Schlumberger and AspenTech have combined their expertise to deliver a new capability into Upstream

1. Schlumberger and AspenTech have combined their expertise to deliver a new capability into Upstream • Schlumberger and AspenTech have formed an alliance to help E&P companies accelerate the deployment of field-wide modeling and optimization solutions • The alliance brings together the resources of both companies to deliver the promise of true reservoir to surface facility integration and closed-loop optimization • The alliance aims to bring about a step change in the adoption of modeling and optimization solutions, enabling our clients to make informed, real-time business decisions that enhance the financial performance of their producing assets, • Increase Production 5-7% • Improve Reserves Recovery 2% • Lower O&M Costs 5% • We combine all the necessary capabilities under a single project team to simplify the implementation of optimization solutions • Modeling & Optimization • Software Products • - Data Management • - System Integration • - Project Management • - Training & Consulting Services • - Maintenance & Support • - 3rd Party Technology Partners

2. Many modeling initiatives are underway in the industry, with the common goal of value enhancement and efficiency improvements…

3. … however, some Upstream companies remain cautious about changing their field operations Implementation hurdles • Lack of a rigorous business case to quantify benefits. Each asset is unique with its own set of business drivers • Concerns on the degree of effort needed to redesign operational processes and train personnel • Ownership of the data is shared across many departments, resulting in poor quality data or missing data • No consistent standards for data exchange between the different software and modeling packages • Limited number of people that understand the different technology and operational domains • Organizational structure and funding does not encourage an integrated or holistic approach to modeling and optimization. Focus on cost reduction and point solutions ? • Base Case • Investment • Operating • Costs • Production Increase • Increased Recovery • Optimization • Case

4. The alliance has identified nine areas with significant modeling enablement potential Production Optimization Provide real-time guidance to operations personnel on improving current production and costs Daily Operations Management Optimal settings to maximize daily production Flow Assurance Dynamic envelope to mitigate operational risk Flaring and Emissions Minimize waste and avoid penalties Lift Gas Allocation Maximize production within compression limits Outage Response Contingency planning for downtime Optimal Plant Operations Provide real-time advice to aid operations planning Field Planning Long term optimization of field exploitation Contract Management On-going management of gas contractsto minimize delivery penalties Field Development Planning Optimize capital expenditure for all drilling and facilities investment Planning and Scheduling Scheduling routine maintenance activities Production Monitoring & Surveillance Acquire and validate field, well, gathering and facility real-time data – provide reporting, historical trending and alarms

5. Daily operations management depends on manual intervention between departments, resulting in inefficiencies and high interaction costs Operator: Are all the ESP’s running? Is the compressor fouling? What are the choke and valve setting? What are the injection rates? Are the gauges calibrated? How much can I flare? Is the storage tank approaching capacity? Asset Manager: How does my production compare to plan? Where are my losses? Am I on target against emission and flaring quotas? Reservoir Engineer: What are the limits on production? How do I avoid sanding? What are my water injection problems? What wells should we test? What is the production forecast? Production Engineer: How do I meet my delivery target today? What are my problem wells? Where are my maintenance crews? What is my production potential, how do I achieve this? Pipeline Engineer: How can I avoid slugging problems? What do I need to inject for corrosion, hydrates, etc? Where are my bottlenecks? Which pipelines can we pig? Process Engineer: Are the separators running efficiently? Where are the operating envelopes for the compressors? Do we need hydrate or waxing inhibition? What’s the export specification?

6. The alliance solution delivers field-wide models integrated with decision making tools, operational workflows and field data Operator: Operator has access to real time and historical data for wells, pipeline and process facilities. Responds to alarms and outages, implements set point recommendations and validates effect of optimization activities Asset Manager: Monitoring field-wide performance, analyzing daily and cumulative reports Reservoir Engineer: Results from well models showing actual drawdown vs limits, plots of cumulative reservoir production and injection, comparisons against forecasts Process Engineer: Results from process simulation models show operating points within performance envelopes. Run look-ahead scenarios from current operations to identify and act on potential bottlenecks. Results fed-back into process control system Production Engineer: Daily operations planning model automatically updated with latest field data. Well performance model calibrated with measured well test data. Constraints analyzed and new set-points assigned to chokes, injection valves, pumps and compressors. Pipeline Engineer: Results from real time pipeline model show multi phase flow behavior, thermal performance, and flow assurance parameters within performance envelope. Runs look-ahead scenarios and acts on potential bottlenecks

7. An architecture framework offers a role based, single point of interaction, to streamline business processes across functional silos At the risk of heading down an SI path, we could develop detail on the solution architecture. Integration of data, applications, users, and operational processes. Above is an example from a different sector. Do we place emphasis on the SI component, or modeling and optimization studies???

8. An initial assessment identifies areas for improvement, develops the business case, and confirms the scope of change programs Collaborative engagement involving Client + Slb + AspenTech domain experts Focus for assessment is building the business case for change Structured interviews or workshops with senior executives to understand business context and priorities Determine present cost base and performance metrics Identify business-operations gaps and determine improvement opportunities and solutions Prioritize and select projects according to value impact on the business. Benefits quantified and expressed as, Accelerating recovery Reducing operating and facility costs Extending field life Business Case Dependencies and Risk Register Change Roadmap, Migration Strategy Technology Roadmap Gap Analysis, Maturity Model Performance Management, Goals and KPI’s Vision, Objectives, Strategy • Guiding Principles • Solution Implementation Roadmap • Example Deliverables Alignment Workshop Assessment Interviews Gap Analysis Prioritize Projects Workshop Business Case Final Review Handover Delivery Teams Kick Off

9. The output of the assessment is a solution implementation roadmap (SIR) to serve as the foundation for launching each optimization initiative Value Proposition Service Lines Value proposition should be from the perspective of the asset….. Proven methodology for quantifying the business benefit and implementing optimization solutions Methodology is tailored to suite a diverse range of asset types and production technologies Daily Operations Management Flow Assurance Flaring and Emission Outage Response Gas Lift Optimization Need representative estimates, update Value proposition, to reflect benefit to the asset manager for the initiative(s) Project Finances Estimates Project Schedule Weeks 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Capital requirement $100,000 Internal labor $250,000 Contract labor $300,000 3-yrs Maintenance & Support $ 75,000 $725,000 Projected benefits 3-yr Cost Avoidance $2,750,000 3-yr ROI 37.5% Data Gathering Data Validation Well Models Gathering System Models Process Models Optimization Study Integration & Testing Performance Monitoring Training

10. Solution delivery methodology combines client and alliance resources into a single project team • Guiding Principles • Solution Delivery Framework Client Requirements RFP SIR Engagement • SI development lifecycle, driven by scope and client environment • Stagewise, Waterfall, V-Model, Spiral, Agile/RAD, etc • Risk must be the final arbiter in deciding project approach and effort on activities • Single design authority responsible for developing • System architecture, interface specification • Functional specification • Test strategy, acceptance and training plan • Implementation and transition plan • Delivery quality plan • Flexible contracting model, with preference for balanced scorecard to determine risk/reward remuneration linked to project objectives Design Authority Program Management Review and Analysis Sub System Configuration Change Management Model Development Sub System Acceptance Workflow Redesign Model Validation Site Tests Training Optimization Study End to End Tests Benefit Realization Performance Monitoring • System Integration • Hardware • Software • Network, SCADA Modeling and Optimization Transition Operations

11. The alliance brings a unique set of skills and experiences to help clients capture the value potential of field wide optimization projects Combined resources available for alliance projects Headcount figures not accurate       Solution Centers Product Development Modeling COE … …     

12. Experience and capabilities Regional Specialists Yan Sun Fausto Caretta Peter Blom Rong Xu • Senior petroleum engineer with 21 years experience in reservoir engineering, production engineering, well stimulation and well design • Provides specialist support in the region for the PIPESIM suite of products • Petroleum Engineering Degrees from University of Oklahoma and China • Over 15 years experience in operations and production engineering, formerly with Maxus and YPF • Specialist in production optimization and production management techniques • Holds a Mechanical Engineering Degree from Instituto Tecnológico de Buenos Aires, Argentina • 20 years experience in oil and gas production • Senior process and project engineer, involved in major engineering projects with global clients • Holds a Chemical Engineering Degree from Heerlen, Netherlands • Provides specialized support for reservoir software, simulators, and production software • Holds a Petroleum Engineering Doctorate from Baton Rouge, Louisiana, Petroleum Engineering Masters and Reservoir Engineering Bachelors from University of Petroleum, China Joe Smith Joe Smith Joe Smith Joe Smith • Global Leader of Strategy, Process and Transformation practice • Partners with executives to address strategy, organization and people issues • Recognized leader in business integration and transformation • Holds an MBA from Northwestern University’s Kellogg School of Management • Global Leader of Strategy, Process and Transformation practice • Partners with executives to address strategy, organization and people issues • Recognized leader in business integration and transformation • Holds an MBA from Northwestern University’s Kellogg School of Management • Global Leader of Strategy, Process and Transformation practice • Partners with executives to address strategy, organization and people issues • Recognized leader in business integration and transformation • Holds an MBA from Northwestern University’s Kellogg School of Management • Global Leader of Strategy, Process and Transformation practice • Partners with executives to address strategy, organization and people issues • Recognized leader in business integration and transformation • Holds an MBA from Northwestern University’s Kellogg School of Management

13. Joint R&D roadmap – current state Decision Point Command Center Digital Oil Field - Dashboard Aspen Enterprise Platform Aspen Performance Scorecard Performance Scorecard Living Business Plan Portfolio Management Petrovantage Scheduling Orion FieldBA / PARs Accounting / Contract Analysis Aspen Capable-To-Promise Economic Analysis Merak Suite - PEEP Icarus Advanced Process Control DMCPlus / SmartStep / Apollo Optimization HYSYS RTO Supply Chain Engine Forecasting Field Planning Tool MIMI PIMS Surveillance ProdMan HYSYS Dynamics Simulation Eclipse Pipesim PipesimNET HYSYS Upstream Aspen Blend / Retail RefSYS 4D Seismic Field VIew Command Center Data Visualization Web 21 Data Analysis GeoFrame Smart Earth Aspen Online OFM Data Validation IP21/AspenCalc Finder Data Storage Real Time Data Acquisition Distribution Refinery Facilities Retail Reservoir Single Well Single pipeline Transmission Gathering network

14. New capabilities introduced with HYSYS and PIPESIM integration Need help from Kunal to complete…

15. Over the next five years the industry will…..(thought leadership slide) Assets without a model Field Wide Dynamic Models Relative Percentage of Modeling Projects Pilots and Proof of Concept Projects Look ahead five years and predict new functionality and capabilities, mindful of Moore’s Law, major IT trends, etc. Y axis could be changed to reflect ‘size’ of models…

16. Partner network

17. Customer success stories Update with references

18. Accelerating digital oilfield initiatives While reducing implementation risks… • Diverse, highly-qualified workforce, with unique domain expertise in the industry that spans reservoir, gathering network, surface facilities, production technologies & field operations • Long term commitment to delivering post implementation support and training • Ability to leverage simulation and process control expertise from Downstream • Global knowledge sharing and re-sourcing culture necessary for wide scale deployment projects • Proven delivery and project management capability in Upstream • QHSE commitment and investment across all levels of the organization • Trusted relationships with Upstream clients and technology partners Visualization & Modeling identified by CERA multi-client study as one of the key enabling technologies for the Digital Oilfield of the Future, potentially with the best risk-return ratio. Note the portfolio of investments depicted below is dependent on asset type and maturity Source: CERA Digital Oil Field of the Future Technologies