BlueRodsTM Premium Sucker Rods

Ezequiel Fernndez Technical Sales Sucker Rods

Tenaris Sucker Rods: Highlights

Complete range of sucker rods and related accessories
Proprietary steel grades

Fully integrated manufacturer: steel casting, rolling & finishing Innovative product development
BlueRodTM HolloRodTM Series Steel Casting Hot Rolling Finishing

www.tenaris.com

Tenaris Sucker Rods: Our Growth

Campina, Romania

Veracruz, Mexico

Pindamonhangaba, Brazil
Villa Mercedes, Argentina
3 www.tenaris.com

Sucker Rod Stocking Points Sucker Rods Production Facilities

Tenaris Sucker Rods: Our Growth

Sucker rods production capacity has expanded, reaching 71 million feet.
71 60 41

13 23

13
11

[ MM Feet ]

6
29

10 26

10

10
Romania Mexico Brazil Argentina

9
13

13 2003
4 www.tenaris.com

20 2005

26
2012

26
2013

2011

Tenaris Sucker Rods: Product Line

Wide range of products
Beam Pumping
Industry standards API Rods High Strength Rods

Progressive Cavity Pumping

Industry standards API Rods High Strength Rods X-Torque

Tenaris proprietary designs BlueRodTM D Alloy BlueRodTM KD Steel

Tenaris proprietary designs HolloRodTM Series BlueRodTM D Alloy BlueRodTM KD Steel

www.tenaris.com

BlueRodTM: Main features

Tapered trapezium thread profile. Diametrical interference with flank-to-flank contact. Improved stress distribution along the thread profile.

Higher load capacity due to reduced pin make up pretension.

www.tenaris.com

BlueRodTM: Main features

API Thread BlueRodTM Thread

API Thread Principal Stress

BlueRodTM Principal Stress

www.tenaris.com

BlueRodTM: Field experience

More than 100 wells installed

Over 3.5 years of working times

Up to 15 million cycles

www.tenaris.com

New experiences in North America: - 15 wells installed - 10 in USA

BlueRodTM: Field experience

Applications
Handle High Loads
% Test Wells Pumping unit Depth ft Pump 38%
912-365-168 to 1280-427-192
2276 to 9679 1.75 to 2.25"

Main Goals
Reduce Interventions
28%
912-365-168 to 1280-427-192 5905 to 9186 1.75 to 2.75"

Increase Production
12%
912-365-168 to 1280-427-192 2700 to 6899 2.25 to 2.75" 503 to 1132 6.7 to 9.3 100% to 170%

Handle high torque

22%
na
2474 to 4250 NTZ 400-150-ST62 or similar

Production (BPD)
SPM / RPM Goodman API D Torque (lb*ft) Failures/year
9 www.tenaris.com (sf 0.9)

264 to 912
9.6 to 8.5 95% to 212%

270 to 993
3.5 to 9.2 75% to 180%

843 to 1793
150 to 380

na
463 to 900

na 2 to 0

na 3 to 0

na 2 to 0.7

na

Field experience in North America

Location: Regina, Canada Product: BlueRodTM D(4142) Steel

Location: North Dakota, United States Product: BlueRodTM KD(4320) Steel Customer: Hess Corporation

10

www.tenaris.com

BlueRodTM KD(4320) Steel Hess Corporation

United States
Well characteristics
Pumping unit: Rotaflex 1100 Product: Grade KD BlueRodTM, 76 Taper.
11

BPD 437 SPM 3.6

Rod Loading: 212%(SF 0.9) API Grade D Pump bore: 2.25 Pump depth: 9,049 ft (m) Flow rate: 437 bpd (m3/d) Strokes per minute: 3.6 SPM Stroke length: 306

9,049 ft

Bore 2.25

www.tenaris.com

BlueRodTM KD(4320) Steel Hess Corporation

Intervention History
Date 18-Aug-06 8-Feb-07 12-Jul-07 3-Mar-08 6-Aug-08 29-Oct-09 8-Sep-10 17-Jun-11 11-Aug-11

Running Time
174 154 235 156 449 314 282 55

Cause unknown 7/8 pin 1" pin unknown pump pump 7/8 pin @ 5150 7/8 pin @ 4025 7/8 pin @ 3900

9 ALS failures in 5 years. 56% connection failures. Average time between failures 270 days. Rod-Tubing wear. Presence of H2S.

12

www.tenaris.com

BlueRodTM KD(4320) Steel Hess Corporation

Performance Comparison
API EL Sucker Rods Performance Premium Connection Rods Expectation

Analyzed Period
Rods Failures Rod Failure Rate Other Interventions

5.0 years (Aug 2006 March 2012)

5 Rod failures 1 failures per year 3 (Pump / others)

New installation March 2012

3 (Pump / others)

Maximum Flow Rate

Average Sucker Rod Life Observations

437 BPD 270 days

pump 2.25

437 BPD
Over 270 days to set up a new record. Up to 10MM = 1080 days. pump 2.25

13

www.tenaris.com

BlueRodTM D(4142) Steel

Canada
Well characteristics
Pumping unit: C456-256-144 Product: Grade D BlueRodTM, 76 Taper.
14

BPD 850 SPM 7.4

Rod Loading: 130%(SF 0.9) API Grade D Pump bore: 2.75 Pump depth: 3,350 ft (1,021 m) Flow rate: 800 bpd (m3/d) Strokes per minute: 7.4 SPM Stroke length: 144

3,350 ft

Bore 2.75

www.tenaris.com

BlueRodTM D(4142) Steel

15

www.tenaris.com

BlueRodTM D(4142) Steel

16

www.tenaris.com

BlueRodTM D(4142) Steel

Performance Comparison
API HS Sucker Rod Analyzed Period Interventions Rod Failure Rate Other interventions Maximum Flow Rate Average Sucker Rod Life Observations 1 year (Dec 2008 Dec 2009) 2 connection failures 2 per year Regular maintenance 600 BPD 6 months Frequent connection failures Premium Connection Rods 2.6 years (Dec 2009 May 2012) 0 rod failures 0 failure per year Regular maintenance 780 BPD 32 months Over 10 MM cycles without failures

17

www.tenaris.com

Conclusions
Our customers have successfully tested the BlueRod TM in more than 100 wells.

BlueRodTM has proven to be reliable in the most demanding applications, working under high loads or torque, reducing failure rates, down time and increasing production.
Our understanding of the market and customers needs led us to develop the BlueRodTM KD which is actually being tested at 212% of a regular grade D rod. By being close to our end-users, Tenaris consolidates its presence in North America and the rest of the world.

BlueRodTM premium sucker rods have demonstrated outstanding performance where rod pumping was impossible before.
18 www.tenaris.com