FLOPAAMTM
`Polymers for Enhanced Oil Recovery
`from design to injection
`
`SNF
`
`EXHIBIT
`
`SNF Holding Company et al v BASF Corporation,
`
`Page 1 of 8
`IPR2015-00600
`
`

`
`Polymers for Enhanced Oil Recovery
`
`injected water have been employed for many years
`the mobility of
`polymers to control
`Viscosifying
`(EOR) applications. Polymer flooding,
`to improve volumetric sweep
`in Enhanced Oil Recovery
`reduce channelling
`has aided many operators
`and breakthrough,
`to increase oil
`reco-
`efficiency,
`the cost per barrel of oil
`very and lower
`recovered. The same polymers are used with surfactants
`and alkali agents for
`increasing the sweep efficiency
`these enhanced recovery floods.
`of
`
`can yield a significant increase in oil
`Polymer flooding
`recovery compared to conventional water
`involves mixing and injecting polymer over an
`flooding techniques. A typical polymer
`flood project
`time until about 1/3-1/2 of
`reservoir pore volume has been injected.
`extended
`period of
`the
`This polymer
`by continued
`then followed
`"slug"
`long term water
`flooding to drive the polymer
`is
`toward the production wells. Polymer is
`injected continuously
`slug and the oil bank in front of
`it
`a period of years
`to reach the desired pore volume.
`over
`
`2 SNFM
`
`Page 2 of 8
`
`

`
`THE LARGEST
`INDUSTRIAL BASE
`
`SNFis the world's
`soluble acrylamide-based
`of water
`leading producer
`polymers. SNF has, by far,
`the industry with 40% of
`the largest production capacity of
`the
`world capacity in polymer and 50% in monomer. SNF has invested more than 800 MUSD
`the art manufacturing units worldwide. SNF has the
`the past 10 years to build state of
`over
`largest and most effective manufacturing capacity in
`the industry.
`4 major manufacturing sites
`in France,
`are
`and these
`the USA, China and Korea,
`SNF has
`around the globe enables regional
`complemented by
`balanced
`production
`14 satellite
`sites. This
`arbitrage based on local
`raw material and transportation
`costs, brings robustness
`to foreign exchange
`that customers
`always benefit
`from best market conditions.
`and ensures
`variations
`SNF sales have reached 850 MUSD in 2005,
`in progression
`17 % over
`the previous
`of
`year.
`
`Nafta
`Latin America
`
`Europe
`
`Africa
`
`Russia
`
`India
`
`China
`
`Asia
`
`Australia
`
`License
`Production site
`O Sales Office
`e Forecasted
`production site
`
`ISNF is using a new and unique acrylamide manufacturing process based on
`enzyme technologyand bringing a 7%-8% cost advantageover competition
`
`SNF Consolidated Sales
`1 000 metric tonnes
`(active)
`
`in
`
`Water Soluble Polymer Sales Worldwide
`
`Acrylamide Monomer Production Worldwide
`250
`
`_
`
`250
`
`200
`
`150
`
`100
`
`M EOR
`
`Water
`
`traitement
`
`and
`
`other
`
`Application
`
`1000
`
`800
`
`soo
`
`400
`
`-
`
`-
`
`-
`
`200
`
`150
`
`100
`
`90
`
`91
`
`92
`
`93
`
`94
`
`95
`
`96
`
`91
`
`98
`
`99
`
`00
`
`01
`
`02
`
`03
`
`04
`
`05
`
`SNF
`
`Western Compagnies
`
`North Asian
`campanies
`
`Ichinese
`companies
`
`SNF
`
`Western Compagnies
`
`Chinese
`companies
`
`3
`
`Page 3 of 8
`
`

`
`30 YEARS
`EXPERIENCE
`IN EOR
`
`SNFhas
`30 years
`the
`and was one of
`(EOR)
`in Enhanced
`expenence
`Oil Recovery
`of
`in the USA with PUSHER and FLOPAAM. SNF is continuously
`maior
`innovators
`technolocy
`of
`thrs
`through close warang seationshtps with research teams of o:I
`improving Its EOR polymer
`tecnnology
`companies,
`oil un versilles. SNF has extensive expenence in EOR under
`a wide variety.
`institules,
`oil
`both onshore or offshore, with over 40 references
`reservoir conditions
`in 14 countries (see map).
`of
`
`[n
`
`a
`
`EOR polymers based on
`license to manufacture
`the early 1990's SNF sold Daqing Oil
`Field
`a polymer
`this contract SNF built
`production
`plant
`technology. Under
`an early version of
`its
`Daqing, China, which produces
`the field's needs,
`about 75 % of
`In addition, SNF is currently
`largest supplier of EOR polymer
`fields throughout China.
`to oil
`
`in
`
`the
`
`Over 40 references in 14 countries
`
`the oil, water-treatment and mining industries,
`a diversified market
`SNF has
`base in
`same technology and the same manufacturing facilities. Oil
`field customers
`from the large scale and technical breadth of other applications.
`
`using the
`benefit
`
`- 200
`
`-
`
`15G
`
`- 100
`
`50
`
`0
`
`of experience, SNF
`With about 30 years
`the largest experience in polymer flooding.
`has by far
`Through the acquisition of Dow and Pfizer assets,
`SNF has been one of the key actors Ën polymer
`lhe very beginning.
`flooding since
`
`1975
`
`1980
`
`1985
`
`1990
`
`1995
`
`2000
`
`2005
`
`Cumulated Sales of Polymer
`
`in EOR Applications
`
`e Existing and projected EOR applicatlans
`
`4
`
`Page 4 of 8
`
`

`
`HIGHLY SKILLED
`AND SPECIALISED
`RESEARCH
`
`promoting cross fertilization
`of know-how,
`enabling to
`the
`key monomers
`bring
`field applications.
`
`latest
`
`ki Ë 4 infestlylg 0 million USD
`annualIÿ In R&D with Research
`Centers in Europe, USA, India and
`China.
`
`-
`
`CH2-CH
`
`CH2¯
`
`=0
`
`=0
`
`m
`
`Na
`
`n
`
`(cid:127)
`
`The unique position
`of SNF comes from :
`a multi-applications R&D environment
`a strategic backward integration on
`fundamental discoveries
`directly
`to oil
`
`·
`
`the art application labs qualify every month dozens of new polymers with
`Our state of
`thanks to reliable polymerization processes
`enhanced performances in
`field operations,
`oil
`and innovative monomer research programs.
`
`Innovative monomers : based on a new enzymatic process, SNF produces over 509b of
`the
`the enzymatic monomer process has
`acrylamide monomer in the world. The development
`of
`in-house
`to copper-free high purity
`raw material. SNF has the strongest
`access
`royided
`mer design and production capacity with more than a hundred new proprietaiy vinylic,
`very wide range of chemistries such as hydrophobic,
`ánd acryloyl monomers with a
`comb, star, zwitterianic, sulfonated,
`etc.
`heat
`resistant,
`ë, rod-like, branched,
`
`large scale oriented, polymer producer.
`: SNF is
`Nort processes
`a highly skilled,
`industrialization programs of new
`SNF has extensive
`technology.
`reinvesting
`in
`n processes using macro-initiators, macro transfer agents, RAFT, ATRP, NMP poly-
`iques as well as micellar polymerization.
`
`-
`
`R&D PARTNERS
`UNIVERSITIES
`OIL INSTITUTES
`- U of Austin, Texas
`- Alberta Research
`- U of Denver, Colorado
`Council, Canada
`- RIPED, China
`U of New Mexico
`U of Pau, France
`IFP, France
`- SWPI, China
`U of Strasbourg, France
`- SURTEK, USA
`U of Ufa, Russia
`.
`U of Sichuan, Chma
`U of Sao Paulo, Brasil
`OIL COMPANIES
`- PVDSA
`- PETROBRAS-CENPEC
`-SHELL
`- PDO
`- CHEVRON-TEXACO
`- NORSK HYDRO
`- HUSKY OIL CY
`- ENCANA
`· CNRL
`
`-
`
`- TOTAL
`- EXXON
`-CNOOC
`- SINOPEC
`· PETROCHINA
`- ONGC
`- PETRONAS
`- MEDCO
`- CALTEX
`
`New polymers : SNF's polymers now reach extremely
`high molecular weights, HPAM up to 30 millions g/mol
`In addition to molecular weight, SNFs poly-
`and more.
`mer architecture and polymer solution formulations are
`all specific EOR requirements:
`wide and varied to fulfill
`crosa·linked, micro-structured,
`branched,
`linear,
`morphology and architecture controlled, star,
`comb,
`willow like, block,
`sulfonated, amphoteric, etc.
`terechelic,
`
`the art application labs : To develop the
`State of
`for each reservoir, SNF has a dedicated
`dght product
`application lab
`injection and
`state-of-the-art
`to mimic
`reservoir conditions. This enables SNF to fine tune poly-
`to provide optimized salt
`mer composition
`resistance,
`temperature stability,
`lowest
`shear
`injectivity,
`stability,
`particular
`adsorption,
`and highest
`for each
`viscosity,
`field.
`
`5
`
`Page 5 of 8
`
`

`
`A WIDE
`ENGINEERING
`EX PR IENCE
`E
`
`SNF has several on going projects in
`the USA,
`india.
`Canada, Brazil, Venezuela, Indonesia, Angola,
`
`Dnvenby higher all pnces and the desire to keep older fields producing,
`the market demand for
`EOR polymers is expected to grow rapidly. The demand for EOR polymers could soon be higher
`for water treatment Therefore reliable large
`than the total existing market
`scale supply of
`these
`polymers will become essential.
`
`ITo support the expected market growth SNF is committed
`
`to more than doubling its current production capacity
`
`the full
`oil compagnies with
`the capability to support
`SNF has
`design and construction of storage, dissolution and polymer injection
`station. SNF makes dissolution and injection equipement
`for EOR
`projects. Each injection unit is designed for
`the specific field condi-
`client These conditions
`include flowrate,
`tions defined
`by
`the
`injection wells, operating environment
`(offshore,
`pressure, numberof
`level of automation.
`onshore, desen,
`tropical, artic climate)
`
`injection operations may vary
`The quantity of polymer supplied for
`to more thañ 15,000 MT/yr, for actual
`from 60 MT/yr. at pilot sites
`field scale development The FLOOUIP"range of equipment varies
`from skid mounted units to indoor mounted large scale equipment
`
`SNF's engineering experience also includes the licensing, design,
`construction
`the Daqing,
`China polymer
`commissioning
`and
`of
`production plant
`in 1996. SNF has also built
`its own polymer plant
`in Taixing, China to serve the Chinese water
`treatment and EOR
`markets.
`
`6
`
`Page 6 of 8
`
`

`
`A FULL SET OF EXPERTISE
`FROM DESIGN TO INJECTION
`
`Polymer
`flooding projects are more and more challenging and require a
`expertise from chemistry
`to system engineering.
`
`full set of
`
`integrated
`
`a wide variety of questions need to be answered :
`
`a successful project,
`To design
`- Selection of monomer
`- Polymer structure
`- Polymer dissolution
`Injection system
`- Water pre-treatment
`chain
`- Supply
`
`-
`
`SNF can provide oi!
`companies with the full set of
`expertise supporting their
`EOR needs·
`
`->
`
`->
`
`9 Reservoir Engineering
`integration
`-> Monomer
`Polymer Selection Design
`4 Polymer Manufacturing
`Polymer Storage and Dissolution Equipment
`4 1njection Equipment
`à Engineering and System Design
`Training, Start-Up and Commissioning
`
`->
`
`Page 7 of 8
`
`

`
`I
`
`SNF SAS
`ZAC de Milieux
`42163 Andrézieux Cedex - FRANCE
`: + 33 (0)4 77 36 86 00
`Tel
`Fax : + 33 (0}4 77 36 86 96
`oil@snf.fr
`
`SNF RUSSIE (000 SNF SA)
`Ulitsa Trubnaya 21/11
`127051 Moscow - RUSSLA
`: + 7 095 790 7680
`Tel
`Fax : + 7 095 790 7681
`oil@snf.fr
`
`SNF INC
`PO Box 250,
`1 Chernical Plant
`road
`Riceboro, Georgia 31323
`UNITED STATES
`: + 1 912 884 3366
`Tel
`Fax : + 1 912 884 5031
`oil@snf.fr
`
`SNF DO BRASIL LTDA
`Estrada Bonsucesso
`Itaquaquecetuba,
`80 V Maria de Lourdes
`Guarulhos SP 07251-280 - BRASIL
`: + 55 11 64 80 21
`Tel
`22
`Fax : + 55 11 64 80 31 12
`oil@snf.fr
`
`BElJING ZHIJIE FLOCCULANT,
`Beijing Office
`Roorn 1207 A-B, Diyang Tower n°H2
`Dongsanhuanbeilu, Chaoyung District Beijing
`100027
`CHINA
`: + 86 10 84 53 62 01-5
`Tel
`Fax : + 86 10 84 53 62 06
`oil@snf.fr
`
`SNF FLOERGER°
`
`The information
`
`in
`
`this brochure
`
`is prevded in good
`
`faith.
`
`To our knowledge
`
`it
`
`reflects1he
`
`truth.
`
`I
`
`I
`
`Page 8 of 8