<PRODML/> - Industry Standard <PRODML/> PRODuction xML Standard Overview Rick Morneau Transformational Information Technology Focus Area Manager Chevron Energy Technology (on behalf of the PRODML Community) <PRODML/> - Industry Standard

<PRODML/> Agenda What is PRODML Motivation Scope Proof of Concept Pilot - 2006 Current Status Summary <PRODML/> - Industry Standard

<PRODML/> What is it? A shared solution for information exchange allowing Upstream Oil & Gas Companies more easily execute those software applications used to optimize production Production optimization involves integrating real time data from specialty, multi-vendor software applications and streamlining work processes to enable oil and gas field operational efficiencies A project that will develop software products to improve data exchange and work process efficiency in production optimization <PRODML/> - Industry Standard

<PRODML/> - Industry Standard Motivation … <PRODML/>  Optimization 0.0 0.5 1.0 1 7 13 19 25 Time Oil Production . True Production Potential Periodic Manual Optimization No Optimization Activity <PRODML/> - Industry Standard Modified from Ron Cramer, Shell Global Solutions

<PRODML/> Motivation Integration Between Operators & Vendors Vendors and operators act as systems integrators Must address issues such as: Remote maintenance & privacy Software robustness Data quality & attributes Changes in versions Operator Applications Vendor #1 Reservoir Simulator Vendor #4 Optimizer Vendor #5 Network Model Vendor #2 Well Model “Solution” Integrator Vendor #6 Reservoir Simulator Vendor #3 Historian Vendor #8 Daily Reports Vendor #7 Alerting Tool Vendor #9 Collaboration Environment <PRODML/> - Industry Standard From Stan DeVries, Invensys

<PRODML/> Motivation Efficiency = time and money Up till now, oil companies and service providers wasted time and effort converting common data PRODML will allow the transfer of production data more easily saving money across the industry allowing us to concentrate on the real business, not data management The Bottom-Line PRODML is in our business interest <PRODML/> - Industry Standard

<PRODML/> Producing Asset Scope The Production Domain Initial Scope From bottom of the well to initial separation Gathering Separation & Distribution Injection (Water, Steam, CO2) Water Handling Gas Treating Facilities Oil Treating Facilities Export Facilities Reservoir Management: Gas & Oil Contract Deliverability Decisions we can effect in a day

<PRODML/> Chevron 2006 Pilot Make it real Real Problem – water handling Real Data – used all data from existing field Real Data Volumes - ~ 1000 producing well and ~ 700 injection wells Real field time – SCADA (minutes) & well tests (daily) <PRODML/> - Industry Standard

<PRODML/> Chevron 2006 Pilot Problem Statement Producing water – need to handle Produced water Inject it Store in tank Store (inject) in disposal wells <PRODML/> - Industry Standard

Chevron Proof of Concept Pilot <PRODML/>PRODuction xML Standard 1 Trigger: Clock set for once a day Invensys Notification GiveData 2 Get tank data (7 days) 12a 12b 3 Model: 7 day tank forecast 5b 5a 4 Pass tank forecast 5 Alarm to notification Data Integrator GiveData 6 Get well status forecast 11 7 Model: Maintenance forecast 4b 8a 8b 6a 6b 8 Get Field forecast GiveData GetDataAsync GetDataSync 4a 9 Get allocated production 1000 wells Invensys InFusion Tank Forecast Halliburton DSS Well Production Forecast Weatherford LOWIS Well Status Forecast 3 1 10 7 10 Model: 7 day production forecast 11 Model: Well vs. Facility 2a 2b 9a 9b GetDataSync 12 Consolidate data Remove “Add to Store” etc. Point out complex workflow and integration between various applications. Energy Components Daily Allocation / Status / Well Listing GetDataSync Invensys Facility SCADA History Local System Field Gas Sales History Local System (SS) Field Oil Sales / Inventory History Weatherford Well Test History Weatherford Status History <PRODML/> - Industry Standard

<PRODML/> Chevron 2006 Pilot Result Complete Success Demonstrated scalability Provided Confidence <PRODML/> - Industry Standard

<PRODML/> Chevron Current Complete PRODML Training Actively participating in PRODML ’07 Work Group Actively participating in PRODML SIG Actively planning PRODML ’07 Work Group Pilot <PRODML/> - Industry Standard

<PRODML/> 2006 Goals when we started Summary of 2006 End goals Commercial applications (not a stack of paper) Change the software landscape in upstream operations Completion target of September 2006 After September, identify next high value items Increase Industry participation www.prodml.org PRODML using WITSML model: End result of PRODML is commercial applications, not a stack of paper PRODML will alter the software landscape in upstream Completion of PRODML project is SOON – September The plan is to identify next high value need for data exchange at end of PRODML to ensure forward motion Tackling production optimization is the toughest & number one issue Next standards will likely be easier. Example: Reporting would have been easier How can you be involved? www.prodml.org Follow along Provide feedback PRODML participants stand up Shake their hand, pick their brain <PRODML/> - Industry Standard

<PRODML/> - Industry Standard Thank You Rick Morneau <PRODML/> - Industry Standard