Enabling Integration of Core Work Processes in Upstream Oil and Gas

Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft Topics Covered

• Integrated Information Platform (IIP) project – Background • The new operation concept Integrated Operations (IO) • OLF’s strategy for Quality Information – Purpose and deliverables • Objectives • Deliverables – Take-up process • OLF’s Daily Production Reporting project • OSIsoft RtPM for Production Data Exchange in Upstream Oil & Gas

OLF = Norwegian Oil Industry Association

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 2 DNV - Det Norske Veritas

• Independent foundation • Objective: To “Safeguard life, property, and the environment” • Established in 1864 in Norway • Top 3 certification body world- wide • Top 4 ship classification society world-wide • Global representation • 6095 employees

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 3 DNV – Information Quality Management

• Business Information Services – Requirements – Governance – Architecture • Information Quality Assessment and Rating • Information Training and Education – Standards • Information Models & Data Standards • Test Center Managing risk by – Compliance to Standards (Software) managing information – Validation according to Standards (Data) • Independent Data and Information Hosting

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 4 According to OLF, IO increases revenue and reduces costs Trondheim

Bergen

Vendor’s onshore Expert Expert operation center center centre Stavanger

Aberdeen Control room

Operator’s onshore operation centre

Expert center

Source: OLF, 2005 Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 5 OLF predicts that IO will be implemented in two main steps

Automatic IO Generation 2 optimization Vendor • Integrated operation centers of operators and vendors • Heavily instrumented Operator facilities • Heavy automation and multi- Intelligent domain optimization of facilities Real-time Vendor processes pipeline

Real-time Reservoir & collaboration production IO Generation 1 rooms management • Integrated onshore and offshore centers Drilling & completion • Intra-domain optimization of work processes Traditional Operation & facilities maintenance

Source: OLF, 2005 Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 6 OLF intends to establish an information pipeline that supports both IO generations Automatic optimization

Vendor Web portals Processes Field data Web services • Health, safety, environment Operator • Drilling & completion Schemas for automatic • Reservoir & exchange of data production management Vendor • Operation & maintenance Terminology Taxonomy Ontology

Semantic oil & gas web Source: OLF, 2005 Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 7 Terminology, taxonomy and ontology?

Reservoir & production optimization Services

Well Reservoir Production monitoring monitoring monitoring

XML HSE Drilling Completion Reservoir Production Operation Maintenance

Terminologies

Taxonomies

Ontologies

Project

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 8 The IIP project delivers required terminologies, taxonomies and ontologies

Automatic Generation 2 optimization • Complete ontologies supporting automated reasoning or inference of data using logical rules

Intelligent • Taxonomies for multiple facilities Oil & gas domains ontology

Real-time collaboration rooms Generation 1 • Terminologies for single domains • The basis for XML schemas for automatic transferal of data between Traditional applications in same domain facilities

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 9 The project targets key business domains Develops terminologies based on solid business knowledge Production – Input from project participants – Other projects specifications – Domain specific standards Prepares approval of the Drilling terminologies by international standardization bodies Geometry and – ISO and W3C topology – POSC Caesar and POSC Addresses short term … – Terminologies and XML schemas Reservoir characterization for real-time exchange of data Condition … as well as long term business monitoring needs – Taxonomy and ontology supporting Equipment optimization of processes across domains Safety and Automation System

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 10 Deliverables will be available on the Internet

Publicly available from www.posccaesar.com during Q2 2006

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 11 Visualization Terms

Definition

http://ht.vestforsk.no/demo/production/index.html

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 12 The project is supported by many key players

POSC Caesar Association

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 13 Project schedule and budget

Total current budget: Project Duration: 24 MNOK (3 MEUR) 16.06.04 – 30.06.07

The project is partly funded by The Norwegian Research Council program PETROMAX and by the project participants.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 14 OLF’s Daily Production Reporting project

One of several fast-track take-up projects initiated by OLF Daily Production Report - Project details

• Scope: Develop ontology and common XML schemas for daily production report • Participants: All major operating companies on the Norwegian Continental Shelf • IIP contribution: Terminology and standard XML • Pilots: Åsgard and Valhall • Implementation: Started January 1, 2006

Source: OLF, 2005 Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 16 Daily Production Report - System overview

Operator ISO LicenseWeb Authorities, operator 15926 & partners

Internal Excel reports prod. XML Std. reports data file License Web system Non-std. reports

Prod. XML Valhall report file Åsgard

• Benefits: Efficient exchange of production data and daily production reporting

Source: OLF, 2005 Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 17 A Daily Production Report

XML based on standard XSD Standard report Source: OLF, 2005 Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 18 OSIsoft RtPM And The IIP Project

Provides terminologies, Provides framework taxonomies and ontologies for collecting, to be used for real-time structuring, storing optimization of reservoir and analyzing real- and production for heavily time field data from instrumented oil and gas heavily instrumented fields oil and gas fields

May enable

Reliable real-time information pipeline supporting G1 and G2 integrated operations

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 19 OSIsoft RtPM in Upstream

• About the upstream business… • Problems & Solutions • Exchanging data • The ProdML Initiative

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 20 Priorities in Upstream

• Cambridge Energy Research Associates (CERA) polled leading E&P firms in 2006: – “Total Asset Awareness” • better sensor technology • better in-field communication systems • advanced data mgmt solutions – Visualization & Analytics • automated model updating • improved visualization • system-wide optimization (both surface and subsurface)

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 21 OSIsoft in Production & Refining

• 37% of the world’s refined products are monitored by PI • Installed in 26% of the world’s refineries • 15% -20% of the world’s oil fields are monitored by PI

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 22 OSIsoft RtPM in Upstream

• Green field, brown field, offshore • Production is a complex business… – Few free flowing wells – Most done by injection of steam or gas

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 23 Injection Production

Controller or Wing & Master Valve Casing Choke Flowline Choke 10 11 20 12 21 22 25 26 27 13 3 14 15 4 16 5 Separator

Compressor 1 From Well 23 To Well Compressor 2 Production Header 24 Gas Header

Compressor 3 From Well

Gas Lift Valve To Well Tubing

Valve Casing Choke Packer Measurement # 1 Perforations 1 2 Gas Lift Well Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 24 Upstream Data Management Problems • Frequently changing flow network configurations • Hard-to-measure data – “3 phase” flow meters rare • Data reconciliation and estimation needed • Back-allocation • Optimization • Reporting must be accurate

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 25 Interaction of Applications

• “Chaining” of applications needed in the field – Measured data feeds estimated algorithms – Estimated feeds enter back-allocation algorithm – Allocated data fed to modeling software – Modeling software drives optimization – …

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 26 Solutions abound

• Many vendors offer analytical solutions • Data exists, but from a variety of sources • This suggests a data exchange standard!

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 27 Full Production Facility

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 28 Rendering in XML

A inlet etc.

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 29 “Foundation”

• Foundation is… – A flexible enterprise asset model – Relationships between the assets: • Hierarchical • Flow network • Not just one relationship – Access to: • PI data • Relational and web service data

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 30 ProdML

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 31 ProdML Members

• Oil Companies – BP, Chevron, ExxonMobil, Shell, Statoil • Software Companies – , Invensys, OSIsoft, Petroleum Experts, , Sense Intellifield, TietoEnator, Weatherford • Standards Organization – Petroleum Open Standards Consortium (POSC)

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 32 Sources

• Wellhead Information Transfer Standard Markup Language (WITSML) • W3C • ISO 15926 • OPC UA

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 33 ProdML Use Cases: The Flows

• Flow #1 – Optimal allocation of lift gas, current time only • Flow #2 – Evaluate model, compare with actual performance, notify if different, current time only • Flow #3 – Similar to Flow #2, but use historical data

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 34 ProdML Flow #2

Data Acquisition & Control system

Inform staff Orchestration and track actions Tools Data Validator

Applications Advisory Tools to derive well oil, gas, water flows

Model Validator

Applications to predict performance

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 35 OSIsoft Implementation of ProdML

Data Out Data In

Model Out Model In ProdML Data Web Foundation Asset Services Database Foundation ProdML SDK PI Network Foundation Data Model SDK Reference Web Services PI Archive

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 36 Summary

• Data flows in upstream production management are complex • Many vendors contribute to solution • Standards-based data exchange makes collaboration possible • OSIsoft RtPM is the infrastructure for ProdML support

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 37 .. the end

Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved. 38