1. Copyright © 2004 TietoEnator Corporation Production Reporting - at the NCS and beyond POSC SIG meeting Aberdeen, 20th of June 2006 Oddvar Nesse, TietoEnator

2. Copyright © 2006 TietoEnator CorporationPage 2 Wednesday, 07 June 2006 TietoEnator  15 000 employees  Strong TietoEnator Oil & Gas commitment and focus  Business skills and expertise  World-class products  Industry business solutions  Full services range  Present in Stavanger, Aberdeen, Groningen, Houston, Calgary and Kuala Lumpur

3. Copyright © 2006 TietoEnator CorporationPage 3 Wednesday, 07 June 2006 Production reporting at NCS  Daily partner reporting using LicenseWeb  Monthly authority reporting to NPD  Problems –No standardisation of terms –No standardisation of format

4. Copyright © 2006 TietoEnator CorporationPage 4 Wednesday, 07 June 2006 Consequences  Time-consuming process to gather data from different production facilities  Poor data quality due to variations in definitions  >> Difficult to get a real overview over total production, and other relevant data

5. Copyright © 2006 TietoEnator CorporationPage 5 Wednesday, 07 June 2006 The initiative  TietoEnator made contact with Petoro (spring 2003)  Pre-study was performed  Promising result with support from major NCS companies  Handed over to the OLF (Norwegian Oil Industry Association)

6. Copyright © 2006 TietoEnator CorporationPage 6 Wednesday, 07 June 2006 The TietoEnator concept from 2003 Energy Components + possibly other sources XML Interface Production and Performance Data Querys Reports Metadata  Gather production and performance data  Using XML  Publish through LicenseWeb  Enabling effective presentation of key data

7. Copyright © 2006 TietoEnator CorporationPage 7 Wednesday, 07 June 2006 Integrated Operations program - OLF initiated  Integrated operations program  Started by Norwegian Oil Industry Association (OLF) with Shell, BP, Chevron, Exxon, Statoil, ConocoPhillips, Total, etc.  The overall program started 2001/2002, duration until at least 2008 –Efficient real time data gathering –Further develop the digital infrastructure on the Norwegian continental shelf –Establish a common platform for data integration across field development phases, disciplines and companies based on international standards and new-technology

8. Copyright © 2006 TietoEnator CorporationPage 8 Wednesday, 07 June 2006 Production data project - Goals  One common set of definitions for an extensive set of terms used in the production area (data elements)  Standard solution – available for all, built on well known and proven international standards and structures  One Industry solution in Norway – with all major stakeholders

9. Copyright © 2006 TietoEnator CorporationPage 9 Wednesday, 07 June 2006 Production data project - Steps 1.Define common production terms 2.Develop XML exchange format 3.Implement a data exchange solution + prototype 4.Roll-out solution across all fields

10. Copyright © 2006 TietoEnator CorporationPage 10 Wednesday, 07 June 2006 Production data project - Step 1: Define common production terms  According to international standards, ISO 15926.  Production Data elements are defined for use (1500 terms)  All Oil&Gas Operating Companies in Norway has agreed on the definitions  One common set of definitions across companies and fields to achieve common understanding of terms

11. Copyright © 2006 TietoEnator CorporationPage 11 Wednesday, 07 June 2006 Production data project - Step 1: Define common production terms  1500 terms  Daily activity and production report  Data areas –Production qualities and volumes –Export qualities and volumes –Injection, import and consumption –Water cleaning and quality –Well production and injection –Personnel safety and weather –Activities and comments

12. Copyright © 2006 TietoEnator CorporationPage 12 Wednesday, 07 June 2006 Production data project - Step 2: Develop XML exchange format  According to international standards (POSC)  WITSML / PRODML cooperation and compliance  A structure flexible enough to handle both data exchange and reporting including aggregation of data  XML structure developed in close co-operation with POSC (Petroleum Open Standard Consortium)

13. Copyright © 2006 TietoEnator CorporationPage 13 Wednesday, 07 June 2006 Production data project - Step 3: Implement a data exchange solution + prototype  Daily Production Reporting solution (DPR)  Retrieving data from production DB  Processing and transforming data  Storing XML and Html rendition in LicenseWeb EC Production DPR Retrieval QC/Validation XML transformation Publishing Daily production and activity data SOIL network Internal network

14. Copyright © 2006 TietoEnator CorporationPage 14 Wednesday, 07 June 2006 Production data project - Step 3: Implement a data exchange solution + prototype  Pilot experiences –All companies were satisfied, both operators and partners –Stable and good performance –More data exposed to partners and onshore than earlier –Showed that all partner got the same data more expedient than earlier  Revealed different practice and procedures for data approval between companies and within same company –Need for more sophisticated re-run/approval features  Revealed some improvement areas in the DPRML/‘PRODML’ schema –List forwarded to POSC

15. Copyright © 2006 TietoEnator CorporationPage 15 Wednesday, 07 June 2006 Production data project - Step 3: Implement a data exchange solution + prototype  Prototype run at Statoil Åsgard and BP Valhall  Successful  Approved by OLF management committee for HSE and Operations  Letter to all operators on NCS: “... OLF’s HSO Committee recommends that all operators on the NCS implement the common daily production report system in all production licensees with oil and/or gas production...” Knut Thorvaldsen, Director HSE and Operations, OLF

16. Copyright © 2006 TietoEnator CorporationPage 16 Wednesday, 07 June 2006 Production data project - Step 4: Roll out across all fields  Technology consolidation and preparation  Improved functions for approval, logging and re-run  Formal agreements established  Roll-out has now started Production DB XML transformation QC/Validation HTML transformation Publishing Logging Re-run Daily production and activity data Daily production and acitivity report SOIL network Internal network DPR - User interface SQLSQL LW communication server

17. Copyright © 2006 TietoEnator CorporationPage 17 Wednesday, 07 June 2006 Production data project - Project plan  Project start: October 2004  Definition of terms: October 2004 – May 2005  Coding of XML: May 2005 – October 2005  Pilot Valhall (BP) and Åsgard (Statoil): October 2005  Evaluation of the testing November 2005  Approval process in OLF: December 2005  Implementation in the licenses : 2006 – 2007

18. Copyright © 2006 TietoEnator CorporationPage 18 Wednesday, 07 June 2006 Current plans  Move the pilots into production  Prioritize new DPR implementations for Norwegian shelf  New field implementations for: –Exxon, Statoil, BP, Marathon, Hydro, ConocoPhillips –Some implementations will be planned into 2007  Establish an operational environment in TE and Customer sites  Establish a operational support group for customers  First Field in operation is : BP - Valhall in Week 24

19. Copyright © 2006 TietoEnator CorporationPage 19 Wednesday, 07 June 2006 Production data project - Benefits  Easy information sharing between companies/applications/work processes  Strong and flexible XML structure enabling dynamic reporting possibilities (Aggregations of data over time and cross fields/wells )  Allows for timely and improved decision making  An important step to achieving full eOperations advantages  International standardisation (POSC and ISO)  Total overview for a company’s NCS assets  Updated information after re-allocation  Elimination of manual data loading and intervention  Opens for benchmarking between assets

20. Copyright © 2006 TietoEnator CorporationPage 20 Wednesday, 07 June 2006 International potential  "Developing standards in cooperation with TietoEnator has been very productive. This close cooperation has yielded a good result which can be used by the production environments. The solutions we have arrived at here can also be further developed in the international oil and gas industry," Alan Doniger, chief technology officer in POSC

21. Copyright © 2006 TietoEnator CorporationPage 21 Wednesday, 07 June 2006 Partner reporting evolution - Norwegian Continental Shelf  Many to many  Various channels  Manual  Various formats Unstructured point-to-point Unstructured Hub-based Structured Hub-based  Many to one  One channel  Manual  Various formats  Many to one  One channel  Automatic  One format  Enabling eOperations opportunities for partners (and operators)

22. Copyright © 2006 TietoEnator CorporationPage 22 Wednesday, 07 June 2006 How to benefit from this work in other O&G regions  International standards –Developed by POSC, Oil Companies and TE –Included in the ISO 15926 standard  Project includes pilots and can be monitored by companies –Participating companies in the project are the major Oil Companies  Developed with regard to be a global standard and available for further extensions and regional deployment: –More definitions can be added to the standard –New data elements can be included in XML structure

23. Copyright © 2006 TietoEnator CorporationPage 23 Wednesday, 07 June 2006 LicenseWeb  Web-based solution for digital processes/archive for authorities and companies and within license management (concessions)  Dramatically increased efficiency of Authority and License management processes  Used in NCS and DKCS –Authority organisations –300 licenses –50 companies –6000 users  Used by Statoil’s international licenses Partners license operator Authorities LicenseWeb

24. Copyright © 2006 TietoEnator CorporationPage 24 Wednesday, 07 June 2006 Production Monitoring and Reporting (PMR)  Developed together with Statoil  New product, integrated into the EC product portfolio  Interface to EC Production  Powerful reporting possibilities Oilfield production data

25. Copyright © 2006 TietoEnator CorporationPage 25 Wednesday, 07 June 2006

26. Copyright © 2006 TietoEnator CorporationPage 26 Wednesday, 07 June 2006 Facility [kind=field] [name=Åsgard] Facility [kind=field] [name=Snorre] Facility [kind=platform] [name=Åsgard A] Facility [kind=platform] [name=Åsgard B] Facility [kind=platform] [name=Snorre A] Facility [kind=platform] [name=Snorre B] Facility [kind=template] [name=Template A] Facility [kind=template] [name=Template B] Facility [kind=flowline] [name=Flowline A] Facility [kind=flowline] [name=Flowline B] Facility [kind=well] [name=Well A1] Facility [kind=well] [name=Well A2] Facility [kind=bottomhole] [name=BTMH A1] Facility [kind=country] [name=Norway ] Facility [kind=country] [name=UK] STATOIL Facility [kind=area] [name=Halten] Facility [kind=area] [name=Tampen] Aggregation and drill-down  Structure and format built for aggregation, drill-down and reporting  Structure is built automatically based on content of XML