. Train personnel and lab support. Lightweight cement less than 1400. Chemical reactions. Cement and drilling fluids. Problems with cement plugs. Lost circulation. Loss circulation products. Physically placing cement in the annulus. Better quality cement. Improve the cleaning of the displacement plugs on long line production. They should invest in evaluation of CBL in order to identify the interaction between reading CBL and chemicals used and type of formation. They should find ways to make the cementing c bead below the well head. This is the area where we feel our current cementing technology falls short. R&D on the drill string washout. The cement mixes could be improved. Light cement for landfills in particular. The equipment is ok. Cement evaluation tool. Improved cementing equipment (pumps and heads). Cementing and environment when you have lost circulation problems. We don't feel current technology falls short anywhere. The technology which we're using is appropriate for us. Don't know.

RESPONDENT EON Ruhrgas UK North Sea Ltd, UK Esso Nigeria Limited, Nigeria Exxon Mobil, Australia Exxon Mobil, Houston, TX Exxon Mobil, Houston, TX Exxon Mobil, Nigeria Fairfield Energy Ltd, Scotland Forest Oil, Denver, CO Foxtrot International LDC, Ivory Coast Garco Energy, Englewood, CO Gaz De France, Netherlands GDF Suez E&P UK Ltd, Scotland Greymouth Petroleum, New Zealand

WHERE DO YOU FEEL CURRENT CEMENTING TECHNOLOGY FALLS SHORT Shortage of rigs and cementing capability. Needs better pumping equipment. No cement return. Understand saturated fluids in CO2. Chemical reaction zones in casing cement. Plug launchers and the whole technology should be overall improved. Don't know. We haven't had any issue with technology. Low density slurries. The resources and the people around here are fine. Lightweight cements. HP environments. Equipment. Ok as is. Maintenance of equipment. Nothing, I think it's fine. Need better hardware. Better availability. A lighter blend with high compressive strength. The biggest issue is trying to cement well bores where there is lost circulation while drilling the hole. Stage tools develop leaks over time and an alternative is to use a foam cement application. Generally the work is fairly simple, no high temperatures. A lot of cement bond logs show cement to casing poor and cement to formation bond. Contamination because of oil based in mud hole. Training personnel/staff. Light slurries. Our current cementing technology is fine for us. We don't see any area where the service providers need to focus. Deepwater wellbore. Gas bubbles migration into cement. Aggregates and binders that are HP/HT resistant. The quality of staff, staff training and maintenance of equipment. We don't feel current technology falls short anywhere. It's difficult to train the people on this technology. Do more efficient gas-blow additions, results in some channels. Quality assurance and quality check of cement is a problem. We're not getting high end cements from cement manufacturers in Indonesia, so it's hard to have consistent slurries. We need the same quality in remote operations as we get in the oil field center, specifically laboratories. In urban environment, would like the process to be quieter, especially pump trucks. Lightweight systems - companies keep adding things to their systems. Need to simplify. Less chemicals. Cementing in depleted reservoir. Line cementation and cementation in annular clearances. The companies need to work on the relationship with field owner, most of these companies work in isolations. They're not able to monitor day to day activities and the materials used in the oil. Providing cement solutions that don't fail. We have too many wells where the cement fails because it shrinks and we have complications on the back of the casing. The cement pump doesn't hold up for the lifetime of the well. Dealing with water/zonal isolation. Well cleanout. Displacement technology. Isolating zones in horizontal wells.

Harouge Oil Operations, Libya

Hess Corp, Houston, TX Hess Corp, Houston, TX High Exploration & Production, Oklahoma City, OK Hoang Long JOC, Vietnam Husky Energy, Canada Husky Energy, Canada Husky Energy, China IEOC, Egypt INA, Croatia INPEX Corporation, Indonesia Kaiser Exploration Ltd, Canada Khalda Petroleum, Egypt KNOC, Nigeria Kuwait Oil Company, Kuwait Kuwait Oil Company, Kuwait

Maersk Oil & Gas, Denmark Maersk Oil North Sea Ltd, Scotland Marathon Norge, Norway Marathon Oil Uk Ltd, Scotland

RESPONDENT Marathon, Houston, TX Marathon, Houston, TX Marathon, Houston, TX Marathon, Houston, TX Marathon, Houston, TX Mariner Energy, Houston, TX Mighty River Production, New Zealand Murphy Oil Company, Houston, TX Newfield Exploration Company, Denver, CO Newfield Exploration Company, Tulsa, OK Nexen Petroleum UK Ltd, Scotland Nigeria Petroleum National Company, Nigeria Noble Energy, Denver, CO Noble Energy, Houston, TX Oil & Gas Development Company Limited, Pakistan OMV Petrom, Romania OMV Petrom, Romania OMV, Austria ONGC, India Origin Energy, Australia Origin Energy, Australia OXY, Argentina OXY, Bakersfield, CA OXY, Houston, TX OXY, Oman OXY, Oman OXY, Tupman, CA Pacific Rubiales Energy, Columbia Panamerican, Argentina Partex Oil & Gas, Portugal PDVSA, Venezuela PDVSA, Venezuela PDVSA, Venezuela Pemex, Mexico Pemex, Mexico

WHERE DO YOU FEEL CURRENT CEMENTING TECHNOLOGY FALLS SHORT A lot of issues in the gulf coast areas where we get poor cement when we should be getting good ones. Could be a cement or a chemistry/formation issue. Deepwater. Foam cementing. Especially BJ Services. On the equipment - more updated equipment. Reliability of the equipment. Study gas migrations. Geothermal drilling, case cementing and lost circulation. Don't know. Technology personnel. Long term isolation in a changing environment of pressure. In depleting reservoirs, we don't have any long term integrity isolation. Adopt new health warnings for chemicals. R&D in selection of tools to improve overall job success. R&D on blending equipment. Continue to improve slurries designs to provide life of wells. Extenders for flexibility and continue research on gas block component. There is a lot of water influx and we're facing problems in production casing where the formation is very sensitive. Consistently achieve a good quality of cement bonds. Need higher pressure ratings. Proper displacement of drilling mount and reduce freefalling of cement. Product providers should invest R&D resources in well completion and offshore deep water technology. Drill string hiccups. CO2 leakage paths, durability of cement systems. The ability to rotate casing while cementing on land. Our fields are simple, but maybe in light slurries for lost circulation. Nothing. Everything is pretty good right now. Putting money into software/simulation and cementing equipment bulk. It's fine for us. We don't see any area where current technology falls short. Time efficiency. New blends - set up before fall away to permeable formations. R&D for thickening times. In cementing system in lower balance (underbalanced wells). In light slurries. Improving curing losses to the surface. Improve thermal cementing still get leaks. In light slurries, remedial cementing. Increased pump rates. Slurries in underbalanced wells. All is well for now. (Tools for TRRS training). Evaluating the cementing with the record, because it is not reliable. How to evaluate if the cementing has been successful, or will change at the end. Now all suppliers have the same technology and equipment and cementing area. Maybe something different like tubing at the end cementing. Technology - field operations. Now all needs met. We have good technology and services. Increasing pump capacity and rates. HP/HT cements.

Pemex, Mexico Penn Virginia Corp, Cannonsburg, PA Perenco, Columbia Perenco, UK

RESPONDENT Petrobras, Argentina Petrobras, Brazil Petrobras, Brazil Petrobras, Columbia Petrobras, Ecuador Petrobras, Houston, TX Petrobras, Houston, TX Petrobras, Houston, TX Petrobras, Nigeria Petrobras, Peru Petrochina Changqing Oilfield, China Petroecuador, Ecuador Petrogulf Corp, Denver, CO Petrohawk Energy Corporation, Houston, TX Petrohawk Energy Corporation, Tulsa, OK Petroleum Development Oman, Oman Petronas, Malaysia Petronas, Malaysia Petrotrin, India Petzed, Egypt Pioneer Natural Resources, Irving, TX Pioneer Natural Resources, Irving, TX Plains Exploration & Production, Bakersfield, CA Pluspetrol, Argentina Pluspetrol, Peru Premier Oil, Vietnam PTTEP, Thailand Qatar Gas, Qatar Questar, Oklahoma City, OK Quicksilver Resources, FT Worth, TX Range Resources, Cannonsburg, PA RasGas Co Ltd Reliance Energy, Midland, TX Reliance Industries Limited, India Repsol YPF, Argentina Repsol YPF, Brazil Repsol YPF, Peru Repsol YPF, Spain Repsol YPF, Venezuela Rosneft - Severnaya Neft, Russia RWE Dea, UK Safer E&P Operation, Yemen

WHERE DO YOU FEEL CURRENT CEMENTING TECHNOLOGY FALLS SHORT We need assistance in squeeze jobs. R&D in cement sheath integrity. Reliable equipment in cementing. Light slurries in land. They need to improve the effectiveness of cement. Decreased pricing/cost. No improvements needed. Towards open hole - swell packers (non cement). Blend testing and repeatable consistent blending tests. Cementing technology in HP/HT wells. The accuracy of the equipment and automated control system: it automatically controls the density of the cement slurries. It's able to accurately take notes on the pumping capacity, volume and pressure of the injected cement slurries. In general, mud slurries. Equipment quality. Technology meets current needs. Displacement tracking. The current technology falls short only in quality. Drilling fluids to cement system needs to be improved. Improving the slurry design. Trained and qualified personnel staff. Cement products and additives. R&D in plug cementing. Technology. When cement slots don't allow for hydrocarbons to go through it's setting, lost circulation. Other types of materials for cementing and for deep wells too. Managed pressure of underbalanced wells. In the flexible part of the cements and testing work. In migration of gas highly permeable during setting. Simplifying the logistics of cement chemicals. For us everything is performing well. We don't see any area where current technology falls short. I believe that technology is adequate, however, personnel are lacking in expertise, hence I'd suggest service providers to invest R&D resources in this area. Lightweight cements, low specific gravity cement. R&D in mixing equipment. Cement plugs - difficulty. Oil based muds. Cement practices have declined in past few years. The suppliers see to have forgotten turbulent flow, reciprocation and rotation. Don't know. They need to invest in low pour pressure, fracture pressure, and lightweight cementing solutions. Improvement is required in high temperature. Light slurries for lower pressure wells. Optimization on the properties in light slurries. Remedial/squeeze jobs of forced labor. In control equipment to maintain the quality of a job. Nothing, all meet our needs. Improvement of cementing slurry isolation properties. Better casing equipment. Better performance in horizontal wells. In gas migration and loss in cementing jobs due to quality of the cement.

RESPONDENT Santos, Australia Saudi Aramco, Saudi Arabia Saudi Aramco, Saudi Arabia Savia, Peru Scan Consult, Denmark Shell Norske, Norway Shell UK Ltd, Scotland Shell, Brunei

WHERE DO YOU FEEL CURRENT CEMENTING TECHNOLOGY FALLS SHORT Subsidence. High porosity sands. Problem with micro analysis. Problems with cross flow. Additives and cementing head technology are the areas where we feel our current cementing technology falls short. High density cementing is the area where we feel current cementing technology falls short. We don't have availability of equipment offshore (gas migration). On the research side, some suppliers fall short. On conventional cementing, it seems to be standing still with no development or improvement. Deepwater technology. Spacer/displacement technology. Low density cements. We're ok. There is nothing that we feel current technology falls short of. We have all of the latest technologies available in the market. Cement slurries for low pressure/depleted application. Foam cement, cement with lost circulation additives. Very lightweight slurries. Qualified operators/staff. Lightweight slurries. There are currently no major shortcomings for what we're trying to achieve. Lots of new technologies are being tried by the cementing companies. If anything, more research is required in the field of HP/HT. Cement material. Overbuilt equipment. Little jobs, reasonable prices. Replace portland cement with better cements, a low pressure drop line hangers. Purely where we're based and the relationship we have with our suppliers, the problem we have is the fine-tuning of recipes and the time it takes to run several samples. Horizontal cementing. On vertical, availability of crews and equipment. They should provide effective cementing jobs. Nothing specific, but all technological advancements are to be welcomed. Lightweight fluids or slurries. Improve the quality in terms of cementing plugs and cementing heads. Winter time. Security and supply. Tube squeeze, long string job. Well cost models, casing issue. Cost more but efficient. Big ticket items. More R&D in basic cements. More R&D in relief well design and operation. Optimal cementing for unconventional plays; cement bond and cement placement in horizontal. Deepwater cementing. Well cleanout technology. Low density cements. Swellable cements. R&D on bull heading and volumetric kill. Loss of circulation. Spacers mattresses and mud slurries. Better HP/HT cements. Ok for now. All our fields are gas, and we need help in slurries to hold the gas and more reliability in tools.

Shell, Canada Shell, Canada Shell, Denver, CO Shell, Egypt Shell, Houston, TX Shell, Houston, TX Shell, Houston, TX Shell, Netherlands Shell, New Orleans, LA Shell, Nigeria Sinclair Oil & Gas Company, Salt Lake City, UT SM Energy, Tulsa, OK Spiral Energy Stat Oil ASA, Norway Stat Oil, Nigeria STOS - Shell, New Zealand Sun Energy, Houston, TX Talisman Energy Norge, Norway Talisman Energy UK Ltd, Scotland Talisman Energy, Canada Talisman Energy, Peru Tecpetrol, Argentina Total E&P Norge, Norway Total E&P UK Ltd, Scotland Total, Argentina

RESPONDENT Total, France Total, France Total, Houston, TX Total, Indonesia Total, Indonesia Total, Nigeria Total, Qatar Tullow Oil, UK TXM O&G Exploration, Hungary Ultra Petroleum, Englewood, CO Ultra Petroleum, Tulsa, OK Ultra Technology, Englewood, CO VICO, Indonesia VICO, Indonesia Williams, Denver, CO Williams, Parachute, CO Williams, Parachute, CO Wintershall, Netherlands

Wintershall, Qatar

Woodside Energy, Australia XTO Energy, Midland, TX XTO Energy, Oklahoma City, OK XTO Energy, Tyler, TX

WHERE DO YOU FEEL CURRENT CEMENTING TECHNOLOGY FALLS SHORT All equipment relating to the setting of cement in place in the well plugs, etc. More options in low weight slurries. Deepwater cementing. R&D in remedial cementing. We think offline cementing jobs is the area where we feel the current technology falls short. We need and equipment which can work simultaneously with the other rigs in terms of cementing. More R&D on cement guidelines. We don't require any high technical products, so as of now, whatever we're using is sufficient for us. Lightweight cements. Better calculations on wall thickness. Technical equipment and swellable technology. Lost circulation. Cementing - squeeze jobs. Fluid loss, mud removal and cementing head technology. Gas migration and age to the cementing equipment. The shallow well section is the area where we feel current technology falls short. Lightweight and high temperature. Bond quality and lost circulation plugs. Lost circulation. Nothing. It's fine as it is. Very light cement should be used more often in the cementing process; however, not many people are aware of this. Also, there is a lack of awareness amongst people about the new equipment available in the market. There are several advanced applications available which our current cementing technology falls short on. More R&D on the casing and cementing hardware. A lot of technology needs improvements for all areas, but it all falls down to the resources, service and performance of the team you have congregated to do the job. Deep high temperature. Equipment and personnel.

RESPONDENT Apache, Canada BP, Houston, TX BP, Indonesia CEPSA, Spain Chevron, Houston, TX Chisolm Oil & Gas, Buda, TX CNOOC, China Conoco Phillips - Global Wells, Houston, TX Conoco Phillips, Algeria El Paso Energy, Houston, TX ENI, India Exxon Mobil, Australia Hoang Long JOC, Vietnam INPEX Corporation, Indonesia Noble Energy, Denver, CO OMV Petrom, Romania OMV, Austria OXY, Houston, TX Petrobras, Brazil Petronas, Malaysia Shell, Canada Shell, Houston, TX Shell, Houston, TX Shell, New Orleans, LA Total, Nigeria

HOW GREAT IS THE NEED FOR IMPROVEMENTS - DEEPWATER CEMENTING Well bore stability. Density bonding capabilities. We need placement technology and slurries design. Compressive strengths developed faster. Monitoring cement additives. Cement additives to stop gas migration. The performance of the deep water cementing slurry and the cement injection process. Predicting when gas will flow thru cement. Need more research into cement placement, lighter weight cement operational efficiency. Primary formation control. Improvement is required in cement bonding and uniform distance around the casing pipe. Those additives are required which can give requisite strength. Tools and special compositions of cement for deepwater applications needs to be improved. Sometimes the standard formulation doesn't work, so that needs to be improved. Reliability of annular isolation. Technology. Judging by the recent disaster in the Gulf of Mexico. Not involved in that area. Systems to stop the flow. Technology. We need those cementing systems which are light weight, give long term strength and at the same time give perfect solar isolation. Reliability. Depth deployment. Technology. Technology. Setting depth. The stimulation of temperature and for having stable in required temperatures, as sometimes it is difficult to estimate down hole temperature, which is for every cement job, either we measure the temperature or we guess it. So we need a technology which can help us to know the exact temperature.

Total, Qatar

RESPONDENT Antero Resources, Rifia, CO Apache, Houston, TX BP, Angola BP, Egypt BP, Houston, TX BP, Indonesia Chesapeake, Muldrow, OK Chevron, Houston, TX Chroma E&P Inc., Houston, TX Cimarex, Midland, TX CNOOC, China Comstock Resources, Frisco, TX Conoco Phillips, Farmington, NM

Contact Energy Ltd, New Zealand Delta Petroleum Corp, Denver, CO Dune Energy, Lafayette, LA ENI, Italy ENI, New Orleans, LA Fasken Oil & Gas Ltd, Midland, TX Forest Oil, Denver, CO INPEX Corporation, Indonesia

Kuwait Oil Company, Kuwait OMV, Austria ONGC, India OXY, Houston, TX OXY, Oman Petrochina Changqing Oilfield, China Petzed, Egypt PTTEP, Thailand Saudi Aramco, Saudi Arabia

Saudi Aramco, Saudi Arabia Shell, Egypt Shell, New Orleans, LA Total, France TXM O&G Exploration, Hungary

Wintershall, Qatar XTO Energy, Tyler, TX

HOW GREAT IS THE NEED FOR IMPROVEMENTS HIGH PRESSURE / HIGH TEMPERATURE Retardement. Cement slurries that you can mix. Slurries that can withstand these environments. Life of well assurance. Improve mixing and placement capabilities. Specialized binders. Slurries design and life of cement. Technology. Gas intruding into cement additives. Preventing annular flow after cementing. Quality control. To confirm the temperature of the cement injected. Better flow properties. Depending on parameter. There should be much better engineering control over fattening time for high temperature wells and good reliability of technique time with high temperatures. 18+ lb per gallon per density. Company/cement knowledge. I think the recent oil rig explosion in the Gulf of Mexico was because of cementing. Probability - heavy cement. Quality. More slurrie data and research. Reliability of annular isolation. We should have the degree of consistency in the primary cementing or liner cement job. We have not seen good CBLS in low annular clearances. Cementation in high pressure salt is been a challenge. Not involved in that area. More slurries design is required. Cementing knowledge of oil isolation. We need the long life cementing in high temperature and high pressure applications. Cementing slurries configuration priority plan, it varies from the lab to on site. Need to redesign the cement additives by adding more chemicals to fulfill the well design. We need the high temperature formulation. Improvement in temperature stability is required. The equipment that sustains in HP/HT, at the same time it should sustain the capability to perform the cementing operations. Stable slurries and models to simulate behavior under downhole conditions. Technology. Improve the response of additives and chemicals. More communication is needed as many customers dont know about the risks in these areas. We need products which should keep the cement pumpable; especially rig pumps need to be equipped with the new products. Compression strengths.

RESPONDENT Abu Dhabi National Oil Company, UAE ADMA, Abu Dhabi Apache, Canada Bill Barrett Corporation, Denver, CO Chesapeake, Oklahoma City, OK Cimarex, Tulsa, Ok Comstock Resources, Frisco, TX Conoco Phillips, Canada Conoco Phillips, Farmington, NM Conoco Phillips, Houston, TX Continental Resources, Enid, OK Forest Oil, Denver, CO Greymouth Petroleum, New Zealand High Exploration & Production, Oklahoma City, OK Husky Energy, Canada Husky Energy, Canada INPEX Corporation, Indonesia PDVSA, Venezuela Petrobras, Brazil Petrobras, Brazil Petrochina Changqing Oilfield, China Questar, Oklahoma City, OK

HOW GREAT IS THE NEED FOR IMPROVEMENTS HORIZONTAL WELLS Zone isolation, plugging device. We need proper well cleaning, proper displacement and proper ECG management. Setting improvement. Better bonding. Low density. High strengths. Displacement of mud. Better stability. Cement quality with respect to fracture design. Centralization. Technology. Channeling. Hole cleaning research. Thinner slurries need to be improved. Better place cement slurries. Bonding techniques. Stabilize sections. Reliability of annular isolation, as cement jobs are very unreliable. Cementing integration, centralization. Cementing bonding issues. Improve the technology for location. It is difficult to control the cementing quality, need to research the flow property of the cement slurries. Studies of gas migrations. Currently, companies are not using this technology due to certain limitations. Improvement is required in getting the cement all around, centralization and simulation. Assurance is needed that there will be cement around the casing. To start channels. Improvements to long term isolation. Eliminate the channeling. Stimulation and technology. We need a stable rheology. Channeling. Different blend technology. HP/HT

Reliance Industries Limited, India Saudi Aramco, Saudi Arabia Shell, Houston, TX Shell, Netherlands Sinclair Oil & Gas Company, Salt Lake City, UT SM Energy, Tulsa, OK Total, Qatar Williams, Parachute, CO XTO Energy, Oklahoma City, OK XTO Energy, Tyler, TX

RESPONDENT ADMA, Abu Dhabi Apache, Canada BP, Houston, TX Cimarex, Tulsa, Ok Cimarex, Tulsa, Ok Comstock Resources, Frisco, TX Delta Petroleum Corp, Denver, CO ENI, Italy Husky Energy, Canada INPEX Corporation, Indonesia OXY, Oman Pioneer Natural Resources, Irving, TX Questar, Oklahoma City, OK Saudi Aramco, Saudi Arabia Shell, Canada Shell, Houston, TX Shell, Houston, TX Sun Energy, Houston, TX Total, Qatar

HOW GREAT IS THE NEED FOR IMPROVEMENTS EXTENDED REACH WELLS We need a technology to create proper isolation. Reliability - support. Sharing and reinforcement options - compounds. Displacement of mud. Placement of cement jobs. Better stability. Not with slurries, with tools. Composition could be improved. Stabilize horizontal. Reliability of annular isolation, as cement jobs are very unreliable. We need consistency in the slurries. More of a lower weight and low viscosity (and combo of displacement characteristics for R&D wells). Ability a good cement bond. Improvement in displacement or spacer is required. Reliability due to formation. Displacement, ceiling materials integration between drilling fluid/cement. How to put it in place. Getting optimal cementing placement in ER. (all around). We need a stable rheology.

RESPONDENT Antero Resources, Rifia, CO Apache, Canada CEPSA, Spain Cimarex, Tulsa, Ok Continental Resources, Enid, OK INPEX Corporation, Indonesia ONGC, India Petrobras, Houston, TX SM Energy, Tulsa, OK Total, France XTO Energy, Tyler, TX

HOW GREAT IS THE NEED FOR IMPROVEMENTS SHALE CEMENTING Asset foam. Extended reach reliability. High borehole instability elastic cements. Placement of cement jobs. New technique. Reliability of annular isolation, as cement jobs are very unreliable. Lot of caving and stability is needed. Improvement on the thickness. Technology. New technologies. Compression strengths.

RESPONDENT Cimarex, Tulsa, Ok CNOOC, China Devon Energy, Navajo Dam, NM

Origin Energy, Australia

HOW GREAT IS THE NEED FOR IMPROVEMENTS - COAL BED METHANE CEMENTING Placement of cement jobs. The measures to protect the coal bed are not adequate. Lost circulation. Coal bed methane is used in deepwater wells; the potential for cement to be drunk is greater and invasion is the area they need to focus.

RESPONDENT Antero Resources, Rifia, CO

HOW GREAT IS THE NEED FOR IMPROVEMENTS MANAGED PRESSURE OR UNDERBALANCED WELLS Foam nitrified. Very difficult to do at the moment. If putting the cement into sealed system which is generally underbalanced, it is a sealed system so you have to deal with the possibility of venting the system by pumping the cement out of pressurized containment systems. Lower density slurries. Techniques to help get plate cement in place on borderline wells. Slurrie design. Prevent annular flow after cementing. Predictive model. We need a light weight slurries and good chemical resistance and folk strings. Knowledge and skilled. Reliability of annular isolation, as cement jobs are very unreliable. A better understanding of the application. Equipment that won't go overbalanced. Ultra light weight slurries is required. There are lot of depleted formations and reservoirs, so we need a lot of improvements there as it is very critical. Cementing system. In the use light slurries. Improve on pressure balancing. Need a system where cement can be circulated without changing the bottom hole pressure significantly which means that cement system would drop especially for managed pressure drilling. Need to redesign the cement additives by adding more chemicals to fulfill the well design. Find right combo for those depleted wells. Light slurries to resist more. Need light slurry to ensure isolation of the cement from the well. It is a new and challenging technology in drilling therefore it requires continuous improvement for sometime. They need to develop reverse cementing procedures. Technology.

BG Group, Algeria

Bill Barrett Corporation, Denver, CO BP, Egypt Chevron, Houston, TX Chroma E&P Inc., Houston, TX Conoco Phillips - Global Wells, Houston, TX Contact Energy Ltd, New Zealand Dune Energy, Lafayette, LA INPEX Corporation, Indonesia Newfield Exploration Company, Denver, CO OMV, Austria ONGC, India OXY, Oman Pacific Rubiales Energy, Columbia PDVSA, Venezuela Petrobras, Brazil Petronas, Malaysia

Petzed, Egypt Pioneer Natural Resources, Irving, TX Pluspetrol, Peru Rosneft - Severnaya Neft, Russia Saudi Aramco, Saudi Arabia Shell, Houston, TX Shell, New Orleans, LA

RESPONDENT BP, Russia CNOOC, China Contact Energy Ltd, New Zealand Devon Energy, Canada INPEX Corporation, Indonesia Mighty River Production, New Zealand Origin Energy, Australia Pioneer Natural Resources, Irving, TX Shell, Houston, TX Shell, Houston, TX Total, France TXM O&G Exploration, Hungary

HOW GREAT IS THE NEED FOR IMPROVEMENTS - GEOTHERMAL CEMENTING Manage thermal expansion that affects cement properties. Anti high temp cement slurry configuration. Light weight slurry, temperature stability and long term strength in chemical resistance. Design for 230 degree C. Reliability of annular isolation, as cement jobs are very unreliable. Dealing with lost circulation cementing. We need cements that are pumpable and develop high compressive strength in high temperatures. Not very - the capabilities to handle the temperature. Higher temperature. Technology. Durability over time - competent sealers for 1000 years. All service companies need to be prepared to use geothermal cementing and the problem is that the valves are isolated.

RESPONDENT Abu Dhabi National Oil Company, UAE Cimarex, Taylorsville, MS Comstock Resources, Frisco, TX Conoco Phillips - Global Wells, Houston, TX Delta Petroleum Corp, Denver, CO ENI, Italy Marathon, Houston, TX Origin Energy, Australia OXY, Oman Petrohawk Energy Corporation, Houston, TX

HOW GREAT IS THE NEED FOR IMPROVEMENTS - HIGH HORSEPOWER CEMENTING UNITS High capacity for deep jobs is required. High pressure. Need higher pressure ratings. Fracing wells. Availability. Shouldn't have to install it every time. Higher pressure/horsepower. Reliability and cost effectiveness. We need improvement in high pressure surface to keep up to the displacement. Too few units available not enough maintenance/experience. We need electrical high powered cementing units in the modern laboratories. We also need to improve the process control on the cementing units so then whole measurement of the weight of the slurry and the volumetric measurement are not affected. Better availability. Need different dynamics to improve cementing slurry.

Petronas, Malaysia Spiral Energy TXM O&G Exploration, Hungary

RESPONDENT

ADMA, Abu Dhabi Dune Energy, Lafayette, LA Husky Energy, Canada IEOC, Egypt INA, Croatia Marathon, Houston, TX Mighty River Production, New Zealand OXY, Oman Petrobras, Brazil Petrobras, Houston, TX Petrobras, Nigeria Petzed, Egypt Pioneer Natural Resources, Irving, TX PTTEP, Thailand Questar, Oklahoma City, OK

Total, Indonesia TXM O&G Exploration, Hungary RESPONDENT Agip, Nigeria Apache, Canada BP, Canada BP, Egypt Carigali Hess Operating Co, Malaysia CEPSA, Spain Chevron, Houston, TX Chroma E&P Inc., Houston, TX Cimarex, Taylorsville, MS Conoco Phillips, Farmington, NM Delta Petroleum Corp, Denver, CO Dune Energy, Lafayette, LA IEOC, Egypt Noble Energy, Denver, CO OXY, Houston, TX OXY, Oman Petrobras, Houston, TX Petzed, Egypt Premier Oil, Vietnam Shell, Houston, TX Shell, New Orleans, LA SM Energy, Tulsa, OK Total, France

HOW GREAT IS THE NEED FOR IMPROVEMENTS CASING EQUIPMENT We need the improvement mainly in the liner hanger equipment and extended reach floats equipment. We also need proper centralization. Research and knowledge. Improve durability and flexibility. Get some leaks. Quality control has dropped from 10 years ago. Heavier equipment. We need right kind of casing equipment that can withstand with the geothermal cementing conditions. We need improvements in casing running tools, floating equipment and casing accessories. Improve on leaks. Lost of the equipment. New design. Need a New design for a new casing equipment is a mandatory. Efficiency and units fit on small rigs coming out. We need the high temperature rating equipment. Improve cementing plug. We need the improvement in the integrity between float collar, float shoe and cementing plug inside the float collar. Needs to focus more on geothermal and needs to deal with extra stress. HOW GREAT IS THE NEED FOR IMPROVEMENTS CEMENTING HEAD TECHNOLOGY R&D more on the latest technology. Time get it flush 1st time. Alignment for migration issues. More reliable and updated equipment. Plug released mechanism and indicator and manifold connection technology. You need something that can be done without stopping circulation to install cement head. To save the ability to rotate higher speed. Preventing from cementing plugs. Installation. Depending on depth. Multiple plug. Not being involved and development of better technology. Easy to rig up and down. Technology/bonding. Fast release and top drive cementing. We need improvement in fast latch cementing units. Combine loads for temperature and pressure. Quick latch is the best solution for the cement head technology, look ahead for more adventures. High pressure rating needs to be improved. We need multi leads equipment. Bonding issues. Technology. Use several plugs. The improvement is needed in the high temperature and high pressure case and the possibility to prevent the occurrence.

VICO, Indonesia

RESPONDENT

HOW GREAT IS THE NEED FOR IMPROVEMENTS - WELL CLEANOUT / SPACER OR DISPLACEMENT TECHNOLOGY We need proper well cleaning and mud displacement, mainly in extended reach equipment. Spaces, more circulation. Pump rate issues. Improve well wall reliability. Improved micro-emulsion technology. Compatability with mud and spacers. Making sure current practices are what's needed. More data and research and standard practice. Does not remove all mud cake. Find the spacer that will have lower density. How to design preferred solutions which should prevent losses. Cost, environment and effectiveness. No efficient spacer train. We need the cementing bonding, casing and formation which help in cleaning the well better. Need more improvement specially for rotating scraper, also the spacer required more efforts to prevent cement contamination which lead to cement remedy or cement squeeze jobs. We need something which can improve the cement bond. Better study flow patterns. More contaminations/tolerant. More defective displacement. After well displacement we want to bring the wells online and dont want an extensive cleanout program. Improve the software. The improvement is required in the operational of products. Technology.

ADMA, Abu Dhabi Antero Resources, Rifia, CO ATP Oil & Gas, Houston, TX BP, Houston, TX Chevron, Houston, TX Cimarex, Tulsa, Ok Conoco Phillips, Canada Forest Oil, Denver, CO IEOC, Egypt INA, Croatia Mighty River Production, New Zealand Origin Energy, Australia Petrobras, Houston, TX Petroleum Development Oman, Oman

Petzed, Egypt PTTEP, Thailand Questar, Oklahoma City, OK Shell, Houston, TX Shell, Houston, TX Shell, Netherlands Total, France Total, Qatar XTO Energy, Tyler, TX

RESPONDENT Antero Resources, Rifia, CO ATP Oil & Gas, Houston, TX Baytex Energy, Canada Bill Barrett Corporation, Denver, CO BP, Angola BP, Houston, TX

HOW GREAT IS THE NEED FOR IMPROVEMENTS SELF-HEALING / SWELLABLE CEMENT Greater quality insurance. Technology. Something that really does swell. Lower density slurries. Too dependent on temperatures and type of fluid. Foam options on condition. Some kind of compound that will work. We tried Halliburton, BJ and Schlumberger and none solved the issue. High pressure gas well cementing. Loss circulation remediation. Surface casing vent flows. We need a modification in any cement slurry. Inconsistent - reliability. Spend time and more money. Technology. Environment effects could cause adverse effects. Communication in technology. That they work within the lifetime of the well. Need to improve the spec so they can More slurries R&D should be done as we want to see how fast they can heal. More info in application and casing repair. Lower tertiary application for a high pressure draw down. It should maintain bonding. The performance needs to be improved. Better understanding on migrations. We have tried this technology twice but discontinued using it due to lack of trust on the technology. Since this is a new technology, lot of ongoing improvements are required in this. Since it is a new and challenging technology we need proof of its proper functionality. This technology is new and has huge potential. Some companies are more focused on this than others. Operators need to be aware of the differences during tendering. Long term well integrity. If cement can be replaced by swellable thats the way we would want to go. Check the chemical reactions with different gases. To keep up it's performance in low pressure areas. I'm not sure but definitely something with cementing. To prove that it works. Technology.

Cano Petroleum Inc, Ft Worth, TX Chroma E&P Inc., Houston, TX Conoco Phillips, Anchorage, AK Conoco Phillips, Canada Contact Energy Ltd, New Zealand Devon Energy, Houston, TX Devon Energy, Navajo Dam, NM ENI, New Orleans, LA EOG Resources, Canada Garco Energy, Englewood, CO Maersk Oil & Gas, Denmark ONGC, India PDVSA, Venezuela Petrobras, Houston, TX Petroleum Development Oman, Oman Premier Oil, Vietnam Questar, Oklahoma City, OK

Reliance Industries Limited, India Saudi Aramco, Saudi Arabia

Shell, Egypt Shell, Netherlands Total, France Total, France Williams, Parachute, CO Williams, Parachute, CO XTO Energy, Tyler, TX

RESPONDENT Cimarex, Taylorsville, MS Husky Energy, Canada IEOC, Egypt Marathon, Houston, TX Petrobras, Brazil Petrobras, Houston, TX RasGas Co Ltd Total, Qatar Williams, Parachute, CO XTO Energy, Oklahoma City, OK

HOW GREAT IS THE NEED FOR IMPROVEMENTS - INCREASED PUMP RATES Flow rate of pump. Offshore. Schlumberger. To take less time. Ability to pump it the closer margin. Control the pump rate. Calculation of the pumping rate. We need to establish turbulent flow. We want, if we can displace any cement job with the cementing unit; however we can't do it right now. Higher more reliable equipment. A better cementing flow technology.

RESPONDENT ADCO, UAE BP, Russia Chevron, China Cimarex, Tulsa, Ok Devon Energy, Canada EOG Resources, Canada Fasken Oil & Gas Ltd, Midland, TX IEOC, Egypt Mighty River Production, New Zealand Petroleum Development Oman, Oman Petzed, Egypt Safer E&P Operation, Yemen Saudi Aramco, Saudi Arabia Total, France Woodside Energy, Australia

HOW GREAT IS THE NEED FOR IMPROVEMENTS - CORROSIVE RESISTANT CEMENT (CO2, H2S) Improvement is required in slurry design and cementing formulation. Environment protection focus. Here we need H2S, CO2 both; we need something which can resist to any attack or corrosive action. Improvement of all cementing materials. SAGD D. CO2 effects on cement; micro channeling tubular protection. More research needed. Improve resistance to avoid later problems. The ability to cement the whole duck to co2 and h2's. It should rely on the cement sheet as a barrier. Need improvement to avoid the presence of H2S & CO2. This is major problems for many companies as the existing solutions are not adequate. Since it is a new and challenging technology we need proof of its proper functionality. Response to H2s and acid gas. They should be confident with their cement technology that it will stay for longer period of time. HOW GREAT IS THE NEED FOR IMPROVEMENTS - SPECIALTY ADDITIVES Those additives are required which can be used at low temperature as well as high temperature. We need improvement in synthetic additives and gas tops. Solutions for well bore pressure. Gas intrusion. Improve fluid loss control. Cementing across depleted zones is the specific area. Improvement of all cementing materials. We need a very effective lost circulation material which will do a rapid heal and allow the primary cement job to get to surface and targeting lost circulation cement plugs. We need a system to control losses while casing cementing. Low quality. Retarder, dispersant, fluid loss reducer and defoamer need more improvement. Companies should try to innovate such as environment friendly cement, light weight cement, etc.

RESPONDENT ADCO, UAE ADMA, Abu Dhabi BP, Columbia Chevron, Houston, TX Chevron, Houston, TX Chevron, Kuwait Cimarex, Tulsa, Ok Contact Energy Ltd, New Zealand Mighty River Production, New Zealand Pemex, Mexico Petzed, Egypt Reliance Industries Limited, India

RESPONDENT Apache, Canada Apache, Houston, TX BG Group, Algeria Bill Barrett Corporation, Denver, CO BP, Russia BP, Scotland Chevron, Houston, TX Chroma E&P Inc., Houston, TX Cimarex, Tulsa, Ok Conoco Phillips, Farmington, NM Delta Petroleum Corp, Denver, CO El Paso Energy, Houston, TX ENI, New Orleans, LA EOG Resources, Canada Fasken Oil & Gas Ltd, Midland, TX GDF Suez E&P UK Ltd, Scotland Hess Corp, Houston, TX High Exploration & Prod, Oklahoma City, OK Hoang Long JOC, Vietnam Husky Energy, Canada INA, Croatia INPEX Corporation, Indonesia Kuwait Oil Company, Kuwait Mighty River Production, New Zealand Newfield Exploration Company, Denver, CO Noble Energy, Houston, TX OMV Petrom, Romania OMV, Austria Petronas, Malaysia Pluspetrol, Peru Range Resources, Cannonsburg, PA RasGas Co Ltd Shell, Canada Shell, Canada Shell, Egypt Shell, Houston, TX Total, France XTO Energy, Tyler, TX

HOW GREAT IS THE NEED FOR IMPROVEMENTS CONSISTENT PRODUCT PERFORMANCE FROM REGION TO REGION Personnel. Quality control regions. Too much inconsistency from region to region, company to company and engineer to engineer. Trained and experienced staff. Storage, transport time is affecting cement properties. In far north regions, delivery times may be long and ensuring consistent qualities is very important. Service is very variable - they need to have more consistent supervision. Consistency of project. Same policies from region to region. Improvement of all cementing materials. Quality control. Pool resources. Grind of cement are different. Product price uncertainty. Sloppy management of cement designs. Product consistency. Variations even between UK and Netherlands need to be consistent. We can't pump 2 slurries in mile apart/cant get the same performance. Consistency from place to place, quality control. It is important to improve the quality of products in the areas that have lower activities. Tool and truck availability. They need to be the same quality. Consistent quality of product, lab testing and consistent quality for the whole service from design to delivery. We need to improve in the basic parameters for any products. We need that it should be consistent in terms of supplying the products. They dont have consistency in region to region. Consistent blend between batches - drying problems. Need to adapt different cements to perform in different regions. Reliability from a company's equipment and personal from region to region. Consistent service quality is needed from region to region. Gas migration. Quality equipment. Experience is specifically needed. Equipment transportation. Personnel. A big problem in many areas is compliance to standards and QAQC. Training experience cementing is the lowest that it has been in 25 years and worse than the globe. Yes - make it consistent! Quality service.

RESPONDENT ATP Oil & Gas, Houston, TX BHP Billiton, Australia BP, Egypt BP, Houston, TX Chesapeake, Oklahoma City, OK Chevron, Houston, TX Cimarex, Tulsa, Ok CNOOC, China CNOOC, China Conoco Phillips - Global Wells, Houston, TX Conoco Phillips, China Denali Oil & Gas, Houston, TX Dune Energy, Lafayette, LA El Paso Energy, Houston, TX Noble Energy, Houston, TX ONGC, India OXY, Tupman, CA Petrobras, Houston, TX Petrobras, Houston, TX Petrochina Changqing Oilfield, China Saudi Aramco, Saudi Arabia Shell, Egypt Shell, Houston, TX Shell, Houston, TX Total, France Woodside Energy, Australia

WHAT KEY TECHNOLOGY GAPS EXIST IF MAXIMUM BOTTOM HOLE PRESSURE IS 15,000 PSI OR GREATER Float equipment. We need to use stable cement in high temperatures. Need for "life of well" assurance. Proven reliability techniques. High pressure cementing. Local lab testing. Flexible cement. Anti gas out and weighting materials for cementing. On the site staff lack cementing experience. The cementing equipment and tool cannot meet the requirements. High temperature (electronic). How to guarantee the performance of the cement slurries under high temp condition. Development of HP/HT cements. Trained personnel, cementing heads, rotating while cementing. High pressure equipment capability. Slurry design with right angle set finish jobs more quickly. HP/HT cementing is the area where improvement is needed. Stabilization under high pressure. Equipment in well control. Life cycle design for ultimate bottom hole pressure. Cementing equipment and cement slurry configuration plan. LCM materials require improvement is the technology gap that needs to be addressed in these higher pressure environments to meet our cementing needs. Consistent slurry performance and repeatability. Lost circulation. New higher temperature retarders. New materials for casings. Cement slurry design.

RESPONDENT Abu Dhabi Marine Operating Company, UAE ADMA, Abu Dhabi Baytex Energy, Canada BP, Egypt British Gas, Nigeria Chevron, Houston, TX Chevron, Houston, TX CNOOC, China CNOOC, China Conoco Phillips - Global Wells, Houston, TX Conoco Phillips, China Contact Energy Ltd, New Zealand Delta Petroleum Corp, Denver, CO Denali Oil & Gas, Houston, TX Devon Energy, Canada Dune Energy, Lafayette, LA El Paso Energy, Houston, TX INPEX Corporation, Indonesia Khalda Petroleum, Egypt ONGC, India OXY, Houston, TX Pemex, Mexico Pemex, Mexico Petrochina Changqing Oilfield, China Pioneer Natural Resources, Irving, TX Plains Exploration & Prod, Bakersfield, CA Shell, Egypt Shell, Houston, TX Shell, Houston, TX Shell, New Orleans, LA Total, France

WHAT KEY TECHNOLOGY GAPS EXIST IF MAXIMUM EXPECTED TEMPERATURE IS 350 DEGREES F (175 C) OR GREATER We need stability of the slurry using the range of temperature. The gas tight and the hole cleaning ar4e the technology gaps which needs to be addressed in these higher temperature environments to meet our cementing requirements. Blend and type of cement. Guarantee "life of well." Enhanced bonding. Improve sheath durability - reliability. Better monitoring/control of addition of additives. Retarders need to be addressed. On the site staff lack cementing experience. The cementing equipment and tool cannot meet the requirements. The quality and stability of the high temperature cementing additives. High temperature (electronic). How to guarantee the performance of the cement slurries under high temp condition and how to operate. We need light good quality chemical resistance cement slurries; generally dont have returns so we need something which can give us returns and very quick acting lost circulation cement plugs. Needing greater pump time on the slurrie. Development of gas migration & cements. Cementing designs. Cementing heads and rotating while cementing. Pumping time control. We need lighter weight reliable slurry. Short thickening times. As we use oil based mud equipment, expandable liner hanger, slurries design and spacer are the areas where improvement is required. Stage tools or cementing attachments with the lastimers. Meets all, do a test before. We don't have any problems because the wells are exploratory. Cement slurry configuration plan. Its more the cost of the additives and finding personnel in that area. Capability of being able to cement above 350 degree. Consistent slurry performance and repeatability. Lost circulation. New high temperature retarders. Bonding issues. The spacers and chemical wash when we drill using oil-based mud in HT we need better wet-ability.

RESPONDENT

WHAT KEY ISSUES OR PROBLEMS ARE YOU EXPERIENCING WITH CEMENTING YOUR HORIZONTAL WELL SECTIONS (IF DEVIATED MORE THAN 60 DEGREES) Quality bonding, removal of muds and muds displacement are the few areas where we are facing problems. Channeling is the most common problem we are facing because we have horizontal holes and cement lays which are on the low side, so the plan of action is channeling which will allow communication between the zones. Centralization and contamination of the cement are the key issues where we are experiencing with cementing the horizontal well sections. The issues that we are facing are mainly with centralization and rotation of the liner. Most of the times, the liner does not rotate and it creates a lot of problems. We also have some problems with the mud displacement and hole clean up. We don't cement horizontal wells. Good hole cleaning. Cementing in long narrow wells. Drilling string issues no cementing issues. Adequate zonal isolation. Micro annulus that forms on top of the horizontal part. Annual isolation: it is hard to get isolation when you work on horizontal wells. We dont get desired isolated casing shape. Cement displacement. Problems in shales/clays. Well instability (old wells/reservoir). Channeling. Contamination of cement with mud is the area where we are facing issues. Lost of circulation. Zonal isolation. We have not started our operations in this area so till now we don't have any experience in any cementing job in our area. Difficulty getting cement coverage. Uniform cement placement around tubulars. Underground blowouts. We don't cement horizontal well sections, as we have open hole completions only. Do not run bond logs in horizontal section. Bonding issues. Channeling. Poor bonding issues. Zonal isolation. Casing centralization and the cementing quality at highly deviated sector. The cement ring lacks elasticity, it is easily broken under the repetition of high pressure stress, the experience of the on site engineer, the advantage and disadvantage of the cementing equipment and tools. Need better stability. 360 degree coverage (complete hole isolation). Channeling. A lot of times dont cement the horizontal portions due to missing the top portion. Centralization. How to guarantee the cementing effect of the extended reach well.

Abu Dhabi Marine Operating Company, UAE

Abu Dhabi National Oil Company, UAE

ADCO, UAE

ADMA, Abu Dhabi Andes Petroleum, Ecuador Antero Resources, Rifia, CO Apache North Sea Ltd, Scotland Apache, Canada Arena Energy Offshore, The Woodlands, TX Baytex Energy, Canada BHP Billiton, Australia BP, Russia BP, Scotland Britannia Operator Ltd, Scotland Cabinda Gulf Oil Company, Angola Carigali Hess Operating Co, Malaysia Chesapeake, Oklahoma City, OK Chevron, Bakersfield, CA Chevron, China Chevron, Houston, TX Chevron, Houston, TX Chevron, Nigeria Chevron, Thailand Cimarex, Midland, TX Cimarex, Taylorsville, MS Cimarex, Tulsa, Ok Cimarex, Tulsa, Ok Cimarex, Tulsa, Ok CNOOC, China

CNOOC, China Comstock Resources, Frisco, TX Conoco Phillips - Global Wells, Houston, TX Conoco Phillips, Anchorage, AK Conoco Phillips, Canada Conoco Phillips, China Conoco Phillips, China

RESPONDENT Conoco Phillips, China Conoco Phillips, Farmington, NM Conoco Phillips, Houston, TX Conoco Phillips, Midland, TX Continental Resources, Enid, OK Dapeco, Oman Delta Petroleum Corp, Denver, CO Denali Oil & Gas, Houston, TX Devon Energy, Canada Devon Energy, Houston, TX DTE Energy, Ft Worth, TX Dune Energy, Lafayette, LA Ecopetrol, Columbia El Paso Energy, Houston, TX Encana, Dallas, TX Endeavour Energy UK Ltd, Scotland ENI, Italy EOG Resources, China EOG Resources, Denver, CO Exxon Mobil, Australia Exxon Mobil, Nigeria Forest Oil, Denver, CO Gaz De France, Netherlands GDF Suez E&P UK Ltd, Scotland Harouge Oil Operations, Libya Hess Corp, Houston, TX High Exploration & Production, Oklahoma City, OK Hoang Long JOC, Vietnam Husky Energy, Canada Kaiser Exploration Ltd, Canada Kuwait Oil Company, Kuwait

WHAT KEY ISSUES OR PROBLEMS ARE YOU EXPERIENCING WITH CEMENTING YOUR HORIZONTAL WELL SECTIONS (IF DEVIATED MORE THAN 60 DEGREES) No return, channeling. Channeling issues. Good cement bonding issues. Inadequate bond (100%). Channeling and displacement. The failure of the equipment I.e., downhole equipment and centralization are the areas where we are facing problems. Channeling. Efficient cement placement. High density unconsolidated sand for back issues subsidence blending of list cir soft pressure. ECD's. Channeling. Rotating while cementing, casing equipment and cementing heads. Hole cleaning. Train personnel. Getting returns. Running uncemented casing (gravel packing). To get better cement properties to sustain pressure for a multi-frac job. Annular velocity is the key issue we are experiencing with cementing our horizontal wells. Zone isolation. We don't have horizontal wells. In the stage cementing, squeeze and pluging. Hole cleaning, bond issues. Centralization of the casing. Long liner sections to be cemented. Very difficult in 4 3/4" hole. Occurrence of channeling and channeling causing micro annulus. Cement channelings. Getting a good job around the horizontal portion. We have all open hole wells, so we don't cement our horizontal well sections. Unconsolidated sand. Filtrate damage in reservoir. Channeling the major problem which we are facing with cementing our horizontal well sections. The unequal coverage of cement sheet across the liner is an issue that we are experiencing with cementing our horizontal well sections. The ECD's whilst cementing. Cement displacement and losses whilst cementing. Bond log quality. Technology. The cement cannot be formed on top of the liner in production casing is the problem that we are experiencing with cementing our horizontal well section. Lack of zonal isolation. Bad isolation. The key areas where we are facing issues are mud remover, centering of the casing and hanger leak.

Kuwait Oil Company, Kuwait Maersk Oil & Gas, Denmark Marathon, Houston, TX Noble Energy, Denver, CO

Oil & Gas Development Company Limited, Pakistan OMV Petrom, Romania OMV, Austria ONGC, India

RESPONDENT Origin Energy, Australia OXY, Oman OXY, Tupman, CA Pacific Rubiales Energy, Columbia PDVSA, Venezuela Pemex, Mexico Pemex, Mexico Penn Virginia Corp, Cannonsburg, PA Perenco, UK Petrobras, Brazil Petrobras, Houston, TX Petrochina Changqing Oilfield, China Petrohawk Energy Corporation, Houston, TX Petrohawk Energy Corporation, Tulsa, OK Petrotrin, India Pioneer Natural Resources, Irving, TX

WHAT KEY ISSUES OR PROBLEMS ARE YOU EXPERIENCING WITH CEMENTING YOUR HORIZONTAL WELL SECTIONS (IF DEVIATED MORE THAN 60 DEGREES) We have not drilled horizontal wells till date. We don't need to cement our horizontal well section as we have all open hole wells. Zonal isolation. The clean out well is complicated. Improve in centralizer technology. Making records. The plug for circulation doesn't work. Cement bonding issues. Locating the cement in narrow/small zones. Synthetic muds. Plug dropping head to provide visual confirmation. The flowing property of the cementing slurries and the cementing quality evaluation. Bringing cement back up into the surface casing. Well circulation. Slurrie technology. Cleaning out hole properly (well clean out). Centralization. Geometry of well itself is biggest challenge - pipe on bottom of hole = displaces cement - cement that displaces better or a way to rotate pipe to avoid this. Don't cement in horizontal parts. Gas migrations. Getting true isolation between stages (from the cement) 360 degree coverage around casing. The key issues we are experiencing with cementing our horizontal well sections are 360 degree coverage and need to eliminate channeling. At the time of decantation. Cement going to the lower side of the well and gas migration are the problems we experience with cementing our horizontal well sections. Loss in the coal, contamination of coal and light weight slurries are the area where we are experiencing problems. Actually for horizontal well sections, as we do open hole completion, so we don't cement our horizontal well sections. We are experiencing problems with CCA (classification, control and appeal) pressure. Loss of drilling work whilst cementing. Ground birch, measure depth critical service job, zonal isolation, equipment reliability. Displacement. Technology. Having adequate isolation. Bonding issues. The main problem is casing hardware. If we cement then the issue is the bond between the pipe formation. We use packer assembly, no cement. Evenly pumping cement to fill the whole section. We have open hole slotted liner wells, due to which we do not do cementing on these wells. Getting cement all around - keeping mud ahead of cement so no contamination. Gas migration.

Pioneer Natural Resources, Irving, TX Plains Exploration & Production, Bakersfield, CA Questar, Oklahoma City, OK Quicksilver Resources, FT Worth, TX

RasGas Co Ltd Repsol YPF, Argentina

Safer E&P Operation, Yemen Santos, Australia Saudi Aramco, Saudi Arabia Saudi Aramco, Saudi Arabia Scan Consult, Denmark Shell, Canada Shell, Houston, TX Shell, Houston, TX Shell, Netherlands Shell, New Orleans, LA Shell, Nigeria Sinclair Oil & Gas Company, Salt Lake City, UT Spiral Energy Stat Oil ASA, Norway STOS - Shell, New Zealand Sun Energy, Houston, TX Talisman Energy, Canada

RESPONDENT Tecpetrol, Argentina Total, France Total, France Total, Houston, TX Total, Indonesia Total, Nigeria Total, Qatar Tullow Oil, UK Ultra Petroleum, Englewood, CO Ultra Technology, Englewood, CO

WHAT KEY ISSUES OR PROBLEMS ARE YOU EXPERIENCING WITH CEMENTING YOUR HORIZONTAL WELL SECTIONS (IF DEVIATED MORE THAN 60 DEGREES) Overall quality of services provided. Loose ceilings. The quality of the cement and the length of the lines. Bond cementing issues. We do not cement horizontal wells. They all are open holes. Problem is selecting casing and connection. Lack of consistency in rheology is the problems we experience with cementing our horizontal well sections. Getting cement at top of the wellbore. Lost circulation avoidance. Radio placement. Annular gas after completion. Liner rotation not being achievable - it means the cement displacement becomes more critical. We're looking to maximize the stand off and optimize displacement. Zonal isolation. Poor cement bond up in vertical hole.

Wintershall, Netherlands Woodside Energy, Australia XTO Energy, Oklahoma City, OK

RESPONDENT 3-D Oil & Gas, Winters, TX Apache Khalda, Egypt BP, Russia British Gas, Nigeria Cabinda Gulf Oil Company, Angola CEPSA, Spain Chesapeake, Oklahoma City, OK Chevron, Houston, TX CNOOC, China Conoco Phillips, Canada Conoco Phillips, Farmington, NM Dana Petroleum, Egypt Devon Energy, Navajo Dam, NM Devon Energy, Oklahoma City, OK DTE Energy, Ft Worth, TX El Paso Energy, Houston, TX ENI, Italy EOG Resources IEOC, Egypt Khalda Petroleum, Egypt KNOC, Nigeria Marathon, Houston, TX Marathon, Houston, TX Marathon, Houston, TX Mighty River Production, New Zealand Newfield Exploration Company, Denver, CO Newfield Exploration Company, Tulsa, OK OMV Petrom, Romania OXY, Houston, TX Partex Oil & Gas, Portugal Petrochina Changqing Oilfield, China Petroleum Development Oman, Oman Petronas, Malaysia Petzed, Egypt Quicksilver Resources, FT Worth, TX Safer E&P Operation, Yemen Saudi Aramco, Saudi Arabia Scan Consult, Denmark Spiral Energy Stat Oil, Nigeria Total, Argentina TXM O&G Exploration, Hungary Williams, Parachute, CO

DO YOU BELIEVE, FROM YOUR EXPERIENCE, THAT MULTISTAGE TOOLS ARE PROBLEMATIC Some DV tools are problematic. Leaking stage tools. Equipment failure (equipment not closing, or not opening.) Stage operation cementing valves. Not typically used in Angola. Integrity of the DV after cementation. Leaks. The tool not opening and closing. Multi stage cementing is not adopted in our sea area. Leaking ECP's; leaking between stage tool and ECP. Formation issues. Failure to operate properly. DV tool wont open. The packer (external) casing packer. Cement placement. Tool malfunction. To open and close them. Lack of pressured integrity. Yes. Leakage. Leaking. Has cementing valve CHMCVS. Bridging offer accidentally closing. Making sure that the tools are working properly. They don't release. Losses while doing the primary cementing jobs. Leaking after the job pressure tests. The pump rate. They leave a hole in the case and then integrity is compromised. The packer nut setting/leaks after long term usage. Leaking. To sieve by classification and if it can be opened normally. Failure of the packing element is most common problem. Leakage of tools is the most common problem we are facing. Shut off plug sometimes not pass from the DV tool, DV ports not open after increase the pressure (hydraulic type). Sleeves not fully opening or closing. When we want to open the tool it takes a lot of time and the same problem is faced while closing it. Isolation and access for the second stage are the major problems. Yes a common problem is you dont get a good seal and there is a weak point in the casing. A leak while treating. Cementing equipment. In the works well we need rotate and clean the well. When we down tools it takes time and money. Need a lot of co-operation between ourselves and suppliers when using multi-stage - we dont always get enough. They don't stand from 1 stage.

RESPONDENT 3-D Oil & Gas, Winters, TX Abu Dhabi National Oil Company, UAE ADCO, UAE Addax Petroleum, Nigeria ADMA, Abu Dhabi Agip, Nigeria Agip, Nigeria Anadarko Petroleum, Indonesia Andes Petroleum, Ecuador Antero Resources, Rifia, CO Apache Khalda, Egypt Apache, Canada Apache, Houston, TX Arena Energy Offshore, The Woodlands, TX ATP Oil & Gas, Houston, TX Baytex Energy, Canada BHP Billiton, Australia Bill Barrett Corporation, Denver, CO BP Norge, Norway BP, Angola BP, Canada BP, Columbia BP, Egypt BP, Houston, TX BP, Russia BP, Scotland BPZ, Peru British Gas, Nigeria Cabinda Gulf Oil Company, Angola Cano Petroleum Inc, Ft Worth, TX Carigali Hess Operating Co, Malaysia CEPSA, Spain Chesapeake, Oklahoma City, OK Chesapeake, Oklahoma City, OK Chesapeake, Oklahoma City, OK Chevron, Bakersfield, CA

IN WHICH APPLICATIONS, OPERATIONAL ENVIRONMENTS OR SERVICE AREAS WILL YOU NEED THE MOST ASSISTANCE FOR FUTURE CEMENTING PROJECTS On my 2 state jobs. Cementing production and casing are the areas we need most assistance from service companies for future cementing projects. We are facing problems of losses I.e. water and mud cementing angle fits incorrectly. Assistant in plugging cement. In gas wells, we require the most assistance from the service companies for our future cementing projects. Assistance in the use of cement additives in designing cement slurries. Cementing sheath integrity during the life well. We would require efficient personnel from all the service companies. Treatment of returns for work. Just cement. Cementing long lines with small annulus clearance. Directional issues 90 degree 2. High angle wells and deep wells. Adequate zonal isolation and highly deviated wells. Deep water cementing. Extended reach horizontal wells. They should be consistent in providing quality of products through out the region. HP/HT & horizontal, low density cementings. Horizontal well cementing. On simulation/initial design - more accurate software needed. Fresh mud in oil sands project. Horizontals. Cement isotropic. Production casing/life of well/integrity of design casing. Halliburton. Location. All areas. We only work with service companies. Need more reliable service/consistent from region to region. On the environment, our areas are susceptible. More assistance in the laboratory testing. Wiper plug tech, reduce channeling tech. In the saturated salt. We require service companies to do their job efficiently. Remedial jobs on shales with low borehole stability. Horizontal cementing. Horizontal cementing. Low density. Loss circulation and life of well cement. The main area where we require their most assistance will be sealing of gas wells. The upper part is quite standard but the reservoir is the main problem. Deepwater cementing, resistant (corrosive) slurries. Deepwater cementing. We will require their help in cementing high pressure and high temperature wells and possibly in cementing weak formations. We need their assistance in planning and performing the job. Cement software. Primary cementing and high temperature slim hole application are the areas where we need the most assistance from service companies for our future cementing projects. HP/HT cementing. Horizontal cementing.

Chevron, China Chevron, Houston, TX Chevron, Houston, TX Chevron, Indonesia Chevron, Kuwait Chevron, Lafayette, LA

Chevron, Thailand Chroma E&P Inc., Houston, TX Cimarex, Midland, TX

RESPONDENT Cimarex, Taylorsville, MS Cimarex, Tulsa, Ok Cimarex, Tulsa, Ok Cimarex, Tulsa, Ok CNOOC, China CNOOC, China CNOOC, China CNOOC, Nigeria CNR International UK Ltd, Scotland CNX Gas, Cannonsburg, PA Comstock Resources, Frisco, TX Conoco Phillips - Global Wells, Houston, TX Conoco Phillips, Algeria Conoco Phillips, Anchorage, AK Conoco Phillips, Canada

Conoco Phillips, China Conoco Phillips, China Conoco Phillips, China Conoco Phillips, Farmington, NM Conoco Phillips, Farmington, NM Conoco Phillips, Farmington, NM Conoco Phillips, Houston, TX Conoco Phillips, Houston, TX Conoco Phillips, Midland, TX Conoco Phillips, Nigeria Conoco Phillips, Scotland Contact Energy Ltd, New Zealand Continental Resources, Enid, OK Continental Resources, Enid, OK Crawley Petroleum Corp, Oklahoma City, OK Dana Petroleum, Egypt Dapeco, Oman Delta Petroleum Corp, Denver, CO Denali Oil & Gas, Houston, TX Devon Energy, Canada Devon Energy, Houston, TX Devon Energy, Houston, TX Devon Energy, Navajo Dam, NM Devon Energy, Oklahoma City, OK DTE Energy, Ft Worth, TX Dune Energy, Lafayette, LA Ecopetrol, Columbia El Paso Energy, Houston, TX El Paso Energy, Houston, TX Encana, Canada Encana, Dallas, TX Encore Denbury, FT Worth, TX

IN WHICH APPLICATIONS, OPERATIONAL ENVIRONMENTS OR SERVICE AREAS WILL YOU NEED THE MOST ASSISTANCE FOR FUTURE CEMENTING PROJECTS Cement software technology. Horizontal cementing. Horizontal cementing. Horizontal cementing. High temperature and high pressure well cementing. The technology level and the attitude of the service people, the simulation software. To improve on the cement slurry system. The use of temperature modeling. In depleted reservoirs. Horizontal cementing. Horizontal drilling. HP/HT cementing, deepwater cementing, cementing tools, and cement software technology. The use of external casing packers - ECPS. Workover and well service side. Conventional gas with a small mix of shale. According to our current business, in the long run, the normal cementing technology services should need to reach more areas like deepwater area, high temperature area, high pressure area, etc. Dedication of service personnel. Reliable surface and down hole equipment. Lightweight slurries. Mixing/pumping equipment. Mud drills. Horizontal well and cement fracturing. Horizontal well applications. Primary and remedial cementing. Future cementing project assistance in cementing calculation. With CO2 injection. Primary casing cementing and lost circulation plugs are the areas where we will need the most assistance from the service companies. Cement software technology. Horizontal wells. Horizontal well technology. Quality control, general knowledge and experience. Performing typical jobs such as re-testing the chemical plant is an area where we need the most assistance. HT/HP cementing. HP/HT cementing, horizontal, corrosive resistance slurries, cementing tools. SAGD+ (or) horizontals, shale. All of them: (specific) that's it, no further answers. HP/HT cementing, deepwater cementing and horizontal cementing. Pumping and designing. Cement software and corrosive resistant slurries. Horizontal cementing. HP/HT cementing. Horizontal cementing. Next year we need in offshore. Northern Louisiana. Operational, lab work and design. CBM application. High temperatures, horizontal wells. Horizontal cementing.

RESPONDENT

IN WHICH APPLICATIONS, OPERATIONAL ENVIRONMENTS OR SERVICE AREAS WILL YOU NEED THE MOST ASSISTANCE FOR FUTURE CEMENTING PROJECTS We rely heavily on contractors for everything as we are a small company. Acidyzable lost circulation cement plug in reservoir. We will require the support in liner hangers, deep wells where the pressure is high and gas booms, would like to get proper cementation across that. For surface casing and production casing composition could be improved in both cases. In designing for HP/HT and deepwater jobs. Cementing tools HP/HT cementing and cementing software. Wasaca, Manitoba and Fort Nelson, BC. Directional drilling is the area where we will require the most assistance from service companies for our future cementing projects. HP/HT cementing. Most assistance will be needed in the area of plugged nozzles. The quality of overall service is the only area where we need their most assistance. Deepwater cementing. Horizontal applications. Assistant in special cementing system. Corrosive resistant slurries. Application horizontal. Hydraulic analysis, casing stand off, actual formulation so laboratory testing. Cement software technology. Designing/formulating the cements. We need their most assistance in cementing the spaces. It is still a fairly uncomplicated work requirement here. The biggest issues is communication between the service provider and the operation and that is because of personalities, politics and language barriers and the old style of doing work in isolation i.e. not involving the service companies. Cementing in high angles. Status quo works wells.

Endeavour Energy UK Ltd, Scotland ENI, Egypt

ENI, India ENI, Italy ENI, Italy ENI, New Orleans, LA EOG Resources, Canada EOG Resources, China EOG Resources, Denver, CO Esso Nigeria Limited, Nigeria Exxon Mobil, Australia Exxon Mobil, Houston, TX Exxon Mobil, Houston, TX Exxon Mobil, Nigeria Fasken Oil & Gas Ltd, Midland, TX Forest Oil, Denver, CO Foxtrot International LDC, Ivory Coast Garco Energy, Englewood, CO Gaz De France, Netherlands Greymouth Petroleum, New Zealand

Harouge Oil Operations, Libya Hess Corp, Houston, TX Hess Corp, Houston, TX High Exploration & Production, Oklahoma City, OK On horizontal when we drill those. In our liner cementing jobs we would need the most assistance from Hoang Long JOC, Vietnam service companies for our future cementing projects. Husky Energy, Canada Oil sands - formation issues. Horizontals. The standard deepwater casing and cementing operations are the areas where we will require the most assistance from service companies for our Husky Energy, China future cementing projects. IEOC, Egypt INPEX Corporation, Indonesia Kaiser Exploration Ltd, Canada Khalda Petroleum, Egypt KNOC, Nigeria

Kuwait Oil Company, Kuwait

Maersk Oil & Gas, Denmark

HT and HP try to solve problem of multi-stage tools/cementing of lines. We need consistency of laboratory testing and we need reliability in annular isolation. Primary cementing. Supplied systems. Simplified mud removal. Drillers and wait and weight method. Horizontal wells, highly inclined wells and enriched formations are the areas where we will need the most assistance from service companies for our future cementing projects. Engineering services doing the proper planning of cementing. Assistance in simulating the job - ie pressure losses whilst cementing. It all comes down to job optimization.

RESPONDENT Marathon Norge, Norway Marathon, Houston, TX Marathon, Houston, TX Marathon, Houston, TX Marathon, Houston, TX Marathon, Houston, TX Mariner Energy, Houston, TX Mighty River Production, New Zealand Murphy Oil Company, Houston, TX Newfield Exploration Company, Denver, CO Newfield Exploration Company, Tulsa, OK Nigeria Petroleum National Company, Nigeria Noble Energy, Denver, CO Noble Energy, Houston, TX Oil & Gas Development Company Limited, Pakistan OMV Petrom, Romania OMV Petrom, Romania OMV, Austria ONGC, India Origin Energy, Australia Origin Energy, Australia OXY, Argentina OXY, Bakersfield, CA OXY, Houston, TX OXY, Oman OXY, Oman OXY, Tupman, CA Pacific Rubiales Energy, Columbia Panamerican, Argentina PDVSA, Venezuela PDVSA, Venezuela Pemex, Mexico Pemex, Mexico Pemex, Mexico Penn Virginia Corp, Cannonsburg, PA Perenco, Columbia Petrobras, Argentina Petrobras, Brazil Petrobras, Brazil Petrobras, Columbia Petrobras, Ecuador Petrobras, Houston, TX Petrobras, Houston, TX Petrobras, Houston, TX Petrobras, Nigeria Petrobras, Peru

IN WHICH APPLICATIONS, OPERATIONAL ENVIRONMENTS OR SERVICE AREAS WILL YOU NEED THE MOST ASSISTANCE FOR FUTURE CEMENTING PROJECTS Horizontal wells. All of them. High pressure temperature wells. High temp wells. Real time update. Vertical wells. Deepwater cementing in the gulf coast. They need to control the losses while doing the primary cement job. Deep water cementing. All the horizontal projects rockies, mid-con. Longer lateral. Pressure constraint. Deepwater cementing. International market/deep water - high temp/high pressure. High temperature cementing is the area where we need the most assistance from service companies for our future cementing projects. Implementation of sound procedures. Liner jobs. To optimize the sonar isolation and flow velocity. We require assistance in case of HP/HT wells. Drilling is the area where we would need the most assistance from service companies for our future cementing projects. Rotating cementing during cementing and cement coverage modeling are the areas where we need their most assistance. We don't need anything, our field is standard. Lost circulation. More assistance from global services steamed injection environment. High temperature cementing is the area where we need the most assistance from service companies for our future cementing projects. We do very simple cementing so there is no area where we need assistance from service companies for our future cementing projects. Operations. Gas wells. The same light slurries. Primary cementing. Sanitation/HSE. Deep water technology. Improve in HSE programs. Specialty additives for cementing high temperatures. Horizontal cementing and tools. Foam cementing. In squeeze jobs. Cementing tools. In perform remedial (squeeze) cement jobs to include selection of tools. Land (all areas). Now we don't have problems, but I think in 3 or 5 years we need new technology in general. Deepwater cementing. Hydro-simulation. The use of cement additives. In the area casing stress calculation. I think in forest.

RESPONDENT

Petrochina Changqing Oilfield, China Petroecuador, Ecuador Petrogulf Corp, Denver, CO Petrohawk Energy Corporation, Houston, TX Petrohawk Energy Corporation, Tulsa, OK Petroleum Development Oman, Oman Petronas, Malaysia Petronas, Malaysia Petrotrin, India Petzed, Egypt Pioneer Natural Resources, Irving, TX Plains Exploration & Production, Bakersfield, Pluspetrol, Argentina Pluspetrol, Peru Premier Oil, Vietnam

IN WHICH APPLICATIONS, OPERATIONAL ENVIRONMENTS OR SERVICE AREAS WILL YOU NEED THE MOST ASSISTANCE FOR FUTURE CEMENTING PROJECTS During the process of repairing wells, the coiled tubing is required to do cement bridge plugging. Need to measure the volume of the cement slurries to adjust the cement slurry system. On the directional pumping. All of them. Cementing longer laterals and bringing cementing up to surface casing. Designing slurries. Hydraulics on cement pumping. They need to be proactive when it comes to find out what are the needs of the customers are, and giving alternative solutions. Deepwater cementing is the key challenge for a very tight situation like frac margin/pressure and small analysis spaces as well. We require assistance from service companies in enhancing the slurry design. Horizontal cementing. Accurate cement lab test design. Over the next few years our challenge will be availability - more people than materials to keep up. Loss circulation. Our fields are 70% desert and 30% forest and that is where we have more problems. Spacer products for drilling fluid that are good for HSE and improve the motors in the mechanical part. We would require competent people and reliable equipment from all the service companies. We need a new chemical to deal with the raw circulation material. This is the area where we need the most assistance from service companies for our future cementing projects. We will require the most assistance from service companies for slick line. Slurrie design, pump schedule design. NW Colorado area and Horn River basin in B.C. Horizontal cementing and cement mixing and equipment. In our liners, jobs is the area we need the most assistance from service companies for future cementing projects. Cement software. We require assistance in case of long P&A wells, disposable tubing, fiber blast tubings and gas tight slurry design. Cementing design for fracturing. In fluids. We don't need much for now. For high temperature and high pressure environments in general but nothing in particular. Casing-related issues. We will require their assistance in the areas where the formation is weak and when it cannot take the weight. Cementing of coal seem wells is the area where we will require their most assistance. We require their help in 2 stage cementing tools and to enhance fiber technology. We will require their support in terms of experienced manpower. Not much, if possible offshore. Daily operation in following up on cementing programs on a day to day basis. Having better trained people on the ground. Deepwater wells.

PTTEP, Thailand Qatar Gas, Qatar Questar, Oklahoma City, OK Quicksilver Resources, FT Worth, TX Range Resources, Cannonsburg, PA RasGas Co Ltd Reliance Energy, Midland, TX Reliance Industries Limited, India Repsol YPF, Argentina Repsol YPF, Brazil Repsol YPF, Peru Repsol YPF, Spain Rosneft - Severnaya Neft, Russia Safer E&P Operation, Yemen Santos, Australia Saudi Aramco, Saudi Arabia Saudi Aramco, Saudi Arabia Savia, Peru Scan Consult, Denmark Shell Norske, Norway

IN WHICH APPLICATIONS, OPERATIONAL ENVIRONMENTS OR SERVICE AREAS WILL YOU NEED THE MOST ASSISTANCE FOR FUTURE CEMENTING PROJECTS Gas migration is the area where we will need the most assistance from Shell, Brunei service companies for our future cementing projects. Shell, Canada Centralization. 1-2-1-3 Rigid cement. Horizontal. Lost circulation up hole. Formation integrate run a intermediate string. (few Shell, Canada not many) Shell, Denver, CO Cement software technology and tools. Shell, Egypt HP/HT. Shell, Houston, TX Deepwater cementing and HP/HT cementing. Shell, Houston, TX Deepwater Gulf of Mexico. Shell, Houston, TX Overall management is the important thing. For both abandonment and CCS projects its having product selection Shell, Netherlands services looking at custom solutions. Shell, New Orleans, LA Deepwater and cementing tools. Shell, Nigeria Design cement slurry using API standard. Sinclair Oil & Gas Company, Salt Lake City, UT New wells - cementing jobs. No remedial. SM Energy, Tulsa, OK Horizontal cementing. Stat Oil, Nigeria In design multi stage. Planning of cementing technology and support are the areas where we would require the most assistance from service companies for our future STOS - Shell, New Zealand cement projects. Sun Energy, Houston, TX Optimal spacers and flushes, cement rheology. Talisman Energy Norge, Norway In horizontal wells. RESPONDENT Surface casing vent flow issues; they need to work on having qualified personnel in our operating areas and sufficient equipment available. HP/HT cementing. Experienced personnel. In HP/HT environments. HP/HT wells. Everything related to waste disposal. Laboratory testing for cement slurry formulation. Deep water cementing. Cementing shale gas wells is the area where we need most assistance. Shallow section will be area where we will require the most assistance from the service companies for our future cementing projects. In the area of selecting appropriate slurries. They need to work on cost efficiency. Loss of circulation cement plugs. Light weight cement slurries. High temperature and high pressure environments in general. Radio placement. Lost circulation avoidance. Corrosive resistant slurries and horizontal cementing. Northeast. Gas migration is the area where we will need the most assistance from service companies for our future cementing projects. Synthetic oil based cementing units. Pumping equipment/cement mixing. Improving more in quality. Keeping up with new technologies. With horizontal drilling and high pressure/temperature. With HP/HT it is in terms of modeling flow rate modeling to maximize displacement with cement types and additives to get the best formulation. We will require their help in cementing high pressure and high temperature wells, and possibly in cementing weak formations.

Talisman Energy, Canada Talisman Energy, Peru Tecpetrol, Argentina Total E&P Norge, Norway Total E&P UK Ltd, Scotland Total, Argentina Total, France Total, Houston, TX Total, Indonesia

Total, Indonesia Total, Nigeria Total, Qatar Tri Ocean Energy, Egypt TXM O&G Exploration, Hungary Ultra Petroleum, Englewood, CO Ultra Petroleum, Tulsa, OK Ultra Technology, Englewood, CO VICO, Indonesia VICO, Indonesia Williams, Denver, CO Williams, Parachute, CO Williams, Parachute, CO

Wintershall, Netherlands Wintershall, Qatar

RESPONDENT Woodside Energy, Australia XTO Energy, Midland, TX XTO Energy, Oklahoma City, OK XTO Energy, Tyler, TX

IN WHICH APPLICATIONS, OPERATIONAL ENVIRONMENTS OR SERVICE AREAS WILL YOU NEED THE MOST ASSISTANCE FOR FUTURE CEMENTING PROJECTS We need their assistance at the time of cementing. All of them - just depends on the tasks that need to be appraised. Horizontal wells. HP/HT cementing & horizontal cementing.

RESPONDENT 3-D Oil & Gas, Winters, TX Abu Dhabi Marine Operating Company, UAE Abu Dhabi National Oil Company, UAE ADCO, UAE Addax Petroleum, Nigeria ADMA, Abu Dhabi Agip, Nigeria Agip, Nigeria Anadarko Petroleum, Indonesia Andes Petroleum, Ecuador Apache Khalda, Egypt ATP Oil & Gas, Houston, TX Baytex Energy, Canada BG Group, Algeria BG Group, Scotland Bill Barrett Corporation, Denver, CO BP, Columbia BP, Egypt BP, Houston, TX BP, Indonesia BP, Russia British Gas, Nigeria Chesapeake, Oklahoma City, OK Chevron, Bakersfield, CA Chevron, China Chevron, Houston, TX Chevron, Nigeria Chevron, Thailand Chisolm Oil & Gas, Buda, TX Chroma E&P Inc., Houston, TX Cimarex, Midland, TX Cimarex, Tulsa, Ok Cimarex, Tulsa, Ok CNOOC, China CNOOC, China Comstock Resources, Frisco, TX Conoco Phillips - Global Wells, Houston, TX Conoco Phillips, Algeria Conoco Phillips, Anchorage, AK Conoco Phillips, Canada Conoco Phillips, China Conoco Phillips, China Conoco Phillips, Farmington, NM Conoco Phillips, Scotland Contact Energy Ltd, New Zealand Continental Resources, Enid, OK Crawley Petroleum Corp, Oklahoma City, OK Dapeco, Oman Delta Petroleum Corp, Denver, CO Denali Oil & Gas, Houston, TX Devon Energy, Canada Devon Energy, Houston, TX Devon Energy, Houston, TX

IN WHICH SITUATIONS OR APPLICATIONS DO YOU FIND A CUSTOMIZED CEMENTING APPROACH ADDING VALUE Casing design integration Customized cementing for gas wells Liner cementing Extended liners Well control while tripping Complex well profiles Difficult wells/ Tight parameters ECD and lost circulation issues HT/HP Wells Ensures no minimum invasion and isolates area Wells with lost circulation issues Deepwater cementing HT/HP Wells Possible lost circulation/ Specialty additives where gas migration is a problem ERD Wells HT/HP Wells Liner cementing HT/HP Wells Lost circulation HT/HP Wells Cement contraction ion low pressure wells/ Thermal isolation issues Gas migration Liner cementing lost circulation/ gas migration/ abnormal temperatures In the shallow section Deepwater cementing Drill string washouts Incongruous hole sections In horizontal wells Primary casing jobs Lost circulation/ gas migration Deep HP Wells In horizontal wells Deepwater cementing Highly deviated wells Most all wells are applicable Temperature issues External casing packers Multi-stage cementing Deeper/ more challenging wells HT/HP Wells Multi-stage cementing Correct volumes and additives Most all wells are applicable Most all wells are applicable Overall performance Overall performance New program wells only HT/HP Wells Overall performance Formation issues in Grand Prairie Lost circulation Prevent water channeling

RESPONDENT Devon Energy, Houston, TX Devon Energy, Navajo Dam, NM DTE Energy, Ft Worth, TX El Paso Energy, Houston, TX El Paso Energy, Houston, TX Encana, Dallas, TX ENI, Algeria ENI, Egypt ENI, India ENI, Italy ENI, Italy EOG Resources, Canada EOG Resources, China EOG Resources, Denver, CO Exxon Mobil, Australia Exxon Mobil, Houston, TX Exxon Mobil, Nigeria Fasken Oil & Gas Ltd, Midland, TX Forest Oil, Denver, CO Foxtrot International LDC, Ivory Coast Garco Energy, Englewood, CO Gaz De France, Netherlands GDF Suez E&P UK Ltd, Scotland Greymouth Petroleum, New Zealand Harouge Oil Operations, Libya Hess Corp, Houston, TX High Exploration & Production, Oklahoma City, OK Hoang Long JOC, Vietnam Husky Energy, China IEOC, Egypt INA, Croatia INPEX Corporation, Indonesia Kaiser Exploration Ltd, Canada Khalda Petroleum, Egypt KNOC, Nigeria Kuwait Oil Company, Kuwait Maersk Oil & Gas, Denmark Marathon, Houston, TX Marathon, Houston, TX Marathon, Houston, TX Marathon, Houston, TX Mariner Energy, Houston, TX Murphy Oil Company, Houston, TX Newfield Exploration Company, Denver, CO Newfield Exploration Company, Tulsa, OK Nigeria Petroleum National Company, Nigeria Noble Energy, Denver, CO Noble Energy, Houston, TX OMV Petrom, Romania OMV Petrom, Romania OMV, Austria

IN WHICH SITUATIONS OR APPLICATIONS DO YOU FIND A CUSTOMIZED CEMENTING APPROACH ADDING VALUE We like to ensure continuous improvements. We're drilling longer lateral holes and need to establish more efficient technical support Most all wells are applicable Problem wells and squeeze jobs Exploration wells High temp and non-conventional wells Lost circulation In curing mud losses. Different in very long cementing operations in deeper wells Liner cementing HT/HP Wells Cement additives Most all wells are applicable Lost circulation In horizontal wells HT/HP Wells Most all wells are applicable Problem wells Service company experience adds value Circulation problems In horizontal wells Just to make sure all steps were taken HT/HP Wells Doesn't really add value Multi-stage cementing Doesn't really add value Non-standard wells with higher than expected temperatures HT/HP Wells Long step-out wells In well control situations, high tolerance between formation pressure and fracture pressure Exploration wells Doesn't really add value Non-standard wells Exploration wells Multi-stage cementing None In horizontal wells High pressure/ Horizontal wells Most all wells are applicable Deepwater cementing HT/HP Wells Lost circulation/ Poor bond quality Most all wells are applicable Different hole conditions encountered Primary casing jobs In horizontal wells Non-standard/ critical operations Computer design Reduce overall job costs Depends In horizontal wells Most all wells are applicable Most all wells are applicable

RESPONDENT ONGC, India Origin Energy, Australia OXY, Houston, TX OXY, Oman OXY, Oman Pacific Rubiales Energy, Columbia Panamerican, Argentina Partex Oil & Gas, Portugal PDVSA, Venezuela PDVSA, Venezuela Pemex, Mexico Petrobras, Argentina Petrobras, Brazil Petrobras, Brazil Petrobras, Columbia Petrobras, Houston, TX Petrobras, Houston, TX Petrobras, Nigeria Petrobras, Peru Petrochina Changqing Oilfield, China Petrohawk Energy Corporation, Houston, TX Petrohawk Energy Corporation, Tulsa, OK Petroleum Development Oman, Oman Petronas, Malaysia Petronas, Malaysia Petrotrin, India Petzed, Egypt Pioneer Natural Resources, Irving, TX Plains Exploration & Production, Bakersfield, CA Pluspetrol, Peru Premier Oil, Vietnam PTTEP, Thailand Qatar Gas, Qatar Questar, Oklahoma City, OK Quicksilver Resources, FT Worth, TX Range Resources, Cannonsburg, PA RasGas Co Ltd Reliance Energy, Midland, TX Reliance Industries Limited, India Repsol YPF, Argentina Repsol YPF, Brazil Repsol YPF, Peru Repsol YPF, Spain Rosneft - Severnaya Neft, Russia Santos, Australia Saudi Aramco, Saudi Arabia Saudi Aramco, Saudi Arabia Savia, Peru Scan Consult, Denmark Shell UK Ltd, Scotland Shell, Brunei Shell, Canada Shell, Canada Shell, Egypt Shell, Houston, TX Shell, Houston, TX

IN WHICH SITUATIONS OR APPLICATIONS DO YOU FIND A CUSTOMIZED CEMENTING APPROACH ADDING VALUE Primary casing jobs Exploration wells with offset problems Temperature issues when changing mud systems Critical wells/ HT/HP wells/ Deepwater wells Low density cement Depends HT/HP Wells Exploration wells Exploration wells/ testing new technology Incremental efficiencies & productivity Depends Water loading Complicated wells Indications of kicks Conventional cementing Overall performance Well design One off wells Isolation issues Complicated wells New field explorations HT/HP Wells Critical wells High pressure environments HT/HP Wells Saves money Primary cementing jobs Cement plug slurries/ Modeling High temp and non-conventional wells Technical support Extended liners Most all wells are applicable Primary cementing jobs Low circulation and horizontal wells Primary cementing jobs Plug or squeeze jobs Better cement bond achieved In horizontal wells Unexpected HT/HP zones Specialty wells/ ERD/ Deep/ Horizontal Unexpected problems In fracture zones Deepwater and HT/HP Different hole conditions encountered from well to well Pressure/ circulation issues High pressure wells High temp/ low circulation Gas migration Most all wells are applicable Depends Exploration wells/ Deepwater and remedial cementing Lost circulation One off wells HP/HT, Deepwater & ERD. Deepwater Lost circulation

RESPONDENT Shell, Houston, TX Shell, Netherlands Shell, New Orleans, LA Shell, Nigeria Sinclair Oil & Gas Company, Salt Lake City, UT Spiral Energy Stat Oil ASA, Norway Stat Oil, Nigeria STOS - Shell, New Zealand Sun Energy, Houston, TX Talisman Energy UK Ltd, Scotland Talisman Energy, Canada Talisman Energy, Peru Tecpetrol, Argentina Total E&P UK Ltd, Scotland Total, Argentina Total, France Total, France Total, Indonesia Total, Indonesia Total, Nigeria Total, Qatar Tri Ocean Energy, Egypt Tullow Oil, UK TXM O&G Exploration, Hungary Ultra Petroleum, Englewood, CO Ultra Technology, Englewood, CO VICO, Indonesia VICO, Indonesia Williams, Parachute, CO Williams, Parachute, CO Wintershall, Netherlands Wintershall, Qatar Woodside Energy, Australia XTO Energy, Midland, TX XTO Energy, Oklahoma City, OK XTO Energy, Tyler, TX

IN WHICH SITUATIONS OR APPLICATIONS DO YOU FIND A CUSTOMIZED CEMENTING APPROACH ADDING VALUE Remedial work on casing On the top hole and suspension plugs; Customize the thickening of the cement in order to reduce down time In horizontal wells Complex well profiles SAGD wells Most all wells are applicable Formation issues Field adapted procedures and laboratory testing procedures Stripping with influx migration Lost circulation, reduced pump rates, gas influx, gas cut cement In horizontal wells Capping, freezing and hot tapping HT/HP Wells Technical support HT/HP Wells Exploration wells Development phases Slurry formulations Shallow hole section Well control Additional mechanical properties of the set cement to obtain other than the compressive strength Liner cementing and squeeze jobs Most all wells are applicable Increased pump rates In horizontal wells High temperature wells Primary cementing jobs High pressure zones In depleted zones Lost circulation issues Problematic wells Shelf wells Most all wells are applicable Casing loading Depends High temperature wells In horizontal wells

RESPONDENT 3-D Oil & Gas, Winters, TX Abu Dhabi National Oil Company, UAE ADCO, UAE Addax Petroleum, Nigeria

REASON FOR SUPPLIER SELECTION - CEMENTING SERVICES Powerflex. Local and it was just a plug job. Halliburton. We selected Halliburton due to better performance in terms of equipment and slurries and technical support. Halliburton. They have good background and set up for labs, are the reasons we select them over others. Schlumberger. Track record (location). Schlumberger. The reason we select Schlumberger over the others is because we have a tender process that we follow. Also, they are cost effective and their products are technically qualified. Baker Hughes. Halliburton. High skill personnel. Schlumberger. They are cost effective. Halliburton. They won tendering process. Cost, performance. Schlumberger. Best availability (already on the rig). Halliburton. Gas shale horizontal applications. BJ. Quality control. Halliburton. Performance - use whoever equipment is on the rig. Schlumberger. Price cost and quality service. TriCan. Price. Halliburton. They won a tender previously so on a contractual basis next time it will be Schlumberger. Halliburton. Already on the rig. Schlumberger. They are fairly priced and performance is also good in the region. Halliburton. Reputation and valve and customer service.. Halliburton. Technical support. Schlumberger. Decision made in Iran. Trican. Are primary cementing provider. BJ. Better cost. Halliburton. Has to pass technical evaluation and on the commercial (i.e. price) considerations. Halliburton. The only reason we selected them is that they are cost effective. Schlumberger. Best capability/resources. BJ. By prices. Halliburton. Long term contract. Schlumberger. Good product quality. Halliburton. Price, efficiency, reliability, quality. Independents. Job results. We got the results on oil after we tried twice with Schlumberger on the same job. BJ. It was an open tender and they met the technical requirements. Halliburton. Long term contract. Schlumberger. Best prices on tender and good track record. Technical offer comparable with Halliburton and BJ. Halliburton. Good leadership. Halliburton & Schlumberger. Price and service. Halliburton. Best performance/lowest price cost. Halliburton. In this part of the country they are the only ones here. Schlumberger. Performance, safety and cost. Halliburton. They have competitive pricing structure. Halliburton - Experienced personnel in the field. Halliburton. Availability and qualified personnel staff. BJ. The only reason we selected them is that they are cost effective.

ADMA, Abu Dhabi Agip, Nigeria Agip, Nigeria Anadarko Petroleum, Indonesia Andes Petroleum, Ecuador Apache Khalda, Egypt Apache North Sea Ltd, Scotland Apache, Canada Apache, Houston, TX Arena Energy Offshore, The Woodlands, TX ATP Oil & Gas, Houston, TX Baytex Energy, Canada BG Group, Algeria BG Group, Scotland BHP Billiton, Australia Bill Barrett Corporation, Denver, CO BP Norge, Norway BP, Angola BP, Canada BP, Columbia BP, Egypt BP, Indonesia BP, Scotland BPZ, Peru Britannia Operator Ltd, Scotland British Gas, Nigeria Cabinda Gulf Oil Company, Angola Cano Petroleum Inc, Ft Worth, TX Carigali Hess Operating Co, Malaysia Centrica Energy, Scotland CEPSA, Spain Chesapeake, Muldrow, OK Chesapeake, Oklahoma City, OK Chesapeake, Oklahoma City, OK Chesapeake, Oklahoma City, OK Chevron, Bakersfield, CA Chevron, China Chevron, Houston, TX Chevron, Houston, TX Chevron, Indonesia

RESPONDENT Chevron, Kuwait Chevron, Lafayette, LA Chevron, Nigeria

REASON FOR SUPPLIER SELECTION - CEMENTING SERVICES We are working with all of them as there is no one vendor that we target for all the services. BJ, Halliburton, Schlumberger. Availability. Baker Hughes. Good cementing tools. BJ. They understand our business needs very well, we have a very good track record with them and they have competitive pricing structure are the reasons for selecting them over others. Roy Wells. Availability, economical, relationship. Halliburton. Overall job performance. Halliburton & Schlumberger. BJ. Price cost. BJ. Price cost. BJ. Price cost. Schlumberger. Pricing costs. Other. (not listed) Professional technology advantage. Baker Hughes. Capabilities. Halliburton. Availability (already on rig). Schlumberger. Reliable and quality equipment. Halliburton & Schlumberger. Both the same. Halliburton. (Total system value) quality, performance and price. BJ. Lowest cost and technically acceptable bid. Schlumberger. Was already under contract. COSL. Local company and relative low price with good quality service and good partnership. Other. (not listed) We choose local company, for it has local operating experience and the price is competitive. BJ. Price and overall performance. BJ. Cost of services. BJ. Price cost and overall performance. Halliburton. Best bid and service. Halliburton. They have good technical service and support. Schlumberger. Overall value. Schlumberger. Reliability and quality of equipment. Halliburton. Track record. BJ. We have tender process and they won the bid. BJ. Assigned the rig. Price cost. Halliburton. Reliability. BJ. Cheapest out of all qualified. Halliburton. Halliburton is good both in terms of quality and cost. Halliburton. High horsepower pump availability. Halliburton. Price cost. Halliburton & Schlumberger. Using both on a chops test pilot field. Halliburton. Customer service, cost and reliability is phenomenal. Halliburton. We tried BJ but they changed their prices. Schlumberger. Price cost - technology. Halliburton. Aligned company. BJ. Price cost, quality, reputation. BJ. Price cost. BJ & Halliburton. Technology and public relations. Halliburton. By price, experience and technology. Halliburton. Best value. Halliburton. Their past performance. BJ. Availability. Halliburton. Performance.

Chevron, Thailand Chisolm Oil & Gas, Buda, TX Chroma E&P Inc., Houston, TX Cimarex, Midland, TX Cimarex, Taylorsville, MS Cimarex, Tulsa, Ok Cimarex, Tulsa, Ok Cimarex, Tulsa, Ok CNOOC, China CNOOC, Nigeria CNR International UK Ltd, Scotland CNX Gas, Cannonsburg, PA Comstock Resources, Frisco, TX Conoco Phillips - Global Wells, Houston, TX Conoco Phillips, Algeria Conoco Phillips, Anchorage, AK Conoco Phillips, China Conoco Phillips, China Conoco Phillips, Farmington, NM Conoco Phillips, Farmington, NM Conoco Phillips, Farmington, NM Conoco Phillips, Houston, TX Conoco Phillips, Houston, TX Conoco Phillips, Midland, TX Conoco Phillips, Nigeria Conoco Phillips, Scotland Contact Energy Ltd, New Zealand Continental Resources, Enid, OK Continental Resources, Enid, OK Crawley Petroleum Corp, Oklahoma City, OK Dana Petroleum, Egypt Dapeco, Oman Delta Petroleum Corp, Denver, CO Denali Oil & Gas, Houston, TX Devon Energy, Canada Devon Energy, Houston, TX Devon Energy, Houston, TX Devon Energy, Houston, TX Devon Energy, Navajo Dam, NM Devon Energy, Oklahoma City, OK DTE Energy, Ft Worth, TX Dune Energy, Lafayette, LA Ecopetrol, Columbia El Paso Energy, Houston, TX El Paso Energy, Houston, TX Encana, Canada Encana, Dallas, TX

RESPONDENT Encore Denbury, FT Worth, TX Endeavour Energy UK Ltd, Scotland ENI, Algeria ENI, Egypt ENI, India ENI, Italy ENI, New Orleans, LA Enquest, Scotland EOG Resources EOG Resources, China EOG Resources, Denver, CO EON Ruhrgas UK North Sea Ltd, UK Esso Nigeria Limited, Nigeria Exxon Mobil, Australia Exxon Mobil, Houston, TX Exxon Mobil, Houston, TX Fairfield Energy Ltd, Scotland Fasken Oil & Gas Ltd, Midland, TX Forest Oil, Denver, CO Garco Energy, Englewood, CO Gaz De France, Netherlands GDF Suez E&P UK Ltd, Scotland Greymouth Petroleum, New Zealand Harouge Oil Operations, Libya Hess Corp, Houston, TX Hess Corp, Houston, TX Hess Corp, Houston, TX High Exploration & Production, Oklahoma City, OK Hoang Long JOC, Vietnam Husky Energy, Canada Husky Energy, Canada Husky Energy, China IEOC, Egypt INA, Croatia INPEX Corporation, Indonesia Kaiser Exploration Ltd, Canada KNOC, Nigeria Kuwait Oil Company, Kuwait Kuwait Oil Company, Kuwait Maersk Oil & Gas, Denmark Maersk Oil North Sea Ltd, Scotland Marathon Norge, Norway Marathon Oil Uk Ltd, Scotland Marathon, Houston, TX Marathon, Houston, TX Marathon, Houston, TX

REASON FOR SUPPLIER SELECTION - CEMENTING SERVICES Schlumberger. Price cost and performance (overall). Halliburton. On the contracted rig. Schlumberger. Competitive tender, better price. Halliburton & Schlumberger. Technical and commercial evaluation. Schlumberger. They met all our technical requirements. They are commercially better and cost effective. Halliburton. They won on tender. Halliburton. Value, price cost and service quality. Halliburton. Long term agreement. Halliburton & Schlumberger. Price cost/overall performance. Schlumberger. We have a contract with them. Halliburton. Quality, job execution, computer technology, service. Schlumberger. Most consistent quality product. Schlumberger. High skills in cementing. Halliburton. They have monopoly in our area. BJ. Availability - (pricing) cost. BJ. They have boon on the rig for years. Halliburton. Value for money. Halliburton- Schlumberger. Availability. BJ & Halliburton. Use about the same for service. Schlumberger. Quality of product/services. Halliburton & Schlumberger. Continuity - we have two rigs and both companies already have equipment in place on both rigs. Schlumberger. Better for HP/HT wells. Halliburton. Availability of equipments. Schlumberger. Management decision of the company. Halliburton & Schlumberger. Value based - data analysis. Schlumberger. Schlumberger. Existing relationships. Price, performance. BJ. They have the monopoly in Vietnam; there is no other company which provides cementing services. BJ. Area. Sangel & BJ. Different locations. BJ. They have a competitive pricing structure is the only reason we have selected them over the others. Halliburton. Lower price (once technical specs met). Casco. They are a local Croatian company and we do most of our drilling Croatia. Halliburton. We have a tender process and they won the bid, as they were price competitive. Trican. Just a toss of the coin. Schlumberger. Availability of equipment and personnel. Halliburton. Their sales personnel are very good and they know our needs, are the reasons for selecting them over others. Schlumberger. We have a contract with them and they have been assigned to complete the rigs. Halliburton. Price. Schlumberger. Most reliable equipment. Schlumberger. Best product quality. Weatherford. Already on the rig. BJ. BJ. Competitive bid. Halliburton. Longstanding relationship.

RESPONDENT Marathon, Houston, TX Mariner Energy, Houston, TX Mighty River Production, New Zealand Murphy Oil Company, Houston, TX Newfield Exploration Company, Denver, CO Newfield Exploration Company, Tulsa, OK Nexen Petroleum UK Ltd, Scotland Nigeria Petroleum National Company, Nigeria Noble Energy, Denver, CO Noble Energy, Houston, TX Oil & Gas Development Company Limited, Pakistan OMV Petrom, Romania OMV, Austria ONGC, India Origin Energy, Australia Origin Energy, Australia OXY, Argentina OXY, Bakersfield, CA OXY, Houston, TX OXY, Oman OXY, Oman OXY, Tupman, CA Pacific Rubiales Energy, Columbia Panamerican, Argentina Partex Oil & Gas, Portugal PDVSA, Venezuela PDVSA, Venezuela PDVSA, Venezuela Pemex, Mexico Pemex, Mexico Pemex, Mexico Penn Virginia Corp, Cannonsburg, PA Perenco, Columbia Perenco, UK Petrobras, Argentina Petrobras, Brazil Petrobras, Brazil Petrobras, Brazil Petrobras, Columbia Petrobras, Ecuador Petrobras, Houston, TX Petrobras, Houston, TX Petrobras, Nigeria Petrobras, Peru Petrochina Changqing Oilfield, China

REASON FOR SUPPLIER SELECTION - CEMENTING SERVICES Schlumberger. We got good technical service. BJ. Because they are the only company on the rig. Halliburton. They have good management support, they have good experience and excellent product quality. Schlumberger. Price cost and overall performance. Halliburton. Cost and technical superiority. Halliburton. Program specifically set-up. Halliburton. Already on the rig. Halliburton. Good skill in landing cementing. Halliburton. Technology. Halliburton. Relationship, equipment, quality work. Halliburton & Schlumberger. We don't have any other company in Pakistan who specializes in cementing. Schlumberger. Track record. Schlumberger. We have a very long contract. Schlumberger. The only reason we selected them over the others is that they are cost effective. Halliburton. Their quality equipment and personnel. Halliburton. They have the monopoly in our area as we are based at a very remote location. BJ. Because all suppliers have a contract. Schlumberger. Best value for the money. Halliburton. Strictly because of performance. Schlumberger. We have tender process and they won the bid due to their cost effectiveness. Schlumberger. The only reason we selected them is that they are cost effective. Schlumberger. Price and availability. Halliburton. By experienced. Halliburton. Because we have master agreement. Halliburton. They come out on top for pretty much everything covered. BJ. Tendering process. Cutucker. We always try to balance orders, not one. Schlumberger. By prices and tendering process. Dowell. They won tendering process, some times win another. Halliburton. Was a tendering process. Halliburton. Have been long time with us. They are meeting our needs. Halliburton. Technology. Halliburton. Because they have better proposal, technology, prices, etc. Halliburton. Already on the rig. Halliburton. Because we have a global contract. BJ. BJ/Halliburton. Price cost. Halliburton. Because they have good proposal in other projects and then we put together with cementing services. Halliburton. They have technology we need (boot availability). Schlumberger. They won tendering process by prices. Halliburton. Bid/tender process. Schlumberger. Good track record. Schlumberger. Good quality and reliability. BJ. For its expertise in the area. Chang Qing Cementing Company. The technical level is qualified for the construction, the price is reasonable.

RESPONDENT Petroecuador, Ecuador Petrogulf Corp, Denver, CO Petrohawk Energy Corporation, Houston, TX Petrohawk Energy Corporation, Tulsa, OK Petroleum Development Oman, Oman Petronas, Malaysia Petronas, Malaysia Petrotrin, India Petzed, Egypt

REASON FOR SUPPLIER SELECTION - CEMENTING SERVICES Halliburton. Technical support and immediate response. Independent. Cost was the main reason and the service is second. BJ. Because Halliburton did not stand behind their work. Superior. Because they have a good track record. Halliburton. We have a tender process and Halliburton won the bid, as they are price competitive. Other. Local. (not listed). They provide cost effective services. Schlumberger. Available. BJ. Price cost. Schlumberger. Because Schlumberger works with me to find new solutions to save my company time and money. Halliburton & Schlumberger. It was a bid process so cost and past performance came into play. Commitment and number of crews that fit our needs. Schlumberger. For an area that had hot and deep wells- they worked field before - has past experience. Halliburton. Price. BJ. Because for us a good price and product supplier. BJ. By costs and experience. Schlumberger. We had a two year contract with them, as they were technically capable and had competitive pricing. BJ. We selected them over the others due to their cost effectiveness. Halliburton. We have had good past experience of working with them. Suppier. Better reputation in area. Halliburton. Performance (overall). Halliburton. There was a change of contract by the operations department as there were a lot of complaints against the previous contractor, we thought to change and see how the contractor would be. O-Tex. Overall performance. Halliburton. They are cost effective. BJ. Balance between quality, price. Schlumberger. Technical support and prices. Schlumberger. Because they use good technology. Schlumberger. Only one available in the required region. BJ. Quality - price. Rosneft. This is our own unit. Halliburton. Best performance. Halliburton. They are cost effective. Halliburton. They are price competitive and we have a contract with them. BJ, Halliburton, Schlumberger. We have been dealing with all of them together. BJ. We have been assigned to use the, as we have a contract with them. BJ. Because they have the only offshore technology available. Halliburton. Came out best in the tender process for commercial and technical factors. Schlumberger. Better for deepwater wells. Schlumberger. Most experienced engineers on location. Schlumberger. In Brunei, the market is very small for these solutions, we select them and we are happy with them. BJ. Alliance.

Pioneer Natural Resources, Irving, TX Pioneer Natural Resources, Irving, TX Plains Exploration & Production, Bakersfield, CA Pluspetrol, Argentina Pluspetrol, Peru Premier Oil, Vietnam PTTEP, Thailand Qatar Gas, Qatar Questar, Oklahoma City, OK Range Resources, Cannonsburg, PA

RasGas Co Ltd Reliance Energy, Midland, TX Reliance Industries Limited, India Repsol YPF, Argentina Repsol YPF, Brazil Repsol YPF, Peru Repsol YPF, Spain Repsol YPF, Venezuela Rosneft - Severnaya Neft, Russia RWE Dea, UK Safer E&P Operation, Yemen Santos, Australia Saudi Aramco, Saudi Arabia Saudi Aramco, Saudi Arabia Savia, Peru Scan Consult, Denmark Shell Norske, Norway Shell UK Ltd, Scotland Shell, Brunei Shell, Canada

RESPONDENT Shell, Denver, CO Shell, Egypt Shell, Houston, TX Shell, Houston, TX Shell, Houston, TX Shell, Netherlands Shell, New Orleans, LA Shell, Nigeria Sinclair Oil & Gas Company, Salt Lake City, UT SM Energy, Tulsa, OK Spiral Energy Stat Oil ASA, Norway Stat Oil, Nigeria STOS - Shell, New Zealand Talisman Energy Norge, Norway Talisman Energy UK Ltd, Scotland Talisman Energy, Peru Tecpetrol, Argentina Total E&P Norge, Norway Total E&P UK Ltd, Scotland Total, Argentina Total, France Total, Houston, TX Total, Indonesia Total, Indonesia Total, Nigeria Total, Qatar Tullow Oil, UK TXM O&G Exploration, Hungary Ultra Petroleum, Englewood, CO Ultra Petroleum, Tulsa, OK Ultra Technology, Englewood, CO VICO, Indonesia VICO, Indonesia Williams, Denver, CO Williams, Parachute, CO Williams, Parachute, CO Wintershall, Netherlands Wintershall, Qatar Woodside Energy, Australia XTO Energy, Midland, TX XTO Energy, Oklahoma City, OK XTO Energy, Tyler, TX

REASON FOR SUPPLIER SELECTION - CEMENTING SERVICES BJ. Price cost. Halliburton. Technical qualification and price. Halliburton. Better expertise easier to work with wide ranges of product and equipment. Halliburton. Technology. Halliburton. They have a good organization. Halliburton. Technical solution and cost. Halliburton. Technology. Schlumberger. Highly skillful personnel. Halliburton. It was going to be the deep/high temp strings. Any jobs more critical we use Halliburton. Halliburton. Price cost and quality service. Halliburton. They were available and it was a plugging job and BJ didnt have coil. Halliburton. Already on the rig. Schlumberger. Track record. Halliburton. They have bigger market share and good support services. Halliburton. Most consistent product quality. Schlumberger. Availability (on the rig). Schlumberger. Availability/price cost. Halliburton. Because its a supplier we have known for many years in this service. Schlumberger. Best for HP/HT work. Halliburton. Best quality service. Halliburton. Mainly by costs. Schlumberger. Ability to provide services in the area. Halliburton. Quality service/technology. Halliburton. The main reason for selecting them is that they are price competitive. We have specified vendors for every rig. Schlumberger. They won the bid because of low price. Schlumberger. Good availability of equipment. Halliburton. We have a tender process and they won the bid. Halliburton. On the rig already. Schlumberger. Because of the long standing relationship we have with them. Halliburton. Cost and performance. BJ. Technical support. Halliburton & Schlumberger. Cost, equipment available/resources. Halliburton. They are price competitive and they are good in their HSE programs. Halliburton. We have a tender process and as their pricing was competitive, they won the bid. Schlumberger. Value for money - price competitiveness. Halliburton. Consistent product quality. Halliburton. Job quality/performance/price. Schlumberger. Product quality and level of operational support. Halliburton. The only reason we selected them is that they are cost effective. Halliburton. They are competitive. BJ & Halliburton. Both companies perform well in cementing areas for past years. Cal-Frac, Key Energy. I use both of these equally. BJ, Halliburton, Schlumberger. Price and quality service.

RESPONDENT Addax Petroleum, Nigeria ADMA, Abu Dhabi Agip, Nigeria Agip, Nigeria Anadarko Petroleum, Indonesia Andes Petroleum, Ecuador BHP Billiton, Australia BP, Canada BP, Columbia BP, Indonesia BP, Scotland BPZ, Peru British Gas, Nigeria Cabinda Gulf Oil Company, Angola Cano Petroleum Inc, Ft Worth, TX Carigali Hess Operating Co, Malaysia Chevron, Nigeria Cimarex, Midland, TX CNOOC, China CNOOC, China CNOOC, China CNOOC, Nigeria Conoco Phillips, Algeria Conoco Phillips, Anchorage, AK Conoco Phillips, Farmington, NM Conoco Phillips, Nigeria El Paso Energy, Houston, TX ENI, Algeria ENI, India ENI, Italy EOG Resources, China Esso Nigeria Limited, Nigeria Exxon Mobil, Nigeria Forest Oil, Denver, CO High Exploration & Production, Oklahoma City, OK INPEX Corporation, Indonesia KNOC, Nigeria Kuwait Oil Company, Kuwait Maersk Oil & Gas, Denmark Marathon, Houston, TX Nigeria Petroleum National Company, Nigeria Origin Energy, Australia OXY, Oman OXY, Tupman, CA PDVSA, Venezuela Pemex, Mexico Pemex, Mexico Petrobras, Brazil Petrobras, Brazil Petrobras, Columbia Petrobras, Houston, TX Petrobras, Nigeria

BAKER HUGHES - STRENGTHS Good equipment insulator - personnels. Reliability of their products. Good big bore application. Good stability and retrievability. Their customer service and follow ups. They have a good quality in submersible pumps. Fairly priced. Drilling capabilities. Down hole tools. Their product performance is good. Reliable equipment. Good service in completion. The tubing retrievable valve are unique. No knowledge of Baker Hughes cementing. Networking, they're everywhere. They have better cementing equipment in some area. Good Baker oil tool cementing valves. Price and availability. Cementing additives, cementing tools, unbalanced wells, anti leakage cement. Price. Technical strength. Good stage cementing and squeezing. Experience and quality of the people. Experienced people and work well with other vendors. Staff and technology. Good matching field data. Personnel. Never used. They have good marketing strategy. Quality service. They have good product technology. Good system optimization for cementing operation. Good in firefighting and capping. Service/price. Chemical program. They have good brand reputation and technology. Good PAC valves. It is a professionally organized company. Cost. Good service. Good cement sheath consideration. They provide good package and good fitment services. Their strength is their erection drilling. Diverter equipment. Technical support. Company with good reputation. They have good reputation but three years ago didn't work with them. Equipment quality. Software cementing. Good image. Good reservoir simulation and analytical tools. Good equipment quality.

RESPONDENT Petrobras, Peru Petrochina Changqing Oilfield, China Petroecuador, Ecuador Petrogulf Corp, Denver, CO Petroleum Development Oman, Oman Petronas, Malaysia Petronas, Malaysia Pioneer Natural Resources, Irving, TX Pluspetrol, Argentina Premier Oil, Vietnam PTTEP, Thailand RasGas Co Ltd Reliance Energy, Midland, TX Repsol YPF, Argentina Safer E&P Operation, Yemen Saudi Aramco, Saudi Arabia Savia, Peru Scan Consult, Denmark Shell, Brunei Shell, Nigeria Sinclair Oil & Gas Company, Salt Lake City, UT Stat Oil, Nigeria Total, France Total, France Total, Indonesia Total, Nigeria Wintershall, Qatar Woodside Energy, Australia XTO Energy, Midland, TX

BAKER HUGHES - STRENGTHS They have good tools. Its profession, the drill bit, down hole tools, refloatation. Good technology and technical support. Quality control on their tools, no failures, very well trained people. They are the market leaders in liner hanger and they have good bits. Their product quality is their strongest attribute. They have niche technology which is their strongest attribute. Strong equipment design and manufacturing. Is a leader in technology. They are responsive and have good product quality. Their experience in this area is their strength. Their strength is that they have experienced manpower. Technology. They have good tools. World wide support. They have reliable equipment. Baker Hughes don't have cementing services, now is united with BJ. Directional drilling. They are really keen to get into this market. They are very enthusiastic. As a good package of self equalizing. Quality and reliability. Good hydraulic locking mechanism. Good equipment for setting cement plugs. They bought BJ and do good bond log analysis. They seem to be on all over the map for their work. Good selective casing and connections. They are able to provide whatever services we ask for at any given time. Wide range of product and services. They got directional targets towards technology, that their strongest.

RESPONDENT Addax Petroleum, Nigeria ADMA, Abu Dhabi Agip, Nigeria Agip, Nigeria Anadarko Petroleum, Indonesia Andes Petroleum, Ecuador BHP Billiton, Australia BP, Canada BP, Columbia BP, Scotland BPZ, Peru British Gas, Nigeria Cabinda Gulf Oil Company, Angola Cano Petroleum Inc, Ft Worth, TX CEPSA, Spain Chevron, Nigeria Chevron, Thailand

CNOOC, China CNOOC, China CNOOC, Nigeria Conoco Phillips, Farmington, NM Conoco Phillips, Nigeria Dana Petroleum, Egypt Devon Energy, Houston, TX El Paso Energy, Houston, TX ENI, Algeria ENI, Italy EOG Resources, China Esso Nigeria Limited, Nigeria Exxon Mobil, Nigeria Forest Oil, Denver, CO High Exploration & Production, Oklahoma City, OK INA, Croatia INPEX Corporation, Indonesia KNOC, Nigeria Kuwait Oil Company, Kuwait Marathon, Houston, TX Marathon, Houston, TX Nigeria Petroleum National Company, Nigeria Origin Energy, Australia OXY, Oman PDVSA, Venezuela Pemex, Mexico Perenco, Columbia

BAKER HUGHES - WEAKNESSES Improve on the cost. They need to customize their products. Improve on installation and cost exposure. Improve on operating pressure. Technological capabilities. Technical support, personnel capable. New technology. Service. Drilling fluids. Need to respond quicker. They don't have cementing services, maybe with BJ Services are stronger in cementing. Improve on shallow set safety valves. Lack of experience. Their size of company. The turnover rate, very seldom see the same people more than once. Not managed to develop a brand for cementing. Improve operational efficiency with tools. They are not locally available. Extensive business scope, but not intensive enough, it means that being beyond its own ability to do so. Overall technology. Improve more on planning procedures. Quality equipment. Poor analysis of classic well control. Not present as a cementing company in Egypt. Their operator relationships with others. Directional work. Not available in Algeria. Expandable tools for liner anchor cementing. It is a bureaucratic organization. Improve more on the HSE. Improve more on freezing and hot tapping. Technology/availability. Their sales. Quality of equipment. They don't have efficient personnel and they are weak in their depth of service. Improve on open hole anchoring. They need to improve their liner hanger in high solid situations. Getting out the information that they have cementing now. Salesperson relationship. Improve high production rate typical of larger tubing sizes. They are expensive. They are weak in their cementing products. More experience in cementing. Capable personnel. Availability, high costs.

RESPONDENT Petrobras, Brazil Petrobras, Brazil Petrobras, Columbia Petrobras, Houston, TX Petrobras, Nigeria Petrobras, Peru Petrochina Changqing Oilfield, China Petroecuador, Ecuador Petrogulf Corp, Denver, CO Petronas, Malaysia Petronas, Malaysia Pioneer Natural Resources, Irving, TX Plains Exploration & Production, Bakersfield, CA Pluspetrol, Argentina Premier Oil, Vietnam PTTEP, Thailand Quicksilver Resources, FT Worth, TX RasGas Co Ltd Reliance Energy, Midland, TX Repsol YPF, Argentina Safer E&P Operation, Yemen Saudi Aramco, Saudi Arabia

Scan Consult, Denmark Shell, Brunei Shell, Nigeria Sinclair Oil & Gas Company, Salt Lake City, UT Spiral Energy Total, France Total, Indonesia Total, Nigeria Wintershall, Qatar XTO Energy, Midland, TX

BAKER HUGHES - WEAKNESSES Improve on stage cementing and squeezing. Reliable equipment. Customer service. Improve more on nodal analysis for planning new field. Low experience record. Has no presence in Peru, we don't know in the cementing area. To enlarge the service range, and the scale of the service with limited service station in China. All materials are standardized. Their sales reps dont know the product line as good as they should. High price is their weakest attribute. Lack of integration is their weakest attribute. They dont do cementing, if they merge with BJ it will happen. Quality control of mixing cement. High prices. Disorganized management in terms of responsibilities and lack of global vision. Their pricing structure is weak. Not known as a cementing company - associate with drilling process. They need to improve on technical expertise. Pricing. Good pumping units. They are not competing with others in our area. They are weak in their support service. Could improve their whole cementing package. They're not as good at marketing themselves. They need to be more visible in telling people what they have to offer. The regional management is their weakness and they need to improve on that. Poor mixing equipment. Price too high. Availability. Service in parts of Africa. Lots of changes and instability in last 2 years. Improve on laboratory testing. Their pricing structure is weak. Maybe just on communications.

RESPONDENT 3-D Oil & Gas, Winters, TX Abu Dhabi Marine Operating Company, UAE ADCO, UAE Addax Petroleum, Nigeria ADMA, Abu Dhabi Agip, Nigeria Agip, Nigeria Anadarko Petroleum, Indonesia Andes Petroleum, Ecuador Apache Khalda, Egypt Apache, Canada Baytex Energy, Canada

BJ SERVICES - STRENGTHS Technology in their equipment - horsepower. Simulation is their strongest attribute. Their equipment is good. Well cement planning. Chemical composition of their product is good. Good intervention require system. Good retrievable safety valves. The quality of people. Experience. Reliable equipment and good product performance. Along with cementing, they have great tubular drilling for U.B.C. Price. They have come from a different client base more of a production environment in use of coil tubing and a lot of remedial work not necessarily connected to the oilfield. Availability of equipment. Price cost/competitiveness. They do some little remedial work, very good tubular expertise. Availability. Seahawk unit is new generation, high performance, high horsepower, very fast mixing rates for high volume top hole cementing, fast displacement rates, great back up capacity. Technical support. Good services in cementing and is in contract. The flapper design virtually eliminates wireline damage. They probably have a small percentage of cement work and therefore should be motivated to perform good work. Their company product line. They have efficient cementing services. Good quality. Reliable cementing equipment. They have a specialty in a high pressure and high temperature technology. They have very personnel. They have a good reputation, supply good products and have reasonable prices. Using inflation tools in a variety of applications. Familiarity and technical capabilities in Thailand. Deep water cementing, cementing equipment. Equipment. High reliability of the equipment. Good cement formulations. Aggressive on price. Very flexible. Always competitive on price and experience of the field personnel. Availability; fleet size; field personnel. Personnel/staff. Pricing competitiveness. Low price. Good state of the art software.

BG Group, Algeria BHP Billiton, Australia Bill Barrett Corporation, Denver, CO BP, Canada BP, Columbia

BP, Houston, TX BP, Scotland BPZ, Peru British Gas, Nigeria

Cabinda Gulf Oil Company, Angola Cano Petroleum Inc, Ft Worth, TX Carigali Hess Operating Co, Malaysia CEPSA, Spain Chesapeake, Oklahoma City, OK Chevron, China Chevron, Indonesia Chevron, Kuwait Chevron, Nigeria Chevron, Thailand CNOOC, China CNOOC, China CNOOC, China CNOOC, Nigeria CNR International UK Ltd, Scotland Conoco Phillips, Algeria Conoco Phillips, Canada Conoco Phillips, Farmington, NM Conoco Phillips, Farmington, NM Conoco Phillips, Midland, TX Conoco Phillips, Nigeria

RESPONDENT Continental Resources, Enid, OK Dana Petroleum, Egypt Devon Energy, Canada Devon Energy, Houston, TX Devon Energy, Oklahoma City, OK DTE Energy, Ft Worth, TX Dune Energy, Lafayette, LA Ecopetrol, Columbia El Paso Energy, Houston, TX El Paso Energy, Houston, TX Encana, Canada Encore Denbury, FT Worth, TX Endeavour Energy UK Ltd, Scotland ENI, Algeria ENI, Egypt ENI, India ENI, Italy Esso Nigeria Limited, Nigeria Exxon Mobil, Nigeria Forest Oil, Denver, CO Greymouth Petroleum, New Zealand Hess Corp, Houston, TX High Exploration & Production, Oklahoma City, OK Hoang Long JOC, Vietnam Husky Energy, Canada

BJ SERVICES - STRENGTHS Price cost. Competent at low technology. Very good equipment suite. Offshore high pressure productivity/pumping. Desire to make things right. Price competitiveness. Equipment and personnel staff. Experienced operational staff. Personnel. Product service quality. Success rate on time. Good availability. Price cost. Good people. At the moment price competitive. High cooperation and cheapest price. They have good experience in our field. Consistent service. Good primary cementing which reliable. Good relief well design. Service/price. Their coal tubing and frac- stimulation is effective. Price. Very reliable. They are good in building client relationship. Good well stimulation techniques - light plug system. Placement of pumping, cementing, acidizing and tubular services. We use BJ Services extensively in China. Work in Egypt. Very good equipment and personnel. They are good in terms of their technology, personnel and equipment. All work hard to get us products needed. Simplicity. Good in vertical, deviated or horizontal well bores. It is a moderate company; their manpower quality is moderate and their equipment is good. Cost. Good service/good equipment. Salesperson relationship. They have good pumping services, technical ability, experience and specially acidizing. Good equipment. Desire operator 100% job success. Experienced people and adaptive to situations. They are cost effective and cordial with their customers. They are price competitive. Good service and results. Their strength is their erection drilling. Product. They have experience in deep and complex wells. Solutions of lower cost. Experienced in this area. Same Baker Hughes. Is a good supplier in fractures technology.

Husky Energy, Canada IEOC, Egypt INPEX Corporation, Indonesia Kaiser Exploration Ltd, Canada Khalda Petroleum, Egypt KNOC, Nigeria Kuwait Oil Company, Kuwait Maersk Oil & Gas, Denmark Marathon, Houston, TX Marathon, Houston, TX Mighty River Production, New Zealand Newfield Exploration Company, Denver, CO Nigeria Petroleum National Company, Nigeria OMV Petrom, Romania ONGC, India Origin Energy, Australia OXY, Argentina OXY, Oman OXY, Tupman, CA Pacific Rubiales Energy, Columbia Panamerican, Argentina PDVSA, Venezuela PDVSA, Venezuela Pemex, Mexico

RESPONDENT Petrobras, Brazil Petrobras, Brazil Petrobras, Columbia Petrobras, Houston, TX Petrobras, Nigeria Petrobras, Peru Petrochina Changqing Oilfield, China Petroecuador, Ecuador Petrogulf Corp, Denver, CO Petrohawk Energy Corporation, Houston, TX Petrohawk Energy Corporation, Tulsa, OK Petronas, Malaysia Petronas, Malaysia Pioneer Natural Resources, Irving, TX Pluspetrol, Argentina Pluspetrol, Peru Premier Oil, Vietnam PTTEP, Thailand Range Resources, Cannonsburg, PA RasGas Co Ltd Reliance Industries Limited, India Repsol YPF, Argentina Repsol YPF, Brazil Repsol YPF, Peru Repsol YPF, Venezuela Safer E&P Operation, Yemen Saudi Aramco, Saudi Arabia Saudi Aramco, Saudi Arabia Savia, Peru Scan Consult, Denmark Shell, Canada Shell, Canada Shell, Denver, CO Shell, Houston, TX Shell, Netherlands Shell, Nigeria Sinclair Oil & Gas Company, Salt Lake City, UT Spiral Energy Stat Oil ASA, Norway Stat Oil, Nigeria STOS - Shell, New Zealand Sun Energy, Houston, TX Talisman Energy UK Ltd, Scotland Tecpetrol, Argentina Total E&P UK Ltd, Scotland

BJ SERVICES - STRENGTHS In software cementing. Standard cementing blending. Good image. Good in installation and inventions of cementing history. Good pre-job arrangement. The experience. Its profession, the pressure pump and the cementing technology. Technical support have experienced personnel. They dont push additives or expensive things for specialty jobs. Accountability, stand behind their work. Long history and experience. BJ Service's strongest attribute are competitive price and good performance. Foam cementing experience is their strongest attribute. Good service. They have good equipment and prices. Reliable equipment. Their strength is their simplicity. Their experience in this area is their strength. Baker Hughes have been taken over by BJ Services. Broad range of cementing products. Their strength is that they have experienced manpower. They are approachable. They dont have the best technology however they try to resolve the query. Knows his customers. Experience. Experience. Customer services. Their quality equipment. They have a good unit. They provide good lab tests services. Availability. They handle conductors well. Very good cement integrate tools, great people. Very operational cementing - good displacement techniques. Efficient customer service. Good equipment. The professionalism of their staff. Good surface controlled subsurface safety valves. Good operation base and support on Bonga fields. Good service when they do the job very few things go wrong. Old and tired equipment. Very willing people. Reliable valve can be manipulated. They are very effective in terms of their services. Good pump equipment/trucks. Overseas experience. In general its a good company with experience. Cheapest prices.

RESPONDENT Total, Argentina Total, France Total, France Total, Indonesia Total, Nigeria Tullow Oil, UK VICO, Indonesia Wintershall, Netherlands Wintershall, Qatar Woodside Energy, Australia XTO Energy, Midland, TX

BJ SERVICES - STRENGTHS Operational capability, responsiveness. Good quality services in small jobs. Response to client needs. They have specialty in high pressure and high temperature technology. Good significance of surface pressure factors. Low cost solutions. They have good personnel in terms of capability to complete the job. They are the only supplier of a particular centralizer that we use. They have competitive pricing structure. Reliability. Perform very well in the cementing area and have very advanced tools and equipment.

RESPONDENT 3-D Oil & Gas, Winters, TX Abu Dhabi Marine Operating Company, UAE ADCO, UAE Addax Petroleum, Nigeria ADMA, Abu Dhabi Agip, Nigeria Anadarko Petroleum, Indonesia Andes Petroleum, Ecuador Apache Khalda, Egypt Apache, Canada Baytex Energy, Canada BG Group, Algeria BHP Billiton, Australia BP, Canada BP, Columbia BP, Scotland BPZ, Peru British Gas, Nigeria Cabinda Gulf Oil Company, Angola Cano Petroleum Inc, Ft Worth, TX Carigali Hess Operating Co, Malaysia CEPSA, Spain Chevron, Indonesia Chevron, Kuwait Chevron, Nigeria Chevron, Thailand CNOOC, China CNOOC, China CNOOC, Nigeria CNR International UK Ltd, Scotland Conoco Phillips, Algeria Conoco Phillips, Canada Conoco Phillips, Farmington, NM Conoco Phillips, Farmington, NM Conoco Phillips, Midland, TX Conoco Phillips, Nigeria Contact Energy Ltd, New Zealand Continental Resources, Enid, OK Delta Petroleum Corp, Denver, CO Devon Energy, Houston, TX Devon Energy, Houston, TX Devon Energy, Oklahoma City, OK Ecopetrol, Columbia El Paso Energy, Houston, TX

BJ SERVICES - WEANESSES Their cementing. They need to improve on technology and additive development. Their weakest attribute is that their staff is not competent enough. Poor maximization in the rates of draw down control. Their weakness is that they missing with some technologies. Good control system. Technological capabilities. More trained staff. Cement placement software. Service supervisors. Field equipment. They are just smaller than the others and because they are small they can never guarantee equipment, which is why they are often overlooked here in Algeria. Skilled staff. Cost. New technology. Need to respond better/better availability. Technology. Improve on select T valve. Commit more resourcing to cementing operations and gain more experience through increased market share of cementing jobs. Scheduling. They have effective equipments. Lacks equipment in some areas. They are weak in their marketing strategies. They need to market themselves better. Improve on ranging from zone isolation to plug and abandonment. They have world wide support. Small market share, the development is too narrow, the service team is yet to be improved. Staff ability. Improve more cementing guidelines. Depth of R&D. Some quality of the equipment - too old, need newer equipment. New technology. Technical support. Technology. Poor equipment. Good modeling and interpretation. They are very expensive. Availability of equipment and crew. Engineering and operations staff. Equipment reliability. Inability to look forward in terms of pricing and needs. They whine too. Availability. Better technology. Central Texas.

RESPONDENT Encana, Canada Encore Denbury, FT Worth, TX Endeavour Energy UK Ltd, Scotland ENI, Algeria ENI, Egypt ENI, Italy Esso Nigeria Limited, Nigeria Exxon Mobil, Nigeria Forest Oil, Denver, CO Greymouth Petroleum, New Zealand Hess Corp, Houston, TX High Exploration & Production, Oklahoma City, OK Hoang Long JOC, Vietnam Husky Energy, Canada IEOC, Egypt INPEX Corporation, Indonesia Khalda Petroleum, Egypt KNOC, Nigeria Kuwait Oil Company, Kuwait Maersk Oil & Gas, Denmark Maersk Oil North Sea Ltd, Scotland Marathon Norge, Norway Marathon, Houston, TX Marathon, Houston, TX Mighty River Production, New Zealand Newfield Exploration Company, Denver, CO Nexen Petroleum UK Ltd, Scotland Nigeria Petroleum National Company, Nigeria OMV Petrom, Romania ONGC, India OXY, Argentina OXY, Oman OXY, Tupman, CA Pacific Rubiales Energy, Columbia Panamerican, Argentina PDVSA, Venezuela Pemex, Mexico Pemex, Mexico Penn Virginia Corp, Cannonsburg, PA Petrobras, Argentina Petrobras, Brazil Petrobras, Brazil Petrobras, Columbia Petrobras, Houston, TX Petrobras, Nigeria Petrobras, Peru Petrochina Changqing Oilfield, China Petroecuador, Ecuador Petrogulf Corp, Denver, CO Petrohawk Energy Corporation, Houston, TX

BJ SERVICES - WEANESSES More trucks. HP/HT. Smaller pool of experience. Improve equipment and quality control. Personnel. In applications for acid gas environment and for expandable, self-healing cement. Poor identification of bottlenecks. Improper design of equipment component. Technology/availability. Their cementing is not strong. Equipment quality. Just maintaining their cost structure. The quality of their training needs to be improved. Plug placement. Technical advance. They don't have local presence. Customer service. Improve on cement slurry. They need to improve on their manpower. Need to improve technical support and level of technology. Not moved with the times. Product quality. High temperature, high cementing. Technology software. Management support. Region to region reliability. Less technically good. Improve on completion density flexibility. Dont have the full range of products, I.e. deepwater, swellable. They are slow to respond. Improve technology and equipment. They are weak in their cementing products. Service. Equipment. Better sales force. Technical support. Development new technology. More services in cementing. Price cost. Technical support. Improve on equipment performance. Reliable equipment. Customer service. Improve more on the separates system. Improve more on the remote operation support. Trained personnel. To lower the operation expenses, to increase the market share. All ok. The last time I dealt with them they had new personnel, no complaints really. Pricing.

RESPONDENT Petronas, Malaysia Petronas, Malaysia Petzed, Egypt Pioneer Natural Resources, Irving, TX Plains Exploration & Production, Bakersfield, CA Pluspetrol, Argentina Pluspetrol, Peru Premier Oil, Vietnam PTTEP, Thailand Questar, Oklahoma City, OK RasGas Co Ltd Reliance Industries Limited, India Repsol YPF, Argentina Repsol YPF, Brazil Repsol YPF, Peru Repsol YPF, Venezuela Safer E&P Operation, Yemen Saudi Aramco, Saudi Arabia Saudi Aramco, Saudi Arabia Savia, Peru Shell, Houston, TX Shell, Houston, TX Shell, Netherlands Shell, Nigeria Sinclair Oil & Gas Company, Salt Lake City, UT Spiral Energy Stat Oil ASA, Norway Stat Oil, Nigeria STOS - Shell, New Zealand Sun Energy, Houston, TX Talisman Energy UK Ltd, Scotland Tecpetrol, Argentina Total E&P UK Ltd, Scotland Total, Argentina Total, France Total, France Total, Indonesia Total, Nigeria Tullow Oil, UK Wintershall, Qatar Woodside Energy, Australia

BJ SERVICES - WEANESSES Quality of personnel is their weakest attribute. They need to improve on their quality of personnel. They need more improvement in everything like equipment, laboratory and HSE. The low density cements. Quality control of mixing cement. Improve technology. Trained personnel. Lack of sufficient resources. Their pricing structure is weak. Their price/customer relations. They need to improve on technical expertise. They need to improve on their technology levels. Improve equipment. Customer service. Improve technology. Equipment reliable. They are not competing with others in our area. Their personnel needs to be improved. They need to improve on their management skills. Capable personnel. Price cost. They could offer a lot more than what they do. Overall integrated service and delivery. Slow stages on current document. Availability. Customer service. Reliability and quality of their equipment. Improve on the control of apply internal pressure. They need to improve on their availability. Price. Technically poor/poor availability. Technical support. Not good at complex work. High prices. More presence in more countries. Try to be present in the market for bigger areas of Africa like Angola. Lots of changes and instability in last 2 years. Improve on gas migration. Low technology. Their weakness is that they have old and poor quality equipment. Equipment availability.

RESPONDENT 3-D Oil & Gas, Winters, TX Abu Dhabi Marine Operating Company, UAE Abu Dhabi National Oil Company, UAE ADCO, UAE Addax Petroleum, Nigeria ADMA, Abu Dhabi Agip, Nigeria Anadarko Petroleum, Indonesia Andes Petroleum, Ecuador Antero Resources, Rifia, CO Apache Khalda, Egypt Apache North Sea Ltd, Scotland Apache, Canada Baytex Energy, Canada BG Group, Algeria BG Group, Scotland BHP Billiton, Australia Bill Barrett Corporation, Denver, CO BP Norge, Norway BP, Columbia BP, Scotland BPZ, Peru Britannia Operator Ltd, Scotland Cabinda Gulf Oil Company, Angola Cano Petroleum Inc, Ft Worth, TX Carigali Hess Operating Co, Malaysia Centrica Energy, Scotland CEPSA, Spain Chesapeake, Oklahoma City, OK Chesapeake, Oklahoma City, OK Chevron, Bakersfield, CA Chevron, China Chevron, Kuwait Chevron, Nigeria Chevron, Thailand CNOOC, China CNOOC, China CNOOC, China CNOOC, Nigeria CNR International UK Ltd, Scotland CNX Gas, Cannonsburg, PA Conoco Phillips, Algeria Conoco Phillips, Canada Conoco Phillips, China Conoco Phillips, Farmington, NM Conoco Phillips, Farmington, NM

HALLIBURTON - STRENGTHS Good service, around a lot - availability. Their HP/HT well technology is better than others which is their strongest attribute. Good service and quality are their strongest attributes. Their equipment is good. Good package equipment performance. Equipment quality and reliability of the product. Good innovation design. They have quality equipment. Good technology. Equipment levels. Reliable equipment and good product performance. Competitive pricing. Quick to respond. Track record and technology, fine tuned zonal isolation procedures. Good technical expertise. Generally they have a surplus of equipment and more competitively priced. Product quality. Reliability. Skilled staff. Customer service. Technical support. Equipment reliability. Good technology. Reliable/Quality equipment. I know is leader in cementing but now is entering the country. Good technical back up/service. They have many resources committed to cementing quality and technology. Their network of people. Many resources. They have one of the best equipments in the market. Technical support. Product quality. Have whatever you need. Price cost. Technical support. Cement additive technology. They have experience personnel. They have a good reputation and past record. They are technically sound and competent. Tools are optimized to deliver the highest operational efficiency. They have world wide support. Big market share. Equipment and tools. Ultra low density cement slurries technology, foaming cement, nitrogen mechanically injected foam cement slurries cementing technology and cementing equipment. Good cement additives. Product development, quality units. Technology. They have a good range of products. Foam cementing; specialty products. Cementing equipment. Reputation. Technology.

RESPONDENT Conoco Phillips, Houston, TX Conoco Phillips, Houston, TX Conoco Phillips, Midland, TX Conoco Phillips, Nigeria Conoco Phillips, Scotland Contact Energy Ltd, New Zealand Continental Resources, Enid, OK Crawley Petroleum Corp, Oklahoma City, OK Dana Petroleum, Egypt Dapeco, Oman Delta Petroleum Corp, Denver, CO Devon Energy, Canada Devon Energy, Houston, TX Devon Energy, Houston, TX Devon Energy, Houston, TX Devon Energy, Navajo Dam, NM Devon Energy, Oklahoma City, OK DTE Energy, Ft Worth, TX Dune Energy, Lafayette, LA Ecopetrol, Columbia El Paso Energy, Houston, TX El Paso Energy, Houston, TX Encana, Dallas, TX Encore Denbury, FT Worth, TX Endeavour Energy UK Ltd, Scotland ENI, Algeria ENI, Egypt ENI, India ENI, Italy ENI, Italy Enquest, Scotland EOG Resources, China EON Ruhrgas UK North Sea Ltd, UK Esso Nigeria Limited, Nigeria Exxon Mobil, Australia Exxon Mobil, Nigeria Fairfield Energy Ltd, Scotland Forest Oil, Denver, CO Gaz De France, Netherlands GDF Suez E&P UK Ltd, Scotland Greymouth Petroleum, New Zealand Harouge Oil Operations, Libya Hess Corp, Houston, TX Hess Corp, Houston, TX High Exploration & Production, Oklahoma City, OK Hoang Long JOC, Vietnam Husky Energy, Canada IEOC, Egypt INA, Croatia INPEX Corporation, Indonesia Kaiser Exploration Ltd, Canada Khalda Petroleum, Egypt

HALLIBURTON - STRENGTHS Availability (# of jobs.) Price/costs. Technology. Good in global analysis. Service quality. Strong reputation. Bundle service. Consistency/reliability. Quality of people. Availability and quality are their strongest attributes. Equipment, availability, field personnel. Foam cementing to tech based experienced. #1 modeling software going to purchase. Customer service and product availability. Good training program. Plenty of people and very service oriented and good R&D. Technology - technical support. Availability and technology. Software technology. Technology. Technology/equipment. Reliable equipment. Availability more equipment. Equipment and personnel. Performance. HP/HT. Most experienced people. Stronger than other companies in equipment. Technology and technical support. They have good equipment. Consistent service and new tools for cementing. Their light slurry. Cost competitive. Experienced personnel. They have good product technology. North Sea track record - best pumps. Standard artificial lifting. They have lots of good resources and they are almost everywhere on the planet. Good in well cementing operation. Experienced personnel, track record. Technology/equipment. Good experienced personnel. Good responders/cost competitive. Cementing is their strength. A big company and organized in groups. Float equipment. Technology. Strong background. They are good in their research and development. Good balanced plug placement. Very good equipment. Price. Their strength is their heritage, technology, equipment and personnel. Work hard to get us products we need. Reliable equipment.

RESPONDENT Kuwait Oil Company, Kuwait Kuwait Oil Company, Kuwait Maersk Oil & Gas, Denmark Maersk Oil North Sea Ltd, Scotland Marathon Norge, Norway Marathon, Houston, TX Marathon, Houston, TX Marathon, Houston, TX Marathon, Houston, TX Mighty River Production, New Zealand Murphy Oil Company, Houston, TX Newfield Exploration Company, Denver, CO Newfield Exploration Company, Tulsa, OK Nexen Petroleum UK Ltd, Scotland Nigeria Petroleum National Company, Nigeria Noble Energy, Houston, TX Oil & Gas Development Company Limited, Pakistan OMV Petrom, Romania OMV, Austria ONGC, India Origin Energy, Australia Origin Energy, Australia OXY, Argentina OXY, Bakersfield, CA OXY, Houston, TX OXY, Oman OXY, Tupman, CA Pacific Rubiales Energy, Columbia Panamerican, Argentina Partex Oil & Gas, Portugal PDVSA, Venezuela PDVSA, Venezuela PDVSA, Venezuela Pemex, Mexico Pemex, Mexico Pemex, Mexico Penn Virginia Corp, Cannonsburg, PA Perenco, Columbia Perenco, UK Petrobras, Argentina Petrobras, Brazil Petrobras, Brazil Petrobras, Columbia Petrobras, Ecuador Petrobras, Houston, TX Petrobras, Houston, TX Petrobras, Houston, TX Petrobras, Nigeria Petrobras, Peru

HALLIBURTON - STRENGTHS They are capable of supplying a variety of cementing designs. They are moving ahead day by day, they are good in research and developments. Reliability. Best technical support. North Sea experience. North Sea track record/specialist cements. Everywhere in mid-continent. Global resources. Technology software. Their good engineering support. They have good pumping services, technical ability and experience. Technology. Availability and tech. Flexibility. Global presence. Good temperature modeling. Pricing and availability. They specialize in cementing jobs. The people they have and quality of equipment. They offer speciality products of high quality. Their quality is their strongest attribute. Their market reputation. They have efficient personnel and equipment. Equipment. Specialized technology. Reliable equipment. They are good in their cementing products. Technology and service. Good equipment and experienced staff. Better equipment cementing. Don't have the newest technology, but offer the best overall service and best trained people. More client focused - a more complete package. Good quality in software and products. Good quality. Technology. Immediate assistance. Is a reliable supplier with experience. Quality and technical support. Technology - tech support. Technology, good prices, experience. Consistent, quality cement, proactive R&D. Quickly responds. Cementing guideline. The company more balanced. Customer service. Good company cementing, technology. Consistency. Technology (personnel - staff). Very good zonal seals system, ultra light technology good with liners. Good delivery period. Is a supplier who had retired from Peru but now has returned with great force.

RESPONDENT Petrochina Changqing Oilfield, China Petroecuador, Ecuador Petrogulf Corp, Denver, CO Petrohawk Energy Corporation, Houston, TX Petrohawk Energy Corporation, Tulsa, OK Petroleum Development Oman, Oman Petronas, Malaysia Petronas, Malaysia Petzed, Egypt Pioneer Natural Resources, Irving, TX Plains Exploration & Production, Bakersfield, CA Pluspetrol, Argentina Pluspetrol, Peru Premier Oil, Vietnam Qatar Gas, Qatar Questar, Oklahoma City, OK Quicksilver Resources, FT Worth, TX Range Resources, Cannonsburg, PA RasGas Co Ltd Reliance Energy, Midland, TX Reliance Industries Limited, India Repsol YPF, Argentina Repsol YPF, Brazil Repsol YPF, Spain RWE Dea, UK Safer E&P Operation, Yemen Santos, Australia Saudi Aramco, Saudi Arabia Saudi Aramco, Saudi Arabia Savia, Peru Scan Consult, Denmark Shell Norske, Norway Shell UK Ltd, Scotland Shell, Brunei Shell, Canada Shell, Canada Shell, Egypt Shell, Houston, TX Shell, Houston, TX Shell, Netherlands Shell, New Orleans, LA Shell, Nigeria Sinclair Oil & Gas Company, Salt Lake City, UT

HALLIBURTON - STRENGTHS With extensive services and being influential within the industry. Reliable equipment. They seem to be technically proficient on their jobs. Experience. Technical expertise. Directional drilling. Halliburton better technology differentiates them from others. They are very experienced in cementing services which is their strongest attribute. Professionalism, high performance and excellent cement product. Lots of equipment and long history of cementing. R&D equipment. They are all good, technology and good prices. Good technology. They are historically well proven. They have good name and recognition in the market. Good experience their crews. Good equipment/reliable equipment. Overall field personnel. They have the best technical equipment and they are the best overall operators. Technology. Their technology, lab facilities and simulation software are their strongest attributes. Their equipment supply is good. They are good in meeting timelines as well. Good equipment and technology. Experience, good technology and tools. A little bit more experienced people. North Sea track record/experience. Experienced personnel. Their presence, establishment and experience in our area. They are a global company and they have lots of experience. They have experience personnel. They have the capability to work on various projects. Good company in products and services. They have a whole range of services to a high standard, especially for lab work. Quick responders/lower costs. Reliability. Competitive pricing. They are technically competent; they are geographically very well spread. Software modeling systems. Very good opticem modeling software. Capabilities and technologies. Organization. Technology. Ability to adapt their services to the needs of their customers. Technology. Ensure more cost effective operation. Quality of their service.

RESPONDENT SM Energy, Tulsa, OK Spiral Energy Stat Oil ASA, Norway Stat Oil, Nigeria STOS - Shell, New Zealand Sun Energy, Houston, TX Talisman Energy Norge, Norway Talisman Energy UK Ltd, Scotland Talisman Energy, Canada Tecpetrol, Argentina Total E&P Norge, Norway Total E&P UK Ltd, Scotland Total, Argentina Total, France Total, France Total, Houston, TX Total, Indonesia Total, Indonesia Total, Nigeria Total, Qatar Tullow Oil, UK TXM O&G Exploration, Hungary Ultra Petroleum, Englewood, CO Ultra Technology, Englewood, CO VICO, Indonesia VICO, Indonesia Williams, Parachute, CO Williams, Parachute, CO Wintershall, Netherlands Wintershall, Qatar Woodside Energy, Australia XTO Energy, Midland, TX XTO Energy, Oklahoma City, OK

HALLIBURTON - STRENGTHS Quality equipment. Technology and equipment. Good responders. Experienced personnel. Good horizontal wells with one trip liner system. They are good in terms of their availability globally. Good reputation and good equipment. Most consistent product. Quick response. Most reliable equipment/good responders. Big company, lots of technology and R&D. Good equipment and services. Technical backup. Very responsive. Technical service. Product quality. Technical support and equipment reliability. Specialized slurry for deep wells. They are able to identify the best way to sell technology. Technology. Easy to deal with and they are very honest and up front in their dealings. Their strength is their personnel. Good mud removal and cement placement. Reliability and availability of equipments and personnel. Experienced people. Reliability. #1 company. Cost and performance. Availability of equipment. Their strength is that they are more localized. They are price competitive and their HSE performance is very good. Cement quality. Good quality performance. Equipment availability is good. Quality of offshore personnel. They have capable crews and quality product. Equipment availability. Just their size company and resources are very well known. Supplier products.

RESPONDENT 3-D Oil & Gas, Winters, TX Abu Dhabi National Oil Company, UAE ADCO, UAE Addax Petroleum, Nigeria ADMA, Abu Dhabi Agip, Nigeria Anadarko Petroleum, Indonesia Andes Petroleum, Ecuador Antero Resources, Rifia, CO Baytex Energy, Canada BG Group, Algeria BG Group, Scotland BHP Billiton, Australia BP Norge, Norway BP, Columbia BP, Egypt BP, Scotland Cabinda Gulf Oil Company, Angola Cano Petroleum Inc, Ft Worth, TX Carigali Hess Operating Co, Malaysia Chevron, Bakersfield, CA Chevron, Kuwait Chevron, Nigeria Chevron, Thailand CNOOC, China CNOOC, China CNOOC, Nigeria CNR International UK Ltd, Scotland Conoco Phillips, Canada Conoco Phillips, Farmington, NM Conoco Phillips, Farmington, NM Conoco Phillips, Houston, TX Conoco Phillips, Houston, TX Conoco Phillips, Midland, TX Conoco Phillips, Nigeria Conoco Phillips, Scotland Contact Energy Ltd, New Zealand Continental Resources, Enid, OK Crawley Petroleum Corp, Oklahoma City, OK Dana Petroleum, Egypt Dapeco, Oman Delta Petroleum Corp, Denver, CO Devon Energy, Canada Devon Energy, Houston, TX Devon Energy, Houston, TX Devon Energy, Navajo Dam, NM Devon Energy, Oklahoma City, OK

HALLIBURTON - WEANESSES Their communication skills. Dont think they like the small companies. Lack of experience is the area where they need to improve on. Their personnel are lacking in experience. Improve more on price. They are weak in the research and development. Improve on operation protection. The quality of people. More trained staff. Invoices. Expensive. They are always trying to crack a nut with a hammer a lot of overkill in their approach. Sometimes not available. Equipment reliability. Sometimes inconsistent. Product quality. Availability of equipment. Quality assurance of equipment. Execution of some of their operations i.e. planning and management both on shore and shelf. Can be bad on availability. Safety and equipment reliability can always be improved. Their scheduling and availability. Price competitiveness. Problem solving ability. They need to be customer focused. Improve on hydraulic locking mechanism. They are not that big in cementing area. Price. The quality of the equipment is yet to be improved. Improve on cement blending. Not so good in responding. Price. Cost/prices. Technical support - overall performance. Resources/equipment and people. Technology. Service. Improve more on underground blowout. Price. They are in demand. Price cost. Salesman in office - lack of knowledge (inexperienced). They are the best cementing company in Egypt, but they can be as bad as you let them be! Equipment maintenance is the primary area they need to improve on. Price cost. Personnel. Big corporation, sometimes get involved in the politics. Some product availability in technology. Responsive and tech/field personnel. Availability.

RESPONDENT DTE Energy, Ft Worth, TX Dune Energy, Lafayette, LA Ecopetrol, Columbia El Paso Energy, Houston, TX El Paso Energy, Houston, TX Encana, Dallas, TX Encore Denbury, FT Worth, TX ENI, Algeria ENI, Egypt ENI, India ENI, Italy EOG Resources, Canada EOG Resources, China EON Ruhrgas UK North Sea Ltd, UK Esso Nigeria Limited, Nigeria Exxon Mobil, Australia Exxon Mobil, Nigeria Fairfield Energy Ltd, Scotland Forest Oil, Denver, CO Garco Energy, Englewood, CO Gaz De France, Netherlands Harouge Oil Operations, Libya Hess Corp, Houston, TX Hess Corp, Houston, TX High Exploration & Production, Oklahoma City, OK Hoang Long JOC, Vietnam IEOC, Egypt INPEX Corporation, Indonesia Kaiser Exploration Ltd, Canada Khalda Petroleum, Egypt Kuwait Oil Company, Kuwait Maersk Oil & Gas, Denmark Marathon, Houston, TX Marathon, Houston, TX Marathon, Houston, TX Mighty River Production, New Zealand Newfield Exploration Company, Denver, CO Nexen Petroleum UK Ltd, Scotland Nigeria Petroleum National Company, Nigeria Noble Energy, Houston, TX OMV Petrom, Romania ONGC, India Origin Energy, Australia Origin Energy, Australia OXY, Argentina OXY, Bakersfield, CA OXY, Houston, TX

HALLIBURTON - WEANESSES Field operations. Personnel/staff. Experienced personnel. Down hole casing equipment. Lab support. Availability. Price/costs. Price competitive. In the price. They need to improve on their marketing strategies. Improve software for cementing planning. Regional responsiveness, inconsistent performance from area to area (geographically.) It is a bureaucratic organization. Need some more experienced personnel in North Sea. Improve more on gathering l and manifolds. They are too big due to which their quality gets affected in some regions. Good adversely affects on the performance of the entire system. Old technology equipment. Availability. Lack of sales contacts - (marketing). Could improve some of their equipment such as mix tanks. Communication between client and the service company. Centralizers are weak. Price. Price. They are weak in their customer relationships. Availability. They need to improve on their quality and reliability of products. Dont seem to care about smaller companies - not a priority. Technical design. Some of their additives are very sensitive, is their weakness. The quality and knowledge of their personnel in terms of technical support and innovative solutions. Salesperson relationship. Service. Sometimes they have old equipment. They need to be price competitive. Region to region reliability. Need to introduce new chemical. Improve on supplied reputation. Technical personnel. Computer simulation software. Their prices are very high. Their compliance is a problem. They need to be price competitive. Better results. More customer focus. The tech support.

RESPONDENT OXY, Oman OXY, Tupman, CA Pacific Rubiales Energy, Columbia Panamerican, Argentina Partex Oil & Gas, Portugal PDVSA, Venezuela PDVSA, Venezuela Pemex, Mexico Pemex, Mexico Penn Virginia Corp, Cannonsburg, PA Petrobras, Argentina Petrobras, Brazil Petrobras, Brazil Petrobras, Columbia Petrobras, Ecuador Petrobras, Houston, TX Petrobras, Nigeria Petrochina Changqing Oilfield, China Petroecuador, Ecuador Petrogulf Corp, Denver, CO Petrohawk Energy Corporation, Houston, TX Petrohawk Energy Corporation, Tulsa, OK Petroleum Development Oman, Oman Petronas, Malaysia Petronas, Malaysia Petzed, Egypt Pioneer Natural Resources, Irving, TX Plains Exploration & Production, Bakersfield, CA Pluspetrol, Argentina Pluspetrol, Peru Premier Oil, Vietnam Qatar Gas, Qatar Questar, Oklahoma City, OK Quicksilver Resources, FT Worth, TX RasGas Co Ltd Reliance Energy, Midland, TX Reliance Industries Limited, India Repsol YPF, Argentina Repsol YPF, Brazil Safer E&P Operation, Yemen Santos, Australia Saudi Aramco, Saudi Arabia Saudi Aramco, Saudi Arabia Savia, Peru Scan Consult, Denmark Shell Norske, Norway Shell UK Ltd, Scotland Shell, Canada Shell, Egypt Shell, Houston, TX Shell, Houston, TX Shell, New Orleans, LA

HALLIBURTON - WEANESSES They are weak in their drilling bits. Product. All is ok. In some products. Could be faster in response to any questions or problems. High cost. Technical support. Better prices. Trained personnel. Field personnel. They need to improve in quick responds too. Improve on cement additives. Reliable equipment. High prices. Maybe better cost. Customer support. Poor project management capability. Price way too high. Advanced technology. Their costs are higher and seem to target big programs. Accountability. Sometimes they take too long when they are doing a cementing job. Lack of competency in their cementing staff. Lack of technology integration is their weakest attribute. Their high pricing is their weakest attribute. Reduce the price a little bit. Service and consistency. Engineering services and communication. Depends on the area but not much. I don't know, they are entering the market again. They don't seem to be interested in doing anything. Their personnel are lacking in expertise. Lower their prices. Price too high. Sometimes their prices are too high. Personnel staff. Their supply chain is their weakest area of operation. Customer service. Customer service. They need to improve on their logistics and support. Their field personnel are inexperienced. They are weak in their support service. They need to improve on their management skills. Don't know is coming back to this company. Quality of personnel for cementing and directional tool research. Some field personnel are inexperienced. Sometimes dont send their most experienced people. Cost. Consistency around the world. Improve the maintenance on equipment. Overall personnel (field). Field personnel.

RESPONDENT Shell, Nigeria Sinclair Oil & Gas Company, Salt Lake City, UT Spiral Energy Stat Oil ASA, Norway Stat Oil, Nigeria STOS - Shell, New Zealand Sun Energy, Houston, TX Talisman Energy, Canada Tecpetrol, Argentina Total, Argentina Total, France Total, France Total, Houston, TX Total, Indonesia Total, Nigeria Total, Qatar TXM O&G Exploration, Hungary Ultra Technology, Englewood, CO VICO, Indonesia VICO, Indonesia Wintershall, Netherlands Wintershall, Qatar XTO Energy, Oklahoma City, OK

HALLIBURTON - WEANESSES Improve more on cement guidelines. Availability. Availability. Consistent project quality (from area to area). Improve rupture disk. They need to improve on support and services. Personnel/customer service experience. Regional specific - not consistent from region to region. In good prices. Small technical issues. Far behind Schlumberger in offering new technologies. Reliability and speed of lab tests. Personnel staff. Sometimes in past technical support was a little problem. Improve more on cement additives. They need to improve on innovation. Customer contact - need more meetings to increase cooperation. Tech support. They don't have good personnel. The engineers do a good job, but operators, who execute the jobs need to perform better. They need to improve on their field personnel. Modeling - slurry design and customer support. Their equipment maintenance is weak. Prices.

RESPONDENT 3-D Oil & Gas, Winters, TX Abu Dhabi Marine Operating Company, UAE Abu Dhabi National Oil Company, UAE ADCO, UAE ADMA, Abu Dhabi Agip, Nigeria Anadarko Petroleum, Indonesia Andes Petroleum, Ecuador Antero Resources, Rifia, CO Apache North Sea Ltd, Scotland Apache, Canada ATP Oil & Gas, Houston, TX Baytex Energy, Canada BG Group, Algeria BG Group, Scotland BHP Billiton, Australia Bill Barrett Corporation, Denver, CO BP, Angola BP, Columbia BP, Scotland BPZ, Peru Britannia Operator Ltd, Scotland Cabinda Gulf Oil Company, Angola CEPSA, Spain Chesapeake, Oklahoma City, OK Chesapeake, Oklahoma City, OK Chevron, Bakersfield, CA Chevron, China Chevron, Indonesia Chevron, Kuwait Chevron, Nigeria Chevron, Thailand CNOOC, China CNOOC, China CNOOC, China CNOOC, Nigeria CNR International UK Ltd, Scotland CNX Gas, Cannonsburg, PA Conoco Phillips, Algeria Conoco Phillips, Anchorage, AK Conoco Phillips, China Conoco Phillips, Farmington, NM Conoco Phillips, Farmington, NM Conoco Phillips, Houston, TX Conoco Phillips, Houston, TX

SCHLUMBERGER - STRENGTHS They're around local. They communicate well with us small operators. Their strongest attribute is research and development of new technology, additives, projects and software. Stability is their strength. Their strongest attribute is their personnel with good experience. Commitment towards work is their strength. Good cementing designs. They have good technology products. Development technology. Technical expertise. More experienced North Sea personnel. Good techniques in cementing. Technology (support) tech. Good technical expertise. Very good on research into the chemical side and on software modeling. Most experienced personnel. Equipment availability. Technology. Availability of personnel and equipment. New technology. Quality equipment and personnel. Good technology. Good for integrated projects. Committed to cementing quality and new technology. Have caught up and also have whatever you need. Quality service. Technical support. Customer focus. They have good product technology. They have the best technology as compared with others. They are technically very strong and giving a chance to their personnel to do variety of jobs. Non contaminated cement is spotted at the tool for inflation. They have world wide support. Certain ability and technology, excellent services. Diversified services, staff has high service perception. High intensity cement, deep water cementing, anti leakage cement slurries. Good casing hardware. Strong on modeling. Quality units. Quality service and equipment. Technical experience. Field experience. With good cementing service and software. Overall performance. Personnel/staff. Resources/staff. Technology.

RESPONDENT Conoco Phillips, Midland, TX Conoco Phillips, Nigeria Conoco Phillips, Scotland Continental Resources, Enid, OK Delta Petroleum Corp, Denver, CO Devon Energy, Canada Devon Energy, Houston, TX Devon Energy, Houston, TX Devon Energy, Houston, TX Ecopetrol, Columbia El Paso Energy, Houston, TX El Paso Energy, Houston, TX Encore Denbury, FT Worth, TX Endeavour Energy UK Ltd, Scotland ENI, Algeria ENI, Egypt ENI, India ENI, Italy Enquest, Scotland EOG Resources, China EON Ruhrgas UK North Sea Ltd, UK Esso Nigeria Limited, Nigeria Exxon Mobil, Australia Exxon Mobil, Houston, TX Exxon Mobil, Nigeria Fairfield Energy Ltd, Scotland Forest Oil, Denver, CO Garco Energy, Englewood, CO Gaz De France, Netherlands GDF Suez E&P UK Ltd, Scotland Greymouth Petroleum, New Zealand Harouge Oil Operations, Libya Hess Corp, Houston, TX Hess Corp, Houston, TX High Exploration & Production, Oklahoma City, OK Husky Energy, Canada Husky Energy, Canada IEOC, Egypt INPEX Corporation, Indonesia Kaiser Exploration Ltd, Canada Khalda Petroleum, Egypt Kuwait Oil Company, Kuwait Kuwait Oil Company, Kuwait Maersk Oil & Gas, Denmark Maersk Oil North Sea Ltd, Scotland Marathon Norge, Norway

SCHLUMBERGER - STRENGTHS Service. Good in gas deliverability planning program. Good price/value for money. Safety programs. Technology. Using for a test pilot program (chops) to compare cementing jobs with Halliburton. Equipment reliability. Specialized technology and high reputation. Technology. Better technology. High price. Technology. Consistency. Good equipment/people. Very wide availability. Company most used in Algeria. Quite good equipment and good local support. Technology and technical support. They are good in terms of their marketing. Continue to update research. Best equipment reliability. They have good product technology. Best quality cement, most experienced personnel. Good bottleneck which serve as framework for a good design. They are globally available and they have efficient personnel. Light cement. Good method on the systems wide analysis. Marketing, good reliable equipment. Technology. Marketing and performance. State of the art equipment. Best for problematical/HP/HT wells. They are very good in logging. May have some specialty cement additives. Equipment. Generally in every market place. Tech, ability to bundle a lot of service together. Capabilities and tools and track record. We use offshore "white rose", very good cementing operation. Technically good. They are good in terms of their technology, personnel and equipment. Work hard to get us products we need. Technical design. They are good in research and developments. They have a good range of slurries design and additives. Skill level of personnel and technology they use. Most reliable equipment. Quality cements. Product quality. Equipment reliability.

RESPONDENT Marathon Oil Uk Ltd, Scotland Marathon, Houston, TX Marathon, Houston, TX Marathon, Houston, TX Murphy Oil Company, Houston, TX Nexen Petroleum UK Ltd, Scotland Nigeria Petroleum National Company, Nigeria Noble Energy, Houston, TX OMV Petrom, Romania OMV Petrom, Romania OMV, Austria ONGC, India Origin Energy, Australia Origin Energy, Australia OXY, Bakersfield, CA OXY, Houston, TX OXY, Oman OXY, Tupman, CA Panamerican, Argentina Partex Oil & Gas, Portugal PDVSA, Venezuela PDVSA, Venezuela PDVSA, Venezuela Pemex, Mexico Pemex, Mexico Penn Virginia Corp, Cannonsburg, PA Perenco, UK Petrobras, Argentina Petrobras, Brazil Petrobras, Brazil Petrobras, Ecuador Petrobras, Houston, TX Petrobras, Houston, TX Petrobras, Houston, TX Petrobras, Nigeria Petrobras, Peru Petrochina Changqing Oilfield, China Petroecuador, Ecuador Petrogulf Corp, Denver, CO Petrohawk Energy Corporation, Houston, TX Petroleum Development Oman, Oman

SCHLUMBERGER - STRENGTHS Quality and reliability of their equipment. Good global resource/technology. Good sales people. Quality people, smart and well trained. Technology. Quality product. Good computer program used for job design. Quick response and tech personnel. Complete range of products. Good simulation. Most of their jobs are successful. Good availability. High quality personnel. Good light weight cement. They are quick in responding which is their strongest attribute. They are the best in terms of technology and they have good HSE programs. They have good technology. Technology. The tech support. Their strength is their bong logging. Equipment and service. Solutions of high technology. Very innovation, will always try to offer a solution. Good cementing tools like records, directional. Good quality same level Halliburton. Technical support and customer service. Good technology. Records in tool wells. Field personnel. Best for integrated services. Good technology. Better equipment. Cement formulations. Good technology. Good technology on pressure traverse curves. Price cost. Technology and service. Good company policies. Advanced technology. Its profession and the well measurement is its advantage. They have gathering operations. Get the industry standard for open hole logging and never tools. Pricing and availability. They are the technology leaders, they invest a huge amount of money on research and development and they have competent staff as they pay them accordingly. Process control equipment is their strongest attribute. Their strongest attribute is their technology. Professionally, high performance and excellent cement product.

Petronas, Malaysia Petronas, Malaysia Petzed, Egypt

RESPONDENT Pioneer Natural Resources, Irving, TX Plains Exploration & Production, Bakersfield, CA Pluspetrol, Argentina Pluspetrol, Peru Premier Oil, Vietnam PTTEP, Thailand Qatar Gas, Qatar Questar, Oklahoma City, OK Quicksilver Resources, FT Worth, TX Range Resources, Cannonsburg, PA RasGas Co Ltd Reliance Industries Limited, India Repsol YPF, Argentina Repsol YPF, Brazil Repsol YPF, Peru Safer E&P Operation, Yemen Santos, Australia Saudi Aramco, Saudi Arabia Saudi Aramco, Saudi Arabia Savia, Peru Scan Consult, Denmark Shell Norske, Norway Shell UK Ltd, Scotland Shell, Brunei Shell, Canada Shell, Canada Shell, Egypt Shell, Houston, TX Shell, Houston, TX Shell, Netherlands Shell, New Orleans, LA Shell, Nigeria Sinclair Oil & Gas Company, Salt Lake City, UT SM Energy, Tulsa, OK Spiral Energy Stat Oil ASA, Norway STOS - Shell, New Zealand Talisman Energy Norge, Norway Talisman Energy UK Ltd, Scotland Talisman Energy, Canada Total E&P Norge, Norway Total, Argentina Total, France Total, France Total, Indonesia Total, Qatar Tullow Oil, UK

SCHLUMBERGER - STRENGTHS They are very aggressive with their service and follow ups, unique business arrangements and plan for your needs. Customer service. Technology and good products. Technical support. They have good technology products and have special applications. Their quick response and efficient product technology are their strengths. They have good name and recognition in the market. Technology. Great equipment. Technology. Some of the equipment is very good. Their technology is their strongest attribute. Good technology. Technology. Technology and additives. They are good in logistics and support. Their cementing head equipment is good. They have the best technology. They have the capability to work on various projects. Good equipment. Well trained personnel. Most reliable products and equipment. Quality products and people. They are technically competent; they have a very good distribution and have consistent management style. Tools. Tools. Capabilities and technologies. Field personnel. Good technology. Very organized. Spread of integrated services. Field personnel and technical support. Good completion using a nonequalizing valve. Price. Technology leadership. Technology. Best technical support. Quality products. They have the best technology. Technical support. Very reliable equipment. Technically superior/quality product. Good in Canada, large, lots of R&D and resources going thru growing pains. Good product quality. North Sea track record. Technological development. Global coverage. Offer new technologies. Cover all areas. Their product technology is their strength. Innovation. Technologically best.

RESPONDENT TXM O&G Exploration, Hungary Ultra Petroleum, Englewood, CO Ultra Technology, Englewood, CO VICO, Indonesia Wintershall, Netherlands Wintershall, Qatar Woodside Energy, Australia

SCHLUMBERGER - STRENGTHS In house technology. Not as good in performance. Cost and resources. People competencies, their products and their HSE performance is very good. Customer support, high - spec cement products and modeling. They have capable crews and quality product. Technology.

RESPONDENT 3-D Oil & Gas, Winters, TX Abu Dhabi Marine Operating Company, UAE Abu Dhabi National Oil Company, UAE ADCO, UAE ADMA, Abu Dhabi Agip, Nigeria Anadarko Petroleum, Indonesia Andes Petroleum, Ecuador Antero Resources, Rifia, CO Apache North Sea Ltd, Scotland Apache, Canada Baytex Energy, Canada BG Group, Algeria BG Group, Scotland BHP Billiton, Australia BP, Angola BP, Columbia BP, Scotland BPZ, Peru Britannia Operator Ltd, Scotland Cabinda Gulf Oil Company, Angola Cano Petroleum Inc, Ft Worth, TX Carigali Hess Operating Co, Malaysia CEPSA, Spain Chevron, Bakersfield, CA Chevron, China Chevron, Indonesia Chevron, Kuwait Chevron, Nigeria Chevron, Thailand CNOOC, China CNOOC, China CNOOC, Nigeria CNR International UK Ltd, Scotland Conoco Phillips, Algeria Conoco Phillips, Farmington, NM Conoco Phillips, Farmington, NM Conoco Phillips, Houston, TX Conoco Phillips, Houston, TX Conoco Phillips, Midland, TX Conoco Phillips, Nigeria Conoco Phillips, Scotland Continental Resources, Enid, OK Dana Petroleum, Egypt Dapeco, Oman Delta Petroleum Corp, Denver, CO Devon Energy, Canada Devon Energy, Houston, TX Devon Energy, Oklahoma City, OK Ecopetrol, Columbia El Paso Energy, Houston, TX El Paso Energy, Houston, TX Encana, Canada

SCHLUMBERGER - WEANESSES Their prices a little high. Their prices are very high. Their prices are high hence this is their weakest area. They need to improve on their equipment quality. They don't have consistent products. Improve more on job performance. The quality of people. The same more trained staff. Supplier services. Too expensive sometimes to justify use. Cost. Field equipment. Poor customer relations and that tends to be their reputation globally not just here in Algeria. Too expensive. Price is too high. Simulation. High costs. Still the most expensive. High prices. Too expensive. Safety, reliability and price. We had no follow up from them. I was displeased with them. They are not that much experienced. Less experienced staff. Weaker additive line. They are weak in their support. Their pricing structure is weak. Since their people are doing variety of jobs, they are not customer focused. Improve on loss of cement to the liner. They are not that big in cementing area. No weak points, in my opinion. With very small market share in cementing, unbalance in business development. Improve more on site mixing equipment. Most expensive, poor technical support sometimes. Field personnel do not have that much experience. Cost/prices. Pricing competitiveness. Availability (# of jobs.) Price/costs. Technology. Improve more on oil base mud investigation. Technical support. Price cost. Quality of people. Availability is the area they need to improve on. Availability and price cost. Cost. Flexibility. Availability. Experienced personnel in the field. Consistency. Upper management. Availability and cost.

RESPONDENT Encore Denbury, FT Worth, TX Endeavour Energy UK Ltd, Scotland ENI, Algeria ENI, Egypt ENI, India ENI, Italy ENI, Italy Enquest, Scotland EOG Resources, China EON Ruhrgas UK North Sea Ltd, UK Esso Nigeria Limited, Nigeria Exxon Mobil, Nigeria Fairfield Energy Ltd, Scotland Forest Oil, Denver, CO Gaz De France, Netherlands GDF Suez E&P UK Ltd, Scotland Harouge Oil Operations, Libya Hess Corp, Houston, TX Hess Corp, Houston, TX High Exploration & Production, Oklahoma City, OK Husky Energy, Canada IEOC, Egypt INPEX Corporation, Indonesia Kaiser Exploration Ltd, Canada Khalda Petroleum, Egypt Kuwait Oil Company, Kuwait

SCHLUMBERGER - WEANESSES Customer service - personnel staff. Too expensive/arrogant. Could improve their upgrading equipment. Laboratory. Their weakness is that their personnel is arrogant. Cost - capability to reduce cost. Their light slurry. Slow response. Very expensive. Their service is very poor. Most expensive. Lack efficient field wide flow system. Poor performance of the well rate. Poor analysis of problems. Customer service/availability. Keep personnel in one location rather than moving them about. Very expensive. Communication between client and the service company. Tech support. The people - C5R/ Tech support. Customer service. Cost. Equipment not working reliably. They need to improve their pricing structure and customer service. Dont seem to care about smaller companies - not a priority. Equipment failure. Sometimes they equipment gives problems. When dealing with Schlumberger you always feel they would want to trick you a bit if they could - they are a little too smart on costing, and could be more trustworthy. When dealing with other companies you feel there's more of a gentlemanly Still the most expensive. Price/responsiveness/availability. Most expensive. Price. Salesperson relationship. They need to be price competitive. Less experienced people on shore. Field personnel. Too young and inexperienced. Personnel training is their main weakness. Their area of weakness is their stringent policies due to which it becomes inconvenient for us to work with them. They are too scared to get equipment on the ground. They need to be price competitive. In service, results, equipment and technology. The amount of equipment. Reliable equipment. Cement blends product. Prices.

Maersk Oil & Gas, Denmark

Maersk Oil North Sea Ltd, Scotland Marathon Norge, Norway Marathon Oil Uk Ltd, Scotland Marathon, Houston, TX Marathon, Houston, TX Mighty River Production, New Zealand Nexen Petroleum UK Ltd, Scotland Noble Energy, Houston, TX OMV Petrom, Romania OMV, Austria ONGC, India Origin Energy, Australia Origin Energy, Australia OXY, Argentina OXY, Bakersfield, CA OXY, Houston, TX OXY, Tupman, CA Panamerican, Argentina

RESPONDENT

Partex Oil & Gas, Portugal

PDVSA, Venezuela PDVSA, Venezuela PDVSA, Venezuela Pemex, Mexico Pemex, Mexico Penn Virginia Corp, Cannonsburg, PA Perenco, UK Petrobras, Argentina Petrobras, Brazil Petrobras, Brazil Petrobras, Columbia Petrobras, Ecuador Petrobras, Houston, TX Petrobras, Houston, TX Petrobras, Houston, TX Petrobras, Nigeria Petrobras, Peru Petrochina Changqing Oilfield, China Petroecuador, Ecuador Petrogulf Corp, Denver, CO Petroleum Development Oman, Oman Petronas, Malaysia Petronas, Malaysia Petzed, Egypt Pioneer Natural Resources, Irving, TX Plains Exploration & Production, Bakersfield, CA Pluspetrol, Argentina Pluspetrol, Peru Premier Oil, Vietnam PTTEP, Thailand Qatar Gas, Qatar Questar, Oklahoma City, OK Quicksilver Resources, FT Worth, TX RasGas Co Ltd Reliance Industries Limited, India Repsol YPF, Argentina Repsol YPF, Brazil Repsol YPF, Peru Safer E&P Operation, Yemen Santos, Australia Saudi Aramco, Saudi Arabia

SCHLUMBERGER - WEANESSES Feel like they are just selling a job- not client focused, always dealing with different people so no continuity of service. They send trainees on what they consider to be an easy job- they seem to have an arrogant attitude to clients. Cementing technology. High cost. Improve equipment. Cementing services. Open to the market. Technology. Always the most expensive. In sales, when we need call tender process they send your attorney. (It's a big story.) Improve on cement planning procedures. Prices. Technology, prices, customer services. High prices. Customer support. Improve more on the PI models. Too technical. Improve more on specific technology. It's trade policy (commercial policy). Enlarge its service range and to increase its market share. Trade policies. They tend to transfer people all over the globe so you dont know how proficient in language or area of knowledge. They are slow in responding. Their high pricing is their weakest attribute. Their pricing is very high which has become their weakest attribute. Reduct the price a little bit. When you do customize cementing the cost goes up so economical customized solutions they need to work. Engineering. Experienced staff. Improve prices. Their products are too complicated. They don't have enough experience in our area. Their personnel are lacking in expertise. Crew experience. Price high. They are weak in their maintenance. The biggest issue we had with them was the technical support which was very poor. Their pricing is very high which has become an area of improvement for them. All is ok. Capable personnel in the field. More technical staff. They need to improve on professionalism of their personnel. Their field personnel are inexperienced. Their personnel needs to be improved.

RESPONDENT Saudi Aramco, Saudi Arabia Savia, Peru Shell Norske, Norway Shell UK Ltd, Scotland Shell, Brunei Shell, Canada Shell, Canada Shell, Egypt Shell, Houston, TX Shell, Houston, TX Shell, Netherlands Shell, New Orleans, LA Shell, Nigeria Sinclair Oil & Gas Company, Salt Lake City, UT Spiral Energy Stat Oil ASA, Norway STOS - Shell, New Zealand Talisman Energy Norge, Norway Talisman Energy UK Ltd, Scotland Talisman Energy, Canada Talisman Energy, Peru Total E&P Norge, Norway Total, Argentina Total, France Total, France Total, Indonesia Total, Indonesia Total, Qatar Tullow Oil, UK TXM O&G Exploration, Hungary Ultra Petroleum, Englewood, CO Ultra Technology, Englewood, CO VICO, Indonesia Wintershall, Netherlands Wintershall, Qatar

SCHLUMBERGER - WEANESSES They need to get more experienced manpower. No presence. Highest price, non-responsive. Price and sometimes availability. They move people around frequently. This instability is their weakness. Cost. Cost. Consistency around the world. Technology. The deployment of technology. Cost. Technology. Improve more on remedial cementing. Quality is iffy sometimes performance in the field. Everything else. Still most expensive and can be unresponsive. They need to improve on support and services. Most expensive. Slow response. Price. NE.US- service quality issues - new to area so haven't gotten into groove them. Lack equipment, experience, lax on policies. Availability/ price cost. Lack of response. Price. Low operational capability in this country and high costs. Quality of the engineering and lab tests. Too expensive. Their weakness is their support. They are not clear in their dealings. They need to be price competitive. People. Same as Halliburton - more contact with customers. Lower prices. Tech support. Their prices are very high. Price. Their pricing structure is weak.

CHARACTERISTICS OF THE SAMPLE


COMPANY TYPE

NOC/ STATE OWNED 19%

MAJOR, MULTIMAJOR MULTI NATIONAL 27%

MEDIUM/ SMALL INDEPENDENT 20%

TOTAL RESPONDENTS:

289 PRIMARY FOCUS


LARGE INDEPENDENT 34%

US / CANADA= 39% INTERNATIONAL = 61% LAND = 54% OFFSHORE SHELF = 33% OFFSHORE DEEPWATER = 13%

PERCENT OF TOTAL SAMPLE

Welling & Company

CHARACTERISTICS OF THE SAMPLE


GEOGRAPHIC AREAS OF INVOLVEMENT OVER NEXT FEW YEARS-LAND

___________________________________________________________
153 RESPONDENTS COVERING 245 GEOGRAPHIC AREAS
ROCKIES MID-CONTINENT GULF COAST WILLISTON/ BAKKEN PERMIAN BASIN HAYNESVILLE MARCELLUS SHALE BARNETT SHALE CALIFORNIA FAYETTEVILLE ALASKA MIDDLE EAST LATIN AMERICA ASIA PACIFIC CANADA NORTH AFRICA CONTINENTAL EUROPE RUSSIA/ CASPIAN WEST AFRICA

16% 13% 12% 10% 9% 8% 7% 5% 4% 4% 3% 19% 16% 10% 9% 8% 3% 2% 2% 5% 10% 15% 20%
2
Welling & Company

0%

PERCENT OF LAND SAMPLE (MULTIPLE RESPONSES ALLOWED)

CHARACTERISTICS OF THE SAMPLE


GEOGRAPHIC AREAS OF INVOLVEMENT OVER NEXT FEW YEARS-OFFSHORE _____________________________________________________________________
132 RESPONDENTS COVERING 185 GEOGRAPHIC AREAS

NORTH SEA

36% 35% 27% 13% 9% 8% 6% 5%


10% 20% 30% 40% 3
Welling & Company

ASIA PACIFIC

WEST AFRICA

GULF OF MEXICO

LATIN AMERICA

MIDDLE EAST

NORTH AFRICA

ALL OTHER

0%

PERCENT OF OFFSHORE SAMPLE (MULTIPLE RESPONSES ALLOWED)

CHARACTERISTICS OF THE SAMPLE


TITLE OF RESPONDENT
____________________________________________________________________
DRILLING ENGINEERS

46% 25% 6% 6% 3% 3% 3% 8%
10% 20% 30% 40% 50%
4
Welling & Company

DRILLING MANAGERS OPERATIONS MGR/ ENGINEER WELL SERVICES MGR/ ENGINEER COMPLETIONS MGR/ ENGINEER FLUIDS SPECIALIST

ADVISOR/ CONSULTANT

OTHER ENGINEERS

0%

PERCENT OF TOTAL SAMPLE

AVERAGE TENURE IN ROLE = 14.8 YEARS FINAL DECISION MAKER = 33% PART OF EVALUATION TEAM = 67%

EXPECTED TREND IN EXPENDITURES FOR CEMENTING SERVICES


OVER NEXT TWO YEARS (2010 2011)

________________________________________________________________
SPEND MORE 80% 70% 59% 60% 58% SPEND SAME SPEND LESS

56%

53%

40%

31%

33% 30%

37% 24%

20% 9%

12%

10%

7% 6%

0%
TOTAL SAMPLE MAJORS LARGE INDEPENDENTS MED/ SMALL INDEPENDENTS NOCS

NET

+16.9%

+14.1%

+18.7%

+19%

+15.4%

PERCENT OF TOTAL SAMPLE

Welling & Company

EXPECTED TREND IN EXPENDITURES FOR CEMENTING SERVICES


OVER NEXT TWO YEARS (2010 2011)

________________________________________________________________
SPEND MORE 80% 61% 56% SPEND SAME SPEND LESS

59% 60%

59%

60%

40%

32%

30%

31%

33% 28%

20% 9%

10%

8%

10%

8%

0%
NORTH AMERICA INTERNATIONAL LAND OFFSHORE SHELF OFFSHORE DEEPWATER

NET

UP 15.1%

UP 17.8%

UP 15.8%

UP 15.4%

UP 26.2%

PERCENT OF TOTAL SAMPLE

Welling & Company

EXPECTED TREND IN EXPENDITURES FOR CEMENTING SERVICES


NET INCREASE/DECREASE BY REGION
_____________________________________________________________________

US LAND

16.4% 8.3% 8 3% 7.5% 11.6% 19.7% 24.6% 13.7% 22.6%


10% 20% 30% 7
Welling & Company

GoM G M

CANADA

LATIN AMERICA

NORTH SEA/ EUR

WEST AFRICA

MIDDLE EAST/ N. AFR

ASIA PACIFIC

0%
PERCENT CHANGE

RANGES OF ANNUAL CEMENTING EXPENDITURES ___________________________________________________


30%

21%
20%

17%

17%

16%

18%

8%
10%

3%
0%
LESS THAN 1.1 MILLION 1.1 TO 3.0 MILLION 3.1 TO 5.0 MILLION 5.1 TO 10.0 MILLION 10.1 TO 20.0 MILLION 20.1 TO 50.0 MILLION OVER 50 MILLION

AVERAGE PER COMPANY :


PERCENT OF TOTAL

8
Welling & Company

$15,062,991

AVERAGE ANNUAL EXPENDITURES FOR CEMENTING SERVICE


BY COMPANY TYPE AND FOCUS ______________________________________________________________________
$40
29.220

$30
17.520 17.770 18.690 15.160

$20
12.560 6.850 8.480

13.370

$10

$0
MAJOR RS TOTAL LAN ND NOR RTH AMERIC CA SHEL LF NO OC MED SMALL IND D/ DY INT TERNATIONA AL DEEPWATE ER LARGE IND DY

AVERAGE EXPENDITURE PER MARKET SEGMENT (IN MILLIONS OF DOLLARS,)

Welling & Company

OPINION OF CURRENT PRICING


FOR SELECTED CEMENTING SERVICES

_______________________________________________________________
FAIRLY PRICED A LITTLE HIGH WAY TOO HIGH

80%

56%
60%

44%
40%

48% 38% 32%

29%

27% 22% 20%

25% 15% 14% %

20%

11%

11%

7%

0%
PRIMARY CEMENTING JOBS
PERCENT OF TOTAL SAMPLE

REMEDIAL/ SQUEEZE JOBS

P&A CEMENTING

FOAM CEMENTING

CEMENT BOND LOGGING

10

Welling & Company

DISTRIBUTION OF CEMENTING EXPENDITURES


BY TASK

___________________________________________________________________________________
PRIMARY CEMENTING REMEDIAL CEMENTING PLUG & ABANDON

TOTAL SAMPLE

81%

11%

8%

NORTH AMERICA

86%

10% 4%

INTERNATIONAL

79%

11%

10%

LAND SAMPLE

84%

10%

6%

OFFSHORE SHELF

76%

12%

12%

OFFSHORE DEEPWATER

78%

12%

10%

0%

20%

40%

60%

80%

100%
11

DISTRIBUTION OF IMPORTANCE RATINGS, SCALE 1-10

Welling & Company

INTENDED PURPOSE OF REMEDIAL/SQUEEZE JOBS Q

SHOE SQUEEZE 29%

SEAL PERFORATIONS 31%

LINER TOP SQUEEZE 17%

SEAL CASING LEAK 23%

12
PERCENT OF SAMPLE WITH REMEDIAL CEMENTING EXPENDITURES

Welling & Company

PREFERRED CEMENTING TECHNIQUE


FOR SELECTED REMEDIAL/ SQUEEZE JOBS

14%
SEAL PERFORATIONS

15%

16%

8% 12% 7% 9%
LINER TOP SQUEEZE

15% 14% 22%

HIGH PRESSURE LOW PRESSURE BRADEN HEAD

SEAL CASING LEAK

13%

12% 16%

21%

UNDER PACKER BLOCK SQUEEZE

9% 6%
SHOE SQUEEZE

17% 10%

18% 8%

19%

0%

10%

20%

30%
13

PERCENT OF TOTAL SAMPLE

Welling & Company

ANTICIPATED DRILLING AND P&A ACTIVITY


2010 AND 2011 TOTAL SAMPLE ___________________________________________________________
OIL WELLS GAS WELLS INJECTION WELLS PLUG & ABANDON

140
114.4

120 100 80 60 40 20 0
2010 LAND 2011 LAND 2010 SHELF 2011 SHELF 2010 DEEPWATER 2011 DEEPWATER

92.0

93.5

76.1

18.4 10.4 8.1

20.3

14.5 7.9 3.8 3.0

17.4 9.6 2.9 2.7 7.0 4.2 7.9 8.8 1.4 0.7 1.8 0.3

14

AVERAGE NUMBER OF WELLS TO DRILL/ P&A PER COMPANY

Welling & Company

ANTICIPATED DRILLING AND P&A ACTIVITY


2010 AND 2011 NORTH AMERICA SAMPLE ___________________________________________________________
OIL WELLS GAS WELLS INJECTION WELLS PLUG & ABANDON

140 120 100 80 60 40


20.3 110.7 96.4

135.8

132.9

21.7 4.9 7.2 7.4 1.0 4.2


2010 SHELF

20 0

9.6

8.3 4.3 0.5 2.7 4.7 4.0 0.3 1.3 3.7 3.5 0.1 0.3

2010 LAND

2011 LAND

2011 SHELF

2010 DEEPWATER 2011 DEEPWATER

15

AVERAGE NUMBER OF WELLS TO DRILL/ P&A PER COMPANY

Welling & Company

ANTICIPATED DRILLING AND P&A ACTIVITY


2010 AND 2011 INTERNATIONAL SAMPLE ___________________________________________________________
OIL WELLS GAS WELLS INJECTION WELLS PLUG & ABANDON

80

57.5

60.3

60

40
27.8 22.2

20
7.1 9.6 10.8 7.5 10.5 6.0 2.5 2.9 11.5 6.5 1.8 2.9
2011 SHELF

5.1 1.2 0.5 0.5

3.7

1.9

0.4 0.3

0
2010 LAND 2011 LAND 2010 SHELF 2010 DEEPWATER 2011 DEEPWATER

16

AVERAGE NUMBER OF WELLS TO DRILL/ P&A PER COMPANY

Welling & Company

CHARACTERISTICS OF WELLS TO DRILL OVER NEXT 2 YEARS


BY DEVIATION RANGES _____________________________________________________________________
LAND OFFSHORE SHELF OFFSHORE DEEPWATER

30-60 DEGREES 26%

30-60 DEGREES 39%

30-60 DEGREES 23%

0-30 DEGREES 50%

0-30 DEGREES 37%

OVER 60 DEGREES 37%

OVER 60 DEGREES 33% 0-30 0 30 DEGREES 28%

OVER 60 DEGREES 27%

WELLS >60 DEGREES DEVIATION BY TYPE: HORIZONTAL = 71% ERD = 14% J-TYPE = 9% PERCENT OF TOTAL SAMPLE

WELLS >60 DEGREES DEVIATION BY TYPE: HORIZONTAL = 51% ERD = 30% J-TYPE = 32%

WELLS >60 DEGREES DEVIATION BY TYPE: HORIZONTAL = 39% ERD = 43% 17 J-TYPE = 14%

Welling & Company

LATERAL STEPOUT DISTANCES OF HIGH DEVIATION WELLS


___________________________________________________________________________________

HORIZONTAL WELLS

37%

38%

25%

ERD WELLS

19%

23%

34%

1,000 - 3,000 FT J-TYPE WELLS

22%

16%

15%

3,000 - 6,000 FT OVER 6,000 FT 6 000

0%

20%

40%

60%

80%

100%
18

PERCENT OF WELLS WITH SELECTED STEPOUT DISTANCES

Welling & Company

CHARACTERISTICS OF CEMENTING JOBS OVER NEXT 2 YEARS


BY PRESSURE, TEMPERATURE AND DEPTH

EXPECTED PRESSURE RANGES:


TYPICAL/ AVERAGE = 6115 psi MAXIMUM/ AVERAGE = 9638 psi
REPORTED HIGH = OVER 35,000 psi ; REPORTED LOW = <500 psi O G O 3 000 O O 00

EXPECTED TEMPERATURE RANGES:


TYPICAL/ AVERAGE = 194 (F) MAXIMUM/ AVERAGE = 252 (F)
REPORTED HIGH = OVER 500 (F); REPORTED LOW = 90 (F)

EXPECTED DEPTH RANGES:


AVERAGE MAXIMUM TVD = 14,012 Feet
REPORTED HIGH = 50,000+ Feet; REPORTED LOW = 1200 Feet 50,000

AVERAGE MAXIMUM MEASURED DEPTH= 16,455 Feet


REPORTED HIGH = >50,000+ Feet; REPORTED LOW = 1200 Feet

19
AVERAGES PER COMPANY

Welling & Company

SHARE OF WELLS TO USE SELECTED MUD TYPES OR DRILLING SYSTEMS


_____________________________________________________________________

OIL BASED MUDS

42% 5% 25% 56% 2% 7% 6%


10% 20% 30% 40% 50% 60%
20
Welling & Company

PSEUDO-OIL BASED MUDS

SYNTHETIC MUDS

WATER BASED MUDS

FORMATE FLUIDS SALT ENRICHED/ SATURATED MUDS

AIR DRILLING SYSTEMS

0%
PERCENT OF WELLS TO USE

MULTI STAGE MULTI-STAGE CEMENTING


( (IFUSING) )

% OPERATORS USING

% WELLS TO USE

TYPICALNUMBEROFSTAGES PERWELL

TOTAL SAMPLE

51% 17% 20% 45% 14% 20% 14% 64% 21% 44% 16%
20% 40% 60% 80%

2.51 2.41 2.67 3.00 3 00 2.70 2.56

LAND

55%

OFFSHORE

GoM

US LAND

INTERNATIONAL

0%
PERCENT OF TOTAL SAMPLE

21
Welling & Company

BELIEF THAT MULTI-STAGE TOOLS ARE PROBLEMATIC

YES 27% NA/ DON'T KNOW 40%

(IF PROBLEMATIC) MOST COMMON PROBLEM ENCOUNTERED


TOOL MALFUNCTION= 27% LEAKING ISSUES= 22% EQUIPMENT QUALITY= 11% CEMENT PLACEMENT= 4% OTHER (19 ISSUES)= 38%
NO 33%

22
PERCENT OF TOTAL SAMPLE

Welling & Company

SHARE OF WELLS WITH ISOLATION CHALLENGES


SUCH AS ANNULAR CASING PRESSURE OR SURFACE CASING VENT FLOW

% OPERATORS WITH ISOLATION CHALLENGES

% WELLS WITH ISOLATION CHALLENGES

TOTAL SAMPLE

76%
30% 28%

LAND

75% 80%

OFFSHORE SHELF

29% 76% 42%

OFFSHORE DEEPWATER

NORTH AMERICA

72%
26%

INTERNATIONAL

78%
33%
20% 40% 60% 80% 100%

0%
PERCENT OF TOTAL SAMPLE

23

Welling & Company

STANDARDIZED vs CUSTOMIZED APPROACH TO CEMENTING JOBS ___________________________________________________________


STANDARDIZED APPROACH OR PREFER TO CUSTOMIZE WILLINGNESS TO SPEND MORE ON A CEMENTING JOB LEVERAGING CUSTOMIZED STATE-OF-ART TECHNOLOGY CUSTOMIZED, STATE OF ART IF ULTIMATE BENEFITS CAN BE DEMONSTRATED

USE BOTH APPROACHES 33%

FOLLOW STANDARDIZED APPROACH 38%

MAYBE 20%

YES 69%

NO 7%

NA/ DON T DON'T KNOW 4%


LIKE TO CUSTOMIZE 29%

(IF YES) What percent more are you Willing to invest to customize a solution?

AVERAGE = 29.5%
PERCENT OF TOTAL SAMPLE

24
Welling & Company

SHARE OF WELLS RUNNING CEMENT BOND LOG ANALYSES


AND SHARE OF CEMENTING JOBS NOT MEETING EXPECTATIONS

% JOBS RUNNING CEMENT BOND LOG % PRIMARY CEMENT JOBS NOT MEETING EXPECTATIONS % REMEDIAL CEMENT JOBS NOT MEETING EXPECTATIONS

TOTAL SAMPLE

51% 20% 25% 22% 26% 17% 16% 24% 41% 27% 56% 64% 64%

LAND OFFSHORE SHELF OFFSHORE DEEPWATER NORTH AMERICA

20% 21% 19%


20%

50% 27%
40% 60% 80%

INTERNATIONAL

0%
PERCENT OF TOTAL SAMPLE

25

Welling & Company

SHARE OF CEMENTING JOBS USING COMPUTER DESIGN SIMULATION

% OPERATORS USING

% JOBS TO USE

TOTAL SAMPLE

90%
25% % 26% 24% 97% 27%

LAND

84% 96%

OFFSHORE SHELF

OFFSHORE DEEPWATER

NORTH AMERICA

82%
21%

INTERNATIONAL

95%
27%
20% 40% 60% 80% 100%

0%

26
PERCENT OF TOTAL SAMPLE

Welling & Company

AREAS SUPPLIERS MOST NEED TO DEVOTE THEIR R&D EFFORTS


REGARDING SPECIFIC DRILLING & COMPLETION ENVIRONMENTS ___________________________________________________________________________________

9 or 10
12% 17% 17% 14% 9% 10% 5% 3%

7 or 8
46% 42% 40% 41% 37% 28%

6 or Lower
42% 41% 43% 45% 54% 62% 69% 72%

AVERAGE AVERAGE RATING

MPD OR UNDERBALANCED WELLS HP/HT ENVIRONMENTS (>15K Psi/>350 F) DEEPWATER CEMENTING HORIZONTAL WELLS ERD WELLS (>5,000 FT STEPOUT) GEOTHERMAL CEMENTING SHALE CEMENTING COAL BED METHANE CEMENTING

6.62 6.48 6.34 6.31 6.00 5.51 5.17 4.88

26% 25%

0%

20%

40%

60%

80%

100%
27

DISTRIBUTION OF IMPORTANCE RATINGS, SCALE 1-10

Welling & Company

AREAS SUPPLIERS MOST NEED TO DEVOTE THEIR R&D EFFORTS


REGARDING SPECIFIC CEMENTING EQUIPMENT & SERVICES ___________________________________________________________________________________

9 or 10

7 or 8

6 or Lower

AVERAGE RATING

SELF-HEALING/ SWELLABLE CEMENT CONSISTENT PRODUCT PERFORMANCE WELL CLEANOUT. SPACERS & DISPLACEMENT CORROSIVE RESISTANT CEMENT SPECIALTY ADDITIVES CEMENTING HEAD TECHNOLOGY CASING EQUIPMENT HIGH HORSEPOWER CEMENTING UNITS INCREASED PUMP RATES

16% 17% 11% 7% 4% 9% 6% 5% 5%

40% 37% 38% 33% 33% 28% 32% 26% 27%

44% 46% 51% 60% 63% 63% 62% 69% 68%

6.51 6.25 5.97 5.57 5.44 5.43 5.21 4.97 4.94 4 94

0%

20%

40%

60%

80%

100%
28

DISTRIBUTION OF IMPORTANCE RATINGS, SCALE 1-10

Welling & Company

AGREEMENT STATEMENTS

_______________________________

29

AGREEMENT WITH SELECTED STATEMENTS


CEMENTING IS A COMMODITY ; I SEE NO NEED TO PAY FOR A PREMIUM SERVICE

TEND TO DISAGREE
TOTAL SAMPLE MAJORS LARGE INDY MED/ SMALL INDY NOC LAND OFFSHORE SHELF OFFSHORE DEEPWATER NORTH AMERICA INTERNATIONAL

TEND TO AGREE
30% 19%

-54% -68% -51% -43% -52% -55% -50% -61% -55% 55% -53%

34% 35% 33% 28% 33% 25% 28% 31%

-100% -80% -60% -40% -20% 100% 80% 60% 40% 20%
PERCENT OF TOTAL SAMPLE

0%

20% 40% 60% 80%


30
Welling & Company

AGREEMENT WITH SELECTED STATEMENTS


I GET THE SAME QUALITY CEMENTING JOB FROM ALL THE SUPPLIERS IN MY AREA

TEND TO DISAGREE
TOTAL SAMPLE MAJORS LARGE INDY MED/ SMALL INDY NOC LAND OFFSHORE SHELF OFFSHORE DEEPWATER NORTH AMERICA INTERNATIONAL

TEND TO AGREE
24% 19% 23% 25%

-64% -66% -70% -65% -48% -63% -67% -61% -69% 69% -60%

33% 26% 17% 31% 26% 24%

-100% -80% 100% 80%


PERCENT OF TOTAL SAMPLE

-60% 60%

-40% 40%

-20% 20%

0%

20%

40%

60%
31

Welling & Company

AGREEMENT WITH SELECTED STATEMENTS


I PREFER TO WORK WITH A REP THAT I HAVE A LONGSTANDING RELATIONSHIP WITH

TEND TO DISAGREE
TOTAL SAMPLE MAJORS LARGE INDY MED/ SMALL INDY NOC LAND OFFSHORE SHELF OFFSHORE DEEPWATER NORTH AMERICA INTERNATIONAL

TEND TO AGREE
71% 76% 67% 66% 74% 73% 70% 80% 72% 70%

-12% -10% -9% -20% -14% -13% -10% -9% -12% 12% -13%

-40% 40%
PERCENT OF TOTAL SAMPLE

-20% 20%

0%

20%

40%

60%

80%

100%
32
Welling & Company

AGREEMENT WITH SELECTED STATEMENTS


THE ADDITIONAL COST TO ENSURE THE HOLE IS PROPERLY PREPARED AND CONDITIONED PRIOR TO THE CEMENTING IS JUSTIFIABLE

TEND TO DISAGREE
TOTAL SAMPLE MAJORS LARGE INDY MED/ SMALL INDY NOC LAND OFFSHORE SHELF OFFSHORE DEEPWATER NORTH AMERICA INTERNATIONAL

TEND TO AGREE
89% 89% 90% 96% 80%

-7% -5% 5% -7% -4% -15% -7% -8% -9% -6% 6% -10%

91% 87% 86% 91% 86%

-40% 40%
PERCENT OF TOTAL SAMPLE

-20% 20%

0%

20%

40%

60%

80%

100%
33
Welling & Company

PERCEIVED LEADING SUPPLIERS


FOR SELECTED CEMENTING APPLICATIONS

_______________________________

34

PERCEIVED LEADER FOR SELECTED APPLICATION OR WELL CONDITIONS -HP/HT CEMENTING-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

70%
60%

60%
51%

50%
41%

40%
31%

30% 20% 10% 0%


HALLIBURTON

25% 18% 11% 11% 11% 5% 6% 3% 19% 21% 18%

SCHLUMBERGER

BJ SERVICES

ALL OTHERS

NA/ DON'T KNOW

35

PERCENT OF TOTAL SAMPLE

Welling & Company

PERCEIVED LEADER FOR SELECTED APPLICATION OR WELL CONDITIONS -DEEPWATER CEMENTING-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

70% 60% 50% 40%


32% 29% 36% 30% 27% 19% 56%

44%

30% 20%

12%

9% 7% 5% 5% 3% 8%

10% 0%
HALLIBURTON SCHLUMBERGER

BJ SERVICES

ALL OTHERS

NA/ DON'T KNOW

36

PERCENT OF TOTAL SAMPLE

Welling & Company

PERCEIVED LEADER FOR SELECTED APPLICATION OR WELL CONDITIONS -HORIZONTAL CEMENTING-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

70% 60%
50%

55%

50% 40%

45%

35% 28%

30%
23% 19% 16% 17% 15% 10% 6% 8% 4%

20% 10% 0%
HALLIBURTON SCHLUMBERGER

15%

BJ SERVICES

ALL OTHERS

NA/ DON'T KNOW

37

PERCENT OF TOTAL SAMPLE

Welling & Company

PERCEIVED LEADER FOR SELECTED APPLICATION OR WELL CONDITIONS -SELF-HEALING / SWELLABLE CEMENT-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

60%

50%
38%

40%

35%

36% 35% 29%

35%

33% 27%

30%
24%

20%
10% 11% 9% %

10%
3% 3% 3%

0%
HALLIBURTON SCHLUMBERGER BJ SERVICES ALL OTHERS NA/ DON'T KNOW

38

PERCENT OF TOTAL SAMPLE

Welling & Company

PERCEIVED LEADER FOR SELECTED APPLICATION OR WELL CONDITIONS -LOW DENSITY / ULTRA-FINE CEMENTS-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

60%

50%
41%

45% 38% 39% 37% 40%

40%

30%

20%

16% 15% 17%

14% 15% 12%

10%

5%

7% 5%

0%
HALLIBURTON SCHLUMBERGER BJ SERVICES ALL OTHERS NA/ DON'T KNOW

39

PERCENT OF TOTAL SAMPLE

Welling & Company

PERCEIVED LEADER FOR SELECTED APPLICATION OR WELL CONDITIONS -CORROSIVE RESISTANT SLURRIES-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

70% 60% 50% 40% 30%


22% 38% 30% 27%

44% 39% 36%

43%

20% 10% 0%
HALLIBURTON

18% 10% 6% 2%

7% 6% 7%

SCHLUMBERGER

BJ SERVICES

ALL OTHERS

NA/ DON'T KNOW

40

PERCENT OF TOTAL SAMPLE

Welling & Company

PERCEIVED LEADER FOR SELECTED APPLICATION OR WELL CONDITIONS -CEMENTING TOOLS-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

80% 70%
61% 60%

63%

60% 50% 40% 30%


18% 21% 15% 12% 10% 11% 13% 7% 10% 5% 6% 2% 10% 9% 5%

20% 10% 0%
HALLIBURTON

SCHLUMBERGER

BJ SERVICES

WEATHERFORD

ALL OTHERS

NA/ DON'T KNOW

41

PERCENT OF TOTAL SAMPLE

Welling & Company

PERCEIVED LEADER FOR SELECTED APPLICATION OR WELL CONDITIONS -CEMENTING SOFTWARE TECHNOLOGY-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

70% 60%
48%

50%
43%

44% 41%

42% 37%

40% 30%

20%

20%
9% 9% 8% 5% 4% 6%

14% 7%

10% 0%
HALLIBURTON SCHLUMBERGER BJ SERVICES

ALL OTHERS

NA/ DON'T KNOW

42

PERCENT OF TOTAL SAMPLE

Welling & Company

PERCEIVED LEADER FOR SELECTED APPLICATION OR WELL CONDITIONS -CEMENT MIXING / PUMPING EQUIPMENTQ

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

80% 70%
56%

60% 50% 40%

54%

52%

32%

30% 20% 10% 0%


HALLIBURTON

27% 23% 18% 12% % 8% 9% 6% 15% 12% 8% 24%

SCHLUMBERGER

BJ SERVICES

ALL OTHERS

NA/ DON'T KNOW

43

PERCENT OF TOTAL SAMPLE

Welling & Company

PERCEIVED LEADER FOR SELECTED APPLICATION OR WELL CONDITIONS -FOAMED CEMENTING-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

60%
48% 42%

50%

40%

35%

34%

33%

35%

30%

20%

14% 11%

16%

15% 14% 15%

10%
3% 3% 3%

0%
HALLIBURTON SCHLUMBERGER BJ SERVICES ALL OTHERS NA/ DON'T KNOW

44

PERCENT OF TOTAL SAMPLE

Welling & Company

PERCEIVED LEADER FOR SELECTED APPLICATION OR WELL CONDITIONS -SHALE CEMENTING-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

70% 60%
51%

50%
40%

45% 40%

40%
32%

30% 20% 10% 0%

24% 19% 15% 14% 15% % 14% 8% 9% 9% 7%

HALLIBURTON

SCHLUMBERGER

BJ SERVICES

ALL OTHERS

NA/ DON'T KNOW

45

PERCENT OF TOTAL SAMPLE

Welling & Company

PERCEIVED LEADER FOR SELECTED APPLICATION OR WELL CONDITIONS -GEOTHERMAL CEMENTING-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

70% 60% 50% 40%


28% 28% 27%

55%

56% 53%

30% 20%
12% 14% 11% 9% 10% 8% 4% 5% 3%

10% 0%
HALLIBURTON SCHLUMBERGER BJ SERVICES

ALL OTHERS

NA/ DON'T KNOW

46

PERCENT OF TOTAL SAMPLE

Welling & Company

SUPPLIER ASSOCIATION WITH IMAGE FACTORS

_______________________________

47

SUPPLIER ASSOCIATED WITH SELECTED IMAGE FACTOR


-WORKS TO FIND NEW SOLUTIONS TO SAVE MY COMPANY TIME & MONEY WORKS MONEY-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

70% 60%
52%

50% 40%

48% 43%

30% 29%

31% 22% 23% 22% 16% 14% 13% 14% % 13% 18%

30% 20% 10% 0%


HALLIBURTON SCHLUMBERGER

BJ SERVICES

ALL OTHERS

NA/ DON'T KNOW

48

PERCENT OF TOTAL SAMPLE

Welling & Company

SUPPLIER ASSOCIATED WITH SELECTED IMAGE FACTOR


-BEST FOR INTEGRATED SOLUTIONSBEST SOLUTIONS

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

70% 60%
50% 48% 42% 36%

50% 40% 30% 20% 10% 0%

46% 41%

14% 13%

15%

14% 16% 12% 5% 6% 4%

HALLIBURTON

SCHLUMBERGER

BJ SERVICES

ALL OTHERS

NA/ DON'T KNOW

49

PERCENT OF TOTAL SAMPLE

Welling & Company

SUPPLIER ASSOCIATED WITH SELECTED IMAGE FACTOR


-LOW COST PROVIDER LOW PROVIDER-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

50%

40%
34% 32% 27% 26% 26%

36%

30%

21%

22% 19% 15%

20%
13% 14% 12%

16%

9%

10%

0%
HALLIBURTON SCHLUMBERGER BJ SERVICES ALL OTHERS NA/ DON'T KNOW

50

PERCENT OF TOTAL SAMPLE

Welling & Company

SUPPLIER ASSOCIATED WITH SELECTED IMAGE FACTOR


-COSTS MORE, BUT WORTH IT COSTS IT-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

60%

50%
40%

45% 38% 35% 31%

40%

30%

25%

26%

28% 23%

20%
9%

10%

7%

5%

4%

6% 4%

0%
HALLIBURTON SCHLUMBERGER BJ SERVICES ALL OTHERS NA/ DON'T KNOW

51

PERCENT OF TOTAL SAMPLE

Welling & Company

SUPPLIER ASSOCIATED WITH SELECTED IMAGE FACTOR


-UNDERSTANDS THE NEEDS OF MY LOCAL MARKET UNDERSTANDS MARKET-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

70% 60%
52%

51% 54%

50% 40%
27% 7% 30% 24% 20%

30%
23%

25%

20%
10%

15%

13% 10% 5%

16%

10% 0%
HALLIBURTON SCHLUMBERGER BJ SERVICES ALL OTHERS

NA/ DON'T KNOW

52

PERCENT OF TOTAL SAMPLE

Welling & Company

SUPPLIER ASSOCIATED WITH SELECTED IMAGE FACTOR


-RESPONDS QUICKLY TO MY CALL RESPONDS CALL-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

80% 70%
58%

60% 50% 40% 30% 20% 10% 0%

55% 50%

33%

34%

32% 24% 24% 23% 14% 16% 14% 9% 9% 9%

HALLIBURTON

SCHLUMBERGER

BJ SERVICES

ALL OTHERS

NA/ DON'T KNOW

53

PERCENT OF TOTAL SAMPLE

Welling & Company

SUPPLIER ASSOCIATED WITH SELECTED IMAGE FACTOR


-MOST RELIABLE CEMENTING EQUIPMENT MOST EQUIPMENT-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

80% 70%
61%

60% 50%

55% 49% 43%

40% 30% 20%

33% 24% 21% 17% 11% 7% 8% 3% 8% 7%

23%

10% 0%
HALLIBURTON SCHLUMBERGER BJ SERVICES ALL OTHERS

NA/ DON'T KNOW

54

PERCENT OF TOTAL SAMPLE

Welling & Company

SUPPLIER ASSOCIATED WITH SELECTED IMAGE FACTOR


-EXHIBITS TECHNOLOGY LEADERSHIP EXHIBITS LEADERSHIP-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

80% 70%
59%

60%
51% 51% 43%

50%
42%

40%
32%

30% 20%
11% 13%

10% 10% 10% 3% 3% 2% 10%

10% 0%
HALLIBURTON SCHLUMBERGER BJ SERVICES

ALL OTHERS

NA/ DON'T KNOW

55

PERCENT OF TOTAL SAMPLE

Welling & Company

SUPPLIER ASSOCIATED WITH SELECTED IMAGE FACTOR


-BEST TECHNICAL SUPPORTBEST SUPPORT

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

70% 60% 50%


40% 39% 41%

54% 54% 52%

40% 30%
16% 16% 16%

20%
7% 7% 7% 6% 6% 6%

10% 0%
HALLIBURTON SCHLUMBERGER BJ SERVICES ALL OTHERS

NA/ DON'T KNOW

56

PERCENT OF TOTAL SAMPLE

Welling & Company

SUPPLIER ASSOCIATED WITH SELECTED IMAGE FACTOR


-BEST OVERALL FIELD PERSONNEL BEST PERSONNEL-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

70% 60%
50% 50% 50%

50% 40%
30% 38%

30%
23% 17%

20% 10% 0%
HALLIBURTON SCHLUMBERGER

16%

15% 8% 10% 6% 12% 12% 12%

BJ SERVICES

ALL OTHERS

NA/ DON'T KNOW

57

PERCENT OF TOTAL SAMPLE

Welling & Company

SUPPLIER ASSOCIATED WITH SELECTED IMAGE FACTOR


-BEST HSE PROGRAMS AND RECORD BEST RECORD-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

70% 60%
48%

50%
43%

45% 43% 38%

47%

40% 30%

22% 18% 18% 15% 9% 8% 8% 16% 20%

20% 10% 0%
HALLIBURTON SCHLUMBERGER BJ SERVICES

ALL OTHERS

NA/ DON'T KNOW

58

PERCENT OF TOTAL SAMPLE

Welling & Company

SUPPLIER ASSOCIATED WITH SELECTED IMAGE FACTOR


-MOST CONSISTENT PRODUCT MOST PRODUCT-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

80% 70%
58%

60%
52%

50% 40% 30%

44% 41% 34% 27% 23% 19% 16% 14% 7% 9% 2% 12% 16%

20% 10% 0%
HALLIBURTON SCHLUMBERGER BJ SERVICES ALL OTHERS

NA/ DON'T KNOW

59

PERCENT OF TOTAL SAMPLE

Welling & Company

SUPPLIER ASSOCIATED WITH SELECTED IMAGE FACTOR


-MOST TRUSTED NAME IN THE CEMENTING FIELDMOST FIELD

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

80% 70% 60% 50%


41% 65% 65% 64%

40%
29%

30%
19%

20% 10% 0%
HALLIBURTON SCHLUMBERGER

16%

18% 13% 4% 10% 12% 7% 4% 4%

BJ SERVICES

ALL OTHERS

NA/ DON'T KNOW

60

PERCENT OF TOTAL SAMPLE

Welling & Company

SUPPLIER ASSOCIATED WITH SELECTED IMAGE FACTOR


-HAS CEMENTING PRODUCTS AVAILABLE THAT CAN MEET A BROAD RANGE OF NEEDS HAS NEEDS-

________________________________________________________________
TOTAL SAMPLE LAND SAMPLE OFFSHORE SAMPLE

80% 70% 60%


50% 65% 66% 64% 62%

50%
39%

40%
28%

32% 24%

30% 20%

9%

10% 6% 6% 7% 5%

10% 0%
HALLIBURTON SCHLUMBERGER BJ SERVICES ALL OTHERS

NA/ DON'T KNOW

61

PERCENT OF TOTAL SAMPLE

Welling & Company

HALLIBURTON ASSOCIATION WITH IMAGE FACTORS


CUSTOMER PERCEPTION OF SUPPLIER STRENGTHS & WEAKNESSES ________________________________________________________________________

Most trusted name in the cementing field Costs more, but worth it Best B t overall field personnel ll fi ld l Most reliable cementing equipment Best technical support Understands the needs of my local market Most consistent product Responds quickly to my call Works to find new solutions to save time & money Best for integrated solutions Broad range of cementing products available Exhibits technology leadership Best HSE programs and record Lowest cost provider

56% 36% 35% 29% 27% 27% 27% 24% 21% 17% 15% 5% 3% -19%
-40% -20% 0% 20% 40% 60% 80% 100%

-60%

62
* DATA NORMALIZED BASED ON SUPPLIER MARKET PENETRATION

Welling & Company

SCHLUMBERGER ASSOCIATION WITH IMAGE FACTORS


CUSTOMER PERCEPTION OF SUPPLIER STRENGTHS & WEAKNESSES ________________________________________________________________________

Exhibits technology leadership Best HSE programs and record Best for integrated solutions Costs more, but worth it Best technical support Broad range of cementing products available g gp Most consistent product Best overall field personnel Most reliable cementing equipment Works to find new solutions to save time & money Responds quickly to my call Most trusted name in the cementing field Understands the needs of my local market Lowest cost provider

51% 28% 27% 26% 12% 6% -1% -4% -8% -10% -11% -17% -33% -52%
-60% -40% -20% 0% 20% 40% 60% 80%

-80%

63
* DATA NORMALIZED BASED ON SUPPLIER MARKET PENETRATION

Welling & Company

BJ SERVICES ASSOCIATION WITH IMAGE FACTORS


CUSTOMER PERCEPTION OF SUPPLIER STRENGTHS & WEAKNESSES ________________________________________________________________________

Lowest cost provider Understands the needs of my local market Works t fi d W k to find new solutions to save time & money l ti t ti Responds quickly to my call Broad range of cementing products available Most reliable cementing equipment Most consistent product Best overall field personnel Best HSE programs and record Most trusted name in the cementing field Best technical support Best for integrated solutions Exhibits technology leadership Costs more, but worth it

70% 6% -11% 11% -13% -21% -21% -26% -31% -31% -39% -40% -43% -56% -62%
-60% -40% -20% 0% 20% 40% 60% 80% 100%

-80%

64
* DATA NORMALIZED BASED ON SUPPLIER MARKET PENETRATION

Welling & Company

SUPPLIER PENETRATION, MARKET SHARE PENETRATION & PERFORMANCE RATINGS

_______________________________
NUMBEROFRESPONDENTSRATINGEACHSUPPLIER HALLIBURTON=169 SCHLUMBERGER=139 BJSERVICES=104 ALLOTHERS=71 ALL OTHERS 71

65

SUPPLIER PENETRATION FOR CEMENTING SERVICES


PURCHASED PAST 2 YRS

HALLIBURTON

75%

SCHLUMBERGER

63%
AVERAGE NUMBER OF SUPPLIERS USED:

2.09
BJ SERVICES

47%

ALL OTHERS

24%

0%

20%

40%

60%

80%

100%

66
PERCENT OF TOTAL SAMPLES

Welling & Company

SUPPLIER PENETRATION FOR CEMENTING SERVICES


LAND vs OFFSHORE ENVIRONMENTS PURCHASED PAST 2 YRS

LAND

OFFSHORE SHELF

OFFSHORE DEEPWATER
77%

HALLIBURTON

71% 75% 59%

SCHLUMBERGER

69% 70% 49%

BJ SERVICES

43% 50% 37%

AVERAGE NUMBER OF SUPPLIERS USED: LAND = 2.22 SHELF = 2 07 2.07 DEEPWATER = 2.04

ALL OTHERS

25% 9%
0% 20% 40% 60% 80% 100%

67
Welling & Company

PERCENT OF RESPECTIVE SAMPLES

SUPPLIER PENETRATION FOR CEMENTING SERVICES


BY CO COMPANY TYPE -- PURCHASED PAST 2 YRS C S S S

MAJORS

LARGE IND ARGE

MED/ SMALL IND SMA

NOC

HALLIBURTON

74% 73% 82% 72% 67%

SCHLUMBERGER

59% 60% 71% 53%

BJ SERVICES

43% 47% 44% 23% 21% 30% 50% 0% 20% 40% 60% 80%

AVERAGE NUMBER OF SUPPLIERS USED: MAJORS = 2.17 LARGE IND.= 1.96 MED/ SMALL IND. = 2.19 NOC = 2.37

ALL OTHERS

100%

68
PERCENT OF RESPECTIVE SAMPLES

Welling & Company

SUPPLIER PENETRATION FOR CEMENTING SERVICES


BY WESTERN HEMISPHERE -- PURCHASED PAST 2 YRS S S C S S S

GoM

US LAND

CANADA

LATIN AMERICA 80% 82% 72% 71% 67% 62%

HALLIBURTON

SCHLUMBERGER

44% 64% 53% 50% 0% 61% 60%

BJ SERVICES

AVERAGE NUMBER OF SUPPLIERS USED: GoM = 2.00 US LAND = 2.21 CANADA = 2.39 LATIN AMERICA = 2.15

ALL OTHERS

27% 62% 20% 0% 20% 40% 60% 80% 100%

69
PERCENT OF RESPECTIVE SAMPLES

Welling & Company

SUPPLIER PENETRATION FOR CEMENTING SERVICES


BY EASTERN HEMISPHERE -- PURCHASED PAST 2 YRS S S C S S S

NORTH SEA

WEST AFRICA

MIDDLE EAST

ASIA PACIFIC

81%
HALLIBURTON

74% 83% 62% 84% 80% 72% 58% 28%

SCHLUMBERGER

BJ SERVICES

46% 45% 48% 19%

AVERAGE NUMBER OF SUPPLIERS USED: NORTH SEA= 2.12 WEST AFRICA = 2.09 MIDDLE EAST = 2.38 ASIA PACIFIC = 1.93

ALL OTHERS

9% 38% 25% 0% 20% 40% 60% 80% 100%

70
Welling & Company

PERCENT OF RESPECTIVE SAMPLES

SUPPLIER AWARDED MOST RECENT JOB FOR CEMENTING SERVICES

HALLIBURTON

47%

SCHLUMBERGER

31%

BJ SERVICES

20% %

ALL OTHERS

10%

0%

20%

40%

60%

71
PERCENT OF TOTAL SAMPLE

Welling & Company

SUPPLIER AWARDED MOST RECENT JOB FOR CEMENTING SERVICES


LAND vs O S O s OFFSHORE ENVIRONMENTS O S

LAND

OFFSHORE SHELF

OFFSHORE DEEPWATER
48% 46% 44%

HALLIBURTON

25% SCHLUMBERGER 36% 42% 24% BJ SERVICES 15% 19% 10% 11% 3%
0% 20% 40% 60%

ALL OTHERS

72
PERCENT OF RESPECTIVE SAMPLES

Welling & Company

REASONS FOR AWARDING MOST RECENT CEMENTING JOB

48%
HALLIBURTON

15% 14% 16% 10% 5% 57%

PRICE/ CONTRACT EQUIPMENT QUALITY

SCHLUMBERGER

14% 16% 20% 12% 6% 71% 8%

S SERVICE/ C / PERSONNEL AVAILABILITY

TRACK RECORD TECHNICAL CONCERNS

BJ SERVICES

4% 10% 10% 2%

0%
PERCENT OF RESPECTIVE SAMPLES

20%

40%

60%

80%
73
Welling & Company

RETENTION RATES FOR SELECTED SUPPLIERS


- CEMENTING SERVICES_____________________________________________________________________
TOTAL SAMPLE LAND SHELF DEEPWATER

80%

63% 62% 65% 59%


60%

60% 49% 42% 52% 43% 35% 38% 49%

40%

20%

0%
HALLIBURTON SCHLUMBERGER BJ SERVICES

74
CALCULATED PERCENTAGE: SUPPLIER AWARDED RECENT ORDER DIVIDED BY SUPPLIER PENETRATION

Welling & Company

ESTIMATED MARKET SHARES PURCHASES PAST 2 YEARS


CEMENTING SERVICES TOTAL SAMPLE

SCHLUMBERGER 30%

HALLIBURTON 41%

BJ SERVICES 17%

ALL OTHERS 12%

75
AVERAGE SHARE OF CEMENTING EXPENDITURES PER COMPANY

Welling & Company

ESTIMATED MARKET SHARES PURCHASES PAST 2 YEARS


CEMENTING SERVICES LAND SAMPLE

SCHLUMBERGER 25%

HALLIBURTON 42%

BJ SERVICES 19%

ALL OTHERS 14%

76
AVERAGE SHARE OF CEMENTING EXPENDITURES PER COMPANY

Welling & Company

ESTIMATED MARKET SHARES PURCHASES PAST 2 YEARS


CEMENTING SERVICES OFFSHORE SHELF SAMPLE

SCHLUMBERGER 35%

HALLIBURTON 39%

BJ SERVICES 15% ALL OTHERS 11%

77
AVERAGE SHARE OF CEMENTING EXPENDITURES PER COMPANY

Welling & Company

ESTIMATED MARKET SHARES PURCHASES PAST 2 YEARS


CEMENTING SERVICES OFFSHORE DEEPWATER SAMPLE

SCHLUMBERGER 36%

HALLIBURTON 38%

BJ SERVICES 23% ALL OTHERS 3%

78
AVERAGE SHARE OF CEMENTING EXPENDITURES PER COMPANY

Welling & Company

ESTIMATED MARKET SHARES PURCHASES PAST 2 YEARS


CEMENTING SERVICES NORTH AMERICAN SAMPLE

SCHLUMBERGER 26%

HALLIBURTON 42%

BJ SERVICES 19%

ALL OTHERS 13%

79
AVERAGE SHARE OF CEMENTING EXPENDITURES PER COMPANY

Welling & Company

ESTIMATED MARKET SHARES PURCHASES PAST 2 YEARS


CEMENTING SERVICES INTERNATIONAL SAMPLE

SCHLUMBERGER 34%

HALLIBURTON 40%

BJ SERVICES 17% ALL OTHERS 9%

80
AVERAGE SHARE OF CEMENTING EXPENDITURES PER COMPANY

Welling & Company

SHARE / PENETRATION RATIO


-CEMENTING SERVICES CEMENTING

________________________________________________________________
LAND
80

SHELF

DEEPWATER

60

54.5

54.9 50.7 42.4 50.7

51.4 46.0 38.8


AVERAGE
LAND =45.1 SHELF = 48.3 DEEPWATER = 49.0

40

34.9

20

0
HALLIBURTON SCHLUMBERGER BJ SERVICES
CALCULATED SCORE: MARKET PENETRATION (PAST 2 YRS) DIVIDED BY ESTIMATED MARKET SHARE (** IF LAND OPERATORS USE AN AVERAGE OF 2.22 SUPPLIERS, AVERAGE S/P RATIO WOULD BE 45.1. ANY SUPPLIER GETTING A SCORE HIGHER THAN 45.1 IS GETTING MORE THAN HIS FAIR SHARE OF A TYPICAL CUSTOMERS BUSINESS)

81
Welling & Company

IMPORTANCE OF SELECTION CRITERIA FOR CEMENTING SERVICES ______________________________________________________________


RELIABILITY AND QUALITY OF EQUIPMENT HIGHLY TRAINED & CAPABLE FIELD PERSONNEL CONSISTENT PRODUCT QUALITY AVAILABILITY OF EQUIPMENT & CREWS COMMITMENT TO HSE POLICIES TRACK RECORD/ PAST FAVORABLE EXPERIENCE OVERALL TECHNICAL SUPPORT & SERVICE ABLILITY TO HANDLE TECHNICAL CHALLENGES PRICE COMPETITIVENESS RESPONSIVE TO NEEDS LOCAL LAB SERVICES MODELING SOFTWARE DIFFERENTIATING TECHNOLOGY HIGH HORSEPOWER CEMENTING EQUIPMENT

9.12 9 12 9.02 9.01 8.70 8 70 8.70 8.58 8.55 8.49 8.34 8.32 8.08 7.37 7.24 7.20

6.0 60

6.5 65

7.0 70

7.5 75

8.0 80

8.5 85

9.0 90

9.5 95

10.0 10 0

82
AVERAGERATING,SCALE110

Welling & Company

CEMENTING SERVICES SUPPLIER RATINGS


-RELIABILITY AND QUALITY OF EQUIPMENTRELIABILITY EQUIPMENT _____________________________________________________________________

STATED IMPORTANCE

9.12

HALLIBURTON

8.05

SCHLUMBERGER

7.91

BJ SERVICES

7.44
6.0 7.0 8.0 9.0 10.0
83

5.0

AVERAGE RATING, SCALE 1-10

Welling & Company

CEMENTING SERVICES SUPPLIER RATINGS


-HIGHLY TRAINED & CAPABLE FIELD PERSONNELHIGHLY PERSONNEL _____________________________________________________________________

STATED IMPORTANCE

9.02

HALLIBURTON

7.84

SCHLUMBERGER

7.68

BJ SERVICES

7.13
6.0 7.0 8.0 9.0 10.0
84

5.0

AVERAGE RATING, SCALE 1-10

Welling & Company

CEMENTING SERVICES SUPPLIER RATINGS


-CONSISTENT PRODUCT QUALITYCONSISTENT QUALITY _____________________________________________________________________

STATED IMPORTANCE

9.01

HALLIBURTON

8.00

SCHLUMBERGER

7.91

BJ SERVICES

7.54
6.0 7.0 8.0 9.0 10.0
85

5.0

AVERAGE RATING, SCALE 1-10

Welling & Company

CEMENTING SERVICES SUPPLIER RATINGS


-AVAILABILITY OF EQUIPMENT & CREWS AVAILABILITY CREWS_____________________________________________________________________

STATED IMPORTANCE

8.70

HALLIBURTON

7.74

SCHLUMBERGER

7.55

BJ SERVICES

7.20
6.0 7.0 8.0 9.0 10.0
86

5.0

AVERAGE RATING, SCALE 1-10

Welling & Company

CEMENTING SERVICES SUPPLIER RATINGS


-COMMITMENT TO HSE POLICIESCOMMITMENT POLICIES _____________________________________________________________________

STATED IMPORTANCE

8.70

SCHLUMBERGER

8.33

HALLIBURTON

8.05

BJ SERVICES

7.70
6.0 7.0 8.0 9.0 10.0
87

5.0

AVERAGE RATING, SCALE 1-10

Welling & Company

CEMENTING SERVICES SUPPLIER RATINGS


-TRACK RECORD / PAST FAVORABLE EXPERIENCETRACK EXPERIENCE _____________________________________________________________________

STATED IMPORTANCE

8.58

HALLIBURTON

7.90

SCHLUMBERGER

7.78

BJ SERVICES

7.50
6.0 7.0 8.0 9.0 10.0
88

5.0

AVERAGE RATING, SCALE 1-10

Welling & Company

CEMENTING SERVICES SUPPLIER RATINGS


-OVERALL TECHNICAL SUPPORT & SERVICE OVERALL SERVICE_____________________________________________________________________

STATED IMPORTANCE

8.55

HALLIBURTON

7.87

SCHLUMBERGER

7.77

BJ SERVICES

7.25
6.0 7.0 8.0 9.0 10.0
89

5.0

AVERAGE RATING, SCALE 1-10

Welling & Company

CEMENTING SERVICES SUPPLIER RATINGS


-ABILITY TO HANDLE TECHNICAL CHALLENGESABILITY CHALLENGES _____________________________________________________________________

STATED IMPORTANCE

8.49

SCHLUMBERGER

8.06

HALLIBURTON

7.81

BJ SERVICES

7.06
6.0 7.0 8.0 9.0 10.0
90

5.0

AVERAGE RATING, SCALE 1-10

Welling & Company

CEMENTING SERVICES SUPPLIER RATINGS


-PRICE COMPETITIVENESSPRICE COMPETITIVENESS _____________________________________________________________________

STATED IMPORTANCE

8.34

BJ SERVICES

7.31

HALLIBURTON

7.20

SCHLUMBERGER

6.78
6.0 7.0 8.0 9.0 10.0
91

5.0

AVERAGE RATING, SCALE 1-10

Welling & Company

CEMENTING SERVICES SUPPLIER RATINGS


-RESPONSIVENESS TO NEEDSRESPONSIVENESS NEEDS _____________________________________________________________________

STATED IMPORTANCE

8.32

HALLIBURTON

7.67

SCHLUMBERGER

7.62

BJ SERVICES

7.25
6.0 7.0 8.0 9.0 10.0
92

5.0

AVERAGE RATING, SCALE 1-10

Welling & Company

CEMENTING SERVICES SUPPLIER RATINGS


-LOCAL LAB SERVICESLOCAL SERVICES _____________________________________________________________________

STATED IMPORTANCE

8.08

HALLIBURTON

7.71

SCHLUMBERGER

7.62

BJ SERVICES

7.40
6.0 7.0 8.0 9.0 10.0
93

5.0

AVERAGE RATING, SCALE 1-10

Welling & Company

CEMENTING SERVICES SUPPLIER RATINGS


-MODELING SOFTWARE MODELING SOFTWARE_____________________________________________________________________

HALLIBURTON

7.74

SCHLUMBERGER

7.74

STATED IMPORTANCE

7.37

BJ SERVICES

6.84
6.0 7.0 8.0 9.0 10.0
94

5.0

AVERAGE RATING, SCALE 1-10

Welling & Company

CEMENTING SERVICES SUPPLIER RATINGS


-DIFFERENTIATING TECHNOLOGY DIFFERENTIATING TECHNOLOGY_____________________________________________________________________

SCHLUMBERGER

7.30

STATED IMPORTANCE

7.24

HALLIBURTON

7.23

BJ SERVICES

6.52
6.0 7.0 8.0 9.0 10.0
95

5.0

AVERAGE RATING, SCALE 1-10

Welling & Company

CEMENTING SERVICES SUPPLIER RATINGS


-AVAILABILITY OF HIGH HORSEPOWER CEMENTING EQUIPMENT AVAILABILITY EQUIPMENT_____________________________________________________________________

HALLIBURTON

7.48

SCHLUMBERGER

7.48

BJ SERVICES

7.21

STATED IMPORTANCE

7.20
6.0 7.0 8.0 9.0 10.0
96

5.0

AVERAGE RATING, SCALE 1-10

Welling & Company

NON-PRICE FACTOR WITH GREATEST INFLUENCE IN SELECTION DECISION -CEMENTING SERVICESCEMENTING SERVICES ______________________________________________________________

PERSONNEL & SERVICE QUALITY QUALITY/ RELIABLITY OF EQUIPMENT

46% 23%

AVAILABILITY/ DELIVERY

11%

TECHNICAL SUPPORT

6% 3%

HSE

OTHER ISSUES

8%
10% 20% 30% 40% 50%

0%
PERCENT OF TOTAL SAMPLE

97
Welling & Company

SUPPLIERS CITED AS PERFORMING BEST/ NEEDS IMPROVEMENT


ON NON PRICE FACTORS OF MOST IMPORTANCE TO BUYERS NON-PRICE ____________________________________________________________________________
NEEDS IMPROVEMENT PERFORMS BEST

PERSONNEL/SERVICE QUALITY
HALLIBURTON

-20% -29% -25% -10% 7% 12% 34%

47%

SCHLUMBERGER

BJ SERVICES

ALL OTHERS

EQUIPMENT QUALITY

HALLIBURTON

-17% -21% -29% -6%


-30% -20% -10% 0%

45% 45% 12% 3%


10% 20% 30% 40%

SCHLUMBERGER

BJ SERVICES

ALL OTHERS

-40%

9 50%8

NON-PRICE FACTORS OF MOST IMPORTANCE IN RED

Welling & Company

HALLIBURTON vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

TOTALSAMPLE

Reliability and quality of equipment Highly trained & capable field personnel Consistent product quality C i t t d t lit Availability of equipment & crews Commitment to HSE policies Track record/ Past favorable experience Overall technical support & service Ability to handle technical challenges Price competitiveness Responsive to needs Local Lab services g Modeling software Differentiating technology High horsepower cementing equipment

3% 4% 2% 3% 0% 2% 3% 2% 1% 2% 2% 4% 3% 1%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

169RESPONDENTS

99
Welling & Company

HALLIBURTON vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

LANDSAMPLE

Reliability and quality of equipment Highly trained & capable field personnel Consistent product quality C i t t d t lit Availability of equipment & crews Commitment to HSE policies Track record/ Past favorable experience Responsive to needs Ability to handle technical challenges Price competitiveness Overall technical support & service Local Lab services g Modeling software High horsepower cementing equipment Differentiating technology

4% 5% 2% 4% 0% 4% 2% 2% 2% 4% 3% 5% 2% 5%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

88RESPONDENTS

100
Welling & Company

HALLIBURTON vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

TOTAL OFFSHORE SAMPLE

Reliability and quality of equipment Consistent product quality Highly t i d Hi hl trained & capable field personnel bl fi ld l Overall technical support & service Commitment to HSE policies Track record/ Past favorable experience Availability of equipment & crews Ability to handle technical challenges Price competitiveness Local Lab services Responsive to needs g Modeling software Differentiating technology High horsepower cementing equipment

3% 3% 3% 3% 0% 1% 3% 2% 1% 1% 2% 3% 2% 1%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

80RESPONDENTS

101
Welling & Company

HALLIBURTON vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

GULFOFMEXICOSAMPLE

Highly trained & capable field personnel Track record/ Past favorable experience Consistent product quality C i t t d t lit Ability to handle technical challenges Reliability and quality of equipment Price competitiveness Responsive to needs High horsepower cementing equipment Availability of equipment & crews Overall technical support & service Commitment to HSE policies g gy Differentiating technology Local Lab services Modeling software

-2% -6% 4% 1% -2% -10% -9% -6% -5% 5% -4% 1% -7% -12% 0%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

10RESPONDENTS

102
Welling & Company

HALLIBURTON vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

US LAND SAMPLE

Highly trained & capable field personnel Reliability and quality of equipment Consistent product quality C i t t d t lit Availability of equipment & crews Ability to handle technical challenges Responsive to needs High horsepower cementing equipment Track record/ Past favorable experience Overall technical support & service Price competitiveness Commitment to HSE policies g Modeling software Local Lab services Differentiating technology

5% 5% 3% 5% 1% 2% 3% 1% 4% 0% 0% 3% 1% 4%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

61RESPONDENTS

103
Welling & Company

HALLIBURTON vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

INTERNATIONALSAMPLE

Reliability and quality of equipment Consistent product quality Highly t i d Hi hl trained & capable field personnel bl fi ld l Track record/ Past favorable experience Overall technical support & service Availability of equipment & crews Ability to handle technical challenges High horsepower cementing equipment Commitment to HSE policies Price competitiveness Responsive to needs g Modeling software Local Lab services Differentiating technology

4% 4% 5% 4% 4% 4% 4% 2% 1% 3% 3% 5% 2% 4%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

104RESPONDENTS

104
Welling & Company

HALLIBURTON vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

WESTERNHEMISPHERESAMPLE

Highly trained & capable field personnel Reliability and quality of equipm ent Consistent product quality Ablility to handle technical challenges Availability of equipm ent & crew s Track record/ Past favorable experience T k d/ P t f bl i Responsive to needs Availability of high horsepow er cem enting equipm ent Price com petitiveness Overall technical support & service Com m itm ent to HSE policies Local Lab services Modeling softw are Differentiating technology

4% 5% 3% 3% 2% 1% 1% 1% -1% 1% 3% 0% 1% 5% 3%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

104RESPONDENTS

Welling & Company

HALLIBURTON vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

EASTERNHEMISPHERESAMPLE

Reliability and quality of equipm ent Consistent product quality Highly trained & capable field personnel Track record/ Past favorable experience Availability of equipm ent & crew s Overall technical support & service O ll t h i l t i Ablility to handle technical challenges Availability of high horsepow er cem enting equipm ent Com m itm ent to HSE policies Price com petitiveness Responsive to needs Modeling softw are Differentiating technology Local Lab services

3% 3% 5% 4% 4% 4% 3% 1% 1% 3% 3% 4% 3% 3%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

104RESPONDENTS
Welling & Company

SCHLUMBERGER vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

TOTALSAMPLE

Reliability and quality of equipment Highly trained & capable field personnel Consistent product quality C i t t d t lit Availability of equipment & crews Commitment to HSE policies Track record/ Past favorable experience Overall technical support & service Ability to handle technical challenges Price competitiveness Responsive to needs Local Lab services g Modeling software Differentiating technology High horsepower cementing equipment

1% 2% 1% 1% 4% 1% 2% 5% -4% 4% 1% 1% 4% 4% 1%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

139RESPONDENTS

107
Welling & Company

SCHLUMBERGER vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

LANDSAMPLE

Reliability and quality of equipment Highly trained & capable field personnel Consistent product quality C i t t d t lit Availability of equipment & crews Commitment to HSE policies Track record/ Past favorable experience Responsive to needs Ability to handle technical challenges Price competitiveness Overall technical support & service Local Lab services g Modeling software High horsepower cementing equipment Differentiating technology

0% -1% 1% 1% 5% -1% 4% 5% -2% 2% 1% 0% 4% -3% 3%


-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

62RESPONDENTS

108
Welling & Company

SCHLUMBERGER vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

TOTAL OFFSHORE SAMPLE

Reliability and quality of equipment Consistent product quality Highly t i d Hi hl trained & capable field personnel bl fi ld l Overall technical support & service Commitment to HSE policies Track record/ Past favorable experience Availability of equipment & crews Ability to handle technical challenges Price competitiveness Local Lab services Responsive to needs g Modeling software Differentiating technology High horsepower cementing equipment

2% 1% 4% 2% 3% 1% 0% 6% -7% 7% 1% -1% 5% 4% 4%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

76RESPONDENTS

109
Welling & Company

SCHLUMBERGER vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)
Highly trained & capable field personnel Track record/ Past favorable experience Consistent product quality p q y Ability to handle technical challenges Reliability and quality of equipm ent Price com petitiveness Responsive to needs High horsepow er cem enting equipm ent Availability of equipm ent & crew s Overall technical support & service Com m itm ent to HSE policies Differentiating technology Local Lab services Modeling softw are

GULFOFMEXICOSAMPLE

-5% -9% -6% -2% 2% -14% 14% -11% -6% -3% 3% -1% 3% -7% 7% -5% 2%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

10RESPONDENTS

110
Welling & Company

SCHLUMBERGER vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

US LAND SAMPLE

Highly trained & capable field personnel Reliability and quality of equipment Consistent product quality C i t t d t lit Availability of equipment & crews Ability to handle technical challenges Responsive to needs High horsepower cementing equipment Track record/ Past favorable experience Overall technical support & service Price competitiveness Commitment to HSE policies g Modeling software Local Lab services Differentiating technology

-2% -2% -2% 2% -1% -1% -2% -7% -1% -5% 5% -1% 4% 0% -2% -2%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

38RESPONDENTS

111
Welling & Company

SCHLUMBERGER vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

INTERNATIONALSAMPLE

Reliability and quality of equipment Consistent product quality Highly t i d Hi hl trained & capable field personnel bl fi ld l Track record/ Past favorable experience Overall technical support & service Availability of equipment & crews Ability to handle technical challenges High horsepower cementing equipment Commitment to HSE policies Price competitiveness Responsive to needs g Modeling software Local Lab services Differentiating technology

2% 2% 4% 1% 3% 0% 7% 3% 5% -5% 1% 6% 1% 6%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

99RESPONDENTS

112
Welling & Company

SCHLUMBERGER vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

WESTERNHEMISPHERESAMPLE

Highly trained & capable field personnel Reliability and quality of equipm ent Consistent product quality Ablility to handle technical challenges Availability of equipm ent & crew s Track record/ Past favorable experience T k d/ P t f bl i Responsive to needs Availability of high horsepow er cem enting equipm ent Price com petitiveness Overall technical support & service Com m itm ent to HSE policies Local Lab services Modeling softw are Differentiating technology

-2% -2% -3% 1% 0% -2% 2% -1% -2% -3% -2% 3% -2% 1% 0%


-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

58RESPONDENTS

Welling & Company

SCHLUMBERGER vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

EASTERNHEMISPHERESAMPLE

Reliability and quality of equipm ent Consistent product quality Highly trained & capable field personnel Track record/ Past favorable experience Availability of equipm ent & crew s Overall technical support & service O ll t h i l t i Ablility to handle technical challenges Availability of high horsepow er cem enting equipm ent Com m itm ent to HSE policies Price com petitiveness Responsive to needs Modeling softw are Differentiating technology Local Lab services

2% 2% 3% 2% 0% 4% 9% 3% 5% -6% 1% 6% 7% 1%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

95RESPONDENTS

Welling & Company

BJ SERVICES vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

TOTALSAMPLE

Reliability and quality of equipment Highly trained & capable field personnel Consistent product quality C i t t d t lit Availability of equipment & crews Commitment to HSE policies Track record/ Past favorable experience Overall technical support & service Ability to handle technical challenges Price competitiveness Responsive to needs Local Lab services g Modeling software Differentiating technology High horsepower cementing equipment

-5% -6% -4% 4% -4% -4% -3% 3% -5% -8% 3% -4% -2% -8% -7% -2%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

104RESPONDENTS

115
Welling & Company

BJ SERVICES vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

LANDSAMPLE

Reliability and quality of equipment Highly trained & capable field personnel Consistent product quality C i t t d t lit Availability of equipment & crews Commitment to HSE policies Track record/ Past favorable experience Responsive to needs Ability to handle technical challenges Price competitiveness Overall technical support & service Local Lab services g Modeling software High horsepower cementing equipment Differentiating technology

-4% -4% -3% 3% -5% -5% -3% -6% -7% 0% -4% -3% -8% 1% -9%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

53RESPONDENTS

116
Welling & Company

BJ SERVICES vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

TOTAL OFFSHORE SAMPLE

Reliability and quality of equipment Consistent product quality Highly t i d Hi hl trained & capable field personnel bl fi ld l Overall technical support & service Commitment to HSE policies Track record/ Past favorable experience Availability of equipment & crews Ability to handle technical challenges Price competitiveness Local Lab services Responsive to needs g Modeling software Differentiating technology High horsepower cementing equipment

-5% -4% -7% % -5% -4% -2% 2% -3% -8% 6% -2% -1% -8% -5% -5%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

51RESPONDENTS

117
Welling & Company

BJ SERVICES vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

GULFOFMEXICOSAMPLE

Highly trained & capable field personnel Track record/ Past favorable experience Consistent product quality C i t t d t lit Ability to handle technical challenges Reliability and quality of equipment Price competitiveness Responsive to needs High horsepower cementing equipment Availability of equipment & crews Overall technical support & service Commitment to HSE policies g gy Differentiating technology Local Lab services Modeling software

7% 15% 2% 1% 0% 24% 20% 12% 9% 5% -3% 14% 17% -2%


-15% -10% -5% 0% 5% 10% 15% 20% 25%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

11RESPONDENTS

118
Welling & Company

BJ SERVICES vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

US LAND SAMPLE

Highly trained & capable field personnel Reliability and quality of equipment Consistent product quality C i t t d t lit Availability of equipment & crews Ability to handle technical challenges Responsive to needs High horsepower cementing equipment Track record/ Past favorable experience Overall technical support & service Price competitiveness Commitment to HSE policies g Modeling software Local Lab services Differentiating technology

-3% -3% -1% -4% 0% -1% 1% 5% 0% 0% 0% -4% -4% 1% -2%


-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

34RESPONDENTS

119
Welling & Company

BJ SERVICES vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

INTERNATIONALSAMPLE

Reliability and quality of equipment Consistent product quality Highly t i d Hi hl trained & capable field personnel bl fi ld l Track record/ Past favorable experience Overall technical support & service Availability of equipment & crews Ability to handle technical challenges High horsepower cementing equipment Commitment to HSE policies Price competitiveness Responsive to needs g Modeling software Local Lab services Differentiating technology

-6% -5% -9% 9% -5% -8% -4% -11% -5% -6% 2% -5% -11% -3% -10%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

58RESPONDENTS

120
Welling & Company

BJ SERVICES vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

WESTERNHEMISPHERESAMPLE

Highly trained & capable field personnel Reliability and quality of equipm ent Consistent product quality Ablility to handle technical challenges Availability of equipm ent & crew s Track record/ Past favorable experience T k d/ P t f bl i Responsive to needs Availability of high horsepow er cem enting equipm ent Price com petitiveness Overall technical support & service Com m itm ent to HSE policies Local Lab services Modeling softw are Differentiating technology

-2% -2% 0% -3% -2% 1% -1% 1% 4% -1% -3% 1% -6% -3%


-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

57RESPONDENTS
Welling & Company

BJ SERVICES vs. COMPETITORS


-CEMENTING SERVICESCEMENTING SERVICES ________________________________________________________________________
KEY SELECTION FACTORS
(IN ORDER OF IMPORTANCE)

EASTERNHEMISPHERESAMPLE

Reliability and quality of equipm ent Consistent product quality Highly trained & capable field personnel Track record/ Past favorable experience Availability of equipm ent & crew s Overall technical support & service O ll t h i l t i Ablility to handle technical challenges Availability of high horsepow er cem enting equipm ent Com m itm ent to HSE policies Price com petitiveness Responsive to needs Modeling softw are Differentiating technology Local Lab services

-5% -5% -9% -6% -4% -8% 8% -12% -4% -6% 6% 3% -4% -10% -10% -4%
-15% -10% -5% 0% 5% 10% 15% 20%

-20%

+/ SCORESDERIVEDFROMSUPPLIERPERFORMANCERATINGS FORMULA=(SUPPLIERRATINGMINUSAVERAGERATINGGIVENTOALLSUPPLIERS) DIVIDEDBYAVERAGERATINGGIVENTOALLSUPPLIERS

54RESPONDENTS
Welling & Company

NET PROMOTER SCORE


-CEMENTING SERVICESCEMENTING SERVICES __________________________________________________
TOTAL SAMPLE

LIKELYTORECOMMEND (010SCALE) PROMOTERS (9or10) DETRACTORS ( (6orLower) 10% 16% 26% PASSIVES (7or8) 41% 43% 47%

49%

HALLIBURTON (169)

39%

SCHLUMBERGER (139)

25%

41%

BJ SERVICES (104)

1%

27%

0%

20%

40%

60%

NetPromoterScore(NPS)=%ofPromotersminus%ofDetractors (NumberofRespondentsinParentheses)

123
Welling & Company

NET PROMOTER SCORE


-CEMENTING SERVICESCEMENTING SERVICES __________________________________________________
TOTAL LAND

LIKELYTORECOMMEND (010SCALE) PROMOTERS (9or10) DETRACTORS ( (6orLower) 11% 18% 34% PASSIVES (7or8) 41% 48% 38%

HALLIBURTON (88)

37%

48%

SCHLUMBERGER (62)

16%

34%

BJ SERVICES (53)

-6%

28%

-20%

0%

20%

40%

60%

NetPromoterScore(NPS)=%ofPromotersminus%ofDetractors (NumberofRespondentsinParentheses)

124
Welling & Company

NET PROMOTER SCORE


-CEMENTING SERVICESCEMENTING SERVICES __________________________________________________
TOTAL OFFSHORE

LIKELYTORECOMMEND (010SCALE) PROMOTERS (9or10) DETRACTORS ( (6orLower) 9% 13% 18% PASSIVES (7or8) 42% 41% 56%

HALLIBURTON (80)

40%

49%

SCHLUMBERGER (76)

33%

46%

BJ SERVICES (51)

8%

26%

0%

20%

40%

60%

NetPromoterScore(NPS)=%ofPromotersminus%ofDetractors (NumberofRespondentsinParentheses)

125
Welling & Company

NET PROMOTER SCORE


-CEMENTING SERVICESCEMENTING SERVICES __________________________________________________
OFFSHORE-SHELF

LIKELYTORECOMMEND (010SCALE) PROMOTERS (9or10) DETRACTORS ( (6orLower) 5% 13% 11% PASSIVES (7or8) 42% 44% 59%

53%

HALLIBURTON (61)

48%

SCHLUMBERGER (56)

30%

43%

BJ SERVICES (36)

19%

30%

0%

20%

40%

60%

NetPromoterScore(NPS)=%ofPromotersminus%ofDetractors (NumberofRespondentsinParentheses)

126
Welling & Company

NET PROMOTER SCORE


-CEMENTING SERVICESCEMENTING SERVICES __________________________________________________
OFFSHORE-DEEPWATER

LIKELYTORECOMMEND (010SCALE) P PROMOTERS (9or10) D DETRACTORS (6orLower) 21% 15% 34% PASSIVES (7or8) 42% 30% 54%

37%

HALLIBURTON (19)

16%

SCHLUMBERGER (20)

40%

55%

BJ SERVICES (15)

-21%

13%

-40%

-20%

0%

20%

40%

60%

NetPromoterScore(NPS)=%ofPromotersminus%ofDetractors (NumberofRespondentsinParentheses)

127
Welling & Company

NET PROMOTER SCORE


-CEMENTING SERVICESCEMENTING SERVICES __________________________________________________
GULF OF MEXICO

LIKELYTORECOMMEND (010SCALE) PROMOTERS (9or10) DETRACTORS (6orLower) 18% 10% 30% PASSIVES (7or8) 37% 40% 40%

45%

HALLIBURTON (11)

27%

SCHLUMBERGER (10)

40%

50%

BJ SERVICES (10)

0%

30%

0%

20%

40%

60%

NetPromoterScore(NPS)=%ofPromotersminus%ofDetractors (NumberofRespondentsinParentheses)

128
Welling & Company

NET PROMOTER SCORE


-CEMENTING SERVICESCEMENTING SERVICES __________________________________________________
US LAND

LIKELYTORECOMMEND (010SCALE) PROMOTERS (9or10) DETRACTORS (6orLower) 13% 22% 35% PASSIVES (7or8) 32% 42% 38%

55%

HALLIBURTON (61)

42%

36%

SCHLUMBERGER (38)

14%

BJ SERVICES (34)

-8%

27%

-20%

0%

20%

40%

60%

NetPromoterScore(NPS)=%ofPromotersminus%ofDetractors (NumberofRespondentsinParentheses)

129
Welling & Company

NET PROMOTER SCORE


-CEMENTING SERVICESCEMENTING SERVICES __________________________________________________
INTERNATIONAL

LIKELYTORECOMMEND (010SCALE) PROMOTERS (9or10) DETRACTORS ( (6orLower) 9% 16% 24% PASSIVES (7or8) 45% 43% 57%

46%

HALLIBURTON (104)

37%

41%

SCHLUMBERGER (99)

25%

BJ SERVICES (58)

-5%

19%

-20%

0%

20%

40%

60%

NetPromoterScore(NPS)=%ofPromotersminus%ofDetractors (NumberofRespondentsinParentheses)

130
Welling & Company

NET PROMOTER SCORE


-CEMENTING SERVICESCEMENTING SERVICES __________________________________________________
WESTERN HEMISPHERE

LIKELYTORECOMMEND (010SCALE) PROMOTERS (9or10) DETRACTORS (6orLower) 12% 18% 28% PASSIVES (7or8) 33% 37% 36%

55%

HALLIBURTON (83)

43%

SCHLUMBERGER (58)

27%

45%

BJ SERVICES (57)

8%

36%

0%

20%

40%

60%

NetPromoterScore(NPS)=%ofPromotersminus%ofDetractors (NumberofRespondentsinParentheses)

131
Welling & Company

NET PROMOTER SCORE


-CEMENTING SERVICESCEMENTING SERVICES __________________________________________________
EASTERN HEMISPHERE

LIKELYTORECOMMEND (010SCALE) PROMOTERS (9or10) DETRACTORS ( (6orLower) 9% 17% 26% PASSIVES (7or8) 47% 43% 58%

44%

HALLIBURTON (99)

35%

SCHLUMBERGER (95)

23%

40%

BJ SERVICES (54)

-10%
0% 20% 40% 60%

16%

-20%

NetPromoterScore(NPS)=%ofPromotersminus%ofDetractors (NumberofRespondentsinParentheses)

132
Welling & Company

CEMENTING SERVICES
Stated Importance Weights vs. Correlation to Likely to Recommend

MATRIXQUADRANT MATRIX QUADRANT


Baseline Requirements
(High Stated - Low Correlation)
These are essentially entry tickets to the market. Competent performance is expected. Gaps in baseline requirements are know n to cause sw itching. Closing g p in baseline p q g g gaps performance factors takes first priority. Some competitors choose to differentiate on baseline requirements.

ATTRIBUTE
Availability of equipment & crews (4) Commitment to HSE (5) Price Competitiveness (9) Reliability and quality of equipment (1) g y t a ed capab e e d personnel (2) Highly trained & capable field pe so e ( ) Consistent product quality (3) Track record/ Past favorable experience (6) pp ( ) Overall technical support & service (7) Ablility to handle technical challenges (8)

Conscious Differentiators
(High Stated - High Correlation)
Factors in this area actively drive supplier selection decisions. Winning on factors in this category can be a pow er force for profitability, grow th and customer retention. Closing gaps in conscious differentiators takes second priority.

Latent Differentiators
(Low Stated - High Correlation)
Customers dont say these factors are important but they correlate highly to a don t dependant variable that assesses overall satisfaction w ith a supplier (in this study likely to recommend is the dependent variable). Latent differentiators represent opportunities to make a pull-ahead move.

Responsive to needs (10) Local Lab services (11) Modeling software (12) Differentiating technology (13) Availability of high horsepower cementing equipment (14)
(STATED IMPORTANCE RANKING IN PARENTHESES)

Low Impact
(Low Stated - Low Correlation)
Low impact items are areas w here performance at parity w ith competitors is sufficient.

CORRELATION OF SELECTION CRITERIA WITH LIKELIHOOD TO RECOMMEND


-CEMENTING SERVICES CEMENTING SERVICES-

______________________________________________________________
Ablility to handle technical challenges (8) Consistent product quality (3) Highly trained & capable field personnel (2) Overall technical support & service (7) Responsive to needs (10) Reliability and quality of equipment (1) Track record/ Past favorable experience (6) Local Lab services (11) Differentiating technology (13) Availability of high horsepower cementing equipment (14) Availability of equipment & crews (4) Modeling software (12) Commitment to HSE policies (5) Price competitiveness (9)

61.50% 60.64% 57.85% 57.31% 57 31% 56.52% 56.44% 54.84% 54 84% 51.02% 46.81% 41.90% 41 90% 41.76% 41.00% 31.25% 31 25% 26.70%

0%

20%

40%

60%

80%

134
1.0=HIGHESTCORRELATIONTOLIKELYTORECOMMEND(STATEDIMPORTANCEINPARENTHESE)

Welling & Company

COMPETITIVE PERFORMANCE vs DIFFERENTIATION FACTORS


CEMENTING SERVICES ________________________________________________________________________
SelectedCompany'sPerformacevsCompetitors
HALLIBURTON SCHLUMBERGER BJSERVICES BJ SERVICES

ATTRIBUTESCEMENTINGSERVICES
BaselineRequirement Availabilityofequipment&crews(4) CommitmenttoHSE(5) PriceCompetitiveness(9) ConsciousDifferentiator Reliabilityandqualityofequipment(1) Highlytrained&capablefieldpersonnel(2) Hi hl i d& bl fi ld l (2) Consistentproductquality(3) Trackrecord/Pastfavorableexperience(6) Overalltechnicalsupport&service(7) Overall technical support & service (7) Ablilitytohandletechnicalchallenges(8) LatentDifferentiator Responsivetoneeds(10) Responsive to needs (10) LocalLabservices(11) LowImpact g ( ) Modelingsoftware(12) Differentiatingtechnology(13) Highhorsepowercementingequipment(14)

3 0 1 3 4 2 2 3 2 2 2 4 3 1

1 4 4 1 2 1 1 2 5 1 1 4 4 1

4 4 3 5 6 6 4 3 5 5 8 4 4 2 8 7 2

135

WEIGHTING OF PRICE vs NON-PRICE FACTORS IN FINAL DECISION


-CEMENTING SERVICESWHEN SELECTING A SUPPLIER FOR CEMENTING SERVICES, WHAT PERCENT OF YOUR PURCHASE DECISION IS BASED ON THE PRICE vs NON PRICE FACTORS? NON-PRICE FACTORS?

PRICE
TOTAL SAMPLE LAND OFFSHORE SHELF OFFSHORE DEEPWATER MAJORS LARGE INDEPENDENTS MED/ SMALL INDEPENDENTS NOCS US LAND GoM CANADA LATIN AMERICA NORTH SEA/ EUROPE WEST AFRICA MIDDLE EAST/ N. AFRICA ASIA PACIFIC

NON-PRICE FACTORS

56% 57% 54% 54% 54% 54% 58% 60% 56% 59% 62% 51% 55% % 53% 62% 59%
0% 20% 40% 60%

44% 43% 46% 46% 46% 46% 42% 40% 44% 41% 38% 49% 45% % 47% 38% 41%
80% 100%

136
PERCENT OF TOTAL SAMPLE

Welling & Company

USE OF MASTER SERVICE AGREEMENT OR MULTI-WELL CONTRACTS FOR CEMENTING SERVICES

SHARE OF CEMENTING JOBS CALLED OUT AS NEEDED 15%

SHARE OF CEMENTING JOBS EXECUTED UNDER MASTER SERVICE AGREEMENT OR MULTI-WELL CONTRACT 85%

IF CEMENTING WORK IS EVER AWARDED OUTSIDE OF A PREFERRED VENDOR ARRANGEMENT WHAT IS THE ARRANGEMENT, PRIMARY DRIVER FOR UTILIZING ANOTHER SUPPLIER?

AVAILABILITY = 58%% BETTER TECHNOLOGY = 39% PRICE = 6% ALL OTHER = 14%

137
PERCENT OF CEMENTING JOBS

Welling & Company

VENDOR VALUE MAP


-CEMENTING SERVICES______________________________________________________
RELATIVEPERFORMANCE

TOTAL SAMPLE
86

InferiorCompetitive Performance
88 90 92 94 96 98 100 102

SuperiorCompetitive Performance
104 106 108 110 112 114

HigherPrice/PoorerPerformanceHigherPrice/BetterPerformance
86 88 90 92 94 96 98 100

HigherPric ced

PremiumOffering Premium Offering

R RELATIVEPRICING

BuyingDecision
SCHLUMBERGER

(NPS +25)

Basedonprice=56% Nonpricefactors=44%
*Slope = Calculated as % of buying p y g decision based on price (Lower angle=More price sensitive)

BJ SERVICES (NPS
102 104 106 108 110 112

+1)

LowerPrice ed

HALLIBURTON

(NPS +39)

EconomyOffering

114

138
LowerPrice/PoorerPerformanceLowerPrice/BetterPerformance

Welling & Company

VENDOR VALUE MAP


-CEMENTING SERVICES______________________________________________________
RELATIVEPERFORMANCE

TOTAL LAND
86

InferiorCompetitive Performance
88 90 92 94 96 98 100 102

SuperiorCompetitive Performance
104 106 108 110 112 114

HigherPrice/PoorerPerformanceHigherPrice/BetterPerformance
86 88 90 92 94 96 98 100 102 104 106 108 110 112

HigherPric ced

PremiumOffering Premium Offering

R RELATIVEPRICING

BuyingDecision
Basedonprice=57% Nonpricefactors=43%
SCHLUMBERGER BJ SERVICES HALLIBURTON
*Slope = Calculated as % of buying p y g decision based on price (Lower angle=More price sensitive)

EconomyOffering

LowerPrice ed

114

139
LowerPrice/PoorerPerformanceLowerPrice/BetterPerformance

Welling & Company

VENDOR VALUE MAP


-CEMENTING SERVICES______________________________________________________
RELATIVEPERFORMANCE

TOTAL OFFSHORE
86

InferiorCompetitive Performance
88 90 92 94 96 98 100 102

SuperiorCompetitive Performance
104 106 108 110 112 114

HigherPrice/PoorerPerformanceHigherPrice/BetterPerformance
86 88 90 92

HigherPric ced

PremiumOffering Premium Offering

R RELATIVEPRICING

SCHLUMBERGER
94 96 98 100 102 104 106 108 110 112

BuyingDecision
Basedonprice=54% Nonpricefactors=46%
*Slope = Calculated as % of buying p y g decision based on price (Lower angle=More price sensitive)

HALLIBURTON

LowerPrice ed

BJ SERVICES

EconomyOffering

114

140
LowerPrice/PoorerPerformanceLowerPrice/BetterPerformance

Welling & Company

VENDOR VALUE MAP


-CEMENTING SERVICES______________________________________________________
RELATIVEPERFORMANCE

GULF OF MEXICO
76

InferiorCompetitive Performance
80 84 88 92 96 100 104

SuperiorCompetitive Performance
108 112 116 120 124

HigherPrice/PoorerPerformanceHigherPrice/BetterPerformance
76 80 84 88 92 96 100 104

HigherPric ced

PremiumOffering Premium Offering

R RELATIVEPRICING

SCHLUMBERGER HALLIBURTON

BuyingDecision
Basedonprice=59% Nonpricefactors=41%
*Slope = Calculated as % of buying p y g decision based on price (Lower angle=More price sensitive)

LowerPrice ed

108 112 116 120

EconomyOffering

124

BJ SERVICES
LowerPrice/PoorerPerformanceLowerPrice/BetterPerformance

141
Welling & Company

VENDOR VALUE MAP


-CEMENTING SERVICES______________________________________________________
RELATIVEPERFORMANCE

US LAND
86

InferiorCompetitive Performance
88 90 92 94 96 98 100 102

SuperiorCompetitive Performance
104 106 108 110 112 114

HigherPrice/PoorerPerformanceHigherPrice/BetterPerformance
86 88 90 92 94 96 98 100

HigherPric ced

PremiumOffering Premium Offering

R RELATIVEPRICING

BuyingDecision
Basedonprice=56% Nonpricefactors=44%
SCHLUMBERGER
*Slope = Calculated as % of buying p y g decision based on price (Lower angle=More price sensitive)

HALLIBURTON
102 104 106 108 110 112

BJ SERVICES

EconomyOffering

LowerPrice ed

114

142
LowerPrice/PoorerPerformanceLowerPrice/BetterPerformance

Welling & Company

VENDOR VALUE MAP


-CEMENTING SERVICES______________________________________________________
RELATIVEPERFORMANCE

INTERNATIONAL
86

InferiorCompetitive Performance
88 90 92 94 96 98 100 102

SuperiorCompetitive Performance
104 106 108 110 112 114

HigherPrice/PoorerPerformanceHigherPrice/BetterPerformance
86 88 90 92 94 96 98 100 102 104 106 108 110 112

HigherPric ced

PremiumOffering Premium Offering

R RELATIVEPRICING

SCHLUMBERGER

BuyingDecision
Basedonprice=55% Nonpricefactors=45%
*Slope = Calculated as % of buying p y g decision based on price (Lower angle=More price sensitive)

BJ SERVICES

HALLIBURTON

EconomyOffering

LowerPrice ed

114

143
LowerPrice/PoorerPerformanceLowerPrice/BetterPerformance

Welling & Company

CUSTOMER VALUE SCORE


-CEMENTING SERVICES CEMENTING SERVICES________________________________________________________________
TOTAL SAMPLE 120 116 112
2 102.42 4 103.24

LAND

SHELF

DEEPWATER

GoM

US LAND

INTERNATIONAL
117.22

108
101.91

05.20 10

101.35

100.47

101.03

99.25

99.64

99.75

104 100 96 92 88 84

100.50

98.45

98.50

98.90

92.64

94.30

HALLIBURTON

SCHLUMBERGER

9 90.14

9 98.28

CALCULATED SCORE: WEIGHTED NON-PRICE PERFORMANCE SCORES MULTIPLIED BY % OF DECISION BASED ON NON-PRICE FACTORS PLUS PRICE COMPETITIVENESS SCORE MULTIPLIED BY % OF DECISION BASED ON PRICE

98.32

BJ SERVICES
Welling & Company

98.48

COMPANIES PERCEIVED AS GAINING OR LOSING IN THE MARKET


FOR CEMENTING SERVICES

_______________________________________________________________________
LOSING GAINING

HALLIBURTON

-18%

28%

SCHLUMBERGER

-15% 15%

22%

BJ SERVICES

-13%

16%

ALL OTHERS

-12%

7%

-30%
PERCENT OF TOTAL SAMPLE

-20%

-10%

0%

10%

20%

30%

40%

145

Welling & Company

CEMENTING HARDWARE

146

BUNDLING OF CEMENTING HARDWARE PURCHASES


CEMENTING HARDWARE FROM THE SERVICE COMPANY OR SPECIALTY SUPPLIER

BUNDLE PURCHASE WITH CEMENTING SERVICE COMPANY PURCHASE FROM SPECIALTY SUPPLIER

TOTAL SAMPLE

44% 30% 35% 74% 59% 41% 47% 50% 32% 72% 52% 53%
20% 40% 60% 80% 100%
147

LAND

OFFSHORE SHELF OFFSHORE DEEPWATER NORTH AMERICA

INTERNATIONAL

0%
PERCENT OF TOTAL SAMPLE

Welling & Company

PREFERRED SUPPLIER FOR CEMENTING HARDWARE

TOTAL SAMPLE

LAND

OFFSHORE 48%

WEATHERFORD

43% 23% 21% 26% 8% 4% 12% 8% 11%

53%

HALLIBURTON

SCHLUMBERGER

DAVIS LYNCH

4% 1% 3% 6% 6%

BJ SERVICES

ALL OTHER

8% 11% 9%
10%

NA/ DON'T KNOW

9%

0%
PERCENT OF TOTAL SAMPLE

20%

40%

60%

148

Welling & Company

PRIMARY CONSIDERATIONS IN SUPPLIER SELECTION


FOR CEMENTING HARDWARE ____________________________________________________________________

PRICE/ CONTRACT AGREEMENT EQUIPMENT PERFORMANCE

57% 36% 30% 23% 17% 10% 9%

EQUIPMENT QUALITY AVAILABILITY/ DELIVERY PERIOD SPECIALIZED CAPABILITIES TRACK RECORD/ REPUTATION ALL OTHER

0%
PERCENT OF TOTAL SAMPLE

10%

20%

30%

40%

50%

60%

70%
149

Welling & Company

SUPPLIERS STRENGTHS & WEAKNESSES

150

HALLIBURTON STRENGTHS
AREAS WHICH MIGHT DIFFERENTIATE THEM FROM OTHERS _____________________________________________________________

EQUIPMENT QUALITY QUALITY SERVICE/ PERSONNEL CUSTOMER SERVICE/ RESPONSIVENESS TECHNOLOGY AVAILABILITY/ DELIVERY PRICING VARIETY OF PRODUCTS TRACK RECORD/ REPUTATION GLOBAL PRESENCE ALL OTHER DON'T KNOW

41% 15% 13% 11% 8% 6% 5% 5% 3% 10% 13%


10% 20% 30% 40% 50%

0%

151
PERCENT OF SAMPLE FAMILIAR WITH HALLIBURTON

Welling & Company

HALLIBURTON WEAKNESSES
AREAS WHICH MOST NEED IMPROVEMENT

_____________________________________________________________

EQUIPMENT QUALITY/ RELIABILITY PRICING CUSTOMER SERVICE/ RESPONSIVENESS LACK KNOWLEDGEABLE PERSONNEL AVAILABILITY/ DELIVERY LACK INNOVATIVE TECHNOLOGY ALL OTHER

17% 13% 11% 11% 5% 8% 13% 22%


10% 20% 30% 152

DON'T KNOW

0%
PERCENT OF SAMPLE FAMILIAR WITH HALLIBURTON

Welling & Company

SCHLUMBERGER STRENGTHS
AREAS WHICH MIGHT DIFFERENTIATE THEM FROM OTHERS _____________________________________________________________

EQUIPMENT QUALITY TECHNOLOGY QUALITY SERVICE/ PERSONNEL CUSTOMER SERVICE/ RESPONSIVENESS OVERALL CAPABILITIES AVAILABILITY/ DELIVERY PRICING TRACK RECORD/ REPUTATION VARIETY OF PRODUCTS GLOBAL PRESENCE ALL OTHER DON'T KNOW

40% 12% 12% 8% 4% 3% 3% 3% 2% 2% 12% 20%


10% 20% 30% 40% 50%

0%

153
PERCENT OF SAMPLE FAMILIAR WITH SCHLUMBERGER

Welling & Company

SCHLUMBERGER WEAKNESSES
AREAS WHICH MOST NEED IMPROVEMENT

_____________________________________________________________

PRICING CUSTOMER SERVICE/ RESPONSIVENESS LACK KNOWLEDGEABLE PERSONNEL EQUIPMENT QUALITY/ RELIABILITY AVAILABILITY/ DELIVERY LACK INNOVATIVE TECHNOLOGY ALL OTHER

27% 14% 13% 12% 5% 1% 11% 24%


10% 20% 30% 154

DON'T KNOW

0%
PERCENT OF SAMPLE FAMILIAR WITH SCHLUMBERGER

Welling & Company

BJ SERVICES STRENGTHS
AREAS WHICH MIGHT DIFFERENTIATE THEM FROM OTHERS _____________________________________________________________

EQUIPMENT QUALITY QUALITY SERVICE/ PERSONNEL CUSTOMER SERVICE/ RESPONSIVENESS PRICING TECHNOLOGY AVAILABILITY/ DELIVERY VARIETY OF PRODUCTS TRACK RECORD/ REPUTATION ALL OTHER DON'T KNOW

21% 15% 12% 10% 4% 3% 2% 1% 9% 32%


10% 20% 30% 40%

0%

155
PERCENT OF SAMPLE FAMILIAR WITH BJ SERVICES

Welling & Company

BJ SERVICES WEAKNESSES
AREAS WHICH MOST NEED IMPROVEMENT

_____________________________________________________________

EQUIPMENT QUALITY/ RELIABILITY LACK KNOWLEDGEABLE PERSONNEL CUSTOMER SERVICE/ RESPONSIVENESS LACK INNOVATIVE TECHNOLOGY PRICING

19% 9% 8% 7% 6% 5% 11% 35%


10% 20% 30% 40% 156

AVAILABILITY/ DELIVERY

ALL OTHER

DON'T KNOW

0%
PERCENT OF SAMPLE FAMILIAR WITH BJ SERVICES

Welling & Company

LISTOFRESPONDINGCOMPANIES
MAJORS
BP BP BP BP BP BP BP BP CHEVRON CHEVRON CHEVRON CHEVRON(2) CHEVRON CHEVRON CHEVRON CHEVRON CHEVRON CONOCOPHILLIPS CONOCOPHILLIPS CONOCOPHILLIPS(3) CONOCOPHILLIPS(3) CONOCOPHILLIPS(3) CONOCOPHILLIPS CONOCOPHILLIPS CONOCOPHILLIPS CONOCOPHILLIPS ENI ENI ENI ENI(2) ENI ESSO EXXONMOBIL EXXONMOBIL(2) EXXONMOBIL NIGERIAAGIPOILCOMPANY(NAOC)(2) NORSKESHELL OXY OXY OXY OXY(2) OXY SHELLOILCO Angola Canada Egypt Houston,TX Indonesia Colombia Scotland Norway Angola Bakersfield,CA China Houston,TX Indonesia Kuwait Lafayette,LA Thailand Nigeria Algeria Canada China Farmington,NM Houston,TX Midland,TX Anchorage,AK Scotland Nigeria Algeria Egypt India Italy NewOrleans,LA Nigeria Australia Houston,TX Nigeria Nigeria Norway Argentina Bakersfield,CA Houston,TX Oman Tupman,CA Brunei

LISTOFRESPONDINGCOMPANIES
SHELLOILCO(2) SHELLOILCO(3) SHELLOILCO SHELLOILCO SHELLOILCO SHELLOILCO SHELLOILCO SHELLOILCO SHELLOILCO TNKBP TOTAL(2) TOTAL TOTAL(2) TOTAL TOTAL TOTAL TOTAL TOTAL Canada Houston,TX Netherlands NewOrleans,LA NewZealand Egypt Nigeria Denver,CO Scotland Russia France Houston,TX Indonesia Qatar Argentina Norway Scotland Nigeria

LARGEINDEPENDENTS
ANADARKOPETROLEUMCORP APACHECORP APACHECORP APACHECORP APACHECORP BGGROUP BGGROUP BGGROUP BHPBILLITON CENTRICAENERGY CHESAPEAKE CHESAPEAKE(3) CIMAREXENERGY(3) CIMAREXENERGY CIMAREXENERGY CNRL DANAPETROLEUM DEVONENERGYINC DEVONENERGYINC(3) DEVONENERGYINC DEVONENERGYINC ELPASOENERGY(2) ENCANA Indonesia Houston,TX Canada Egypt Scotland Algeria Nigeria Scotland Australia Scotland Muldrow,OK OKlahomaCity,OK Tulsa,OK Midland,TX Taylorsville,MS Scotland Egypt Canada Houston,TX OKlahomaCity,OK NavajoDam,NM Houston,TX Canada

LISTOFRESPONDINGCOMPANIES
ENCANA EOG EOG EOG EOG GDFSUEZE&PUKLTD HESSCORP(3) HUSKYENERGY(2) HUSKYENERGY INPEXCORPORATION MAERSKOIL&GAS MAERSKOIL&GAS MARATHON(5) MARATHON MARATHON MARINERENERGY MURPHYOILCOMPANY NEWFIELDEXPLORATION NEWFIELDEXPLORATION NEXENPETROLEUM NOBLEENERGY NOBLEENERGY OMV OMV(2) PACIFICRUBIALESENERGY PANAMERICAN PERENCO PERENCO PIONEERNATURALRESOURCES PLAINSEXPLORATION&PRODUCTION PLUSPETROL PLUSPETROL PREMIEROIL QUESTAR QUICKSILVERRESOURCES RANGERESOURCES RELIANCEENERGY RELIANCEINDUSTRIESLTD REPSOL REPSOL REPSOL REPSOL REPSOL Dallas,TX Houston,TX Denver,CO Canada China Scotland Houston,TX Canada China Indonesia Denmark Scotland Houston,TX Norway Scotland Houston,TX Houston,TX Tulsa,OK Denver,CO Scotland Denver,CO Houston,TX Austria Romania Colombia Argentina Colombia UK Irving,TX Bakersfield,CA Argentina Peru Vietnam OKlahomaCity,OK FortWorth,TX Cannonsburg,PA Midland,TX India Madrid Argentina Brazil Peru Venezuela

LISTOFRESPONDINGCOMPANIES
RWEDEAUK SANTOS TALISMANENERGY TALISMANENERGY TALISMANENERGY TALISMANENERGY TECPETROL TULLOWOILPLC ULTRAPETROLEUM(2) ULTRAPETROLEUM VICOINDONESIA VICOINDONESIA WINTERSHALL WINTERSHALL WOODSIDEENERGY XTOENERGY XTOENERGY XTOENERGY London Australia Canada SouthAmerica Norway Scotland Argentina London Englewood,CO Tulsa,OK Indonesia Indonesia Netherlands Qatar Australia Midland,TX OKlahomaCity,OK Tyler,TX

MEDIUM/SMALLINDEPENDENTS
3DOIL&GAS ADDAXPETROLEUM ANDESPETROELUM ANTERORESOURCES ARENAOFFSHORE ATPOIL&GAS BAYTEXENERGY BILLBARRETTCORPORATION BPZ BRITANNIAOPERATORLTD CANOPETROLEUMINC CEPSA CHISOLMOIL&GAS CHROMAE&PINC CNXGAS COMSTOCKRESOURCES CONAIRNATURALRESOURCES/PIONEER CONTACTENERGYLTD CONTINENTALRESOURCES(2) CRAWLEYPETROLEUMCORP DAPECO DELTAPETROLEUMCORP DENALIOIL&GAS Winters,TX Nigeria Ecuador Rifla,CO TheWoodlands,TX Houston,TX Canada Denver,CO Peru Scotland FortWorth,TX Spain Buda,TX Houston,TX Cannonsburg,PA Frisco,TX Irving,TX NewZealand Enid,OK OKlahomaCity,OK Oman Denver,CO Houston,TX

LISTOFRESPONDINGCOMPANIES
DENBURYRESOURCES DTEENERGY DUNEENERGY/PETROELUMENGINEERS ENDEAVOURENERGYUKLTD ENQUESTPLC(LUNDINBRITAINLTD) EONRUHRGASUKNORTHSEALTD FAIRFIELDENERGYLTD FASKENOIL&GASLTD FORESTOIL FOXTROTINTERNATIONALLLC GASCOENERGY GAZDEFRANCE GREYMOUTHPETROLEUM HIGHEXPLORATION&PRODUCTIONLLC KAISEREXPLORATIONLTD MIGHTYRIVERPRODUCTION ORIGINENERGYLTD(2) PARTEXOIL&GAS PENNVIRGINIACORP PETROGULFCORP PETROHAWK PETROHAWK SAFERE&POPERATION SCANCONSULT SINCLAIROILANDGASCOMPANY SPIRALENERGY STMARYLAND&EXPLORATION SWNENERGY TRIOCEANENERGY TXMO&GEXPLORATION WILLIAMS WILLIAMS(2) FortWorth,TX FortWorth,TX Lafayette,LA Scotland Scotland UK Scotland Midland,TX Denver,CO IvoryCoast Englewood,CO Netherlands NewZealand OKlahomaCity,OK Canada NewZealand Australia Portugal Cannonsburg,PA Denver,CO Houston,TX Tulsa,OK Yemen Denmark SaltLakeCity,UT Midland,TX Tulsa,OK Houston,TX Egypt Hungary Denver,CO Parachute,CO

NATIONALOILCOMPANIES
ABUDHABIMARINEOPERATINGCOMPANY(ADMAOPCO) ABUDHABINATIONALOILCOMPANY(ADNOC) ADCO(ABUDHABICOMPANYFORONSHOREOILOPERATIONS) ADMA CARIGALIHESSOPERATINGCO CNOOC(3) CNOOC ECOPETROL HAROUGEOILOPERATIONS UAE UAE UAE AbuDhabi Malaysia China Nigeria Colombia Libya

LISTOFRESPONDINGCOMPANIES
HOANGLONGJOC IEOC INA KHALDAPETROLEUM KNOCNIGERIA KOC KUWAITOILCOMPANY(KOCKW) NIGERIAPETROLEUMNATIONALCOMPANY(NNPC) OGDC ONGC PDVSA(3) PEMEX(3) PETROBRAS(2) PETROBRAS PETROBRAS PETROBRAS PETROBRAS(3) PETROBRAS PETROBRAS PETROBRAS PETROCHINACHANGQINGOILFIELD PETROECUADOR PETROELUMDEVELOPMENTOMAN(DPO) PETRONAS(2) PETROTRIN PETZED PTTEP QATARGAS RASGASCOLTD ROSNEFTSEVERNAYANEFT SAUDIARAMCO(2) SAVIA STATOIL STATOIL Vietnam Egypt Croatia Egypt Nigeria Kuwait Kuwait Nigeria Pakistan India Venezuela Mexico Brazil Argentina Colombia Ecuador Houston,TX Peru SouthAmerica Nigeria China Ecuador Oman Malaysia Trinidad Egypt Thailand Qatar Qatar Russia SaudiArabia Peru Nigeria Norway

Global Cementing Services Survey 2010 Questionnaire DRAFT 1.6 (FINAL)

DATE: __________________________________________ INTERVIEWER:_____________________________________


Company Name____________________________________________________________________________ Company Type (Circle): Major 1 Large Indy 2 Medium/ Small Indy 3 National Oil Co. 4

Address _______________________________________________________________________________ City_______________________________________________________ State _______________________ Country ______________________________________ Postal Code/ Zip Code _______________________ Contact Name__________________________________________________ Title __________________________________________________________ Telephone ( )_________________________ E-MAIL: ____________________________________________

BRIEF EXPLANATION: What Id like to discuss with you today is your activity and needs in terms of cementing equipment and services. This survey is sponsored by a group of the leading manufacturers and service companies in this field. They need your input to plan how they should improve in order to provide you with the level and type of equipment and services you require and deserve. The results of the research are presented to the sponsors in aggregate format and your anonymity is assured. Results of this survey are taken seriously by the management of the sponsoring companies, so this is your chance to let your wishes and attitudes be known and personally help drive the development of new technology, new products and new services. A. What is your involvement in the selection process for suppliers providing cementing services? PRIMARY OR FINAL DECISION MAKER 1 PART OF DECISION/ EVALUATION TEAM 2 ( If NOT involved in process, who should I get in contact with? __________________________________ ) B. How long have you been in a role that deals with cementing issues? ____________ Yrs.

C. Are your activities primarily focused on land, offshore shelf or offshore deepwater? (Select only 1 category to reference all following responses)
LAND 1 OFFSHORE SHELF 2 OFFSHORE DEEPWATER ( > 1,500 Ft/ 500 Meters) 3

1. Generally speaking, where do you feel current cementing technology falls short? In other words, where would you encourage cementing equipment, service or product providers to invest R&D resources? _______________________________________________________________________________________________ _______________________________________________________________________________________________

2. Now Id like to mention a series of cementing technologies and market applications to capture your rating on the importance for development of new technology or applications. That is, on a scale of 1 to 10, what do suppliers and contractors most need to devote their R&D efforts toward in order to meet future cementing needs, compared with current technology in this field? (10 indicates there is an extremely high or critical need for new or improved technology in that area. 1 indicates current technology will serve future needs just fine.) (IF RATED 9 OR 10 - Specifically, what improvement or development is needed?)

Page 1

The first section deals with specific drilling & completion environments How great is the need for improvements in
110NEED
DEEPWATERCEMENTING HIGHPRESSURE/HIGHTEMPERATURE ENVIRONMENTS(>15,000PSI/>350F/176C) HORIZONTALWELLS EXTENDEDREACHWELLS(>5,000FOOT STEPOUT) SHALECEMENTING COALBEDMETHANECEMENTING MANAGEDPRESSUREORUNDERBALANCED WELLS GEOTHERMALCEMENTING

(IFRATED9or10)SPECIFICALLY,WHATISNEEDED?

The next section deals with cementing equipment and services How great is the need for improvements in
110NEED
HIGHHORSEPOWERCEMENTINGUNITS CASINGEQUIPMENT CEMENTINGHEADTECHNOLOGY WELLCLEANOUT/SPACERORDISPLACEMENT TECHNOLOGY SELFHEALING/SWELLABLECEMENT INCREASEDPUMPRATES CONSISTENTPRODUCTPERFORMANCEFROM REGIONTOREGION CORROSIVERESISTANTCEMENT(CO2,H2S) SPECIALTYADDITIVES

(IFRATED9or10)SPECIFICALLY,WHATISNEEDED?

3.A What is your approximate annual expenditures for cementing services (US$)? _______________________ 3.B Do you expect your cementing expenditures to increase, decrease or stay about the same over the next 2 years (2010/11)? (If Increase or Decrease) By what percent? Expect increase 1 Expect decline 2 No change/ Steady 3

(If Increase, by what percent will it grow per year? _________% (If Decline, by what percent will it decline per year? _________% NA/ Dont know X
Page 2

4. A. How many oil wells do you anticipate drilling in 2010 Onshore? Offshore Shelf? Offshore Deepwater (>1,500 feet) How many gas wells do you anticipate drilling in 2010 Onshore? Shelf? Deepwater How many injection and/or disposal wells do you anticipate drilling in 2010 Onshore? Shelf? Deepwater How many wells will be plugged and abandoned in 2010 Onshore? Shelf? Deepwater? 4.B. How many oil, gas, injection/disposal and P&A wells do you anticipate in 2011 Onshore? Shelf? Deepwater A. 2010 Shelf Deepwater B. 2011 Shelf Deepwater

Land Number of OIL Wells Number of GAS Wells Number of INJECTION/DISPOSAL Wells Number of Plug & Abandon Wells

Land

5. A. About what percent of your cementing expenditures are for primary cementing, what percent are for remedial cementing or squeeze jobs and what percent are for plug & abandonment wells (P&A)? PRIMARY - ________ % REMEDIAL - _________% PLUG/ABANDON - ________%

5.B (If ANY REMEDIAL/ SQUEEZE JOBS) What percent of your remedial or squeeze jobs are used for the following reasons? 1. Sealing off perforations, 2. Sealing casing leaks, 3. Liner top squeeze jobs and/or 4. Shoe squeeze jobs? 5.C. (For each used, ASK) What is your preferred cementing technique for this type of job? Is it High pressure, Low pressure, Braden head, Under packer or Block squeeze ?
PREFERREDTECHNIQUE LOW BRADEN UNDER BLOCK PRESSURE HEAD PACKER SQUEEZE 2 3 4 5 2 3 4 5 2 3 4 5 2 3 4 5

REASON/NEED
SEALPERFORATIONS SEALCASINGLEAK LINERTOPSQUEEZE SHOESQUEEZE

%OFJOBS % % % %

HIGH PRESSURE 1 1 1 1

NA/DK X X X X

6.A What is the maximum bottom hole pressure you will likely encounter over the next 2 years? 6.B What will be the typical or average pressure?
EXPECTEDMAXIMUMPRESSURE TYPICALORAVERAGEPRESSURE PSI PSI DK DK

6.C (If ANY Maximum expected pressure is 15,000 psi or greater) How many wells do you plan to drill in 2010/2011 with expected pressure greater than 15,000 psi? _______________ NA/DK - X 6.D (If Maximum expected pressure is 15,000 psi or greater) What key technology gaps, if any, exist that need to be addressed in these higher pressure environments to meet your cementing requirements? __________________________________________________________________________________________________ __________________________________________________________________________________________________

Page 3

7.A What is the maximum bottom hole static temperature you will likely encounter over the next 2 years?

7.B What will be the typical or average temperature? (Indicate F or C)


EXPECTEDMAXIMUMTEMPERATURE TYPICALORAVERAGETEMPERATURE ForC ForC

DK DK

7.C (If Maximum expected temperature is 350 degrees F (175 C) or greater) How many wells do you plan to drill in

2010/2011 with expected temperature greater than 350 degrees F? _______________ NA/DK - X

7.D (If Maximum expected temperature is 350 degrees F (175 C) or greater) What key technology gaps, if any, exist

that need to be addressed in these higher temperature environments to meet your cementing requirements? __________________________________________________________________________________________________ __________________________________________________________________________________________________

8.A What is the maximum TVD or True Vertical Depth you will likely encounter over the next 2 years? 8.B What is the maximum Measured Depth you will likely encounter over the next 2 years? (In Feet) Note to interviewer: One Meter = 3.28 feet
EXPECTEDMAXIMUMTVD EXPECTEDMAXIMUMMEASUREDDEPTH Feet Feet DK DK

9. What percent of the wells you anticipate drilling over the next 2 years will fall into the following deviation ranges? B. (If Any wells over 60 degrees deviation) What percent of your high deviation wells are horizontal? What percent could be classified as extended reach? What percent are J-type? C.(For each type used) What percent of these wells have lateral step-outs 1000-3000 feet? Step-outs 3000-6000 feet? Step-outs over 6000 feet? % Deviated 0-30 Degrees % Deviated between 30-60 Degrees % Deviated more than 60 Degrees (If any more than 60 degrees ask following) % Horizontal % Extended Reach % J-Type

% 1000-3000 Ft % % %

% 3000-6000 Ft % % %

% OVER 6000 Ft % % %

9.D (If ANY Deviated more than 60 Degrees) What are the key issues or problems you are experiencing with cementing your horizontal well sections? ________________________________________________________________________________________________ ________________________________________________________________________________________________ 10.A .What percent of your wells will use multi-stage cementing? B. (IF ANY) What will be the typical number of stages per well?
%TOUSE %WELLSTOUSEMULTISTAGECEMENTING

(IfANY)Typicalnumberofstagesperwell

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10.C (If ANY multi-stage cementing) Do you believe, from your experience, that multi-stage tools are problematic? YES 1 (If YES) What is the most common problem encountered? ___________________________________ ___________________________________________________________________________________________ NO 2 NA/DK - X 11. What percent of the wells you plan drilling over the next 2 years will use the following mud types or drilling systems?
OILBASEDMUDS PSEUDOOILBASEDMUDS SYNTHETICMUDS WATERBASEDMUDS FORMATEFLUIDS SALTENRICHED/SATURATEDMUDS AIRDRILLINGSYSTEMS % % % % % % %

NA/DKX NA/DKX NA/DKX NA/DKX NA/DKX NA/DKX NA/DKX

12. In which applications, operational environments or service areas will you need the most assistance from service companies for your future cementing projects? ________________________________________________________________________________________________ ________________________________________________________________________________________________ 13. In general, do you feel prices and fees for each of the following cementing products or services are fairly priced, a little too high or way too high? PRICED FAIRLY 1 1 1 1 1 A LITTLE HIGH 2 2 2 2 2 WAY TOO HIGH 3 3 3 3 3 NA/DK X X X X X

Primary cementing jobs Remedial cementing/ Squeeze jobs P&A cementing Foam cementing Cement bond logging

14. As I read several statements regarding suppliers of cementing services, please tell me if you strongly agree, somewhat agree, somewhat disagree or strongly disagree with each statement.
STRONG SOMEWHAT NEUTRAL AGREE AGREE SOMEWHAT STRONG NA/DK DISAGREE DISAGREE

CEMENTINGISACOMMODITY;ISEENONEEDTOPAYFOR APREMIUMSERVICE IGETTHESAMEQUALITYCEMENTINGJOBFROMALLTHE SUPPLIERSINMYAREA IPREFERTOWORKWITHAREPTHATIHAVEA LONGSTANDINGRELATIONSHIPWITH THEADDITIONALCOSTTOENSURETHEHOLEISPROPERLY PREPAREDANDCONDITIONEDPRIORTOCEMENTINGIS JUSTIFIABLE

5 5 5

4 4 4

3 3 3

2 2 2

1 1 1

X X X

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15. Which company comes to mind first as the leader for each of these applications or well conditions?
OTHER:_________ SCHLUMBERGER BAKER HUGHES HALLIBURTON

BJ SERVICES

HP/HT cementing Deepwater cementing Horizontal cementing Self-Healing/ Swellable cement Low Density/ Ultra-fine cements Corrosive Resistant slurries (CO2, H2S) Cementing tools Cement Software technology Cement Mixing/ Pumping Equipment Foamed Cementing Shale Cementing Geothermal Cementing

1 1 1 1 1 1 1 1 1 1 1 1

2 2 2 2 2 2 2 2 2 2 2 2

3 3 3 3 3 3 3 3 3 3 3 3

4 4 4 4 4 4 4 4 4 4 4 4

5 5 5 5 5 5 5 5 5 5 5 5

16. Which supplier of cementing services do you most closely associate with the following customer service and image factors? (Multiple supplier selection allowed)
Oth: ____________ Oth: ____________
5 5 5 5 5 5 5 5 5 5 5 5 5 5 6 6 6 6 6 6 6 6 6 6 6 6 6 6

Schlumberger

BakerHughes

Halliburton

BJServices

NA/DK

X X X X X X X X X X X X

Workstofindnewsolutionstosavemycompanytime andmoney Bestforintegratedsolutions Lowestcostprovider Costsmore,butworthit Understandstheneedsofmylocalmarket Respondsquicklytomycall Mostreliablecementingequipment Exhibitstechnologyleadership Besttechnicalsupport Bestoverallfieldpersonnel BestHSEprogramsandrecord Mostconsistentproduct Mosttrustednameinthecementingfield Hascementingproductsavailablethatcanmeeta broadrangeofneeds

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1 1 1 1 1 1 1 1 1 1 1 1 1 1

2 2 2 2 2 2 2 2 2 2 2 2 2 2

3 3 3 3 3 3 3 3 3 3 3 3 3 3

4 4 4 4 4 4 4 4 4 4 4 4 4 4

NA/DK
X X X X X X X X X X X X X 7

17. What approach do you tend to take when planning the cementing job for your wells? Do you follow a standardized approach and expect the cement to generally behave comparable to other wells in the area or do you try to customize and tweak the slurries with the goal to incrementally increase efficiencies or receive other benefits? STANDARDIZED APPROACH 1 LIKE TO CUSTOMIZE 2 BOTH 3 NA/ DONT KNOW X

17.B In which situations or applications do you find a customized cementing approach adding value? __________________________________________________________________________________________________ __________________________________________________________________________________________________ 18.A What percent of your wells have isolation challenges such as annular casing pressure or surface casing vent flow? __________________ % NONE- 0 NA/DK - X

18.B Are you willing to spend more on a cementing job leveraging customized, state-of-the-art technology if a clear benefit to overall productivity or ultimate benefits can be demonstrated? YES 1 MAYBE 2 NO 3 NA/ DONT KNOW X 18.C (If Yes/Maybe) What % more would you be willing to invest to a customize cementing solution? NA/DK --X _______ %

19. On what percent of your cementing jobs do you run a cement evaluation/ bond log analysis? Percent of cementing jobs that run evaluation/ bond logs: ____________ % NONE 0 NA/ DK X

20.A What percent of the time do you find primary cementing jobs not meeting performance expectations? Percent of time primary cementing jobs do not meet expectations: _________% NEVER 0 NA/DK -- X

20.B What percent of the time do you find remedial cementing jobs not meeting performance expectations? Percent of time remedial cementing jobs do not meet expectations: _________% NEVER 0 21. What percent of cement jobs do you use computer design simulation to design and evaluate the job? Percent of time computer design simulation is used : _________% NEVER 0 NA/DK X NA/DK X

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CEMENTING SERVICE SUPPLIERS


22. A/B. What suppliers have you used for Cementing Services over the past 2 years and about what percent of your Business, in dollars, went to each supplier ? C. Which supplier was awarded your most recent job? (If only one supplier, circle as most recent supplier) A. Check if Used B. Percent of C. Supplier Awarded Supplier (Past 2 Years) Business Given ($) Most Recent Contract Baker Hughes 1 % 1 BJ Services 2 % 2 Halliburton 3 % 3 Schlumberger 4 % 4 Other: 5 % 5 Other: 6 % 6 NA/Dont Know X % X 22.D Why did you select (Insert Co. used most recently _______________ ) over the others? ________________________________________________________________________________________________ 23. Please tell me how much importance you place on the following factors when evaluating suppliers for Cementing Services. We will also ask you to rate the suppliers that you just mentioned on the same factors. Please use the following 1-10 scales: Importance Scale - 1 = Not important 5 = Average 10= Critically important Performance Scale - 1=Poor 5=Average 10=Excellent When asking each importance question, please begin with When choosing between suppliers, how important is Schlumberger Baker Hughes BJ Services Importance Scale (1-10) Halliburton

Other:

Other:

A B C D E F G H I J K L M N O

Customer Service Highly trained & capable field personnel Responsive to needs Overall technical support & service Products and Services Differentiating technology Reliability and quality of equipment Consistent product quality Modeling software Availability of equipment & crews Availability of high horsepower cementing equipment Local Lab services Company Reputation & Image Commitment to HSE policies Track record/ Past favorable experience Able to handle technical challenges Price competitiveness How likely would you be to recommend each company to a colleague (0-10; 10=Most Likely)
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Other:

COMPARATIVE PARAMETERS

24. When selecting a supplier for Cementing services, what % of your purchase decision is based on the price versus nonprice factors? PRICE _______% vs. NON-PRICE ______% 24.B What percent of your cementing jobs are executed under a master service agreement or multi-well contract with a single, preferred supplier and what percent are called out as needed? MASTER AGREEMENT/ PREFERRED SUPPLIER ________% vs. CALLED OUT AS NEEDED __________% 24.C (IF ANY MASTER AGREEMENTS IN PLACE) If cementing work is ever awarded outside of a preferred vendor arrangement is it due to availability, better technology offered or some other reason? AVAILABILITY 1 TECHNOLOGY 2 OTHER: _______________________________ - 3

25. Assuming price is the same and minimum required specifications are met from multiple suppliers, which single Nonprice factor has the greatest influence in your decision to select one supplier over another? (Note to interviewer: If respondent gives more than one answer, ASK AGAIN Which factor is most important to you? ___________________________________________________________________________________ 26.A. Which supplier performs best on this factor? _________________________ 26.B. Which supplier most needs to improve on this factor? _________________________ 27.A. Which supplier appears to be gaining the most in this market ? __________________________________ 27.B. Which supplier appears to be losing the most in this market ? ____________________________________

CEMENTING HARDWARE

28. Do you typically bundle the purchase of your cementing hardware (eg. Centralizers, floats) with the cementing service company or do you seek out specialty suppliers for these products? BUNDLE PURCHASES 1 USE SPECIALTY SUPPLIER 2 NA/DK -X NA/DK X

29 Who is your preferred supplier for cementing hardware? ___________________________

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30. What are the top 1 or 2 factors you use when selecting a supplier for cementing hardware? (NOTE: Pre-coded responses. Do Not read aloud)
PRICE DELIVERYPERIOD EQUIPMENTPERFORMANCE SPECIALIZEDCAPABILITIES/TECHNOLOGY EQUIPMENTQUALITY LONGTERMCONTRACT/AGREEMENT SUPPLIERREPUTATION/TRUSTEDBRAND OTHER:____________________________________________________ NA/DON'TKNOW 1 2 3 4 5 6 7 8 X

Strengths and Weaknesses


31.A. What do you feel Baker Hughes offers which might differentiate them from others in this field? That is, what are their strongest attributes? _________________________________________________________________________ 31.B. What do you feel are the areas Baker Hughes most needs to improve ontheir weakest areas of operation or performance? _______________________________________________________________________________ 32.A. What do you feel BJ Services offers which might differentiate them from others in this field? That is, what are their strongest attributes? _____________________________________________________________________________________ 32.B. What do you feel are the areas BJ Services most needs to improve ontheir weakest areas of operation or performance? _________________________________________________________________________________________ 33.A. What do you feel Halliburton offers which might differentiate them from others in this field? That is, what are their strongest attributes? ________________________________________________________________________________________ 33.B. What do you feel are the areas Halliburton most needs to improve ontheir weakest areas of operation or performance? _________________________________________________________________________________________ 34.A. What do you feel Schlumberger offers which might differentiate them from others in this field? That is, what are their strongest attributes? _____________________________________________________________________________________ 34.B. What do you feel are the areas Schlumberger most needs to improve ontheir weakest areas of operation or performance? ________________________________________________________________________________________

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35. What geographic areas will you be active in over the next 2-3 years on land and/or offshore?
REGION GulfofMexico USLandBasins GulfCoast(TX/LA/MS/AL) PermianBasin(W.TX/NM) Rockies(NM/CO/WY) WillistonBasin(WY&ND) MidContinent(OK/KS/Etc) BarnettShale(Ft.Worth) Fayetteville(AR) Haynesville/Bossier(LA) MarcellusShales/EasternUSA/Applachia California Alaska InternationalRegions Canada LatinAmericaandMexico NorthSeaUK NorthSeaScandinavia ContinentalEurope WestAfrica NorthAfricaLibya NorthAfricaAlgeria NorthAfricaEgypt MiddleEast India China SEAsia(Malay,Thai,Indo,Phil,Viet,Brunei,etc) Australia/NewZealand PapuaNewGuinea Russia Caspian/CIS Other(Specify_______________________________) 2 3 4 5 6 7 8 9 10 11 12 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 A.Land B.Offshore 1

13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

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