1. Integrated Operations SIG Introduction and Overview David Archer Alan Doniger POSC POSC Regional SIG Seminar New Delhi 14 January 2005

2. The Vision: An integrated digital EP Business with processes sufficiently automated to enable people to achieve superior business performance. Source: Herb Yuan (Shell)

3. Oil fields of the future: real-time oil and gas operations Onshore Facilities Decision Centers Offshore Facilities new capabilities – much more data; much more exposure Source: Peter Breunig (CVX)

4. Smart Systems The basic approach of all “smart technology” is measure-model-control –measure system properties –model actual vs desired behaviour –derive required correction parameters (adaptive control) –implement control ∆ INTOPS Acquire Model Analyze Control Source: Shell INTOPS = Integrated Operations

5. Business Headquarters Capacity Planning Design [months/years] Operational Planning [months/years] Scheduling [days/months] Supervisory Control [minutes/hours] Regulatory Control [sec/minutes] Well & Surface facilities -Flow, pressure and temperature in wells and separator -Fuel injection to produce heat out of a boiler - SCADA systems for coordinating flow stations and pipelines -Gas distribution/optimization on a pipeline network -Monitoring wellheads, multiples and flow stations -Scheduling of injection/production plan and resources - Opening and closing wells or partial completions - Adjusting well operating parameters -Planning of injection/production plan and resources - Planning drilling and workover resources - Supply Chain Management & Market and customer demands -Asset life cycle and installed based maintenance or growth -Supply Chain Management & Market and customer demands Automation level Time-scale Fast cycle Slower cycle Source: Saputelli SPE 83978 Time Scales (10 6 range) INTOPS Acquire Model Analyze Control

6. IntOPS SIG Area of Interest –the definition, movement, and storage of production operation data, information, and knowledge, especially in support of integrated, intelligent, instrumented, etc. operations for near well-site and remote operations in time scales from near real-time to months and years. –This group is essentially a cross-vendor, cross-product line user community for production operations applications and data storage products and services. Players –operators, service and software providers, government agencies, consultancies, and POSC.

7. IntOPS SIG Meeting attendees thus far include: –Oil companies: BP, ChevronTexaco, ExxonMobil, Hydro, ONGC, Shell, Statoil –Non-profit: University of Houston, NPD, POSC Caesar –Commercial: Aspen Tech, Baker Hughes, Halliburton, Invensys, National Oilwell, Sense Intellifield, Merrick, Schlumberger

8. IntOPS SIG History –Formed in early ‘03 –Initial SIG meetings held in Houston and London –Meetings in ’04 in Houston and Stavanger –Association with and now participation in the Integrated Information Platform (IIP) project in Norway Statoil, Hydro, DNV, National Oilwell, POSC Caesar, FMC –Distributed Temperature Survey Data Transfer Standard Project Proposed by BP after initial work with BakerHughes Validated for level of interest Formed in Q3 and Q4 First phase due to be completed by end of 05 Q1.

9. IntOPS SIG History –Sponsored Strategic Decision Sciences’ "Roadmap to Enterprise Optimization" published in September 2004. POSC members receive a special price for the study and the SIG can use the results of the study. –Interaction with SPE Realtime Optimization We will co-chair the SPE Forum on "Automation, Measurement and Remote Control" to be held in 2005.

10. POSC Standards & SIGs Std/SIGDSSWITSMLInt. Ops.PWLS eRegulatory Geoshare Data Exch - WITSML (drilling & arch.) - WITSML (other) Practical E&P - Ref Vals - Catalog - Well Log - Other Data Mgt - Epicentre - Geoshare App Interop

11. IntOPS SIG What’s Next? –DTS Produce and publish initial specification in Q1 of ’05 Follow-up with pilot testing intended –IIP Participate in Steering Committee and working groups –Production Data Transfer Standards Development Exploit existing work to produce draft specifications –Integration Operations Architecture Identify and pursue achievable objectives guided by a selected team of qualified member representatives

12. David Archer President and CEO Alan Doniger POSC Chief Technology Officer 24 Greenway Plaza Suite 1000-B Houston, TX 77046-2401 +1 713 267-5124 phone +1 713 784-9219 fax Doniger@POSC.org http://www.posc.org