Chevron PRODML Pilot Activities

1. Chevron PRODML Pilot Activities Vendor Participants: Invensys Weatherford Tibco Halliburton Matrikon Euriware Energy Components

2. Background • Chevron’s pilots have a few common characteristics: • Using a large brownfield waterflood field as a basis • Concentrating on water handling • Providing a number of vendor opportunities • Developing in-house capability • Expanding in scope over time

3. Background (cont…) • 2006: Compared Field vs Facility forecasts and notified operator. Stress tested the standard with multiple 700 well data calls in a single process model • 2007: Combined multiple elements – forecasting, real time capacity management, field network optimization and cross-functional visualization • 2008: • A: Continue to refine pilot to plug and play pieces (8) that are “fit for purpose” • B: Testing new WG07 functionality (SAM-Shared Asset Model, extensibility) • C: Working with other PRODML members on NOJV reporting • D: Preparing to test the use of WITSML data for well modeling

4. Characteristics of a Workflow • A workflow … • should systematically organize components; • should define roles, for operator personnel, for vendors and for automated systems; • must have endpoints that effectively define the purpose of the process; • needs defined information exchanges (such as those defined as part of the PRODML Standards); • needs visibility of information flow; • … and looking ahead to results, a workflow: • leads to achievable results; • has a process that can be documented and learned; • enables measurement of results.

5. End to end workflows are complicated

6. We chose water management so we could prepare definable process blocks

7. Typical setup – Note how we can separate IT and Tech activities

8. Chevron Pilot - 2006 3 3 2 1 8 10 2a 7a 2b 7 1 10 7b 8 Model: 7 day production forecast Model: Maintenance forecast Trigger: Clock set for once a day Model: 7 day tank forecast GetFromStore: Get tank data (7 days) GetFromStore: Well allocated production (x days) 4 4a 4b AddToStore: Pass tank forecast 5a 14 13 14 5b 11 13 5 11 12 12b 12a AddtoStore: Alarm to notification Future: Check well test before shut in order Model: Well vs Facility Qw in Future; Add to tank forecast AddToStore: Consolidate data 9a 15 6a 6 6b 9 9b 15 Same as 9a/b GetFromStore: well status forecast GetFromStore: Well forecasts Invensys Notification Data Integrator Invensys InFusion Tank Forecast Halliburton DSS Well Production Forecast Weatherford LOWIS Well Status Forecast Energy Components Daily Allocation / Status / Well Listing Invensys Facility SCADA History Local System Field Gas Sales History Local System (SS) Field Oil Sales / Inventory History Weatherford Well Test History Weatherford Status History

9. Chevron Pilot - 2007

10. 2008 – Meet Workflow CriteriaPlug & Play / Intersecting Workflows Touch point – Reservoir management sets targets E’ Injection Targets Test Shared Asset Model – Network changes A Pre- Processor B Forecast C RT Tank Level Mngt D Well Changes E Source Wtr Needs F Network Opt. G Except. Report H X-F(x) Visual B’ Alternate Model G’ Well Model B” Alternate Model Test WITSML Data acquisition – Automate well model building Fit for purpose – forecast accuracy meets need of next step

11. 2008 – NOJV Reporting A Opportunity Assessment B C D E • Organize interested parties • Prepare project plan • Given: use North Sea example as guide • Get internal input vs guide