NOT AN OFFICIAL UNCTAD RECORD

2 Defining the Reservoir Defining the Reservoir WesternGeco Reserve Definition ( SPE & WPC) “ Proved reserves are those quantities of petroleum which, by analysis of geological and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under current economic conditions, operating methods, and government regulations”

3 Elements Affecting Reserves  Reservoir characteristics  Oil prices  Cost  Contracts (PSA)  Corporate procedures, technology used.  Government regulations .

4 The time dimension  NPV (Net Present Value) = Cash(t)/(1+ rate) t  Cash={Oil/Gas x Unit Price – (CAPEX+OPEX)}  Increase NPV with early production  Increase NPV with fast recovery  Increase NPV with more oil/gas recovery  Increase NPV with reduced CAPEX and OPEX Investment time $ Production time

5 Shorten the investment time  Quick regulator and partners approvals  Quick Design and Engineering  Quick Equipment Manufacturing, delivery and installation .

6 How does real time information shorten well construction time?  Reduce well placement time –Drill the hole to target reservoir at first trial –Avoid high pressure zones which increase drilling risks –Use reservoir illumination on first wells to optimize placement of future wells.  Reduce drilling time –Real time feedback on formation, ECD, gas count, mud losses to optimize drilling practices.  Collaborative work space to speed up the decision making process –Where to core? Where to put the casing point? When to stop? –Is the right tool run? Is the tool calibration done properly? –Is the data interpreted properly?  Reducing completion time –Where to perforate? –Gravel placement / Stimulation design and execution monitoring  Crisis management –Equipment failure –Contingency

7 Real time drilling center Geosteering of horizontal drain Driver: work in a collaborative way to optimize the position of the drain Norway

8 Aberdeen UK: Improve drilling efficiency in the north sea

9 Location: Deep Water East coast, India. Remote Center: Onshore Center - Mumbai Case: Evaluate commerciality of a potential gas reservoir It involved surface readout of pressure below the downhole DST valve using the DataLatch* electrical wireline downhole recorder and transmitter system. Real-time data allowed for quicker response and better decision-making. Effective communication between engineers at the wellsite and the onshore center. Well testing in India “This was the first time that this type of data transfer for a DST was attempted in any of our wells. We all appreciate the Schlumberger effort for providing real-time data through its InterACT system to our office. The implementation of real- time data transfer was very productive, and we would like to use this process again in the future.” Customer Reservoir Department

10 right now? Investment time $ Production time

11 Optimize the Production Time  Accelerate production  Reduce down time  Identify and fix problems wells  Optimum utilization of down hole equipment to reduce failures.  Extend the completion life

12 How to Optimise the Production  Onshore “control centers” improve daily reservoir and field asset management  Capable staff focus on high-potential issues and complex problems  Continuous data from many sources is managed and integrated into reservoir and economic models  Sub-surface model refreshed with new information and knowledge  Early identification of discrepancy between real and simulated data

13 ProductionWatcher* Diagnostics – eg, PTA, Nodal Analysis

14 Real Time Reservoir Management: The Enabler  By improving reservoir imaging and characterization  By monitoring the reservoir response and the ability to control the well real time.  By using information management systems and the relevant technologies  By facilitating decision making with the use of expert software, visualization and collaborative work environments The focus is on increasing hydrocarbon recovery factors from 25% to 40% or more.. The Digital Oilfield Schlumberger Information Systems & DCS

15 Real time decision making workflow Monitoring Data Transmission Data Manipulation and Storage Decision- making Instructio ns Action

16 Decisions & Activities: Time Span seconds1 day90 day2 years10 years  Control room decisions  Event & fault response  Minimize downtime  System reconfiguration  Export obligations  Safety  Choke & sleeve settings  Lift system diagnostics and optimization  Network optimization  Planning of simultaneous operations on integrated offshore platforms  Optimize reservoir drainage, injection  Infill wells  Remedial well ops  Recompletions  Schedule interventions  Optimize investment planning  Optimize secondary recovery  Tie-in marginal fields Operator Optimization Production Optimization Field Optimization Reservoir Recovery Optimization

17 Oilfield Assets: Challenges and Potential Controlled Shutdowns Scheduled Maintenance Uncontrolled Shut downs Gathering Bottlenecks/ Process Inefficiencies Completion Inefficiencies Reservoir / Well Restrictions Field Development Inefficiencies True Economic Field Potential Actual Output Today Monitoring, Control and Surveillance Production Optimization Reservoir Optimization

18 Real time information today is a reality