February 20 , 2003 - The installation of the world's first triple zone/gravel pack subsea SmartWell^® has been successfully completed by oil and gas services company WellDynamics for Nigerian Petroleum Development Company Limited (NPDC) and Agip Energy & Natural Resources Ltd (AENR).

Deployed in NPDC's Okono field in block OML119 offshore Nigeria , which is being developed under a Service Contract with AENR as the Operator/Contractor, SCRAMS^® (Surface Controlled Reservoir Analysis and Management System) will enable the operator to remotely control and monitor hydrocarbon production from each individual well zone. This is achieved through an electro-hydraulic umbilical connected to a surface control system located on the field's FPSO (Floating, Production, Storage and Offloading vessel).

By analysing the data received from downhole sensors and by choking or isolating selected zones in the reservoir, the well can now be actively controlled to produce with optimized performance, improving production in the early stages and increasing early return of revenue.

In addition, as the manipulation of individual chokes is carried out remotely, the need for well intervention can be eliminated, resulting in significant savings in terms of both operating costs and lost production.

WellDynamics encountered several technical challenges during the project due its overall complexity, geometric constraints and deployment of the SmartWell completion within the multi zone gravel pack equipment. Combining its wealth of previous experience and unique product offering the company produced a tailored solution to counter these tasks.

To minimize operational risks and allow retrieval from the well, the SmartWell Completion was activated after the completion of gravel pack operations. In addition, by composing the SmartWell Completion with different types of flow control devices and control networks WellDynamics optimized its application.

Mike Fleming, Chief Executive Officer, WellDynamics, said: "The use of new and innovative technologies is increasing as major oil companies replace produced reserves with reserves from smaller, more difficult assets. The resultant efficiency gains from this technology affect new developments and can extend the life of more mature fields.

"Through intelligent completion systems they can significantly improve reservoir performance, thereby positively transforming the economics of their fields."

Dr Edmund Olu Ayoola, Managing Director of Nigerian Petroleum Development Company Limited (NPDC) said: "With this technology, more reservoirs, which hitherto could have been left un-produced behind sleeves until full drainage of first selections, can now be produced from day one of completion alongside others, and significantly reduce pay-out times, while improving overall economics of projects.

It ensures every 'small' reservoir found along the way positively impacts on the fortunes of the Operator."

Agip Energy, by introducing such latest technologies to the project has delivered very significant gains in time, costs and value added, thus validating its position and choice as the most competent Service Contractor.

SCRAMS offers the highest level of reservoir management of the intelligent completion systems offered by WellDynamics, which include Digital Hydraulics™ and Direct Hydraulics™.

Ends

Issued on behalf of WellDynamics by Weber Shandwick Worldwide. For further information please contact Emma Lane on +44 (0) 1224 806600 or email: emlane@webershandwick.com

Notes to Editors

WellDynamics is the world’s market leader in intelligent completion technology. Formed as a joint venture between Halliburton Energy Services and Shell Technology Ventures, WellDynamics uses advanced intelligent well technology to deliver the world’s premier solutions for surface controlled reservoir monitoring and management of complex wells.

As well as its operations in Houston and Aberdeen, WellDynamics has a manufacturing plant in Livingston Scotland, and sales teams and operations in Norway, Brazil, Italy, Dubai, Saudi Arabia, Malaysia, Brunei and Australia.

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