1. © Copyright 2006 POSC Integrated Operations (Production) SIG Meeting Alan Doniger, POSC May 12, 2006 Houston, Texas

2. © Copyright 2006 POSC Today’s Meeting Host:

3. © Copyright 2006 POSC Integrated Operations (Production) Special Interest Group (SIG) This SIG is the formal user community for POSC’s collaborative activities and standards for the production phase in the context of Integrated Operations. –Membership is open to all (POSC members and non-member alike) –The SIG recognizes requirements and needs –The SIG is the first line of review of new and updated specifications –The SIG helps promote vendor take-up and operator deployment

4. © Copyright 2006 POSC Overall Standards Process StageDescription 0Opportunity Discovery, Evaluation (ongoing), 1Planning, Review, 2Requirements, Review, 3First Specification Iteration, Review, 4Iteration Cycles of Revision and Review, 5Final Reviews,, Release 6Promotion, Support [ May go to 0 for upgrade] 7Periodic Effectiveness (Value Delivery) Review [ May go to 0 for upgrade or retirement]

5. © Copyright 2006 POSC Production Portfolio StandardTypeHistoryStableActiveNextComments WITSML Production, including Reporting Data Xch Prior 1999, Start 2005 N/A Q2Reporting, Stage 5  6, Deployment In Norway, ’06 14% WITSML Production Optimization Data Xch Start 2005, Xfr Q3 N/A OUTSIDE: “PRODML”, Stage 3, ’06 7% Pilots Apr – Aug. WITSML Production DTS Data Xch Start 2004N/A1.3.1TBDStage 6, Deployments by BP and Shell WITSML Production Lab (Fluid Analysis) Data Xch Xfr 2004, Start 2005 N/A Q2Stage 3, ’06 2% Norway IIP Project MixedStart 2004N/A OUTSIDE, ’06 2% Stage 3; Statoil, Hydro. Production (Integrated Operations) SIG Facilitation, ’06 8%

6. © Copyright 2006 POSC Production Portfolio: Vision Now –Daily Reporting to Partners: Ready for Public Review, Deployment starting in Norway –PRODML Work Group due to complete end of August Three basic optimization use cases: specifications and pilot testing –Distributed Temperature Survey Standard published Field deployments by BP and Shell (Lios, SLB, Weatherford) +2 or 3 Years –Co-existence with / adaptation for OPC Foundation UA –Integration of Optimization and Reporting –Beginning of Automation of Administration, Scheduling, etc. –Integration with Equipment and Facility reference standards Quantitative / Qualitative Value –Baseline in ’07.

7. © Copyright 2006 POSC Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage We can use this image to portray the growth in WITSML coverage?

8. © Copyright 2006 POSC General Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage Enhancements for raw, calculated and planned Well Path data, coordinate systems, and units.  WellPath Well Wellbore Trajectory  CRS, Projections  Units of Measure

9. © Copyright 2006 POSC General Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage Enhancements for wireline as well as LWD log data.  Log,WellLog

10. © Copyright 2006 POSC General Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage Enhancements for Production beginning with Volume and Activity Reporting, continuing with PRODML towards Optimization.  Network Model Volume Report Activity Report

11. © Copyright 2006 POSC General Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage We have a pending request to establish a Geophysical SIG. Such a SIG could lead to WITSML Geophysical data exchange Standards.

12. © Copyright 2006 POSC General Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage At a future time, we could consider the viability of data exchange Standards for facility data, reservoir data, economics data, etc. filling out the E&P space.

13. © Copyright 2006 POSC General Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage This would call for close cooperation with other industry groups to avoid duplication of effort and ensure smooth transitions.

14. © Copyright 2006 POSC Extended WITSML and the POSC Special Interest Groups WITSML Drilling SIG – (1) Drilling uses (2) Overall architecture IntOPS Production SIG – (1) Production Reporting (2) Production Optimization (3) Temperature Surveys eRegulatory SIG - (1) Regulatory (Permitting and Reporting) data transfer uses Geology (PWLS) SIG – (1) Well Log data transfer uses – wireline and LWD Data Management (DSS) SIG – (1) Reference, Geoscience, Engineering, Partner, and other data transfer uses (2) CRS (3) Well Path

15. © Copyright 2006 POSC Houston Regional IntOps SIG, May 12 Agenda –08:00 Registration and Breakfast –08:30 Welcome and Introductions, Alan Doniger, POSC Integrated Information Platform Project (IIP); Svein Omdal, Statoil (Steering Committee Chair) presented by Henning Jansen, National OilwellIntegrated Information Platform Project OLF Partner Daily Production Reporting Project, Jan-Ingvar Riveland, TietoEnatorOLF Partner Daily Production Reporting Project WITSML Production Fluid Properties Update, John Bobbitt, POSCWITSML Production Fluid Properties Update Questions & Answers –10:00 Morning Break

16. © Copyright 2006 POSC Houston Regional IntOps SIG, May 12 Agenda –10:20 PRODML PRODML Overview and Walkthrough –Lew Edison, BP/IBM [Introduction, Status, PRODML.org]IntroductionStatusPRODML.org –Ron Cramer, Shell [Business Context]Business Context –Alan Doniger, POSC Questions & Answers –11:30 Lunch

17. © Copyright 2006 POSC Houston Regional IntOps SIG, May 12 Agenda –12:30 WITSML Production Reporting Standards WITSML Production Reporting Standards Overview, Gary Masters, POSCWITSML Production Reporting Standards Overview –Foundation for PRODML data transfer specifications Questions & Answers –13:30 WITSML Production DTS Standards WITSML Production DTS Standards Update, Paul Maton, POSCWITSML Production DTS Standards Update Questions & Answers –14:00 Open Discussion –14:30 Adjourn

18. © Copyright 2006 POSC Alan Doniger, POSC Chief Technology Officer Email: Doniger@POSC.org Phone: +1 713 267-5124 Fax: +1 713 784-9219 http://www.posc.org and http://www.witsml.org http://www.posc.orghttp://www.witsml.org