Energistics Overview Alan Doniger, CTO November 18, 2008

Introduction to Energistics An open standards industry consortium Eighteen years serving the upstream industry With 102 active members… –Integrated, independent and national energy companies –Oilfield service and professional service companies –Software, hardware and integration vendors –Regulatory agencies, institutes and media partners

Our Energy Standards Resource Centre

Our Energy Company Members

Energistics: The Four Challenges Strategic Perspective –Strategic Standardization Management Standards Collaboration –Focus on highest value standards that don’t impact competition Best practice guidelines Industry Commitment –Internal and external commitment to widespread standards adoption Value Delivery –Describing and measuring business value of standards use

Our Flagship Standards…

Membership Board of Directors Standards Advisory Council Global Regions Management & Staff Other SIGs Organization & Communities Asset & Data Mgt SIG PRODML SIG WITSML SIG Energistics Standards: WITSML, PRODML, etc. Special Interest Groups are user communities for families of standards

Standards Advisory Council Formed in 2007 Members are appointed Dual role –Advise –Assist People with broad experience in multiple subjects and aspects of operations and industry collaboration Focus on “The Four Challenges” Current members represent –BP, Chevron, ExxonMobil, ONGC (India), Pioneer NR, Shell, Total –Halliburton, Schlumberger

Industry Services SIG Technical Architecture 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 SIG Geophysics SIG SIG Geology SIG RP66, DLIS Asset/Data Management SIG Global Unique Well Id eRegulatory SIG ePermitting NDR

Industry Services SIG Technical Architecture 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 SIG Geophysics SIG SIG Geology SIG RP66, DLIS Asset/Data Management SIG Global Unique Well Id eRegulatory SIG ePermitting NDR

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

WITSML Headlines Scope –Data Transfer and Web Services Standards –Focus: Drill Site to Office / Control Center –Focus: Drilling and Completion Status –Completing 8 th Year (started in late 2000 by Statoil and BP) –Focus: Growing Adoption, and Use –Strong User Community (SIG) of 50+ Organizations –Semi-annual Meetings, Seminar and Exhibition –Active SIG teams; substantive change management process –Version (Q1 2007) –Version (Q4 2008)

Industry Services SIG Technical Architecture 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 SIG Geophysics SIG SIG Geology SIG RP66, DLIS Asset/Data Management SIG Global Unique Well Id eRegulatory SIG ePermitting NDR

PRODML Helping achieve production optimization  Freely available, universally applicable  Enables low-risk and low-cost use of proven optimization solutions  Accelerates and encourages innovation

PRODML Headlines Scope –Data Transfer and Web Services Standards –Focus: Support Production Optimization Processes –Focus: Support Field Production Reporting Status –Completing 3 rd Year (started in Aug. 2005) –Focus: Iterative Development & Implementations –Growing User Community (SIG) of ~40 Organizations –Four In-person Working Meeting Annually –Active SIG teams and Implementation-Focused Work Group –Version 1.0 (Q4 2006) –Version 1.1 (Q4 2008) –Testing Starting on Additional Services and Objects

PRODML: Active Participants Founders (from Aug. 2005) [13] –BP, Chevron, ExxonMobil, Shell, StatoilHydro –Halliburton, Invensys, Kongsberg Intellifield, OSISoft, Petroleum Experts, Schlumberger, TietoEnator, Weatherford Joined in 2007 [17] –ConocoPhillips, Pioneer Natural Resources, ONGC –AspenTech, Euriware, Honeywell, IBM, Infosys, Intelligent Agent, Matrikon, P2 Energy Solutions, Petris, Roxar, Satyam, SensorTran, TIBCO Joined in 2008 [8] –Total –Atos Origin, BearingPoint, Merrick Systems, Petrolink, PDS, PKO Services, SAIC, Tata Consultancy

THE PROBLEM Multiple Component Solutions Lack of Interoperability standards THE SOLUTION PRODML Open Standards PRODML Positioning SCADA Systems Sensor Data Reservoir Models Geoscience Data OPC Domain De facto Standards PRODML Domain High FrequencyLow Frequency 30 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 Use Case Road Map (Aug. ‘07) Year Use Cases (i)(ii)(i)(ii)(i)(ii)(i)(ii) Daily or Less Gas Lift Opt. G/L & flowing well surveillance Downhole sensors PTQ, DTS Daily reporting Reporting NOJVsESP wellsSRP wells Daily to Weekly Smart well offtake optimiz- ation Fluids capacity forecast Smart well opt with downhole allocation Fluids capacity optimiz- ation Well completion transfer & referencing Welltest validation Integration with facilities maintenance Weekly to Q’ly Shared network model with change propagation Shared network model with different detail level Reservoir voidage and monitoring Integration with process simulation Monthly regulatory reporting Q’ly to LOF Reservoir- Production Dev Planning

Types of PRODML Applications Surveillance and Monitoring –Continuous comparison of actual to predicted measurements; out of range condition invokes analysis Operational Modeling –Predictive algorithms to predict future measurements from historical measurements and operational plans Simulation and Optimization –Predictive algorithms to predict future measurements and related set points that achieve pre-defined objectives Advisory and Alert –Invoked when post-analytical predicted and actual performance differ significantly; alerts for remedial control changes Allocation and Reconciliation –Derives critical values from measurements, as in back-allocation of volumes to wellbores

Evolution of Use Case Categorization (background) 2007 UCT 2008 Shell contribution Categories SPE RTO TIG Coord.

PRODML: New Use Case Categorization Work In Scope?  Mimosa?  WITSML  RESQML? Well use cases are further divided by lift type

Industry Services SIG Technical Architecture 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 SIG Geophysics SIG SIG Geology SIG RP66, DLIS Asset/Data Management SIG Global Unique Well Id eRegulatory SIG ePermitting NDR

Global Unique Well Identifier (GUWI) Headlines Scope –Wellbore identification worldwide [except N. America] –Focus: Standards with supporting commercial-grade services Status –Formal launch, July 1, 2008 –Primary service provider: IHS –A&DM SIG Work Group formed –Monthly conference calls –Sub-teams High priority country selection and adoption planning Data scope and definition (clarification) Marketing and awareness material preparation

Well Identity Standards & Services Work Group Founding Sponsors / Participants –BP –Chevron –ExxonMobil –Pioneer –Shell –Total –UK Government –Halliburton –Schlumberger –Accenture –IHS

Industry Services SIG Technical Architecture 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 SIG Geophysics SIG SIG Geology SIG RP66, DLIS Asset/Data Management SIG Global Unique Well Id eRegulatory SIG ePermitting NDR

RESQML Headlines Scope –Re-development of RESCUE class library as Web Services and XML Data Exchange Standards –Focus: Earth models and reservoir models Includes support for Geological and Geophysical models in coordination with respective SIGs –“Reservoir Characterization with XML” –Earth models, reservoir models –Data for wells, faults, horizons, stratigraphy, etc. –CRS/projection, units, points, lines, grids (points, lines, pillars, etc.)

Status and Plans –Formal launch, January 1, 2009 –Operating procedures same as other SIGs –Preliminary management and technical meetings May, July, September, December –Legacy RESCUE support to continue for ~18 months –Compatibility with other Energistics Standards –Coordinate/interface with relevant external technologies/standards OGP EPSG, OGC GML, GeoSciML, etc. –Market for greater awareness and participation RESQML Headlines

Participants in Preliminary RESQML Meetings BP CMG DGI ESSS Fugro Halliburton IFP Midland Valley Paradigm PDS Roxar Schlumberger Shell SMT Total Transform Software Energistics

Industry Services SIG Technical Architecture 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 SIG Geophysics SIG SIG Geology SIG RP66, DLIS Asset/Data Management SIG Global Unique Well Id eRegulatory SIG ePermitting NDR

Geophysics SIG ONGC (India) requested an assessment of whether Energistics should work with the Geophysics SIG to improve geophysics work practices –Started late 2007, ended Q3 of 2008 –Assessment report published (Nov. 2008) –Results: Substantial cycle time savings can be achieved Future Plans –Publish and discuss best practice recommendations –Increase level of collaboration with the SEG TSC –Coordinate geophysics data exchange needs with the RESQML SIG –Place Energistics resource in the South Asia Region to work closely on implementation of the specific recommendations

Best Practice Recommendations Work Practice Improvement Categories –Life-cycle view of data procedures –Enterprise view of data ownership –Adequate data handling resources –Use of available data standards

Best Practice Recommendations Work Practice Improvement Areas –Geodetics/CRS –Acquisition agreements –Data compression –Naming –Use of SEG Standards –Data management –Integrating position and trace data –Observer’s Logs –Survey Reports –Processor’s Logs –Trade data evaluation –Quality control

Industry Services SIG Technical Architecture 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 SIG Geophysics SIG SIG Geology SIG RP66, DLIS Asset/Data Management SIG Global Unique Well Id eRegulatory SIG ePermitting NDR

National Data Repositories Work Group Management Committee Participants –Australia, Canada, India, Kenya, Netherlands, New Zealand, Norway, South Africa, UK, USA –Halliburton, Schlumberger, PennWell, RPS [Paras] –Energistics Other Committees –Steering, Technical, Communications, and Planning NDR Conference Coordination –NDR9: Aug. 31 – Sep. 3, ‘09, New Delhi, India, hosted by Directorate General of Hydrocarbons (DGH)

Thank you شكرا