Focusing on Fundamentals-- Cindy Reece Subsurface Engineering Manager ExxonMobil ASME February 2002 Gas Lift

Stare directly at the center black dot. When you focus on the dot, the gray haze around it will appear to shrink.

The Importance of Analyzing Performance

- 5 - Artificial lift--a core business within EM The importance of gas lift Gas Lift Best Practices Best Practices rollouts Future enhancements EM Gas Lift Initiatives

- 6 - Artificial Lift is Core Business ExxonMobil’s Production Operations Best Practices summarizes Artificial Lift Processes: –Purpose: Perform artificial lift design, surveillance and optimization to improve well productivity via production buildup/uplift and cost reduction Production Unit Asset teams establish clear responsibilities and assign qualified resources to facilitate artificial lift optimization to optimize well production and expense –Deliverable: Artificial lift designs and optimized artificial lift systems –Components: †Selection of most appropriate form of artificial lift †Comprehensive artificial lift surveillance program †Artificial lift modeling, diagnostics and analysis †Analysis of artificial lift key performance indicators and data

- 7 - Flowing The Importance of Gas Lift 31% of EM s operated oil production is gas lifted (12% wells) Future projects rely heavily on gas lift 49% of EM operated oil production is artificially lifted Artificial Lift Gas Lift

- 8 - Gas Lift Best Practices EM experience showed that low cost optimization efforts frequently resulted in 5 + percent increases in production Typically, the gains went away after a period of time unless sustained focus on gas lift surveillance and optimization processes Six experienced gas lift engineers/technicians from US and overseas Production Units developed “Gas Lift Best Practices” Gas lift best practices incorporate common experiences and proven practices around: –Organization and training –Surveillance and optimization –Design and equipment

- 9 - Gas Lift Optimization Team Team Charter is owned by CE, Subsurface Engineering Team consists of two SSE members and Gas Lift Coordinators from eight worldwide Producing Units Team Charter Objectives Achieve immediate buildup from implementing gas lift optimization best practices Provide a means of collecting, developing, disseminating, and leveraging gas lift best practices throughout ExxonMobil Maximize gas lifted oil production through optimum gas lift designs, efficient gas lift surveillance, troubleshooting, and operation Rollout Gas Lift Best Practices to the Production Units

Gas Lift Rollouts 7 Production Units have been rolled out Each rollout team has consisted of SSE GLO team members and one or two other Production Unit Team members 6-8% gas lift production buildup has been identified, combined from existing projects within the Production Units, and other opportunities identified during the rollout process Production Units are actively pursuing identified opportunities and incorporating the best practices into their gas lift business There is renewed on gas lift processes focus

Future Gas Lift Plans Improve the current Gas Lift Best Practices with learnings from the rollouts. Leverage proven successful practices and good ideas among the Production Units Support and promote the Gas Lift Optimization Team’s interaction and communication for support of the each Production Unit’s gas lift efficiencies Continue emphasis on gas lift training Seek out and transfer new technology to improve gas lift processes and performance