The Oil Industry

The oil industry exists for exploration, production,

refining, and distribution of crude oil, gas and their
refined products

Baker Hughes, as a corporation, serves all

phases
 Who are we?

Centrilift is a division of Baker Hughes Incorporated

Baker Hughes, Inc. is the 3rd largest oilfield service

company in the world with a market capitalization of
$9.3 Billion

Approximately 27000 employees with BHI

Approximately 2500 people with Centrilift

 BHI Oilfield Operations Divisions
Centrilift Artificial Lift Systems

Hughes Christensen Drill Bits

Baker Oil Tools Completion Equipment (Packers, Safety Valves, etc)

Baker Hughes Inteq Directional Drilling Equipment

Baker Hughes Drilling Fluids

Baker Atlas Logging

Baker Petrolite Production Chemicals

 Baker Hughes Keys to Success

People contributing at their full potential

Everybody can make a difference

Delivering unmatched value to our Customers

Being cost efficient in everything we do

Employing our resources effectively

Baker Hughes Core Values

Integrity

Teamwork

Performance

Learning
ESP Basics ... the oil well
Its a very sophisticated, strategically
located hole in the earth.
After drilling the following operations are
usually performed:

- Logging - finding which geological strata, if any,

will produce oil.
- Casing - lining the hole with pipe.
- Cementing - fastening the casing to the hole.
- Perforating - putting holes in the casing to allow
the fluid to pass into the casing.
- Fracturing - opening up the strata to allow more
oil to flow into the perforations.
 ESP Basics... oil production

During the life of an oil well, production will likely be

accomplished by two different methods
They are:
1. Natural lift or Free Flow
2. Artificial lift
ESPs are a form of artificial lift
Oil companies would prefer NOT to use artificial lift for
as long as possible in the life of an oil well
 ESP Basics... natural lift

An oil well free flows when the

natural reservoir pressure is great
enough to lift the column of fluid
from its origin to the surface
Example -- Saudi Arabia

This results in the cheapest lifting

cost
ESP Basics... artificial lift types

Gas Lift

Rod Pumps

Submersible Pumps
 Gas Lift

Uses a surface compressor to boost the natural reservoir

pressure, lifting the fluid to the surface.

Pros
- It is a natural lift enhancement.
- Requires few downhole components.
Cons
- Requires extensive surface equipment.
- It is not as effective when wells produce larger amounts of water.
 Rod pumps

Rod Pumps (AKA Nodding

Donkeys) use sucker rods to
move a plunger up and down
inside the rod string

The plunger applies suction

to the end of the sucker rod
string which moves the fluid
through the rods & downhole
tubing to the surface.
 Rod pumps
Pros
- Very efficient for low flow wells, up to about 300 Barrels per day.
- The most popular form of artificial lift (100s of thousands
throughout the world).
Cons
- Surface leaks are common.
- Up and down motion results in rod and tubing wear.
- It is extremely old technology.
- Theyre ugly.
 Submersible Pumps

The 2 main types of submersible pumps used in the oil

industry are

Progressing Cavity Pumps (PCPs)

Electrical Submersible Pumps (ESPs)

 What do we do?

Centrilift manufactures and supplies specialist

Electrical Submersible Pumping (ESP) &
Progressing Cavity Pumping (PCP) systems
and services to the oil & water production
industries
 Who are our Customers?

Major & Independent Oil Companies, e.g.

Chevron/Texaco
Shell
Agip
Talisman
BP

Other Industries
Mining
Geothermal
Water
 Who are our Competitors?

Corporate competitors include

Schlumberger #1 - Market Cap = $44 B ($20 B oilfield)

Halliburton Inc #2 - Market Cap = $18 B
Baker Hughes #3 Market Cap = $9.3 B
Weatherford International #4 - Market Cap = $5.2 B
BJ Services #5 - Market Cap = $5 B

Old Figures
 Why is our company called Centrilift ?

Because we make Centrifugal pumping systems that lift fluid!

t ra l-Lift ? ? Sent
Ce n ra l i
ft?

a li ft?
r
C ent

Sentrylift?
Centrilift History

Significant Events

The submersible motor was invented by Aramis Arutunof

in Russia in 1911.
Phillips Petroleum sponsored Mr. Arutunof in relocating
his company REDA from Germany to Bartlesville, OK in
the 1940s.
Centrilift was started by ex-Reda employees Joe Carle,
Jerry Boutwell, & Clint Boyd in the late 1950s. Carle
started ODI in the 1960s.
Centrilift History

The company was owned by Byron Jackson, Borg Warner,

and eventually Hughes Tool who moved the plant to
Claremore in 1980.
In 1987 Baker Intl bought Hughes Tool Co, hence Baker
Hughes.
A spin off group started ESP Inc.
ODI was purchased by BHI from Franklin Electric in 1997
Centrilift Headquarters
Charles Wolley - President
Centrilift Headquarters

Claremore Oklahoma
 Cable Plant

Claremore Oklahoma
Educational Development Centre

Claremore Oklahoma
 PCP & Hpump Plant

Tulsa Oklahoma
ESPs; wheres the business?
 ESPs; wheres the business?
North America

Alaska: Anchorage & North Slope (Milne Point)

Canada: Leduc & Calgary Alberta

Mid-Continent: Tulsa & Lindsay, OK, Houston &

Marshall, TX, Laurel, MS

Rocky Mountains: Casper& Cody, WY, Denver &

Rangely, CO

Southwest: Midland & Abilene, TX, Hobbs, NM

West Coast: Huntington Beach, Bakersfield, & Ventura,

CA, Winnemucca, NV
 ESPs; wheres the business?

Latin America

Argentina: Mendoza, Buenos Aires

Brazil: Rio de Janeiro

Colombia: Bogota, Cano Limon

Ecuador: Quito

Mexico: Cuidad Del Carmen

Peru: Lima, Iquitos

Venezuela: Maracaibo, El Tigre, Puerto

La Cruz
 ESPs; wheres the business?

Europe / Africa

Scotland: Aberdeen Congo: Pointe Noire

France: Pau Gabon: Libreville

Germany: Vechta Nigeria: Lagos

The Netherlands: Beverwijk

Norway: Stavanger

Russia: Moscow
 ESPs; wheres the business?
Middle East

Egypt: Cairo, Alexandria

Oman: Muscat, Nimr

Saudi Arabia: Al-Khobar

Kuwait: Fahaheel

Syria: Derrezzor

UAE: Abu Dhabi, Dubai

Qatar: Doha
 ESPs; wheres the business?

Asia Pacific

Australia: Perth

Indonesia: Jakarta, Batam, Pekanbaru,

Duri

China: Shekou & Beijing

Thailand: Bangkok
 ESPs; wheres the business?
Centrilift Customer Locations

Besides the 30 countries in which Centrilift /

BHI has facilities, there are rotators who work
in customer locations around the world.

On any given day, Centrilift does business in the following countries ...
Angola, Algeria, Congo, Ethiopia, Gabon, Guatemala, Italy, Japan,
Lithuania, Nigeria, Oman, Papua New Guinea, Poland, Romania,
Trinidad, Tunisia, Turkey, & Yemen.
Any Questions?
 Global Field Service

In 2003 GFS Engineers worked in 36 different countries