The Science of Enhanced Oil RecoveryThe Science of Enhanced Oil Recovery

A Nalco & Stepan Joint VentureA Nalco & Stepan Joint Venture

• Tiorco is “The Integrated Oil Recovery Company”combining the strengths of three companies

- Nalco: Extensive personnel, global manufacturing and logistics in oilfield services and BrightWater® EOR technology

- Tiorco: (recently acquired by Nalco) 30 year history with improved oil recovery products, equipment and implementation

- Stepan: Leader in EOR surfactant technology and global manufacturing capabilities

Integrated EOR PlatformIntegrated EOR Platform

• By combining the power and expertise of these companies, TIORCO can now offer:

- An integrated sales and service channel- A “one stop” solution for all EOR needs

Current EOR Process for Operators

WaterTreatment

WaterTreatment

SurfactantSupplier

SurfactantSupplierConsultingConsulting

PolymerSupplierPolymerSupplier

EquipmentEquipment

- Continued development of new EOR offerings

Identify Customer&

Select Field

Identify Customer&

Select Field•Field Geology•Oil Type•Available water, CO2•Polymer, SP, ASP•Existing Equipment•Economic Modeling

•Flood Pattern•Prove Chemicals•IFT / Phase Behav.•Core Floods•Equipment Design•Water Treatment plan•Develop Capital Cost•Refine Economics

•Install Equipment•Train Operators•Contract Services•Purchase Chemical•Manage Chem. Inventory•Monitor Flood

•Provide 24/7 on-site service •Emulsion breaking•Water treatment•Equipment monitoring

•Market Research•Sales Resources•Technical Support•Consulting

TIORCO, LLC Joint Venture

STEPAN

NALCO

Full Suite of EOR Service OfferingsFull Suite of EOR Service Offerings

Develop EOR Strategy

Develop EOR Strategy Design FloodDesign Flood Implement FloodImplement Flood Recover OilRecover Oil

NALCOOilfield Services and BrightWater® EOR

Technology

NALCOOilfield Services and BrightWater® EOR

Technology

Nalco EOR OperationsNalco EOR Operations

• Initially created EOR group to supply polymers and services during the 1980s

• Acquired TIORCO, Inc in 2008

- TIORCO has 30 years of EOR experience

- > 50 million bbls of incremental oil• Commercialized BrightWater® EOR technology in September

2008

- 100% success rate with 23 wells treated since 2001• Nalco has over 100 manufacturing and blending plants located

near major oil & gas producing areas

- Global service network including on-site technical support and services personnel 24/7

- Blending plants in many countries improve local content (Russia, KZ, Angola, Nigeria are several examples)

• BP Prudhoe Bay – Alaska 2005 ( 3 well pattern)- Positive results (500,000 bbls incremental oil at

the end of 2007) • Chevron Minas – Indonesia 2001 (1 well)

- Technical Success (SPE Paper #84897)• Chevron Strathspey – North Sea 2006 (1 well)

- Positive results (data submitted for SPE paper)• Pan American Energy – Argentina 2006 (3 wells)

- Positive results (reduced water production)(SPE Paper # 107923)

• BP Tangri – Pakistan 2006/2007 (3 wells)

BrightWater® Field TrialsBrightWater® Field Trials

Published Results to DatePublished Results to Date

Nalco Services and OperationsNalco Services and Operations

Manufacturing and Blending PlantsCountries of Operations

Nalco – Logistics and SupplyNalco – Logistics and Supply

Sugar LandFreeportCisterna

Tulsa

China

LuandaOnne

Alexandria

Malabo

Escravos

Casper

Carson

Scott

Midland

Attyrau

Abu Dhabi

Bengazi

Cabinda

Calcutta

MecasPort

Harcourt

AberdeenAlmyetevskCu

stom

er

Customer

Customer

Custo

mer

Maracaibo

Rio

Anaco

• Flexible

• Cost Effective

• Bulk Delivery

• Maximize Local Raw Materials

• Local Content

• Reduced Leadtime

Intermediates

BlendingPackaging

Distribution

CustomerDilutionStation

STEPANThe World Leader in EOR Surfactant Technology

STEPANThe World Leader in EOR Surfactant Technology

Stepan’s EOR ExperienceStepan’s EOR Experience

• Involved in improved oil recovery for over 30 years

• PetrostepTM product line discussed extensively in literature

• Supplied over 220 million pounds surfactant to 10 projects globally from 1976 through 1994 – Amoco, Conoco, Shell, Texaco and Daqing

• Change in EOR approaches - Improvements in technology

• Change in feedstocks, chemistries - New and expanded product line

Participating in over a dozen surfactant based projects in the next two years

Participating in over a dozen surfactant based projects in the next two years

Stepan OperationsStepan Operations

R&D Labs, Technology CentersManufacturing Sites

Annual Surfactant Capacity > 2 Billion lbs of surfactantsAnnual Surfactant Capacity > 2 Billion lbs of surfactants

The Integrated Oil Recovery Company The Integrated Oil Recovery Company

Large Suite of Solution OfferingsLarge Suite of Solution Offerings

• Identifying injector to producer connectivity• Total zone isolation and matrix shut-off• Water shut-off and conformance improvement• Maintaining injectivity by stabilizing migrating and swelling clays• Volumetric sweep improvement• Residual oil recovery by

- ASP or SP- Wettability alteration- Foamers for sweep efficiency in gas injection projects

Water Injector Oil ProducerPolymer gel treatments are used to plug thief zones and

sweep more oil

Polymer gel treatments are used to plug thief zones and

sweep more oil

Near Wellbore TreatmentsNear Wellbore Treatments

Polymer gel treatments can be used on both injection and production wells

Water Injector Oil ProducerColloidal dispersion gels and BrightWater® are placed into the thief zone further away

from the wellbore to increase sweep efficiency

Colloidal dispersion gels and BrightWater® are placed into the thief zone further away

from the wellbore to increase sweep efficiency

In-Depth Reservoir TreatmentsIn-Depth Reservoir Treatments

Water Injector Oil ProducerAlkaline surfactant polymer

and surfactant polymer systems mobilize residual oil

Alkaline surfactant polymer and surfactant polymer

systems mobilize residual oil

Reservoir SweepReservoir Sweep

Implementation Services - Pumping UnitsImplementation Services - Pumping Units

Off ShoreOn Shore

Implementation Services – Water Treatment Equipment and ProductsImplementation Services – Water Treatment Equipment and Products

Water SofteningReverse Osmosis

Nalco WaterTreating Products

SummarySummary

• Tiorco JV brings a new concept for chemical EOR that bundles the full-suite of services required to implement EOR projects

• The key components of Tiorco include:- Assessment of best technology for your field- Polymer and surfactant supply - Potential for near-site chemical blending- Full field service and logistics support

Summary - ContinuedSummary - Continued

• Tiorco will streamline your EOR project resulting in reduced project start-up time

• Project success rate will improve significantly by improved implementation, servicing and 24/7 oversight

Questions?