Meeting on the SoW 2022

Gazpromneft Badra B.V. and MdOC

13 September 2021
Badra Project 1
MoM 4 August 2021

Badra Project 2
Agenda

1. Brief history of activities on well P02, current condition and plan how to put the well
back into production
2. Reservoir control analysis in 2021 and WPB 2022
3. Well activities in 2021 and WPB 2022
4. Geological & Simulation models monitoring (WPB 2022)
5. Well Repair in 2021 and WPB 2022
6. Long Term BHP/BHT measurement
7. Production profile 2022
8. MoM and letters
9. Data preparation for MdOC

Badra Project 3
Well P02 history
Date Activities Issues
08.2017 Put into production No issues
09.2017 PLT survey No issues
Tag within Mauddud D perforation interval discovered, depth 4557 m. Possible reasons: asphaltene deposition
09.2018 PLT survey
or lose integrity of casing due to strong earthquake in November 2017
12.2020 PLT survey Tag at 4557 m, asphaltenes on tool
03.2021 Stop flowing due to high water cut
04.2021 PLT survey Goal - estimate water inflow interval, tag at 4557 m, asphaltenes on tool, water inflow is below 4557 m.
11-14.06.2021 Solvent washing Coil tubing 1,75” – 6 runs (4458-4720 m.), no any issues after solvent washing.
26.06.2021 PLT survey Goal - estimate water inflow interval, tool size 1.69”, tag at 4557 m
27.06.2021 RIH LIB Goal – determine the reason of tag at 4557 m. LIB size is 3”. Presence of mechanical damage was discovered
Goal – mill obstacle at 4557 m, check casing till 4711 m (join decision with MdOC staff). Coil tubing with mills
3.13-3.5”. Actual milling intervals 4556-4557, 4559-4601 m. Over pull two times during milling in 4596.8-4601.
Stop milling due to high risk of BHA stuck. Unknown casing condition below 4601 m. The wellbore is damaged
16-24.08.2021 Milling operation
more seriously than expected. Due to enough space for plug installation below Mauddud D and high risk of
BHA stuck the join decision with MdOC staff to install plug within 4567-4596.8 was made (letter SK-7327 dated
22.08.2021 and email from MdOC dated 23.08.2021 at 15.51 pm).
Goal – check condition of casing before water shut off job (RIH plug)
30.08.2021 RIH drift tool
Tools size 3.1” and 2.19”. Tag at 4557 m. The install plug in planned depth 4567-4580 is impossible.

Badra Project 4
 Solvent washing LIB 06.2021 Milling 3.13-3.5” Drift tool
PLT 04.2021
06.2021, 1.75” no tag at 4557 m 08.2021 4556-4596 m 2.19” 08.2021
Well P02 history tag at 4557 m
any issues (250k$) (450 k$) tag at 4557 m

Put into PLT 09.2017 Earthquake* PLT 09.2018 PLT 12.2020

production no issues 11.2017 (7.3) tag at 4557 m tag at 4557 m
08.2017

10000 120

9000
Stop flowing 100
8000 due to high
WC 03.2021

7000

WHP, bar
80
Oil rate, BOPD

6000

5000 60

4000

40
3000

2000 250 t/day

20

1000

0 0
Aug-17 Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21
Qo actual, bopd WHP, bar

* - reason according MdOC’s staff opinion Badra Project 5

Possible reason of casing collapse
• Earthquakes
• Perforation, Casing defect
• Combination of all factors
7.3 magnitude earthquake
3 years ago at 18:18
November 12, 2017 UTC
Location:
Epicenter at 34.905, 45.956 2017
32.2 km from Ḩalabjah (20.2
miles)
Iran Iraq Border
Depth: 19 km 2018 1957
1958

6.3 magnitude earthquake

2 years ago at 16:37
November 25, 2018 UTC
Location: Badra oil
Epicenter at 34.304, 45.74
20.2 km from Sarpol-e
field
Z̄ahāb (12.2 miles)
Iran Iraq Border
Depth: 10 km 2014

Badra Project 6
 P-02 casing condition
Tag at 4557 m during RIH No chance to determine water inflow interval (below 4557 m)
of drift tool 3.1” and 2.19” No chance to determine the presents of crossflow behind casing
(30.08.21) No chance to install plug on planned depth

Plug ID 2.19” (minimum which OilServ has, plug “one way”)

Bailer ID 3”

PLT (April 2021)

Planned depth of plug

installation 4576-4578 m

In case of plug installation between Mauddud C-

Mauddud D (4532-4552 m) production lost will be 95-97%
(250*0,95=-238 t/day)

Proposal from MdOC: Spot cement using CT 1.75” in the interval 4711-4575 m
“+” chance to leave MD in production
“+” contractor confirms possibility to do it
“-” No warranty of success (casing collapse, crossflow behind casing, cement contamination)
“-” Additional cost
Badra Project 7
P-02 next plan
Objective: Perform cement plug through 1.75’’ CT to shut off
the WC (4,750 m to 4,575 m) within 1-3 stages.
Note:
The number of stages will be adjusted based on well condition
and top of cement from previous stage.
There are two main points why the cement plug should be
installed stage by stage:
 Impossibility to calculate the exact cement volume which is
needed to install cement plug due to unknown current internal
volume of casing below mechanical obstruction (4,557 m).
 Prevent cement contamination of Mauddud A-D.
cement plug interval

Brief description of CT cement plug installation plan

1. RIH 1.75” CT and check max reachable depth (Drmax)
2. Kill well by water circulation
3. Calculate internal volume (V) between Drmax and target TOC
(4575 m) and pump ½*V (assumption: current ID is ½ of initial)
4. Circulate water in interval 4237-4570 (goal – prevent
contamination of MA-MD)
5. POOH CT, wait on cement setting (24 hours), RIH CT and
check TOC.
6. If TOC is close to target, POOH and rig down
7. If TOC is deeper that target, perform next stage (repeat step
3-6).

Price estimation – 1st stage - 340 k$; 2nd stage – 127 k$, 3rd stage – 127 k$. The total price:
340 - 594 k$
Action required: approves cement plug installation plan Badra Project 8
Well test activities in 2021 (Reservoir control)
Plan Fact + Forecast (based on minumum case)
2021 2021
Comments
Well/Q Q1 Q2 Q3 Q4 Well/Q Q1 Q2 Q3 Q4
BD-4 Corrosion, BHP BD-4 BHP Corrosion, BHP SoW will be finished till the end of the year
BD-5 Corrosion, BHP BD-5 BHP Corrosion, BHP SoW will be finished till the end of the year
P-08 BHP P-08 BHP SoW will be finished till the end of the year
P-05 PLT+BU48hrs P-05 PLT+BU48hrs SoW done
P-04 PLT+BU48 hrs P-04 PLT+BU48 hrs SoW done
P-13 PLT+BU48hrs Corrosion, BHP P-13 PLT+BU48hrs Corrosion, BHP SoW will be finished till the end of the year
P-09 PLT+BU48 hrs P-09 BHP PLT+BU48 hrs SoW will be finished till the end of the year
P-12 PLT+BU48hrs P-12 BU48hrs SoW revised and done. PLT cancelled due to tag
P-15 BHP P-15 BHP SoW will be finished till the end of the year
P-07 PLT+BU48 hrs P-07 PLT+BU48 hrs SoW done
BD-2 (d) BHP BD-2 (d) BHP SoW done
Р-14 PLT+BU48hrs Р-14 BHP PLT+BU48hrs SoW should be revised, PLT is impossible without solvent washing
Р-10 BHP Р-10 BHP SoW will be finished till the end of the year
Р-19 Corrosion, BHP Р-19 Corrosion, BHP SoW will be finished till the end of the year
Р-02 BHP Р-02 PLT, BHP SoW done
Р-18 PLT+BU24 hrs Р-18 BU48 hrs SoW revised and done. PLT cancelled due to tag
Р-16 BHP Р-16 PLT SoW revised and done.
Р-11 PLT+BU48 hrs Р-11 PLT+BU48 hrs SoW should be revised, PLT is impossible without solvent washing
Р-03 BHP Р-03 BHP SoW done
Р-17 PLT+BU24 hrs Р-17 PLT+BU48 hrs SoW revised and done.
Р-25 BHP Р-25 BHP SoW done
Р-01 BHP Р-01 BHP SoW done

Survey Total Survey done planned Total additional survey

BHP 13 BHP 9 7 16 Done
PLT 9 PLT 6 3 9 Plan Q4
BU 10 BU 7 3 10
Corrosion 4 Corrosion 0 4 4
Total 36 Total 22 17 39

WPB 2021 – 400 k$ Expected – 380 k$ (-20 k$ due to PLT cancelation on 2 wells)

Badra Project 9
 Summary of well test results (2-3 quarters 2021)
Well/Q Date of BHP BHP, bar Date of PLT Inflow profile Date of BU KH and Skin-factor
BD-4 9.2021
BD-5 9.2021
P-08
Reduction inflow from MA+MB since previous No significant changes in KH (650 md*m) and Skin factor (-5.0) since last
P-05
8.2021 210 8.2021 survey in 11.2017 8.2021 survey 09.2015
No significant changes since previous survey in No significant changes in KH (339 md*m) and Skin factor (-5.1) since
P-04
8.2021 187 8.2021 05.2019 8.2021 previous survey in 05.2019
No significant changes since previous survey in No significant changes in KH (171 md*m) and Skin factor (-5.99) since
P-13
8.2021 194 02.2019 previous survey in 02.2019
P-09 4.2021 191
No significant changes in KH (149 md*m) and Skin factor (-5.49) since
P-12
8.2021 183 - 8.2021 previous survey in 07.2018
P-15
No significant changes since previous survey in No significant changes in KH (111 md*m) and Skin factor (-4.6) since
P-07
8.2021 192 8.2021 11.2017 8.2021 previous survey in 08.2019
BD-2 (d) 4.2021 185
Р-14 9.2021
Р-10
Р-19
No significant changes since previous survey in
Р-02
4.2021 230 4.2021 12.2020 -
No significant changes in KH (1860 md*m) and Skin factor (-4.7) since
Р-18
8.2021 227 - 8.2021 previous survey in 12.2019
Decrease infrlow from Mauddud B (40%) since
Р-16
4.2021 262* 4.2021 previous survey in 05.2019 (59%)
Р-11
Р-03 9.2021
No significant changes since previous survey in No significant changes in KH (186 md*m). Skin increase (-1.9) since previous
Р-17
8.2021 178 8.2021 04.2018 8.2021 survey in 07.2018 (-5.2)
Р-25 4.2021 232
Р-01 9.2021 177
* - after PIP

Conclusion: P-05, P-16 and P-17 could be considered for re-stimulation

Badra Project 10
Reservoir control analysis 2022 (plan)
SoW for 2022
Basis for calculation 2022
Well/Q Q1 Q2 Q3 Q4
 No of activities per well – as per reservoir BD-4 BHP Corrosion, BHP, PLT+BU48
needs and FDP: FBHP – 2 opt./year; PLT, BD-5 BHP Corrosion, BHP, BU48
P-08 BHP BHP
BU – 0.5/year; Corrosion monitoring – 4 P-05 BHP BHP
P-04 BHP BHP
wells (P13, BD4, BD5, P19). Water shut off P-13 Corrosion, BHP
(if needed) P-09 BHP PLT+BU48
P-12 BHP BHP
 The cost is as per Contract with OilServ P-15 BHP BHP
P-07 BHP BHP
(expired 10.2021). BD-2 (d) BHP PLT+BU48
Р-14 BHP BHP
 New tender for period 2022-2023 is under Р-10 BHP BHP
Р-19
process, the contract will be signed in 4th Р-02
BHP
BHP
Corrosion, BHP, PLT+BU48
BHP
quarter 2021. Р-18 BHP BHP
Р-16 BU48 BHP
 Budgeted for 2022 – 491 K USD, others – Р-11
Р-03
BHP
BHP
BHP
PLT+BU48
with discount. Р-17 BHP BHP
Р-25 BHP PLT+BU48
Р-01 BHP PLT+BU48
Note: The increase of budget for reservoir BU24
analysis is due to 2 water shut off jobs (46.5 BU48 1 1
PLT+BU24
k$/job). This jobs will be carried out in case of PLT+BU48 3 4
BHP 12 8 8 5
water break through. PLT
Corrosion,
BHP 2 2
Shut-off 1 1
mobilization 1 1 3 2
Sum, kU$ 51.2 46.1 198.1 195.3
Total, kU$ 491

The SoW can be revised due to operational needs

Action required: Approves SoW and budget for 2022 Badra Project 11
Well activities in 2021 (acid stimulation, solvent washing etc.)
WPB 2021
The proposed budget was cut and only
1500 k$ was approved:
• 3 solvent washing - 267.6 k$/operation
• 2 acid stimulation – 348.5 k$/operation
Actual activities in 2021
Urgent works on P02:
• Solvent washing – 251 k$ - done
• CT milling – 450-557 k$ – done
• CT cementing – 340-594 k$ - plan
• CT kick of well – 97.3 k$ - plan
Total: 1138-1499 k$

Due to budget limitation and urgent works on P02 it is proposed to

shift 2 solvent washing and 2 acid stimulation on 2022

Badra Project 12
Candidates for 2022 (acid stimulation, solvent washing etc.)
Date of Last Possible candidate for - proposed candidate for Solvent washing
Well Possible candidates for stimulation
PIP stimulation solvent washing
BD-4 07.2014 >5 years ago overstimulated, PLT+BU needed tag at 4669 m
- other candidate for Solvent washing
BD-5 05.2014 >4 years ago BU needed tool LIH at 4242 m
P-08 12.2014 >7 years ago periodic low pressure no issues - proposed candidate for Stimulation
P-05 06.2015 >4 years ago good candidate PLT+BU needed no issues - other candidate for Stimulation
P-04 07.2015 >3 years ago No need no issues
P-13 09.2015 >4 years ago No need no issues • No re-stimulation operations for last 2 years
P-09 04.2016 >3 years ago Decision after PLT+BU no issues (covid-19 + urgent works on P02)
P-12 04.2016 >4 years ago No need tag at 4589 m
P-15 05.2016 >5 years ago periodic low pressure Done • 9 candidates for re-stimulation
P-07 07.2016 >4 years ago periodic low pressure tag at 4626 m • 7 candidates for solvent washing
BD-2 (d) 01.2017 >4 years ago low skin (-4.0) good reservoir potential no issues
Р-14 01.2017 >4 years ago low pressure tag at 4504 m
Р-10 02.2017 >4 years ago periodic low pressure no issues Basis for calculation
Р-19 03.2017 >4 years ago periodic low pressure no issues  The cost is as per new Contract with OilServ.
Р-02 08.2017 >3 years ago decision after after shut off Done o stimulate 4 wells – 413.1 k$/well
Р-18 08.2017 >2 years ago No need tag at 4667 m o solvent washing for 2 wells – 148.2 k$/well
Р-16 09.2017 >4 years ago Water zone very close no issues
o kick off 2 well (by N2+CT) – 97.2 k$/operation
Р-11 11.2017 >3 years ago low skin (-1.8) good reservoir potential tag at 4577 m
o Set and remove inflatable packer for work-over –
Р-03 03.2018 >3 years ago low pressure no issues
2 wells – 343.5 k$/operation
Р-17 04.2018 >3 years ago Increase skin-factor no issues
o and other less costly operations (perforations,
Р-25 04.2018 >3 years ago low skin (-3.5) good reservoir potential no issues
flowrates in case, if required). – 222.5 k$
Р-01 06.2018 >2 years ago low skin (-4.0) good reservoir potential tag at 4575 m
Budgeted for 2022 – 3053 K USD, 2023+ – with
discount.

The SoW can be revised due to operational needs

Action required: Approves SoW and budget for 2022

Badra Project 13
Geological & Simulation models monitoring (WPB 2022)
 Scope of Work for GPN RC:
o Interpretation of BU and PLT, experts support
o Updating Geo&Dyn models, OFM database, VFP tables + all licenses
o Surface facility model
o Actualization of production profiles for WPB and results integration
 The cost is as per RC person-cost.
 Budgeted for 2022 – 250 K USD

In case of starting side-track drilling operations the additional support will be needed
(programs preparation, design optimization, geological prognosis, well log interpretation
etc.) and the budget should be revised.

Action required: Approves SoW and budget for 2022

Badra Project 14
Well Repair (contingency) – 2021 and WPB 2022
Well Repair – only in case of losing tubing integrity
Downhole equipment, which will be in stock till the end of 2021:
• 1st WO operation – full set
• 2nd WO operation – tubing hanger+tie back system. Need to purchase in 2022 –
completion tools + tubulars

WPB for 2022

• Completion tools + tubulars for 2nd WO – 700 K USD
• 2 workover operations (contingency case):
o Workover services – 1500 K USD*
o Kick off well by N2+CT with clean up equipment – 100 K USD*
* - The cost is as per Market Researches (2020).

Budgeted for 2022 – 3900 K USD (1 set of Downhole equipment in stock), others –
4600.

Action required: Approves SoW and budget for 2022

Badra Project 15
Long Term BHP/BHT measurement

The behavior of some wells is difficult to describe based on well head data (WHP, Q,
WHT) and periodic measurements of BHP, BHT
Examples of wells with unstable flow regime

Proposal: install long term memory gauges (e.g. for 1 - 3 month) in one or two wells and record
BHP and BHT with high frequency

Badra Project 16
Summary of operating procedures and Oiltech LTMG experience
1. Mobilize Slickline Unit and Crew to Well Site.
2. Rig Up and Pressure Test.
3. Program Memory Gauge at surface following Sampling Rate client instruction.
4. Initially a drift run should be carried out to determine BHA is correct to allow passage to the target depth (1 RUN).
5. RIH with Bomb Hanger w/Tandem of memory Gauges (1 RUN).
6. Set Bomb Hanger at target depth and POOH.
7. At surface, Rig down Slickline equipment and demobilize.
8. Memory Gauges will record Pressure and Temperature data until Gauges are recover at surface and Battery disconnect.
9. Memory gauges can record:
 One (1) month with sampling rate at 1 sec.
 Two (2) months with sampling rate at 5 sec.
 Six (6) months with sampling rate at 30 sec.
10. Mobilize Slickline Unit and Crew to Well Site.
11. Rig Up and Pressure Test.
12. RIH and retrieve Bomb Hanger w/Tandem of memory gauges (1 RUN).
13. POOH and at surface, Rig down Slickline equipment and demobilize.
14. Preparation of Data Acquisition Final Report

Badra Project 17
OILSERV SLICKLINE DOWNHOLE EQUIPMENT

Badra Project 18
Cost estimation for mobilization, equipment and personnel

Total price for Badra Slickline Long Term Memory Gauges (1 month) - 43,490 USD
Badra Project 19
Production profile 2022

Badra Project 20
MoM 28.04.2021

Status?
Badra Project 21
MdOC letter №221. Sub. Drilling exploration well BD3

Status?
Badra Project 22
MdOC letter №221. Sub. Meeting on the SoW 2022

Badra Project 23
Data preparation for MdOC

MdOC request: document (2hard and 2soft copy) of activities (PLT, Bup, Lab test,
reports include details of all operation of P02 ... etc) from January to September.

• The official letter has not been received.

• Without official letter the Operator cannot provide data (security reasons)

The Operator propose to provide only soft copies in the future.

Reasons:
• All data is available in soft copies
• Prepare hard copies is time consuming
• No one, except MdOC, request hard copies
• It is not environmentally friendly

Badra Project 24