Classification: Statoil internal Status: Draft Integrated Operations: a corporate initiative in Statoil ‘Why we focus on the development of WITSML’ Peter Eilso Nielsen Senior Advisor pen@statoil.com

Main challenges and drivers for Innovation

What is Integrated Operations? Corporate Initiative: Integrated Operations What is Integrated Operations? Increase the efficiency of exploration, operations and new developments, through the use of new work practices Better and faster decisions Utilize technology that brings competence, data and tools together in real-time, independent of location Seabottom - seismic Downhole sensors and processing equipment Equipment for operation of offshore facilities Fibercable Virtual model Onshore support centres Collaboration Operator Suppliers Notice what is denoted as a Virtual Model, which is a representation of the assets in sucha a way that it make sense for the various decision makers. This can be reservoir engineers, drilling operations, maintenance, operational issues etc.. The virtual model is also relevant for the suppliers, which have responsibility for monitoring/control of some functions. Information management is crucial, that is, the information needed in the right format to make good decisions !

Statoil activities on IO Konserninitiativ: Integrerte Operasjoner Statoil activities on IO The corporate initiative is a sum of activities at many different locations within a large organisation R&D, pilots, deployment, IT infrastructure, ……

Focus areas for the corporate initiative on Integrated Operations Corporate initiative: Integrated Operations Focus areas for the corporate initiative on Integrated Operations Wide deployment Wide deployment Pilots Wide deployment R&D Pilots Pilots 03.05.2005

Digital Technology enabling subsurface progress and innovation in the following areas: Integrated Operations (eField, real-time operation, DOFF) Remote operation Automation of processes (drilling, well operation, production, maintenance) Digital intelligence to aide control over multiple operations New organizational patterns in the oil industry Within companies (from field to real asset operation) Between oil companies and supplying/vendor industry Changes in the geographical location pattern in the oil industry

Depth based project data db Timebased drilling data db Vision Automated and remotely operated fields. Global acquisition & access of RT data Depth based project data db Timebased drilling data db (Coming soon) RTS service Onshore Operational Centre Anywhere Home Office

Tail Production Ambition Research ambitions Subsea IOR Ambition Tail Production Ambition OPEX ∆ = 30% 70% Recovery factor 55% recovery factor 70% recovery factor Integrated Operations will contribute in reaching the Subsea IOR and Tail Production ambitions

The Integrated Operations Vision Full integration across portfolios Step 3: 2015 Business integration Integration per asset Remote operation from onshore location Step 2: 2008 Integration of disciplines Step 1: Now Integration offshore/onshore Implementation of OOCs Transfer of people from offshore to onshore Automation and remote operation

Key focus areas of the project Remote operations (enabled) within 2008! Integrate competency and information towards decisions Automatic monitoring Real-time processing and analysis Work processes and decision support Safe and reliable data and communication infrastructure Onshore control room work processes Change management support Condition monitoring of Facilities Down hole flow, P and T measurement (fiber) Permanent Ocean bottom seismic Fast update of geo & reservoir models Production and process optimisation tools Well planning and drilling optimisation Condition based maintenance applications Integrated fiber optic system Data transmission from bit to surface Safe and reliable offshore network Standards and protocols, applications integration Data Management platform

gap – let these visions challenge each other today THE CHALLENGE: Business Unit focus for ’Integrated Operations’ is on technology that is available. The R&D vision focus on the future and stretching technology Business unit vision: eField possibilities for each field/asset – how far can you get by the use of today's technology? R&D vision: independent of qualified technology – everything is possible – economic evaluation will decide implementation gap – let these visions challenge each other today

Integrated Operations Integrated Operations The 2008 project goals Increased recovery factor: 2-5% Increased daily production: 5% OPEX reduction: - 30% Reduction in HSE related unwanted events: - 50% Integrated Operations 2008 Business drivers Implementation of Tyrihans smart field concept Campaign and condition based maintenance in Tampen Remove turnarounds Remote operation of wells and process facilities on Tampen ICT infrastructure enabling 24/7 onshore operations centers Integrated Operations 2008 Goals Field of tomorrow – business for the future