1. © Copyright 2006 POSC WITSML™ SIG Meetings and Public Seminar & Exhibition Alan Doniger, POSC October 17-19, 2006 Aberdeen, Scotland

2. © Copyright 2006 POSC October 19 Public Seminar Meeting Host: –BP, Julian Pickering and Sophie Rickman Reception Hosts: –BakerHughes, John Shields –PRODML Work Group, Rusty Foreman (Chair) Exhibitors: –Aspentech, Baker Hughes, Halliburton, IDS, INT, Paradigm, Petrolink, Roxar, POSC, PRODML Work Group, Schlumberger, SDC Geologix, Sense Intellifield, Smith Bits

3. © Copyright 2006 POSC WITSML™ – WWW.WITSML.ORGWWW.WITSML.ORG Wellsite Information Transfer Standard Markup Language “The ‘right-time’ seamless flow of well-site data between operators and service companies to speed and enhance decision-making” A New Open Information Transfer Standard for the Oilfield

4. © Copyright 2006 POSC The POSC WITSML™ Special Interest Group (SIG) The WITSML SIG is the formal user community for the WITSML standards. –Membership is open to all (POSC members and non-member alike) –Membership is over forty organizations –The SIG recognizes requirements and needs –The SIG is the first line of review of new and updated specifications –The SIG helps promote vendor take-up and operator deployment

5. © Copyright 2006 POSC WITSML SIG Area of Interest –the definition, movement, and storage of drilling data, information, and knowledge, especially the “right time” seamless flow of well site data between operators and service companies to speed and enhance decision-making. –This group is essentially a cross-vendor, cross-product line user community for drilling applications and data storage products and services. Players –operators, service and software providers, government agencies, consultancies, and POSC.

6. © Copyright 2006 POSC

7. Special Interest Group Participants Operators Statoil BP Shell ExxonMobil ChevronTexaco Pioneer Nat. Res. Hydro ONGC Total Regulators UK DTI US DOI Service/Software Suppliers Baker Hughes Landmark/Halliburton/Sperry Schlumberger Sense Technology SDC Geologix Petrolink INT Paradigm Pason OpenSpirit HRH Geological Services Smith Technologies IFP Interaction US Synthetic Knowledge Systems POSC special interest groups are open to all interested parties. Service/Software Suppliers AspenTech Roxar Key Energy Services Seismic Micro Technology M/D Totco Geoservices Independent Data Services Well Data Technology Wellstorm Development Merrick Systems Datalog Technology Rogaland Research Peloton National Oilwell Varco (Norway) TietoEnator Visean

8. © Copyright 2006 POSC General Well Message Operations Report – UPDATE PROPOSAL Real Time Wellbore Wellbore Geometry Risk Directional Drilling Systems Tubular / Bit Record BHA Run Fluids Systems Fluids Report Surface Logging Mud Log Logging While Drilling Log  Well Log (includes Wireline) Formation Marker Coring Sidewall Core Conventional Core Surveying Survey Program Target Trajectory WITSML Data Objects Rig Instrumentation Rig / Rig Equipment Cement Job Source: BakerHughes/Paradigm Communication Subscription Server Capabilities Existing Updated New

9. © Copyright 2006 POSC 10 th Anniversary WITSML meeting associated with public seminars 2001, #1, Austin, Schlumberger 2002, #2, Stavanger, BP/Statoil 2003, #3-4, Aberdeen/Houston, Shell/ExxonMobil 2004, #5-6, Calgary/Paris, Halliburton/IFP 2005, #7-8, Houston/Stavanger, Chevron/Statoil 2006, #9-10, Houston/Aberdeen, Schlumberger/BP 2007 (to be planned)

10. © Copyright 2006 POSC October 17-19 Meetings Technical Teams –Address feedback and deferred issues Use Case and Requirements Team –Address possible future areas of focus: drilling reports, completions, environmental, well services, well stimulation, service rig reporting. Implementation Support Team –First meeting. Intended for those supporting WITSML-enabled environments to share lessons learned and current issues and challenges. Public Seminar –Current reports from actual experiences and plans from oil companies, service companies, and software companies. –Service and software vendor exhibits

11. © Copyright 2006 POSC Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage We can use this image to portray the growth in WITSML coverage?

12. © Copyright 2006 POSC General Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage Enhancements for raw, calculated and planned Well Path data, coordinate systems, and units.  WellPath Well Wellbore Trajectory  CRS, Projections  Units of Measure

13. © Copyright 2006 POSC General Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage Enhancements for wireline as well as LWD log data.  Log,WellLog

14. © Copyright 2006 POSC General Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage Enhancements for Production beginning with Volume and Activity Reporting, continuing with PRODML towards Optimization.  Network Model Volume Report Activity Report

15. © Copyright 2006 POSC General Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage We have a pending request to establish a Geophysical SIG. Such a SIG could lead to WITSML Geophysical data exchange Standards.

16. © Copyright 2006 POSC General Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage At a future time, we could consider the viability of data exchange Standards for facility data, reservoir data, economics data, etc. filling out the E&P space.

17. © Copyright 2006 POSC General Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production Operations Geophysics Drilling Operations Completion & Workover E&P Subject Areas: WITSML Coverage This would call for close cooperation with other industry groups to avoid duplication of effort and ensure smooth transitions.

18. © Copyright 2006 POSC and the POSC Special Interest Groups Drilling SIG (1) Drilling uses and (2) Overall architecture [data, API (data server-centric)] Production SIG (1) Production Reporting (2) Production Optimization [API (application invocation focused)] (3) Temperature Surveys (4) Fluid Properties Geology SIG (1) Well Log data transfer uses – wireline and LWD (2) Depth Registration – scanned paper logs

19. © Copyright 2006 POSC and the POSC Special Interest Groups Data Management SIG (1) Reference Standards Source (2) CRS (3) Well Path (4) Possible use for Well Identity Services data transfers eRegulatory SIG (1) Regulatory (Permitting and Reporting) data transfer uses

20. © Copyright 2006 POSC Why has the WITSML initiative been successful? Some lessons learned / best practices The Right Initial Players - clear focus BP & Statoil with Baker, Halliburton, Schlumberger, and NPSi Strong Commitment Initial funding by oil companies; Oil & service companies remain engaged after initial delivery Effective Processes Practical, incremental approach Clear focus on target outcomes - through implementation Frequent communications - steering & technical teams Choice of Technologies XML, SOAP Comprehensive Output and Documentation XML Schemas + Server API + sample implementation Openness / Evolution Public seminars and presentations Transfer to POSC in early ’03 -- commercially neutral custody, publication, promotion and evolution

21. © Copyright 2006 POSC What we must do in the future? Maintain enthusiasm for the vision Continue to involve interested and committed, knowledgeable people Address use cases that add real (quantifiable to management) value Keep the spirit of trust and cooperation between competitors Have oil companies supply chain management provide contractual re-enforcement Increase cooperation among different domains to minimize duplication working with similar types of data and to maximize re-use of work already done Continue to work with other organizations to maximize alignment of data exchange specifications as well as vocabularies and reference data Based on BP slide, June ‘04

22. © Copyright 2006 POSC SIG Meetings, October 17 Agenda –9:00 Registration –9:30 Early Technical Team Meeting Team Chair: John Shields, Baker Hughes POSC Facilitator: Gary Masters, POSC –12:00 Lunch and Registration –13:00 Opening General Session Welcome and Introductions Challenge Themes Team Reports on Plans for These Meetings General Interest Issues –Statoil Work on Work Processes / Use Cases, Frode Lande –Learning about PRODML’s learnings …

23. © Copyright 2006 POSC SIG Meetings, October 17 Agenda –14:45 Break –15:15 Afternoon Separate Working Sessions Technical Team –Current Issues –Plans for 2007 Implementation Support Team: David Johnson and Use Case & Requirements Team: Julian Pickering –Follow-up on Proposed “Challenge Themes” –Follow-up on Use Case Work »Use of PRODML-like Interaction Diagrams –17:00 Adjourn

24. © Copyright 2006 POSC SIG Meetings, October 18 Agenda –08:30 Registration and Breakfast –09:00 Morning Joint Session Discussion of Overall SIG Plans and Progress Discussion of Cross-Team Issues and Opportunities Other Subjects to-be-determined –Presentations and Discussion: Norway Daily Drilling Reporting Enhancement –10:00 Morning Break –10:30 Morning Separate Working Sessions Technical Team (continued) Implementation Support Team and Use Case & Requirements Team (continued)

25. © Copyright 2006 POSC SIG Meetings, October 18 Agenda –12:00 Lunch –13:00 Afternoon Separate Working Sessions Technical Teams Implementation Support Team and Use Case & Requirements Team –14:30 Afternoon Break –15:00 Afternoon Joint Session Team Reports on This Meeting’s Accomplishments Summary of Plans Questions and Answers (Participants and Guests) –17:00 Adjourn and Steering Committee Meeting (to 18:00)

26. © Copyright 2006 POSC Public Seminar, October 19 Agenda –08:00 Registration –08:30 Seminar Opening Session Welcome and Introductions, Alan Doniger, POSC Keynote Presentation, Julian Pickering, BP –09:20 Oil Company Presentations BP, Julian Pickering Statoil, Peter Nielsen Questions & Answers for Oil Company Representatives –10:00 Morning Break and Exhibition Visits Visit the Exhibits!

27. © Copyright 2006 POSC Public Seminar, October 19 Agenda –10:30 Software and Supplier Company Presentations Paradigm, Richard Pelling Schlumberger, Nigel Deeks SDC Geologix, Samit Sengupta Sense Intellifield, Duncan Edwards Baker Hughes, John Shields –12:15 Lunch. Visit the Exhibits!

28. © Copyright 2006 POSC Public Seminar, October 19 Agenda –13:15 Software and Supplier Company Presentations Halliburton, David Johnson INT, James Velasco Petrolink, Steven Johnstone Merrick Systems, Cheo Alvarez Questions and Answers for Software and Supplier Representatives –14:25 Special Presentation, Rusty Foreman, BP Overview of the Production Optimization Standards (PRODML) and tomorrow’s Production SIG Meeting –14:45 Afternoon Break. Visit the Exhibits!

29. © Copyright 2006 POSC Public Seminar, October 19 Agenda –15:15 Special Presentation, Jerry Hubbard, POSC Community Overview –15:35 WITSML SIG Team Reports Technical Teams, John Shields Use Case and Requirements Team, Julian Pickering Implementation Support Team, David Johnson –16:10 Open Discussion –16:30 Adjourn to the Exhibits, Reception Starts. –19:00 Reception Ends and Exhibits Close

30. © Copyright 2006 POSC Production SIG, October 20 Agenda –08:00 Registration and Breakfast –08:30 Meeting Begins Welcome and Introductions, Alan Doniger, POSC Production SIG Overview Update on Norway’s Integrated Information Platform Project (IIP), Pal Rylandsholm, DNV WITSML Production Reporting Standards and the Norway OLF Daily Partner Production Reporting Deployment, Bjorn Rugland, Statoil Questions & Answers –10:00 Morning Break

31. © Copyright 2006 POSC Production SIG, October 20 Agenda –10:30 Meeting Continues Update on PRODML Work Group (Optimization Standards) –History and Status, Jerry Blaker, PRODML WG Project Manager –Business Case –Pilot Activities and Demos Questions & Answers –12:00 Lunch

32. © Copyright 2006 POSC Production SIG, October 20 Agenda –13:00 Meeting Continues Update on PRODML Work Group (continues) –Public Review Results –Plan to Publish Version 1.0 –Transition to POSC and the Production SIG Production SIG Activities –Optimization »PRODML ’07 Work Group –Reporting –Temperature Surveys –Fluid Properties –14:30 Adjourn SIG Meeting

33. © Copyright 2006 POSC Additional Meetings, October 20 –14:30 – 15:00 Begin PRODML Work Group Steering Committee Meeting (for PRODML Work Group members only) –15:00 – 15:30 Production SIG Steering Committee Meeting (with Dial-in Capability)

34. © Copyright 2006 POSC SIG Meetings, October 17 Agenda –9:00 Registration –9:30 Early Technical Team Meeting Team Chair: John Shields, Baker Hughes POSC Facilitator: Gary Masters, POSC –12:00 Lunch and Registration –13:00 Opening General Session Welcome and Introductions Challenge Themes Team Reports on Plans for These Meetings General Interest Issues –Statoil Work on Work Processes / Use Cases, Frode Lande –Learning about PRODML’s learnings …

35. © Copyright 2006 POSC Welcome and Introductions Tell us briefly: –How long has your company been active with WITSML and the SIG? –How your company relates to WITSML in the marketplace? –Is your company’s use of and/or support for WITSML Steady, Growing, Shrinking? Why do you believe that and why is this true? –Where would you like to see the WITSML Standards from a marketplace point of view in 3 to 5 years? –If you could influence one improvement in WITSML right now, what would it be?

36. © Copyright 2006 POSC SIG Meetings, October 17 Agenda –9:00 Registration –9:30 Early Technical Team Meeting Team Chair: John Shields, Baker Hughes POSC Facilitator: Gary Masters, POSC –12:00 Lunch and Registration –13:00 Opening General Session Welcome and Introductions Challenge Themes Team Reports on Plans for These Meetings General Interest Issues –Statoil Work on Work Processes / Use Cases, Frode Lande

37. © Copyright 2006 POSC Challenge Theme #1 For all, but especially for the UCR and IST folks WITSML at Six Years of Age –WITSML is ready to use and, For some, it is in wide use. For others, it is growing in use now after some time has passed. For others, it is in limited use and lacks a growth commitment –The challenge is to discuss, agree, and document WITSML’s place the marketplace in terms of market share up to the present with predictions of the future – assuming no significant changes take place in the WITSML specifications. You may also illustrate other predictions assuming stated changes do take place.

38. © Copyright 2006 POSC Challenge Theme #2 Also, especially for the UCR and IST folks WITSML at Ten Years of Age –It is appropriate to see what consensus we can reach about where we want WITSML to be from a marketplace perspective in four years time. –Consider alternatives, including but not limited to 1.Do nothing major to WITSML 2.Make a concerted effort to achieve wide use of more of WITSML 3.Make a concerted effort to demonstrate support for Interventions 4.Make a concerted effort to apply WITSML to monitoring, analysis, simulation, decision-making/changing, etc. ( a la PRODML )

39. © Copyright 2006 POSC Challenge Theme #2 Alt. 4 MOVE DATA FROM WELLSITE TO “OFFICE” MONITOR, ANALYZE, SIMULATE, ETC. DRILLINGWITSML today PRODUCTIONLeft to existing solutions by PRODML WG Addressed by PRODML WG

40. © Copyright 2006 POSC Challenge Theme #2 Alt. 4 MOVE DATA FROM WELLSITE TO “OFFICE” MONITOR, ANALYZE, SIMULATE, ETC. DRILLINGWITSML today Is there a future here for WITSML? PRODUCTIONLeft to existing solutions by PRODML WG Addressed by PRODML WG (data and data WS) (app WS)

41. © Copyright 2006 POSC Challenge Themes Recommendations requested for discussion as joint sessions on Wednesday And for consideration by the Steering Committee at their meeting on Wednesday

42. © Copyright 2006 POSC SIG Meetings, October 17 Agenda –9:00 Registration –9:30 Early Technical Team Meeting Team Chair: John Shields, Baker Hughes POSC Facilitator: Gary Masters, POSC –12:00 Lunch and Registration –13:00 Opening General Session Welcome and Introductions Challenge Themes Team Reports on Plans for These Meetings General Interest Issues –Statoil Work on Work Processes / Use Cases, Frode Lande

43. © Copyright 2006 POSC SIG Meetings, October 17 Agenda –9:00 Registration –9:30 Early Technical Team Meeting Team Chair: John Shields, Baker Hughes POSC Facilitator: Gary Masters, POSC –12:00 Lunch and Registration –13:00 Opening General Session Welcome and Introductions Challenge Themes Team Reports on Plans for These Meetings General Interest Issues – Statoil Work on Work Processes / Use Cases, Frode Lande

44. © Copyright 2006 POSC Automation Business Case Contents –Preface –Core business use case –Automation business use case Abbreviations –WS – a generic WITSML Server –WC – a generic WITSML Client Contributors –Statoil –Sense Intellifield

45. © Copyright 2006 POSC Core business use case Servers transfer data through firewalls to the Internet and again through firewalls to clients. –Problem: Differences in data content through different WSs prevent generic WCs from being used. –Proposal: For this business case, WSs use common earth model usable by WCs in a uniform way.

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47. Automation business use case Steps –Pre-operation. –Operation Start-up. –During the operation –After the operation finishes

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49. SIG Meetings, October 17 Agenda –14:45 Break –15:15 Afternoon Separate Working Sessions Technical Team –Current Issues –Plans for 2007 Implementation Support Team: David Johnson and Use Case & Requirements Team: Julian Pickering –Follow-up on Proposed “Challenge Themes” –Follow-up on Use Case Work »Use of PRODML-like Interaction Diagrams –17:00 Adjourn

50. © Copyright 2006 POSC SIG Meetings, October 18 Agenda –08:30 Registration and Breakfast –09:00 Morning Joint Session Discussion of Overall SIG Plans and Progress Discussion of Cross-Team Issues and Opportunities Other Subjects to-be-determined –Presentations and Discussion: Norway Daily Drilling Reporting Enhancement –10:00 Morning Break –10:30 Morning Separate Working Sessions Technical Team (continued) Implementation Support Team and Use Case & Requirements Team (continued)

51. © Copyright 2006 POSC SIG Meetings, October 18 Agenda –12:00 Lunch –13:00 Afternoon Separate Working Sessions Technical Teams Implementation Support Team and Use Case & Requirements Team –14:30 Afternoon Break –15:00 Afternoon Joint Session Team Reports on This Meeting’s Accomplishments Summary of Plans Questions and Answers (Participants and Guests) –17:00 Adjourn and Steering Committee Meeting (to 18:00)