Overview / Road Map / Approach

1. Overview / Road Map / Approach PRODML Background PRODML Opportunity Scope, Strategy and Road Map Other relevant industry activities SPE Realtime Optimization TIG SPE IT Section PRODML Process Use Cases Solution Development

2. PRODML Background – New Millenium • Boom in highly instrumented fields. Energy companies keen to exploit opportunity for better use of near real-time data in optimal operation of assets. (aka “Digital Oilfield” etc.) • Current landscape fragmented – multiple commercial and in-house tools • Efficient means of interoperability between these tools is essential for more efficient workflows

3. PRODML Background PRODML – Work Group ‘06 and ‘07 Participants An initiative started in 2005 by five energy companies, then joined by eight vendor companies and an industry-neutral standards organization.

4. PRODML: Business Drivers • The Opportunity: • Production application domain highly fragmented • Doing nothing requires point to point integration: costly, slow, very high maintenance  Opportunity to fix this! • The Objective: • Make integration cheaper, faster, simpler • Enable dynamic creation of “value loops” with new workflows and applications added “on the fly” • Supply chain models “standards” and “consolidation” • SCADA – many vendors, public standards • G&G/Reservoir – few vendors, de facto standards • Production – industry standards approach PRODML

5. High Frequency Low Frequency Sensor Data Geoscience Data SCADA Systems Reservoir Models OPC Domain De facto Standards Application A Application B Application C Application etc. PRODML Domain Drilling Systems Maintenance Systems WITSML Domain Maintenance Domain PRODML: Addresses Key Area of Asset Management Business Processes After Chevron, ExxonMobil 30 2006 PRODML Initial Scope 2010 2008 Many Production Applications THE SOLUTION PRODML Open Standards THE PROBLEM Multiple Component Solutions Lack of Interoperability standards

6. PRODML Focus: Production OptimizationRoadmap in place: 3 more years to industry standard PRODML Focus Timeline: Daily Surveillance and Reporting Timeline: Weekly Production Management Timeline: Field Optimisation Timeline: Field Development Planning Business Processes Low Frequency High Frequency 30

7. Scope of PRODML Applications • Operational Modeling • Predictive algorithms to predict future measurements from historical measurements and operational plans • Allocation and Reconciliation • Derives critical values from measurements, as in back-allocation of volumes to wellbores • Surveillance and Monitoring • Continuous comparison of actual to predicted measurements; out of range condition invokes analysis • Simulation and Optimization • Predictive algorithms to predict future measurements and related set points that achieve pre-defined objectives • Advisory and Alert • Invoked when post-analytical predicted and actual performance differ significantly; alerts for remedial control changes

8. PRODML Data Scope • Production Systems in Producing Fields consist of • Flow Network topology (Product Flow Model) • Production and injection wells, equipment, etc. • Static Model of Flow connections: outlet to inlet • Measurements (Product Volume) • Production volumes and flow rates • Pressures, temperatures, etc. • Test results (Well Test) • Captures the results of a well test

9. PRODML – Material Progress 2007-08 • A common language for production data has been created • Commercial application has commenced, eg: • Production Reporting (Statoil) • Waterflood management (Chevron) • DTS data management (Weatherford) • First Commercial Applications (Schlumberger) • R&D Proofs of Concept have been substantial: • Gas Lift Optimisation • Downhole sensors • 5,000 well dataset transfers • Network Model changes moving between applications

10. PRODML Public Site

11. Documentation Overview

12. Workflow Analysis and Use Case Development

13. Workflow Analysis and Integration – Relevant Activities 4/15/2008

14. IT Perspective Workflow Analysis – Generic Process Identify Opportunities Select Opportunities to Pursue Develop Solution Develop List of Ideas Document Flow Improvement Opportunity Develop Specifications Build Solution Develop Use Case Develop Model (Detailed Data Flow & Application Interactions) Develop Flow Diagram Quantify Business Value Optional Steps shown in Dashed Boxes SPE RTO TIG Business Perspective PRODML SPE IT OI

15. Workflow Analysis and Integration – PRODML Process IT Perspective Strategy Scope Inventory of Opportunities Stage 1 Stage 2 Stage 3 Stage 4 Use Case Flow Diagram Modeling Detailed Data Flow & Application Interactions Solution Development Business Perspective 4/15/2008

16. Workflow Analysis and Integration – PRODML Process and Deliverables Strategy Scope Inventory of Opportunities • Pilot Project List Stage 1 Stage 2 Stage 3 Stage 4 Use Case Flow Diagram Modeling Detailed Data Flow & Application Interactions Solution Development Verbal Description of Process Graphical Representation of Workflow Paper-based Solution (XML transactions) Application Build / Test and Deploy Plans • Use Case Description (.doc) • Flow Description • Animated flow Diagram (.ppt) • Process and Data Definition (.xls) and XML flow (.txt) • Code Development • System Integration & Testing • Deployment 4/15/2008

17. PRODML Solutions BP – Optimized gas lift (model management) Chevron – Field wide water management Shell – Distributed Temperature Sensing