August 8, 2012

Alcoa Aluminum Alloy Drill Pipe Helps Brunei Shell Petroleum Navigate Complex Offshore Drilling Well


SERIA, Brunei & NEW YORK -- Alcoa (NYSE:AA) announced that its Alcoa Oil & Gas business has successfully deployed 1800 meters (5,905 feet) of Aluminum Alloy Drill Pipe (AADP®) in the Iron Duke Well C offshore Seria, Brunei. Alcoa partnered with Brunei Shell Petroleum Co. Sdn. Bhd. (BSP), the largest oil and gas producer in Brunei, and AMRTUR Corp., Alcoa's service partner, on the project.

The well is considered among the most complex and deviated in the BSP system, with three "S" curves and a long horizontal section of approximately 5,000 meters, or about 3 miles long. It was successfully drilled to a total depth of 7,485 meters (4.6 miles) in about 60 meters (197 feet) of water.

"The Alcoa Aluminum Alloy Drill Pipe, which is produced in 30-foot (9.1-meter) aluminum tube sections and joined together using standard steel connections, is about 40 percent lighter than all steel pipes and has the potential to significantly reduce drill string hook load and related drilling torque and drag," said Jay Grissom, Alcoa Oil & Gas Marketing Director.

Alcoa’s innovative and proprietary drill pipe starts with a tapered, high strength, aluminum alloy tube. This tube is coupled with a steel tool joint using a proprietary thermal connection technology that allows steel tool joints to be attached to the aluminum pipe body. Alcoa produces the aluminum tubes at its Lafayette, Indiana, facility and assembles the finished drill pipe at its Oil & Gas facility in Houston, Texas.

“We are constantly challenged to push the drilling envelope further to maximize recovery and minimize cost,” said Shayne Dustin, BSP’s Senior Well Engineer. “Light alloy pipe was listed as a performance opportunity to help us tackle some of the challenges we face with reduced cantilever loading, high torque, high drag, high sideforce, and casing wear concerns. Without a light alloy alternative, the furthest reaches of the platform would require a modification to well design.”

Brunei Shell plans to use AADP® on additional wells in Brunei. Shell is also planning a drilling project using AADP® in New Zealand.

AMRTUR led the staging, inspection, maintenance, and deployment of the aluminum drill string. “The rapid deployment of the Alcoa Alloy Aluminum Drill Pipe with BSP is an excellent example of the technology and service advantage AMRTUR can bring to its clients. I look forward to working with Alcoa and BSP to expand the use of the drill pipe in Southeast Asia and the Pacific region,” said Lieutenant Colonel (ret.) Mahmod “Max” Yakop, Managing Director of AMRTUR.

About Alcoa Oil & Gas
Alcoa Oil & Gas is a division of Alcoa, the world’s leading producer of primary and fabricated aluminum, as well as the world’s largest miner of bauxite and refiner of alumina. The company produces lightweight, high-strength aluminum alloy drill pipe in 4-1/2”, 5”, 5-1/2”, 5-7/8” and 6-5/8” diameters. In addition, Alcoa Oil & Gas manufactures subsea riser components and assemblies, casing, core barrels and down hole tubular products, conveying pipe, extruded tubing and shapes, and offers large-scale closed-die forging capabilities.

About Alcoa
Alcoa is the world’s leading producer of primary and fabricated aluminum, as well as the world’s largest miner of bauxite and refiner of alumina. In addition to inventing the modern-day aluminum industry, Alcoa innovation has been behind major milestones in the aerospace, automotive, packaging, building and construction, commercial transportation, consumer electronics and industrial markets over the past 120 years. Among the solutions Alcoa markets are flat-rolled products, hard alloy extrusions, and forgings, as well as Alcoa® wheels, fastening systems, precision and investment castings, and building systems in addition to its expertise in other light metals such as titanium and nickel-based super alloys. Sustainability is an integral part of Alcoa’s operating practices and the product design and engineering it provides to customers. Alcoa has been a member of the Dow Jones Sustainability Index for 10 consecutive years and approximately 75 percent of all of the aluminum ever produced since 1888 is still in active use today. Alcoa employs approximately 61,000 people in 31 countries across the world. More information can be found at www.alcoa.com.

About Brunei Shell Petroleum Co. Sdn. Bhd. (BSP)

BSP is a dynamic, world-class company and one of the largest energy companies in Asia. The company has a long history in Brunei of more than 80 years and is at the leading edge of oil & gas technology. BSP places safety and the environment at the heart of everything it does, and actively invests in the people and community of Brunei.

About AMRTUR Corporation Sdn. Bhd.

AMRTUR Corporation Sdn. Bhd was founded in 1996, incorporated on 2nd December 1998, and is fully owned by BRUNEI BUMIPUTRA entrepreneurs. AMRTUR’s main objective is to provide Integrated Service Solutions with the primary focus of nurturing advanced technologies. This focus has led to the company’s invention of the first Zone 1 splicer for the oil and gas industry. The company’s success over the years has resulted from this orientation towards advanced technology and its ability to provide a wide range of products and services.



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Alcoa Aluminum Alloy Drill Being Position by Iron Roughneck To Be Run Downhole



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Alcoa Aluminum Alloy Drill Pipe Being Inspected Prior to Deployment



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Completer Rig as Seen From Pipe Perspective