ACTS flow loop is now operational under elevated pressure and temperature. Currently, experiments with synthetic based drilling fluids under pressure and temperature are being conducted. Based on the analysis of Fann 70 data, empirical correlations defining the shear stress as a function of temperature, pressure and the shear rate have been developed for Petrobras synthetic drilling fluids. PVT equipment has been modified for testing Synthetic oil base drilling fluids. PVT tests with Petrobras Synthetic base mud have been conducted and results are being analyzed Foam flow experiments have been conducted and the analysis of the data has been carried out to characterize the rheology of the foam. Comparison of pressure loss prediction from the available foam hydraulic models and the test results has been made. Cuttings transport experiments in horizontal annulus section have been conducted using air, water and cuttings. Currently, cuttings transport tests in inclined test section are being conducted. Foam PVT analysis tests have been conducted. Foam stability experiments have also been conducted. Effects of salt and oil concentration on the foam stability have been investigated. Design of ACTS flow loop modification for foam and aerated mud flow has been completed. A flow loop operation procedure for conducting …