Taking Energy Further

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1 OVERVIEW Taking Energy Further Panama, 2014

2 CONTENTS About Us Manufacturing Research & Development Technology Innovation Highlights 2

3 I am committed to making sure each and every one of us goes home safely every day. Doug Baker, Ecolab Chairman & CEO 3

4 LIFE-CYCLE PARTNERS FROM THE RESERVOIR TO THE REFINERY UPSTREAM: Improve recovery, production and profitability MIDSTREAM: Assure product integrity DOWNSTREAM: Increase refinery efficiency, product quality and yields 4

5 OUR COMBINED RESOURCES NALCO CHAMPION 5

6 6

7 Serves the upstream oil and gas production market 2,300+ sales/marketing employees 200+ R&D Global infrastructure We enable our customers to make smarter decisions through onsite problem solving and application of innovative technology. 7

8 PARTNERS FOR THE PRODUCTION CYCLE 8

9 OUR MARKETS OFC 9

10 OUR OFFERINGS 10

11 MANUFACTURING 11

12 SECURITY OF SUPPLY MARKET-LEADING SALES AND SERVICE Broad, reliable, everywhere you need to be supply chain Global raw material procurement, inventory management and on-time delivery People, technology and chemicals delivered when and where you need them 12

13 TECHNOLOGY Innovative chemical products, applications and services 13

14 TECHNOLOGY CENTERS 14

15 WORLD-CLASS TECHNICAL SUPPORT State of the art capabilities & global footprint Critical mass and expertise is unmatched in the industry 13 Nalco Champion dedicated tech centers 15

16 GENERATING MEASURABLE RESULTS

17 NALCO Champion en Latinamerica We deploy our technology and best practices based on centers of excellence and field successful results Telemetry Foamers and Gas treatment EB for Heavy Oil Green product line Fire flooding Chemical Treatment Downhole Chemistry and QAQC Produced Water Management EOR Chem/Fluid compatibility Backflow Shale Gas & Shale Oil Environmentally Certified Backflow Treating Unit Onsite field support Encapsulated Technology EB for X-Heavy Oil Viscosity Reducer Heavy Oil production enhancement Onshore y offshore Diluent optimization Deepwater technology H2S for HPHT & High scaling brines Combo products EB/H2S/SI for umbilical application SurFlo certified product line CaN 17

18 Case History GAS COMPRESSION COLOMBIA CORROSION INHIBITOR AND SOLID DISPERSANT REDUCES COSTLY SYSTEM MAINTENANCE SITUATION: Solid deposition causing vibration and corrosion potential High corrosion environment Costly chemical & mechanical cleaning APPLICATION: EC1010A corrosion inhibitor and solid dispersant RESULTS: Solid deposition in compressor s bundles was reduced. Overhaul frequency reduced by 50%. Corrosion rate mitigated almost to 0 mpy Reduced labor & safety concerns Increased gas compression capacity Savings of ~$420/year/compression train 18

19 Case History EXTERNAL FLUIDS COLOMBIA BACKFLOW MANAGEMENT SYSTEM IMPROVE OPERATIONAL RELIABILITY AND GET SAVINGS SITUATION: 500 Bls (avg.) of backflowed water were sent directly to CPF creating oil, water and integrity impairment Daily upsets in separation facilities were part of operational practices Significant cost associated (pumping, pipeline repairment and extra chemical cost) APPLICATION: External Fluids Management Strategy RESULTS: Oil and water quality increased. Separation process in control and on specification Corrosion, bacteria and scale in control (CPF and flowlines) Reduced well intervention stand by due to increase availability of frac tanks Total savings to customers were US$1,4M per year 19

20 Case History WATER INJECTION ARGENTINA CORROSION INHIBITOR REDUCES WORKOVER COST IN INJECTOR WELLS SITUATION: High workover cost (tubing and intervention) High downhole corrosion rates Water injectivity reduced with direct impact on oil recovery RESULTS: Tubing replacement associated to downhole corrosion reduced Better water injectivity trend was achieved APPLICATION: EC1056A Corrosion inhibitor at continuous injection rate 20

21 Case History SHALE GAS FAYETTEVILLE BIOCIDE APPLICATION LEADS TO EXCEPTIONAL BACTERIAL CONTROL SITUATION: Costly to control bacteria in fracturing water Unacceptable H2S levels in production stream Operating risk due to uncontrolled iron APPLICATION: EC6734A Biocide RESULTS: Resulted in >95% average reduction in iron & bacteria for all treated water 85% of completed wells had ATP readings <100,000 me/ml 75% of wells met pipeline H2S specifications of <4 ppm Eliminated use of additional H2S scavengers Producer able to recycle 99% of produced water Significant cost savings 21

22 Case History OFFSHORE PLATFORM ANGOLA SUCCESSFUL CaN TREATMENT INCREASES EASE OF OPERATIONS SITUATION: CaN deposition in water legs on phase separation vessels CaN plugged plate & frame heat exchangers on topside process facilities Increase in water cuts APPLICATION: 02VZ104 CaN dispersant RESULTS: CaN deposition eliminated when combined with organic acid Elimination of CaN disposal costs & clean-up crews Increase in ease of operations Increase in revenues of ~$40 million/year Operator safety improved due to elimination of forced shutdowns 22

23 Case History PARAFFIN CONTROL ARGENTINA PARAFFIN TREATMENT REDUCES HOTWATER OPERATION SITUATION: Paraffin deposition in tubing, wellhead and flowlines Corrective program with hot water operation. High cost and safety risk Pumping rods reported broken APPLICATION: EC6539A RESULTS: Hot water operation frequency reduced Workover for rods replacements reduced Savings until $12K/well 23

24 QUESTIONS?