1. © Copyright IBM Corporation 2008 Thoughts on Current and Future Trends in Integrated Operations Tony Edwards BG-Group, Head of iValue iE2008 Organising Committee Chairman

2. This Presentation  Update from iE2008 - IO is here to stay - How much Progress have we made? - Collaboration a Major Theme - People, Process and Organisational Change - Young Professionals  Two Philosophies?  What Next for IO?  Conclusions IO2008 - TrondheimSlide 2

3. IO2008 - Trondheim iE 2008 - Amsterdam  1665 people from 52 Countries  Approx 45% from IOC’s, NOC’s and Independents - Significant Contribution from NOC’s  Companies from outside the O&G Sector, attending, presenting and exhibiting - Consultancies - Telecoms - Aerospace  Global Attendance - 65% West Europe - 14% USA (240) - 8% Mid East (130) - 4% South America (65) - 4% East Europe (65) - 5% Other (80) Slide 3

4. IO2008 - Trondheim Senior Management sees Integrated Operations transforming our Industry  Helge Lund – StatoilHydro - “Integrated Operations is a revolution that is reshaping our industry”  Amin Nasser – Saudi Aramco - “All new fields will be intelligent fields”  Malcolm Brinded – Shell - “I expect the use of Smart Technology to accelerate over the next decade”  Ben Verwaayen – BT - “In the digital world time and distance are dead”  Andrew Gould – Schlumberger - “Our Operations Centre in Aberdeen monitors 28 rigs simultaneously” Slide 4

5. IO2008 - Trondheim How much Progress have we made?  Live Links - BP’s Advanced Collaborative Environment in Baku - StatoilHydro’s Drilling Support Centre supported by the SH’s Subsurface expert centre and Schlumberger’s Operations Centre - Shell’s Gronnigen Control Centre - Petrobras – Operations Support Centre Slide 5

6. IO2008 - Trondheim Collaboration – A Major Theme  15 Papers on Collaborative Environments - Case Studies - Real Benefits  Normal way of working for many companies - Drilling Support – Moving to 24/7 - Operations Support - Expert Support – Both Internal and External to the Company  Built into the fabric of the Building  Moving beyond front line operations Slide 6

7. IO2008 - Trondheim People, Process and Organisational Change  A significant amount of learning in the last 2-3 years  Increased Emphasis in this area - Now seen as the key to success  More focus on People and Organisational Change  Questions about the focus on Process lead Change - Has there been too much of this? - Processes evolve and change rapidly in an intelligent energy world  Looking outside our industry for support and learning’s Slide 7

8. IO2008 - Trondheim Young Professionals – The future of our industry  E&P organisations should make the digital oilfield more accessible to young professionals  YPs know how to work collaboratively  IO is how we attract the best and the brightest in to our industry  New Education and Training Programmes  Need to change the perception of our Industry Slide 8

9. Two Philosophies?  IO as a transformation programme - Delivered in in the Line - Supported by Central Programme Office - Emphasis on Value attainment and People and Organisation Change - Technology is the Enabler - Integrates the teams and the ways of working  IO as a Technology/IT Project - Delivered by a central group - Emphasis on the Technology - Integrates the Systems and Data - Automating a Process?  Regional Split? IO2008 - TrondheimSlide 9

10. IO2008 - Trondheim What’s Next for Integrated Operations  Extending beyond frontline Operations and Drilling and the Inclusion of a broader range of disciplines - Control and Instrumentation and Facilities Engineering Disciplines - Commercial and Finance - HR and Org Development  Major projects - Inclusion of IO in the Design of New Fields - IO Applied to the Major Projects Process  Asset Integrity - Sensor Technology is needed - Assuring the integrity of our Plant and Equipment Slide 10

11. What is Next for Integrated Operations  Remote support to access Global Resources  IO across the entire Value Chain - A move into mid-stream and Downstream  Learning’s from other Industries - Aeronautical, Defence, Automotive, Pharmaceutical  New Career Paths? - Does the SPE need a Production Optimisation or Digital Engineering Discipline  A change in the Oil Company Supplier Relationship - Standards which allow collaboration between companies  An ‘Eco-system’ of Companies that work together IO2008 - TrondheimSlide 11

12. Conclusions  IO is now a truly Global movement  Just beginning to enter new domains such as Projects  Moving towards 24/7 and Global Expert Support  Still a lot to learn from other industries  IO is essential to attracting the next generation of Talent  Will change the nature of the relationships between companies – ‘Eco-System’ of Companies  We Have Only Just Started “Truly Integrated Oil and Gas Industry” IO2008 - TrondheimSlide 12