CENTER FOR INTEGRATED OPERATIONS IN THE INDUSTRY

In collaboration with the

Supported by the The Research Council of Norway 2007 ‐ 2015

C Copyright: IO Center. Reproduction only by written permission from the IO Center www.itiocenter.no Updated 2011-03-08 INTEGRATED OPERATIONS

Digital oil fields

Field of the future (BP)

Smart fields (Shell) i fields (Chevron) e-field RESEARCH PARTNERS

INDUSTRIAL PARTNERS

COLLABORATING INTERNATIONAL ACADEMIC PARTNERS Mission statement

 A leading international research center for Integrated Operations in the Petroleum Industry

 Contribute to better and faster decisions through enhanced integration of information, systems and people

4 Why - Goals

 Imppypproved safety for people, environment and asset value

 Contribute to increased value creation

5 What - Deliverables

 Knowledge – Qualified human resources to the industry (PhD and MSc) – Publications and reports – Conferences, workshops & seminars – Continued competance development for companies and research institutions

 Methods, processes and tools – Developed through R&D – Field tested – Handbooks and training courses

 Support to implementation – through associated projects

6 Who – Actors/participants

Research  Center participants - ”Triangle” institutions – Research institutions – Suppliers – Operators

 Collaborating partners Suppliers Operators – International research partners

 Associated projects – Center participants – Other companies/institutions –SMEs

7 1. INVOLVEMENT OF USER PARTNERS ; INNOVATION ASPECTS R&D AND INNOVATION MODEL FOR THE IO CENTER

CO-OPERATIVE, NON-COMPETITIVE ARENA COMMERCIAL / COMPETITIVE ARENA Oil Gap analysis companies Road maps R&D Institutions IO Center

R&D Suppliers

Technology verification Field testing Implementation of results in business processes Transfer of kkldnowledge to the industry Contract R&D Associated projects, JIP’s Education and training

Publication ARENAS OF COOPERATION AND KNOWLEDGE TRANSFER

Board meeting 2 mtgs per year

Technical committee , 50 members 2 day mtg 2 times per year

Workshops and seminars 10 workshops/seminars per year

In house seminars and training courses Example: GIOp project IO INDUSTRY CENTERCase studies and Pilot projects PARTNER 17 projects

Master student ppjrojects with the CtContract R&D industry partners, 30 students per year Associated Exchange of researchers projects, JIP’s Started in Phase I, planned for Phase II Access to reports Result data base (eRoom)

Publications 118 Journal and conference papers 2007‐2010 RIGHTS AND OPPORTUNITIES FOR MEMBERS IN THE IO CENTER

‐ Free right to use all ppjroject results in your normal opp,erations, including commercial expp,loitation, development of products and services offered to third parties

‐ Transfer of knowledge from the project to your company: in‐house training, workshops, seminars and courses

‐ Researchers from the IO Center can work in in‐house projects in your company for typically 1‐3 months to transfer knowledge and methods. Separate R&D contracts can be established for extended development projects

‐ Participation in a network of oil companies, suppliers and R&D institutions, for developing ideas for future IO and launching new JIP’s

‐ A seat in the Board of the IO Center MtMeets titwice a year and ddfiefines the work packages through annual operational plans and bbdudget s

‐ 4 seats (one for each program) in the Technical Committee Meets twice per year, goes through the R&D portfolio and gives recommendations to the Board

‐ One or more Pilot projects in your organization; on tasks specified in agreement with your company

‐ Industrial Master student projects, recruitment opportunities 10 INTEGRATED OPERATIONS

Smarter decisions

IMPROVED ENHANCED OIL INCREASED REDUCED SAFETY AND GAS PRODUCTION COSTS ENVIRONMENTAL RECOVERY PROTECTION 1. INTEGRATION OF PROCESSES

RESERVOIR MANAGEMENT DRILLING AND OPERATION AND PRODUCTION MANAGEMENTWELL MAINTENANCE MAINTENANCE

Smarter decisions

2. INTEGRATION OF PEOPLE 3. INTEGRATION OF TECHNOLOGY/ INFORMATION SYSTEMS IO - FROM SENSOR TO DECISION INCREASED ENHANCED OIL AND GAS REDUCED IMPROVED PRODUCTION RECOVERY COSTS HSE BUSINESS OBJECTIVES

PLANNING, EXECUTION Integrated planning, execution Integration of knowledge domains through decision processes DECISION PROCESS, Reservoi r Drilling, AWARENESS management and Operation and ESS EVALUATION OF completion and prodtiduction well integrity maintenance CC OPTIONS optimization

INFORMATION Integration of different types of information RETRIEVAL AND K PRO RR VISUALIZATION WO Integration/interfaceIntegration/interface between between models, models analysis tools REAL TIME

ANALYSIS & GY

MOGODELLING OO

Integration/exchange of data between acquisition systems

DATA CHNOL

ACQUISITION EE T

ASSETS

RESERVOIR WELLS PROCESS SYSTEM RESEARCH CHALLENGES FOR INTEGRATED OPERATIONS

Integrated planning and execution

Smarter Decision processes decisions across disciplines and Data acquisition organizational Communication boundaries

Visualization Data processing, modeling, Communication prediction Decision support Center Programs

INTEGRATION Specialized INTEGRATION INTEGRATION OF DECISIONS Disciplines: OF INFORMATION OF COMPETENCE

. Seismic . Geology Center Program 1: Drilling and Well Construction . Reservoir . Drilling . Monitoring . Subsea Center Program 2: Reservoir Management and . Production Production Optimization . Operation . Gas technology . Marine Center Program 3: Operation and Maintenance technology . Logistics . Maintenance Center Program 4: New Work Processes and technology Enabling Technologies Real time Decision processes Sensors Safety Visualization Data QA OitilMTOOrganizational MTO System security Environment Work processes

Enablers . ICT . Predictive control . Work processes . Safety technology . Monitoring . Visualization . ItIntegrat tdted teams . Re liabilit y . Data transmission . MTO . Semantic web . Business models PHASE I (2007‐2011) OVERVIEW OF PROGRAMS AND SUB PROJECTS

IO Center

Program 2 Program 4 5. General Program 1 Program 3 Projects, Drilling and Reservoir Mgmt New Work Operat i on aadnd Management WllWell and PdProducti on Processes Maintenance and Enabling and Construction Optimization technologies Administration

3.1 Condition BdBased 1.1 Integrated c2.1 Reservoir 4.1 Future Operation and Collaboration Drilling Simulator Management Crystal Ball Maintenance Environments Support

1.2 Automated 3.2 Condition 4.2 Work Interpretation r2.2 Production Monitoring Processes IO Valuation Model and Diagnostics Optimization for O&G and Facilities DiiDecision-making

1.3 Work Processes r2.3 Education and 4.3 Integrated International IO and Experience 3.3 Integrated Conference Transfer CtCompetence Plann ing Operations Development and Safety 1.4 Use of Increased Management Bandwidth and (Wired Drill Pipe) Administration Phase II (2012 -2014) Overview of proposed projects Discipline Area 1 Discipline Area 2 Discipline Area 3 Discipline Area 4 Drilling and well Reservoir Operation and Work Processes, construction Management Maintenance Teamwork and and Production Collaboration Optimization Technologies

IO 1 ‐ IO Teamwork and Capabilities

Integrated IO 2 ‐ Integrated Planning and Logistics decision processes IO 3 ‐ Proactive Management of Safety and Environment

IO 4 –Production and Performance Optimization

T1 – IO Aspects T3 –System T2 –Closed Better tools and for Safe and Integrity and Loop Reservoir methods for IO Efficient Dynamic Risk Management Drilling Assessment

Management, information exchange and networking Program 1. Drilling and Well Construction

•Real Time Drilling Simulator

•Prototype demonstration based on Hydro well (Hydro, Gaz de France, Total)

•Pilot project Total, post drilling Hans, planning of Victoria wells . Managed Pressure Drilling/Model predictive control .Diagnosis and Decision support .Utilization of Increased Bandwidth from borehole . Work processes and training simulator Program 2: Reservoir Management and Production Optimization

Reservoir

Production Reservoir model updating Case Halten Nordland, Norne (StatoilHydro) 4D seismic analysis Short loop Fast model updating Longer plateau production Long loop recovery

Production optimization Case project StatoilHydro Troll Oil production/Kongsberg FMC Flow manager

Model based optimization Program 3: Operation and Maintenance

Condition Integrated Monitoring Planni ng

•Assessment of MTBF bdOREDAdtbased on OREDA data Pilot project •Estimation of residual ConocoPhillips, life Ekofisk

Detection

Diagnosis Modifications & Maintenance

Logistics

Prognosis Logistic Service Service Service Service Service Service Req.

Drilling Maintenance & Production Process planning Well

© Norsk Hydro Programme 4: New work processes and enabling technologies

 FUTURE COLLABORATION ENVIRONMENT

 NEW WORK PROCESSES AND DECISION MAKING

 SAFETY, SECURITY AND RESILIENCE IN IO The New Control Room for Integrated Operations at NTNU in Trondheim THE ANNUAL IO CONFERENCE IN TRONDHEIM Next conference: SEPTEMBER 13-14 2011, TRONDHEIM http:// www.i oconf .no IO 11, 7th INTERNATIONAL CONFERENCE ON INTEGRATED OPERATIONS IN THE PETROLEUM INDUSTRY

From IO 09 September 29-30, 2009 GOVERNANCE MODEL

Board One seat for each partner

Technical Committee Center Manager Operational Manager

Core Team Center Manager/Operational Manager/ Project coordinator 4 Program managers

Project Project Project Project teams teams teams teams (# 1 – 15) RESEARCH PARTNERS AND CONTRIBUTING UNITS

IO Center NTNU,D ept . of P et rol eum Engineering and Applied Geophysics

NTNU SINTEF GROUP IFE EXTERNAL

Dept. of Petroleum SINTEF Petroleum NTNU Engineering and Research MTO Halden Samfunnsforskning Applied Geophysics

Dept. of MARINTEK Hitec Engineering Cybernetics

Dept. of Industrial Economics Technology First Interactive and and Society Technology Management

Dept. of Production and ICT PetroManagement Quality Engineering

Universities: Dept. of Stanford, Delft Marine Technology Carnegie Mellon Kyoto RESOURCES Annual budget: 7 million USD per year (40 million NOK) 5 +3 years

Personnel resources • 60 research scientists from NTNU/SINTEF/IFE (16 man years) • 15 Ph.D . candid a tes (dur ing 5 years per io d) • 2 Postdoc’s • 10 professors • 4 exper tfittilldiiitits from international leading universities • Operating experience and technology from the industrial partners (pilot projects , workshops etc.)

Research facilities • Research laboratories at NTNU/SINTEF/IFE in Trondheim, Bergen and Halden

Field data and field testing • Sub surface and process data from oil and gas fields operated by industrial partners • Observation of work processes •Background technology from R&D and industrial partners • Field testingggy of new technology IO CENTER, COSTS 2006-2012 (1.000NOK)

50 000

45 000 Program 1 Drilling and Well 40 000 Construction

35 000 Program 2 Reservoir Management and Production Optimization

30 000 Program 3 Operation and Maintenance 25 000 Program 4 New Work Processes and Enabling Technology 20 000 5. General Projects

15 000 MtManagement and Admi n is tra tion

10 000 Contingency 5 000

0 2006 2007 2008 2 009 2 010 2 011 2012 Collaboration Room IFE Integrated Operation Support Center Test-bed – MTO The IO C ent er t eam CONTACT

Professor Jon Kleppe, Ph.D, Center Manager Phone: + 47 918 97 300, + 47 73 59 49 33 Email: [email protected] Postal address: Department of and Geophysics, S. P. Andersens v. 15, 7491 Trondheim, Norway

Jon Lippe, Operational Manager Phone: + 47 918 97 033, + 47 73 59 02 33 Email: [email protected]@ntnu.no Postal address: Department of Petroleum Engineering and Geophysics, S. P. Andersens v. 15, 7491 Trondheim, Norway

Arild N . Nystad , Ph.D , Innovation & industrial relations Phone: + 47 913 22 497, + 47 51 56 71 11 Email: arild.nystad@ petromanagement.com PetroManagement AS, P.O.Box 252 Sentrum, Haakon VII’s gt. 8 (10th floor), 4002 Stavanger, Norway www.iocenter.no