1 1. Project Title Geoplat PRO Software Platform to Solve E&P

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1 1. Project Title Geoplat PRO Software Platform to Solve E&P 1. Project Title GeoPlat PRO software platform to solve E&P problems in hydrocarbon fields Permissible number of symbols – 170 2. Full name of the applicant for preliminary Expertise Boris G. Levin 170 3. Main business area of the project Strategic computer technologies and software 4. Brief description of the project (5 sentences), indicating existing developments and basic goals of project growth The uniqueness of the Project lies in the development of an integrated software platform to address a complete scope of tasks of search for, exploration and 500 development of hydrocarbon deposits. The platform will make it possible to adapt the 3D geologic model to hydrocarbon development environments, which in its turn would allow the subsoil wealth users to significantly save capital and operational expenditures. The integrated platform includes: DV-Geo geologic modeling system, DV-Discovery seismic interpretation system (both are production tested), and PIX-Geo hydrodynamic simulation system (development to be completed soon). 5. Contact person for the project (the person filling out the questionnaire) Boris G. Levin 2000 +7 (499) 720-53-13 [email protected] 6. Describe the problem that the project is intended to solve a. Problem description At the moment, similar products on the geophysical service software market are offered as individual modules providing solutions to a narrow-range of special 4000 problems or as large systems providing integrated solutions by solely foreign software developers. This has led to monopolization (95%) of the Russian market by two largest companies Roxar and Schlumberger and to unreasonably high prices. In this connection, risks of complete loss for the Russian applied geophysical science potential and information safety are extremely high. The foreign software developers are not responsive enough in adapting their software solutions to the requirements and standards of the Russian users. This Application is underlain by a marketing survey completed by O2 Consulting Co on behalf of GDP LLC. The survey estimates the Russian geophysical software market to amount to $170m by 2019. These funds could resolutely contribute to the development of high-end software technology in this country. b. Please provide links to research and materials that support the importance and currency of the indicated problem 1. Market survey of geophysical software for hydrocarbon industry No limitations http://o2consulting.ru/articles/mr-geofiz/ The geophysical services software market was surveyed as a desk study and interviews given by petroleum service experts. The survey provided the following estimates: 1 • shares of petroleum service market key segments • geophysical services software volume on the world market (2008-2013 retrospective and prediction up to 2019) • geophysical services software volume on the Russian market (2008-2013 retrospective and prediction up to 2019) The survey has also undertaken: • analysis of factors and tendencies • analysis of major players on the market • analysis of software sale channels • analysis of principal software consumers • analysis of market barriers The survey results were used to make the software market projection up to 2019. The survey was run by O2 Consulting Co on behalf of GDP LLC. 2. Government decree No 69 of 11 Feb. 2005 On public examination of mineral reserves, geologic, economic and environmental information regarding subsoil areas made available for use, amount and method of payment for such examination http://www.referent.ru/1/102809; The document obligates the subsoil wealth users to run reserve estimation based on 3D modeling. 3. РД 153-39.0-047-00 Regulation regarding creation of standing geotechnical models for hydrocarbon fields. Moscow, RF Ministry of Energy and Fuel, 2000 http://www.norm-load.ru/SNiP/Data1/54/54024/index.htm; 4. Methodology instruction for creation of standing geotechnical models for hydrocarbon fields. Part 1. Geologic models. Part 2. Filtration models. VNIIOENG Institute, 2003, 164, 228. http://www.geokniga.org/books/2662; 5. Laring, G. V., 2010, Efficient computer tools for geologist and geophysicist in the study of a hydrocarbon field: Geofizika (Geophysics) Journal, No 3. http://scilance.com/library/book/26354; 6. Yampolskiy, V. Z., et al, 2006, Analysis of hydrocarbon field 3D-modeling and production optimization software: Tomsk Polytechnic University Proceedings, V. 309, No 7, 50-54 http://cyberleninka.ru/article/n/analiz-programmnogo-obespecheniya-dlya-trehmernogo-modelirovaniya-i-optimizatsii-razrabotki-mestorozhdeniy-nefti- i-gaza; 7. ГОСТ Р (Russian State Standards) Project: Development of gas, gas-condensate, oil-gas and oil-gas-condensate fields. Seismic processing and interpretation software. Principal functional and technical requirements. http://tksneftegaz.ru/standards-development/standard/show/247/ This document signifies high attention the major subsoil wealth users pay to the development of modeling and interpretation software. 7. How does the project solve the described problem and why could the approach be considered innovative The Project combines three basic software systems: 6000 DV-Discovery seismic interpretation system 2 DV-Geo system to run geologic modeling and estimate HC reserves PIX-Geo system to run hydrodynamic simulation modeling and HC field development and production monitoring Innovationality of this approach consists in the following: integration of all system modules on a single platform patented technology for dynamic visualization that can be used at all phases of hydrocarbon deposit interpretation and modeling unique tool to run sedimentation and paleotectonics analysis on seismic data data consistency in the modeling process; adaptation to Russian standards and requirements the basic version of the product has simplified open code with adaptable programming language for developing additional plugins enabling the user to perform his specific tasks ingenious algorithm to run lithologic modeling based on conceptual HC deposit model ingenious algorithm for auto correlation of well sections ingenious algorithm for adaptation of hydrodynamics computation grids in the modeling process ingenious tools to adapt the geologic model using HC field development and production data 8. Please describe the basic technologies and market trends in the considered market segment a. Description of trends A. Technological trends 4000 1. Development of integrated solutions on the software market A tendency is at present observed to integrate principal directions of data interpretation and modeling along the lines “seismic interpretation – geologic modeling – hydrodynamic simulation”. Such integrated systems are in growing demand owing to the possibility of providing concurrent integrated solutions to more than one geophysical modeling challenges. 2. Technology developments in geophysics and software development of mathematical principles and 3D modeling for oil and gas reservoirs developments in the processing and interpretation of 3D seismic exploration, sedimentation analysis and 3D hydrodynamic simulation advent of powerful supercomputers and workstations allowing complex computations with sufficient speed and display of results 3. Development of software with open source code At the present time, open source code software develops actively. Demand for open source code software rises owing to its accessability, high functionality and possibility to tailor it to solution of specific tasks. OpenTect, GeoTriple for Oil&Gas Exploration, GeoCraft, GI and others exemplify such software platforms. B. Market trends 1. Rising demand for high-quality acquisition and processing of hydrocarbon field data As new technologies of oil and gas production (hydrofrac, slanted and horizontal drilling) are being introduced and hydrocarbon exploration and production environments are getting more and more complicated, and newly discovered fields are being developed, the geophysical service software role is gaining more and more in significance: the demand is rising for high-quality data about hydrocarbon fields and for efficient hardware and software for geophysical services. 3 From 2011 to 2013, the global geophysical service software market rose from $2.7bn to $3.0bn. 2. Rising demand for Russian-made geophysical service software from Russian oil and gas companies because of western sanctions: ban on export outside Russia of information regarding Russian oil and gas reserves (Russian response to sanctions) restricted supply and usage possibilities of geologic exploration equipment and technologies for oil and gas industry on the part of USA and EU The share of the Russian-made software to be used by major subsoil wealth user companies, as the latter’s documents indicate, is expected to grow from current 5% to 50%-70% by 2020. 3. Rising demand for hydrocarbon industry services from the countries of North and Latin America, Middle East and Africa, India, China, Vietnam and Australia Development of fields using hydrofrac operations, deep, slanted and horizontal drilling (e.g. in USA and Canada), and active development of offshore fields in a number of countries (e.g. in Brazil) has led in these countries to greater demand for hydrocarbon industry services on the whole and for geophysical service software in particular. Thus, revenue structure in largest transnational hydrocarbon services companies (Schlumberger and Halliburton) shows a tendency of earning greater income share in North and Latin America particularly
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