Schlumberger and CNOOC Install World's First Intelligent Completion in a Sophisticated Multilateral Well in South Java Sea.

Business/Energy Editors

HOUSTON--(BUSINESS WIRE)--Nov. 1, 2002

Schlumberger Oilfield Services and China National Offshore Operating Company (CNOOC) recently successfully designed, drilled and completed the world's first TAML (Technology Advancement for Multilaterals) Level 6 intelligent completion in the South Java Sea, Indonesia.

The two-leg multilateral well was drilled and completed from the NE Intan "A" platform in approximately 75 feet of water. The NE Intan A-24 well is the first ever TAML Level 6 multilateral well drilled in Indonesia and the world's first intelligent completion in a multilateral Level 6 well.

"The seamless integration of all products, services and expertise required to engineer, procure and deploy such a complex completion was a key factor in the award of the work to Schlumberger," said Doug Park, Technical Exploitation Manager, CNOOC.

Schlumberger used its state-of-the-art RapidSeal(a) multilateral system to successfully execute the project. Implementation of the intelligent completion included use of a Schlumberger (Reda) electrical submersible pump to optimize oil flow from the wellbore, two downhole flow control valves to minimize water influx and selectively control the flow from either leg, downhole well sensors that provide real-time temperature and pressure readings from both legs of the well, as well as a multiphase flow meter at surface to monitor well performance.

"The Schlumberger RapidSeal system was the ideal solution to CNOOC's platform development plans," said Wayne Mitchell, Engineering Consultant, CNOOC. "The system's versatility and reliability enabled us to place a high-tech completion, in which we had confidence, in the ground."

CNOOC's implementation of multilateral technology also has enabled the company to optimize the use of a limited number of well slots on its existing platforms, in addition to the benefits of improved production, oil recovery and field economics.

"This project is a significant milestone in the fast developing area of multilateral and intelligent completion technology," said Carlos Calad, General Manager, Schlumberger Oilfield Services, Indonesia. "We are pleased to have worked closely with CNOOC in achieving this breakthrough."

The TAML Level 6 is the highest rating given in the TAML multilateral rating system. A Level 6 junction provides both pressure and mechanical integrity to the well and allows selective access to either branch of the multilateral. More information on completions can be found at: http://www.connect.slb.com/index.cfm?id=id8415

Schlumberger Oilfield Services, the largest oilfield services company in the world, is the leading supplier of technology services and solutions to the international petroleum industry. With operations in more than 100 countries, Schlumberger Oilfield Services is one of two business segments of Schlumberger Limited, a global technology services company spanning the oil and gas, telecommunications, utilities, finance, transport and public sector markets. Schlumberger revenue was $14.3 billion in 2001. For more information visit http://www.slb.com.

China National Offshore Operating Company (CNOOC) is the public wing of state-owned China National Offshore Oil Corp., China's third largest oil producer. Its stock is traded in Hong Kong and New York. For more information see: http://www.cnoocltd.com

RapidSeal multilateral system was developed in collaboration with ENI s.p.a - Agip Division

(a) Mark of Schlumberger