1. It’s About Time Sanjaya Sood May, 2006

2. 2Initials Key Industry Drivers The Emergence of Three Main Trends Introduction of new enabling technology, bringing huge improvements in reservoir productivity Increasing demand for real-time information, modeling, visualization and decision making tools Periods of consolidation and downsizing, resulting in the industry expertise having aged significantly

3. 3Initials The Intelligent Oil Field Field Operations Field Assets External Stakeholders Corporate Management

4. 4Initials Intelligent Oil Field Enablement Digital enablement of oilfield operations Time-lapse seismic, real-time drilling, real-time production Downhole intelligent completions technology Downhole valves and sensors including multiphase meters and fiber-optic systems to track production from pore to pipeline Remote control centers linked by digital networks to field operations, management and external stakeholders Real-time workflows to enable core E&P processes Large scale data and systems integration

5. Where we are today

6. 6Initials Real-Time Drilling Features Real-time model-based surveillance Earth-driven drilling optimization Integrated well-planning Secure digital infrastructure Remote team collaboration Benefits Improved productivity Better management of risk Improved efficiency with reduced cost

7. 7Initials Rotary Steerable Systems for Real- Time Drilling Traditional directional drilling –Points the bit from surface –Rotates only the bit –Pushes and slides the drill string Rotary steerable drilling –Sends the desired direction to the drilling tool downhole –Rotates the entire drilling string –Steers the well by configuring the downhole tool to orient the bit

8. 8Initials Real-Time Drilling – Complex Well Trajectories Total E&P UK plc, Shell, ExxonMobil, Dana Petroleum – North Sea Integration of rotary steerable system with advanced LWD for optimum well placement All four reservoir targets achieved Cost reduced Drilling efficiency improved Production 25% more than predicted PowerDrivegeoVISIONGamma ResistivityPowerPulse Block ABlock D Target 1 Target 2 Target 3 Target 4 TVDSS meters -1900 -1950 -2000

9. 9Initials Real-Time Production Systems Digitally-enabled artificial lift systems Digitally-networked, remote surveillance and system control equipment Workflow processes to identify, diagnose and optimize lift and well performance Remote engineering experts to analyze sand-face, reservoir and network performance

10. 10Initials Real-Time Production Monitoring A – Pump started B – Chemical injection C – Pump stopped to change leaking valve downstream – threshold triggering event D – Chemical injection E – Increasing pressure due to damaged choke on adjoining well F – Routine maintenance shut down G – Variable speed drive frequency increased

11. 11Initials Real-Time Production Pump Monitoring Identification of wells for pump- upsizing Determination of wells for acid- stimulation Identification of excess wear Total of 31 wells in field, 2600 bopd added

12. 12Initials Real Time Monitoring and Delivery

13. 13Initials VSAT ''A VSAT', for Very Small Aperture Terminal, is a 2-way satellite ground station with a dish antenna that is smaller than 3 meters, as compared to around 10 meters for other types of satellite dishes. Schlumberger Oilfield Research co-developed the world's first VSATs with Hughes Aerospace in 1985, to provide man-portable network connectivity for oil field drilling and exploration units. VSAT's are still used at well sites today to transmit real-time data back for processing. –From Wikipedia, the free encyclopedia

14. 14Initials Challenges Workflows IT Infrastructure Business Model

15. 15Initials Workflows that Work Managers need a clear idea of how to gain the benefits of implementing a real time or e-Field project The choice of sensors, data, bandwidth, applications, people, and processes must be driven by the oil and gas production problem to be solved

16. 16Initials Ready to Run IT infrastructure must provide –End-to-end security –Interaction with data in the right time –Integration with other data and systems –Solutions for presentation and evaluation –Capability for collaboration IT infrastructure implementation must be reliable and repeatable

17. 17Initials Business Models Centralized model –Little control or flexibility –Obstacle when business units do not see initial benefits –Simple to administer Decentralized model –Totally flexible –Business units can choose resources based on needs –Highly inefficient

18. 18Initials Business Model that Makes Sense Combination Approach –Common costs reallocated to the business units –Business units can purchase products and services as needed –Transitions to a pay per usage based on needs

19. 19Initials The right people, viewing the right information, at the right time In Conclusion The industry is on the right path to the vision Progress has been made but it will take time to get there –O&G technology exists –IT exists –Processes exist –Funding exists What is missing –Understanding the benefits for the workflows –Reliable, repeatable IT enablers –Business model

20. 20Initials It’s About Time ssood@slb.com