Halliburton Corp.

Halliburton Corp.
Millions
1999 2000 2001 2002 2003 2004 2005 2006 Category
Drilling & Formation Evaluation
Directional Drilling $375 $425 $558 $602 $636 $676 $875 $1,060 Directional Drilling Services

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
CONFIDENTIAL: For Internal Use Only.
FEWD $180 $225 $285 $296 $296 $310 $393 $490 Logging-While-Drilling
Mud Logging $40 $45 $51 $50 $48 $52 $72 $90 Mud Logging
Drill Bits $160 $180 $200 $175 $196 $223 $289 $365 Drill Bits
Non-Oilfield Bits $5 $5 $8 $5 $5 $7 $15 $25
Wireline Logging $370 $450 $472 $420 $445 $511 $617 $725 Wireline Logging
TCP / Slickline / UBD $294 $335

Fluids
Drilling & Completion Fluids $715 $800 $1,008 $918 $1,020 $1,115 $1,384 $1,682 Drilling & Completion Fluids
Casing Hardware $30 $40 $49 $48 $49 $57 $71 $93 Casing & Cementation Products
Pressure Pumping - Cementing $549 $837 $1,008 $849 $970 $1,150 $1,383 $1,715 Pressure Pumping Services

Production Optimization
Pressure Pumping - Stimulation $926 $1,233 $1,540 $1,386 $1,547 $1,930 $2,745 $3,510 Pressure Pumping Services
Coiled Tubing Services $120 $135 $159 $125 $151 $185 $264 $340 Coiled Tubing Services
Completion Equipment & Services $632 $728 $893 $830 $891 $1,000 $1,149 $1,217 Completion Equipment & Services
TCP / Slickline / UBD…Adjustment -$294 -$78
Surface Equipment $10 $15 $28 $26 $32 $42 $66 $85 Surface Equipment
Other (formerly Production Testing) $140 $160 $191 $193 $197 $145 $61 $72
Subsea 7 contribution $0 $0 $0 $0 -$13 -$2

Landmark & Other

Landmark $400 $370 $431 $421 $408 $472 $541 $560 Geophysical Equipment & Services
Other $0 $80 $92 $103 $139 $118 $149 $150
Project Management $60 $60 $95 $65 $0 $0 $0 $0

Engineering & Construction

Engineering & Construction $4,084 $2,828 $3,373 $3,269 $6,682 $10,102 $8,148 $6,000
Offshore Construction $950 $825 $1,109 $1,412 $1,346 $1,544 $1,946 $2,100 Offshore Construction Services
Project Management $65 $50 $198 $247 $412 $140 $0 $0

TOTAL $9,811 $9,491 $11,748 $11,440 $15,457 $19,777 $20,168 $20,536

Less than 2%
 All rights reserved.
Fixed Cutters

Copyright 2007 Smith International, Inc.

Security DBS – Halliburton

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
Fixed Cutter Bits

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
CONFIDENTIAL: For Internal Use Only.
 Standard Product Line
 FM2000 (i/r)
 FS2000
 SE3000 (i)
 FM3000
 Impreg
 Rotary Steerable
 New
 Hypercut
 Rotory Steerable
 Cutters:
 ES
 Z3
Fixed Cutter Bits

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
CONFIDENTIAL: For Internal Use Only.
 Common Design Aspects:
 FAST Design
• Force Balancing
• Asymmetrical Blades
• Spiral Blades
• Tracking Cutters

 Proprietary Technology:
• Impact Arrestors
• Full-Release Junk Slots
Fixed Cutter Bits

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
CONFIDENTIAL: For Internal Use Only.
 FM2000 (i/r) series
 Matrix Body
 Gauge Pad Reduces Bit Whirl

 Proprietary Technology:
• F.A.S.T Technology
• Impact Arrestors
• Full-Release Junk Slots (patent)
Fixed Cutter Bits

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
CONFIDENTIAL: For Internal Use Only.
 FS2000 series
 Steel Body
 Higher Face Stand-off

 Proprietary Technology:
• F.A.S.T Technology
• Gauge Hardfacing
• Impact Arrestors
• Full-Release Junk Slots (patent)
• Anti-Balling Coating (patent)
Fixed Cutter Bits

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
CONFIDENTIAL: For Internal Use Only.
 SE3000 series
 Proprietary Technology:
• Impact Arrestors
• Force Balancing
 Molded/Cast WC Body
 Spiraled Blades:
• 360° wall contact
 Low Friction Spiral Gauge Pad

 Features:
• (i) = Synthetic Diamond Impreg

 Application:
• Stability and vibration control
• Directional Drilling
Fixed Cutter Bits

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
CONFIDENTIAL: For Internal Use Only.
 FM3000 series
 Latest Generation
 Application Specific:
• 3-D Modeled for Customer
• DATCI software
 Energy Balancing
 Transition Drilling Model
 Adv. Drilling Slope Model
  FM3000 series
Fixed Cutter Bits

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
  Ti3000 series
Impreg Bits

• High Abrasive
• High Compression
 Formation Applications:

 Strong Retaining Binder

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
  Ti3000 series
Impreg Bits

• Rather than grind

 Micro-shear Cutting

 Renewing Cutting Surface

 Synthetic Diamond Cutters

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
 
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HyperCut

Slow drilling
 Hard Rock Bits

Costly section
Abrasive formation
Inter-bedded formation

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
 HyperSteer
 Rotary Steerable Bits
 Push-the-Bit System

• Shorter Gauge Area

• Laterally Aggressive

• Tailored Side-Cutting Capability

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
FullDrift

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
CONFIDENTIAL: For Internal Use Only.
 Rotary Steerable Bits
 Point-the-Bit System
• Geo-Pilot® RSS
• Uses FullDrift™ Ext. Gauge PDC
• Ext. Gauge Acts as Near-Bit Stab.
PDC Cutters

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
CONFIDENTIAL: For Internal Use Only.
 Elite series (ES) cutters

 Z3 Cutters
 Designed for FM3000
 Hard Rock Drilling Apps
 13.5 X the Abrasion
Resistance vs. ES cutter
 PDC Nomenclature

PROFILE SHAPE

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
 PDC Nomenclature

B
Block Set
P
Parallel Set

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
 All rights reserved.
Roller Cone Bits

Copyright 2007 Smith International, Inc.

Security DBS – Halliburton

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
Roller Cone Bits

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
CONFIDENTIAL: For Internal Use Only.
 Security Product Line
 X series
• XT
• XS
• XN
• XL

 Cutting Elements
 Diamond Tech2000 (patent)
 Claw® Tooth (patent)

 Bearing Systems
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 XT series

Insert or Tooth

Energy Balancing
Larger than 12-1/4”

Conventional Frame
Sealed Roller Bearing
Roller Cone Bits

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
 
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 XS series

Insert or Tooth

Energy Balancing
12-1/4” and Smaller

Conventional Frame
Roller Cone Bits

Sealed Journal Bearing

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
 
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
Tooth
 XN series
All Sizes

Conventional Frame
Non-Sealed Bearing
Roller Cone Bits

Top Hole/Cement Apps

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
Roller Cone Bits

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
CONFIDENTIAL: For Internal Use Only.
 XL series
 9-7/8” thru 12-1/4”
 Insert or Tooth
 Modular Frame
• With/without pads
 Sealed Bushing-Journal
Bearing
 Energy Balancing
 XN
XT, XS, and XL
RC Bearings and Seals

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
Application-Specific

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
CONFIDENTIAL: For Internal Use Only.
 Rotary Steerable Bits
 Point-the-Bit Systems (Geo-Pilot®)
• Uses Extended Gauge
 Push-the-Bit Systems
• Uses Standard Gauge
RC Cutting Elements

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
CONFIDENTIAL: For Internal Use Only.
 Diamond Tech2000 (patent)
 Full-tooth Hardfacing
 50% More Wear Resistant
vs Standard Hardfacing

 The Claw® Tooth (patent)

 More Aggressive Cutting
 Hardfacing in Deeper-set Grooves
 Continually Self-sharpens
 Energy Balance

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
 QuadPack

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
 Roller Cone Nomenclature

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
 All rights reserved.
Recent Patents

Copyright 2007 Smith International, Inc.

Security DBS – Halliburton

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.
 Recent Patents
LINK TO PDF

CONFIDENTIAL: For Internal Use Only.

May not be disclosed, used or reproduced without written permission from Smith International, Inc.