Dresser-Rand Separators. May 2006

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Dresser-Rand Separators May 2006

A little history.. California inventor 1987-1995 separation principles early development and testing capital constraints Aker Kvaerner & Dresser-Rand 1996-2004 formed JV company MppT (Multiphase Power & Processing Technologies) purchased all rights and patents from inventor AK market knowledge and sales force D-R machinery expertise and manufacture some progress Purchase by D-R of AK s interest in MppT mid-2005

D-R R Separator products IRIS (Inline Rotary Separator) separates liquids from a gas stream Biphase: separates gas and oil (a larger, powered IRIS) Triphase: separates gas and water from oil

The IRIS separator

IRIS benefits Separation efficiency >99% of particles over 5 microns equal to cartridge filters Compact, in line design High liquid capacity 4% liquid to gas volume ratio up to 30% by mass Self powered Ease of maintenance/replacement

How Does the IRIS TM operate? WET GAS DRY GAS Swirl Generator Separation Zone Diffuser Section Separated Liquids

3 IRIS

IRIS field testing CEESI, Colorado 6 inch test - Feb 2003 Natural gas to 1000psi, injection of Decane upstream good repeatability obtained, solid quantitative results

3/4" Tubing Valve 1 IRIS field testing 3/4" Tubing/ pipe CEESI, Colorado 3/4" Tubing Valve 1 1/4"- 3/8" Tubing Valve 2 To Drain subsequently developed performance modeling code and product configurator, proposal generator 5000 IRIS-6060: Dry Gas Data - GSV vs. Speed 4500 100 < Psia < 106 y = 119.21x - 206.46 R 2 = 0.9982 IRIS Speed (rpm) 4000 3500 3000 2500 289 < Psia < 310 529 < Psia < 645 975 < Psia < 1042 y = 120.4x - 115.87 R 2 = 0.998 y = 123.62x - 434.93 R 2 = 0.9998 y = 161.53x - 2192.5 R 2 = 1 2000 1500 1000 10 15 20 25 30 35 40 45 Gas Superficial Velocity (ft/sec)

3/4" Tubing Valve 1 IRIS field testing 3/4" Tubing/ pipe CEESI, Colorado 3/4" Tubing Valve 1 1/4"- 3/8" Tubing Valve 2 To Drain IRIS-6060: Dry Gas Tests - GSV vs. Pressure Drop 35.0 1000 PSI Pressure Drop (psid) 30.0 25.0 20.0 15.0 10.0 600 PSI 300 PSI 100 PSI y = 0.0181x 2.0102 R 2 = 1 y = 0.01x 2.0234 R 2 = 0.9999 y = 0.0039x 2.0691 R 2 = 1 5.0 y = 0.0005x 2.3781 0.0 R 2 = 1 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 Gas Superficial Velocity (ft/s)

3/4" Tubing Valve 1 IRIS field testing 3/4" Tubing/ pipe CEESI, Colorado 3/4" Tubing Valve 1 1/4"- 3/8" Tubing Valve 2 To Drain Pressure Drop as % of Inlet Pressure 3.5 3.0 2.5 2.0 1.5 1.0 0.5 1000 PSI 600 PSI 300 PSI 100 PSI IRIS-6060: Dry Gas Tests - GSV vs. Pressure Drop y = 0.002x 1.9816 R 2 = 1 y = 0.0009x 2.1663 R 2 = 1 y = 0.0018x 1.9961 R 2 = 1 y = 0.0014x 2.0644 R 2 = 0.9999 0.0 0 5 10 15 20 25 30 35 40 45 Gas Superficial Velocity (ft/s)

3/4" Tubing Valve 1 IRIS field testing 3/4" Tubing/ pipe CEESI, Colorado 3/4" Tubing Valve 1 1/4"- 3/8" Tubing Valve 2 To Drain IRIS-6060: 600 PSI Wet Gas Tests - LCO Analysis 25.00 LIquid Carryover (Gal/MMSCF) 20.00 15.00 10.00 5.00 GSV - 16 ft/s, Speed - 1800 rpm GSV - 26 ft/s, Speed - 2880 rpm GSV - 39 ft/s, Speed - 4630 rpm 0.00 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 Liquid Mass Fraction of Total Flow

3/4" Tubing Valve 1 IRIS field testing 3/4" Tubing/ pipe CEESI, Colorado 3/4" Tubing Valve 1 1/4"- 3/8" Tubing Valve 2 To Drain Separation Efficiency (%) 100.00 99.90 99.80 99.70 99.60 99.50 99.40 99.30 99.20 99.10 IRIS-6060: 600 PSI Wet Gas Tests GSV - 16 ft/s, Speed - 1800 rpm GSV - 26 ft/s, Speed - 2880 rpm GSV - 39 ft/s, Speed - 4630 rpm 99.00 0.00 0.05 0.10 0.15 0.20 0.25 0.30 0.35 0.40 Liquid Mass Fraction of Total Flow

IRIS sizes 1½ inch - vertical design, 600# flanges 3 inch - 600#, 900# flange ratings 6 inch - 600#, 900# flange ratings

IRIS flow capability 5.0% Application Range of IRIS Product Line 4.5% Minimum Pressure Drop (% of inlet) Model XX15 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% Model XX30 Model XX60 0.5% 0.0% 0 1 2 3 4 5 6 7 8 9 10 Actual Gas Flow (CuFt/sec)

IRIS flow capability Approx max capacity 1.5" & 3" IRIS 18 16 MMSCFD Flow in MMSCF 14 12 10 8 6 4 3"IRIS 1.5" IRIS 2 0 0 500 1000 1500 Pressure in psia

IRIS flow capability 70 IRIS Capacity Approximate Maximum Flow Rates 60 50 MMSCFD 40 30 20 6" IRIS 3" IRIS 10 0 0 200 400 600 800 1000 1200 1400 1600 Pressure (psia)

3 IRIS unit installed

6 IRIS unit installed

1½ IRIS

1½ IRIS

1½ IRIS - factory test

IRIS markets gas seal systems refining GT Fuel gas treatment recip compressor inlet oil and gas production (including NGC*) * Natural Gas from Coal a.k.a. Coal Bed Methane

3 IRIS - Gas Turbine fuel treatment

Packaged 6 IRIS - wellhead application

IRIS competition Traditional scrubber vessels Traditional scrubber vessels + vane pack axial flow cyclones

IRIS value proposition examples Recip inlet scrubber retrofit 5-CVIP-4 recip, offshore LA

IRIS value proposition examples Recip inlet scrubber retrofit 5-CVIP-4 recip, offshore LA 3 separate valve failures due to liquid damage

IRIS value proposition examples Recip inlet scrubber retrofit 5-CVIP-4 recip, offshore LA 3 separate valve failures due to liquid damage Typical costs incurred per incident: parts & labor to repair $20,000 downtime 2 days $200,000 (20 MMSCD x $5/MMBTU x 2 days) TOTAL $220,000

IRIS value proposition examples Recip inlet scrubber retrofit 5-CVIP-4 recip, offshore LA 3 separate valve failures due to liquid damage Typical costs incurred per incident: parts & labor to repair $20,000 downtime 2 days $200,000 (20 MMSCD x $5/MMBTU x 2 days) TOTAL $220,000 IRIS solution 6 unit w/drainer $48,000 pipe cutting/welding $800 (1 day) Fittings, tubing $500 Engineering, planning $24,000 (200 hrs x $120/hr) downtime 1 day $100,000 TOTAL $173,000

IRIS value proposition examples Recip inlet scrubber retrofit 5-CVIP-4 recip, offshore LA 3 separate valve failures due to liquid damage Typical costs incurred per incident: parts & labor to repair $20,000 downtime 2 days $200,000 (20 MMSCD x $5/MMBTU x 2 days) TOTAL $220,000 IRIS solution 6 unit w/drainer $48,000 pipe cutting/welding $800 (1 day) Fittings, tubing $500 Engineering, planning $24,000 (200 hrs x $120/hr) downtime 1 day $100,000 TOTAL $173,000 Competitive alternatives: no space to install

IRIS value proposition examples Discharge scrubber retrofit (Epic Energy)

IRIS value proposition examples Discharge scrubber retrofit (Epic Energy) recip compressor, 15MMSCFD at 350 psig oil carryover in line, backpressure, reduced capacity, monthly pig (clean)

IRIS value proposition examples Discharge scrubber retrofit (Epic Energy) recip compressor, 15MMSCFD at 350 psig oil carryover in line, backpressure, reduced capacity, monthly pig (clean) Pigging equipment, manpower, production loss $152,300 per month

IRIS value proposition examples Discharge scrubber retrofit (Epic Energy) recip compressor, 15MMSCFD at 350 psig oil carryover in line, backpressure, reduced capacity, monthly pig (clean) Pigging equipment, manpower, production loss $152,300 per month Scrubber/coalescer hardware, engineering, installation, downtime $247,000 opex (replace coalescer elements), downtime $40,000 per year

IRIS value proposition examples Discharge scrubber retrofit (Epic Energy) recip compressor, 15MMSCFD at 350 psig oil carryover in line, backpressure, reduced capacity, monthly pig (clean) Pigging equipment, manpower, production loss $152,300 per month Scrubber/coalescer hardware, engineering, installation, downtime $247,000 opex (replace coalescer elements), downtime $40,000 per year IRIS hardware, engineering, installation, downtime $160,000 opex nil

IRIS value proposition examples offshore process separator repair

IRIS value proposition examples offshore process separator repair severe liquid carryover need to service vane pack

IRIS value proposition examples offshore process separator repair severe liquid carryover need to service vane pack vane pack repair hardware, engineering, manpower, downtime $655,000

IRIS value proposition examples offshore process separator repair severe liquid carryover need to service vane pack vane pack repair hardware, engineering, manpower, downtime $655,000 install IRIS hardware, engineering, manpower, downtime $327,000

D-R R Separator products IRIS (Inline Rotary Separator) separates liquids from a gas stream RST (Rotary Separator Turbine) Bi-phase: separates gas and oil Tri-phase: separates gas and water from oil

Typical Application of Bi-phase Bi-phase 32 MBPD / 64 MMSCFD / 900 # ANSI installed on Shell s Mars TLP in GoM in December 2002

Models of Bi-phase RST 100/200/900 RST Bi-phase 100 MBFPD 200 MMSCFD 28 ton operating weight 10 ft x 16 ft 32/64/900 RST Bi-phase 32 MBFPD 64 MMSCFD 18 ton operating weight 8 ft x 14 ft

Tri-phase RST Field Trial Marathon s Ewing Bank 873 platform - Gulf of Mexico > 3000 hrs operation Water < 20 ppm OiW Oil < 0.5% WiO Operation at wellhead manifold 110% design flow rate (5500 BFPD) 20 API crude Overboard quality water, pipeline quality oil

Application of Tri-phase..on Shell s Ursa TLP platform - Gulf of Mexico 65,000 BFPD RST Package Future replacement of BOT/FWKO Weight reduction - 450 ton Vessel size 55ft x 12 ft dia Package size 11ft x 14ft

Tri-phase RST Field Test unit 1,000 BPD TPRS readily transportable by workboat quick disconnects attended operation first client test in Olean May 06

Tri-phase RST Field Test unit 1,000 BPD TPRS readily transportable by workboat quick disconnects attended operation first client test in Olean May 06

for your interest.

www.dresser-rand.com info@dresser-rand.com