Energistics Update

Jerry Hubbard Chief Operating Officer

PPDM 9 March 2011 The Challenge of Standardization

• Strategic Perspective – Strategic Standardization Management • Standards Collaboration – Focus on highest value standards that don‟t impact competition • Industry Commitment – Internal and external commitment to implementation • Value Delivery – Measuring the business value of implementation Our Flagship Standards… Wellsite Information Transfer Standard Markup Language

“The „right-time‟ seamless flow of well-site data between operators and service companies to speed and enhance decision-making”

An Open Information Transfer Standard for the Oilfield WITSML Data Object Schemas (XML)

General •Coordinate Ref Sys Communication •Well •Drill Report •Subscription •Message •Attachment •Server Capabilities •Operations Report •StimJob •Real Time Rig Instrumentation •Wellbore •Rig / Rig Equipment •Wellbore Geometry •Cement Job •Risk Surface Logging Fluids Systems •Mud Log •Fluids Report Surveying Coring •Survey Program •Sidewall Core •Target •Conventional Core •Trajectory Logging While Directional Drilling Drilling Systems •Log  Well Log (includes Wireline) •Tubular / •Formation Marker •Bit Record Original •BHA Run Updated Added

Source: BakerHughes/Paradigm WITSML SIG: Member Companies

• Accenture • IDS • Petris Technology • Atman Consulting • Institut Francais du Petrole • Petrolink • Baker Hughes • INT • Pioneer Natural Res. • Beijing Sunny Tech • Kongsberg • Roxar • BJ Services • LIOS Technology • RPS Group • BP • Mahindra Satyam • Saudi Aramco • Chevron • Merrick Systems • • US DOI • Microsoft • SDC Geologix • Digital Oilfield Sol. • Moblize • SMT • DrillScan • National Oilwell Varco • Shell • Dynamic Graphics • Oil Teams S.R.L. • Smith International • ExxonMobil • ONGC • Statoil • Geolog SPA • TIBCO OpenSpirit • TCS • Geoservices • Paradigm • TOTAL • • Pason • Weatherford • HRH Limited • Peloton • Wellstorm • IBM • Perfomix • Woodside Energy WITSML Status Update

• Next Deliverable: v1.4.1 nearing completion, contains: – Bug fixes – StimJob object for fracturing reporting (released) – Error Model object • Milestones: Candidate Release July 2010 • Other: – WITSML Brief updated to reflect new release information – posted on website – Standards Portfolio Drilling section PRODML…Focus on Optimisation

Produced fluids optimisation

Gas compression optimisation

Equipment optimisation

Gas lift optimisation

Production optimisation Natural lift optimisation

Single-well optimisation Multi-well optimisation

Injection optimisation Piloted PRODML Use Cases

• Gas lift well optimization • Distributed Temperature Survey (DTS) • Allocated volumes for smart wells • Free-flowing well optimization • Field wide optimization • Down-hole measurements • Integrated flow network model • Production volume reporting • Injection Water Handling PRODML SIG: Member Companies

• Atman Consulting • Microsoft • Weatherford • Atos Origin • ONGC • Woodside Energy • BP • OSIsoft • Chevron • Petrolink • ExxonMobil • Petrotech Data Svcs • Halliburton • Pioneer Nat Res • IBM • Roxar • Infosys • Satyam • Intelligent Agent • Schlumberger • IO-hub • Shell • Kongsberg • Statoil • Matrikon • TCS • Merrick Systems • Total PRODML Status Update

• Next Deliverable : v2.1 on track for Q2 release in mid-2011 • Includes: – Wireline Formation Testing – Facility parameters (pressures) for reporting – Improved documentation – Enhancements to the Shared Asset Model. • Shared Asset Model (SAM): general way to: – show hierarchical organization of assets (geography, operations, etc.), – to provide a cross reference of asset identifiers, and – a directory of services to retrieve XML data objects. RESQML…Why Build A 3D Reservoir Model?

• 3D Detailed Geologic Static Model – Understanding the resource in place – Understanding the play type – Well targeting • Upscaled Flow Simulation Model – Performance prediction in the absence of dynamic data – Starting point for a history match when dynamic data is available – Prediction of reserves per well – Prediction of new processes in an 3D Reservoir Modelling Workflow existing field (After Roxar RMS) RESQML™ Team Structure

• Steering Committee (Scope, Direction, Marketing) – Use Case Team • Workflows, Processes, and Requirements • Technical Team (Development) – Infrastructure • Binary, ASCII to Binary, Shared Utilities – Wells • WITSML with RESQML extensions – Structural “Earth Model” • Faults, Horizons & Structural Framework – GRID “Reservoir Model” • 3D Grids, Properties & Cell Connections • Discretized: Faults, Horizons & Well Perforations RESQML SIG: Member Companies

• Austin GeoModeling • ONGC • BP • Paradigm • Chevron • Pioneer Nat. Res. • Computer Modeling Group • Roxar • Dynamic Graphics, Inc. • Schlumberger • GrooViz • Shell • Halliburton • Total • Institut Francais du Petrole • Transform Software • JOA Oil & Gas BV RESQML Status Update

• Version 1.0 released including: – Most RESCUE functionality – Handling of large data models (HDF) – Traceability, geo-referencing • Other: – RESQML Brief updated and posted to website – Article published in August Harts E&P for SEG 2010 Annual Conference – RESQML presented at EAGE in Barcelona by TOTAL Geophysics Assessment

• Identified strong opportunities for improvement in: – Post-Processing and Interpretation Formats – Usage, Data Exchange and Data Quality – In conjunction with SEG and OGP

• Recommended: – Publish best practices, promote adoption, form Work Group – SEG handles standards for Acquisition and Processing – In 2010 the Work Group developed: • Velocity data exchange standards for: – Post-processing – Interpretation datasets • Metadata standards • Units of Measure set Geophysics SIG Work Group

• Results of the project to be submitted to SEG – Participants include: • SEG • OGP • ONGC • Chevron • Shell • IFP • Roxar • Paradigm • TCS • SMT National Data Repository (NDR)

• Standardize regulatory data delivery and management – Formed by the UK, Norway and The Netherlands – Last meeting involved 27 countries, 225 people • NDR meetings held about every 18 months – NDR8 in Cape Town in February 2008 – NDR9 in New Delhi in September 2009 – NDR10 to be in Rio de Janeiro in March 2011 • 165 registered delegates from 31 countries • Production Data Work Group – Using PRODML as basis for Daily Production Reports – 10+ countries involved in standards development EnergyML

To enable life cycle standards interoperability EnergyML “umbrella” (interoperability)

WITSML PRODML RESQML Other Standards Standards Standards Standards: Geophysics Data Mgmt. Regulatory

EnergyML “foundation” (consistency) Final thoughts on Collaborative Technologies

• Standards developed in a proprietary fashion : – Have no business value • Standards developed collaboratively but not widely adopted: – Have only potential business value • Standards developed in collaboration, widely adopted and deeply deployed: – Have tangible business value Thank You

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