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Beam Pumping Workshop Houston, Texas October 4 - 7, 2005

Premium MMS-NR (AISI 4138M) Sucker Rods

Alejandro F. Ameglio – Head Technical Services Tenaris Rods Division

Contents

Chemical Analysis

Mechanical Properties

Laboratories Tests

Field experiences

Conclusions Premium MMS-NR (AISI 4138M) Sucker Rods 27 April 2020 2

Chemical Analysis

Element Grade UHS-NR (4330M) Grade MMS-NR (4138M) Grade Plus (1530M)

C (Carbon) Mn (Manganese) S (Sulfur) P (Phosphorus) Si (Silicon) Ni (Nickel) Cr (Cromium) Mo (Molibdenum) 0.30-0.35

0.70-0.95

0.025 Mx.

0.025 Mx.

0.15-0.35

1.65-2.00

0.80-1.10

0.20-0.30

0.38-0.43

1.10-1.40

0.025 Mx.

0.025 Mx.

0.20-0.40

0.30 Mx.

0.60-0.90

0.25-0.35

0.31-0.36

1.4-1.6

0.025 Mx.

0.025 Mx.

0.25-0.40

0.15 Mx 0.2 Mx 0.05 Mx V (Vanadium) Nb 0.035-0.07

0.04-0.07

0.025-0.045

0.10-0.15

Cu (Copper) 0.25 Mx.

0.25 Mx.

0.25 Mx.

As it can be observed, main difference between Grades UHS-NR and MMS-NR is the Nickel (Ni) content.

Premium MMS-NR (AISI 4138M) Sucker Rods 27 April 2020 3

Mechanical Properties

YTS (ksi) UTS (ksi) Thermal process

Grade UHS-NR (4330M)

115 Min.

140-160 Normalized

Grade MMS-NR (4138M)

115 Min.

140-160 Normalized

Grade Plus (1530M)

115 Min.

140-160 Normalized Partially tempered

Mechanical properties are the same for all Grades

27 April 2020 Premium MMS-NR (AISI 4138M) Sucker Rods 4

Lab Tests

A set of lab tests were done to evaluate the performance of the different steels at corrosive environments

CO 2 (“sweet” corrosion)

SSC (Sulfide Stress Cracking) Resistance

Localized attack in H 2 S environments Two steels were tested: AISI 4330M and AISI 4138M 27 April 2020 Premium MMS-NR (AISI 4138M) Sucker Rods 5

Results of Lab tests Lab Tests

At CO 2 environments both steels showed approximately the same performance.

Besides that, AISI 4138M showed a lower corrosion potential compared with the AISI 4330M.

Analyzing the behavior of them at H 2 S environments, both showed a poor performance.

None of them are recommended for sour service. Premium MMS-NR (AISI 4138M) Sucker Rods 27 April 2020 6

Field history Field experience

A major company operates a field at Neuquen Basin (Río Negro Norte Field)

Going trough a natural declination process, wells were changing the ALIFT systems from ESP to Rod Pumping.

Main characteristics of the field are:

• • • •

Depths: 8200-9800 ft (2500-3000 m) Production rates: 300-600 bfpd (50-90 m 3 /d) Water cuts: 10-40% Vertical wells

Load levels make Grade D rods not applicable at the first stage of field development Premium MMS-NR (AISI 4138M) Sucker Rods 27 April 2020 7

Field evolution Field experience

Field evolution until Oct 2001

30 25 20 15 10 5 0 26 -S ep -00 09 -Ja n-0 1 02 -Fe b-0 1 16 -M ar 01 16 -M ay -01 31 -M ay -01 02 -A ug -01 18 -A ug -01 21 -A ug -01 02 -S ep -01 01 -O ct 01 02 -O ct 01 05 -O ct 01 08 -O ct 01

Date Accumulated failures Rod pumped wells Premium MMS-NR (AISI 4138M) Sucker Rods 27 April 2020 8

Field evolution Field experience

Others, 1, 9%

Field evolution until Oct 2001

Pump failures, 3, 27%

27 April 2020

Rod failures, 7, 64% Major problems were related with sucker rod failures

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Field data analysis Field experience

As the failures rates were constantly increasing, it was decided to do a complete analysis of the field data A task force that included production engineers and specialized technicians studied data including:

Fluid analysis

Annulus gas determinations (H 2 S and CO 2 )

Bacterial measurements (SRB-Sulfate Reducers Bacteria)

• •

Failure analysis (all of the rod failures were analyzed)

Operating conditions (spm, loads, etc) Handling & care practices, make-up procedures, etc.

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Field data analysis - Conclusions Field experience

Annulus gas determinations showed a low content of CO 2 (partial pressure < 3psi). From this point of view, there is no a corrosion problem

However, CO 2 in fluid analysis were detected (concentrations between 40-70 mg/lt)

No H2S were detected, neither SRB (Bacteria).

Failure analysis indicated a corrosion-fatigue process as the responsible for the rod breaks.

NACE MR0175 (carbon steels or low alloy steels should not contain more than 1% of Ni)

As a final conclusion, a change in the steels of HS sucker rods were decided (from AISI 4330 to AISI 4138)

Those wells whit loads level less than 130% (SF=0.8) (Grade D) will be installed with Grade D rods Premium MMS-NR (AISI 4138M) Sucker Rods 27 April 2020 11

Field evolution after AISI 4138 rods Field experience

40 35 30

Field evolution (2000-2004) Total failures vs. total of rod pumped wells 37

33

34 29

31 30 25 20 15 10 5 0

5

20 00 0

MMS-NR Installation

20 01 20 02

Year Accumulated failures

20 03

Rod pumped wells Premium MMS-NR (AISI 4138M) Sucker Rods 27 April 2020

20 04

37

18

12

Rod body failures evolution Field Experience

Rod body f ailures

4 2 0 14 12 10 8 6 13 Grade MMS-NR (4138) Installation date 9 27 April 2020 2001 4 2002 2003

Year

Premium MMS-NR (AISI 4138M) Sucker Rods 2 2004 13

Premium MMS-NR (AISI 4138) failures evolution Field experience

Premium MMS-NR (AISI 4138) Evolution

16 14 12 10 8 6 4 2 0

5 1

2001

4 7 12 1

2002 Wells

Year

2003 Rod Parts

15 0

2004

Premium MMS-NR (AISI 4138M) Sucker Rods 27 April 2020

4.5

4 3.5

3 2.5

2 1.5

1 0.5

0

14

Grade of sucker rods installed Field Experience

Sucker Rod Type 20 18 16 14 12 10 8 6 4 2 0 2001 Grade UHS-NR 2002 Grade M M S-NR Year 2003 Grade D Premium MMS-NR (AISI 4138M) Sucker Rods 27 April 2020 Ot hers 2004 15

Conclusions

This material has shown to have a better performance at corrosive environment than the other type of high strength sucker rods previously tested.

A reduction in the pulling interventions rate (increase in service life) has been observed.

Even with a “sweet” corrosive environment (CO affecting the other type of sucker rods.

2 ), and because of its reduced content of Nickel (Ni), the material is less susceptible to corrosion-fatigue processes that were

Recommendations

As with all of the high strength rods in a corrosive environments, an effective corrosion inhibition program must be applied.

Besides that, with loads level less than 140% (SF=0.8) Grade D rods are also an alternative that should be considered Premium MMS-NR (AISI 4138M) Sucker Rods 27 April 2020 16