DOC ID © Chevron 2005 Chevron PRODML Pilot Activities Vendor Participants: Invensys Weatherford Tibco Halliburton Matrikon Euriware Energy Components

DOC ID © Chevron 2005 Background Chevron’s pilots have a few common characteristics: Using a large brownfield waterflood field as a basis Concentrating on water handling Providing a number of vendor opportunities Developing in-house capability Expanding in scope over time

DOC ID © Chevron 2005 Background (cont…) 2006: Compared Field vs Facility forecasts and notified operator. Stress tested the standard with multiple 700 well data calls in a single process model 2007: Combined multiple elements – forecasting, real time capacity management, field network optimization and cross- functional visualization 2008: A: Continue to refine pilot to plug and play pieces (8) that are “fit for purpose” B: Testing new WG07 functionality (SAM-Shared Asset Model, extensibility) C: Working with other PRODML members on NOJV reporting D: Preparing to test the use of WITSML data for well modeling

DOC ID © Chevron 2005 Characteristics of a Workflow A workflow … should systematically organize components; should define roles, for operator personnel, for vendors and for automated systems; must have endpoints that effectively define the purpose of the process; needs defined information exchanges (such as those defined as part of the PRODML Standards); needs visibility of information flow; … and looking ahead to results, a workflow: leads to achievable results; has a process that can be documented and learned; enables measurement of results.

DOC ID © Chevron 2005 End to end workflows are complicated

DOC ID © Chevron 2005 We chose water management so we could prepare definable process blocks

DOC ID © Chevron 2005 Typical setup – Note how we can separate IT and Tech activities

DOC ID © Chevron 2005 Data Integrator Chevron Pilot Invensys Facility SCADA History Weatherford Well Test History Local System (SS) Field Oil Sales / Inventory History Local System Field Gas Sales History Weatherford Status History Energy Components Daily Allocation / Status / Well Listing Weatherford LOWIS Well Status Forecast Halliburton DSS Well Production Forecast Invensys InFusion Tank Forecast Invensys Notification 2b 4a 14 Future: Check well test before shut in order 15 Same as 9a/b 2a a 6a 7a 89a 1112a 13 Future; Add to tank forecast 1 Trigger: Clock set for once a day 2 GetFromStore: Get tank data (7 days) 3 Model: 7 day tank forecast 34 AddToStore: Pass tank forecast 4b 5 AddtoStore: Alarm to notification 5b 6 GetFromStore: Well forecasts 6b 7 GetFromStore: Well allocated production (x days) 7b 8 Model: 7 day production forecast 9 GetFromStore: well status forecast 9b 10 Model: Maintenance forecast 11 Model: Well vs Facility Qw in 12 AddToStore: Consolidate data 12b

DOC ID © Chevron 2005 Chevron Pilot

DOC ID © Chevron – Meet Workflow Criteria Plug & Play / Intersecting Workflows B Forecast A Pre- Processor C RT Tank Level Mngt D Well Changes E Source Wtr Needs F Network Opt. G Except. Report H X-F(x) Visual E’ Injection Targets G’ Well Model B’ Alternate Model B” Alternate Model Fit for purpose – forecast accuracy meets need of next step Test WITSML Data acquisition – Automate well model building Touch point – Reservoir management sets targets Test Shared Asset Model – Network changes

DOC ID © Chevron – NOJV Reporting BA Opportunity Assessment CD E Organize interested parties Prepare project plan Given: use North Sea example as guide Get internal input vs guide