1. Energistics Asia South Region Meeting (Production) PRODML SIG Update
New Delhi, India Alan Doniger
14 January Chief Technology Officer
Le M▲ridien New Delhi Hotel Energistics

2. Agenda What is PRODML? Participants Status Next Steps
’06 Pilots: Scope and Animations

3. Background
In recent years, many energy companies have begun to exploit the benefits of highly instrumented producing fields seeking optimal operation of these assets.
These efforts are known by many names, including Smart Field, Digital Field of the Future, e-Field, i-Field, etc.
A key element in these achievements is making good use of the near real-time data streaming from the field to the office or operations center.
To do this well requires the use of industry standards for data and for the communications and computing infrastructure.

4. The Role of Industry Standards
The PRODML initiative, hosted by Energistics, is being driven by energy companies and vendors who believe the industry needs a freely available, universally applicable set of industry standards.
For data definitions, formats, semantics
For communications and computing infrastructure based on state-of-the-art technologies and standards
To establish a level playing field for vendors
To enable low-risk and low-cost use of proven optimization solutions including interchangeability
To accelerate and encourage innovation in the design, configuration, and deployment of optimization solutions

5. From bottom of the well to initial separation
Scope: Asset View
Initial Scope
From bottom of the well to initial separation
The Production Domain
Gathering
Separation &
Distribution
Injection
(Water, Steam, CO2)
Water
Handling
Gas
Treating Facilities
Oil
Treating
Facilities
Export Facilities
Reservoir Management:
Gas & Oil
Contract
Deliverability
Decisions we can effect in a day

6. Scope of PRODML Application Software
Operational Modeling
Predictive algorithms to predict future measurements from historical measurements and operational plans
Allocation and Reconciliation
Derives critical values from measurements, as in back-allocation of volumes to wellbores
Surveillance and Monitoring
Continuous comparison of actual to predicted measurements; out of range condition invokes analysis
Simulation and Optimization
Predictive algorithms to predict future measurements and related set points that achieve pre-defined objectives
Advisory and Alert
Invoked when post-analytical predicted and actual performance differ significantly; alerts for remedial control changes

7. Basic PRODML Optimization Use Case
Ops Modeling Appl
Simul & Optimiz Appl
Meas & Model Data
Surv & Monitor Appl
RT Data Capture
Alloc & Recon Appl
Advis & Alert Appl

8. PRODML’s Vision We all talk about “Fields of the Future”
But we want them now.
The task of integrated optimization and other operational application software solutions could be horrendous
What is we had an industry standard that would interface – not necessarily integrate – software applications?
Wouldn’t that be a good thing?
Isn’t this a problem that everyone in the industry faces?
PRODML can help take us there!

9. What is this data? Now Future Emergency Shutdown Data
Fire & Gas Data
Process Data
Reservoir
Well
Surface
Pipeline
Device Data
End elements, DTS data
RTU/PLC data
SCADA/DCS data
Future
Sensor technology will enable the capture of continuous streams of data from every part of the physical environment

10. What is “Optimization?”
A word we use often, but rarely understand
An objective often mentioned, but rarely achieved
If achieved, it is rarely sustained
One Definition
Improving the bottom-line results by timely, effective and sustained use of sufficient, good production information.

11. The Business Case Enable continuous optimization Artificial Lift
Estimate well/reservoir oil, gas, and water flows
Safeguard integrity
Manage abnormal situations
Get the right information to the right people, at the right time, in the right context and in the right workplace to serve the right work processes.
Examples that illustrate the business case follow.

12. Gas Lift Optimization Oil Production . Time SCADA or Historian 1.0 0.5
0.0 1 7 13 19
Time 25
True Production Potential
Periodic Manual Optimization
No Optimization Activity
Real time data
To and from wells
Real time data
To and from SCADA
Optimal Set Points
From model
SCADA or
Historian
GasLift
Optimization
Application
2 Phase Flow
Model
Real time data
To model

13. Gas Lift Optimization
When a well is completed, we decide how to set up gas lift parameters using multi-phase flow models.
The initial production, however, declines over time.
After a few years, the well production is analyzed and revised gas lift parameters are put in place. Production increases, but then gradually declines again.
This gives the saw-tooth pattern shown in the diagram.
If we analyze and model continuously, we can achieve production up to the blue line on the diagram.
The space between the saw-tooth and blue lines is the prize from continuous optimization.
Increased recovery, reserves, production
This is a potential benefit from PRODML.

14. Potential Optimization Business Benefits
Improved technical integrity
Improved safety
Increased production
Reduced operating expenses
A Shell engineer working on the PRODML team reported:
Production is about 4 million BBLS oil equivalent daily
Conservatively, optimization can contribute a 5% increase or 200k BBLS daily
To achieve the same increase would require 2 new platforms in the Gulf of Mexico
Cost: 3 Billion USD
Time: 5 years
People: 3,000

15. PRODML is a Key Enabler for These Benefits
PRODML helps get real-time data from the field capture systems to applications
PRODML helps move data among applications
Field Data
Applications
Abnormal Sit.
HC Accounting
Maintenance
Simulators
Reservoir
Well
Pipeline
Process
REAL-TIME Data
ESD
F&G
Processes
Devices
Etc.
Set Points and Recommendations

16. What was the PRODML Work Group?
Five oil companies proposed an initial standards development effort with established goals and constraints.
Eight vendor companies and POSC (now Energistics) were invited to join the effort.
The size was kept as small as practical.
All results will be by consensus and will be shared openly.
The duration was limited to one year – Q4 ’05 – Q4 ‘06
Afterwards, the results went to Energistics for maintenance and further development.
State-of-the-art communications and computing technologies would be put to use.
Internet, Web Services, SOA, W3C, etc.

17. PRODML Work Group Organization

18. PRODML Teams Steering Committee
Set direction and deliverables; oversight
All members represented
Operational Team
Day-to-day management by funding companies and team leaders
Weekly conference calls
Content Team
Business and data requirements; use cases
Technical Team
Infrastructure requirements; architecture
Communications Team
Pilot Coordination Team
Legal Framework Team

19. PRODML Work Group (’06) Members

20. PRODML Initial Scope
Work Group participants agreed to scope limitations for the initial work effort:
Start from field data already received and stored in Historians
Stop short of closed-loop control changes
Address only optimizations with recommended changes that can be implemented within one day
Reference Use Cases were chosen:
Gas Lift Well (Inlet Gas Changes)
Free Flowing Wells (Surveillance)
Field-wide (Surveillance)
Each pilot testing activity supported one of these use cases

21. Use Case: Gas Lift Well

22. Use Case: Free Flowing Well Surveillance

23. Use Case: Field-wide Surveillance

24. Data Scope Production Systems in Producing Fields consist of
Flow Network topology (Flow Network XML Schema)
Production and injection wells, equipment, etc.
Flow connections: outlet to inlet
Measurements (Volume Reporting XML Schema)
Production volumes and flow rates
Pressures, temperatures, etc.
Test results (Well Test XML Schema)
Production well test results

25. Application Plug-and-Play
PRODML seeks to enable application software components from different vendors to interact in a consistent way.
As Service Requests
And Service Responses
One vendor’s component may be exchanged for another vendor’s component with comparable functionality
Without damaging the integrity of the optimization loop configuration
Some of the pilot testing activities explicitly demonstrated application Plug-and-Play.

26. PRODML Working Culture
Funding Companies (5)
Vendor Companies (8)
Standards Organization (Energistics)
Teams
Project Management (Full-time)
Team Interactive Web Site
Public Web Site
Shared Computing Facility (“Sandbox”)
Process
Use Case Described and Agreed
Interactions (Cartoons and Spreadsheet)
Pilot Testing Activities (Software)
Public Demonstrations / Seminars

27. Tracking PRODML Progress
Months 2 4 6 8 11 14
Steering Committee Meetings
Project planning
Team Kick-Off
November 15, 2006
V1.0 Release
Content
Workshop preparation and scheduling
Standards investigation
Develop Scope
Conduct workshops
Detailed Requirements
Macro Design
Technology
Process mapping
Technology assessment
Detailed Requirements
Macro Design
Design Communication Plan
Develop Test Bed Scenarios
Design POC
Build POC
Build
Implementation guide outline
Process flow documentation
Plan Pilot
Pilot
Industry Review
Start
August 16, 2005
Strong Typing
End
November 15, 2006
Project Management
Communication
Requirements
Build & Communicate
Phase 1 – Scope and Define
Design-Develop-Test
Implementation

28. How has PRODML built on WITSML?
WITSML (Wellsite Information Transfer Standard – Markup Language) is an Energistics family of standards primarily intended to support the movement of drilling data from well-site to office.
Started in early 2001
Promoted and supported by the WITSML Special Interest Group (WITSML SIG) made up of over 40 industry organizations
Similarities
Initial development organization and process
Data and infrastructure aspects re-used or adapted
Longer-term alignment remains a goal

29. PRODML’s Completion Announcement
PRESS RELEASE (September 28, 2006) coordinated with SPE Conference in San Antonio and a PRODML Hospitality Suite Session
PRODML Version 1.0, open industry standards, completed and released to improve data exchange and work process efficiency in production optimization.
Launch of Work Group in August 2005
Viability demonstrated with four realistic pilot testing activities led by BP, Chevron, Shell and Statoil
From 1 to 1000 wells
Plug-and-Play multi-vendor applications
Meaningful workflows

30. PRODML’s Completion Announcement (2)
Standards under custody of Energistics for maintenance and further development.
XML-based data exchange solutions are available for adoption and extension
Work Group Participants
BP, Chevron, ExxonMobil, Shell, Statoil
Halliburton, Invensys, OSIsoft, Schlumberger, Sense Intellifield, TietoEnator, Weatherford
Energistics
Further information on or from Energistics

31. PRODML Documents

32. PRODML Documents: Intended Uses

33. PRODML ’07 Work Group
Repeat Successful Aspects of PRODML Work Group in 2006
Small but sufficient number of participating companies
Small but sufficiently meaningful scope of new functionality achievable within one year’s effort
Funding from participating companies to pay for full-time project management, collaborative meetings, support facilities, subject experts where needed, etc.
Comprehensive work planning based on well defined teams with strong leadership and frequent communications within and across the teams

34. What’s New for 2007?
Replace remaining hard-coded and proprietary interfaces of optimization application software with PRODML-based solutions
Example: Driving applications from a common Production Flow Network Model description.
Extend the footprint of the types of optimization that PRODML has been demonstrated to support.
Example: Demonstrate support for ESP (Electrical Submersible Pump) Artificial Life Well Optimization
Demonstrate the ability to integrate the previously published Energistics Production Reporting Standards with PRODML-based solutions.
Example: Have back-allocated wellbore volumes reported and/or recorded using PRODML defined Web Services

35. In the Marketplace
Vendors are planning to develop commercial PRODML-based versions of products during 2007.
This work will be enhanced by the additional work planned for ’07, e.g. widening the footprint, as this will strengthen the market for such products.
Without PRODML strength and growth, there are risks:
Point solutions will continue to be developed
Preventing low-cost, low-risk innovative optimization deployments, especially those that mix and match products from multiple vendors
Energy companies will develop solutions themselves
Further fragmenting the market and making conversion to standards-based solutions more difficult

36. Vision for 2007 and Beyond For end of 2007
Demonstrate additional PRODML-based functionality through Pilot Testing Activities.
Build on Version 1.0; try to maintain compatibility
Encourage the PRODML SIG Steering Committee to define a multi-year roadmap for PRODML Standards, that increasingly:
Helps reduce cost, time, complexity and risk for production optimization solutions using communications and computing technologies
Enables novel and valuable workflows with integration not conceived or not practical until now
Work with other solutions and standards related to production optimization, wells, reservoirs, processing plants, production accounting, etc.

37. Vision for 2007 and Beyond
Consider similar efforts in associated areas, such as
Well Management
Well Optimization
Reservoir Performance
Opportunity Portfolio Management
Facility Optimization
Etc.
The PRODML approach and the PRODML architecture may fit well in some or all of these areas.

38. PRODML ’07 Work Group Scope: Flow Network Model
Requirements
Basic Flow Network Model content: Units, Ports, Connections, Locations, etc.
Enable applications to respond to configuration changes either of Units/Connections or operational parameters
Address connections with adjacent models, e.g. reservoir
Enable levels of abstractions and subsets
Enable different depths of information about Units
Enable interactions with existing / emerging standards
Proposed Pilot Testing Activities
Support multiple levels of detail and support major/minor configuration changes
Consider Web Services to supply Flow Network information to applications, including information about changes

39. PRODML ’07 Work Group Scope: Well Types
Priorities for ’07
Fluid-Driven Artificial Lift – Surface Connections only
Consider Time Cycles for intermittent gas lift/plunger lift
Jet and Hydraulic Pump wells
Power-Assisted Artificial Lift
Consider electric motors at the surface
Consider mechanical lift
Consider variable frequency drives in electrical controllers [later]
Down-Hole Sensors
Consider wellbore configuration (WITSML Completion)
Consider multi-zone allocated volumes
Consider further aspects of well description [later]
Down-Hole Equipment [after progress on the above]
Consider down-hole gas lift for surveillance
Consider artificial lift device internals, e.g. motor / pump shaft
Consider flow controller devices

40. PRODML ’07 Work Group TimeLine & Milestones
January – June Cycle
January – Planning, sign-up, initiation of work and Pilots
February – Design, architecture confirmed, Pilot interactions, Paper prototypes
May – Pilot software work progressing, review by participating organizations, plan July-December Cycle
June – Pilot demonstrations ready, Public review period, Accept July-December Cycle plan
July – December Cycle
July – Change Requests from January-June Cycle, Planning, sign-up, initiation of work and Pilots
August – Design, architecture confirmed, Pilot interactions, Paper prototypes
October – Pilot software work progressing, review by participating organizations
November – Pilot demonstrations ready, Public review period, Plan 2008
December – Change Requests from July-December Cycle.

41. PRODML SIG and PRODML ’07 Work Group
Steering Committee
PRODML ’07 WG
Impl. Sup. Team*
Spec. Team*
’07 Ops. Team
* Coverage for existing Standards: - optimization stds (PRODML V1)
reporting (WITSML Prod Rptg)
temp surveys (WISML Prod DTS)
fluid properties (WITSML Prod FP)
’07 Content Team
’07 Tech. Team
Focus on defining, implementing, piloting, demo-ing ’07 capabilities in optimization
Promoting and supporting use of current Standards and supporting needs of PRODML ’07 WG

42. Continues Successful Ways of Working
IP and Non-Commercial policies
Value, short-duration, Pilot testing activities
Interaction with PRODML SIG and other Standards/SIGs
Resource commitments
Self-funded
Closed participation of small but adequate number of members
Energy, Service/Software, Technology, Standards [Energistics]
Communications out to Energistics community and the industry
Comprehensive hands-on project management
Agreed Terms of Reference; approved by SIG Steering Committee
Operational Team, Interaction Tools (Web Sites)
Meetings and Conference Calls
Effective Work Group Team structure

43. How to Participate in PRODML in ‘07
Use PRODML Version 1.0 Standards
Develop (and sell) or license and use PRODML-based products
Join the open PRODML Special Interest Group
The Energistics open user community for all Production industry standards, including PRODML
Also, Fibre Optic Temperature Surveys, Production Reporting, and Laboratory Fluid Sample Analysis Results
Promotes and supports use of PRODML V1.0 Standards Contribute to the long-term roadmap for PRODML Standards
Contact Energistics for details
Join the PRODML ’07 Work Group
A self-funded, closed work effort to push PRODML to a new level of functionality mainly through more Oil Company led, Vendor involved Pilot Testing Activities

44. Shell Pilot Testing Activities
Free-Flowing Well Surveillance
Purpose
Notify operator whenever measured and projected production volumes differ beyond a defined threshold
Uses three sources of information
Actual and two sets of simulation results (Plug-and-Play)
Data Validator Application [Invensys: InFusion]
Triggered according to a schedule
Historian [OSIsoft: PI]
Simulation #1 [Petex: Prosper]
Simulation #2 [Weatherford: WellFlo]
Notification [Invensys]

45. Shell Pilot Invensys Notification Invensys InFusion App Env 8 6 1a 7
GetFromStore 1a 7
AddToStore
GetDataInvoke 2a
Response 2b 1b
Response 1
Get measured data every X minutes 2
Get simulated data 5 3
Determine well type 4
Get operational conditions
Weatherford
WellFlo
PETEX
Prosper 5
Simulate well performance
Response 4b 6
Assess Results
GetFromStore 4a 7
Notify alarm
models 3 8
Assess Results
OSISoft PI
Historian

46. BP Pilot Testing Activities
Gas Lift Optimization
Purpose:
Optimize Gas Lift by recommending revised lift gas rate changes
Plug-and-Play demonstrated by 2 Monitor applications
Data Consolidator #1 (Monitor) [OSIsoft: ACE]
Data Consolidator #2 (Monitor) [Intellifield: SITECOM]
Historian [OSIsoft: PI]
Optimizer [Weatherford: GL Optimizer]
Notification [Intellifield: Portal]

47. BP Pilot Sense Intellifield SITECOM Consolidator 2 5 8 3a 3b 1a 1b 6b
GetFromStore 3a
Response 3b
GetFromStore 1a
Response 1b
Response 6b
GetDataInvoke 6a
GetFromStore 4a
Response 4b 9
AddToStore 1
Request gas lift rate every X minutes 2
Assess results 3
Get measured data 4
Get manual input data 5
Consolidate data
Weatherford
GL Optimiser 6
Trigger optimiser
OSISoft
PI Historian
models 7
Sense Intellifield
Portal 7
Optimise 8
Distribute results 9
Send optimiser results
OSISoft
ACE Consolidator

48. Chevron Pilot Testing Activities
Field-wide Water Management
Purpose
Notify user when water tanks will reach high level, and prescribe rates for highest impact wells
1000 wells (of 10,000 in the field)
Production Accounting [TietoEnator: EC]
Monitor Application [Invensys: InFusion]
Historian [Invensys: InSQL]
Simulator [Weatherford: LOWIS]
Forecasting [Landmark: DSS]
Data Integrator [Schlumberger]
Notification [Invensys]

49. Chevron Pilot 25 Schlumberger Data Integrator 24 Invensys Notification
AddToStore
Schlumberger
Data Integrator 24 25
Send instruction data 16
Trigger optimisation 19
Get well forecasts 3
Determine tank type 4
Get operational conditions 14
Forecast tank level 15
Notify Alarm 2
Surveil tanks every X days 20
Determine well type 18
Get well statuses 21
Get allocations 17 24
Develop prioritised list 10 22
Forecast wells 23
Get rig on/off dates 1
Simulate data sets 5
Get simulated tank level data 6
Get water allocations 7 8
Get simulated sales & status data 9
Get well test data 11
Get simulated well data 12
Consolidate data 13
Allocate flows
Invensys
Notification
GetDataInvoke
16b
GetDataInvoke
19a
models 17
16a
GetDataInvoke
18a
18b
19b
GetDataInvokee
23a
23b 15
AddToStore 2
Invensys
InFusion
Landmark
DSS 22 14
GetDataInvoke 6a
GetDataInvoke
21a
models 3
models 20
GetFromStore 4a 4b 6b
21b
Energy
Components 13
Invensys
InSQL 8a 8b
models 7
GetDataInvoke 9a 9b 5a 5b
Weatherford
LOWIS 12
11a
11b
models 10
Data Set
Simulator 1

50. Statoil Pilot Testing Activities
Optimize smart wells
Purpose
Optimize smart wells and report recommended operational parameters
Data Consolidator (Monitor) [Schlumberger: DECIDE]
Historian [Out of Scope]
Production Accounting and Operational Parameters [TietoEnator, PROSTY]
Optimizer [Schlumberger: IAM]
Simulator [Petex: PROSPER]

51. Statoil Pilot 1 Aspentech Historian Energy Components PROSTY 13 3b 3a
Response 3a
GetFromStore
Response
12b
AddToStore
12a
Response 7b
GetFromStore 7a 1
Poll Historian 2
Trigger time base every X minutes 2 4 3
Get well dynamic data 4
Consolidate data 5
Trigger optimizer 6
Get cleansed & consolidated data
Schlumberger
DECIDE 5b
Response 7
Get manual data 5a
GetDataInvoke 8
Get simulated data 9
Determine well type 6a
GetFromStore 10
Simulate well performance 6b
Response 10 11
Optimize
Response 8b 12
Distribute recommended results
Prosper
PETEX 13
Optimize
GetDataInvoke 8a
models 9 11
Schlumberger
IAM

52. Thank You धन्यवाद