1. WITSML status and road ahead in StatoilHydro Energistics meeting june 17 2008 Lars Olav Grøvik

2. 2 Established on 1 October 2007 following the merger between Statoil and Hydro’s oil and energy business Equity production of 1.9 million barrels of oil equivalent per day (boe/d) and 6.3 billion boe/d in proven reserves The world’s largest deepwater operator and the world’s third largest net seller of crude oil About 30,000 employees in 40 countries This is StatoilHydro

3. 3

4. 4 What is WITSML ? WITSML is a standard for moving drilling data between rig and office based computer systems. Internet standards driven –XML/XMLSchema –WebServices –Hardware & software platform independent Public and open to all to implement. Hosted at Energistics (www.energistics.com)

5. 5 History Industry real time data centers in the 1980’s drove a standard, that became an API (American Petroleum Institute) recommended practice… –WITS (Wellsite Information Transfer Specification) Designed in an era before networks and the Internet. Differing approaches to network implementations fragmenting interoperability Statoil moved to develop DART (Drilling Automation Real Time) for their own needs DART Evolved into a multi company effort to create a new standard, replacing WITS, based on evolving internet technology, with much improved functionality. This resulted in WITSML. Hydro started to develop realtime solutions based upon WITSML in 2002.

6. 6 As-Is exStatoil Operated 24/7 by RTS (push) MWD/LWD (time/depth) Common routines, KPI measurements and data management. No central internal repository archiving No version control raw real-time (implemented) edited by service company edited by operator

7. 7 As-Is exHydro Operated 8-16 by ISP (push/pull) MWD/LWD (time/depth) Common routines and data management. Central internal repository archiving Version control (possible – not implemented) raw real-time edited by service company edited by operator

8. 8 To-Be WITSML solution - StatoilHydro Operated 24/7 by RTS (push/pull) MWD/LWD (time/depth) New data types (possible) Common routines, KPI measurements and data management. Central internal repository (possible) archiving Version control (possible) raw real-time edited by service company edited by operator

9. 9 Why WITSML ???? Statement – Using WITSML in it’s own is not a core business case for an operator – WITSML is just one of many existing technology components that can be used within the industry However, the WITSML standard and existing WITSML based technology might be – the component that makes it cost effective to implement business cases – the catalyst that makes it possible to identify new business cases

10. 10

11. 11 OPC - West Venture at Sandsli

12. 12 OPC – offshore on West Venture

13. 13 Digital-oilfield, iField, Field of the future ……. Present situation: StatoilHydro has implemented real-time systems and operation centres; this implementation has been a learning by doing process. There is a broad and varied set of experiences and challenges Status: We believe in integrated solutions. One of three corporate programs. :

14. 14 Realtime challenges, part 1 Design of the real-time system –Infrastructure, firewalls etc. –In the North Sea we have good infrastructure with fibre (SOIL) etc, internationally there are different standards of technology. What is the “right data” and what is the “right time”. Do we need everything in real-time ?? WITSML “dialects”, how do we enforce a standard and how do we maintain it ?? –Using test data-sets, test servers ?

15. 15 Realtime challenges part 2. How to handle a fragile data stream from down hole into the operation centre with a minimum of human intervention and errors?? –BUT at the same time have human supervision and QC of data and data-flow… What is the right metadata (context information) ?? –Robust metadata covering both discipline and life cycle. Wired-pipe gives a multi-fold increase in transmission rate - how do we handle the increased data amount?? Why is a lot of today’s software not ready for real-time and operation centres?? –(Our experience is that a surprising amount of software is "static“ not real-time)

16. 16 Integrated operations challenges and road ahead Integrated operations –Across disciplines –Entire Project lifecycle. Geographic integration – data integration –Integrated work process IT infrastructure challenges: latency, firewalls, bandwith etc… How to balance implementation of new technology and standard solutions. –Can we “keep up with the technofreaks” ??? –Data management and metadata…..

17. 17 Thank you for your attention and patience... Technology is dominated by two types of people: those who understand what they do not manage, and those who manage what they do not understand. -Putt’s Law-