Energistics SIGs, Work Groups and Program Management Update: PRODML / WITSML / GUWI Energistics Western Europe Region & SIG Meeting NPD Stavanger, Norway 17 June 2008

WITSML –Drilling Data Exchange & Web Services Standards WITSML SIG PRODML –Production Data Exchange & Web Services Standards PRODML SIG and PRODML Work Group 2008 GUWI Initiative –Well Identity Standards & Services Asset & Data Management SIG and WIS Work Group Other Initiatives Presentation Outline 2

Principles –Success is delivering value to industry through collaborative efforts of members –Value is focused on increasing operational efficiency Basics 3

Major Initiatives –Associated with E&P subject areas within Special Interest Groups (SIGs) –May be accelerated to achieve specific goals with Work Groups (WGs) operating inside SIGs –Objectives for initiatives are expressed through value-oriented, multi-year use case road maps Basics 4

Challenges: Learn how to … –Align vision with business strategic objectives “Strategic Standards Management” –Define progression of capabilities leading to vision “Competency Maturity Models” –Help members deploy widely and achieve value “Awareness, Adoption, and Deployment Planning” –Quantify deployment progress and value received “Value Measurement Methodology” Basics 5

Board of Directors Management & Staff Membership Advisory Council Other SIGs Energistics Membership and SIGs Data Management SIG WITSML SIG PRODML SIG Participants Energistics Standards: WITSML, PRODML, etc. SIGs are standards user communities

Industry Services SIG Technical Architecture Energy Identity Trust Energistics Subject Areas Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production OperationsGeophysics Drilling Operations Completion & Workover Asset Management Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover Integrated Reservoir Modeling SIG Geophysics SIGWITSML SIGPRODML SIG Geology SIG Asset & Data Management SIG eRegulatory SIG Facilities SIG (n/a)

WITSML (Drilling)

Wellsite Information Transfer Standard Markup Language WITSML™ – “The ‘right-time’ seamless flow of well-site data between operators and service companies to speed and enhance decision- making” Open Information Transfer and Web Services Standards for the Oilfield

What is WITSML ? WITSML is a Web Services framework for moving drilling data between rig and office-based computer systems. Context: –Internet –XML Schema –Web Services Openly available to all to implement. – – Hosted by Energistics –User community is the WITSML Special Interest Group

WITSML Special Interest Group Members A set of Data Exchange and Web Services Standards First published in 2001 Version 1.4 due in Q3 50+ Companies Hosted and Facilitated by Energistics Semi-annual Events

Next Major WITSML Events Location: Dubai UAE SIG Working Meetings: Nov Public Seminar & Vendor Exhibition: Nov. 19 Host Organization: Sponsorships Available

General Well Message Operations Report Real Time Wellbore Wellbore Geometry Risk ChangeLog Directional Drilling Systems Tubular / Bit Record BHA Run Fluids Systems Fluids Report Surface Logging Mud Log Logging While Drilling Log  Well Log (includes Wireline) Formation Marker Coring Sidewall Core Conventional Core Surveying Survey Program Target Trajectory Rig Instrumentation Rig / Rig Equipment Cement Job Source: BakerHughes/Paradigm Communication Subscription Server Capabilities Original Updated Added WITSML Data Objects / XML Schemas Completion

WITSML Public Web Site

KSI (2) LIOS (1) Kongsberg(3) Geologix (1) INT (1) Petrolink (4) … HRH … Petris Product Certification Program

First Level Server Testing Capability –Launch by year-end –Testing WITSML Server Products –Testing Program Consists of Server Test Software Testing Scripts/Queries Test Data Expected Results Product Certification Program 16

Open for WITSML User Organizations that are Energistics Members –Launched at May 2008 WITSML Meetings –User Profile Use Policy in Place Use Cases Supported (real-time acquisition, other acquisition, field data control, field analysis, transfer from field to office, office analysis, completion processes, intervention processes, production processes, other) Types of Products Used (Client Producer, Client Consumer, Server, etc.) Data Objects Used and How Used (well, wellbore, realtime, wellLog, rig, etc.) (read, write, etc.) User Registration Program 17

WITSML Timeline Years Version 1.0 Version 1.1 Version 1.2 Version Version Version Version 1.4 Version Version 1.5 or 2.0 Stage 8: AuditStage 5/6: ReleaseStages 2-5: DevelopmentStage 6,7: Deployment Stage 1 Planning

WITSML: Strategic Challenges [May 2007, Paris] 1.Increase from Early Adopter to Full Deployment 2.Increase the number of data objects in use 3.Put Completion data object to use 4.Address automation, QC, integration needs 5.Address workovers, maintenance (interventions) 6.Address analytical, decision-making processes 7.Study and upgrade to current SOA/WS/W3C 8.Study and align with PRODML and external standards 9.Address bi-directional data flows, i.e. to the drilling site

Drilling Data Architecture (with WITSML)

Simplicity and Integration Simplicity – Achieved through Consistent data element and structure definitions and semantics Consistent interfaces among cooperating software components Integration – Achieved through the ability to Compare and Combine – Data from multiple diverse sources.

What are WITSML Benefits for BP? Simplify the award of contracts to service companies Enable remote working and automation Encourage adoption of multi-service-company solutions Speed up deployment of technical applications Improve health, safety, and environmental factors Improve operational efficiency Help address the “big crew change”

What are WITSML Benefits for Total? More secure data streaming from rig to office Improve wellsite geology and surveillance –Pore pressure analysis, mudlogging, etc. Improve data quality and accessibility Integrated data sharing: drilling-production (PRODML™) Enables future technology evolution at minimum costs –Well seismic, wired-pipe, etc.

What are WITSML Benefits for StatoilHydro? WITSML and WITSML-based processes and products can make it cost effective to implement complex and challenging business cases –Complexity of the physical environment –Diversity of service companies involved WITSML can be a catalyst to the identification of new business opportunities Largest well in the Troll field superimposed over Bergen (to scale)

What are WITSML Benefits for Shell? Moves Data effortlessly, neutrally Enables real-time data flows Supports well planning and design Combining expertise leads to optimal well delivery – Office staff involved in well execution – Reduction of personnel on the rig Improved partner reporting – Timely, high quality exchange of data without restriction on how that data is used or interpreted

WITSML Summary WITSML is ready to deliver value for you today. Embed WITSML as part of your real-time data architecture Use WITSML to get the right data to the right person Real-time validation and optimization to improve drilling performance Improve reporting quality with less effort Demonstrate value from WITSML usage and expand scope of use

PRODML (Production)

Production [Data Transfer] Markup Language PRODML™ – “The ‘right-time’ seamless flow of production data among optimization, reporting and management processes.” Open Information Transfer and Web Services Standards for producing fields.

What is PRODML ? PRODML is a Web Services framework for moving production data among analytical and reporting components. Context: –Internet –XML Schema –Web Services Openly available to all to implement. – – Hosted by Energistics –User community is the PRODML Special Interest Group

A set of Data Exchange and Web Services Standards First published in 2006 Version 1.1 due in Q3 ~30 Companies Hosted and Facilitated by Energistics Quarterly Workshops First Public Tutorial in May 2008 PRODML Special Interest Group Members

Flow Network Topology (Product Flow Model) –Production and injection wells, equipment, etc. –Static Model of Flow connections: outlet to inlet Measurements (Production Volume Report) –Production volumes and flow rates –Pressures, temperatures, etc. Test results (Well Test) Production Activity Report Distributed Temperature Survey WITSML Data Objects / XML Schemas

PRODML Public Site

Boom in highly instrumented fields. Energy companies keen to exploit opportunity for better use of near real-time data in optimal operation of assets. (aka “Digital Oilfield” etc.) Current landscape is fragmented – multiple commercial and in-house tools Efficient means of interoperability between these tools is essential for more efficient workflows PRODML Background

Operational Modeling –Predict future measurements from history and operational plans Allocation and Reconciliation –Derive critical values from measurements, as in back-allocation Surveillance and Monitoring –Continuous comparison of actual to predicted measurements Simulation and Optimization –Predict future measurements and set points to achieve objectives Advisory and Alert –Invoked when predicted and actual performance differ significantly Types of PRODML Applications

A common language for production data has been created Commercial application has commenced, eg: –Production Reporting (Statoil) –Waterflood management (Chevron) –DTS data management (Weatherford) –First Commercial Applications (Schlumberger) R&D Proofs of Concept have been substantial: –Gas Lift Optimisation –Downhole sensors –2,000 well dataset transfers –Network Model changes moving between applications PRODML – Material Progress

THE PROBLEM Multiple Component Solutions Lack of Interoperability standards THE SOLUTION PRODML Open Standards PRODML: Addresses Key Area of Asset Management 2006 PRODML Initial Scope SCADA Systems Sensor Data Reservoir Models Geoscience Data OPC Domain De facto Standards PRODML Domain High FrequencyLow Frequency Drilling Systems WITSML Domain Maintenance Systems Maintenance Domain Many Production Applications Application A Application B Application etc. Application C Business Processes After Chevron, ExxonMobil

PRODML Focus: Production Optimization Roadmap in place: 2 1/2 more years to industry standard Use Case Examples: [Timescales approximate] Gas Lift Optimisation (changes in well status or lift gas available) during 1 day Smart well control optimisation (offtake control from production data) weekly Production-Reservoir Operational mgt. (transient testing, voidage etc) monthly Development Planning (production data integrated with reservoir simulation) year 30 PRODML Focus High Frequency Low Frequency Business Processes Timeline: Daily Surveillance and Reporting Year (i)(ii)(i)(ii) Use Cases Gas Lift Opt. G/L & flowing well surveillance Downhole sensors PTQ, DTS Daily reporting Reporting NOJVs ESP wells SRP wells Timeline: Weekly Production Management Year (i)(ii)(i)(ii)(i)(ii) Use Cases Smart well offtake optimiz- ation Fluids capacity forecast Smart well optimiz-ation & downhole allocation Fluids capacity optimiz- ation Well completion transfer & referencing Welltest validation Integration with facilities maintenance Timeline: Field Optimisation Year (i)(ii)(i)(ii) Use Cases Shared network model with change propagation Shared network model with different detail level Reservoir voidage and monitoring Integration with process simulation Monthly regulatory reporting Timeline: Field Development Planning Year Use Cases Reservoir- Production Dev Planning

Release of Version 1.1 –Technical work closed –Now preparing “release candidate” material –Followed by reviews and Release in Q3 Post-Version 1.1 Infrastructure Additions –Initiated in 2007 after a technical review with vendors –More efficient and flexible data access methods for time critical interactions –Authoritative source of production component identities PRODML: Current Activities

Work Group ‘08 Candidate Field Deployment Projects –Chevron (Nodal Analysis Well Modeling, NOJV Partner Reporting) –ConocoPhillips (NOJV Partner Reporting) –ExxonMobil (NOJV Partner Reporting) –ONGC {with BG} (NOJV Partner Reporting) –Pioneer (Reporting) –Shell (NOJV Partner Reporting) –StatoilHydro (NOJV Partner & Regulatory Reporting, Field Optimization) –Total (Artificial Lift & Well Test Validation), PRODML: Current Activities

PRODML Timeline Years WG06 + Version 1.0 WG07 Version 1.1 WG08 + Version 2.0 Stage 8: AuditStage 5/6: ReleaseStages 2-5: DevelopmentStage 6,7: Deployment WG09 Stage 1 Planning Version 2.1 WG10 Version 2.2

41 BP PRODML Pilot Implementation Sub-set of Horn Mountain: – PI Historian data: June 2 nd to June 10 th – Three gas lift wells The purpose was to test PRODML not the Technical applications – PRODML Interactions (Web Services) – Plug & Play Applications (OSIsoft or Kongsberg Consolidator) Pilot overview: Four phases – Monitor: Gas lift gas rates from the PI Historian – Alert: Trigger based on minimum gas lift gas available value – Optimize: Run optimizer - Triggered by user manual inputs – Report: Report optimizer results

Chevron PRODML Pilot Implementations Based on a large “old” waterflood field Concentrating on water handling Providing a number of vendor opportunities Developing in-house capability Expanding in scope over time – 2006: Compared actual vs. forecasts; 1700 wells – 2007: Forecasting, Managing Capacity, Optimizing Field Network, Visualizing Cross-Functional Data – 2008: Refine “plug-n-play”, Testing Post V1.1 Capabilities, NOJV Partner Reporting, Well Modeling Nodal Analysis using Drilling Data

DTS (Distributed Temperature Sensing) gives a continuous temperature profile along a well –One way to improve accuracy is to reconcile the DTS profile to a single point-source temperature sensor Energy company assets can have DTS and PT sensors from multiple vendors –A standardized method to transfer raw and calibrated DTS logs To/From a DTS database as well as point temperature readings - typically from a well-agnostic process historian is beneficial –In case there is a need to change the DTS or PT sensors, this can be done seamlessly without affecting the subsequent process flows Shell PRODML ’07 Pilot Implementation

Work Group ’08: Types of Projects Field Deployment Project –Led by an energy company –Target is deployment in a particular field Product Development Project –Led by a product supplier –Target is a potential commercial product Both –Ideally have ~ 25% of scope in “new capabilities” for PRODML –Can lead to 1 or more WG08 Res & Dev Activities To test proof of concept for “new capabilities” –Can invite participation from companies – with opportunity for compensation.

PRODML can deliver value for you today: selectively Embed PRODML (and WITSML) in data architecture Use PRODML to get the right data to applications through Web Services Real-time optimization components Improve reporting quality with less effort Demonstrate value from PRODML usage and expand scope of use Expand deployments of same types of optimization Expand to new types of optimization PRODML Summary

GUWI Initiative

Well Identity Standards & Services Began at PNEC in 2003 – to address the long-standing global well identification problem. Taken forward by an industry steering team – focused on an industry-marketplace solution Strategy: –Previously proprietary identifiers  industry standards –Contracted Well Identity Services Registration/Assignment of new identifiers Official source data provision and release into a publicly accessible industry dataset Search/Match

Anticipated Benefits Direct cost savings –Reduced effort to manage well/wellbore identity registration, query, and conflict resolution Indirect cost savings –Fewer instances of redoing work necessitated by the discovery of a well/wellbore identity problem –Reduced effort to perform data integration –Improved efficiency of Acquisition & Divestiture activities –Etc.

User Service Fees –Access to industry dataset: no fee –Search/Match transactions: Free for up to 90; thereafter 20 USD –Industry Accessibility transactions: Free for up to 120; thereafter 40 USD –Minimum total fee: 500 USD per quarter –Negotiated fees for large quantities User Service Fee Structure

Industry Sponsorship Costs (initial cost) –50% of 2008 Contributing Member dues –Entitlement to join the WIS Work Group Must also join the Asset & Data Management SIG –Additional sponsorship costs as needed Industry Service Costs (quarterly basis) –Fixed-fee for general processing and maintenance activities 2.4k USD –Transaction based fees to pay for ‘free’ services Search/Match transactions: 150 minimum, 1200 maximum Industry Accessibility transaction: 120 minimum, 1080 maximum Sponsorship and Industry Cost Structure

Steering Team Companies (‘03-’07) A2D Burlington Resources ChevronTexaco ConocoPhillips [co-chair] Deloitte ExxonMobil Fugro-Robertson IHS Energy Marathon Nexen Energistics [facilitation] Shell [co-chair] Tobin US DOI Wood Mackenzie

Well Identity Service Roles Search/Match Service Request Energistics Asset & Data Mgt. SIG IHS: Primary Service Provider Valid Source: Accessibility Request WIS Work Group Service definition, Industry alignment, Adoption, Funding Energistics Contract Holder Public data custodian Industry Data Set IHS: Commercial Business IHS Data Sets IHS Transactions Valid Source: Register/ Update temp. ID only

Basic Well Identity Standards 1.Global Unique Well Identifiers under these Energistics Standards shall be known as GUWIs 2.GUWIs shall be identifiers of Wellbores 3.GUWIs shall refer to Parent GUWIs to establish Wells 4.GUWIs shall be global, independent of location 5.GUWIs shall be unique, never used for a different wellbore 6.GUWIs shall have values that are 12-digit numbers: a 4-digit prefix number and an 8-digit sequence number 7.Initially and for the tenure of IHS as service provider, GUWI prefix numbers shall have the value 1000

Well Name [Number] Alternate Well Name (1) Alternate Well Name (2) Alternate Well Name (3) Country Name Region [state, province, etc.] Situation [Onshore or Offshore] Field Name License / Block Operator Name Data Elements – 1 of 2

Total Depth [in m or ft, as specified] Kick-off point [in m or ft, as specified] Spud Date Completion Date Latitude [decimal degrees, in local datum or WGS 84, as specified] Longitude [same] Geodetic datum [vertical reference] Well Status [final, “Result” and “Technical Status”] Data Elements – 2 of 2

Data Elements: Status Values Result – Suspended – Abandoned – Tight – Junked – Completed Technical Status – Oil – Gas – Oil Shows – Gas Shows – Oil and Gas – Gas and Condensate – Water

The GUWI Initiative at Shell How the initiative benefits Shell International E&P (SIEP) – Provides an industry- recognized well identifier for the SIEP Corporate Data Store (CDS) – Eliminates possible well duplication / UWI collision using other well identification systems – Matches approximately 75% of internal well coverage – Provides a solution for countries that do not have a government UWI system Challenges to Shell SIEP – CDS is well/wellbore data model ; GUWI on wellbore – 25% of wells not currently found in IHS data set are predominantly NOC wells – so temporary UWI is assigned until registry issue is resolved – Data exchanges remain complicated until regional operating units adopt GUWI – Global pre-spud well registry not yet implemented

Global Unique Well Identifier Timeline Years Planning Stage 8: AuditStage 5/6: Release Stages 2-5: Development Stage 6,7: Deployment Stage 1 Planning Requirements; Discussion Paper “New” Approach “IHS” Approach; Negotiation V1.0 Deploy 1.0 V1.1 Deploy 1.1 V1.2 Deploy 1.2

Summary Main goal: produce a common system for well identification for the oil and gas industry –Accomplished by associating a GUWI with a wellbore through a commercial service provider, IHS –And by releasing the wellbore identifier together with data from a valid source for use throughout the industry Energistics will promote the use of the Standards and Services globally Initially, applies outside N. America –Work Group can determine value of extending to N. America Early Work Group Activities –Oversight of service operational effectiveness –Promoting awareness –Coordinating country/regional roll-out plans

Summary Launch on July 1 Founding sponsorships –Energy Companies: BP, Chevron, ExxonMobil, Pioneer, Shell, Total –Service/Solution Companies: Accenture, Halliburton, Schlumberger, and IHS (as primary service provider) –Government Agencies: UK BERR All organizations are invited to join as sponsors Sponsors are starting to place people in the WIS Work Group

Other Initiatives

Asset Management / Catalog (Assessment) –In 2007, Standards Advisory Council (SAC) identified this as a candidate next major initiative –An SAC sub-team consisting of Chevron, Pioneer, Schlumberger and Energistics has been scoping this area The sub-team recommends that the assessment be continued as an Asset & Data Management SIG activity –Interested parties are asked to contact Energistics Asset Management / Catalog

Geophysics (Assessment) –During 2007, a proposal for a funded assessment was accepted by ONGC –An assessment study has now been completed The resulting report is being reviewed –Linkage with SEG (EAGE last week) –Global recruiting beginning Geophysics

Energy Identity Trust (Assessment) –Secure External Access People to computing resources (e.g. Partners, Contractors, etc.) Computing processes to computing resources (e.g. Web Services) Joint company team access to collaboration tools (e.g. Shared File Space) –Shell and Chevron led  with BP, ExxonMobil, and suppliers –Incremental plan with business case being drafted –Sponsorships to be offered to ensure focus and drive Energy Indentity Trust

Integrated Reservoir Modeling (Transition Plan) –RESCUE planning team defined transition plan –End current RESCUE Work Group at year-end –Prepare business case & plan for SIG/WG aligned with Web Services and XML Data Exchange Standards as used in Drilling, Production, etc. –Work sessions in July and September for energy company and supplier representatives Forming the SIG’s “Use Case Team” and “Specifications Team” Joint meeting with PRODML SIG planned for September at SPE ATCE Integrated Reservoir Modeling

Infrastructure Enterprise IT Architecture (Enabler) –Need recognized in 2007 WITSML needs upgrades after eight years PRODML needs alignment with WITSML, etc. Other xxxMLs are or will be joining WITSML and PRODML All families of standards need alignment with developing industry enterprise IT architecture policies and guidelines –Decide to form group in Q1 of 2008 A “Web Services Interoperability Group” formed independently –led by BP, Shell, Chevron; with more organizations Energistics invited this group to become our Work Group –Drafting initial standards now followed by reviews and publication by end Q3 Infrastructure Enterprise IT Architecture

Regulatory – U.S. –WITSML-based state permit XML schema specifications agreed by group of US states in 2007 –Deployment expected in Colorado early in 2008 State policies revised -- delay National Data Repository Conferences –NDR7 – Columbia, September 2006 –NDR8 – S. Africa, February 2008 –NDR9 – to-be-determined, middle/late 2009 –Until now, each was organized by the same dedicated leaders and local organizers Momentum was not consistent  limited follow-through –From now on, Energistics will play an overall coordinating role eRegulatory and National Repositories

Thank You!