Summary from the Strategic Work session Paris May 14th-15th 2007

Strategy Track Subject Areas: –[S1] Refine the WITSML long-term road map. For those from energy and vendor companies with significant WITSML experience and a clear vision for WITSML’s destiny. –[S2] Conduct an open workshop on how to define and obtain approval for a business case for WITSML use in an energy company. For people involved in making such decisions, preparing proposals, and supporting the decision process.

Review and Agreement of Basic Road Map Principles Objective: Agree on basic Road Map principles –Before we begin the three-track sessions Assumption: –The Strategy Road Map session [S1] will refine the draft Road Map (December 2006) using this as a starting point. Road Map Principles: –We need a future plan (Road Map) that includes target dates for new versions of the WITSML Standards. –New versions (releases) can generally be classified as: Major: Substantially changed scope and/or substantially not compatible Minor: Substantially same scope and substantially compatible Bug-Fix: Changes are only to fix errors (not to add functionality)

Road Map Dimensions to Consider: 1.A subset of Operators currently use WITSML on at least many of their Drilling projects. Define the intended growth curve to approach saturation. Expanding the size of the market is essential for growth of investment in new and improved products and services. 2.A subset of WITSML objects are currently used widely. Well, Wellbore, Trajectory & Trajectory Station, Log, Realtime Define the intended growth curve to bring the remaining objects into use (or define timing and processes to delete these from the WITSML Standards.) Having unused Objects in the Standards can be detrimental.

Road Map Dimensions to Consider: 3.The Completion object is generally not used by Completion contractors. Define the intended growth curve to bring this Object into use (or define timing and processes to delete it from the WITSML Standards.) Having unused Objects in the Standards can be detrimental. 4.Up-front quality control, integration, consistency, etc. functions were anticipated but not realized. Define the character and timing for enabling these capabilities (automation). Anticipated benefits from WITSML are hard to justify without reliability and high quality assurance processes.

Road Map Dimensions to Consider: 5.It is believed that interventions (maintenance, workovers, etc.) can be supported with modest enhancements to current WITSML. Define the intended growth curve to support various aspects of intervention functionality. This can further widen and deepen the valuable use of WITSML Standards. 6.Some are using or want to use WITSML to share data among analytical processes, long-term data stores, etc. Define the character and timing for officially expanding the intended scope of use of WITSML Standards. Ambiguity / lack of official support for such uses causes uncertainty and leads to missed opportunities to deliver value.

Road Map Dimensions to Consider: 7.Given the progress of IT technologies and infrastructure standards, periodic reviews and revisions of WITSML Standards should be made. Define the intended timing and nature of such a review, to include for example: XML sub-technologies and standards, Web Services/SOA, etc., and including reviews by member company architects. It is best to know where such upgrading could be useful and to plan when and how this will happen. Suspicion that aspects of WITSML are out-of-date already exist in the industry. 8.Given the progress of allied and cross-industry standards developments, periodic reviews of WITSML Standards should be made to ensure appropriate interactions and interfaces. Define the character and timing for such reviews, to include for example: PRODML and the various equipment classification and characterization standards efforts. Lack of official positions and plans in this regard can cause missed opportunities and misperceptions that can impede growth of use.

Road Map Version Release Pattern –Bug Fix ~ asap when no work around, at least 1 year –Minor ~ 2 years –Major ~ when needed (revisited in the regular WITSML meetings) Compatible new or expanded data objects / schemas can be accommodated as additions. Backward compatibility should always be the goal for improvements Milestones –2008 Minor Release (Automation, other pending issues) –2009 Bug Fix –2010 Minor Release –2011 Bug Fix –2012 Minor Release –2013 Bug Fix –2014 Minor Release

Service Company Perspective High Cost – WITSML is not ‘free’ –Development –Implementation –Support –Vendors cannot charge a premium for supplying WITSML Slow take-up of WITSML in the industry –Lack of understanding in the industry Opening up for competition (positive and negative) A lot can still be done with WITS New opportunities for cross disciplinary business Consolidation vs. development of WITSML

Service Company Perspective High Cost – WITSML is not ‘free’ –Development –Implementation –Support –Vendors cannot charge a premium for supplying WITSML Benefits is all for Oil Companies not vendors –Oil companies can build hybrid systems Current situation: –10% of jobs demands WITSML –50% of jobs demands WITS

Service Company Perspective WITSML produces additional competition to large providers from small companies Lack of understanding in super majors about WITSML WITS works – less certainty about WITSML Small companies have got greater opportunities for market engagement. Typically they might be suppliers of tools that deliver the business benefit Cross service-provider business developing opportunity on the back of WITSML

Service Company Perspective Desire by service companies to have proprietary communication from rig to office (typically to their data senter) –Reduce cost –Improve service quality WITSML is a moving target Big service providers are more interested in using WITSML as a back office solution

Oil / Energy Company Perspective DIGITAL GROUP RIGSITE PERSONNEL D&C / G&G GROUP 24/78/5 ? 8/5 – 24/7 WITSML innovation Domain Experts Contracts response. Delivery Must complete well

Oil / Energy Company Perspective Operator keeps control and ownership of data Enables 24/7 Standard architecture allow greater integrity in configurations Interact / Insite Anywhere / Riglink are used widely but WITSML enables us to see RT data in native applications Challenge to demonstrate value directly to the WITSML, focus on value of enabled work processes Operating personnel are to busy to change work process Handling WITS data streams are time consuming. This is taken away by WITSML

Oil / Energy Company Perspective Operator owns data and wants to keep the control of it Analyzing RT data allows us to innovate Standard architecture allow greater integrity in configurations Statoil is very interested in 24/7 RT data (WITSML) Interact / Insite Anywhere / Riglink are used widely but also need to see RT data in native applications (eg. G&G and D&C)

Oil / Energy Company Perspective WITSML benefits are often seen more in digital group whereas contract reside in function group (some companies) Oil companies are using RT data feeds 24/7 but have difficult in demonstrating added value from RT WITSML specifically Smart applications will need access to RT data (either in WITSML or in proprietary format) Transition period for moving to a point where WITSML is globalised. Accepting extra cost.

Oil / Energy Company Perspective Need to align WITSML with other stakeholders – e.g. Digital Security Shaping curve details – Propagate from single instance to enterprise solution Subsidiary groups must be convinced. Not an automatic process. Concern about the ‘Big Brother’ effect. Rigsite personnel are too busy to try new processes and may not be aware of what is possible

Oil / Energy Company Perspective A lot of management of handling WITS data – WITSML might eliminate much of this but there is a lack of confidence that WITSML can do this WITSML is currently not W3C compliant Free up time from Data Management for D&C / G&G personnel Integration

What to focus on when deciding to go for WITSML D+C / G&G function is getting access to RT data in familiar applications Rigsite is getting expert involvement / help, and operational support from onshore It is creating ‘ease-of-use’ for the Digital Group It creates the possibility for on-rig data exchange between vendors

Strategic areas for further development of WITSML and actions Benefits and roadmap for SOA and W3C compliance –PRODML/Chevron grp. document to technical grp. Automation for: (use case / tech.group) –Digital group –D&C / G&G group Look into bi-directional development –Strategy group Smart applications (Decision Support) –On hold Write paper : Review status, vision, examples of WITSML –Strategy group (Statoil, Shell, BP, Energistics, Halliburton, Schlumberger)