41st Gas-Lift Workshop Houston, Texas, USA June 3 - 7, 2019 Challenges and Design Methodologies in Developing Gas Lift Systems for Deepwater Applications Ganesh Balasubramanian - Project Manager, Schlumberger Eric Lovie - Technical Director, Schlumberger Shao Chong Oh - Product Line Manager, Schlumberger 2019 Gas-Lift Workshop June 3 - 7, 2019

DESIGNING GAS LIFT FOR DEEPWATER PRESENTATION OVERVIEW Engineering challenges in developing gas lift systems as application requirements have evolved Inherent limitations in gas lift mandrel designs Design / Yield Acceptance Criteria Iterative Design Optimization (Achilles’ Heel Shift Technique) Material Selection and Qualification 2019 Gas-Lift Workshop June 3 - 7, 2019

1) CHALLENGES Application Requirements Engineering Requirements From on-shore rigs to Subsea and Deepwater terrains Engineering Requirements Increased Pressure and Temp. ratings Higher metallurgies Increased Production ID size Special features (injection Ports) Bypass slots for cables Barrier technology with dual pockets Design efficiency / reliability Delivery Requirements Shorter lead time (drawing board to rig floor) 2019 Gas-Lift Workshop June 3 - 7, 2019

2) GAS LIFT MANDRELS – REGIONS OF INTEREST ECCENTRIC REGION TO HOLD GAS LIFT VALVE Upper End - Threaded Lower End - Threaded Gas Lift Valve Injected Gas Produced hydrocarbons 2019 Gas-Lift Workshop June 3 - 7, 2019

NON-UNIFORM STRESS DISTRIBUTION PLASTIC YIELDING Regions experiencing high stress under pressure load Flats/Slots Pocket “Web” Discriminator/Guide June 3 - 7, 2019 2019 Gas-Lift Workshop

BURST IN PRESSURE VESSELS Burst – Internal Pressure (P) Thick Cylinder (OD/t ≤ 20) Thick Cylinder (OD/t > 20) June 3 - 7, 2019 2019 Gas-Lift Workshop

COLLAPSE IN PRESSURE VESSELS Collapse – External Pressure (P) Thick Cylinder (OD/t ≤ 20) Thick Cylinder (OD/t > 20) Stress distribution from uniform External Pressure load YIELD STRESS  YIELD PRESSURE June 3 - 7, 2019 2019 Gas-Lift Workshop

UNIFORM VS NON-UNIFORM GEOMETRY Milled Flat Stress distribution changes with external / internal features – Stress Concentration June 3 - 7, 2019 2019 Gas-Lift Workshop

UNDER-ESTIMATION OF STRESSES FROM ASSUMPTIONS Reversal in Stress distribution R1 R2 t Ri At the Milled Flat, assuming an O.D of (R1 – t) = R2 and calculating stresses will be an under-estimation. Calculated safety factor will be higher than actual.

NEED FOR FINITE ELEMENT MODELING Regions experiencing high stress under pressure load STRESS CONCENTRATION PLASTIC YIELDING Flats/Slots Pocket “Web” Discriminator/Guide June 3 - 7, 2019 2019 Gas-Lift Workshop

Design Verification - Old vs New Ways Test multiple prototypes to determine safe operating pressure Longer design lead time Less control over material yield strength Cost and resources Finite Element Modeling Ability to identify regions of interest (high stress/high yield) that hand calculations cannot A good starting point for validation testing Improved computing power June 3 - 7, 2019 2019 Gas-Lift Workshop

3) STRAIN GAUGE TESTING TO DETERMINE DESIGN / YIELD ACCEPTANCE CRITERIA Strain gauge rosettes installed on regions of interest identified from FEA to record strains at test pressure. Based on correlation between recorded strain and results of the Finite Element Model, Design Acceptance Criteria (DAC) for the observed strains was derived. June 3 - 7, 2019 2019 Gas-Lift Workshop

4) GAS LIFT SYSTEMS FOR DEEPWATER STUDY CASE: 5-1/2” GLM RUN IN A 9-5/8” CASING EXISTING TECHNOLOGY INTERNAL PRESSURE (PSI) – 8,000 PSI [80] EXTERNAL PRESSURE (PSI) – 7,000 PSI [80] X 2.5 DEEPWATER APPLICATION INTERNAL PRESSURE (PSI) – 20,000 PSI [XXX] EXTERNAL PRESSURE (PSI) – 18,000 PSI[XXX] June 3 - 7, 2019 2019 Gas-Lift Workshop

GAS LIFT SYSTEMS FOR DEEPWATER Finite Element modeling at various loading conditions and determine safe operating envelope based on already derived DAC. Identify and Analyze critical sections of interest for plastic strains and stress. A-A B-B F-F D-D E-E June 3 - 7, 2019 C-C 2019 Gas-Lift Workshop

ITERATIVE DESIGN IMPROVEMENT DESIGN ITERATION 0 DESIGN ITERATION 1 “Achilles’ Heel” 1 June 3 - 7, 2019 2019 Gas-Lift Workshop

ITERATIVE DESIGN IMPROVEMENT DESIGN ITERATION 1 DESIGN ITERATION 2 “Achilles’ Heel” 2 June 3 - 7, 2019 2019 Gas-Lift Workshop

ITERATIVE DESIGN IMPROVEMENT D-D Identify the “Achilles’ Heel” and apply the pre-determined design acceptance criteria to limit product ratings. Section D-D June 3 - 7, 2019 2019 Gas-Lift Workshop

ITERATIVE DESIGN IMPROVEMENT XX% Improvement in Ratings DESIGN ITERATION 2 DESIGN ITERATION 3 “Achilles’ Heel” 3 XX% Improvement in Ratings June 3 - 7, 2019 2019 Gas-Lift Workshop

ITERATIVE DESIGN IMPROVEMENT Design Iteration 0 X 1.75 1ST DESIGN ITERATION DEEPWATER APPLICATION X 1.40 2ND DESIGN ITERATION DEEPWATER APPLICATION

IDENTIFY DESIGN FAILURE POINT Product integrity failure point was also determined based on the iterative design improvement process in conjunction with yield acceptance criteria. In compliance with Product Performance Limit defined by API 19G1 2nd Edition Section B.1.5 Grade V1H for HPHT GL Plastic Strain X.X % Y.Y % Safety Factor June 3 - 7, 2019 2019 Gas-Lift Workshop

MATERIAL [YIELD STRENGTH IN KSI] 5) Material Selection High Strength Material options for Deepwater to achieve higher pressure ratings MATERIAL [YIELD STRENGTH IN KSI] INCOLOY 925[110] INCONEL 718[120/130] INCOLOY 945/945X[140] June 3 - 7, 2019 2019 Gas-Lift Workshop

Material Selection Higher Product cost with high strength nickel alloys Manufacturing operations and in-house process quality control Machining and Assembly processes Welding and heat treatment processes June 3 - 7, 2019 2019 Gas-Lift Workshop

API 19G1 QUALIFICATION TESTING Pressure Tests Drift Tests Strain Gage Correlation Test Kickover Tool Tests June 3 - 7, 2019 2019 Gas-Lift Workshop

Relation between yield stress and grain size Material Selection Exploring Nano Structured / Nano Grain Materials for building GLMs Potential to achieve yield strengths of 200 to 300 KSI Hall–Petch relationship Relation between yield stress and grain size σy is the yield stress d is the average grain diameter June 3 - 7, 2019 2019 Gas-Lift Workshop

Questions ??? 2019 Gas-Lift Workshop June 3 - 7, 2019

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