HIGH STRENGTH, HIGH TOUGHNESS DRILL STEM PRODUCTS

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1 HIGH STRENGTH, HIGH TOUGHNESS DRILL STEM PRODUCTS Proprietary Material Grades HW-95, HW-105, S-135T, Z-140, V-150 and UD-165

2 Drilling Deeper? High High s strength trength d drill rill p pipe ipe e enables nables y you ou tto od drill rill d deeper eeper a and nd s step tep o out ut ffurther. urther. Stepping Out Farther? Reduce Reduce Hook Hook Load Load Reach Reach O Objectives bjectives Higher Higher s strength trength p pipe ipe a allow llow y you ou tto o rreduce educe d drill rill s stem tem w weight eight rreducing educing torque torque and and drag. drag. strength drill pipe more orr ttitanium High High s trength d rill p ipe iis sm ore economical economical tthan han aluminum aluminum o itanium alternatives. alternatives. Reach Objectives Reduce Hook Load Improve Improve Hydraulics Hydraulics R Reduced educed wall wall tthickness hickness o opens pens p pipe ipe II.D.,.D., p providing roviding iimproved mproved h hydraulics. ydraulics. Reduce Reduce Failures FailuImprove res Hydraulics Compared Compared to to A API PI S-135, S-135, o over ver 2 22% 2% stronger stronger w with ith no no lloss oss o off ttoughness. oughness. B Be ec Confi onfid dent entreduce Failures S Steel teel is is a proven proven technology. technology. Over NOV Grant Prideco high strength, high O ver million million ffeet eet N OV G rant P rideco h igh s trength, h igh ttoughness oughness drill sold. drill pipe pipe s old. Be Confident

3 Choosing NOV Grant Prideco high strength drill pipe designed with optimized wall thickness and larger ID s allows for hydraulic improvements and increased strength to weight ratios. Specifically engineered to reduce torque and drag, these products extend the depth and reach and are more economical than exotic materials. Compared to API S-135, high strength steels are over 22% stronger with no loss of toughness. Improved chemistries and tighter control of heat treatment provide the mechanical properties and allow you to reach your objectives. Steel is a proven technology. 2.6 million feet of NOV Grant Prideco high strength, high toughness drill pipe have been sold. With high strength products available from the top drive to the BHA, NOV Grant Prideco inspires confidence in drilling your challenging ultra deep water and ultra ERD wells.

4 Heavy Weight Drill Pipe Applications HW-95 AND HW-105 HIGH STRENGTH HEAVY WEIGHT DRILL PIPE (HWDP) In extended reach drilling, HWDP is often used above the kick off point for buckling stability and to apply weight. Standard (55 ksi) HWDP is not always suitable for these applications because of its reduced mechanical properties. Mechanical Properties Comparison Materials Mechanical Properties Yield Strength Tensile Strength Average (ft-lb)* Single Reading (ft-lb)* Hardness HW-95 Tube HRC Max Tool Joint BHN Weld Line HRC Max HW-105 Tube BHN Min Tool Joint BHN Weld Line HRC Max * Impact requirements are at -4F HW -95 and HW -105 high strength heavy weight drill pipe are proprietary grades offered by NOV Grant Prideco for applications requiring the use of HWDP high in the hole where elevated tensile and torsional strength is required. These grades are perfect for applications such as short radius, horizontal and ERD wells. Additionally, HW-105 meets the most stringent industry standards including DS-1 and NS-1. Standard HWDP

5 S-135T Enhanced Toughness HIGH STRENGTH AND HIGH TOUGHNESS Cycling at continuous high drilling loads leads to increased fatigue rates. Proprietary grade S-135T offered by NOV Grant Prideco provides high strength with high toughness. S-135T drill pipe incorporates a proprietary chemistry and a rigidly controlled quench and temper heat treatment. Providing a minimum average Charpy impact of 59 ft-lbs, S-135T meets or exceeds all of the requirements of API S-135 as well as NS-1, DS-1 specification for critical service, NORSOK, and other rigourous proprietary standards. With significantly higher fracture toughness than API S-135 drill pipe, S-135T will work harder and longer. Mechanical Properties Comparison Grade Yield Maximum Tensile Maximum Temperature Specimen Size Average (ft-lb) Single Reading (ft-lb) S NA F (22 C) Full Size S-135T NA F (-20 C) ¾ Size The normal distribution graph illustrates increased toughness of S-135T compared to API S-135. It is important to note that while both sets of samples are ¾ size, the API S-135 was tested at room temperature (74 F/22 C) where as S-135T was tested at -4 F/-20 C. All samples were from manufactured customer orders and not experimental material lots.

6 extreme Drilling Z-140 HIGH STRENGTH AND HIGH TOUGHNESS WITH SUPERIOR TENSILE STRENGTH Compared to API S-135, NOV Grant Prideco Z-140 grade provides increased tensile strength and increased toughness. Incorporating proprietary chemistry and a rigidly controlled quench and temper heat treatment Z-140 provides an exceptional balance between strength and toughness required for deep, ERD, and deepwater wells. Mechanical Properties Comparison Grade Yield Maximum Tensile Maximum Temperature Specimen Size Average (ft-lb) Single Reading (ft-lb) S NA F (22 C) Full Size Z NA F (-20 C) ¾ Size The normal distribution graph illustrates increased toughness of Z-140 compared to API S-135. It is important to note that while both sets of samples are ¾ size, the API S-135 was tested at room temperature (74 F/22 C) where as Z-140 was tested at -4 F/-20 C. The charpy impact data shown comes directly from manufactured customer orders and not experimental lots.

7 extreme Drilling V-150 THE DRILL PIPE THAT HAS ENABLED DRILLING AT MANY OF TODAY S WORLD CLASS WELLS In comparison to API S-135, NOV Grant Prideco V-150 grade drill pipe provides 11% greater tensile strength while maintaining equivalent impact strength. Toughness values this high allow total confidence when running V-150. NOV Grant Prideco V-150 drill pipe has enabled drilling of today s deepest wells. Mechanical Properties Comparison Grade Yield Maximum Tensile Maximum Temperature Specimen Size Average (ft-lb) Single Reading (ft-lb) S NA F (22 C) Full Size V NA F (-20 C) ¾ Size The normal distribution graph illustrates the impressive toughness of V-150 compared to API S-135. It is important to note that while both sets of samples are ¾ size, the API S-135 was tested at room temperature (74 F/22 C) where as V-150 was tested at -4 F/-20 C. All samples were from manufactured customer orders and not experimental material lots.

8 UltraDeep UD-165 UltraDeep UD-165 As a result of an extensive 2 year research, design, and development program, NOV Grant Prideco is proud to announce the introduction of UltraDeep UD-165. During the design phase, four different chemistries were evaluated. Process parameters and mechanical properties such as hardness, tensile, and impact were optimized. With the alloy finalized, Crack Tip Opening Displacement (CTOD) testing, fatigue testing, slip-testing, full-scale manufacturing test and extensive field trails were conducted to verify performance. 5 inch UD-165 drill pipe has been subjected to a field trial to drill 2 wells to a depth of approximately 16,000 feet. No unusual or unexpected conditions were experienced during the trials. The drill pipe was visually inspected after completing the wells. No unusual or unexpected material conditions were observed and the pipe showed typical signs of normal use. The normal distribution graph illustrates the impressive toughness of UD-165 compared to API S-135. It is important to note that while both sets of samples are ¾ size, the API S-135 was tested at room temperature (74 F/22 C) where as UD-165 was tested at -4 F/-20 C. In addition, the ultimate tensile strength of UD-165 has been tightly controlled and results in a small standard deviation in toughness. The charpy impact data shown comes directly from manufactured customer orders and not experimental lots.

9 The Ultra-High Strength Drill Pipe Material Alternative Mechanical Properties Comparison Grade Yield Maximum Tensile Maximum Temperature Specimen Size Average (ft-lb) Single Reading (ft-lb) S NA F (22 C) Full Size UD NA F (-20 C) Full Size In addition to field trials samples of 5 inch and 5d inch UD-165 were subjected to slip testing. Both samples were pulled against standard slips to above the yield strength without slipping. The results of the CTOD testing and fatigue testing can be seen here. For the fatigue tests a run out condition of 1 million cycles was set and each sample was subjected to progressively higher stresses up to their respective yield strengths. With maximum stresses of ksi for the V-150 and ksi for the UD-165 it can be seen that both alloys displayed excellent fatigue resistance right up to the material yield strength. The fatigue study yielded somewhat surprising result that UD-165 grade was superior under fatigue, being able to withstand markedly higher stress levels up to the yield strength of the material. S-N plot for fatigue testing program comparing UD-165 with V-150 CTOD tests confirmed the excellent fatigue test results. CTOD tests were carried out in three-point bending at 0 C (32 F). The trend of decreasing CTOD with increase in yield strength is expected; however, the nearly equal values for V-150 and UD-165 is highly favorable for UD-165 especially considering the extensive, safe and proven field history of V-150 over the last decade. Crack Tip Opening Displacement Data CTOD 1 (mm) CTOD 2 (mm) Grade Type B (mm) Yield UTS S-135 (NS1) BxB, L-C V-150 BxB, L-C UD-165 BxB, L-C CTOD 3 (mm) CTOD average (mm) CTOD test data for S-135, V-150 and UD-165. B represents the sample thickness. CTOD average (inch)

10 UD-165 Lite-Wate EXTEND DRILLING ENVELOPE WITHOUT INCREASING HOOK LOAD With a strength-to-weight ratio approaching that of aluminum pipe and much more economical than titanium pipe, high strength thin wall steel pipe is an attractive alternative for ultra-deep and ultra extended reach wells. Lightweight high-strength drill pipe can extend the drilling envelop for any rig by lowering hook loads, improving torque, drag and hydraulics while maintaining tensile capacity and over pull margins. The result is smaller rigs reaching further at reduced cost. With such high strength to weight ratios, high yield 165 ksi material enables the design of light weight drill strings with reduced wall thickness. These lightweight drill strings provide increased strength to weight ratios while also reducing total hook load. The ability to reduce total hook and deck loads is critical when attempting to extend the reach of existing rigs and infrastructure. UD-165 Lite-Wate also improves hydraulics with a tube ID that is 0.6 inches larger than the aluminum equivalent and 0.25 inches larger than titanium. Performance Comparison Grade S-135 V-150 UD-165 UD-165 Light Weight Aluminum Titanium OD 5d 5d 5d 5d 5d 5d 5d ID Wall Thickness Yield Strength * 120 Tensile Strength (lbf) 844, ,026 1,031, , , , ,421 Joint Weight in Air Cost Compared to S Range Fluid Displacement per foot Weight in 9.5 ppg Mud Joint Strength to Joint Weight in Mud (lbf/lbf) % Improvement over S % 11.11% 22.22% 15.87% 8.99% 46.44% 46.50% Hook Load with 25,000 ft in a Vertical Hole 567, , , , , , ,226 Available Overpull 276, , , , , , ,195 Pressure Loss (psi) * For Aluminum calculations, maximum tensile of 70 ksi assumed This table provides a comparison of various grades steel pipe to some non-steel alternatives. Comparisons are based on a 25,000 foot vertical well with 9.5 ppg mud and 70,000 SYMS for the aluminum pipe.

11 Landing String Applications New UD-165 pipe provides high strength and reduced weight allowing for increased net lifting capacity for landing strings. Lifting capacities of up to 2.5 million pounds (Mlbs) are now available. Ultra-high yield strength pipe body for lifting capacity Thick-walled section resists slip-crushing loads A unique dual-diameter tool joint provides elevator capacity Rugged API rotary-shouldered connections Adaptable to differing rig conditions Can be rotated to drill if necessary Cost savings and safe operations are realized from the faster makeup and use of standard rig equipment and familiar rig-up and operating procedures. SLIP-PROOF LANDING STRINGS Removes slips from the high stress area of the tube Improves fatigue life Prevents slip crushing Allows slips to bite better Prevents washouts Questions? Need assistance? Visit and click on this icon to connect to us 24/7. Your feedback is valued and important to us! UD-165 Landing String Configurations Load Capacity RBW Tensile Strength Slip Crushing Capacity** Configuration (lb) (%) (lbs) (lbs) Tool Joint Configuration 2,513, / Wall V-150 with SlipProof Section 90 2,513,700 2,553,000 6s FH (8n x 3½) 2,446, / Wall UD-165 with SlipProof Section 90 2,446,400 2,470,600 6s FH (8n x 3½) 2,223, / Wall V-150 with SlipProof Section 90 2,224,000 2,223,500 6s FH (8n x 3½) 2,172, / Wall UD-165 with SlipProof Section 90 2,172,300 2,223,500 6s FH (8n x 3½) 1,974, / Wall V-150 with SlipProof Section 90 1,974,800 1,995,000 6s FH (8½ x 4) 1,843, / Wall Z-140 with SlipPoof Section 90 1,843,100 1,867,900 6s FH (8½ x 4¼) 1,506, / Wall V ,224,000 1,506,400 6s FH (8n x 3½) 1,335, / Wall V ,974,800 1,335,700 6s FH (8½ x 4) * Note Load capacity is without any safety factor applied ** Slip Crushing capacity based on the NOV MBH1250 master bushing with 1250 ton LSB and slips. Friction factor of 0.08

12 Downhole Solutions Drilling Solutions Corporate Headquarters 7909 Parkwood Circle Drive Houston, Texas United States Phone: Fax: NOV Grant Prideco 400 North Sam Houston Parkway East Suite 900 Houston, Texas United States Phone: Toll Free: China 18 Floor, Raffl es City Beijing Offi ce Tower, No 1, Dongzhimen South Street Dongcheng District Beijing Peoples Republic of China Phone: Fax: Dubai Dubai Airport Free Zone East Wing 2, 4th Floor Offi ce 2E-404 Dubai UAE Phone: Fax: Mexico Mariano Escobedo # Col. Azures Mexico 11590, D.F. Phone: Fax: Russia 21 Floor, Paveletskaya Plaza Business Center Paveletskaya Tower Building 2/2 Paveletskaya Square Moscow, Russian Federation Phone: Fax: Singapore No 11 Tuas Avenue 7 Singapore Singapore Phone: Fax: Scotland Gateway Drive Gateway Business Park Nigg Aberdeen AB12 3GW Scotland Phone: Fax: Manufacturing FM 1227, Miller Industrial Park #1 P.O. Box 1310 Navasota, Texas United States Phone: Fax: Garber Road Amelia, Louisiana United States Phone: Toll Free: Fax: Engineering and Project Management Solutions Industrial Solutions Lifting and Handling Solutions Production Solutions Supply Chain Solutions Tubular and Corrosion Control Solutions National Oilwell Varco has produced this brochure for general information only, and it is not intended for design purposes. Although every effort has been made to maintain the accuracy and reliability of its contents, National Oilwell Varco in no way assumes responsibility for liability for any loss, damage or injury resulting from the use of information and data herein. All applications for the material described are at the user s risk and are the user s responsibility. All brands listed are trademarks of National Oilwell Varco. Well Service and Completion Solutions One Company... Unlimited Solutions grantprideco@nov.com w. o n r c o 2012 National Oilwell Varco. All rights reserved. D MKT-001 Rev. 01

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