2. Copyright © 2004 TietoEnator Corporation Production data reporting - standardisation Regional SIG Meeting – May 12 - Houston, Texas

3. Copyright © 2004 TietoEnator CorporationPage 2 2005-02-21 TietoEnator  14 000 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 and Kuala Lumpur  250+ consultants dedicated to the Oil & Gas industry

4. Copyright © 2004 TietoEnator CorporationPage 3 2005-02-21 Background - Production reporting and Integrated operations in the North Sea region  TietoEnator and Petoro initiated a common project for Performance and Production Management –Standardisation and automation –Focus on Production  Integrated operations initiative –Started by Norwegian Oil Industry Association's (OLF's) with (Shell, BP, Chevron, Exxon, Statoil, ConocoPhillips, Total, etc.) –The overall program started 2001/2002 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  These two initiatives led to the specific project on Production reporting run by OLF and TietoEnator

5. Copyright © 2004 TietoEnator CorporationPage 4 2005-02-21 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)

6. Copyright © 2004 TietoEnator CorporationPage 5 2005-02-21 Integrated Operations Information sharing across disciplines Business Processes Drilling  WITSML  Daily Drilling Report  Logging  Completion Reservoir Evaluation  Seismic  3D and 4D model Production  Pressure, temperature and multiphase flow  Production partner exchange data  Daily Production Report  Prod optimisation data Operation & Maintenance  Sub Sea Equipment  Top site  Pipelines Development  Concept  Design  Fabrication  Installation  Commissioning Benefits Definitions of concepts from important business processes in upstream oil and gas industry are available on Internet and can be used consistent by operators, service and engineering companies, and solution providers world wide. This enable information sharing and efficient collaboration across disciplines and between operators, partners, authorities and their suppliers. International standardisation ISO TC 184/SC 4  ISO 15926 Part 4, 5 & 6 World Wide Web Consortium (W3C)  Web Ontology Language (OWL) POSC  WITSML  PRODML  WITSML(Drilling)  Epicentre OASIS  TC PLCS Register for Reference Data (POSC Caesar) Contains definitions of concepts from relevant business processes in oil and gas (www.posccaesar.com)

7. Copyright © 2004 TietoEnator CorporationPage 6 2005-02-21 Production data project - Overview  Goals –One Industry solution in Norway – with all major stakeholders –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  Steps –Define common production terms (Implemented as ISO 15926) –Develop XML exchange format (Based on POSC WITSML) –Implement a data exchange solution for the North Sea Oil&Gas fields (Based on existing hub, LicenseWeb)  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 decision making –An important step to achieving full eOperations advantages

8. Copyright © 2004 TietoEnator CorporationPage 7 2005-02-21 Production data project - Data definitions  Development and implementation of a new RDS (Reference Data System) with infrastructure, procedures and documentation  RDL (Reference Data Library) data according to 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

9. Copyright © 2004 TietoEnator CorporationPage 8 2005-02-21 Production data project - XML standard exchange and reporting format  According to international standards (POSC)  WITSML / PRODML cooperation and compliance  W3C standard  We have worked closely with POSC to agree on a structure flexible enough to handle both data exchange and reporting including aggregation of data.  We have established a generic database for exchange of XML documents and other documents –Is currently implementing the standard in this database

10. Copyright © 2004 TietoEnator CorporationPage 9 2005-02-21 Standards & POSC - Outcome of cooperation with POSC  Agreed on a common approach to XML format  Established a common understanding for business and reporting needs  Agreed to a common approach for solving issues related to relationship between production data and different field facilities (e.g. well, platform, pipeline)  Agreed upon a more reusable XML structure more suited for a global production data approach  Agreed on XML structure that will support both reporting needs and possible data exchange needs  Agreed XML structure supports different reporting requirements  Final outcome: A format suited for more than production data reporting

11. Copyright © 2004 TietoEnator CorporationPage 10 2005-02-21 XML schema, structure and format - TE / POSC Co-operation results  Value added –Allow combination of hierarchical and flat structure  Hierarchical -> parent/child relations e.g. facility->template->well->wellbore  Flat -> flexible/generic – very suitable for data exchange –Suitable for both reporting, data exchange, monitoring and analysis / aggregation  Data extraction to generic format – allows multiple output pipes –Allow more complex data analysis / aggregation –Based upon already existing data exchange format : WITSML –Format supports globalization of data –Supports a combined snapshot capturing of data and current field setup –Highly object oriented structure -> high reuse –Format anchored as a part of a possible global standard promoted by POSC / TE  PRODML Work Group

12. Copyright © 2004 TietoEnator CorporationPage 11 2005-02-21 Production data project - Project plan  Project start: October 2004  Definition of terms: October 2004 – May 2005  Coding of XML: May 2005 – October 2005 –Energy Components –Generic XML database (LicenseWeb)  Testing Valhall (BP) and Åsgard (Statoil): October 2005  Evaluation of the testing November 2005  Approval process in OLF: December 2005  Implementation in the licenses : January 2006 –

13. Copyright © 2004 TietoEnator CorporationPage 12 2005-02-21 Reporting of production data  Production data on XML format from production system  XML-processor receiving and storing XML files (alongside with text and html based version for printing/viewing)  Daily activity and production data reported to partners  Monthly production data reported to authorities  Data definitions is incorporated into standard ISO-15926  XML scheme made by TE and forms new POSC standard (WITSML-Production)  Possible to aggregate data  Fully automated process  All work performed by TietoEnator LicenseWeb/ AuthorityWeb Production System XML processor OperatorLicenseWeb/ AuthorityWeb Partners Daily prod data Monthly prod data Authorities XML-file XML- file Text- file Authorities/ partners

14. Copyright © 2004 TietoEnator CorporationPage 13 2005-02-21 Technical solution License Web XML file Internal Prod. data system XML file Make std reports Storage of documents/XML XML Std Prod rapport Non std reports Spesial reports Excel rapporter Prod report Operator Generic XML DB (LicenseWeb) Partner/Operator Valhall Åsgard XML Reference Data Library (ISO 15926)

15. Copyright © 2004 TietoEnator CorporationPage 14 2005-02-21 Reporting of performance data - Performance related reporting LicenseWeb/ AuthorityWeb Operator databases XML Interface Oilfield Performance Data Queries Reports  Possible to expand on performance figures (prod, drilling, HSE, finance, etc.)  Graphic and textual representation  Automatic reporting using XML

16. Copyright © 2004 TietoEnator CorporationPage 15 2005-02-21 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 –250 licenses –40 companies –6000 users  Used by Statoil’s international licenses (Pilot in Nigeria) Partners license operator Authorities LicenseWeb

17. Copyright © 2004 TietoEnator CorporationPage 16 2005-02-21 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

18. Copyright © 2004 TietoEnator CorporationPage 17 2005-02-21 Results & Experiences from the pilot  Recommendation from the OLF  OLF's Committee for Health, Safety and Operation (HSO) unanimous approved the recommendation to implement the "Daily Production Report system" on the Norwegian Continental Shelf in 2006. The work on this system was initiated by Petoro and has been supported by 7-8 major operators on the NCS. The project group is planning to establish an implementation priority list.

19. Copyright © 2004 TietoEnator CorporationPage 18 2005-02-21 Experiences from the Pilot  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  Identified uncommon practice and procedures for data approval between companies and within team leaders within the same company –This resulted in a need more sophisticated re-run application  Identified some improvements areas in the XML schemas –Feedback already provided to and discussed with POSC

20. Copyright © 2004 TietoEnator CorporationPage 19 2005-02-21 Current plans  Move the pilots into production  Prioritize new DPR implementations for Norwegian shelf  New field implementations for: –Exxon, Statoil, BP, Marathon, –Some implementations will be planned into 2007  Establish an operational environment in TE and Customer sites  Establish a operational support group for customers