Enabling Integration of Core Work Processes in Upstream Oil and Gas Kaare Finbak & Pål Rylandsholm Det Norske Veritas, Ray Verhoeff, OSIsoft

OLF = Norwegian Oil Industry Association Topics Covered Integrated Information Platform (IIP) project Background The new operation concept Integrated Operations (IO) OLF’s strategy for Quality Information Purpose and deliverables Objectives Deliverables Take-up process OLF’s Daily Production Reporting project OSIsoft RtPM for Production Data Exchange in Upstream Oil & Gas IO New concept Large potential IIP Research project Integrated Information Platform for reservoir and production systems OLF = Norwegian Oil Industry Association Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

DNV - Det Norske Veritas Independent foundation Objective: To “Safeguard life, property, and the environment” Established in 1864 in Norway Top 3 certification body world-wide Top 4 ship classification society world-wide Global representation 6095 employees DNV has per 1.1.2006 a total of 6,095 employees, including long-term subcontractors and employees in wholly-owned companies, in close to 300 offices in about 100 countries. Independent 3d party – certification and classification DNV’s four business areas Maritime Certification Technology Services Consulting In addition, there is DNV Software, an independent business unit. Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

DNV – Information Quality Management Business Information Services Requirements Governance Architecture Information Quality Assessment and Rating Information Training and Education Standards Information Models & Data Standards Test Center Compliance to Standards (Software) Validation according to Standards (Data) Independent Data and Information Hosting IQM: New business area in DNV. Markets: Oil & Gas, Defense and Public Sector Business Information Services Information Requirements – Identifying Core Data Information Governance Information Architecture Information Quality Assessment and Rating Information Maturity Assessment Information Quality Plan Information Training and Education Standards Training for Management and Experts Information Models & Data Standards Integration of Industrial Data (ISO 15926) Product Life Cycle Support (ISO 10303-239 ) Structured Data (S1000D) Other Information Models and Standards Test Center Software Compliance According to Standards Validation of Populated Data Sets According to Standards Independent Data and Information Hosting Data Hosting and Management of Information Resources Managing risk by managing information Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

According to OLF, IO increases revenue and reduces costs Trondheim Expert center Expert center Bergen Vendor’s onshore operation centre Stavanger Aberdeen Control room Fiber cable Real time data Expert center Operator’s onshore operation centre Source: OLF, 2005 Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

OLF predicts that IO will be implemented in two main steps Automatic optimization IO Generation 2 Integrated operation centers of operators and vendors Heavily instrumented facilities Heavy automation and multi-domain optimization of processes Vendor Operator Intelligent facilities Real-time pipeline Vendor Real-time collaboration rooms Reservoir & production management IO Generation 1 Integrated onshore and offshore centers Intra-domain optimization of work processes Drilling & completion Traditional facilities Operation & maintenance Source: OLF, 2005 Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

OLF intends to establish an information pipeline that supports both IO generations Automatic optimization Vendor Web portals Processes Web services Field data Health, safety, environment Drilling & completion Reservoir & production management Operation & maintenance Operator Schemas for automatic exchange of data Vendor Terminology Taxonomy Ontology Semantic oil & gas web Source: OLF, 2005 Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

Terminology, taxonomy and ontology? Reservoir & production optimization Services Well monitoring Reservoir monitoring Production monitoring XML HSE Drilling Completion Reservoir Production Operation Maintenance Terminologies Taxonomies Terminology: A set of terms representing the system of concepts of a particular subject field. Taxonomy: A hierarchical classification of things. Almost anything, animate objects, inanimate objects, places, and events, may be classified according to some taxonomic scheme. Ontology: Is typically a hierarchical data structure containing all the relevant entities and their relationships and rules within that domain. Ontologies Project Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

Automatic optimization Intelligent facilities The IIP project delivers required terminologies, taxonomies and ontologies Automatic optimization Generation 2 Complete ontologies supporting automated reasoning or inference of data using logical rules Taxonomies for multiple domains Intelligent facilities Oil & gas ontology Real-time collaboration rooms Generation 1 Terminologies for single domains The basis for XML schemas for automatic transferal of data between applications in same domain Traditional facilities Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

The project targets key business domains Develops terminologies based on solid business knowledge Input from project participants Other projects specifications Domain specific standards Prepares approval of the terminologies by international standardization bodies ISO and W3C POSC Caesar and POSC Addresses short term … Terminologies and XML schemas for real-time exchange of data … as well as long term business needs Taxonomy and ontology supporting optimization of processes across domains Production Drilling Geometry and topology Reservoir characterization Condition monitoring Equipment Safety and Automation System Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

Deliverables will be available on the Internet Publicly available from www.posccaesar.com during Q2 2006 Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

Visualization http://ht.vestforsk.no/demo/production/index.html Terms Definition Demo. Way of browsing simple hierarchical structures – hyperbolic tree Click and “pull” to browse structure Search Definitions Demo available on: http://ht.vestforsk.no/demo/production/index.html http://ht.vestforsk.no/demo/production/index.html Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

The project is supported by many key players Oil companies: Hydro and Statoil Vendors/engineering: FMC, National Oilwell Varco, Poseidon Consulting/IT: Capgemini, Oilcamp, Amitec Specialists/Research: Force, DNV, NTNU Assosiations/Organisations: OLF, POSC, POSC Caesar Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

Project schedule and budget Total current budget: 24 MNOK (3 MEUR) Project Duration: 16.06.04 – 30.06.07 The project is partly funded by The Norwegian Research Council program PETROMAX and by the project participants. Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

OLF’s Daily Production Reporting project One of several fast-track take-up projects initiated by OLF

Daily Production Report - Project details Scope: Develop ontology and common XML schemas for daily production report Participants: All major operating companies on the Norwegian Continental Shelf IIP contribution: Terminology and standard XML Pilots: Åsgard and Valhall Implementation: Started January 1, 2006 Situation before: Daily production reports on different formats Scope: Develop a common XML-based standard for reporting of daily activity and production data Participants: Statoil, ENI, ESSO, Shell, BP, Petoro, DNV, ConocoPhilips, Hydro Pilot planned delivered in August this year and implementation in LW during autumn 2005. Benefits: Standardised and efficient partner reporting and follow-up Source: OLF, 2005 Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

Daily Production Report - System overview ISO 15926 Operator LicenseWeb Authorities, operator & partners Internal prod. data system License Web Excel reports Std. reports Non-std. reports XML file Prod. report XML file Valhall Åsgard Benefits: Efficient exchange of production data and daily production reporting Source: OLF, 2005 Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

A Daily Production Report XML based on standard XSD Standard report Source: OLF, 2005 Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

OSIsoft RtPM And The IIP Project Provides terminologies, taxonomies and ontologies to be used for real-time optimization of reservoir and production for heavily instrumented oil and gas fields Provides framework for collecting, structuring, storing and analyzing real-time field data from heavily instrumented oil and gas fields May enable Reliable real-time information pipeline supporting G1 and G2 integrated operations Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

OSIsoft RtPM in Upstream About the upstream business… Problems & Solutions Exchanging data The ProdML Initiative Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

Priorities in Upstream Cambridge Energy Research Associates (CERA) polled leading E&P firms in 2006: “Total Asset Awareness” better sensor technology better in-field communication systems advanced data mgmt solutions Visualization & Analytics automated model updating improved visualization system-wide optimization (both surface and subsurface) Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

OSIsoft in Production & Refining 37% of the world’s refined products are monitored by PI Installed in 26% of the world’s refineries 15% -20% of the world’s oil fields are monitored by PI Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

OSIsoft RtPM in Upstream Green field, brown field, offshore Production is a complex business… Few free flowing wells Most done by injection of steam or gas Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

Controller or Casing Choke Injection Production Controller or Casing Choke Wing & Master Valve Flowline Choke 10 11 20 12 25 26 27 21 22 13 3 Separator 14 15 4 16 5 Compressor 1 From Well Compressor 2 23 To Well Production Header 24 Gas Header Compressor 3 From Well Gas Lift Valve Talk about distribution of pressure in well, compressor, separator, etc. Frequent testing to determine flow characteristics and response to pressure To Well Tubing Valve Choke Measurement # Casing Packer 1 Perforations Gas Lift Well 1 2 Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

Upstream Data Management Problems Frequently changing flow network configurations Hard-to-measure data “3 phase” flow meters rare Data reconciliation and estimation needed Back-allocation Optimization Reporting must be accurate Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

Interaction of Applications “Chaining” of applications needed in the field Measured data feeds estimated algorithms Estimated feeds enter back-allocation algorithm Allocated data fed to modeling software Modeling software drives optimization … Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

Solutions abound Many vendors offer analytical solutions Data exists, but from a variety of sources This suggests a data exchange standard! Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

Full Production Facility This shows that a real facility is much more complex than a single well. Flows between process units are many and can be shut in to redirect flows or to shut down a well for testing. Knowledge of the flow network is important to the applications generating simulated results. Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

Rendering in XML <unit> <name>A</name> <flow> <name>…</name> <kind> … </kind> <port> <direction>inlet</direction> <temp> … </temp> <pres> … </pres> <product> <period> <dTimStart> etc. <volume></volume> </period> </product> </port> </flow> </unit> This fragment does not represent actual ProdML XML. The point here is that XML is always populated by repeating groups of elements. Each element has repeating subgroups to hold component data as so forth. This is a hierarchy. My point is that in order to emit XML like this, it helps if you organize your data in an infrastructure that supports both network and hierarchical organization. Now, where have you heard this before? Yes! The Foundation project. Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

“Foundation” Foundation is… A flexible enterprise asset model Relationships between the assets: Hierarchical Flow network Not just one relationship Access to: PI data Relational and web service data Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

ProdML Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

ProdML Members Oil Companies Software Companies Standards Organization BP, Chevron, ExxonMobil, Shell, Statoil Software Companies Halliburton, Invensys, OSIsoft, Petroleum Experts, Schlumberger, Sense Intellifield, TietoEnator, Weatherford Standards Organization Petroleum Open Standards Consortium (POSC) Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

Sources Wellhead Information Transfer Standard Markup Language (WITSML) W3C ISO 15926 OPC UA WITSML: ProdML is an evolution of concepts defined by WITSML. One of the features being added is the notion of data at a point in a process coming from more than one source: measured, simulated, allocated, etc. W3C: strong interest in the consortium to implement web services strictly to industry standards. ISO 15926: does a superior job of defining the characteristics of physical production equipment. Originally designed to exchange equipment specifications between companies building production facilities and companies operating them. ProdML is not projected to require this level of detail at this time. It is more focused on the material flows between production units. Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

ProdML Use Cases: The Flows Optimal allocation of lift gas, current time only Flow #2 Evaluate model, compare with actual performance, notify if different, current time only Flow #3 Similar to Flow #2, but use historical data Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

ProdML Flow #2 Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

OSIsoft Implementation of ProdML Data Out Data In Model Out Model In ProdML Data Web Services Foundation Asset Database Foundation SDK ProdML Network Model Web Services Foundation SDK PI Data Reference PI Archive Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

Summary Data flows in upstream production management are complex Many vendors contribute to solution Standards-based data exchange makes collaboration possible OSIsoft RtPM is the infrastructure for ProdML support Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.

.. the end Copyright © 2006 OSIsoft, Inc. Company Confidential. All rights reserved.