Momentum_2_2011-Black Belt Certification

The magazine for the employees, customers and key suppliers of M-I SWACO, a Schlumberger company Volume 14, Number 2 • 2011
www.miswaco.slb.com
Momentum
Failing the environment & people
is not an option
Ecuador

Editor:
Rich Cook
ContributorsTOthisIssue:
Marcelo Amaral, Rio de Janeiro, Brazil
Jim Andrews, London, England
Caitlin Armstrong, Calgary, Alberta
Nikki Botha, Cape Town, South Africa
Tony Clarke, Houston, Texas
Cheryl Cook, Florence, Kentucky
Jeff Dierig, Florence, Kentucky
Mary Dimataris, Houston, Texas
Bobby Farmer, Lafayette, Louisiana
Tim Farrell, St. John’s, Newfoundland
Joanne Galvan, Houston, Texas
Steve Hamlett, Rio de Janeiro, Brazil
Eric Heath, Houston, Texas
Kenny Helmer, Houston, Texas
Edgardo Hernandez, Almaty,
Kazakhstan
Brian Hunter, Houston, Texas
Misty Kahn, Houston, Texas
Wendy Koller, Heerhugowaard,
Netherlands
Arman Kuspayev, Aktobe,
Kazakhstan
Linda Lindenberg, Houston, Texas
Alan McLean, Houston, Texas
Kendra Nolan, Houston, Texas
Steve Orr, Houston, Texas
Lorena Páez, Quito, Ecuador
Ben Paiuk, Houston, Texas
Claudia Pardo, Santa Cruz, Bolivia
David Paterson, Houston, Texas
Teófilo Rodríguez, Quito, Ecuador
Joe Roettle, Barcelona, Spain
Brian Rogers, Houston, Texas
Roger Ross, Chikasha, Oklahoma
Talgat Shokanov, Houston, Texas
Lisa Stephen, Aberdeen, Scotland
Mike Tangedahl, Houston, Texas
Tamesha Wells, Houston, Texas
Carter White, Houston, Texas
Joshua Whitehead, Houston, Texas
Diana Wochel, Baden, Austria
3 Letter from the
President
4 world
momentum
Ecuador sets up IT lab in school,
Mudslingers hockey team
competes in Schlumberger
tourney, Lawyers judge science
fair, M-I SWACO acquires
Flo-Tech Testing.
9 Trade Shows and
conferences
OTC, OMC.
10 continuous
improvement
12 new Black Belts, 7 new Orange
Belts, 53 enrolled in White Belt
classes, CI Council meeting report,
Reliability Centered Maintenance
at Aberdeen ES Shop.
Contents
Momentum Cover photo: Pululahua, one of the world’s largest volcanic caldera with an average base diameter of 5 mi (8 km).
14 UP CLOSE
Global Facilities Engineering
Group – Building the future.
18 Feature
Ecuador– Failure, in protecting
the environment and helping
operators succeed, is not
an option.
28 QHSE
Global chemical regulatory
compliance integration update,
North Course fountains get a new
treatment, Information Security
Top 12.
36 tech roll call
VSAT team works with
ConocoPhillips, ECUTEC Barcelona
joins M-I SWACO, STEM rollout,
Waste injection workshop.
41 career development
and training
Supply Chain online courses,
Advanced Project Engineer
seminar in Bangkok, Mud school
in Argentina, Internal auditor
training in Azerbaijan.
45 authors and Papers
26 papers presented.
47 Awards and
aNNIVERSARIES
516 employees receive service
awards.
7 26
9
29
47
2 Momentum

T
he second quarter of 2011 opened with a positive outlook for the industry and for M-I SWACO.
We have seen healthy rig count activity, and are witnessing strength and stability in the price
of oil and economical natural gas prices. The quarter has seen the beginnings of a return to
normal operations in the Gulf of Mexico. Despite geopolitical strife in oil rich regions like Yemen, Libya
and Egypt, we are seeing significant increases in drilling operations in the U.S. Land, Brazil, Saudi
Arabia and Colombia, among other regions. These positives are outweighing the negatives.
We have a real opportunity in this quarter and beyond for profitable growth, if we maintain focus
on the fundamentals of our business. That means hiring, training and retaining the best personnel
available. We must continue to ensure “Excellence in Execution” by differentiating ourselves through
high-quality products and service delivery. We will do this through strategic investment in our
infrastructure, like our liquid mud plants, and acquisition of complementary companies. But most
importantly, we must continue to know and stay close to our customers and their site-specific needs.
We have numerous successes to celebrate this quarter. We welcome the Flo-Tech Testing, Inc. team to
the M-I SWACO family. Our latest acquisition, Flo-Tech joins our Pressure Control Business Segment and
will continue the growth of our frac flowback business in North America.
I am very pleased to report that we had the first rollout of our new equipment maintenance program
in Tyler, TX, on May 24. The Standard Equipment Maintenance Program (STEM) is an initiative that is
being rolled out globally across our ES operations to establish a standard maintenance program for
equipment reliability at the rig site. Further details on this key initiative for M-I SWACO are included in
the Tech Roll Call section in this edition of Momentum.
On April 1, we successfully migrated to the QUEST system and are seeing significant activity. While
our HOC card entries are understandably down, this indicates that users are accessing the new system,
averaging 231 entries per day company-wide. The transition to the new system has been excellent.
As evidence of our ability to keep our focus on our customers, we have achieved the $100M revenue
milestone just six months after the merger. We have won major contracts with Saudi Aramco in Saudi
Arabia, Surgutneftegaz in Russia, Stone Oil in the U.S. and with BP in Angola. We have had a great start
to 2011 in delivering New Technology solutions to our customers across all four segments, including
strong sales of our Rheliant* deepwater drilling fluid, CleanCut* cutting handling technology and
FloThru* reservoir drill-in fluid.
In the face of this success, we do not want to become internally focused but keep our eyes on the
customers’ needs. We must provide support to the frontline organization so that we can effectively
meet the customers’ demands. But at the same time, we must maintain a healthy balance of personal
time with our friends and family.
Driving continues to be our riskiest and deadliest activity. On April 14, Chris Grimmett was killed
and Kevin Buteaux was seriously injured in an accident. We must continue our efforts to make driving
safer through a greater focus on driving training. We also lost Ionel Christian Stefan, a consulting
environmental specialist with Anadarko in Mozambique, who passed suddenly while on rotation
in April. We send out deepest sympathies to the families and friends of these valued M-I SWACO
employees.
Despite these challenges and because of our successes, M-I SWACO continues to be a brand
recognized as a leader in the industry; and with strong activity for the foreseeable future, we are
well positioned to continue our growth and maintain our industry position through 2011.
Sincerely,
Steve Orr
M-I SWACO President
To Our Employees, Customers and Suppliers
Steve Orr
M-I SWACO President
3

4 Momentum
M-I SWACO Ecuador IT integrates
with Schlumberger IT
Bolivia recognized at Leading Company
As part of integration with Schlumberger, the
M-I SWACO Ecuador IT team met with the
Schlumberger IT personnel to share experiences.
From left to right are Jorge Chancay, M-I SWACO;
Eduardo Campos, Schlumberger; Teófilo Rodríguez,
M-I SWACO; and Jhon Quishpe, Schlumberger.
M-I SWACO Bolivia was recognized with the
“Leading Company Seal,” certificate by the CBHE
(Oil Energy Bolivian Chamber). This Certification
is a recognition for the continuous improvement
that M-I SWACO promoted in the different segments
of the industry, resulting in the acquisition of more
businesses opportunities and the company’s leader-
ship fortification.
World Momentum
M-I SWACO Ecuador sets up IT lab at elementary school
A
s part of their Mundo Integral project,
M-I SWACO Ecuador teams from both Quito
and Coca, led by Country Manager Mario
Colmenares, painted and prepared an IT Laboratory
for the Enrique Castillo Elementary School. The school
provided the team with lunch by way of thanks.
“This way,” said Lorena Paez, Quito office admin-
istrative assistant,“the children can enter the great
world of technology, which is very important today.”
Above: The M-I SWACO Ecuador team.
Left: Mario Colmenares sits with several of the students.
The CBHE“Leading Company Seal”is presented to
M-I SWACO Bolivia.

W
ith nicknames like: Marty ‘the moose’ Chisholm,
Kevin ‘broad street bully’ Brown, Ken ‘pylon’
Charney and Mike ‘rumored to be the Grandson
of Gump Worsley’ MacPherson, you know this annual
Schlumberger Hockey tournament would be a great one.
This was the first year for the Western Canadian
M-I SWACO Mudslingers team to join this tournament,
putting all their hearts and souls into their first game on
Thursday night facing the Schlumberger Nisku Special
Services. Within the first eight seconds, the Special Services
scored on the Mudslingers, and not 60 seconds later the
Mudslingers found themselves in a 2-0 deficit. Reg ‘Dunlop’
Patterson, aka Coach, took his third penalty of the game
and was told to go to the dressing room for a “time out” to
think about what he had done. The rest of the Mudslingers,
fighting with all their efforts came back to tie, then win
the game in an overtime shoot-out courtesy of Jay ‘top self’
Whitecotton.
Game 2 came quickly for the team the following
day when they squared off against the Schlumberger
Completions and Production (aka the Syracuse Bulldogs).
The Mudslingers took the lead, held it through the game
World Momentum 5
and in the third period, were up 3-1. After some heated
play, the Mudslingers faced a string of penalties where the
defense pairing of Matthew Browne and Carl Yaremko (aka
the Twin Towers) weathered a few five-on-threes, holding
the lead with a final score of 3-2.
Saturday was full with two hard games, the first against
the Red Deer Wireline with both teams fighting for the
Championship title. The Mudslingers did well and man-
aged to get the lead by the third period only to have the
wheels fall completely … losing to the Wireline 8-4, put-
ting them in the fight of their life for a game that meant
nothing in the standings. The Mudslingers’ final game was
played against archrivals the Schlumberger Completions
and Productions (Syracuse Bulldogs) for the second time
in the tournament. The game was played without any
incidents; backup goaltender Darren (Shu) Sharuga was
brought in to fill the net, and came away with a shutout.
The Mudslingers brought their “A” game to the “B” pool,
coming away with a 6-0 win.
M-I SWACO Mudslingers hockey team competes in annual
Schlumberger hockey tourney
Back row, left to right: Tyler Sharuga, Ken Charney, district manager – SilverTip; Walter Preece, Sr. blend operator; Chris Leonard, Sr. warehouse;
Dave Bezushko, field supervisor; Faron Duthie, technical sales representative; Matt Browne, technical service engineer; Carl Yaremko, technical
sales representative; Kevin Brown, technical sales representative. Front row, from left to right: Glenn Doiron, technical sales representative; Darren
Sharuga, Reg Patterson, district manager; Jay Whitecotton, technical sales representative; Marty Chisholm, Sr. project specialist. Not pictured: Mike
MacPherson, technical sales representative.

6 Momentum
WorldMomentum
Lawyers judge 52nd
Annual Science and Engineering Fair of Houston
On Apr. 8 three members of the
M-I SWACO Legal – IP team, Sara
Hinkley, Patrick Traister and
Carter White, served as volunteer
judges on a special award team
at the 52nd Annual Science and
Engineering Fair of Houston. The
Science and Engineering Fair
of Houston provides a unique
and beneficial science educa-
tion service to public, private,
charter and home school students in grade 7-12.
Approximately 35,000 projects were entered
in the preliminary school/district fair compe-
titions. The Science and Engineering Fair of
Houston is the largest fair of its type in Texas,
and one of the largest in the world.
Above, left to right: Patrick Traister,
Sara Hinkley and Carter White.
Right: Sara Hinkley, Patrick Traister
discussing a project with a student
participant.
Daniela Martinez,
ready for the stage.
All the world’s a stage
by Nikki Botha
L
ittle did Jaime Martinez, ES opera-
tions manager – Sub-Sahara Africa,
know that by the time his first-
born was nine years old, she would
have graced numerous stages around
the world.
Daniela Martinez started dancing at
the age of three in Mexico. Her mother,
Patricia, recognized her daughter’s pas-
sion for dance and enrolled her in a ballet
academy to hone her skills.
Although she has not won any awards, Daniela
was accepted into the prestigious Cape Academy for
Performing Arts (CAPA) in Cape Town, South Africa,
where she currently lives. This afforded her the oppor-
tunity to partake in the largest production of her dance
career.
In March, Daniela was part of a production staged in
the Artscape Theatre. This theatre is one of the most
famous theatres in South Africa and many a celebrity
has walked its planks.
CAPA has a massive production in Artscape once
every five years. Preparation for the show starts early
and in July 2010, after passing the entrance exams to
CAPA, she was accepted as part of the show, What A
Wonderful Life.
What a Wonderful Life ran one show a night from
March 4–13, with the exception of Saturdays which
hosted two shows. Daniela
danced in every show. This
was a difficult time for both
mother and daughter. Patricia
stayed with Daniela for each
appearance and the duo
arrived home after 11:00 p.m.
each night. Daniela had school
to cope with as well. Over and
above this, Daniela attends classes
at the academy twice a week after
school (as time for the opening of
What A Wonderful Life came closer,
Daniela rehearsed daily). Patricia
attended classes at the academy, which taught her the-
atrical makeup and it was Patricia who patiently applied
Daniela’s makeup before each performance.
Jaime and his wife are exceptionally proud of their young
daughter. Despite the pressure, Daniela’s school work did
not suffer and the high standard of her school work never
declined. Both parents will continue to support and encour-
age Daniela.
“Dancing is a difficult art which requires long hours of
practice. Her younger sister, Gabriela, is also attending
dance classes and wants to be like her sister,” said Martinez.
Daniela wants to be a doctor one day, but right now she
enjoys practicing her ballet and dancing with her father.

World Momentum 7
Left: Mary Walker at the Texas AM graduation.
M
ary Walker graduated from Texas AM on May 14 with a
BS in biology and a minor in English. She was a National
Merit Scholar and the recipient of the Willard Johnson
Scholarship from M-I SWACO. Mary worked hard through her four
years at TAMU and loved her time as an “Aggie.” She graduated with
a GPA of 3.968 (four years, one “B”). Mary resides in Texas, where she
is searching for a position in a research or environmental laboratory.
Mary is the daughter of David Walker, of Sweco, and his wife, Bette.
M-I SWACO Willard Johnson
Scholarship recipient graduates
fromTexas AM
Big fish in small pond becomes small fish in big pond
By way of welcoming David Paterson to Houston, Jim Andrews and
Marc Turminaro took him fishing during the official handover of
duties in West Africa. The fishing trip was just off Gentil, Gabon.
“There are
rumors,” said
Andrews,“about
the one that got
away and David
may even claim
to have caught
bigger fish on
the day, but
as you know,
the camera
never lies….”
Above: David Paterson and his“monster”catch.
Left: Marc Turminaro and his“properly sized”
fish. Turminaro’s brother joined the expedition.

8 Momentum
WorldMomentum
De Beer wins Schlumberger IPM Pro Award
John De Beer, M-I SWACO district manager in Kurdistan, Iraq, was awarded the Schlumberger IPM Pro Award for
the first quarter 2011. De Beer was one of 25 winners and the first from M-I SWACO.
The IPM Pro Award is given to employees who represent excellence and it recognizes professionalism, respect,
responsibility and achievement. Complete information on the IPM Pro Awards, including past winners, can
be found on the IPM Pro Award page on the Schlumberger Hub: http://www.hub.slb.com/display/index.
do?id=id2944308.
M-I SWACO ES engineer earns safety award on
ExxonMobil Deepwater Champion
Graham Gordon received a safety award on the Deepwater Champion
on Feb. 27 and his START was also picked for a bronze award within the
ExxonMobil global system. Part of the Black Beaufort Sea Drill Team
aboard the Deepwater Champion, Graham Gordon observed that the
original “Think Plan” for their task involved crews climbing ladders to
pull electrical cables. He realized there was a safer way to perform the
job, called a “Time Out for Safety” and suggested that it would be safer to
install scaffolding for the crew to work from.
Graham Gordon, right, receives his safety award.
T
he M-I SWACO Pressure Control Business segment
is pleased to announce the acquisition of Flo-Tech
Testing, Inc., a leading provider of pressure control
frac flowback, well testing services, H2
S monitoring and
anchoring services for the oil and gas production
industry in Texas and Louisiana.
Founded in 1997 and based in Texas with headquar-
ters in Brenham and with regional operations in Carrizo
Springs, Odessa, Palestine and Kilgore, Flo-Tech special-
izes in Production Testing Services (PTS). These capabili-
ties complement the current M-I SWACO pressure control
offering of chokes, manifolds, separators and degassers.
Of particular operational significance is the M-I SWACO
product lines of automated control chokes and three
phase separators, currently utilized by the M-I SWACO
North America Land (NAL) PTS business unit. The acqui-
sition of Flo-Tech will allow us to further expand our PTS
technologies and services and strengthens our position
achieved through the previous acquisition of Precision Gas
Well Testing in the U.S.
M-I SWACO acquires Flo-Tech Testing, Inc. to complement
current Pressure Control Business offerings
Shan Conway and Dwight Conway will assume the
roles and responsibilities of General Managers of Flo-Tech
and will report to Mike McMillon, PTS Manager NAL.
Shan and Dwight are the founders of Flo-Tech and each
brings more than 20 years of managerial, operational
and technical experience to M-I SWACO. Both are former
employees of Schlumberger Well Testing.
The flowback and production testing services from
the acquired companies of Precision Gas, Lonkar, Silvertip
and now Flo-Tech have been consolidated in NAL. These
four organizations collectively establish M-I SWACO as
a significant presence in the expanding unconventional
reservoir market in North America and have positioned
us for strong growth in 2011.

World Momentum 9
Trade Shows and Conferences
2011 Offshore Technology Conference
M-I SWACO has been busy at trade shows, attending 18
shows from April through June. The biggest show was
the Offshore Technology Conference, held in Houston
May 2–5. The M-I SWACO booth had 16 pieces of
equipment displayed, with 14 technologies as elec-
tronic presentations. Equipment on display included:
• MD-3 shaker
• Mongoose Pro shaker (first showing in a tradeshow)
• OEM and Replacement Shaker screens
• CD-500 HV (Slimline) centrifuge
• LPAC control consoles (local and remote)
• Manifold with mounted Autochoke units
• Carbontracker gas meter
• Rdct tool
• Magnostar tool
• Well Commander tool
• Well Commissioner tool
• Well Scavenger tool
• Well Patroller tool
• Cyclotech B20 Deoiling Hydrocyclone Refit Assembly
• Cyclotech MC Desanding Hydrocyclone Liners
• Epcon Compact Flotation Vessel
Other featured technologies, on electronic displays,
were:
• I-BOSS Technology Suite
• Kla-Shield System
• Rheliant System
• WARP Technology
• Virtual Hydraulics software
• Idrabel Technologies
• ATC
• Multi-Phase Clarifier unit
• Production Technologies
• Deepclean Technology
• Insulating Packer Fluids
• SulfaTreat Offerings
• Envirotherm NT System
• Aqualibrium Water Treatment Technologies
OMC Show
The long history of
success and growth at
the OMC show since the
first one in 1993 makes
it an international
meeting arena for the
oil and gas industry.
OMC 2011 was held in
Ravenna, Italy, March
23–25, and 450 exhibiting companies and more than
8,000 industry professionals attended.
The M-I SWACO PWSM team had a booth before
the merger in addition to participating at the main
Schlumberger stand.
Schlumberger focused on Shale Gas as their main
theme, and all the segments attending promoted tech-
nologies that tied into this topic. The PWSM team
presented technology now being sold to shale gas
operations, a wellhead desanding equipment for prop-
pant removal from the flowback water. At the
M-I SWACO stand we featured the whole PWSM portfolio.
A few good leads were obtained, but the number of
visitors was down from what the team experienced two
years ago. The conference presentations were interesting
and it’s a good place for networking.
Other shows in 2Q
• Schlumberger Technology Day, Holland, Apr. 1–4
• MPD UBO, Denver, Apr. 5–6
• ICoTA, The Woodlands, Apr. 5–6
• APPEA, Perth, Apr. 10–13
• AADE Annual Conference, Houston, Apr. 12–14
• ES Expo, Houston, Apr. 15
• Drilling Unconventional Gas, Fort Worth, Apr. 18–20
• Completions Expo, Cypress, TX , Apr. 27
• SPE Workshop, Environmental Footprint, Shale Gas,
Pittsburgh, Apr. 27–28
• SPE Western North American Regional Meeting,
Anchorage, May 7–11
• ConocoPhillips Expo, Houston, May 9–10
• CIM, Montreal, May 22–25
• SPE Shale Gas Workshop, Beijing, May 29–June 1
• Saskatchewan Oil Show, Weyburn, June 1–3
• Udhailiyah Rigless Technology Day, Saudi Arabia, June 6
• 9th
European Formation Damage Conference,
The Netherlands June, 7–10
• Brazil Oil Show, Macae, June 14–17
The M-I SWACO
booth.
Torbjörn Juliussen, Norway area
sales manager, at the M-I SWACO
OMC booth.

10 Momentum
Continuous Improvement
CI Belts
A White Belt class was held at the Training Centre in Aberdeen,
Scotland, in March, with 11 graduates from UK, Holland and Canada.
Wayne Skelton-Church and Lisa Stephen led the class. Graduates
were, from left: Lisa Stephen (instructor), Judith Weijman, Tijana
Kostic, Rick Tiebie, Lisa Howitt, Isobel Zambonini, Teresa McCabe,
Andy Bradbury, Amber Smith, Gary Hewitt, Christy Grant, Wayne
Skelton-Church (instructor), Iain MacLeod.
Colombia hosted a White Belt class in April. Attendees were:
María Alejandra Blanca de Guaipo, Julian Durán Pinto,
José Luis Gil Toyo, César Vladimir Olaya Ayala, Frank José
Valdivieso, Luis Vallejo, Francisco Vera, Carla Vera Bianco
and Luz Villalobos.
Argentina hosted a White Belt class in April. Attendees
were: Mauricio Bendahan, Oscar Calfuquir, Guillermo
Derewicki, Edgardo Farías, César Figueroa, Leonardo
Gelsi, Gustavo Gutierrez, Luján Leiguarda, Gabe
Manescu, Alejandro Martinez, Sergio Andrés Perez,
Sergio Ariel Perez, Martín Pincheira, Gustavo Principe,
Carlos Sartori, Marcos Simón, Miguel Velez.
There are currently 488 Certified White Belts, 43 Academic Orange Belts, seven Certified Orange Belts, 10
Academic Black Belts, and 21 Certified Black Belts. Since the first quarter, 12 people were Certified Black Belt—
Sergio Estivill, Mark Hughes, Paul Ward, Martin Herrera, Sandy King, Brian Rogers, Brenda McIntosh-Doell, Don
Presley, Chris Barker, Monty Hale, Brian Simpson, and Levi Lloyd; and seven people were Certified Orange Belt—
Kenny Holland, Anna Wiszniewski, Alan Hendry, Jason Kissoon, Lada Romanova, Simon Harrison and
Bernie Kolb.
Four White Belt Classes have been held, in which 53 people were trained—in Houston; Aberdeen; Neuquén,
Argentina; and Bogota, Colombia. Two Orange Belt classes were held training 14 people in Edinburgh, Scotland
and Florence, KY. The Belt Training schedule is on track to hold 12-14 White, six Orange and two Black Belt
classes during 2011. Many of the White Belt classes are now being taught by CI Black Belts that are graduates of
the M-I SWACO Belt program.
White Belts
A White Belt class was held in Houston the week of Feb. 21. Participants were Kim Ballew, Ryan Larsen, Rob
Crawford, Amanda Ellis, Chris Langley, Debra Massey, Matthew Mason, Albert Buswell, Randy LaKing, Julio
Lopez, Ming Kung, Hope Baumel, Lennie Guy, Al Shaffer, Nuno Andrade and Christy Sherman.

Continuous Improvement 11
CI Belts continued from page 10
Orange Belts
Black Belts
CI Orange Belt class, Edinburgh, UK, March
7–11. Back, left to right: Lyes Allalou,
Thierry Neyroud, George Stevens, Chris
Shutt, Nuno Andrade, Chris Buchan. Front,
left to right: Nikki Botha, Liubov Ivanova.
Alan Hendry, left, receiving his Orange Belt
certificate from David Wilson, right.
Left, Fabian Bonino presents the Black Belt
Certificate to Sergio Estivill, right.
Alexey Zaytsev, CI manager for Russia,
accepts his Black Belt Certificate.
Left, Fabian Bonino presents the Black Belt
Certificate to Martin Herrera, right.
Lisa Stephen receives her Black Belt
Certificate from Ian Jack.
CI Orange Belt class, Florence, KY, April
11–15. Left to right: Dwight Rider, Bob
Gurren (instructor), Eric Bragg, Acharee
Siriwongse (Schlumberger), John Hazle-
wood, Jaci Serafim, Ryan Larsen, Tim
Fagley, Jerry Duncan (instructor).
Lada Romanova, SLR HR manager, receives
her Orange Belt certificate from Vladimir
Kuksov, regional VP.
A Black Belt CI class was held in Florence,
KY, in May. The graduates are, from left to
right: Mark Stoller (instructor), Kenny
Holland, Doug Decoux, Bharat Arora, Chris
Glass, Bernie Kolb, Dan Killian, Martin
Herrera (instructor), Shelton McMath,
Bob Barrett.
CI Manager Europe Bernie Kolb, left,
accepts his Orange Belt Certificate from
Regional VP Friderik Kramberger, right.

12 Momentum
ContinuousImprovement CI Council meeting report
T
he Continuous Improvement (CI) Council met in
Houston the week of May 3–6, during OTC. This
was the first in-person Council with the new
format. Steve Orr, president of M-I SWACO, is now the
Council leader, and Mark Stoller, VP of Manufacturing, is
the co-leader. The new CI Council is made up of the Area
and Function VPs and their CI Champions. (Reference the
Global CI e-Collaboration, http://msc.web.miswaco.com/
leanandtechnology/Home.aspx, for Council membership
and the full Council report.) The CI Champions report
directly to their VPs and functionally to Mark Stoller.
Most of the CI Champions are CI Black Belts; all are in the
Belt Program.
“Continuous Improvement is an approach to business
excellence,” said Orr.“It encourages every employee to
share their knowl-
edge and ideas to
make continual
improvements
that will bring
tangible benefits
to the business.
The M-I SWACO
CI program is first
class, proven and
when deployed
throughout the
company will
result in continual
step changes
in the products
and services we
deliver to our customers. CI is wholly compatible and
supportive of our strategy of ‘Excellence in Execution’ and
‘Getting It Right the First Time, Every Time.’ An organiza-
tion that fully leverages CI will have differentiation; your
participation is a must to make this happen.”
Orr called on attendees to stay the path to the core Goal
and Charter of the Council.
Area and Function CI Champions shared their accom-
plishments, CI people development and plans for 2011.
Latin America (LAM) highlighted their ES Shops Best
Practice now being implemented across their Area.
Europe and Africa (EAF) described their new employee
CI on-boarding and their “MY CI” programs now deployed
in the UK, which will soon be spread to other locations
across EAF.
Minerals rolled out their CI initiatives to develop North
America “Flagship” Minerals facilities.
Russia (SLR) showed their Visual Management Monitors
to communicate goals and status in real time.
The CI group presented a comparison of the M-I SWACO
CI program to the Schlumberger Lean program and
highlighted the
synergies that
can benefit both
programs. They
also introduced
the revised CI
Management
Training Course.
Mark Stoller
reported on
the Demand
Planning ini-
tiative, mile-
stones achieved and the way forward. David Paterson, VP
Strategic Development, described the new effort Standard
Equipment Maintenance (STEM), designed to improve the
performance and utilization of ES equipment across the
company. Paterson defined step objectives with full imple-
mentation to be completed end of 2012.
The Council directives included:
• Minerals to consider their new “flagship” facilities stan-
dards for application to all related global location.
• CI Management training for all N-1, N-2 N-3 managers
with targets by quarter and completion by mid-2012.
• The CI group to continue to benchmark the M-I SWACO
CI program to the Best of the Best and to integrate the
strengths of Schlumberger Lean program.
• EAF and SLR to work together to support CI in the
Caspian Region.
• SLR to document the Best Practice on Visual
Management (Dashboard) presented and to help other
locations.
• The CI Group and Area/Function Champions to amend
current reporting structure to comply with the SLB
Lean/CI monthly progress reporting format.
The next CI Council meeting is Aug. 8.
Left: Recent Black Belt recipients with Steve
Orr. Above: Mark Stoller, standing, answers
questions from Steve Orr, seated second from
left, while the rest of the CI Council listens.
GOAL:
Create a culture of Continuous
Improvement that empowers employ-
ees to improve their work environ-
ment and business performance
CHARTER:
• Share “Best Practices” and recognize
accomplishments
• Track business impact (metrics,
visual controls)
• Define CI guidelines and align with
business strategy
• Promote CI awareness, training
knowledge sharing

Continuous Improvement 13
JourneytowardsReliabilityCenteredMaintenanceatthe
ESShopinAberdeen
By Lisa Stephen, CI Manager EAF, and Paul Ward, Demand Planning and CI Manager
R
eliability Centered Maintenance (RCM) was an area
that the ES workshop in Aberdeen first explored in
2008, initially looking at the centrifuge and vacuum
units during a Continuous Improvement event. Alan Hendry,
ES support manager and CI Belt at the Minto Drive Facility,
led the team that had a goal to have in place a visual and
standardized maintenance procedure, based on planned
schedules, while maintaining the current level of service pro-
vision. The ultimate goal was to reduce the number of hours
spent servicing equipment, freeing up people for other tasks
and improving profit margin, reducing turnaround time and
increasing the availability of equipment for offshore use.
During the event, several improvements were achieved
immediately, including visual checks on the units, e.g.,
bolt movement indicators, marked grease points and
gauge ranges.
Despite these changes and best efforts from everyone, it
became very clear that there was still no consistent approach
for personnel maintaining ES rental equipment and no stan-
dard way of measuring and analyzing equipment condition,
e.g., time run, maintenance history. Communication between
offshore operators, workshop personnel and technical sup-
port departments regarding maintenance requirements,
maintenance deployment and feedback was limited.
In 2009, the CI group received several enquiries from
operations around the world concerning the availability of
methods to increase equipment utilization and decrease
maintenance costs. In response, they created an internal
module for RCM. The next step was to trial the module, and
the ES shop in Aberdeen was happy to assist.
A CI event was held in February 2010 focused on the
Automatic Tank Cleaning (ATC) unit. The cross-functional
team, once again led by Alan Hendry, included representa-
tives from QHSE, Technical/Design, Workshop (mechanical/
electrical) and Offshore to ensure that everyone involved
in the maintenance process was given the opportunity to
discuss ideas and agree on the way forward.
Participants drafted a flowchart to capture what happens
when a unit is returned from offshore to maintenance.
They implemented a problem tag system to generate
feedback on equipment issues and created a shift hand-
over book to track repairs and parts replaced offshore.
Maintenance checklists (annual, after job and daily)
included a 360-degree walk-around and photos to show
order of checks to be conducted.
One of several follow-up actions from this event was
to source and implement an inexpensive Maintenance
Management computer-based system—often referred to as
a Computerized Maintenance Management System (CMMS).
The maintenance
check-list developed in the CI process.
The purpose of a CMMS is to:
• Track complete maintenance history for each asset and
critical components
• Proactively trigger scheduled maintenance events
• Provide a mechanism for resource and materials planning
• Provide a repository for associated documentation and
evidence of regulatory compliance
• Provide a database of maintenance costs for reporting and
analysis
Alan’s team has worked hard at integrating the CMMS
software and understanding its available functionality.
A follow-up CI event facilitated by Hendry in March saw
the system populated with planned maintenance for all
equipment at the ES service center that will provide a major
benefit to the business with accurate maintenance data,
uniform maintenance process across all assets regardless of
location, auditable and easily readable maintenance system,
and trend identification.
“Due to the introduction of RCM practices,” said Hendry,
“we now have a one-stop shop for all our maintenance his-
tory, hazardous area certification, equipment design data,
quality inspection checklists and related documentation.”
The ES shop in Aberdeen has established a step change in
their maintenance approach toward a vision of where they
want to be.

14 Momentum
In each issue, Momentum sits down with one of the many experts
within the M-I SWACO organization for a candid look at their area
of expertise and how it impacts not only our company, but the
industry as well.
UP CLOSE recently visited with José Herrera, Global Facilities
Engineering manager; Harvey Anderson, Global Facilities
Engineering manager; and David Gilligan, Global Facilities engi-
neer, at the recently built Carrizo Springs, TX portable liquid mud
plant to discuss the Global Facilities Engineering Group. Officially
formed after a Continuous Improvement event in November 2009,
the group oversees the planning, building and installation
of liquid mud plants around the world.
Up Close
Global Facilities Engineering Group – Building the future
Momentum:
What is the Global
Facilities Engineering
Group?
José Herrera:
M-I SWACO Operations per-
sonnel have continuously
requested technical assis-
tance from management for
the tendering and build-
ing process of Liquid Mud
Plants (LMP). M-I SWACO
managers would search
for this information within
the company and find it in
bits and pieces, from many
different sources and much
of it only in verbal form. The
number of people in the
company with experience
at building LMPs were few
and very spread out over
the globe. For example, I
was in charge of the North
America Offshore region.
Fabiano Miranda was
responsible for Brazil, Mike
Pitre for Alaska and Essam
Mahrous, the Middle East.
However, the company
did not have any corporate
standards, guidelines or
good exchange of informa-
tion. Basically, every area
designed and built the
facilities differently. Other
areas were including the
same design flaws over and
over again.
The Global Facilities
Engineering Group (GFEG)
is creating standard
LMP designs based on
M-I SWACO requirements,
Schlumberger QHSE
standards and current
International Building
Codes. The group has
compiled a database of LMP
building and equipment
specifications in an effort
to communicate and share
these concepts with the
M-I SWACO global
community. This infor-
mation can be found
on the Global Facilities
Engineering Group’s
SharePoint^ site: http://gbu.
web.miswaco.com/gfeg/
default.aspx.
Now the GFEG is in the
process of implementing
these standards for LMPs
around the globe. The group
was set up as a technical
support resource for the
M-I SWACO global commu-
nity less than a year and
half ago. The group is
assisting on projects to
different degrees in various
regions, and our experience
and reputation in the
M-I SWACO community is
growing with each project.
Active involvement and
support from upper man-
agement also provides
increased levels of confi-
dence with area managers
using GFEG on their projects.
Momentum:
What are the origins
of the GFEG?
J.H.:
In November 2009, a
Continuous Improvement
(CI) event was held in
Houston addressing the
constant issues and prob-
lems concerning liquid
mud plants. Personnel from
around the world who had
any kind of experience with
building LMP facilities were
invited to attend the event.
The CI event spawned the
development of the Global
Group, which was approved
by senior management
in February 2010. Three
months later the group
was structured, populated
with personnel and active
in assisting the LMP new
builds. It’s now May 2011
From left to right: Felipe Campos, truck driver; José Herrera, Global Facilities
Engineering manager; David Gilligan, Global Facilities engineer; Oziel Flores,
truck driver; Harvey Anderson, Global Facilities Engineering manager, at the
Carrizo Springs, TX liquid mud plant.

Up Close 15
and GFEG has moved for-
ward quite a bit. The group
has its own SharePoint site.
The group has developed
specifications and stan-
dards with input from the
Eastern Hemisphere and
Western Hemispheres on
plant design and QHSE
issues. Building a standard
that caters to all parts
of the world means the
standards have to include
local building and electrical
codes as well as environ-
mental concerns.
Momentum:
With the integration
of M-I SWACO into
Schlumberger last year,
has that changed how
you approach facilities
engineering?
J.H.:
After meeting with the
Schlumberger Engineering
and Construction man-
agers in Houston, we
noted that both groups
follow nearly identical
project roadmaps. GFEG
is using the same ideas
and concepts to build
the M-I SWACO LMPs as
Schlumberger is using for
their facilities. M-I SWACO
Group has also utilized
and implemented stan-
dards identified on the
Schlumberger Hub.
Besides incorporating
some of Schlumberger
standards into M-I SWACO
plant design, GFEG com-
municates with local
Schlumberger operations
before starting to build
a facility. For instance,
GFEG checked with
Schlumberger in Australia
to see if there was space
available on their existing
property in Dampier for
the proposed M-I SWACO
LMP. This approach has
proved fruitful in Mexico
as M-I SWACO is moving
several LMPs to existing
Schlumberger properties.
This will allow for overall
company cost savings in
property, operations and
security. This consolidat-
ing of Schlumberger and
M-I SWACO operations into
single locations will serve
to further integration, com-
munication and promote
efficiency enhancements
for these multi product and
service centers.
David Gilligan:
We leased enough property
here in Carrizo Springs
to allow Schlumberger or
other M-I SWACO divi-
sions to co-locate a facility.
The plan for this facility
included installing gates
in the back of this facility
so they can get access to it.
We’re doing this globally.
Momentum:
What is the primary
purpose of the Global
Group?
J.H.:
The GFEG was created to
ensure that every facility
is designed, constructed
and commissioned to be
compliant with corporate,
international and local
engineering and QHSE
standards. We ensure
each facility is built cost-
effectively, on time and to
budget with maintenance
plans and procedures in
place. That’s our mission
statement.
The secondary purpose is
to support operations. The
group wants operations
to have technical support
during the tendering and
design phases of new LMP
projects. The operations
groups need good solid
proposals for their client
tenders. M-I SWACO is
becoming more accurate in
LMP cost estimates, result-
ing in better numbers for
the tender stage. This will
give M-I SWACO managers
confidence in requesting
Appropriations Requests
(AR) and quoting drilling
fluid prices to customers.
Momentum:
What kinds of facilities
are they?
J.H.:
A liquid mud plant, or LMP,
is a tank farm that blends
and stores drilling fluids.
The drilling fluids are then
transferred to trucks or sup-
ply boats for transportation
to the drilling operations.
M-I SWACO drilling fluids
are made from a multitude
of ingredients to form a
variety of product offerings
to M-I SWACO customers.
Testing labs are also a part
of liquid mud plant facili-
ties. The fluid technicians
perform quality assurance
tests to verify specific grav-
ity, viscosity and composi-
tion of the fluid before the
fluid is sent to the client.
A critical factor of the
drilling fluid is the actual
weight of the fluid. Most
people don’t realize the
weight or density of a
drilling fluid is very high.
The high-density fluids
can exceed the weight of
liquid concrete. This trans-
lates to a very important
design consideration for
the tanks and foundation
in a facility. The tanks have
to be designed to hold
these heavyweight fluids.
Similarly, the facility’s foun-
dation has to be designed to
support the tanks filled with
these fluids.
Momentum:
What types of LMPs
are there?
J.H.:
Let’s start from the most
advanced, which is also the
most expensive to build,
the Deepwater Equipped
type plant, such as the LMP
currently under construc-
tion in Luanda, Angola. In
this type of facility, larger
and deeper draft supply
boats are accessing the LMP,
which means more sophis-
ticated and heavier duty
docks have to be built. These
larger vessels cost more to
operate so transfer rates of
product becomes a greater
factor. The drilling fluids
and bulk products are often
being transferred at faster
In front of the tanks at the Carrizo Springs,
TX LMP, a truck scale allows drivers to
carefully measure the amount of drilling
fluid they take on.

16 Momentum
transfer rates in comparison
to the other LMPs mean-
ing heavier duty and more
expensive equipment. The
Deepwater Equipped facil-
ity can take up to a year
to build.
The next LMP type is the
land facility. These facilities
supply drilling fluids and
bulk products to drilling rigs
via trucks. A land facility is
a fixed facility with a design
life of more than eight years
in one location.
Another LMP type is a
portable facility. The Carrizo
Springs, TX facility is a
portable type facility that
answered a quick response
need. This facility has a
design life of two to eight
years at one location. In a
few weeks, you can have
this type of facility moved
and reassembled at another
location. The facilities are
built with quick discon-
nects and all the flanges are
bolted, picked up, moved
on a truck enroute to the
next location.
The simplest LMP is the
ultra-portable facility. This
type of facility is commonly
used in West Africa where
the storage tanks are ship-
ping container size and
stackable so the local opera-
tions can load the tanks on
a vessel and move it along
the West African coast. It’s
also quick to disassemble
and assemble. This type
facility is designed for short
durations at one location.
Harvey Anderson:
In addition to the design
of the LMP, bulk handling
equipment is also part
of the remit of the GFEG.
Throughout the bulk
area of the portable and
ultra-portable plants, you
will see large sweeps in the
pipes. This is done to allow
the barite to flow properly
and not clog. These sweeps
are specially designed up
front so that they can be
taken apart and easily
transported on a trailer.
That is why you may see
some flange connections
in unusual places; they
are there to insure that
we have a piece that is
going to be able to fit on a
flatbed trailer.
And so when it comes
time to move a plant, I
already know what my land
requirements are. I know
how much property to
develop. Once it is devel-
oped, we have a crew tear-
ing down the facility and
another crew building it
as soon as they start receiv-
ing parts.
Momentum:
What is the design and
build process for a
new facility?
J.H.:
Phase I is request for new
LMP. The local operations
receives a tender from the
client, or a local opera-
tion develops the business
case for future work. The
local operations contacts
regional QHSE and the legal
department to evaluate
the viability of site selec-
tion. The company wants to
ensure the property is not
contaminated prior to leas-
ing the property. The next
level of the project roadmap
is the project feasibility
phase. The local operations
then contacts our group
for help with estimat-
ing the requirements and
costs of the project. Then
the potential property is
examined from an engi-
neering perspective. At the
AR level, the project should
have a preliminary layout,
cost estimate, schedule and
a statement of earnings
(SOE), then is submitted for
approval by management.
Once management
approves the AR, the proj-
ect moves onto Phase IV,
which is the engineering
design phase. GFEG and
local project manager are
talking to the contractors,
finalizing the land con-
tracts and applying for the
environmental and build-
ing permits.
The next step is the
construction phase. The
project manager must
ensure the per-
mits have been
approved and the
selection of con-
tractors has been
accomplished. Once
construction begins,
the contractors are
monitored and the
schedule is updated
continuously.
The final phase of
the project is the com-
missioning stage. The
equipment performance
tests and system functional
performance tests are
completed. A QHSE audit is
performed. The operators
are trained, final costs sum-
marized and the project AR
is officially closed out.
The facilities engineering
group has developed a bro-
chure that walks the opera-
tions manager through
the project roadmap in
greater detail. The com-
plete picture can also be
found on the GFEG website.
In essence, when a country
manager contacts GFEG for
assistance in building an
LMP, we can walk the proj-
ect manager through the
project roadmap process
and prompt action for the
specific project.
Momentum:
What kind of challenges
do you have to deal with
when planning and
building an LMP?
J.H.:
The biggest challenge is
always timing. The client
always needs the new
facility operational and
able to service their drilling
rigs as soon as possible.
At the same time,
M-I SWACO needs to
procure quality tanks,
equipment and find suit-
able contractors. The GFEG
group has worked with the
Strategic Sourcing Division
in order to locate qualified
equipment vendors and
contractors. The GFEG can
view the Strategic Sources
database and find repu-
table tank builders and
equipment manufacturers
UpClose
The Global Facilities Engineering Group brochure.

Up Close 17
in or near the area. This
allows the project procure-
ment to start immediately
after the AR is approved.
Engineering is another
challenge because every
area has different soil
conditions. In the swamps
of Louisiana, the founda-
tion may require timber or
concrete piles to support
the tank farm whereas in
South Texas or Australia,
the foundation does not
require pile support. In
other areas there may be
a weather concern like
extreme cold or heavy
rains, all of which have to
be considered during the
design phase.
Another obstacle that
can delay projects are the
environmental, air quality
and construction permits.
Local project managers
need to work closely with
M-I SWACO environmen-
tal and safety depart-
ments to ensure all correct
permitting is acquired.
Each facility is continu-
ously inspected by the oil
and gas companies, local
government agencies and
country environmental
protection agencies to
ensure M-I SWACO facili-
ties comply with current
QHSE practices, structural
and electrical building
codes. At the end of the
day, we want to ensure
each facility provides a safe
working environment for
M-I SWACO personnel.
D.G.:
As well as our own internal
standards and expecta-
tions. I know in a lot of
areas that we operate, they
may not have as stringent
environmental regulations
as we have in the U.S. and
other countries. However,
we still have a cor-
porate responsibility
not to impact the
environment and
we will follow the
more stringent stan-
dard that we have
developed.
J.H.:
M-I SWACO has their
own standards and
regulations. The
facilities group does
administer best prac-
tices when building
an LMP. For example,
all the new LMPs are
designed with
a back flow pre-
venter. Certain
remote areas of
the world may
not understand
the value of a
back flow pre-
venter; however,
M-I SWACO
wants to ensure
that the com-
pany-provided
drilling fluids
do not flow
and potentially
contaminate the
local commu-
nities’ water sup-
ply so we have
the back flow
preventer as a
standard piece of
equipment in our designs.
Momentum:
Who makes up the
GFEG team?
J.H.:
GFEG has five official team
members to date: Dean
Bidstrup, Harvey Anderson,
David Gilligan, Essam
Mahrous and myself.
Having to service the globe
you can understand that
the team relies heavily on
qualified regional facili-
ties engineers to help build
facilities in some areas. The
group encourages the local
area managers to assign
qualified local project man-
agers to directly oversee
the construction phase of
the project. GFEG person-
nel are typically involved
with several projects at one
time and cannot dedicate
all their time to a single
project. For example, Brazil
has Fabiano Miranda, Mike
Pitre in Alaska, Raymond
Paterson in West Africa,
Vitali Gubenko in Russia
and Courtney Girdwood in
Australia. The group works
closely with these engi-
neers to ensure LMP stan-
dardization and equipment
standards are maintained
and are an integral part of
the final delivered product.
Top: The Global Facility Engineering Support Network.
Bottom: The Liquid Mud Plant project roadmap.

18 Momentum
Top: M-I SWACO Quito’s Esteban Lopez drives toward the goal during
a pick up soccer match with a local customer team. Above: Alex
Guevara, Andes senior drilling engineer; Jorge Cardenas, Andes
drilling engineer; Harold Saravia, M-I SWACO project engineer;
Oscar Veloz, M-I SWACO drilling fluids engineer.
T
he official name, República del Ecuador, liter-
ally translates to the Republic of the Equator.
The country is one of only 13 countries that the
equator passes through. Its capital city, Quito, was declared
a World Heritage Site by UNESCO in the 1970s thanks to
its well preserved old city, the finest and least changed in
Latin America.
Home to hundreds of unique species of plants and ani-
mals, Ecuador is one of 17 countries called a megadiverse
country by Conservation International. Although best
known for the Galapagos Islands’ unique species of plants
and animals first cataloged by Charles Darwin in 1835, the
mainland country is home to 1,600 species of birds (15%
of the world’s known species), 6,000 species of butterflies,
over 100 species of both reptiles and amphibians and over
16,000 species of plants.
Although the landmass only covers 105,037 sq mi
(272,046 sq km), it has three distinct geographical regions:
La Costa, or the coast, which is comprised
of low-lying land; La Sierra, or high-
lands, a high-altitude belt that bisects
the country along its N/S axis; and La
Amazonía or El Oriente, comprised of the
Amazon rainforest areas in the eastern
part of the country.
Along with its rich biological diver-
sity, Ecuador has been home to numer-
ous civilizations since the first humans
settled there nearly 10,000 years ago. The
region became part of the Inca Empire in
1453 and was conquered by the Spanish
by 1534. The Spanish ruled Ecuador until
Oct. 9, 1820, when Guayaquil became the
first city to gain its independence; on
May 24, 1822, all of Ecuador gained inde-
pendence. After a war with Peru in the
1940s and subsequent military governments through the
1970s, Ecuador returned to democratic rule on Apr. 29, 1979.
There was an attempted coup d’état in September 2010 but
the country quickly returned to stability.
By Rich Cook,
Editor, Momentum
Failure, in protecting the environment
and helping operators succeed, is not an option
Ecuador

Newfoundland 19
Cotopaxi, Ecuador’s highest active
volcano, is just 17 mi (28 km) south of
Quito. It last awoke in 1975 without any
spectacular events but has been showing
increased fumarolic activity and sulfuric
emissions that are melting ice along the
southeastern side of the cone.

remove us at anytime. So we have to always make a differ-
ence to get more work.”
M-I SWACO has about 60% of the market in Ecuador,
working on 13 rigs of the 22 operating. Most of the
rigs are operated by national oil companies, including
PetroAmazonas, PetroProduccion, Rio Napo and Andes
Petroleum. International operators include Italian Agip and
newcomer to Ecuador, Canadian company Ivanhoe Energy.
The last two years of the last decade—2008 and 2009—
were strong years for M-I SWACO Ecuador, especially for
Wellbore Productivity and their tools. 2010 saw some
slowdown in activity, primarily because of the change in
the contracts structure and the resulting shifting of con-
tract holders.
Although M-I SWACO started operating in Ecuador 24
years ago, it remains a relatively small operation with 170
total employees countrywide including 18 expats. Three
of those expats work in the Quito office; 15 work in highly
specialized jobs in the field. Colmenares said that tap-
ping into local Ecuadoran talent is vital to the company’s
success. The Environmental Solutions group, for example,
is worked and managed almost entirely by Ecuadorans;
one Colombian completes the group. Tapping into the
Ecuadorian workforce allows M-I SWACO Ecuador to save
service costs, such as travel, hotels and work permits.
“We expect a strong upturn in activity in 2011,” said
Colmenares.“We expect more tenders, as well. The big
challenge is that all of the wells are in the jungle; therefore
20 Momentum
The M-I SWACO Ecuador team from the Quito office.
The government of Ecuador recently changed how
oilfield contracts work. Previously, the international oil
companies (IOC) operating in Ecuador worked under
production shared contracts. Now, the contracts are service
contracts. The new contracts turn the companies into
services providers for the exploration and extraction of
hydrocarbons, and now they will received a fee rather than
sharing profits.
“The government taking over the blocks is good,” said
Ecuador Country Manager Mario Colmenares.“They are
investing in and increasing the production of the fields.
For a service company, this is just a change of customer,
from the IOCs to the NOCs.”
This is a good move for M-I SWACO because the
Ecuadorian government wants to maximize production
while minimizing costs and recognizes that new technol-
ogy, like that offered by M-I SWACO, is vital to meeting
their goals.
Working with the NOCs has been a good experience
for M-I SWACO Ecuador. They are open to seeing new
proposals and new technology because anything that
allows them to drill faster means that they can get the
same financial return on a well in less time, meaning
higher profits.
“The new technology we offer works in our favor
because it allows us to drill faster,” said Colmenares.
“The challenge is that we work under Master Service
Agreements (MSAs), which means the customer can

Ecuador 21
Calderon.“We show them our certificates, QHSE record, our
people. We show them that we do not have problems with
the environment. Right now, many customers buy on price
but as the environmental regulations get stronger and the
NOCs worry more about it, there will be more opportunity.”
Local companies
are also starting to
offer equipment
like shakers and
centrifuges but
Calderon is confi-
dent that the global
experience of
M-I SWACO will
allow them to maintain their advantage.
“It will be hard for local companies to get certifications,”
he said.“Anybody can sell a centrifuge but advanced and
new technology is hard. That is the M-I SWACO advantage
in the future. And the only way to grow a business in
Ecuador is through new technology. M-I SWACO is the only
environmental management is a highly sensitive subject.
We need to do a good job on projects like water treatment
so as not to contaminate the environment.”
There are no liquid mud plants in Ecuador; none are
needed because the water-base drilling fluids, which
make up the bulk of the drilling fluids
used in Ecuador, are built on site at
the rig. Once a well is completed,
M-I SWACO takes the mud back and
has to separate it. The wastewater,
along with the recovered solids, must
be properly disposed of. Only ENI
(Agip Oil Ecuador) uses oil-base mud
in their operations and they own the
mud plant located in the CPF area.
The fluid is transported by helicopter to the rig site.
Due to the environmental regulations, disposal of solids
can be complex. The solids are generally the same through-
out the country, but the volumes vary from rig to rig. To
dispose of them, operators have two main options: (1) pits
or (2) reinjection. For pits, there are two sets of parameters
depending on whether the pit is lined or not. With a liner,
there are certain parameters that must be met, such as oil
on cuttings volume. With no liner, there are more restric-
tive regulations.
PetroAmazonas, for example, has a 30,000 bbl capacity
in lined pit. Andes Petroleum likewise has significant pits,
but have to truck their drilling waste more than 6 mi (10 km)
from their primary drilling location.
“That is the
potential for
M-I SWACO,”
said Gabriel
Calderon,
operations
manager in
ES,“to take
care of the
environment
and the cus-
tomer’s finan-
cial interests.”
M-I SWACO
provides
solids control
and waste
management
equipment
including
centrifuges,
shakers, desanders, desilters, mud cleaners and dewatering
equipment. The challenge comes from the fact that most of
the rigs are Chinese, and it is difficult to get business with
the Chinese because prices are low and there are many
local companies that can underbid M-I SWACO.
“We speak to the customers about experience,” said
Above, left to right:
Santiago Cortez and
Lauro Ponce. Left: The
crew working on the
PetroAmazonas rig 168,
in the Amazon rain
forest, from left to right,
Patricio Egas, Mauro
Flores, Carlos Buenaño,
Gabriela Albuja,
Alexander Sanchez, Julio
Salmerón, Freddy Guaña.
“We expect a strong upturn in activity in 2011. The big
challenge is that all of the wells are in the jungle; therefore
environmental management is a highly sensitive subject.”
Mario Colmenares, Ecuador Country Manager

22 Momentum
company who can bring this new technology to Ecuador.”
Ecuador ES is working hard to develop new opportu-
nities with projects underway to develop business for
high volume centrifuges, like the CD-500* range of high
volume centrifuges, a reinjection process and a drill bit
recovery unit.
“We are the leaders in the market for fluids and in
Environmental Solutions,” Calderon said.
The Pressure Control group, which includes four people
from South American Land, is a new and promising area
for M-I SWACO Ecuador. They have secured about seven
agreements but it has been a hard sell because operators
do not see the immediate need for the equipment. The suc-
cessful sales have come as a result of a desire to mitigate
any potential problems that may arise in case of kicks.
“But we do not have any kicks,” said Calderon,“because
most of the fields are mature reservoirs in depletion pro-
cess. We just have a couple of high pressure reservoirs. Our
goal is to convince the operators to put Pressure Control
equipment on their rigs because we believe they will begin
to see its benefit for safety.”
Most of the wells drilled throughout Ecuador use water-
base drilling fluids (WBM), although Agip, the Italian
national oil company, uses synthetic-base drilling fluids
(SBM) for several wells, including their helicopter rig in the
Andes that is drilling several horizontal wells. The SBM is
recovered and reused for subsequent wells.
In July 2010, M-I SWACO helped Andes Petroleum, one
of the national oil companies, drill a record well, Fanny
18B 125, a 12 1
⁄4 in. to 8 1
⁄2 in. well with a 9,000 ft (2,740 m) TD,
in just 6.81 days. Andes Petroleum
used M-I SWACO water-base drilling
fluids to manage the wellbore stabil-
ity issues. Another record well
was drilling with M-I SWACO fluids
to 10,100 ft (3,078 m) in 16 days.
This included a 600 ft (183 m) hori-
zontal section.
“The success of these wells,” said
Alex G., Andes Petroleum,“was a
product of continuous improvement. Our main goal is
to drill a good producer, but we are always looking for
improvement.”
M-I SWACO has worked with Andes Petroleum for
almost four years, and the NOC is planning to develop
eight more wells. M-I SWACO Ecuador will provide them
with solids control and waste management, in addition to
the drilling fluids.
Most of the wells drilled in Ecuador are vertical wells,
with a few directional and horizontal wells. They are
strictly land-based operations drilling through various
formations to approximately 12,000 ft (3,660 m). The
The crew of the Coca ST warehouse, from left to right: Eduardo
Velez, Carmen Montenegro, Luis Ortega, Joffre Jaramillo, Wilson
Alvarado, Domingo Caicedo, Jose Toapanta, Luis Arevalo, Yojan
Barragán, Freguine Mendoza, Virgilio Solorzano, Klever Loor,
Hector Valle, Marco Cabezas, Washington Cobo, Manuel Vásquez,
Edison Moreno, Lauro Ponce.
“Most of the fields are mature reservoirs in depletion process.
Our goal is to convince the operators to put Pressure Control
equipment on their rigs because we believe they will begin to
see its benefit for safety.”
Gabriel Calderon, ES Ops Manager

Ecuador 23
formations include the chalcana (red clay), the orteguaza
(shale), tiyuyaco (Shale), tena (clay), Napo (shale, sand)
and the Hollin (sand). The Napo formation found in the
Yural field is very hard and M-I SWACO provides drilling
additives like gilsonite and the Black Fury* liquid gilsonite
suspension that is used to stabilize the water-sensitive,
microfractured shales when drilling with a water-base
drilling fluid.
Rio Napo has been using M-I SWACO drilling fluids
but is more interested in a coordinated approach to their
wells. They take advantage of the Integrated Project
Management (IPM) approach. Starting in May 2010, they
drilled five directional, type-S wells using the integrated
services from M-I SWACO and
Schlumberger. The main challenge
was to maintain a high ROP while
managing the depleted formations
in the area.
“For drilling the Napo formation
in the Yural field,” said Pablo
Murillo, operations manager for
Drilling Solutions (DS),“we use the
Black Fury* liquid gilsonite suspension at 2 ppg to prevent
problems. The reservoir is composed of sand so the addi-
tives provide the wellbore stability we need.”
The first well was a good project to learn how to drill in
the area. It required a lot of back reaming due to tight hole
formation. But after completing the first well, they had
figured out the formulation for the drilling fluid system
and resolved their problems, giving M-I SWACO credit for
helping them. The first well was drilled in 44 days; by the
fifth well, they were down to 19.54 days to TD.
The last well was a record. The previous well in the field
was set in 2006 and had
three sections, all cased.
The new record was set
with one more section
and drilled to a TD of
10,420 ft (3,176 m).
“In the past,” said
Edison Chiliquinga, Rio
Napo drilling supervisor,
“Schlumberger and
M-I SWACO had been
unsuccessful in drilling
the directional section.
But now, with virtually
the same group as before,
M-I SWACO and the
Schlumberger IPM group,
we were able to drill the
formation successfully,
and in less time.”
M-I SWACO worked
closely with Schlumberger in Ecuador even before the
merger and continues to maintain a close relationship
with the parent company, whose offices are a 10-minute
walk from the M-I SWACO office in Quito.
Several of the M-I SWACO managers participated in a
team building program sponsored by Schlumberger. The
goal was to climb Cotopaxi, the second highest peak in
Ecuador and one of the highest volcanoes in the world at
19,347 ft (5,897 m). Cotopaxi has one of the few equatorial
glaciers starting at 16,400 ft (5,000 m) and is graded as an
alpine F/PD, which is an easy to not-very-difficult climb.
Right: Lucia Calderon,
laboratory supervisor.
Below: Pablo Murillo, DS
operations manager; Edison
Chiliquinga, Rio Napo
drilling manager; Harold
Saravia, M-I SWACO project
engineer; Jose Alarcon, IPM
project engineer; and Mario
Colmenares, M-I SWACO
country manager.

24 Momentum
Most climbers use supplemental
oxygen due to the altitude.
Several M-I SWACO employ-
ees from the Quito office were
invited to join the expedition,
including Mario Colmenares and
Gabriel Calderon. Team members
spent as much as two hours per
day training, gaining fitness and
learning safe climbing techniques.
Bad weather and an avalanche
prevented the team from reaching
the summit on this attempt, but
they are looking forward to mak-
ing another attempt later in the year.
While drilling fluids have been the leader for
M-I SWACO business in Ecuador, tools have begun to
generate interest with the NOCs. New tools, including the
Magnostar*, Heavy Duty Razor Back* and the Well Patroller*
jetting tool, are all finding use in Ecuador. The Well
Commander* ball activated drilling valve has not been
officially used but was run in on one drill string in case
it was needed. It was not, but Colmenares said they see a
great future for the tool in Ecuador.
“Customers want new technology,” said Lauro Ponce,
technical specialist in Specialized Tools. “But they also
want to know that they will get costs savings with the
new technology.”
And they are realizing that the tools from M-I SWACO
can help them save money by enabling them to com-
plete the drilling phase faster and with fewer problems.
Operators often struggle with milling and cleaning their
wellbores. The Heavy Duty Razor Back tool has enabled them
to complete this operation without complication.
“The Magnostar magnet tool,
combined with the Heavy Duty
Razor Back tool is a popular com-
bination,” Lauro said,“because
the customers like the amount
of debris that the magnet can
pick up. The two tools are
one of the best combinations
in Ecuador.”
Petraproduccion tried out the
Magnostar and Razor Back combi-
nation on a well in late August
2010 and were very happy
with the results. Repsol and
ENAP-SIPENTROL are also
using the combination.
The PUP tools were the first
tools used in Ecuador, starting
in early 2007 with Petrobras,
the Brazilian oil company.
Petrobras had trouble with
wellbore restrictions and, based
on experience in Brazil with M-I SWACO Specialized
Tools, believed the PUP tools could help resolve their
problems. After running the tools, they had no more
restriction problems and continued to use them on
subsequent wells.
PetroAmazonas started using M-I SWACO tools in July
of 2007, and since then other companies have seen the
Employees from M-I SWACO Ecuador the often play pickup soccer games with other oil and gas
companies in Quito. The friendly competitiveness on the field translates to cooperative business
relationships off the field.
The crew working on the PetroAmazonas
rig 191, in the Amazon rainforest, from
left to right, Fausto Moreno, Edison Black,
Guillermo Cedeño, Hugo Godoy, Patricia
Tamayo, Darwin Caicedo.

Ecuador 25
benefits of wellbore cleanup using M-I SWACO tools to
build better producing wells.
“Operators see the cleanup of the well as important, or
they’ll get into trouble,” Ponce said.
Specialized Tools has an Operations manager, Edison
Endara ; a project engineer, Santiago Cortez; and three field
engineers, Lauro Ponce, and Polo Ceron. A small group to
manage the tools business throughout Ecuador, they are
beginning to see small, local companies bring out tools.
“But,” said Ponce,“customers see
M-I SWACO as the best, so we expect
growth this year because our new
technology is unlike that of these
other companies.”
Specialized Tools maintains one
base in Coca to support operations
throughout the country. A small
jungle town about 185 mi (300 km),
or 30 minutes by plane, east of Quito. Coca is a typical
Amazon jungle outpost and the yard, while only about
65 x 500 ft (20 x 150 m) is well maintained and has a main-
tenance workshop for inspection and certification of tools
and larger assets like centrifuges and shakers.
The Coca base serves two PetroAmazonas rigs, a two-
hour drive into the Amazon jungle. Most of the roads are
paved, allowing quick and safe transport of equipment
and supplies to the rigs.
Whether in Quito, on the
helicopter rigs high in the Andes
Mountains, or at the Coca base
and the jungle rigs, M-I SWACO
Ecuador has built a strong reputa-
tion for providing solutions to the
challenges faced by operators like
PetroAmazonas, PetroProduccion,
Rio Napo and Andes Petroleum, as
well as the IOCs who still operate
in country. With drilling fluids
and wellbore cleanup tools that
enable operators to drill known
formations faster and therefore
more economically, to solids
control and waste management
that help keep the pristine envi-
ronment safe, M-I SWACO works
closely with its local partners to
make the oil and gas operations in
Ecuador successful.
“Operators are very serious
about the environment and the
people of Ecuador,” said Calderon.
“It is a very sensitive environment
so we cannot fail.”
Part of Quito’s historic downtown, the
Street of Seven Crosses boasts seven
churches that date back to the days of the
conquistadors.
“Customers see M-I SWACO as the best, so we expect growth
this year because our new technology is unlike that of these
other companies.”
Lauro Ponce, Specialized Tools Technical Specialist

Photo Feature 27
Fresh fruit, including
oranges, passion fruit and
the cherimoya or custard
apple, are available at many
roadside stands.
A street performer
entertains visitors to a
traditional market, playing
a pan flute, drums, a cymbal
and sometimes singing
along.
A small park in the old
city of Quito, with many
of the old city buildings
surrounding it.
One of the most ornate
churches in the old city of
Quito.
At a traditional market
outside of Quito, almost
anything is for sale
including these freshly
ground spices.
A young boy learns to make
traditional clay figurines as
tourists shop nearby.
A dancer performs a
traditional dance for tourists
at the Center of the World,
or Ciudad Mitad del Mundo,
which marks the equator’s
path through the country.
1
2
3
4
5
6
7
6 7

28 Momentum
QHSE
SPE European HSE Conference in Oil and Gas Exploration
and Production
By Joanne Galvan, Global Chemical Regulatory Compliance Manager
T
he first European Health, Safety and Environmental
(HSE) Conference in Oil and Gas Exploration and
Production was held on Feb. 22–24, 2011, in Vienna,
Austria. The event was themed “HSE Performance Across
Europe–From Mature Assets to New Frontiers.” The confer-
ence theme reflected the challenges and range of environ-
ments within the European EP sector and how efforts
are being made to better understand the performance and
how to best learn from leading companies.
Building on a very successful International HSE
Conference held in Nice, France, in 2008, this regional event
was an excellent way for HSE professionals in the oil and
gas industry to come together and share best practices and
bring up issues for future improvement.
Several M-I SWACO members were involved with the
event. Dr. Arthur Leuterman, director OH/Environment, and
Joanne Galvan, Global Chemical Regulatory Compliance
manager, were on the Program Committee and thus were
heavily involved with preparations since last year to ensure
the event was successful. Diana Wochel, QHSE manager
CEU, also attended the event. The group was able to net-
work with their Schlumberger counterparts also present at
the conference.
Joanne chaired the Management of Chemicals Panel
Session with speakers represented by industry as well as
one of the regulatory bodies in the North Sea. Paul Henson,
Eastern Hemisphere regulatory affairs manager with
Baker Hughes, started off the session with a presentation
entitled “A Chemical Manufacturer’s Experience of REACH
First Phase Registration.” Leo Henriquez, chief inspector/
advisor with the State Supervision of Mines Ministry
of Economical Affairs, Agriculture and Innovation in
the Netherlands, presented a regulatory perspective
on European regulations such as REACH and
OSPAR and also covered the OSPAR plan for phase
out of discharges of offshore chemicals containing
candidate-for-substitution substances on the basis of the
OSPAR Recommendation 2006/3. The final presentation
was from Harald Fosshagen, regulatory manager from
M-I SWACO in Bergen, who presented “Positive Effects
of Strong Environmental Regulations; Opportunities for
Chemical Suppliers.” The presentation was from a supplier
perspective showing specific substitution cases and how the
North Sea and European regulations influence the devel-
opment of new chemistry. He also discussed how strong
regulations are beneficial to the industry’s stakeholders and
ended with discussion on how the precautionary principle
is applied. At the end of the presentations, the session was
opened for questions and discussion and moderated by
Joanne Galvan and John Hall.
Dr. Arthur Leuterman judged the poster presentations
along with Leo Henriquez. Overall, the event was a huge
success and thus will be repeated biannually.
Above: M-I SWACO representatives at the conference, left to
right: Diana Wochel, QHSE manager CEU; Harald Fosshagen,
regulatory manager; and Joanne Galvan, M-I SWACO global
chemical regulatory compliance manager. Left: Management of
Chemicals Panel, left to right: Joanne Galvan, M-I SWACO global
chemical regulatory compliance manager; John Hall, Hallibur-
ton global environmental specialist; Paul Henson, Baker Hughes
Eastern Hemisphere regulatory affairs manager; Leo Henriquez,
chief inspector/advisor with state supervision of mines; and
Harald Fosshagen, M-I SWACO regulatory manager.

QHSE 29
North Course fountains get cleaned up with new
treatment method
T
he water quality of the Houston North
Course M-I SWACO campus center
fountain is now being improved and
maintained with new environmentally
friendly water management technique
known as Mixed Oxidant Solution (MOS).
“The M-I SWACO Environmental Leadership
and Awareness Committee (ELAC) came
up with the idea to use the MOS solution
in the North Course fountain as part of our
initiative to ‘green’ the campus,” said Kayli
Clements, senior environmental scientist and
ELAC member. “We thought it was the perfect
showcase for our own products.”
MOS is added to the water to control algae
and bacteria. It replaces dry pool chemicals
that were used in the past and only requires
five gallons a week to keep the fountain water
clean, clear and odor-free.
A small device, the size of a microwave
oven, generates
the MOS solu-
tion from table
salt and a small amount of electricity. M-I SWACO ES
Applied Research department is developing a larger
sized, mobile, containerized MOS generation system
that can be used to improve water quality for other oil
and gas applications such as frac flowback, iron reduc-
tion, water floods and hydrogen sulfide operations to
name a few.
Above, clockwise from left to right: Gabriela
Fragachan, left, and Natasha Shakib, right,
operate the pilot unit to produce the Mixed
Oxidant Solution. Top right: Dr. Jim Fajt
shows the salt used in the MOS process.
Bottom right: Louis Ibarra, left, and Dr. Fajt,
right, add MOS to the fountain water.
Left: Before treatment, and after.
Recognizing potential hazard earns Shawn Hann a Green Catch award
from ExxonMobil
Shawn Hann, M-I SWACO solids control technician aboard the Hibernia Platform
offshore Newfoundland, Canada, was in the process of injecting displacement fluid
from the well. At the same time, a permit was issued to erect scaffolding around the
injection unit. Realizing the hazards associated with working near high pressure
rotating equipment, he immediately postponed the scaffolding job until the well
displacement fluid was injected. He also requested that he be notified of permits in
his work area in the future.
He was recognized with a Behaviors Safe/Unsafe Green Catch for his commitment
to ensuring safe operations.
Shawn, left, receives his award from EMDC Supervisor Trainee Peter Brophy.

30 Momentum
T
here has been quite a lot of integration activ-
ity since the merger last year. As of Apr. 6, the
Schlumberger Chemical Regulatory Compliance
(CRC) and M-I SWACO Occupational Health and
Regulatory Compliance groups have been fully integrated
to form the new Global Chemical Regulatory Compliance
(GCRC) organization.
Some of the main goals for the integration project
include:
• Alignment to a single organization that combines
the compliance organizations in M-I SWACO and
Schlumberger to support all segments within the
Schlumberger company
• Maintain the segments-specific lab support for
M-I SWACO (Bergen, Norway) and expand it to
include Well Services
• Provide critical mass to the function
• Maintain presence and increase effectiveness with
industry and regulatory groups
“I am fully supportive of the new organization and see
this as a very positive direction for the future of the
GCRC group,” said Brian Hunter, VP QHSE M-I SWACO.
“By consolidating the groups, we now have the exper-
tise, resources and structure required to support the
Schlumberger legacy and merged organization. With the
new GCRC organization, we now have a greater resource
and can implement the best-of-the-best to build a
best-in-class capability. We can also benefit from a
consistent approach to chemical regulatory compliance
to our customers. In addition to the enhanced functional
Global Chemical Regulatory Compliance Integration UpdateQHSE
capabilities of these synergies, I expect to see significant
cost savings from the merging of these resources.”
The GCRC group will be managed by Global Chemical
Regulatory Compliance Manager Joanne Galvan. GCRC
will report to Shannon Poskevich Archer, Global
Regulatory Compliance (GRC) manager at Schlumberger
and to HSE management under Brian Hunter, VP QHSE
M-I SWACO and Graeme Anthony, Global WS HSE man-
ager at Schlumberger.
“There are huge benefits of partnership with this
integration and by working together we are able to
achieve synergistic benefits,” said Joanne Galvan.“By
combining our groups and expertise we will have a bigger
impact.”
With the consolidated GCRC group, the main items
supported include:
• Product development—new/existing product review
• Records/documentation/labeling
• Chemical registration/notifications
• North Sea environmental testing (Bergen, Norway lab)
• Global chemical disclosure requirements
• Occupational health program
• Dangerous goods program and training
• Operations/customers
“The support that GCRC can bring to Well Services
operations is extremely important,” Anthony said.“While
in the past the individual aspects of this support may
have been available to us, it was not always clear what
exactly was available or how we accessed the information
that we required. With the new organiza-
tion, this entire process will be highly
visible, streamlined and accessible.
“This is a sensitive matter for our
segment. We need to continually develop
new products to ensure we maintain our
lead in technology, but we need to do so
in a manner that is understood and
accepted by today’s ever-growing public
scrutiny and also be mindful of our
responsibility to the environment.”
GCRC takes a very proactive approach
in this process to ensure that products
being developed are consistent with our
overall goals and objectives and can
intervene at a very early stage in the
process to ensure effectiveness and
efficiency. In addition, their understand-
ing of the legislation in most countries
and the requirements set out by these
Continued on page 31

QHSE 31
countries as to the process of having new products approved
for use will greatly improve our ability to ensure we will
minimize delays in this process as new products become
available.
“I strongly believe that Well Services will see a very
positive benefit from the integration of this new team.
Please take the time to understand what they can do for
you; and of course, they are there to support the field, so let’s
use them,” said Anthony.
Some of the main initiatives that the GCRC group
will focus on in 2011 include: MSDS integra-
tion, Documentation, REACH, Regulatory
Impact and Expansion of programs in
Schlumberger. GCRC will be working
towards alignment of the MSDS software
globally, standardizing documentation such
as MSDSs and labels to ensure consistency
within GCRC as well as centralized manage-
ment of documentation. This eliminates
delays and duplication of effort with having
information at your fingertips.
GCRC will also focus on developing the
European Regulatory REACH compliance
program for Schlumberger including full
integration in the supply chain to control
compliance. The group will also be working
on integration of the REACH programs and
optimizing a strategy for registration and
cost savings in the coming years. GCRC has
a strong initiative to proactively monitor
and implement regulations affecting SLB
globally and the team will play a valuable
role to achieve this.
“Balancing the realities of operations and
manufacturing with that of regulatory
compliance is an ongoing challenge for
Schlumberger,” Archer said.“From a global
regulatory compliance perspective, histori-
cally chemicals may not have been as
high-profile as radiation compliance, but
this is changing at a rapid pace.”
The GCRC group will be critical to the
success of the Schlumberger chemical
compliance program. The integrated group
brings expertise together and draws upon
the experience of both Schlumberger and
M-I SWACO. This experience, combined
with the strong compliance program
within the company and the identified
goals and initiatives for the group, will
bring benefits to Schlumberger, ensuring
our continued compliance with the
stringent chemical regulations.
“These initiatives address existing and
Continued from page 30
potential compliance hotspots, demonstrate the proactive
leadership Schlumberger expects of its functions, managers
and employees,” Archer said.“In this ever-changing regula-
tory environment, I am pleased to work with such a dedi-
cated and professional group of employees in our combined
endeavor to continue to build a chemical compliance
program that optimizes business opportunities while
minimizing the risk of non-compliance for Schlumberger.”
More information can be found on the CRC hub at http://
slb-chemicals.sugar-land.oilfield.slb.com/index.cfm

32 Momentum
QHSE
Information Security—Top 12
SIPAT or Accident Prevention Week in Brazil focused on
working safety practices
Information security is vital to the success of our company, especially as many of our employees travel from
their primary offices to rig and field locations around the world. Ensuring that those outside the company can-
not gain unauthorized access to our data means we do not have to worry about seeing our hard work credited
to someone else. And securing our information begins with each person. So remember to use the Top 12 in your
daily activities to help protect your valuable IT assets.
Top 12
Accident Prevention Week (from the
Portuguese SIPAT – Semana Interna de
Prevenção de Acidente) took place from
May 17–19 in the Botafogo office of Rio
de Janeiro, Brazil. There were innumer-
ous activities offered to the employees,
e.g., lectures on life quality and various
health topics such as blood pressure,
obesity, posture and gymnastics. All the
participants received gifts related to
the event.
“We promoted an internal election
to choose a name for the mascot of the
campaign,” said Marcelo Amaral, opera-
tions manager in Brazil.“The winning
name was ‘SIPATICO’.”
The employee who suggested the
elected name also won a special gift.
Throughout the event, two very healthy
breakfasts were offered to motivate a better integration of the team. To close the event, everybody had the
chance to assist the play called “Secretary.”
From left to right: Ivson Passos, Jacileide Serafim, André Lima, Michelly Pereira,
Cecilia Gurgel, Carla Salomão, Gabriela Martins, Alessandra Coutinho, Marcos
Duarte, Luciana Gonçalves.
1. Protect your computer from theft at
all times
2. Classify and handle client and SLB
data properly
3. Protect your password and other access
credentials
4. Use both a startup and screensaver
password
5. Ensure Antivirus and patches are current
6. Ensure your critical data is being backed up
7. Use only approved and licensed software
8. Password protect or limit access to
file shares
9. Limit non-business use of SLB email address
10. Limit personal SINet use per User Standard
11. Properly store and dispose of removable
media
12. Report IT Security risks and incidents
via QUEST

QHSE 33
The Quality Hub e-collaboration site.
Quality Reporting: beginning to improve the Quality of our
products and services
By Alan McLean, VP Quality
A
s M-I SWACO strives
to lead the industry
and outpace the
competition, it is critical that
we establish quality metrics
for our services and products
that will result in improved
quality delivery to our
customers. In 2011, we will
establish Quality metrics for
Service and Product Quality
by reporting and classifying
severity, and identifying the
cost or red money of quality
failures. By determining the
baseline for quality perfor-
mance, we can then work to
improve our quality both in
products and services.
Schlumberger began its journey to improve quality and
work towards Excellence in Execution over three years ago,
and we will leverage their tools and processes to begin
our journey to report and improve quality.
The Schlumberger QHSE Standard S002 (SQ and PQ
Incident Reporting and Management Standard) defines
how to report and classify quality incidents. Like other
Schlumberger business segments, we have created an
SQ PQ Reporting Guideline for the standard that guides
quality reporting for M-I SWACO.
We will use Quest, which was rolled out Apr. 1 for
M-I SWACO use, to report client-facing quality incidents
and M-I SwaCARE to report internal or nonclient facing
product quality incidents. M-I SWACO has also adopted
the Schlumberger Q-Stop (Quality stop) and Excellence
in Execution initiatives.
The Quality Reporting System was formally rolled
out in May and every M-I SWACO employee now has
the ability and the responsibility to recognize and
report Quality failures. The Q-Stop system allows any
employee to stop poor quality work whenever and
wherever they see it.
To help employees learn and use the Quality Reporting
System, we have created a Quality Hub e-collaboration site
on the M-I SWACO intranet. It is available to all employees at
http://qhse.web.miswaco.com/QReporting/default.aspx.
Identifying and eliminating service and product quality
failures is critical to our success. Establishing a “No Blame
Quality Culture” that strives to do the job right the first time,
every time is critical to Excellence in Execution.
Taking on the newly created roll of Vice President of
Quality, I will lead quality improvement initiatives and
manage the quality processes for M-I SWACO. In addition,
Quality Subject Matter Experts
(QSME) positions have been cre-
ated within each business line:
Drilling Solutions, Environmental
Solutions, Well Bore Productivity,
Pressure Control, Production Testing
(North America) and Production
Technologies.
The QSMEs will continue report-
ing directly to their current manager
and will now report functionally to
me. The QSMEs in each of the busi-
nesses segments will be responsible
for rolling up the quality statistics for
each business, support operations in
reporting quality incidents, partici-
pate in quality incident investiga-
tions when required, identify and
initiate Continuous Improvement
events when needed and help operations create standard
operating procedures or processes to ensure quality deliv-
ery. Quality support resources have also been identified
within the RE and HSE Organization that will assist and
support the quality function within the company.
While M-I SWACO has always prided itself on providing
the highest levels of customer service and product quality,
it is an area that we must continue to examine and strive to
improve so that we will always be the first company that our
customers think of when they think of Quality.
Every M-I SWACO
employee now has
the ability and the
responsibility to
recognize and report
Quality failures.
The Q-Stop system
allows any employee
to stop poor quality
work whenever and
wherever they see it.

34 Momentum
QHSE
O
n Apr. 1, M-I SWACO successfully rolled out QUEST
to our population. This transition was a huge
benefit for the M-I SWACO population, and will
now enable us to report our QHSE data in the same way
data is being reported by Schlumberger. QUEST has also
provided us with additional functionality and reporting
capabilities that far exceed our previous IMPACT system.
What is QUEST?
QUEST was developed to meet the strong need for a
common QHSE data capture and reporting tool. Prior to
the implementation of QUEST, there was a number of
different data capture systems being utilized within the
various business segments of Schlumberger. QUEST was
developed to remove the unstructured, duplicated
systems that existed between segments. QUEST is an
important and necessary business tool because:
• It acts as a central, easily accessible storage point for
key QHSE Management system records.
• It is used for statistical analysis of QHSE performance.
• It used for tracking QHSE data for legislative compli-
ance issues.
• It allows remote and/or local tracking and monitoring
of QHSE Management System implementation and
performance.
• It notifies employees of QHSE-related activities or
incidents that have occurred.
• It tracks the closure of Remedial Work Plans.
See Figure 1.
QUEST rollout successful
HOC Reporting
Over the past few years, HOC reporting
has increased significantly with over
200,000 being submitted and closed in
2010. Twenty percent of those were
issues where an individual intervened and the job was
physically stopped to ensure that risks were adequately
controlled before proceeding. In order to build on this
momentum, we have updated QUEST to include most of
the functionality of the Hazard Observation Card. The
paper copy HOC has also been updated and distributed.
Help with reporting using our new HOC can be found in
the document “Helpfile – Adding HOC to QUEST” on our
QHSE Pod, in the QUEST Files 2011, as seen in Figure 2.
User Training
Advanced user training was completed in March for an
estimated 250 designated QUEST Champions. The next
step was to ensure that all M-I SWACO users complete
basic QUEST training in order to ensure that everyone is
familiar with the system. The first action for M-I SWACO
users is to take the introductory training – M-I SWACO
IMPACT to QUEST Transition – which is available in the
Schlumberger training catalogue. As of May 31, 81% of the
M-I SWACO population had completed this training. Once
that training has been completed, all M-I SWACO users
with access to a company computer should take the
QUEST 1 training. This can also be found in the
Schlumberger training catalogue. Also as of May, 76% of
the M-I SWACO population required to complete this
Figure 1.
Continued on page 35

QHSE 35
Figure 2. - Helpfile – Adding HOC to QUEST.
training had done so. This is a great start to our training, but
we need to continue with our efforts to ensure that every-
one completes their required QUEST Training.
Need Assistance?
Please note that the “My QUEST Newsletter” is distributed
globally once a week via email. Please make sure you read
this in order to find helpful tips and the most recent FAQs
regarding QUEST.
If you have any questions or concerns regarding QUEST
or QUEST training, please contact your local QHSE repre-
sentative, or:
Misty Kahn mkahn@miswaco.slb.com
IMPACT/QUEST Administrator
Kenny Burns kburns@miswaco.slb.com
QHSE Training Manager
Continued from page 34
Safety milestone achieved at Koshanai TDU, Kazakhstan
On Mar. 1, Agip KCO reported that Koshanai Cuttings
Oily Water Treatment facility achieved an outstanding
milestone completing 1 million manhours or more than
1,500 days of operation without LTI. Agip KCO manage-
ment congratulated M-I SWACO for contribution to
this achievement with thanks for professionalism of
the team and support provided in all activities of
the operation.
“Achieving this commendable milestone has been
possible thanks to constant observation and compliance
to Company requirements and HSE awareness,” said the
Agip KCO Bulletin.
The M-I SWACO Koshanai Thermal Desorption Unit
(TDU) was put into operation in 2006 and provides
services of treatment of cuttings and oily water to sup-
port Agip KCO offshore drilling operations at the giant
Kashagan oil and gas field in the Caspian Sea.
The sign outside the Koshanai Thermal Desorption Unit showing the
number of days without an LTI.

36 Momentum
Tech Roll Call
The VSAT Team: Strategy + education = continued brand
recognition and business growth
By Bobby Farmer, Screen Sales Manager
R
ecently ConocoPhillips engineering executives
reached out to the M-I SWACO VSAT Team and asked
what role M-I SWACO might play in their new initia-
tive to gain optimization of their equipment, longevity of
screen life as well as train-
ing for rig personnel when
operating shale shakers and
handling of screens. The VSAT
Team was advised of 13 rigs in
South Texas that COP was tar-
geting. COP’s major concerns
were costs associated with
conditioning mud, screen life
and shaker maintenance best
practices.
The VSAT Team conducted
a team strategy meeting and
developed a plan that included
conducting a vibratory sys-
tems analysis and test on all 13
rigs. This type of testing consists
of inspecting the shakers and
removing screens to conduct an adequate inspection of
screen mounting surfaces and consumable parts. In addi-
tion, the use of a data acquisition unit, USB cable, acceler-
ometer and laptop was employed as one of the tools used in
such vibratory systems inspections. This portion of the test
will identify many numeric ranges of motion inclusive of
angle of inclination, phase angle, G-force and RPMs, etc.
When analysis and testing were completed on 10 of the
13 scheduled rigs, COP engineering executives contacted the
VSAT Team and asked us to build a presentation based on
our findings thus far. Present were superintendents from
COP, Nabors Industries Ltd., Trinidad Drilling Ltd., Precision
Drilling Corp. and HP Oil Field Service Inc. While the
presentation focused on shaker maintenance best practices
and the benefits of the use of composite frame screens, the
presentation sparked many valid concerns regarding dam-
aged consumable parts from the use of metal frame screens
as well as costs associated with reconditioning mud due to
solids bypass caused by damaged consumables and inad-
equate screens.
Upon completion of the 13 rigs, 400-plus pages of reports
were written identifying key and specific areas of concern,
plus hours of rig personnel training. COP contacted the VSAT
Team yet again asking that we present our total findings to
their engineering department. Present at this meeting were
12 COP engineers. Discussed were the common opportuni-
ties for improvement observed as well as the level of train-
ing provided to rig personnel
while out on location.
The strategy of the VSAT
Team was to develop and
build a relationship with COP,
to aggressively target aiding
COP in reaching their goals
of equipment optimization
while providing shale shaker
and screen technology educa-
tion, identifying opportuni-
ties to exploit our composite
screens and grow the busi-
ness. We have established
a rapport that goes beyond
the norm and recognize this
by the continuous correspon-
dences where COP shows that
they rely on us heavily even when dealing with competi-
tive shakers.
As of late, COP engineering executives have asked the
M-I SWACO VSAT Team to build a training binder that would
be shaker specific regarding best practices and asked for
pricing to conduct training.
In approximately seven weeks the VSAT Team was able
to generate significant income in screen sales, just shy of
their goal, which is merely a stepping stone to our target of
a minimum of 50-60% of the COP rigs in South Texas. The
forecast is approximately 16 by the end of the year. When
we achieve this goal we will recognize a minimum of nearly
half a million dollars revenue by the close of 2011.
If you have any interest in this project or wish to gain
more information regarding the VSAT Program, contact
Bobby Farmer, screen sales manager, at bfarmer@miswaco.
slb.com or Jeff Russo, VSAT team leader, at jrusso01@
miswaco.slb.com.
The VSAT Team meets to develop their ConocoPhillips plan.

Tech Roll Call 37
The 3D model of the ECUTEC plant.
The ECUTEC team in Barcelona are, from left to right: Hugo Bogliolo, Sergi Alegre,
Francisco Robustillo, Olga Escardibul, Angel Santana, Philip Barthelmess, Joe Roettle,
Eusebi Escardibul, Xavi Costa, Estefania Borras, Javier Peña, Albert Campmany.
ECUTEC Barcelona S.L. now business unit of M-I SWACO and
wins multimillion dollar contract
By Joe Roettle, ECUTEC Global Sales Manager, Barcelona, Spain
T
he system supplier ECUTEC Barcelona S.L., who was
a business unit of SWECO, is now directly a business
unit of the M-I SWACO Mineral Division under VP
Bob Bailey.
M-I SWACO bought ECUTEC in 2007 and made it a busi-
ness unit of SWECO due to the similar industrial business
area of the two companies. In the last two years, more and
more oilfield applications came up for ECUTEC (e.g., dry
production of WARP* fluids technology, bentonite quality
improvement, calcium carbonate coating, etc.) and so it
made more sense to incor-
porate ECUTEC directly
into the Minerals Division
of M-I SWACO.
ECUTEC also helps to
improve existing machine
designs and develops with
M-I SWACO new machines
for oilfield applications.
The whole ECUTEC team
is excited to be part of the
M-I SWACO Mineral
Division and is looking
forward to working with
M-I SWACO staff on future
projects.
In fact, the group is
proud to announce that
at the end of 2010, CE
Minerals, which is a
member of the Imerys Group, placed an order for a
complete grinding and classifying plant for the produc-
tion of Metakaolin worth several million dollars. This is
so far the biggest order ECUTEC has received and was
born out of a long relationship with Imerys. Imerys has
ordered ECUTEC equipment and systems since 2004,
which shows the confidence in ECUTEC technology and
know-how.
The final customer for the proppant produced at this
plant is Schlumberger and so the whole business stays
within the family.
The ECUTEC part of this plant consists of a
900 kW (1,200 HP) ball mill working together
with three big turbo-classifier systems. All
peripheral equipment, ductwork and convey-
ing equipment is also part of the ECUTEC
design work.
The project department is in the process of
designing the whole grinding and classifying
part as a 3D model to be able to consider all
details for installation and operation. With
the 3D technology, the project team is able
to walk through the entire plant to analyze
and find out if there is any interference with
walkways, maintenance access or any other
areas that could create trouble to the process.
The target for the final commissioning
of this project is late summer 2011. More
updates to this project will come with the
next issue of Momentum.
With the 3D
technology, the
project team is able
to walk through the
entire plant to analyze
and find out if there
is any interference
with walkways,
maintenance access
or any other areas
that could create
trouble to the process.

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