Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.The information contained in this document is company confidential and proprietary property of BHGE and its affiliates. It is to be used only for the benefit of BHGE and may not be distributed, transmitted, reproduced, altered or used for any purpose without the express written consent of BHGE.

Effizienzsteigerung in der Erdöl- und Erdgasindustrie durch den Einsatz neuer Technologien

November 22, 2018

Niedersächsische Energietage am 20.-21.11.2018 in Hannover

Prof. Dr.-Ing. Sven Krüger

RECOVERYIMPROVED

WELLSEFFICIENT

PRODUCTIONOPTIMIZED

28,000EMPLOYEES

BHGE Oilfield Services

120+ COUNTRIES IN WHICH WE OPERATE

R.C. Baker Howard Robard Hughes, Sr.

Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.

Global technology and research centers

3

THE WOODLANDS TECHNOLOGY CENTERThe Woodlands, Texas, USA

HOUSTON TECHNOLOGY CENTERHouston, Texas, USA

CENTER FOR TECHNOLOGY AND INNOVATIONHouston, Texas, USA

CELLE TECHNOLOGY CENTER Celle, Lower Saxony, Germany

ARTIFICIAL LIFT RESEARCH AND TECHNOLOGY CENTERClaremore, Oklahoma, USA

DHAHRAN TECHNOLOGY CENTER Dhahran, Eastern Province, KSA

GINN CENTERSugar Land, Texas, USA

OIL & GAS TECHNOLOGY CENTEROklahoma City, Oklahoma, USA

November 22, 2018

Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.

Crude Oil Prices since 1988

Long Beach CA., Shoreline

Drilling (1930’s)

Oil Sands Magazine

Iraq invades Kuwait

Global Financial Crisis

Strong non-OPEC production

Asia driving demand

Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.

Falling Production Cost through use of new Technologies

Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.

New Technology Changes Market Dynamics

Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.

November 22, 2018 7

THE PRODUCTION/INEFFICIENCY GAP

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Offshoredeepwater

Offshore midwater

Offshore shelf

Oil sands

Shale/Tight oil

ConventionalOnshore

Gas Proven (Bcf)

1.5

TR

ILLION

RECOVERY FACTOR

PRODUCTION INEFFICIENCY(NON-PRODUCTIVE TIME AND

INVISIBLE LOST TIME)

PR

OV

EN

RE

SE

RV

ES

Source: Rystad Energy, 2016

TECHNOLOGY AND INDUSTRY PERFORMANCE

•FASTER DRILLING AND COMPLETIONS

•BETTER WELL PERFORMANCE

• LONGER LATERALS

Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.

Rotary Steerable Systems

• High build rate, fully integrated land-based

drilling system

• Increases drilling performance vs.

conventional motor systems

– Eliminates orienting / sliding for steering

– Saves trips to change bottomhole assembly

for different directional profiles

Rotary Steerable Drilling Systems

Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.

The early days of modern drilling..1920s

Long Beach CA., Shoreline

Drilling (1930’s)

Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.

Today

Pier J

Grissom

White

ChaffeeFreeman

Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.

Directional Drilling

Chaffee

White

Freeman

Grissom

Pier J

Belmont

Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.

13

ROTARY STEERABLE CLOSED-LOOP SYSTEM

SELF-ADAPTING DRILL BIT

AUTOMATED ESP MONITORING SYSTEM

Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.

14

WELL PLACEMENTEXACT

HOLE QUALITYSUPERIOR

PERFORMANCEFAST AND RELIABLE

Landed thousands of complex wells flawlessly

Drilled 120+ million feet of quality hole

Established numerous drilling records worldwide

Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.

15

TORQUEMINIMAL

TOOL FAILURESFEWER

DRILLINGFASTER

Generated 35% lower surface torque

Completed entire run with zero NPT

Improved ROP by 27%

PERFORMANCEMORE CONSISTENT

Reduced torque variation 90%

Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.

16

OPEXLOWER

FAILURESFEWER

PERFORMANCEFAST AND RELIABLE

$800K USD monthly savings

Zero ESP shutdowns

25% production increase

Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.

Geothermal Drilling Example Germany

Geothermal Wells in BavariaDuerrnhaar and Kirchstockach KST GT2

AutoTrak Express BHAWell path example of Geothermal Well in Molasse Basin

• Central Well places

• Cost ~ 25 Mill EUR

• High build rate 8 ½“ hole to secure 125 – 140 l/s production rate

• BHGE Drilling Service enables ~80 % increase in drilling efficiency,saving 16 days of KST GT2

• 8 days saved for completion of welldue to high wellbore quality

Copyright 2018 Baker Hughes, a GE company, LLC (“BHGE”). All rights reserved.

75% Cost Reduction of Operating Costs for Geothermal Pumps

Neuentwicklung der Pumpenlagerund Dichtungssysteme:

• Laufzeitverlängerung von durchschnittlich 60 auf 500 Tage

• Kosteneinsparungen von durchschnittlich 75%

Dürrnhaar: 141°C Sauerlach: 146°C Unterhaching: 125°C

Lau

fze

it [

Ta

ge

]

neue Pumpen-

lager

neue Dichtungs-

konfiguration

Aktuelle Laufzeiten (seit 2012)Duerrnhaar 175T

Kirchstockach 499TOberhaching 723T

Sauerlach 600TTraunreut 455T

Unterhaching 260T

Weltrekord bei 146°C!