Permanent Magnet Motors for ESP Applications Updating the Track Record of Performance. Lorne Simmons VP Sales & Marketing

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2019 Permanent Magnet Motors for ESP Applications Updating the Track Record of Performance Lorne Simmons VP Sales & Marketing

Technology Development Milestones and Achievements Late 1990s Permanent Magnet Motor (PMM) technology development (for ESP application) initiated by Borets. 2005 First PMM field installation. 2006 First PMM (462 Series) commercialized. 2009 406 Series PMM commercialized. Since 2010 Higher horsepower PMMs through enhanced rotor bearing technology Expanded PMM series released High and low-speed PMMs released. 2011 Extensive development and release of first proprietary PMM control algorithm in dual compatible (IM & PMM) surface variable frequency drive. 2015 Release of second generation (dual compatible) PMM surface drive. 2015 State-of-art PMM testing facility opened in Tulsa, Oklahoma. 2018 Borets installs it 250 th PMM in the Permian Basin. 2

Induction Motor vs Permanent Magnet Motor Traditional downhole ESP motors used are threephase, two-pole, squirrel-cage AC induction motors. The downhole PMM for ESP application introduced to the industry in 2006. Rotor constructed using copper bars short-circuited by two copper end rings Rotor magnetic field is generated by current induced in the (rotor) copper bars Rotating magnetic field created in the stator when alternating current is applied to non-rotating stator windings Interaction of the rotor magnetic field and (rotating) stator magnetic field results in: - rotor torque - slip No special VSD control algorithm required Rotor constructed to include permanent magnets made from hard-sintered rare-earth metals (Constant) Rotor magnetic flux created by presence of permanent magnets Rotating magnetic field created in the stator when alternating current is applied to non-rotating stator windings Interaction of the rotor magnetic field and (rotor) stator magnetic field results in: - rotor torque Special control algorithm required 3

Standard Performance Curves 456 Series IM vs 456 Series PMM IM 456 Series PMM 456 Series At BEP, PM motors are 7 10% more efficient than the equivalent IM. Induction Motor Permanent Magnet Motor 180 Motor power (hp) 180 18 Number of Rotors 9 24.5 Length (ft) 14 88 Max. Efficiency (%) @ 60 Hz 93 4

456 Series IM vs Equivalent 406 Series PMM Comparison 456 Series IM 406 Series PMM Casing OD: 5.5 in. Weight: 20# Drift ID: 4.653 in. Casing OD: 5.5 in. Weight: 20# Drift ID: 4.653 in. Casing OD: 5.5 in. Weight: 17# Drift ID: 4.767 in. 180 hp 24.5 ft 180 hp 20 ft Casing OD: 5.5 in. Weight: 17# Drift ID: 4.767 in. 5

Current PMM Portfolio PMM Motor Series Standard Speed (3,600 rpm 4 pole) High Speed (6,000 rpm 4 pole) Low Speed (500 rpm 10 pole) TBD TBD - Power Factor 0.96 0.96 0.96 0.96 0.96 0.96 0.96 Max. Efficiency, % up to 93 up to 93 up to 93 up to 93 up to 93 up to 93 up to 93 Rated Winding Temp, C 200 200 200 200 200 200 200 # Motor Sizes Available 17 TBD 18* 16* 18* 18* TBD Min. Power (hp) 24 TBD 24* 40* 80* 100* TBD Max. Power (hp) 150 150* 228* (264)* 400* 760* 980* 1500* HP / Rotor 8 TBD 12* 20* 40* 50* TBD * For Standard Speed Motors 6

Realizing the Advantages of PMMs Drives Matter 7 10% increase in motor efficiency at rated power Reduced power consumption (up to 20%) 10 15% lower operating current Reduced motor heat rise improves equipment and system reliability Higher rotor HP density Up to 40% reduction in motor length Wider operating range Improved adaptive control Soft start capability Advantages of PMMs are realized when operated as part of a tuned drive-downhole motor system. 7

Comparison of Different PMM Control Methods Back-EMF control Only two of three phases conduct current at any one time Rotor position detected by back-emf induced in (idle) third phase as motor rotates at any time. Advantages: Independence from motor parameters Simplicity - requires only step-up transformer and long power cable. Limitations: Cable length, motor inductance and speed yield fluctuations in zero current phase resulting in failure to locate rotor position. - reduced efficiency Inverter circuit ensures sinusoidal phase voltages and currents Voltage across the motor is a function of pre-set speed (U/F control) Advantages: Overcomes limitations associated with back-emf method Optimized performance for static motor loads Limitations: Scalar control Drive performance NOT optimized across entire (or variable) range of motor speeds and loads. - sub-optimal efficiency across variable motor loads Advanced process running complex algorithm Resolves rotating phase vectors Results in precision control of flux (magnetizing) and torque producing currents. Voltage to the motor is applied based on: - Motor inductance vector values - Permanent magnet flux linkage - Active resistance of the phase windings - Amperage - Motor design characteristics Advantage: Vector control Performance and energy efficiency of the VSD/motor system is continually optimized across all speeds and loads. The vector control method consistently delivers exceptional efficiency and lower heat rise as compared to the other methods of PMM control. 8

Case Example #1: Induction vs Permanent Magnet Motor Comparison Test Howard County, Texas Test Objective: Prove / disprove energy savings using PMM technology Test 1: measure power consumption maintaining constant (surface) flow rate Well TD: 7,725 ft TVD: 7,599 ft Completed: April 2010 Equipment Used in Test Induction Motor (IM): 456 Series, 240 hp, 2x1,295 V, 59 A tandem motor Permanent Magnet Motor (PMM): 117 mm, 266 hp, 2466 V, 62 A motor Variable Frequency Drive (VFD): Borets-VD250-300 Current Source Drive ESP Cable: 6,000 #4 AWG SL-450 Lead Flat Motor Seals: 400 Series Tandem Pumps: 400 Series, 3,000 bpd (285 stages, 3 sections) Casing OD: 5.5 in. Casing weight: 17# / ft Intake pressure measurement: Borets Viewpoint ESP downhole sensor Pump setting depth: 6,000 ft Test 2: measure power consumption maintaining constant intake pressure IM PMM Flow Rate (BPD) IM (kw) PMM (kw) Delta Delta (%) Frequency (Hz) 2400 167.3 132.9 34.4 20.6 3000 203.4 161.0 42.4 20.8 3400 224.8 204.3 20.5 9.1 Pump Intake (psi) Motor Load (%) Motor Winding Temp ( F) Motor Efficiency (%) Power Consumed Meter (kw-hr) % Savings (kw-hr) 55.8 601 67 182 80.4 161.8-61.6 545 83 187 82.9 211.3-65.9 505 97 192 84 245-52.7 603 63 186 90.8 133.3 17.6 57.5 545 78 199 91.1 177 16.2 60.5 505 89 210 90.7 210.9 13.9 9

Case Example #2: Induction vs Permanent Magnet Motor Comparison Test Ector County, Texas Test Objective: Compare IM vs PMM technology to evaluate power consumption results against manufacturer claims and lab test results Well TD: 4,690 ft; TVD: 4,690 ft Completed: 1975 Casing OD: 5.5 in. Casing weight: 14# / ft Pump setting depth: 4,305 ft Test conducted in three stages: 1. ESP system (IMs) operated on switchboard at 60 Hz 2. ESP system (IMs) operated on VFD 3. ESP system (PMM) operated on VFD The same surface drive, cable used in stages 2 and 3. New downhole motor and seals installed. Equipment Used in Test Permanent Magnet Motor (PMM): Borets 456 Series, 60 hp, 1,022 V, 35 A motor Variable Frequency Drive (VFD): Borets Axiom II, 125 kva, 150 A Motor Seals: Borets 400 Series Tandem Intake pressure measurement: Borets Viewpoint ESP downhole sensor Induction Motor (IM): 456 Series, 60 hp Pumps and ESP Cable: 3 rd party provided IM PMM Frequency (rpm) Pump Intake (psi) Motor Load (%) 2900 610 72 Motor Winding Temp ( F) Flow Rate (BFPD) Power Consumption (kw) 520 31.0 3200 275 77 U/A 557 37.4 3450 80 79 737 44.1 Change in Power Consumption (%) 2900 620 51 127 650 25.0 19 3200 355 61 135 770 32.7 13 3450 125 63 135 830 38.5 13 10

Global PMM Experience PMMs Currently Operating 11

Global PMM Experience Maximum Run Days Achieved 12

Summary and Conclusions Physical design characteristics of PMMs contribute to: Reduced energy consumption, even under variable / reduced load conditions Improved reliability reduced electrical losses lower heat rise during operation contributes to longer equipment run life Increased power density more HP per rotor shorter overall equipment length. The type of motor control method used by the surface VSD is critical to realizing maximum benefit of PMMs Not all PMM surface drive control algorithms are equal Vector control optimizes PMM control taking into account the design characteristics of the downhole motor. The benefits of reduced energy consumption and lower heat rise during operation are being realized by operators in the Permian Basin. 13

Questions? 14