/Champion_Corrosion

CORROSION MITIGATION FOR COMPLEX ENVIRONMENTS

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Corrosion is a multi-billion dollar problem.

Champion Technologies predicts it, prevents it, and produces chemistries to combat it.

Corrosion costs the oil and gas industry tens of billions of dollars in lost income and treatment costs every year. In worst-case scenarios, corrosion-induced failure can cause environmental pollution, property damage, or endanger public safety. Proactive treatment costs are insignificant compared to the income that can be lost due to unmitigated corrosion.

Corrosion is complicated

Expertise is critical

Almost any aqueous environment can promote corrosion, which occurs under numerous complex conditions in oil and gas production, processing, and pipeline systems. No metal surface or metal-alloy component is totally immune to corrosion issues, like top-of-line corrosion, under-deposit corrosion, or pitting, so production tubing and equipment, processing equipment, separators, pumps, and flow lines are at risk at literally every step in the production-handling process.

Champion Technologies has worked for over 59 years to advance the science of corrosion mitigation. Our industryleading corrosion experts are among the most well trained and most experienced in the oil and gas industry.

Over the life of a field, irregular fluid flows or evolving production characteristics can alter corrosion conditions or even change potential corrosion mechanisms. Multiphase flows can complicate the task of mitigating corrosion. Oilfield chemicals applied to remedy other production, processing, or handling problems could also increase corrosion issues.

Even improper design or misapplication of corrosion mitigation measures can increase the potential for corrosion.

Through our technology research and development organization, Champion Technologies creates new corrosionfighting chemicals, new treatment strategies, and new service capabilities to remedy corrosion problems of all types.

Our global corrosion team can be trusted to detect and treat corrosion issues before they threaten your business or the environment.

Corrosion challenges Common problems addressed by Champion Technologies’ corrosion mitigation programs include: • Electrochemical reactions involving water and oxygen, high operating temperatures, or galvanic reactivity between two metals immersed in an electrolyte

• Acidic gases such as hydrogen sulfide (H2S) and carbon dioxide (CO2) • Biological activity of microbes contained in produced fluids • Deposition of solids, sludge, biomass or reactive liquids • Any oxygen-containing environment

Diagnosing corrosion conditions and mechanisms Controlling corrosion mechanism, or mitigating their effects, can be as complex as the conditions in which corrosion occurs. Champion Technologies begins a corrosion mitigation program by immediately initiating a collaborative and comprehensive investigation to assess the situation in the field.

We analyze your production and processing operations, and only after developing a thorough understanding of the range of conditions expected during the life of the project, do we design a corrosion management plan.

Asset audit When you first begin working with Champion Technologies, we will ask about your asset’s historical and current operating practices, including: • Production rates, temperature and pressure data • The evolution of field development and construction of production and processing infrastructure • Treatment patterns of existing chemical programs • Previously existing corrosion issues, system failures, associated costs, and the results of root cause analyses

Data analysis and forecasting Champion Technologies uses a variety of software models to forecast fluid dynamics in production tubing and surface pipelines, including: • Topographical fluid dynamics analysis • Pipeline heat loss determination • Phase behavior of produced liquids and gases • Internal corrosion risks, corrosion rates, scale deposition, wall-shear stress, and elemental sulfur deposition

Additional analytical capabilities to determine corrosion inhibitor properties include dispersibility and emulsion tendency testing, materials compatibility testing, foaming tests, viscosity tests, freeze/thaw stability, and pour point testing.

By working closely with you, our corrosion experts can recommend a specialty chemical solution designed for your specific corrosion issues. We do this by learning and gaining full knowledge of your production operations and studying empirical evidence revealing the interrelationships of dynamic corrosion forces at play.

Chemicals and services for the life of your asset Champion Technologies is a committed, capable partner for the duration of your project execution. We: • Assess corrosion problems, recommend solutions and define treatment objectives

• Manufacture corrosion inhibitors precisely, blend corrosion-chemical treatments, and implement and manage treatment programs • Monitor, measure and evaluate results, reassess evolving production parameters, and adjust corrosion mitigation measures to fit current conditions

Lab testing Champion Technologies’ global team of corrosion experts develops and executes field tests and laboratory testing procedures to validate the accuracy of our initial assessment. Lab tests simulate actual system operating conditions whenever possible, although some factors, such as the condition of metal surfaces, random fluctuation of process parameters, or the exact nature of flow conditions, can be very challenging to simulate.

Champion Technologies’ state-of-the-art lab testing equipment includes:

conditions, to simulate partial pressures of CO2 and H2S at

• Bubble test apparatus to evaluate the partitioning

rates by mass loss and localized attack by coupon surface

properties of water-soluble and/or dispersible formulations • Static autoclaves to evaluate corrosion inhibitors at

elevated temperatures, and to determine general corrosion

inspection • Flow loops to simulate flow hydrodynamics of field

elevated temperatures and pressures, and under

pipelines for evaluation of corrosion inhibitors under

conditions simulating stagnant areas in natural gas and

defined shear stress conditions

crude oil production equipment • Rotating cylinder electrodes to rapidly screen corrosion inhibitors under low shear conditions • Rotating cylinder autoclaves to replicate high flow velocity

• Jet impingement to evaluate corrosion inhibitors under extremely high shear conditions

Additional testing equipment and methods used to evaluate corrosion issues include: optical microscopes, laser profilometer, corrosion morphology identification, ecoclaves, pit tests, weld tests, Orbisphere tests, EDX analysis, XRD analysis, cross sectional analysis, scale analysis, 13C and 1H NMR analysis, and GC/MS analysis.

Implementing corrosion mitigation best practices We know corrosion mitigation is only a small part of an oil or gas asset integrity program, but the right corrosion mitigation strategy can be the difference between efficient, profitable operations and chronic unscheduled downtime.

For decades, Champion Technologies has solved corrosion challenges by drawing upon the technical, human, and knowledge resources within our global network of corrosion scientists and engineers, surface-scientists, material scientists, application specialists, field sales representatives, and business development specialists. Resulting empirical results and lessons learned – both quantitative and qualitative – have led to the best practices implemented by our integrated team and outlined below.

Identifying organizational roles and responsibilities Champion Technologies’ commitment to our customers’ successes is evident in the communication networks we have established. Through open dialogue and continuous

familiarization with your organization and culture, we are positioned to understand your business drivers and operational challenges, and to better deliver critical information to the right people as early as possible.

Criticality and risk assessment Champion Technologies employs industry standard computer models to predict corrosion rates that we then validate against field data and experience from other assets.

Together with our proprietary assessment methodology, our total system analysis gives customers a holistic view of their operations, pinpointing at-risk corrosion areas that are often overlooked.

Incorporating experience and practical knowledge Over several decades of mitigating and remediating corrosion issues, Champion Technologies has built an extensive collection of practical knowledge. Housed in a repository of effective practices, this important information is accessible to our technical staff via a global information technology network.

Chemical and corrosion control matrices Control matrices form the basis of our proactive approach to corrosion management. These are primarily used to track and trend the myriad of input measurements that constitute a comprehensive management program. Key metrics and performance indicators included in the matrices are designed around customer goals and objectives to ensure strategic alignment.

Monitoring and inspection Although monitoring and inspection are essentially output measurements, they are critical to determining the effectiveness of a corrosion control program. Comprehensive monitoring tracks results in the short and medium term that are ultimately validated by a thorough risk-based inspection program. Champion Technologies collects, analyzes and reports data to keep you constantly informed, working as your partner to preserve system integrity throughout field life.

Optimizing corrosion mitigation and asset performance Oilfield corrosion challenges are not static phenomena.

Fluid characteristics change over time, resulting in systems becoming less responsive to established corrosion mitigation programs. Champion Technologies’ asset integrity management programs go beyond simply monitoring metal loss. We include multiple water analyses and microbial monitoring together with ongoing system and data analysis, allowing us to predict increases in corrosion risk and respond accordingly.

Our proactive approach is one reason why, time and again, customers turn to us for help with their corrosion control strategies.

A Champion Technologies’ asset integrity management program includes tracking and trending system inputs and outputs, such as chemical injection rate, and corrosion monitoring data. Available corrosion monitoring techniques range from the traditional (corrosion probes, coupon tests, copper-iron displacement, water analyses, and other non-destructive inspection methods) to more advanced, real-time techniques that

may include technologies to accurately quantify metal loss or measuring parameters indicative of corrosion rate, such as hydrogen flux in sour environments. As no single approach provides a comprehensive analysis, we implement several and rely on the collective strengths of various techniques to compensate for individual limitations.

Champion Technologies identifies trends and establishes key performance benchmarks by a constant revalidation of two key factors - corrosion inhibitor effectiveness and application method. We provide fit-for-purpose solutions that add value to your business while continuing to advance our corrosion mitigation technologies and strategies to your benefit. Most importantly, we help optimize the service life of your oil and gas production and processing facilities.

Champion Technologies is a true partner in the achievement of your business objectives.

Continuous monitoring Champion Technologies thorough, well-implemented monitoring program will help: • Optimize a corrosion mitigation program • Manage the integrity of your production system • Facilitate the implementation of new corrosion chemistry, application methods, or chemical-delivery points in response to evolving field conditions

Trusted advisors of corrosion mitigation Champion Technologies has grown to become one of the world’s largest and most successful oilfield specialty chemical companies because – throughout our existence – we have focused on understanding the specific needs of each of our customers.

The powerful professional and personal relationships we develop underpin our steadfast commitment to providing customized, durable corrosion-related production and processing solutions. We listen. We work shoulder-toshoulder with you every step of the way. We demonstrate the focus and attention to detail such critical work demands.

Backed by our global knowledge organization, our specialists become valued members of your asset teams.

Pushing corrosion mitigation forward Champion Technologies actively supports and participates in professional associations and education, training and

technology-development programs sponsored by industry consortia, colleges and universities. Through these affiliations, we collaborate with other members of the global corrosion community to advance corrosion science through joint research projects and peer-reviewed technical papers, and by showcasing our corrosion chemicals, applications and services at major industry trade shows and conferences.

Through these activities, we stay connected to best practices in the corrosion mitigation industry and continually augment our knowledge and understanding of corrosion processes and mechanisms.

Through our work, we strive to protect our people, our customers, the environment, and the communities in which we operate. We pledge to create chemical corrosion solutions our customers can trust.

Corrosion mitigation in action Case histories: Situation:

Situation:

Uncontrolled localized corrosion in oil sales line traversing mountainous, environmentally sensitive terrain.

Corrosion offshore requires environmentally friendly inhibitor that treats overboard discharge and does not form emulsions or cause foam.

Solution:

Solution:

Replace continuous injection with site-specific Cortron® RU-248 batch treatments. Assess changing well conditions via modeling, inspections and coupons.

Perform rigorous laboratory and ecotoxicological tests.

Continuously apply Cortron® CP-3070, labeled GOLD by a European regulatory agency.

Results:

Results:

Reduced corrosion rates and exposure to environmental risks. Decreased operator’s costs by 75 percent (USD $3,580,000).

Corrosion was controlled, foam and emulsions were not present and oil-in-water values for discharged water were 15-55 percent lower than the environmental standard.

Situation: Installation of 400-mile NGL line requires environmentally safe, effective and biodegradable hydrotest chemicals for source water.

Solution: Add oxygen scavenger Cortron® RU-206 five miles downstream of injection pump and environmentally friendly biocide Bactron® K-95 downstream of scavenger.

Results: Hydrotest procedure of filtered source water, gas blanket and cost-effective hydrotest chemicals resulted in non-significant levels of bacteria.

About

Champion Technologies is a global specialty chemical company with 3,100+ employees in over 50 locations in more than 30 countries delivering innovative and engineered programs for upstream, midstream, and downstream oil and gas markets. Our integrated offering mixes sustainable chemistry, technology, and service to enhance your world.

Markets Served: Arctic | Conventional | Deepwater | Enhanced Oil Recovery | Heavy Oil | Industrial | Midstream | Offshore | Oil Sands | Refinery | Shale

Corporate Headquarters: 3200 Southwest Freeway Suite 2700 Houston, Texas, USA 77027 +1 713-627-3303

Regional Headquarters: Aberdeen, Scotland, UK +44 (0) 1224-879022 North Africa, Europe, Middle East Operations Technology Center, Manufacturing

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Geismar, Louisiana, USA +1 225-673-2436 Water Solutions Moscow, Russia +7 (495) 981-2558 Russia, Caspian, Sakhalin Operations Odessa, Texas, USA +1 432-363-9105 Manufacturing

Perth, Australia +61 (8) 9472-9400 Port Harcourt, Nigeria +1 713-627-3303 West Africa Operations

Technology Center, Manufacturing

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Fresno (Houston), Texas, USA +1 281-431-2561 Technology Center, Manufacturing

Technology Center

Singapore +65 6733-9482 Asia-Pacific Operations

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