1. Vallourec & Mannesmann Tubes OCTG Division 1 DCB performances of C125 material in various environments API Resource Group on Sour Service Products WI 2318a – Sour Service DCB Testing Westminster, Colorado June 12, 2012 Frédéric LEGAY Cédric LINNE VALLOUREC MANNESMANN OIL & GAS DIVISION

2. Vallourec & Mannesmann Tubes OCTG Division 2 ● Material:  C125 material  Yield Strength: [125ksi – 135ksi]  Hardness: < 34HRC  NACE A suitable for Mild Sour conditions (3% H 2 S, pH 3.5, 85% SMYS)  Various sizes  Casing with OD [7’’ – 14’’]  + associated CS ● Environments:  Full NACE environment: 100% H 2 S / sol. A / pH 2.7  Fit For Purpose environments:  5% NaCl – 0.4% CH 3 COONa  pH (HCl adjustment): 3.5  H 2 S level: 3% / 7% / 10% Introduction

3. Vallourec & Mannesmann Tubes OCTG Division 3 ● Testing protocole:  According testing matrix shown below  Specimens = Chevron design  No fatigue pre-cracking  Temperature = 75 ± 3°F (24 ± 1.7°C)  Duration = 14 days Tests conditions

4. Vallourec & Mannesmann Tubes OCTG Division 4 ● Tested specimens ● K ISSC (ksi.√in): DCB results More data in full NACE environment Higher scattering in ffp environments Few invalid due to non propagation (most = pinning / non plannar) Lot of dry cracks (mostly in ffp but also in full NACE)

5. Vallourec & Mannesmann Tubes OCTG Division 5 DCB results – 3% H 2 S

6. Vallourec & Mannesmann Tubes OCTG Division 6 DCB results – 7% H 2 S

7. Vallourec & Mannesmann Tubes OCTG Division 7 DCB results – 10% H 2 S

8. Vallourec & Mannesmann Tubes OCTG Division 8 DCB results – 100% H 2 S More used environment K lim measured

9. Vallourec & Mannesmann Tubes OCTG Division 9 K ISSC vs K Iapplied ● Material:  Single references 17A - K lim = 20,6 MPa.√m (18,7 ksi.√in) 13B - K lim = 20,0 MPa.√m (18,2 ksi.√in) 17A 13B

10. Vallourec & Mannesmann Tubes OCTG Division 10 Conclusions ● All results in line with compliance analysis ● Fit For Purpose environments lead to scattered values  Need to use same environment than for NACE A ? ● No need of precracking using Chevron design ● Lot of dry cracks observed (all environments) ● In Full NACE environment:  “low” K ISSC ~ 18-25 ksi.√in when using standard Q125 arm displacement  K lim ~ 19 ksi.√in ● More data needed to determine K lim in other conditions

11. Vallourec & Mannesmann Tubes OCTG Division 11 Thanks

12. Vallourec & Mannesmann Tubes OCTG Division 12 Annex ● Dry cracks in ffp conditions:  Taken into account in crack length to be in line with compliance analysis ● Standard crack in full NA in full NACE conditions

13. Vallourec & Mannesmann Tubes OCTG Division 13 ● Material:  K ISSC vs K Iapplied with all data tested under 100% H 2 S K lim ~ 21,1 MPa.√m (19,2 ksi.√in) Annex