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NALCO CHAMPION MAGAZINE ISSUE ONE

NALCO CHAMPION MAGAZINE

Nalco Champion Magazine 3200 Southwest Freeway Suite 2700, Houston, TX 77027 magazine.nalcochampion.com

ISSUE ONE

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In Lloydminster, Canada, production of heavy oil requires specialized solutions.

Our technical experts spend extensive time in the field to monitor, observe, and understand the specific issues at play.

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In Lloydminster, Canada, production of heavy oil requires specialized solutions.

Our technical experts spend extensive time in the field to monitor, observe, and understand the specific issues at play.

APRIL 2014

“WE UNDERSTAND EMERGING TRENDS. WE HAVE PROCESSES IN PLACE TO ANTICIPATE PROBLEMS. AND WE HAVE ORGANIZED OUR COMPANY TO ANSWER BOTH THE CHALLENGES OF TODAY AND TOMORROW.” DANNY REY, VICE PRESIDENT LATIN AMERICA, SUB-SAHARA AFRICA, GULF OF MEXICO

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P R E S I D E N T’ S S 20 I SPSRUI N E GO N E1 4

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CONTENTS F R O N T 5 6 7

PRESIDENT’S LETTER RE: SOLUTION CHALLENGE TECHNOLOGY LETTER

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10 NEWS 12 CASE HISTORY 1 4 C O N V E R S AT I O N 16 INFOGRAPHIC 18 UP CLOSE 22 BY THE NUMBERS

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24 C R U D E A N S W E R S COVER STORY As producers worldwide bring an increasingly complicated range of crude oil to the surface, today’s refiners must be able to handle individual crudes and the additional challenges that appear when different crudes are mixed.

Nalco Champion, an Ecolab company, helps refineries turn these challenges into profits.

32 OPPORTUNITY RISING With a dedicated infrastructure of in-country local assets, Nalco Champion is a leader in the West African petroleum marketplace. As construction continues on its newest facility in Angola, the company continues to realize its long-term strategy for the region.

36 CLOSING THE TECHNOLOGY GAP Complex technical challenges are nothing new to the oilfield, but sometimes problems arise that cannot be solved with traditional diagnostic tools or analytical methods. Post-merger, the unification of two industry-leading RD&E teams resulted in major microbiological advances.

44 ONE YEAR IN Today, Global Energy Services is Ecolab’s largest division, representing 26 percent of the company’s business portfolio. Revisit the merger and acquisition that led to its development through a collection of facts and stats that celebrate our unified people and purpose.

C O M M U N I T Y

5 0 F R O M T H E VA U LT 5 1 EXPERTISE 52 E M P LOY E E P R O F I L E 53 INFOGRAPHIC 54 TRAINING 55 REGIONAL PROFILE 56 CASE HISTORY 58 SEEN AND HEARD 60 CORE KNOWLEDGE 6 1 RECRUITING

MORPHX, SURFLO PLUS, ECOLAB, NALCO, NALCO CHAMPION AND THE LOGOS ARE TRADEMARKS OF ECOLAB USA INC. ALL OTHER TRADEMARKS ARE THE PROPERTY OF THEIR RESPECTIVE OWNERS. © 2014 ECOLAB USA INC. ALL RIGHTS RESERVED.

“OUR GOAL HAS BEEN TO OFFER MORE VALUE TO OUR CUSTOMERS AND DO IT WITH OUR NUMBER ONE PRIORITY IN MIND—SAFETY. NOW WE WANT TO SHARE OUR PROGRESS AND STORIES WITH YOU.”

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M A K I N G N A L C O C H A M P I O N ’S E XC I T I N G P OT E N T I A L A S U S TA I N A B L E R E A L I T Y When Nalco Energy Services and Champion Technologies joined in April 2013 after years as highly respected competitors, it brought two of the best teams in the industry together to enhance the way we deliver value for our customers. It also preserved our identity and value proposition in a sector that has experienced significant consolidation. Now comes the exciting part.

More than 30 years ago, I signed up for a career serving customers in the oil and gas industry, and it is something I am now more passionate about than ever.

We have a unique and valuable business model of innovation and value-based chemical solutions. We provide that through a highly trained global sales and service team who work intimately with our customers. As Nalco Champion, we can bring even more to the industry by having the largest capability and the most dedicated and innovative people backing up our promise.

While we came together to expand the technical value we provide on a global basis, several parts of our collective offering won’t change: Our ethics, our passion for safety and our commitment to train and develop our people are preserved or enhanced now that we have come together as one.

E X PA N D E D R D & E C A PA B I L I T I E S Our Research and Development teams once pursued innovation and breakthrough products in parallel, and now they have united to focus their capabilities and bring new solutions to the market.

We worked quickly to bring those teams together, helping them work side by side in our RD&E headquarters near Houston and in our regional labs around the world.

It has led to successful advances in microbial capabilities, treatment programs for recycling and re-using produced water, new applications that help produce hydrocarbons at higher temperatures and pressures, and projects that will exceed our customers’ expectations of value in all stages of the oil and gas value chain.

While our recent merger expanded our ability to serve customers in production, our business has always spanned the reservoir to the refinery. Our enhanced WellChem Technologies™ team has an expanded product offering in the drilling, completion, and stimulation side of oil and gas, and our Downstream team has been successful in solving a gamut of crude challenges, something you now have an opportunity to learn more about.

We also are empowering our people by institutionalizing a knowledge-sharing program, CORE, to enable our people to share expertise globally and bring team members onboard faster to solve the toughest programs in the field.

Now we are more prepared than ever to meet customer needs and tackle the toughest technical production challenges in the market.

GLOBAL INVESTMENT AND INFRASTRUCTURE The combination of our resources has provided us with a leading global presence in some of the most challenging environments for oil and gas. You will see stories of our commitment to areas—such as in West Africa—where we are supporting a sustainable local presence in the countries where we work. We are engaging people, providing them with opportunities, and making a positive difference in the communities.

We are positioned to grow, and being part of Ecolab provides us the backing to invest in the infrastructure our industry needs most from their partners. Our global supply chain is now more robust and secure, and our expanded global footprint enables us to assure supply with optimized logistics and local content.

We are capitalizing on our growing business by investing, whether it is expanding our global manufacturing and supply chain footprint, such as our new world-scale manufacturing plant on Singapore’s Jurong Island, which will be commissioned later this year, or plans for our new combined headquarters campus in the Houston area. We also are planning to hire nearly 500 new talented and highly trained professionals to join our more than 4,000 sales and service engineers to serve the industry.

TIME TO TELL OUR STORY During the past months, our goal has been to offer more value to our customers and to do it with our number one priority in mind—safety. Now we want to share our progress and stories with you in our new magazine.

When we first came together as one organization, our leadership had the privilege of visiting dozens of our locations in the busiest oil and gas hubs around the world to share the awesome potential of our organization with our team members. It is clear they believe in that potential, and they understand that our success will be validated only by our customers. While meeting with our people, one thing we commonly have been saying is thank you. We appreciate our team members for continuing to work safely, developing innovative solutions for our customers, and working to put this new organization in a position to be something special.

As we move into our first full year as Nalco Champion, I am optimistic about our ability to enhance the innovation, technical and logistic support, and services that our customers rightly expect from us. I thank you for the trust and confidence you put in our products and services every day.

S T E V E TAY L O R E X EC U T I V E V I C E P R E S I D E N T A N D P R E S I D E N T, N A LC O C H A M P I O N

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K E E P M OV I N G Sedentary work is hard on your muscles.

To reduce fatigue and discomfort, get up and move at least every 20 to 30 minutes throughout the workday.

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ISS U E ONE 2014 A PU BLICATION OF NALCO CHAMPIO N , A N ECOLA B CO MPANY

EDITOR Scott Stone

A S S O C I AT E E D I T O R Aimee Borders

EDITORIAL REVIEW BOARD Jim Chew Melissa Crocker Tina Dear Sandra Garcia-Swofford Julienne Herne David Horsup Debbie Kilen Mike Kilen Justin Moss Tara Mueller Bob Reynolds Jeff Webb Alice Wheelwright

CONTRIBUTORS Lauren Appa Dana Frank Rusty Haggard Scott Redepenning

DESIGN Pentagram, Austin

Nalco Champion Magazine 3200 Southwest Freeway Suite 2700, Houston, TX 77027 Telephone +1-713-627-3303 magazine.nalcochampion.com

STORY IDEAS? Submit your story ideas, feedback, questions, and comments to nalcochampion@ecolab.com.

Our people have made discoveries that enhance production, asset integrity, recovery rates, and environmental compliance.

But our real point of differentiation is our ability to collaborate with you to solve complex challenges. Through Re: Solution we outline an industry challenge and invite you, our reader, to join us in solving it.

Identifying Novel Methods for Biofilm Disruption and Removal

BY V I C K E AS L E R, R D & E M A N AG E R M I C RO B I O LO GY A N D I N D U ST R I A L BIOTECHNOLOGY ANCHOR

PROBLEM Biofilms are present and cause challenges in nearly every industry from municipal water treatment to Food & Beverage plants. The petroleum industry is no different, with biofilms potentially leading to microbially influenced corrosion (MIC), biotic H2S generation, and significant biofouling. Penetration of a biofilm and removal of it from a surface is incredibly difficult as the organisms that make up a biofilm can be more than 1,000 times less susceptible to an anti-microbial treatment than the same organisms that are free floating in planktonic form.

CHALLENGE The goal of this challenge is to identify novel methods for biofilm disruption and removal. The solution could be chemical, biological, or mechanical, amongst others and would result in penetration, kill, and removal of biofilms that are commonly found in the petroleum industry.

CALL FOR INSIGHTS Nalco Champion wants to hear from you. If you have a potential solution that could warrant further investigation, please submit to nalcochampion@ ecolab.com. A representative from Nalco Champion will get back to you to explore further.

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TO U G H E S T C H A L L E N G E S R EQ U I R E DIFFERENT THINKING Change is characteristic of the oil and gas industry.

Whether a company is responding to fluctuations in oil and gas prices, reservoir conditions, crude quality, political stability, or government regulations, it has to embrace change.

Growing energy demand requires that companies operating in this space continue to evolve and remain at the leading edge of new technology. Today’s technical challenges associated with the production and refining of oil and gas are orders of magnitude higher today than they were just a few years ago. The game has changed, from the production of waxy light sour condensate out of a tight shale formation to the refinement of heavy bitumen, laden with contaminants.

That dramatic need for advanced technology– based solutions was one of the primary drivers behind the unification of Nalco Energy Services, Champion Technologies, and CorsiTech. Today the technical challenges the industry grapples with require a different way of thinking and operating. Production increasingly comes from deeper and hotter formations, crude characteristics are significantly more aggressive, and assets are located in some of the most remote and environmentally challenging geographies of the world.

In many cases, effectively creating solutions for some of the greatest challenges facing both upstream and downstream operations requires the development of complex laboratory simulation apparatus that does not exist today. Furthermore, scientists and engineers must break free from conventional thinking to develop viable technical solutions. Conventional thinking is unlikely to yield solutions, because in many cases the industry is navigating unchartered waters. The dynamic between customer and supplier also is changing.

Speed to market of practical solutions requires a true partnership based on trust.

Nalco’s and Champion’s technology groups working together has allowed us to bring tremendous resources to bear on the industry’s toughest challenges. Today we have more than 400 of the industry’s brightest scientists and engineers in 13 technology centers worldwide dedicated to solving upstream and downstream challenges through the development and application of smart chemistry. Furthermore, Nalco Champion’s Research, Development, and Engineering (RD&E) personnel are part of a greater team of 1,600 scientists and

engineers within Ecolab. The diversity of experience is a tremendous advantage that enables a fresh perspective on problem solving. An example is the use in upstream applications of an antimicrobial that is commonly employed in the food and hospitality industries.

The technology provides significantly superior performance over conventional biocides and has the added benefit of controlling H2S, cleaning up water, and subsequently decomposing to acetic acid and water. The application is a cost-effective program with a favorable environmental footprint.

Our expanded field service team has a presence in approximately 70 percent of all upstream operations and downstream assets worldwide. That enables us to gain a wealth of knowledge and first-hand experience in the overall lifecycle of hydrocarbon streams.

Because having immediate access to that knowledge is critical in providing solutions to our customers, a robust communication platform was a priority when Nalco and Champion came together. Within four months the comprehensive knowledge-sharing platform CORE™ launched to provide a virtual meeting point for our large global team. Experience gained through facilitating the production of heavy crude, for example, can be highly beneficial in assessing potential processing challenges when the crude reaches the refinery. We are able to share the knowledge that some production chemistries utilized upstream can be problematic if they make it through to the refinery.

Nalco and Champion both had proven track records of providing innovative solutions to the petroleum industry. Ecolab also has a proud innovation legacy and is frequently recognized for innovation successes1.

Together the synergy of the new company holds great potential. By focusing on the right opportunities, we are developing solutions that will define our industry and help our customers and key stakeholders achieve sustainable, profitable growth.

Change is prevalent in the petroleum industry, and the stage is set for Nalco Champion to change the game through the development of the next generation of solutions for our industry’s toughest challenges.

D AV I D H O R S U P V I C E P R E S I D E N T, R D & E , E N E R GY S E RV I C E S N A LC O C H A M P I O N

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STOP WORK AUTHORITY You are empowered to execute stop work authority if you perceive the task in front of you is unsafe. Ask a safety leader; we all share this responsibility everywhere, every time.

1 Recently Ecolab

was again listed by Forbes magazine as one of the world’s most innovative companies. Forbes 2013: Ecolab #33 / 100 Most Innovative Companies

“AS OPERATORS CONTINUE THEIR DRIVE INTO UNCONVENTIONAL DEVELOPMENTS SUCH AS OIL AND GAS SHALE PLAYS, WELLCHEM TECHNOLOGIES MAINTAINS A COMMITMENT TO DEVELOP CHEMICAL ADVANCES FOR DRILLING, CEMENTING, FRACTURING, AND STIMULATION THAT SATISFY OPERATIONAL, ENVIRONMENTAL, AND HUMAN HEALTH CRITERIA.” JEFF MONTANYE VICE PRESIDENT, RD&E DOWNSTREAM, WELLCHEM AND TIORCO

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SPRING 2014

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10 NEWS 12 CASE HISTORY 1 4 C O N V E R S AT I O N 16 INFOGRAPHIC 18 UP CLOSE 22 BY THE NUMBERS

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CONTROLLING RISK Identifying hazards and how to eliminate them is critical to creating a safe work environment. Take the time to methodically control risk—it is a great investment in yourself and your colleagues.

The Six Levels of Hierarchy in Controlling Risk • Elimination • Substitution • Isolation • Engineering Controls • Administrative Controls • Personal Protective Equipment (PPE)

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December 2013

A New Nalco Champion Houston-Area Home

led by Khalid Al Sadi, with support from Sayf Khalil, Jasmin Al Duraye, Elias Korosgolou, and Omar Asiat.

I am pleased to announce plans for a Nalco Champion office headquarters, to be constructed by the first quarter of 2016 on our existing property in Sugar Land, Texas.

The new four-story building will unify our Houston-area teams and feature new workspaces, conference rooms, meeting areas, and training facilities. The project also is intended to renovate our current space with expanded state-of-the-art research and development labs. Being together in one facility will help teams maximize collaboration, promote synergies, align safety practices, and increase operational effectiveness across the organization.

Many of our teams have relocated to Houston’s Phoenix Tower, which will encourage collaboration and allow construction on the new Sugar Land lab space and offices.

Steve Taylor Executive Vice President and President, Nalco Champion

JA N UA RY 20 14 #1 Maersk Safety Award Maersk Oil UK recognized Nalco Champion’s continual contribution to safety with a nomination for the “Partnership of the Year” category at the recent Incident Free Awards 2013. “We are proud to be part of the team recognized by the nomination and strive to uphold the Maersk Values, which help us work towards an Incident-Free culture, in line with Nalco Champion’s Goal Zero,” said Aravind Subramaniyan and Mike Reid.

DECE MBE R 20 1 3 Nalco Champion Employee Named OSIsoft Campus All Star OSIsoft recently named industry development manager Rick Davin as an OSIsoft Campus All Star, one of the company’s most prestigious awards, for his outstanding contribution to the Campus developer community.

OSIsoft is the maker of the PI System, the software suite that

stores all the real-time process, 3D TRASAR, and customer data in Nalco Champion’s Refined Knowledge platform.

NOV E M B E R 201 3 #2 ExxonMobil Norway Demulsifier Success The Balder FPSO asset had long been challenged by deposits of an unknown origin and high discharged oil-in-water levels in its phase separation/water treatment systems, but plans to bring online six new wells from the Balder reservoir would lead to a generally heavier crude and more difficult separation process.

When the Nalco Champion merger closed, phase separation specialist Sen Ubbels was brought in to support the account. Through his guidance, on- and offshore surveys and laboratory testing identified naphthenates in the crude as the likely root cause of the deposition. A legacy Champion demulsifier, Emulsotron CC3310-G, which contains naphthenate inhibitors, was

successfully field trialed and implemented by the customer. #3 BMS Win in Algeria

Hyundai Engineering Company awarded Nalco Champion a $0.5M contract for the first fill of the Bir El M’Sana (BMS) oil field project in Southern Algeria.

First oil is expected in first half 2014. “The Apex Team, led by Gianluca Merola and YoungHwan Kim in Korea, was crucial to secure this win, as was the technical piece provided by Dr. Elias Korosoglou,” said Simone Travaglini, district manager.

Double Win for Iraq September saw the start up of two new contracts for Nalco Champion in Iraq: a 2+1 contract with Petronas Iraq, awarded to Champion Technologies in March 2012, and the Shell Majnoon EFA contract, awarded to Nalco in early 2012.

Colleagues from both legacy organizations now manage the Petronas Iraq contract. The Shell Majnoon EFA contract is

#4 Nalco Champion

Downstream Earns Exxon Mobil Responsible Care Award Nalco Champion earned Exxon Mobil’s Responsible Care award for our contribution to a safe startup of the $4 billion Singapore Parallel Train project, the largest owned and operated petrochemical complex and integrated chemical and refining site in the world.

The Nalco Champion Downstream team, led by Sew Nyit Tong and Cyron Soyza and team leads Xianli Kor and Dixon Chuan, was supported by the sales management team, led by Deric Bryant and Steven Cheah, and Ong Kian Tick’s marketing team. They worked with the key account managers team led

by Brett Hughes and Roberto Presenti and the R&D team led

by Andrew Neilson, Dan Meier, and Ted Arnst.

OCTOB ER 2013 #5 Ecolab Chief Visits Gulf Deepwater Fabrication Projects Ecolab Chairman and CEO Doug Baker got a first-hand view of Nalco Champion’s role in in the deepwater oil and gas market during an October 2013 tour of the Kiewit Offshore Services’ fabrication yard.

The visit included an upclose look at three massive deepwater structures being built, including Chevron’s Jack/ St. Malo and Bigfoot platforms and the topside module of the Anadarko Lucius spar platform.

All three assets are on schedule to produce first oil during 2014.

Doug met with several customers, including Brian Fabre, Chevron Offshore Installation Manager at Bigfoot, and Tommy Boepple, Chevron Offshore Installation Manager for the Jack/St. Malo assets.

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RHEOLOGY MODIFIER ELIMINATES COSTLY CLEANINGS IN LIME DELIVERY SYSTEM AT ALBERTA OIL SANDS THERMAL FACILITY

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FIGURE 1 Theoretical lime consumption and actual lime

consumption before and during MORPHX 100 addition.

MgO TRENDING

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FIGURE 2 Theoretical magnesium oxide consumption and

actual magnesium oxide consumption before and during MORPHX 100 addition.

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SOLU TION A MORPHX 100 trial was carried out for six months at the facility, with an average dosage rate of 75 ppm directly fed into the lime slurry tanks to allow for adequate mixing. Prior to the trial, the slurry feed systems underwent chemical and/or mechanical cleaning approximately every four weeks in order to remain operational. The chemical cleaning was performed with hydrochloric acid, which can be harmful if not properly handled.

During the entire duration of the MORPHX 100 trial, no chemical or mechanical cleaning was needed. Occasional flushing of the feed system was sufficient to maintain maximum slurry flow rates. Additionally, under normal operation, the lime slurry strength is targeted at 8 to 10 percent.

During the trial, however, the
lime slurry consistently ran at 15 percent and occasion-

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S ITUATION Constant plugging of the slurry feed
systems and insufficient dosage of lime slurry have plagued the industry, resulting in costly chemical and mechanical cleaning and poor WLS performance. Nalco Champion employed a slurry pretreatment application, MORPHX 100, to successfully eliminate the plugging issues and to ensure more consistent operation of the WLS.

VA LU E We compared the cost of the trial with the mechanical cost associated with cleaning the system plus savings incurred from the more efficient use of commodity lime and MgO. Reducing mechanical and chemical cleaning resulted in an estimated return on investment of approximately $100,000 per year. In addition, the facility saved $420,000 to $490,000 per year of commodity lime and MgO chemical and 2,600 to 3,300 cubic

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BAC KG ROU N D The use of warm lime softening (WLS) for the treatment of produced water to provide boiler feed water for the once-through steam generators (OTSGs) is common practice in the heavy oil recovery industry in Alberta, Canada. WLS uses lime and magnesium oxide (MgO) to remove hardness, silica, and other unwanted constituents through a precipitation process. Softening depends on a consistent and constant supply of lime and MgO slurries to establish a stable sludge bed in the softener.

ally exceeded 20 percent slurry strength. In the past, operating under those conditions without a rheology modifier would have resulted in quick line plugging, but the rheology modifier successfully provided total operational reliability at both normal and stressed operating conditions.

MORPHX 100 effectively controlled scaling and deposition in the slurry tanks, pumps, and feed lines and expanded runtime from four weeks to six months.

PPM

MORPHXTM 100 aids in stabilizing and building consistent output from warm lime systems by ensuring flow of slurry and functioning as a coagulant aid to remove precipitates in the warm lime softener, all while providing return on investment.

meters per year of slurry makeup water.

Beyond operational reliability, applying MORPHX 100 rheology modifier resulted in a number of other tangible benefits: 1. Reduced labor and safety concerns involved in removing scale from slurry tanks and cleaning injection lines 2. Increased capacity in lime and

magnesium oxide lines 3. Decreased loss of production due to increased OTSG reliability, including consistent steam production and reduced OTSG scaling, pigging and failures 4. Decreased frequency of upsets from limited injection rate 5. Elimination of chemical cleaner (Rydlyme, hydrochloric acid) 6. Synergistic effect with coagulant applications.

The application also improved the performance of the WLS by increasing the efficiency of hardness removal. MORPHX 100 acts to neutralize the attractive forces of particles to prevent agglomeration, which by principle increases the active surface area available and allows for more effective precipitation reactions to occur. The net effect is a reduction of lime and MgO consumption. Figures 1 and 2 show the past consumption of both lime and MgO before and after the trial period (five months; November to March).

After the trial started, the consumption of lime and MgO was much better controlled.

The difference between the theoretical and actual is a comparison of the calculated amount of lime required based on flow rates versus the actual measured amounts used.

CONC LU SION As a result of successful trial and introduction, MORPHX 100 lime rheology modifier is now a regular part of the total chemical program. The producer has gained tremendous value in that application, which helps eliminate line and tank plugging issues that have beset the produced water industry while providing superior operational reliability and measurable performance increase to this water treatment facility.

MORPHX 100 lime rheology modifier assists in the elimination of line and tank plugging issues and provides superior operational reliability and improved performance.

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Reflections On Stepping Up, Shutting Down, And Shared Accountability We talk with Kevin Friar and Kyle Rowe about making safety personal.

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BY A I M E E B O R D E R S

KEVIN If you’ve heard Kevin speak, you’ve heard Kevin speak about safety. His commitment to “doing everything possible to make sure every single one of us goes home to our families safely” became very personal when his colleague and friend Scott Budd was killed in a car accident while working in Nigeria.

Do you believe safety is personal or procedural?

Personal safety is where it has to begin. You have to have processes to follow, but safety is behavior-based, and reaching a level like Goal Zero requires changing personal behavior and your safety culture. It’s about valuing human life above everything else.

At Nalco Champion, our culture has changed from compliance or procedural safety to a more personal commitment to safety.

Instead of taking a safety moment because we’re supposed to, we’re spending time really talking about safety so people don’t get hurt. Years ago, we wouldn’t have seen something like what Kyle did— we wouldn’t have known to think about it or talk about it.

As we’ve wrapped our minds around safety as personal, our statistics have improved.

Why is safety personal to you?

Safety changed for me several years ago, when one of my direct reports, Scott Budd, was killed in a car accident while working in Nigeria. From that point forward, I decided I was going to do everything personally possible every day to make sure people come home to their families. And I knew that if we were going to change our safety culture from

AIM HIGH IN STEERING Look ahead to where your vehicle will be at least 15 seconds in the future to spot potential road hazards while you still have ample time to take evasive action if necessary.

need to have a think tank on it.

For us, it was quite simply the right thing to do.

KEVIN FRIAR Senior Vice President Oilfield Chemicals BASED IN: Houston, Texas JOINED NALCO CHAMPION: January 1990

compliance-driven to a more personal commitment, it had to begin with me.

What led to our pursuit of Goal Zero?

Goal Zero is a natural progression for us. We are in the top quartile—best in class in our industry in safety. We’ve seen ourselves get better and

better. But Goal Zero requires a different mindset. Instead of learning from accidents and improving, you’re working on never having an accident. It’s a lofty goal, and it’s a commitment to your people that even one accident is too many.

Goal Zero is an industry standard that some companies choose to follow. We didn’t

How has your safety leadership evolved over time?

You think about how you get to Goal Zero. You have to have the right procedures and processes. You have to have the right behaviors. You have to have safety leadership. You have to progress from SH&E owning safety to a culture in which all your people are leaders in safety, and we all own it. Everyone is accountable.

When I have a discussion, I ask about safety. I speak from the heart about safety. I bring Scott’s story and tell people why it’s important to me. My job is not to give goals and objectives and make people follow them. My job is to educate, convince, and persuade people about what’s really important. To present the vision that informs the goals and objectives and model the processes and behaviors that will achieve them.

How do we hold others and ourselves accountable for safety in the right way?

It’s no different from how we hold each other accountable in every aspect of our business.

It’s consistency—in the discussions we have, in the processes we model. It’s asking questions—

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not to chastise or discipline but to understand—because we care about each other.

It’s reinforcing why safety is important in a compassionate way. You hold people accountable, but you provide education and model safe behaviors personally.

What must happen to maintain safety standards consistently throughout the world?

People need to keep sitting down with each other to talk about safety. And we must put leaders in place who walk the talk and know that maintaining safety globally is possible.

Because no matter where in the world you live or what your education level is, every single person values his or her own life and the lives of people close to them. That is absolutely consistent. People do want to be safe. They don’t want to have an accident.

They want to come home in the same shape they left in that morning. When people are doing the right things every day around the globe even when nobody’s looking, that’s when we’ll hit Goal Zero.

And to Kyle?

Keep up the good work. And thank you for doing what needs to be done. You made the right decision.

KYLE “Kyle lives and breathes safety every single day as a model for the rest of the team to follow,” said operations manager, Jim Bowlby. Kyle’s decision to implement stop work authority on a muddy lease road avoided the accident that befell another driver late that same afternoon.

How does Nalco Champion’s safety culture compare to other places you’ve worked?

Before I worked here, I worked for a municipality. We were exempt from OSHA, and safety was the last thing on people’s minds. Right out of the gate the culture here was different.

In training, we learned exactly what we needed to know to avoid situations that could be dangerous. They told us if we ever saw an unsafe act happening that we have the authority to stop the job and shut things down. But I didn’t ever imagine I’d have to do it.

Were you conflicted about using your stop work authority?

Yes and no. When I pulled into the lease, the road was a little muddy but okay. As I drove in further, I used a safety call I had learned in orientation— Aim High in Steering—and I saw a tractor and trailer ahead of me jack-knifed in a ditch. I stopped and got out to make sure the individual was safe. I saw there was no way I could make the delivery safely, so I called Jim and explained the situation. He agreed with me and said, “Good job.”

There was no pressure. He trusted my judgment. It was very reassuring that my employer would not put me in an unsafe situation.

KYLE ROWE Oilfield Delivery Specialist III (ODF III) BASED IN: South Texas JOINED NALCO CHAMPION: June, 2013

What advice would you give others about staying safe?

Be alert and aware of what’s going on around you. You can really help yourself out by avoiding unsafe situations before you’re in the middle of them.

How much of safety is personal accountability?

A huge amount. We have our training, and we have a safety leader who helps us out, but ultimately you’re the one making the decision. I drive a big truck.

I’m not responsible for just my own safety; I’m accountable for

the safety of everyone on the road around me.

I’d rather be dismissed from somewhere for not doing something unsafe than not able to go home to my family. There’s no job in the world worth not going home to my family.

Any questions for Kevin?

No, I just want to say I appreciate what he and our leadership are doing. By putting programs and people in place, they make my job safer and better. They give us the support and backing to make good decisions.

INSIDE

I N F O G R A P H I C NALCO CHAMPION MAGAZINE

16

GULF OF MEXICO THE GULF’S BASIN ALONE IS ABOUT 600,000 SQUARE MILES IN SIZE, AND T H E E N T I R E A R E A C O N TA I N S R O U G H LY 6 6 0 Q UA D R I L L I O N GA L LO N S O F WAT E R .

H E R E , W E D I V E D E E P I N TO T H E G U L F O F MEXICO AND EXPLORE THE DEPTHS AND POSSIBILITIES OF THIS IMPRESSIVE B O DY O F WAT E R .

NALCO CHAMPION HAS

M A J O R T Y P E S O F P L AT F O R M S

: TLP

A

The Tension-Leg Platform is a vertically moored floating structure permanently secured by means of tethers at each of the structure’s corners. A group of tethers is called a tension leg.

: FPSO

B

The Floating Production, Storage and Offloading vessel is designed to store oil until it can be offloaded onto tankers. Nalco Champion services the deepest production FPSO in the world, and the first in the Gulf of Mexico.

: SPAR

C

This floating oil rig platform is typically used in very deep waters. It is named for the logs used as buoys in shipping that are vertically moored in place.

DEEPWATER ASSETS IN THE GULF OF MEXICO

Some SUB-SEA UMBILICAL SYSTEMS can be just over 100 KM (328,000 ft) from the host facility.

: SEMI-SUB FPU

D

The Semi-Submersible Floating Production Unit is a specialized floating offshore platform designed with good stability and sea-keeping characteristics.

D E E P WAT E R W E L L S I N T H E G U L F O F M E X I C O A C C O U N T F O R A B O U T

AT I T S D E E P E S T P O I N T T H E GULF OF MEXICO IS

14,383

+

FEET (3,384 METERS) DEEP.

OF ALL CRUDE OIL PRODUCED IN THE GULF.

85 120 300+ 950

S U B - S E A U M B I L I C A L S T R E AT E D

GLOBAL OFFSHORE ASSETS

E M P L OY E E S D E D I C AT E D T O O F F S H O R E

I N D U S T R Y PAT E N T S

™ Umbilical chemicals must be effective at low concentrations to inhibit corrosion; prevent scale, hydrate, asphaltene, and/or paraffin deposits; and mitigate against emulsion-related viscosity problems. They must also be stable at sea bed temperatures near freezing and downhole temperatures of 300°F or higher. Nalco Champion’s SurFlo Plus certified chemistries have been specifically developed to meet those demanding requirements and are field proven best-in-class chemical programs for umbilical applications.

A

B

C

D

0

SHALLOW WATER

1,000

SWORDFISH

DEEP WATER

P H OT I C A N D E P I P E L AG I C ZO N ES Depth into which enough sunlight enters for photosynthesis.

SHARKS

TUNA

DOLPHIN

DEEP WATER

MESOPELAGIC ZONE (A.K.A. THE TWILIGHT ZONE)

5,000

Life here subsists on bacteria and scraps of dead plants and animals.

This is the approximate depth to which sunlight penetrates into the ocean.

ULTRA-DEEP WATER

LARGE WHALES

CHAIN CATSHARK

ULTRA-DEEP WATER B AT H Y P E L A G I C Z O N E (A.K.A. THE DEEP SEA)

OCTOPI

There is no sunlight at this depth.

VIPER FISH

10,000

SEA FLOOR/SUBSURFACE A BY S S O P E L A G I C Z O N E (A.K.A. LOWER MIDNIGHT ZONE)

DEEP-SEA ANGLERFISH

14,383

19

U P

C L O S E

ISSUE ONE

INSIDE

SCALE Uninhibited, barium and sulfate ions attach in a very ordered fashion, creating distinct, well-formed flat crystal faces and sharp, angular edges. This barite particle measures approximately 25 microns (.025 millimeters) and was captured on a variable pressure tungsten filament scanning electron microscope within our Sugar Land Technology Center.

INSIDE

U P

C L O S E NALCO CHAMPION MAGAZINE

20

SCALE Grown in the presence of low concentrations of scale inhibitor, barite particles exhibit disordered growth.

This partially inhibited barium sulfate crystal has grown in an irregular (modified) manner which has created long “spikey� features. Higher concentrations of scale inhibitor would further modify scale formation.

INSIDE

B Y

T H E

N U M B E R S

T EC H S U P P O R T In the 52 weeks of 2013, Nalco Champion’s RD&E team completed more than 3,000 global technical support requests across three business units: Downstream, Oilfield Chemicals, and WellChem. In Nalco Champion’s RD&E structure, global research and technical support groups dedicated by product line are coupled with regional RD&E counterparts. With cross-functional collaboration applied to every single request, we increase our rate of learning and more efficiently apply our solutions to your toughest challenges, from the reservoir to the refinery worldwide. So go ahead. Ask. We’ll put our 450+ scientists, engineers, and innovators to work for you.

T E C H R E Q U E S T S BY B U S I N E S S U N I T

22

, 3 173 NALCO CHAMPION MAGAZINE

T O TA L G L O B A L T E C H N I C A L S U P P O R T R E Q U E S T S

1,932

WELLCHEM

1,149

OILFIELD CHEMICALS

DOWNSTREAM

92

450+ R E S E A R C H E R S , S C I E N T I S T S , A N D I N N OVAT O R S AT W O R K

E C O L A B 2 0 1 3 S A L E S BY R E P O R TA B L E S E G M E N T

5% 26%

37%

MORE FIGURES

50 MANUFACTURING FACILITIES 6,800 EMPLOYEES 13 TECHNOLOGY CENTERS

32%

160+ COUNTRIES NALCO CHAMPION ACTIVELY MAINTAINS MORE THAN PATENTS

950

37% GLOBAL INDUSTRIAL 32% GLOBAL INSTITUTIONAL 26% GLOBAL ENERGY 5% OTHER

“AS WE MOVE TOWARD THE FUTURE, WE’LL BE EXPLORING ENVIRONMENTS THAT REQUIRE AN EVEN HIGHER LEVEL OF INNOVATION. AS A LEADING TECHNOLOGY COMPANY, WE HAVE A VERY EXCITING FUTURE.” KURT KIRCHOF SENIOR VICE PRESIDENT, WELLCHEM TECHNOLOGIES

25

ISSUE ONE

COVER CRUDE ANSWERS AS PRODUCERS WORLDWIDE B R I N G A N I N C R E A S I N G LY C O M P L I C AT E D R A N G E O F CRUDE OIL TYPES TO THE S U R FA C E , N A L C O C H A M P I O N HELPS REFINERIES TURN THE CHALLENGES INTO PROFITS.

BY SCOTT REDEPENNING

Crude oil is the world’s largest traded commodity. Around the planet roughly 90 million barrels of the highly prized liquid is unearthed every day. But the contents of those barrels varies greatly.

While numerous types of crude are brought forth (every reservoir around the world basically has its own idiosyncratic product), the industry simplifies all of those into three main groups: light, medium, and heavy. Right now light crude is king, particularly in North America. Oil from the continent’s shale plays is characterized as light and tight, a relatively pure form of crude that in theory should be easier to refine.

Medium and heavy crudes are classified based on the levels of contaminants and other ingredients that must be processed out during refining. These crudes are produced all over the world, from Canada to Kazakhstan, Venezuela to Vietnam.

One would expect the refining formula across this range to be beautifully simple and logical. The heavier the crude, the harder the job, right? Not so, says Sam Lordo, director marketing, refining and fuels management Americas for Nalco Champion. “The industry has dealt with light, medium, and heavy crudes successfully for decades. These are what we call routine crudes. But each category also has what we call challenged crudes,” he says.

“These present something that refiners haven’t seen before that can create huge challenges for their operations. Challenged crudes typically have a new compositional matrix, and if you blend that with a routine crude, you may generate a hard-to-process crude mix. That’s where we step in with a variety of solutions.”

COVER

THE PROFITS ARE IN THE MIX In the span of two years, North American shale oil production has climbed to more than two million barrels per day, a figure that is projected to surpass five million bpd by 2017. Crude from Canadian oil sands also is still relatively new, about a decade into development and producing about four million bpd. To deal with these new crudes, the refining landscape in North America is changing dramatically, and the rest of the world is not far behind. Populations are swelling globally, particularly in China and India, creating a frantic race to meet new energy demand. Many challenge crudes are being produced, and a multitude of new refineries are coming online quickly to handle them.

That kind of flux presents perplexing challenges. Traditionally, refineries have been built to process a predictably narrow range of crudes. That formula no longer works. To be successful now, refineries must be able to work simultaneously with widely variable crudes. The reality of the business is that dissimilar crudes must be blended for refineries to run at full capacity, which can present incompatibilities that cause problems during processing. Today’s refiners must be able to handle the challenges of each individual crude type, and the additional challenges that appear, sometimes mysteriously, when different crudes are mixed.

The U.S. Gulf Coast is the most intensive example of the trend, says Lordo. “This is the largest refining region in the world, and it is set up to run the worst of the worst crudes. But now shale oil has been thrown into the basket. Everything has changed, which is tough on these refineries because their equipment is set up for something different,” he says. “For decades they have been geared for processing heavy high-solid sour crude, and now we’ve got stuff that is twice as light mixed in. There is a big learning curve and big adjustments to make.”

Refinery owners are decidedly motivated to take on that daunting effort.

Throughput is profit, and the more versatile a refinery is at handling a fluctuating mix of unconventional challenge crudes, the more profitable it will be. The upside is so great, in fact, that the industry has put a positive spin on these tough-to-

NALCO CHAMPION MAGAZINE

26

refine products, calling them “opportunity crudes.” Crude oils that are laden with equipment-threatening components such as solids, acids, and salts are sold at a discount. Thus, the refineries that can successfully and economically process them have a great opportunity to reap strong margins.

didn’t move a drop of Nalco Champion chemicals. “This is an example where it didn’t cost the refinery any money on additional chemicals,” he says. “We always want to solve the issue for our customers in some way, and using more chemicals usually isn’t the first thing on the list.”

MEETING THE CHALLENGES The most unwelcome passengers in any barrel of crude are solids, acids, metals, and amines, which can cause corrosion, emulsions, and fouling (performance-robbing buildup) in various refinery components.

Those culprits reduce equipment reliability, cause shorter run lengths between maintenance, and even carry the potential for unit failures and unscheduled shutdowns— problems that can be exacerbated when different crudes are blended.

Refiners simply can’t operate with those issues hanging over their heads.

Brad Mason, senior industry development manager downstream for Nalco Champion, is part of the team that makes sure they don’t have to. “The essence of what we do for customers is very simple. We help them predict the behaviors of various crude mixes, and we offer solutions to mitigate potential problems and optimize the refining process for maximum throughput,” Mason says. “This starts with a thorough analysis of the refinery’s desired crude mix. We forecast crude incompatibilities, conduct desalting studies, evaluate corrosion and fouling potential, consider possible wastewater plant impacts. And then, of course, we provide recommendations on how to handle any problems we find.”

Given the new prevalence of shale oil, Mason says, solving incompatibility issues typically tops the list. “This new crude is seriously challenging our preconceptions about incompatibility. But what we often find is that after intensive evaluation, the solution is surprisingly simple. For example, we have a customer in the Midwest that blends heavy Canadian oil with light oil from the Bakken, an incompatible mix that was causing fouling downstream. We did all this analysis and the answer was to avoid a certain blend formula. We worked out a different blend and solved the fouling.”

Mason is quick to add that this solution

MOC IS THE MANTRA At Nalco Champion, MOC stands for Mechanical, Operational, Chemical. Those three words represent the order in which solutions are sought to customer problems.

Mason says that this discipline keeps the focus on the customer and ensures the best possibility for processing success.

“Everything we do is consultative. We are not salesmen. We solve problems. We may do it with chemistry, but we look at mechanical and operational solutions first,” he says. “Oftentimes we know a client’s equipment better than they do, so we may suggest something as simple as changing a valve setting. Or we might propose a level correction or a change in wash water split or transformer tap setting—fixes that cost the customer nothing but solve potentially huge problems and saves them money.

There have been times when we just change the order of the crudes as they go into the blend, and it makes all the difference needed to solve an issue. These kinds of suggestions are just part of the service we provide.”

Mason says his group earns customer trust because it understands the entire refinery operation, not just the chemical aspect. “When you suggest a fix, you have to know how everything will react downstream. You have to make sure your fix isn’t introducing another issue in another part of the refinery.”

This big-picture perspective pays other dividends to customers as well. Refineries absolutely must contend with changing crude types, but they want to do it without changing their equipment. Nalco Champion’s

The Portable Electric Desalter (PED) determines the relative effectiveness of Nalco Champion’s demulsifiers for a given refinery crude oil feedstock. The more water that coalesces and falls to the bottom of the tube, the better.

CRUDE TWO Bow River, a less heavy crude oil from southern Alberta, Canada

CRUDE ONE Merey, a heavy crude oil from Venezuela

P I C K YO U R VA R I E T Y H E AVY, M E D I U M , L I G H T, A N D C H A L L E N G E D While crude from every reservoir in the world has its own idiosyncrasies, all crudes are grouped into three main categories: heavy, medium, and light. Within each category are also so-called challenged crudes—crudes with a new compositional matrix that, blended with routine crude, can result in major processing difficulties. Nalco Champion helps today’s refiners successfully handle the challenges of the entire spectrum of crudes.

29

COVER

ISSUE ONE

CRUDE FOUR CRUDE THREE North Dakota Sweet, a light crude oil derived from the Bakken shale formation

An unusual yellow petroleum fluid from the Eagleford Shale in South Texas

COVER

approach is to make the operation run optimally on the existing spread. “We help refineries solve issues without having to make new capital investments or idle their units. We help them use what they have to turn profits,” says Mason.

“Our goal is for customers to see us not as a vendor, but as a real partner in the refinery’s success,” he adds. “When we win a bid and start up with a new customer, our approach is that we will help that customer solve problems for life.”

PROBLEMS 101 Back to the issues that vex refineries: emulsions, fouling, and corrosion. The microscopic troublemakers that cause these problems find their way into the crude stream in several ways. Some are naturally produced from the formation along with the crude, some are actually added on purpose upstream during production, and some are accidentally introduced during transport to the refinery. Regardless of the source, keeping those contaminants at bay is where the downstream group earns its keep.

The heart of every refinery is the crude unit, and the desalter is the critical first stage where most contaminants are removed. This unit has the greatest temperature swings and deals with the dirtiest stream. The desalter feeds everything else, so when there’s a problem here it has a snowball effect downstream. Keeping emulsions out of the unit is critical, so a finely tuned demulsifier program is at the center of the chemical strategy.

Fouling occurs in the heat exchangers that prepare the crude for distillation.

The exchangers raise the temperature of the crude before it goes into the furnace, where it is superheated for the distillation column. When contaminates deposit upon or “foul” the heat exchangers, the furnace has to work much harder and consumes more fuel. Half of a refinery’s operating budget goes to energy expenses, so extra fuel consumption is devastating to profitability.

Overtaxing the furnace also increases coke buildup, which has to be cleaned out by taking part of the unit offline and limiting

NALCO CHAMPION MAGAZINE

throughput. Nalco Champion antifoulants solve the issue, allowing longer run times, reduced fuel use and emissions, and lower total cost of operation.

Corrosion threats often come from additives that are purposely introduced in the oilfield and hitch a ride with the crude downstream. Those additives are a blessing to producers but a curse to refiners, causing problems from the intake tanks to the wastewater plant. The downstream group often solves those issues with automated systems that take constant readings from the stream and make real-time chemical adjustments to prevent corrosion. Automation removes a huge maintenance burden and enables more accurate treatment and better results. “It’s a unique solution, but it can save our clients millions,” says Mason.

Finally, there are the contaminants that are completely unpredictable and unpreventable, which are introduced during transport. Pipeline systems simply do not exist yet to service rapid development in new fields. That means 100,000-barrel a day refineries are running off of 500-barrel rail cars and tanker trucks. With that level of pace, volume, and manual handling, quality control suffers. “A tanker owner might have carried dry-cleaning waste one trip and crude the next,” says Mason. “And you can’t always rely on them to clean out their tanks properly. Small amounts of chemicals introduced into the crude can have massive adverse effects on the refinery. We cannot control the transport part of the stream, so we have to give our clients solutions on the back end to deal with these issues.”

Mason adds that the vast solutions his group can provide still do not cover every possible issue. “Crude can be quite a mystery. Even crude you think you’re experienced with can throw you new challenges with no notice. We use our experience to solve these mysteries, but we never rest on that experience. We stay on our toes.

That’s why our company invests heavily in being the industry leader in science.”

RELENTLESS RESEARCH Nalco Champion is in the unique position of serving upstream, midstream, and down-

30

!

H2 S R E A D I N G S

Never stand downwind of a person taking an H2S reading. When in doubt, stop taking the sample until wind direction is determined, then move upwind.

stream clients, applying expertise from the reservoir to the refinery. Collaboration across groups enables fast solutions to new challenges, and all efforts are underpinned with active, ongoing science.

Paul Lindemuth, Ph.D., corporate scientist in downstream research, is one of the architects of these endeavors. He is part of a team that develops the chemistry needed to provide timely solutions, and Lindemuth says the advantage comes from directing the research precisely to customer needs.

“Our work here is predicated on what happens in the real world,” he says. “We don’t start with a molecule and try to predict what it might do. It’s the other way around.

We take what’s happening in the field and work our chemistry to solve the issues.”

Lindemuth is proud to ply his brainpower for a company that focuses so intently on science: “We have research facilities in multiple locations, a multitude of Ph.Ds, a large technical force. We manufacture our own chemistry. And we do everything— upstream, downstream, petrochem, oil and water. We are the only ones who do it all in a big way.”

Brad Mason adds a little wonder to the picture. “I’m often amazed how we do what we do,” he says. “It takes incredible effort to find the oil, produce it, ship it, refine it, and get it to the gas station, where you can buy it for three bucks a gallon. And we help make this happen. We are able to make huge multimillion-dollar improvements for our clients by adding small amounts of chemistry and a lot of knowledge.”

OPPORTUNITY RISING AS CO N ST R U CT I O N CO N T I N U ES O N I T S N E W FA C I L I T Y I N A N G O L A , N A L C O C H A M P I O N L O O KS T O T H E F U T U R E I N W E S T A F R I C A .

BY LAUREN APPA

33

SPRING 2014

Rising up from the savanna in Malembo nearly eight kilometers north of Malongo in Angola, joint-venture Nalco Angola Limitada’s new 430,000-square-foot processing facility nears completion. Slated for full operation in summer of 2014, the facility will process oilfield specialty chemicals for Chevron, one of Nalco Angola’s largest clients. Nalco Angola Limitada is a joint venture, with 51 percent ownership by Servicos Petroliferos Limitada, known as PROPETROL, an Angolan company established in 1996.

Once foundations are in place, the new Malembo plant will receive shipments of state-of-the-art processing equipment fabricated by FabTech, a company subsidiary in Casper, Wyoming. Nalco Angola employees received specialized training at FabTech to operate the new processing equipment.

Those Angolan citizens will be part of the 60-person workforce based at the $26M facility that will include laboratories, supply chain, sales, and finance departments.

Wildlife near the Nalco Angola facility in Luanda, Angola.

“H E R E T O S T AY” The new facility represents a significant investment and a key component of Nalco Champion’s long-term strategy in West Africa.

“The strategy is we’re here to stay, therefore we want to invest locally; we want to be in control of our own costs and by doing that we contribute to the community,” says Sub-Sahara Africa business manager Lionel Israel.

As a tenant in Chevron’s manufacturing compound in Malongo, Nalco Angola received security and other services, but as a facility owner Nalco Angola will coordinate all services, most of which will be contracted to local companies. While a large investment up front, Israel says, owning processing facilities will make costs more predictable and allow for better long-term business decision making.

“The reason we are sustainable is because we own the land,” says Israel.

“Everything we do here is ours. In the future when you make business decisions, you’re not tied to another company. And you are contributing to the community yourself.”

For more than 20 years Nalco Champion has provided specialty chemicals and services for clients throughout West Africa

NIGERIA

ESCRAVOS PT. HARCOURT

EQUITORIAL GUINEA

LUBA CABINDA SOYO

ANGOLA

LUANDA

NALCO CHAMPION IN WEST AFRICA Nalco Champion is a leader in the West African petroleum marketplace with a dedicated infrastructure of in-country local assets, including Africa’s largest manufacturing facility. Our extensive workforce development program provides laboratory technician, safety, and computer training; career development; English language instruction; and Oilfield Chemicals Certification.

YEARS IN REGION

LOCAL EMPLOYEES

35+ 300+

1

3

5

2

4

6

35

ISSUE ONE

with operations in Equatorial Guinea, Angola, and Nigeria. Today, along with its joint ventures, Nalco Champion is the market leader in West Africa’s petroleum marketplace and continues to be the largest specialty chemicals and service provider to Sonangol, E.P., the Angolan National Oil Company, and its production partnership companies.

Other West Africa clients include BP, ESSO, and Total.

Over the years Nalco Champion has remained heavily committed to supporting a continued presence in the countries in which it operates by sourcing as many local natural resources as possible, hiring and training local residents, and making a positive difference in the community through charitable activities. A main driver in business decisions is increasing local content— chemical and natural resource ingredients for chemical processing—and hiring residents. The ultimate goal is help enable native residents to manage and operate all West Africa operations independently in the future. Currently Nalco Champion transports intermediate products from the United States and blends them with locally produced resources to make a finished commercial product. More than half of the finished products are blended in West Africa.

“We’re always looking at how to buy local ingredients and equipment so that we’re making as much of the chemical local as possible,” says Jared Matthias, general manager for the CAPEX region that includes Sub-Saharan Africa and Gulf of Mexico.

To achieve an ever increasing portion of local content, Nalco Champion continues to work with local companies, hire locals for all aspects the company’s operations, and phase out employment of highly experienced expatriates currently working alongside Nalco Champion’s resident employees.

“At Nalco Champion in France, Spain, Portugal, and Brazil, there are no expatriates,” says Israel. “Just the cost of travel for an expatriate is very complicated. You could take that cost and use it to finance a training center, because 10 years from now you’re still here and you still need those people.”

AN INVESTMENT IN PEOPLE A cornerstone of Nalco Champion’s longterm strategy in West Africa has been its efforts to recruit, hire, and train residents of its operational locations in Equatorial

Guinea, Angola, and Nigeria, whether provided on-site by highly experienced expatriate mentors or at the Chemical Technology Training Center in Luanda. The center provides a wide range of educational services, including laboratory technician, safety, and computer and IT training, career development, English language instruction, and Oilfield Chemicals Certification.

Nalco Champion also sponsors students in higher education programs, offering scholarships and on-the-job training for graduate new hires. Each program brings the company closer to having nearly all local employees, overcoming the inherent challenges in countries like Angola that have experienced prolonged periods of civil war and political turmoil.

“It’s a long process. It’s a lot of work.

But,” says Israel, “we have several success stories—people who joined Nalco Angola with little education and worked up through to account manager and are successful in their position.”

Nalco Champion has made strides over the past two decades to hire residents at all levels in the organization—from lab technicians and logistics specialists to offshore rig operators and account managers. Nalco Angola operates three processing facilities in Angola, which has a collective workforce of more than 200 employees, 85 percent of whom are native residents.

“The fact that we are almost 90 percent nationalized says a lot because it’s not so much about quantity of people as about the quality, the layers within the organization.

All the departments are almost completely nationalized—finance, IT, general services,” says Israel.

Nalco Champion employees have organized initiatives to support their communities with charitable activities. Recently employees teamed with their expatriate coworkers to raise funds in the United States to purchase computers for a school and an orphanage. Nalco Angola also provides monthly funding for another local orphanage.

A C U LT U R E O F S A F E T Y Although renowned for its long history of workplace safety, Nalco Champion isn’t resting on its laurels. Like ongoing career development and technical training programs, safety training is of utmost importance for employees. Over the past 18 months the company has rolled out the Excellence in the Workplace Program that

extends to all aspects of the company.

“The Excellence in the Workplace Program is about training and safety, how we operate with our customers, and how we speak to each other internally. It’s about making what we do today better for tomorrow,” says Matthias. “We’re making a lot of headway in making safety awareness something we live, eat, and breathe.”

The program goes beyond safety at work and extends all the way to the employee’s home, traveling to and from work, at the jobsite, during weekends, and on holidays with family. In addition to employees, all joint ventures and customers throughout West Africa are expected to participate.

“We don’t want this culture to be about Nalco Champion,” says Matthias. “We also want joint ventures to have the same culture embedded within their organizations.”

A BRIGHT FUTURE While many business interests have come and gone, Nalco Champion is looking ahead to the next 20 years as it continues to improve physical infrastructure and build relationships with governments, companies, joint ventures and the people of West Africa.

In Angola, a country healing after a 27-year civil war, Nalco Champion has had the opportunity to play a role in rebuilding an economy and workforce prepared for the 21st century. And while a few expatriates still provide mentoring for highly technical positions that require decades of experience, an increasing number of Angolans are now in full-time positions that offer them, their families, and their communities a brighter future.

“It’s amazing the progress Angola has made in 12 years,” says Israel. “Today we hire recent graduates who are engineers and come with a different mindset. It’s a different generation already, and we can see the change.”

#1 A Nalco Angola employee at the Luanda facility. The new facility in Malembo is scheduled for completion in late 2014. #2 A baobab tree, known as an imbondeiro tree in Angola, is common to equatorial Africa. #3 A blend tank in the Nalco Angola facility in Luanda. #4 Employee training at FabTech in Casper, Wyoming. #5 Nalco Angola facility in Luanda. #6 Zebras in Quissama National Park, about 45 miles outside of Luanda.

P I N E D A L E ,

W Y O M I N G

C LO S I N G T H E T EC H N O LO GY G A P CO M P L E X T EC H N I CA L C H A L L E N G ES A R E N O T H I N G N E W T O T H E O I L F I E L D, BUT SOMETIMES PROBLEMS ARISE T H AT C A N N O T B E S O LV E D W I T H TRADITIONAL DIAGNOSTIC TOOLS OR A N A LY T I C A L M E T H O D S .

BY RUSTY HAGGARD

FIG. 1

C D C

B I O F I L M

M A C H I N E S E T- U P

R E A C T O R

39

ISSUE ONE

THE MERGER OF NALCO AND CHAMPION EXPANDED THE CAPABILITIES OF THE NEW COMPANY IN A VARIETY OF WAYS. NOWHERE WAS THAT MORE EVIDENT THAN IN A BROADER INFLUENCE IN MICROBIAL STUDIES. THE FIRST CHALLENGE TO THE NEW MICROBIOLOGY TEAM CAME QUICKLY, FROM AN UNEXPECTED SOURCE, AND THE SOLUTION BRIDGED A TECHNOLOGY GAP THAT NEITHER COMPANY ALONE COULD HAVE ACCOMPLISHED. R I S KS AT T H E R E S E R VO I R Bacteria and bacterial growth were real issues at the Shell Pinedale facility in western Wyoming. Bacteria can create havoc, both in a reservoir and in an oil and gas production system like Pinedale.

One hundred oil wells had been drilled to feed hydrocarbon deposits into the recovery system.

Below the surface, the presence of bacteria can lead to microbial-influenced corrosion (MIC) and can ruin equipment.

Enormous clean-up expenses follow. The bacteria also can use the sulfur and other nutrients in the subsurface as a food source and grow exponentially. If uncontrolled, the blossoming microorganisms may elevate risk levels of H2S, the lethal gas with the rotten egg smell that can kill even in low concentrations.

The fact that bacteria and H2S were present at Pinedale was not a surprise to the microbiologists battling the problem.

An aging oil reservoir like the one feeding the Pinedale system often suffers from bacteria. But before the merger, Champion had been diligently working for more than a year on identifying and resolving the bacteria issue. An answer to the bacteria question was elusive, so much so that bacteria and bacterial control had become a major concern for Shell.

A former RD&E member brought forth the challenge to the newly merged team.

Tom Tekavec, a production chemist for Shell, had worked as a Nalco researcher. At Shell, he is responsible for chemical and reservoir integrity of several of the oil giant’s assets, including Pinedale. Tekavec suggested the combined microbiology team at Nalco Champion take a fresh look at the issues.

The bacteria and its growth had to be identified, understood, and controlled. Was it contributing to the H2S? Were H2S risk levels increasing? Was a new biocide needed?

His challenge to the team: Identify the root cause of the problem as well as a rapid and effective solution.

P R EV IOU SLY AT PINEDAL E Microbiologist T. J. Tidwell, during his yearlong effort studying the Pinedale issue for Champion, had established a collaborative lab space at the University of Texas School of Medicine in Houston. There, he analyzed data from Pinedale with a flow cytometer (see Figure 3A and 3B), a piece of equipment widely used in medical applications to study microscopic particles, like bacteria cells, by suspending them in a stream of fluid and passing them by an electronic detection apparatus. Flow cytometry simultaneously measures and analyzes multiple physical characteristics of cells as they flow in a fluid

stream through a beam of light. For oil and gas analysis, flow cytometry is a new and expensive tool.

“Flow cytometry is widely used in diagnosing health disorders, particularly blood cancers,” says Tidwell. “My previous position at the medical school labs helped me leverage the work space and lab access.

For oil and gas analysis, flow cytometry is cutting edge.”

Champion also began making its first foray into the use of a CDC biofilm reactor (see Figure 1), equipment that simulates identical growing conditions the natural environment provides. For microbiologists, the CDC biofilm reactor is used to grow representative biofilms from field water samples.

ENTER THE MERGER The merger of Champion and Nalco could not have been more fortuitous. Champion knew the work at Pinedale loomed large.

Tidwell’s flow cytometry lab work, and a confocal microscope that enabled threedimensional reconstruction of images from bacteria, added to Champion’s ongoing analytical capabilities.

Performing flow cytometry at the medical school lab, however, had created logistical nightmares for Tidwell. Based in Fresno, Texas, he found himself traveling to and from Houston to perform lab analysis

NALCO CHAMPION MAGAZINE

at the medical school. The situation was time-consuming.

At Nalco, the microbiology team could have taken on the Pinedale project, but the learning curve would be steep. Like Champion, Nalco had no flow cytometer in its lab. A confocal microscope? Nalco didn’t have one. The merger was timely. It changed lab and team dynamics and created a synergism with immediate impact.

“The merger was a windfall moment for us,” recalls Tidwell. “First, the support we suddenly had from the Nalco team created an exciting and positive research environment. And our parent company, Ecolab, has a widely respected global presence. It was a game-changer and brought all of us to a new level of excellence.”

Soon after the merger, Nalco Champion invested $200,000 to purchase a flow cytometer. That show of commitment convinced everyone that the new team, suddenly stronger than either team before the merger, aimed to find the solution to Pinedale’s issues.

“The legacy Champion team had started growing biofilms,” says Vic Keasler, Nalco RD&E manager of microbiology and industrial biotechnology anchor. “That was impressive because it’s used primarily outside of oil and gas lab work. They also brought in a confocal microscope, a huge addition that gave us 3D images. Our investment in the flow cytometer put us over the top.

Before the merger, our bacteriologist microscopically analyzed bacteria cells one by one in a painstaking fashion. Flow cytometry enabled us to analyze thousands of cells per second.”

Tekavec, now with Shell and knowledgeable about the issues at Pinedale, didn’t hesitate to challenge the new team.

“My survey of the Pinedale asset, seeing what Champion was doing, and my research with the microbiology team at Nalco led me to believe the newly merged team would give Shell the best chance of finding that technology solution we needed at Pinedale,” Tekavec says.

Once the merger went through, the new team made quick progress. Tekavec wasn’t surprised. “The legacy Champion team brought with them a good visual perspective of the situation,” he says. “The DNA expertise of the Nalco team strengthened the approach. We needed both perspectives to close the technology gap.”

That didn’t mean there weren’t setbacks.

Only weeks into the redoubled effort and

with the CDC biofilm reactor now set up in the lab at Nalco Champion in Sugar Land, some of the early biofilms overheated. It was unfortunate. The lengthy process of growing the biofilms began anew. Despite that daunting task, the team’s determination wasn’t swayed.

T H E A N A LY S I S No doubt H 2S was in the reservoir at Pinedale, but the team was unsure at that point if biological activity or nature was the root cause. Until the distinction was clear, the team could not develop proper treatment.

They drew up a plan. Samples would be taken throughout the Pinedale system and analyzed for three key areas: (1) the likelihood that the environment—the reservoir itself—supports microbial growth; (2) the microbes present and their level of activity; and (3) the sulfur isotope present in the H2S. The combination of data from those three criteria would be used to determine the source of the H2S. Specifically, the team was looking for something in the microorganism cells that would indicate how to treat it. ATP (adenine triphosphate), if found, would indicate actively growing cells. AMP (adenine monophosphate) would indicate dormant cells that could become active if temperatures, pH levels, or nutrients swung in their favor.

The team had one clear advantage: the Nalco Champion-exclusive AccuCount™ technology, a system used to determine the total actively growing (ATP) and dormant (AMP) microorganisms in a sample. Fluid samples were collected onto filters in nine areas at Pinedale. Extracellular ATP/AMP then was removed with a chemical wash.

Any hydrocarbon also was eliminated so as not to interfere with the ATP/AMP count.

The microorganisms present on the filters were washed with a detergent, and the ATP/AMP was collected. The team mixed that with Luciferase (another part of the

40

AccuCount technology). When that reacted with the ATP (present inside actively growing cells), the light output between the two was measured using a handheld luminometer. Readings were converted to an active microbial population number and dormant risk index.

Those samples next underwent extensive DNA sequencing with the use of PCR, polymerase chain reaction, a biochemical technology often used in medical and biological research to generate thousands to millions of copies of a particular DNA sequence. Common applications include DNA cloning, functional analysis of genes, diagnosis of hereditary diseases, and the identification of genetic fingerprints. For the Nalco Champion microbiology team, the DNA sequencing determined genomes and microbiological data for analysis and final reporting. The team would be looking for the specific organisms present, the sulfur isotope coming from the H2S, and the environmental factors of water samples collected that would provide the final insights into the likelihood that the H2S was coming from a biotic (indicating living microorganisms) source.

Figure 2 shows results from Jensen 9d-10D, the single area of the nine Pinedale locations sampled where elevated levels of microbial activity were detected. The other eight area samples showed relatively small risks of biotic H2S. In addition, at the Jensen location five species were identified that produce biotic H2S. Figure 5 shows that those five organisms represent 77 percent of the population and suggests a potential risk of biotic H2S. The team classified that risk as moderate to high.

The team concluded that of the nine samples analyzed, only the Jensen 9d-10D location showed a moderate to high risk of biotic H2S production. Overall, the analysis indicated no classic oilfield sulfate-reducing bacteria, but the sulfur source needed to

FIG. 2

J E N S E N

9 D - 1 0 D

B I O T I C

R I S K S

ATP (ACTIVE) AMPI (DORMANT) qPCR ARCHAEA SULFUR ISOTOPE TEMPERATURE/pH

300,000/ml 1.3 567,626/ml +7.5 70F/6.9

Microbial species capable of biotic H 2 S production

Caldanaerobacter, Sedimentibacter, Thermoanaerobacter, Thermodesulfobacterium, Thermotoga

OVERALL BIOTIC H2S RISK

MODERATE TO HIGH

FIG. 3A

F L O W C Y T O M E T E R U N T R E AT E D S A M P L E

MEMBRANE DAMAGE:

9.5%

DEPOLARIZED & MEMBRANE DAMAGE:

21.5%

VIABLE:

65.1%

DEPOLARIZED:

3.8%

FIG. 3B

F L O W C Y T O M E T E R S A M P L E T R E AT E D W I T H E C 6 5 7 9 A

MEMBRANE DAMAGE:

1.1%

DEPOLARIZED & MEMBRANE DAMAGE:

80.2%

VIABLE:

8.4%

DEPOLARIZED:

10.2%

FRONT FIG. 4A

C O N F O C A L

P R E S I D E N T’ S

42

L E T T E R

M I C R O S C O P E

U N T R E AT E D B I O F I L M A F T E R 4 H O U R S

THICKNESS:

48 µ m

FIG. 4B TR E AT E D W I T H K- 95

C O N F O C A L

M I C R O S C O P E

BIOFILM TREATED WITH EC6579 A A F TE R 4 HOU R S

THICKNESS:

17.5 µ m

TR E AT E D W I T H R N-21 1 + T-C HLOR

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ISSUE ONE

FIG. 5

J E N S E N 9 D -1 0 D A L L B I OT I C R I S KS M E TA B O L I S M BY G E N U S

7 7.1 % SRB

18.2% IRB

0.2% N R B /A P B

2.2% MET 0. 3% 2 .1 % A P B S R B /A P B

be identified so it could be removed as a food source for the bacteria that otherwise might use it to produce biotic H2S. The analysis also revealed a number of organisms that could influence corrosion, including acid-producing bacteria, iron-reducing bacteria, and methanogens, among others.

THE SOLUTION With analysis in hand, the microbiology team was now ready to find a biocide solution. That meant more water sample analysis, enrichment of the media in which the bacteria were growing in order to test candidate biocides, additional flow cytometry, sessile studies, and other laboratory work.

“We felt confident because our legacy Champion team, even before the merger, had tested the biofilms with new CDC biofilm reactors,” says Vic Keasler. “We now had flow cytometry in-house. And we used confocal laser scanning microscopy [CLSM].” The CLSM technique, often used in cell biology, genetics, and numerous other biological science disciplines, provides high-resolution in-focus images from selected depths that are subsequently reconstructed with computers. Some of the three-dimensional images from the Nalco Champion team’s work are shown on the previous pages.

A sessile biocide efficacy test was performed with field water samples. Using biofilms, the team tested an untreated biofilm along with six candidate biocides.

The team cultivated the biofilms for almost

The team also reported EC6579A would likely increase its performance level once they moved trials out of the lab and into the field. “Continuous injection of the biocide in the lab for a four-hour period is one thing,” says Tidwell. “Once we can begin a batch treatment, we should see an increase in the effectiveness of this recommended solution. In the field, we think this will translate to lower risk of microbial-influenced corrosion. It’s going to provide better overall reservoir integrity at Pinedale.”

Field trials are still ahead, and the cold weather conditions of a Wyoming winter may create additional testing in the future.

The implications of this initial effort by the team, however, weren’t lost on team leader Vic Keasler. “Neither team could have done this on its own before the merger,” he says. “There’s no way our competition can pull this off. We have the strongest team in the industry and all the tools at our disposal to solve even the most challenging microbial issues.”

The Pinedale project touches on practically everything Nalco Champion can do from an anti-microbial perspective. By sampling at nine locations and conducting numerous and varied studies, the team verified the risk levels for H2S and microbial-influenced corrosion throughout the Pinedale system. It replicated and analyzed the DNA of the bacteria and grew the bacteria as a biofilm to explore every biocide option. Qualifying the biocide and the

eight weeks to ensure anaerobic conditions were optimum when the sessile test began. Figure 6 shows the results. Data indicated that the biocide EC6579A was able to remove more of the biofilm than its competing biocides. But a definitive solution required more testing.

Three weeks later, the team purposely increased the viable bacteria concentration in fresh samples from Pinedale to prepare for the planktonic kill study. In this next step, candidate biocides would interact with the bacteria to test each one’s effectiveness in reducing the number of viable microbes in the sample.

As illustrated in Figure 4B, the top three chemistries from the earlier test were used: K-95, EC6579A, and RN-211 + K-160. All three were able to reduce the number of viable microbes in the kill study.

Once again, however, the EC6579A proved to be the most effective, just as it had proved in the sessile study.

T EC HNOLOGY GAP: C LOSED One of the goals at Pinedale was to better understand the microbial H2S risk. An equally important goal was to build client confidence in the Nalco Champion microbiology team and in its recommended solution. The final report conclusively showed EC6579A as the chemistry to control the bacteria. The conclusions and recommendations were made through rigorous tests performed using the latest in FIG. 6

C O N F O C A L

M I C R O S C O P E

M E A S U R E M E N T S O F B I O F I L M S A F T E R 4 - H R B I O C I D E T R E AT M E N T biofilm

K95 EC6579A VX11255 K-154 K-139

(µm)

thickness

%

reduction

23.5

51.0%

17.5

63.5%

18.0

62.5%

22.0

54.2%

26.0

45.8%

microbiology lab equipment. With proven uses in the medical field, flow cytometry, CLSM images, and biofilms were successfully employed in the Pinedale study to great advantage.

An additional result: developing and certifying a new biocide was not necessary.

Because EC6579A would work, the team avoided the time-consuming task of getting a new biocide approved by the EPA and could begin field trials with the in-house chemistry immediately.

ability ability to to grow grow biofilms for the exclusive AccuCount technology are testaments technologyboth both are testato expanded capabilities.

Without the ments to expanded capabilities.

Without merger, those capabilities would still still be the merger, those capabilities would housed in in two be housed twoseparate separateplaces placesand and with two separate separateteams. teams.Instead, Instead, the the clientcliis ent is confident thattrials fieldwith trials the confident that field thewith recomrecomended biocide begin. micromended biocide cancan begin.

TheThe microbiolbiology team auditthe thePinedale Pinedale system, ogy team willwill audit perhaps in in the the Wyoming Wyoming winter, winter, using using the AccuCount TheThe technology gap?

AccuCount technology. technology. technology It’s closed, tightertighter than ever. gap?

It’s closed, than ever.

ONE YEAR IN On July 20, 2011, Doug Baker, Ecolab’s chairman, president, and chief executive officer, addressed the announcement of the impending merger with Nalco, saying, “This merger is a strong and vital step in broadening our business platform and enhancing our global growth opportunities.”

The merger led to the development of Ecolab’s Global Energy Services division and paved the way for the Champion Technologies/CorsiTech acquisition announced just over one year later. Today Nalco Champion represents 26 percent of Ecolab’s overall business portfolio, making Global Energy Services the company’s largest division.

The following facts and stats revisit the merger and acquisition and celebrate our unified people, places, and purpose.

1 DEC2011

ECOLAB AND NALCO MERGE Ecolab and Nalco shareholders overwhelmingly approved the merger of the two companies. With subsequent receipt of the final remaining antitrust approval, Ecolab Inc. completed the merger with Nalco Holding Company. Erik Fyrwald, Nalco’s chairman, president, and chief executive officer, said, “This is a compelling strategic transaction that delivers an immediate premium to our shareholders and the opportunity to participate in the significant upside potential of the combined organization.”

SUSTAINABILITY CO R E TO O U R P U R P O S E

Our solutions help solve critical energy issues while reducing impacts on the environment. With world energy demand projected to grow more than 50% by 2035, improved performance, reduced costs and greater environmental efficiencies lead to exponential outcomes for our customers and the world.

THE

CIVIC

50

In 2013, Ecolab was named one of the U.S.’ 50 most community-minded companies by the National Conference on Citizenship (NCoC) and Points of Light. www.civic50.org

S CA N FO R M O R E See the entire Civic 50 list by scanning.

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ISSUE ONE

0=1

G OA L Z E R O I S O U R N U M B E R O N E P R I O R I T Y As a zero harm organization, we strive for Goal Zero: zero accidents, zero incidents, and zero environmental releases. Protecting the environment and the health and safety of our employees, our customers, and the communities in which we live and work are among our highest priorities.

490 DAYS

BUILDING ECOLAB’S GLOBAL ENERGY SERVICES

950+ Nalco Champion actively maintains more than 950 industry patents.

490 days elapsed between the Ecolab/Nalco merger and the Champion Technologies/ CorsiTech acquisition. That’s one year, four months, and three days, or 11,760 very busy hours.

33rd out of 100

Ecolab ranked 33rd out of 100 named to Forbes magazine’s 2013 list of “The World’s Most Innovative Companies,” continuing a three-year trend of inclusion on the list since annual ranking began in 2011. “Our innovation process involves a holistic view of the environmental, economic, and social impact of a product across its life cycle,” said Dr. Larry Berger, Ecolab chief technical officer and executive vice president, research, development & engineering. “This approach is foundational to our ability to help customers realize dramatic performance improvements and sustainability goals.” In 2013, Ecolab invested $188 million in research and development.

133,000+ SQ. FT.

WAT E R F LOWS T H R O U G H OUR ENTIRE BUSINESS

“Through [Ecolab’s] participation in the water sector and our strategic planning work, we identified water management as a key future growth segment for us, given its growth characteristics and importance to our customers… Nalco’s water and oil and gas services end markets, in particular, represent excellent long-term growth potential as the world deals with the quality, cost, and availability of those key natural resources.”

– DOUGLAS M. BAKER, JR., ECOLAB’S CHAIRMAN, PRESIDENT, AND CHIEF EXECUTIVE OFFICER

N A LCO C H A M P I O N ’S N E W H E A D Q UA RT E R S Scheduled for completion in early 2016, the new Nalco Champion headquarters will house more than 1,000 employees with modern workspaces and training facilities. The project also will include renovation of Nalco Champion’s existing 45,000-square-foot Sugar Land office building to expand research, development, and engineering (RD&E) lab facilities.

6,800 D E D I C AT E D A N D D R I V E N

Nalco Champion’s 6,800 employees include 4,000+ sales and service professionals and 1,600+ supply chain specialists worldwide.

NALCO CHAMPION MAGAZINE

10 APRIL, 2013

ECOLAB ACQUIRES CHAMPION TECHNOLOGIES/CORSITECH

Ecolab Inc. closed on its acquisition of Champion Technologies/ CorsiTech through a transaction valued at $2.3 billion. The move better positions Ecolab’s Global Energy Services to fully capitalize on major energy opportunities and strengthens its position in its fastest-growing segment.

4 WEEKS E AST E R N H E M I S P H E R E CO R E M A N U FAC T U R I N G

The biggest construction project Ecolab has ever undertaken, the core manufacturing plant for the Eastern Hemisphere is scheduled for mechanical completion in Summer, 2014. Commercial orders will begin shipping in September from Jurong Island, Singapore.

37,500,000 MILES C R O S S I N G N O RT H A M E R I C A Nalco Champion’s infrastructure and ability to serve customers in North America is unmatched. In 2013, our representatives, technical experts, and delivery specialists traveled more than 37.5 million miles, going the extra mile to serve our customers and ensure product deliveries were on time and on spec.

1.5

MILLION HOURS WITHOUT INCIDENTS

A R O U N D T H E W O R L D I N 8 E V E N TS In April and May 2013, during the first four weeks of the new Nalco Champion, Steve Taylor and senior leaders conducted eight employee town hall meetings to meet with more than 2,500 team members, getting their perspective on the future of the new organization and sharing messages about safety, our customers, and strategic goals.

The global tour took leaders to Calgary, Alberta; Corsicana, Midland, and Houston, Texas; Singapore; Dubai; Aberdeen, Scotland; and Rio de Janeiro, Brazil.

N 1° 16' 33" E 103° 40' 36"

46

As construction continues on Nalco Champion’s new manufacturing facility in Jurong Island, Singapore, employees and contractors recently celebrated 1.5 million hours worked with zero safety accidents or incidents.

Safety is clearly the top priority, even before production begins.

VITAL OUR SHARED VISION

As an Ecolab company, we share a common vision of providing and protecting what is vital: clean water, safe food, abundant energy, and healthy environments. We help energy companies extract more energy with fewer resources. We help our customers manage water through conservation, recycling, and reuse. And we also help all of our customers use less energy—and reduce their environmental footprints—by identifying and treating process-related problems and providing products that minimize energy use.

160

0

47

APRIL 2014

1 OF 56

CLIMATE PERFORMANCE LEADER

Ecolab was one of only 56 global companies named to the 2013 CDP Global 500 Climate Performance Leadership Index (CPLI) and one of 60 global companies named to the CDP Global 500 Climate Disclosure Leadership Index (CDLI). Those leading environmental indices honor companies for pioneering efforts in transparency, measuring greenhouse gas emissions, combating climate change, and growing low carbon economies.

RIES

16

0

CO

T UN

KAZAN

NEW RESEARCH AND D E V E LO P M E N T C E N T E R I N T H E E AST E R N H E M I S P H E R E In September 2013, Master Chemicals Nalco Champion opened its new research and development center and regional headquarters in Kazan, Tatarstan. “I believe that Master Chemicals Nalco Champion will be a reliable, strategic partner for us not only in the oil and gas sector, but also in the formation of our republic’s human resources,” said Rustam Minnikhanov, President of the Republic of Tatarstan.

400+

NEW CAREERS GLOBAL KNOWLEDGE NETWORKS

With some of the most experienced and innovative people in the industry, we are able to leverage our knowledge sharing network, CORE, to solve problems, bring people onboard faster, and create solutions for the toughest challenges in finding, producing, and refining oil and gas. We maintain numerous networks in our knowledge sharing system organized around product lines, market segments, and other business support functions, we plan to expand our networks across multiple disciplines from infrastructure to innovation to deliver first class customer focused solutions.

When Nalco Champion came together as one organization, it was clearly an effort to grow our ability to serve customers and our business with those customers. It also means great opportunities for our people and those looking for rewarding career opportunities. We plan to add more than 400 talented professionals to our global team in 2014.

1+1=3 MORE THAN NUMBERS

G LO BA L R E AC H , LO C A L E X P E RT I S E Nalco Champion conducts operations throughout the world supported by 50 global manufacturing facilities and 13 technology centers. We are headquartered in Houston, Texas, with regional headquarters in Rio de Janeiro, Brazil; Calgary, Alberta; Aberdeen, Scotland; Dubai, UAE; and Singapore and Shanghai, China.

More people. More locations. More experience. More technology. But size alone can’t solve challenges. For our customers, one-on-one help, backed by a global knowledge network, is the real value of our global footprint. Through a singular focus on specialty chemical programs, we personally deliver insights that yield meaningful, quantifiable value to thousands of operations every day.

FRONT

P R E S I D E N T’ S

L E T T E R

“WE ARE FOCUSED ON BEING THOUGHTFUL IN OUR OPERATIONS AND MAKING SUSTAINABILITY A PART OF OUR BUSINESS STRATEGY.” JUAN ALVARADO DIRECTOR, SH&E NALCO CHAMPION

NALCO CHAMPION MAGAZINE

48

COMMUNITY

5 0 F R O M T H E VA U LT 5 1 EXPERTISE 52 E M P LOY E E P R O F I L E 53 INFOGRAPHIC 54 TRAINING 55 REGIONAL PROFILE 56 CASE HISTORY 58 SEEN AND HEARD 60 CORE KNOWLEDGE 6 1 RECRUITING

COMMUNITY

F R O M

T H E

V A U L T NALCO CHAMPION MAGAZINE

50

S U D S , S A LT, A N D S O D I U M A LU M I N AT E WHERE OUR BUSINESSES BEGAN

1

#2 Ecolab 1923 Traveling salesman M. J. Osborn forms the Economics Laboratory Herbert A. Kern founds the Chicago (EL) company to sell Absorbit, a Chemical Company to market sodicarpet-cleaning product targeted to um aluminate to municipalities and hotel managers. By 1924, EL adds industrial plants for boiler feedwater four employees to its roster and a treatment. In 1922, P. Wilson Evans non-sudsing cleaning compound to founds the Aluminate Sales Corpoits portfolio. Better than any other ration, selling sodium aluminate to soap on the market for restaurants’ railroads to condition the water in mechanical dishwashers, EL’s Soilax steam locomotives. The two comis well received and provides more panies merge in 1928, creating the stable financial footing for the National Aluminate Corporation. young company.

#1 Nalco 1920

#3 Champion Technologies 1953 Courtney Thompson starts Champion Chemicals to sell 100-pound sacks of salt to service companies to produce drilling brine. Through the 1950s, Champion’s product line expands beyond salt and its first oilfield chemical product, scale-treating Gyptron® SD, to include corrosion inhibitors (Cortron®), combination scale and corrosion inhibitors (Scortron®), emulsion breakers (Emulsotron®), and paraffin chemicals (Flexoil® and Flotron®).

2

#4 CorsiTech 1963 Two Corsicana, Texas, oilfield producers, George Weinschel and Robert Wheelock, begin making production chemicals for their own operations. They found Jetco Chemicals to sell their surplus. In 1968, an expansion into fatty amine production positions the company to serve a variety of industrial markets, including asphalt and lubrication additives, mining, personal care, inflow and infiltration, agchem, and ink/pigment dispersants.

3

4

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E X P E R T I S E ISSUE ONE

COMMUNITY

Papers and Presentations (2013) Within the 44 papers presented and published in 2013 are the results of Nalco Champion’s intense commitment to identifying, nurturing, protecting, and growing innovative technologies with real-world applications. From the structure of our organization—tiered to address today’s challenges and tomorrow’s frontiers—to our commitment to staffing and equipping a global RD&E team with unmatched resources, we are uniquely positioned to provide practical thought leadership to a rapidly changing marketplace.

WELLCHEM

OFC

DOWNSTREAM

TITL E Innovative Friction Reducer Provides Improved Performance and Greater Flexibility in Recycling Highly Mineralized Produced Brines

T I T LE Development of a Novel Kinetic Hydrate Inhibitor and Corrosion Inhibitor Package for Wet Gas Application

T IT L E Visbreaker Performance Improvement by Optimisation of Process Conditions and Application of Chemical Additive Treatment Program

BR IE F A salt-tolerant, water-based dispersion polymer friction reducer allowed well operators in the Marcellus Shale to reuse produced waters containing high total dissolved solids. The data presented in the paper details the environmental, economic, and operational advantages of this technology over the previous inverse-emulsion polymer technology.

AUTH ORS Marcelle L. Ferguson, SPE, Nalco Champion; Clifford C. Anderson, SPE, Cudd Energy Services; Peter B. Eichelberger, SPE, Nalco Champion; James K. Hallock, SPE, Cudd Energy Services; Xiaoping (Victoria) Qiu, SPE, and Rebecca L. Roell, SPE, Shell Oil Company P R ES E N TE D SPE Unconventional Resources Conference USA, April 10–12, 2013, The Woodlands, TX, USA Paper 164535

BRIEF The application of low dosage hydrate inhibitors (LDHI) in the North Sea helps unlock small fields developed as wet gas subsea satellites and served by centralized existing gas processing facilities. This paper describes the qualification process, lessons learned, and the successful first application of a step-change polymer technology—a new fit-for-purpose kinetic hydrate inhibitor that reduced project expenditures and maintained subcooling protection.

AUT HO R S P. Webber, R. Harrington, R. Jones, N. Morales, and J. Anthony P R ESE N T E D Offshore Technology Conference Brazil, October 29–31, 2013, Rio de Janeiro, Brazil

B R IEF Nalco Champion’s visbreaker optimisation program dramatically increased the overall efficiency of the visbreaker unit, with average annual conversion increasing from 14.8 to 16.2 percent and unit turnaround time decreasing by nine days. Nalco Champion coupled unique laboratory processability characteristics of visbreaker feed with actual unit operational observations to devise the treatment described in this paper.

AU T HOR S A. Nedelchev, D. Stratiev, G. Stoilov, R. Dinkov, K. Lepidis, R. Sharpe, C. A. Russell, N. Petkova, and P. Petkov PR ESENT ED Oil Gas European Magazine 39, 03/2013, 147–153.

S CA N for a complete list of 2013 papers.

NUMBER OF PAPERS PUBLISHED IN 2013

44 PAPERS PRESENTED AT NACE’S CORROSION 2013, ORLANDO, FLORIDA

7

PAPERS PRESENTED AT PETROPHASE 2013, RUEIL-MALMAISON, FRANCE

7

PAPERS PUBLISHED IN ENERGY & FUELS JOURNAL

4

COMMUNITY

E M P L O Y E E

D AV I D S T E P P L E R REGIONAL SALES MANAGER R O C K Y M O U N TA I N S , S O U T H NALCO CHAMPION, OILFIELD CHEMICALS HOMETOWN L A M B E R T, M O N T A N A (POP: 315) BASED IN DENVER, COLORADO YEARS WITH NALCO CHAMPION 7. 5 INTERESTS SPENDING TIME WITH W I F E A N D BA BY B OY; CYC L I N G, S H O OT I N G, A N D F LY I N G

“At my wedding reception, Dale Kasowski (district account manager, Nalco Champion) asked my father-in- law if I would be interested in a job selling chemical. I didn’t think so, but I interviewed with him. Setting the money part aside, even in the interview I could feel that they were a team. They had a loyalty to one another and to their people that I hadn’t experienced before. I wanted to be a part of it.”

“I’m appreciative for our customers’ business, but more that we get the opportunity to work with them as people. We have really amazing customers we’ve learned so much from, and that’s what I’m most appreciative for.”

P R O F I L E NALCO CHAMPION MAGAZINE

“Every day is the best day ever on the job. Today’s the best day. Tomorrow is even better.”

“I was raised on a farm and ranch 20 miles from Lambert. We had one school for K–12, and my class was the biggest—14 people. I had a science teacher who was phenomenal— she taught everything: earth science, biology, anatomy, physics, chemistry. She opened up my life to loving science.”

“I love individual challenges, but life is more than just individual challenges.

It’s about people and doing the right and just and fair thing by your people.

I get to work with the same people every single day, and I have the opportunity to influence them as they do me. What a great spot to develop as a person.”

“The Bakken kind of overtook our farm. My dad was a farmer/ rancher, but he had worked drilling rigs on the side when I was young. So I grew up around it, but I wasn’t immersed in it. I had no intention of going into the energy business.”

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S U S TA I N A B I L I T Y I S C O R E TO O U R P U R P O S E Sustainability is more than Ecolab’s vision for the future. We are delivering solutions that make the world cleaner, safer, and healthier today. As the global leader in water, hygiene, and energy technologies and services, we help our customers meet their sustainability goals at more than 1.3 million locations around the world.

Our Principles

Our Approach

Our principles guide how we conduct business every day.

We work hard to manage our global operations with care for the health, safety, and prosperity of our employees, customers, communities, and the environment.

We consider how each of our solutions reduces costs, increases efficiency, minimizes use of natural resources, and improves human and environmental safety.

SAFETY

WATER

ENERGY

AIR

WASTE

ASSETS

AIR

• Our commitment to personally delivered service is unparalleled, enabling us to support continuous improvement of our customers’ sustainability strategies.

• We invest heavily in innovation, enabling our team deliver new solutions to address complex water, waste, energy, air, safety, and asset challenges.

WASTE ASSETSdeliver quantifiable • Our comprehensive solutions results, proving ROI for customers and their communities.

• We’re dedicated to internal improvements and our commitment to internal sustainability goals.

Practical Application

Abundant Energy In the simplest terms, we help customers within the global natural gas, petroleum, and petrochemical industries solve their most technically complex problems safely. To preserve and enhance energy supplies, the Global Energy segment is: • Developing strategies and applications to maximize oil and gas production • Offering scientific solutions to ensure efficient flow of oil and gas in production lines • Providing the chemical programs and automated systems that improve efficiency • Creating new methods to reduce water and save energy.

WellChem Technologies, a division of Nalco Champion, has designed a new tool to improve product development—an environmental and health hazard profile scoring system that we call eVerified—“e” to emphasize our focus on environmental sustainability and “Verified” to underscore the process to achieve the score using simple and readily verifiable sources of data.

Hazard Communications

Relevance

Product Development

Hazard Communication To communicate the human and environmental hazard profile of a product in a simple, visual way.

Product Development To be simple and efficient for researchers to use while developing new products, rather than after they had reached a technical solution.

Relevance To develop a system that is quick and easy to adapt to regulatory changes or customer demands.

COMMUNITY

T R A I N I N G NALCO CHAMPION MAGAZINE

H I R E . E D U C AT I O N .

P R E PA R I N G A G L O B A L W O R K F O R C E F O R E N E R GY ’ S TOUGHEST FRONTIERS

BY A I M E E B O R D E R S

First, we hire carefully. We seek men and women with an entrepreneurial spirit. They are versatile and flexible. They don’t stop until they solve a challenge. Their work with our customers is motivated by their unrelenting resolve to succeed. Our employees are exceptional.

But before they begin the work of solving energy’s toughest challenges, they get schooled by one of our universities. Our intensive training programs combine online resources, instructor-led coursework, experience in the field, and one-on-one mentoring into comprehensive, highly specialized experiences.

The result? Universities that offer more than training—they foster competency. And employees who are not only among the best prepared in the industry but fully equipped to collaborate with customers to improve efficiency, effectiveness, and operational economics.

“We hire the best people available,” says Jose Gonzalez, global director of training and development. “We invest in their development, enroll them in a university program, and assign them mentors. By the time they’ve completed a one-year to 18-month training program, they are capable and competent.”

The WellChem and Downstream business divisions offer a single university experience,

specialized to the employee. The Oilfield Chemicals division provides three distinct university experiences tailored to key oil and gas growth areas. A brief description of each university program follows.

WELLCHEM UNIVERSITY WellChem helps major oilfield service companies with solutions that enhance their ability to drill, cement, and stimulate a well—wherever in the world exploration takes them.

WellChem University offers a 10- to 15-month training, specializing in sales, marketing, or research tracks. Employees are assigned primary trainers to guide them through two training phases. In Phase I, employees complete online modules, videos, and onsite and offsite classes and meetings with subject matter experts (SMEs) to receive detailed training in their specific role. In Phase II, employees master the technical fundamentals within their sales, marketing, or research roles, including specific product and service profiles.

OILFIELD CHEMICALS A specialty chemical partner dedicated to the oilfield, our Oilfield Chemicals (OFC) division provides the insight and chemical expertise to help oil and gas companies make decisions that lead to increased production in a safe and environmentally sustainable way. Select OFC employees receive intensive field experience through one of three advanced training programs.

CapEx College A mentor-based training program, CapEx College focuses on the capital expenditure marketplace in the Gulf of Mexico, West Africa, and offshore Brazil. Participants spend six months learning the technical aspects of their new careers, six months developing necessary sales and communication skills, and six months preparing and presenting solutions aimed at securing new business opportunities.

Unconventional Resources College Unconventional Resources (UCR) College provides an 18-month training experience

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LESSON LEARNED: CHEMICAL SPLASH IN REFINERY Reinforce proper risk assessment requirements at all levels. Review the adequacy of spillways and calibration cylinders installed, and always ensure that all elements of PPE are in use for all jobs with possible exposure to chemical contact.

focusing on shale and other unconventional onshore production in the lower 48 states.

Phase I is dedicated to safety and servicing the oilfield. Phase II involves travel to shale plays for technical training through case studies, fieldwork, and lab testing. Phase III focuses on account management. When training is complete, the trainee is assigned to a shale play in the U.S. Oil Sands University This 12-month training program concentrates on the oil sands business in Canada.

Phase I provides training in problem solving, service, safety, and technical fundamentals and an introduction to oil sands, including water, steam-assisted gravity drainage (SAGD), and mining/extraction/upgrading/ refining (MEUR). During Phase II, employees specialize in water, SAGD, or MEUR and receive additional mentor-supported training in safety, account management, and technical challenges.

DOWNSTREAM UNIVERSITY Our Downstream division applies new chemistries and automation offerings to refinery and petrochemical plants. These solutions help our downstream customers improve production, extend asset life, and reduce operating costs.

Downstream University (DSU), an 18-month training program, focuses on building technical knowledge through interaction with SMEs and practical handson field experience for the new sales engineer. Participants study technology in the areas of water treatment, refinery and chemical process treatment, and finished fuel additives. A DSU student learns foundational sales and communication skills that help facilitate value-added project work that is clearly linked to our customers’ key business drivers.

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Nalco Champion in Asia Pacific Asia Pacific’s energy demand growth is projected to exceed the world average, with regional emerging markets growing at the fastest pace. Geopolitical and cultural diversity, evolving laws and regulations, a broad customer base, and varied buying behaviors challenge operations in the region.

OFC + DOWNSTREAM

OFC

AU STRA L IA , B RU NEI , C HI NA , JA PA N , IN DI A , I ND O NES I A , MA L AYSIA , NEW Z EA L A ND, PA PUA N EW G U I NEA , T HA I L A ND, VIE TN A M, PHI L I PPI NES, KO R EA

Insight Growing niche segments including FLNG, MRU, Deepwater, and EOR, plus the birth of unconventional coal seam and shale gas in the region require a bespoke, differentiating combination of technology, service, and solution innovation.

Customer Base International, national, and independent production and processing companies in the oil and gas sector.

Market Segments Asset Integrity, Automation, Flow Assurance, Production Maximization, Water Management.

Growth Focus • Deepwater Aiding production through on-site, value-added integrity management, scale control, phase separation, and flow assurance solutions.

• Enhanced Oil Recovery (EOR) Supporting oil and gas field EOR treatments and improving recovery through effective flowback and processing innovation.

• Asset Integrity Protecting assets, minimizing risk, and extending operational longevity.

• Artificial Lift Enhancing the production of aging installations with mechanical and chemical solutions.

• MEG Recovery Units Providing custom products suitable for MRUs, which, while critical to deepwater and gas system production challenges, present technical challenges to common

REGIONAL HEADQUARTERS

SINGAPORE

DOWNSTREAM TAIWAN, SINGAPORE, VIETNAM KEY GROWTH MARKETS CH IN A , IN DI A

OFC M YANM AR KEY GROWTH MARKETS AUST RALI A, C HI N A , I ND ONESI A, M ALAYSIA

production chemicals.

• Unconventional Resources Designing water management, production, and process treatments for unconventional oil and gas operations.

• Flow Assurance Mitigating the impact of hydrate and paraffin formation, asphaltenes, and emulsions for safer, more efficient production.

DOWNSTREAM Insight Asia Pacific Downstream represents nearly one-third of global market spend. Key business drivers include capacity addition, opportunity feedstock processing, tightening of HS&E regulations, energy savings, and water conservation initiatives.

Customer Base International oil companies, international chemical companies, national oil companies and independents in the refining and petrochemicals sector.

Market Segments Refining, Fuel Additives, Primary Olefins, Reactive Monomers, Water Treatment, Waste Water Recycle, and Coal/Methanol to Olefins.

Growth Focus • Refining Chemical solutions and automation for Crude Unit desalting, corrosion, and fouling control, including superior high acid crude processing and conversion unit fouling control technology.

• Primary Olefins Treatment solutions for Primary Fractionator, Light-end Units, Charge Gas Compressors, Dilution Steam System, Pygas, and Mixed C4 System.

• Reactive monomers Fouling and corrosion solutions for Styrene, Butadiene, and C3

Derivative process, including technology to replace HQ in AN, VAM, and MMA production; Green Retarder technology for Styrene plants.

• Additives Crude Oil/Fuel Oil/ Bitumen H2S Scavenger; Diesel Lubricity Improvers; Heavy Oil/Distillates Pour Point Depressant; Jet Fuel Corrosion Inhibitors; Gasoline Stabilizers.

• Water Treatment Chemical solutions and automation for Waste Water, Boiler, and Cooling Water treatment in both Refining and Petrochemicals sector.

• Waste Water Recycles Integrated Solution, which includes design, build, operate, and maintain of a waste water recycle plant/process.

FEEDING INNOVAT ION: HOW FOOD AND B EV ERAG E EXPERI EN CE B R OU G HT NEW ENER GY TO T HE OI LFI ELD In the hours immediately following the closing of the Ecolab/Nalco merger, RD&E teams from each company began discussing how to leverage their mutual experience and expertise. First up—peracetic acid.

Peracetic acid (PAA) is a versatile, EPA-approved oxidizing biocide that has been used by Ecolab globally as a no-rinse antimicrobial agent for nonfood and food contact since 1985. More recently, PAA has proved its value as a multifaceted water-management tool at hundreds of unconventional well sites in the US. By leveraging Ecolab’s extensive production experience, Nalco could immediately buy PAA at a much lower cost. More importantly, the company had a partner to help address the limitations of the chemistry that had been purchased historically.

Said Rich Staub, corporate scientist, global antimicrobial anchor, Ecolab, “This is a story of continued innovation. One of my group’s functions is global cross-divisional development. It’s exciting to take the things we understand and apply them to a completely different customer and challenge set.”

Vic Keasler, Nalco Champion’s RD&E manager— microbiology and industrial biotechnology anchor, added, “Ecolab introduced us to the technology and brought us up to speed on how to dose it, use it, and monitor it. But at that point the Nalco Champion team did what we do best—which is take it to the field and optimize the application.”

Case study in point—Efficient Pit Water Microbial Control with EC6734A, in which Nalco Champion’s team leveraged PAA in a treatment program that successfully managed microbial levels throughout irregular pit use cycles.

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E F F I C I E N T P I T WAT E R M I C R O B I A L C O N T R O L W I T H EC 673 4 A CHEMICAL PROGRAM EXCEEDS PERFORMANCE E X P E C TAT I O N S F O R L E S S T H A N $ . 0 7/ B A R R E L

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F I G . 2 Shows average ATP data before and after treatment. The initial concentration of EC6734A was high, but the concentration was lowered to the continuous level. The trial demonstrated Nalco Champion’s ability to manage the customer’s microbial risk while being economically feasible.

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RIDE IT OUT If your vehicle is about to enter a ditch, do not attempt to overcorrect. Enter, slowly apply braking and keep vehicle straight.

The outcome nearly every time is only the cost of a tow.

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SOLU TION Nalco Champion collected samples of fresh and pit water in order to identify an optimized pit biocide treatment program that would continuously treat all influent water (see Figure 1). After extensive testing of the water in the holding pits, Nalco Champion’s RD&E team recommended a treatment of EC6734A and sodium hypochlorite (NaOCl purchased from a registered third party supplier for use as a biocide) in order to achieve the best microbial kill level for pit

CO N C LU SION EC6734A combined with NaOCl was very effective in keeping the microbial levels within control in the pits. The average cost of pit water treatment was less than $0.07/ barrel, as shown in Figure 3 (including the cost of the chemical plus analytical costs and manpower). The combined chemical program was tremendously valuable to the customer’s operation, and it exceeded their expectations from both a performance and cost standpoint.

For more information on the EC6734A pit water control project, please contact your local Nalco Champion associate.

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S ITUATION The combination of sulfates, bacteria, and stagnation in the holding pits alarmed the producer. Sulfate reducing bacteria (SRBs) reduce sulfates to create H2S. If the bacteria level was not controlled, the formation could sour and result in a major concern for the producer.

The goal of the treatment program was to keep the pits at low microbial levels throughout the pit-use cycles in an automated manner, with minimal oversight.

R ES U LTS Optimal treatment was achieved through the use of both EC6734A and NaOCl for biocidal treatment (see Figure 2). Continuously treating the influent water with this strategy provided maximum biocidal efficacy for influent water, combined with some residual benefit to ensure continued activity during times that the pit was not being used for fracturing operations.

AT P VA LU E

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BACKG ROU N D When municipal water became cost prohibitive, a major producer sourced well water for its hydraulic fracturing operations. The well water was stored in holding pits designed to be equalized, simulating one large pit.

At times, the pits turned over quickly as the source wells filled the pits and water was pulled out simultaneously for frac jobs.

Long periods of stagnation also occured, when no water left the pits. The irregular flow of water through the pits likely contributed to much higher levels of sulfates and bacteria and higher scaling tendency in the new source water.

water as well as the best residual activity.

Safety is always Nalco Champion’s priority.

Testing determined isolated dosing locations for the chemicals to ensure operator and equipment safety for the application.

Multiple biocides can achieve better results, as the kill mechanisms are different, and in this case, the biocides were complimentary.

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EC6734A is a biocide that acts by oxidizing proteins in microbial cells for its biocidal kill mechanism. It is a rapidly reacting broad-spectrum biocide with post oxidation byproducts of water and acetic acid.

F I G . 1 Comparison of the bacteria levels (measured by the ATP method) in the original municipal source, the wells, and the pit without treatment. Bacteria levels are shown to increase significantly when left untreated.

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C O N F I N E D S PA C E S Treat all confined spaces as hazardous. Do not enter a space until the air has been tested for oxygen, flammable vapors, and toxic chemicals, and exit the space immediately if an unsafe condition develops.

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January 2014

#1 Singapore Teambuilding with a Difference For the recent Nalco Champion Oilfield Chemicals Regional Operations Meeting, held in Singapore, a teambuilding event was planned for the final afternoon. Instead of the usual outdoor activities of paintball or karting, the team worked with Lions Befrienders to sponsor the door-to-door distribution of groceries and essentials to 40 needy residents staying in one-room rental flats in Clementi.

The team neatly packed the bags and distributed among the residents, taking time to spend quality time with each one.

Wilson Yeo, regional sales manager, thanked the participants for their team work, effort, dedication, and time given. “The joys that we brought to the old folks are beyond imagination, leaving them with lasting memories to cherish,” he said.

JA N UA RY 20 14 #2 Aberdeen Giving Tree During the second week of November 2013, Christmas trees appear all across Aberdeen city with gift tags attached. The Giving Tree appeal, sponsored

by Chevron and supported by many local businesses and the general public, distributes new toys to young people who otherwise would not receive a gift at Christmas.

The Nalco Champion office in Aberdeen has supported the initiative for many years, and in 2013 the team donated 80 gifts to support children living in poverty in the North East of Scotland.

Leigh-Anne Walker does an amazing job coordinating the initiative. “The Giving Tree is a great way for us to bring a little cheer to less fortunate children at Christmas. Everyone enjoys doing their bit for charity, and we would like to continue to support this every year,” she said.

D EC E M B E R 201 3 #3 World Environment Day Since the Ecolab Foundation’s inception in 1986, Ecolab has contributed over $71 million to non-profit organizations across the US. Combined with corporate giving, in-kind donations, and the value of employee volunteerism, Ecolab’s total community contributions in 2013 totaled over $9.6 million.

Through the Foundation, Ecolab celebrated World Environment Day on June 5, 2013, with volunteer activities around the U.S. In partnership with The Nature Conservancy, employees in the Twin Cities, Minn., Naperville, Ill., Sugar Land, Texas, and Greensboro, N.C. worked on preservation and restoration projects. A team from Nalco Champion’s WellChem division was one of four employee volunteer groups to spend part of the work day volunteering with The Nature Conservatory’s Texas City Prairie Preserve, where they cleaned up shoreline trash along the borders of Dickinson Bay and Moses Lake to help protect local wildlife.

NOV EM B ER 201 3 #4 Nalco Champion and Wood Group Donation Funds Children’s Health Research and Treatment During the Deepwater Operations Conference in Galveston, Texas, Nalco Champion and Wood Group furthered their long-standing support of Sky High for St. Jude with a check for $5,000. The organization is dedicated to funding pediatric research and treatment of catastrophic diseases and supporting the Ronald McDonald House of Memphis.

OCTOB ER 201 3 Nalco Champion Employees, Families Volunteer at Houston Food Bank More than 40 Nalco Champion employees and their families spent a recent Saturday morning bagging rice at the Houston Food Bank. Senior program manager Karri Nell organized the volunteer event as an opportunity for employees to give back to the local community.

Working in tandem at different stations, the group helped emp-

ty several 2,000-pound bags of rice and stack multiple pallets with the boxed dry goods. They joined more than 500 people from around Houston who had gathered to package nonperishable goods and household items for the largest food bank in the nation.

Last fiscal year the Houston food bank distributed 64 million pounds of food and goods to food pantries, soup kitchens, and senior centers, feeding 137,000 people each week, including working families, children, seniors, and homeless people. #5 Nalco Champion Volunteers at the Pilipog Elementary School During a regional sales meeting in Cebu, Philippines, the Downstream group teamed with the local Rotary International Club to volunteer at Pilipog Elementary School. The Nalco Champion teams worked together to upgrade the school with painting and repair work, provided desks, and donated backpacks for all 1,300 students. Additionally, the students were educated in hand and dental hygiene, using hand sanitizers and other resources from The Ecolab Foundation, a program with the goal of making a difference in local communities.

“The Nalco team has been true to the spirit of our union, the spirit of bringing all the kids together in Pilipog Elementary School for a common good, with shared goals, aspirations, and commitment. I appreciate the Nalco team’s great effort… to let our children feel extra special,” said Nonna C. Malahay, PTA president.

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F R O M C A N A DA TO C O L O M B I A : F I R E F L O O D I N G , FA S T. C O N N E C T I N G E X T E N S I V E E X P E R I E N C E T O I M M E D I AT E N E E D THROUGH THE CORE KNOWLEDGE SHARING NETWORK

BY M E L I SSA C RO C K E R

Today’s oilfields demand detailed chemical expertise in a wide variety of applications and environments. Nalco Champion’s global footprint allows us to provide one-on-one help to our customers, backed by the experts in our global knowledge network. In this feature, we highlight in-the-field examples of the cross-functional collaboration and efficient problem solving made possible by connecting our global subject matter experts through CORE knowledge sharing.

TH E S ITUATIO N On a Friday afternoon, Ramon Yibirin, a regional manager based in Colombia, needed |information about fireflooding—fast. He had one weekend to answer a customer’s questions about this form of enhanced oil recovery (EOR).

Fireflooding is an EOR method used to recover heavy oil using heat from a flame front ignited at the formation of an injection well. The flame front progresses through the reservoir toward the producing wells generating heat and reducing the viscosity of the oil in its path. The now mobile oil and the steam that is generated from reservoir water drive toward the production wells. It is an effective way of producing oil that is otherwise too viscous and unrecoverable by conventional methods. Uneconomical when first developed, it has been used only on a limited basis.

Yibirin posted to the CORE network that afternoon. His questions were pushed out to subject matter experts the same evening, and by Sunday afternoon he and Paul Bailey, technical director for Latin America, had the information to provide a comprehensive picture of what our customer could expect from the fireflooding process.

TH E IN S IG H T In Canada, Nalco Champion has extensive experience with fireflooding. In this situation, experts in Canada provided examples of their experiences with the technology, including challenges faced in the course of production, changes in the composition of the oil, formation of deposits, and recommendations for effective products to manage the challenges. They also offered

Yibirin and Bailey background on alternative production techniques that improve on the old fireflood method.

“Fireflooding is completely new to this customer, so any and all information was well received,” said Bailey.

T HE R ESU LT The combination of extensive expertise in thermal methods of oil recovery and the ability to quickly and efficiently share information from one region to another is a huge advantage for Nalco Champion’s customers around the world, particularly as the use of specialized methods of production is increasing in locations around the world.

“Without CORE, there is no way we could have received such a quick global response, with the level of detail and reference documentation that was provided,” said Mike Jackson, phase separation network manager.

As part of the discussions, the asset integrity network manager noted that a customer in Romania has a similar need and will also benefit from this knowledge sharing. Through CORE, we personally deliver insights that yield meaningful, quantifiable value to operations throughout the world.

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IN THE FIELD “While helping set up chemical feed systems in North Louisiana, I noticed that one of my co-workers had a large tear in his rubber glove. We were in contact with moderately hazardous chemicals (per material safety data sheets [MSDS]), so we stopped our job and immediately replaced the gloves. This also allowed us the opportunity to check all of our PPE before returning to work.”

–Nalco Champion field employee

R E C R U I T I N G

Experience Our Growth The oil and gas industry is changing quickly . . . so quickly that our company has experienced significant growth, doubling in size in the past five years. In turn, our employees have also experienced significant growth in their career opportunities at Nalco Champion.

ENGAGE IN MEANINGFUL WORK We offer an environment where there’s a new challenge around every corner, every day, and our employees experience the satisfaction that comes from engaging in meaningful work.

We help address the world’s energy needs with an unwavering commitment to safety and the environment in everything we do. Our programs, chemistries, and services make it possible to maximize production in safer, more efficient, and more environmentally sustainable ways than ever before.

Whether transporting chemicals, testing products, or partnering with customers to solve a challenge, Nalco Champion employees play a vital role in producing the world’s energy.

A N E S TA B L I S H E D L E A D E R Nalco Champion is an Ecolab company. As the global leader in water, hygiene, and energy technologies and services, Ecolab is routinely recognized for its industry-leading solutions, service, innovation, entrepreneurial spirit, and commitment to sustainability.

A sampling of recent recognition includes the following awards: • Forbes magazine included Ecolab on its list of “The World’s Most innovative Companies” for the third consecutive year.

• The Ethisphere Institute named Ecolab one of the world’s most ethical companies for the sixth consecutive year.

• Global Water Intelligence named Ecolab the water technology company of the year.

• Dow Jones Sustainability World Index included Ecolab on its list of the world’s leading sustainability companies.

AS P I R E TO YO U R ST R E N GT H S Are you a problem solver? Have you been called curious, inquisitive, determined?

To be successful at Nalco Champion, you must: • • • • • • • •

Love to learn Work well in a team but take responsibility as an individual Set goals and meet them Have a passion for the environment and a desire to improve safety Knock yourself out to satisfy the customer Value our longstanding client relationships Greet new challenges with enthusiasm Respond well in dynamic situations

SOUND LIKE A GOOD FIT? We need to connect. Please contact us through nalcochampion.com.

S CA N for more information.

NALCO CHAMPION MAGAZINE ISSUE ONE

NALCO CHAMPION MAGAZINE

Nalco Champion Magazine 3200 Southwest Freeway Suite 2700, Houston, TX 77027 magazine.nalcochampion.com

ISSUE ONE