1. The Wireless Digital Oil Field Lessons from the Field Duval Yeager AVP Product Marketing Redline Communications

2. Agenda Shell PDO Oman Case Study 5 biggest challenges in oil field wireless deployment Q & A Saeed Al Shidhani Head of IT projects Special Thanks to: Dr. Khamis Al-Busaidi Automation & Smart fields Manager Petroleum Development Oman LLC.

3. CustomerChallenge Case Study – PDO / Shell Oman Petroleum Development of Oman - Shell share 34% Coverage area of 45,000Km 2 Over 6,000 connection points. 45,000 Km 2 An area the Size of Switzerland Area: Capacity: Solution 52 Base Stations Over 13 Gbps total capacity. Area: Capacity: Petroleum Development Oman A Shell Oil JV Oman

4. SpectrumPower Case Study – PDO / Shell Oman Unlicensed 5.4 GHz limited with 1/4 th the power output of that allowed in USA: - 1 watt vs 4 watts EIRP. No power available. All communications equipment must be self-powered (solar). Location Parts of oil field are two full days travel from regional office. Required service and maintenance must be minimized. Petroleum Development Oman A Shell Oil JV Additional Challenges

5. Wireless Challenges in the Oil Field  Range & Capacity + Large areas – Many devices  Absolute Reliability & Safety + Reliability & safety under any condition.  Data Flow + Uplink-centric and dedicated access  Mobile Assets  Drilling rigs, Work-overs, Construction, etc.  Any Frequency + Different areas require different frequency

6. Base Station Towers Construction of towers is the #1 Capital Expenditure in the SmartField Network. Foundation $200K - $800K per Tower Tower Grounding Power Lighting

7. Frequency Range Comparison 600 MHz 3.5 GHz 90° Base Station Sector 20 MHz Channel - OLOS 2.4 GHz 5.8 GHz Lower frequencies offer better range.

8. 4G Remotes = Consumer * T-Mobile cost for complete 3G to LTE upgrade over next 2 years. Source T-Mobile Q2 2012 operating Results report ** Subsidy cost for mobile devices over 8-year lifetime of LTE network Source: CTIA Cost of remote radio is number one factor in mobile services business case. Replacing radio device is simple. Low or no penalty for radio failure. CostsPer OperationPer BTSPer Sub LTE System Upgrade*$4 billion$114,285$8 Mobile Device**$91 billion$2.6 million$175

9. Industrial Networks The environment is very harsh. Field devices are difficult to replace. Failed devices can cause large costs. Reliability usually is most important factor in equipment selection. * Calculated at $40 per barrel ItemProduction/dayCost/day Well Head1,000 Barrels$40,000* Drilling Rig100 Feet$40,000

10. A Difficult Environment -40 to 130º F : Operational Water/Dust : IP-67+ Corrosion: New Alloys No moving parts (fans, etc.) Lifecycle: 20+ Year MTBF UL/CSA Class-1 Div-2 Safe Manufacturer specs should all have lab certs.

11. Data Flow  Radios designed for Service Providers are designed for networks that are predominately DOWNLINK  Oil & Gas networks are predominately UPLINK ItemULDL~% of DOF Automation 32 Kbps 8 Kbps58% Video 8 Mbps 80 Kbps30% Corp Access 2 Mbps 8 Mbps5% Wi-Fi Devices 1 Mbps 8 Mbps5% Voice (VoIP) 23 Kbps 2%

12. Capacity Calculations  M2M (SCADA) data from automation (RTU/PLC) is constant, not “bursty” like Internet or email traffic.  M2M must be considered as a dedicated service.  Drilling Rigs have multiple IP services simultaneously, like the branch office of a large bank.  Capacity for these must be planned for in advance. RTU 32 Kbps ItemCIRPIR RTU32 Kbps Voice (VoIP)23 Kbps Video512 Kbps4 Mbps Corp Access2 Mbps8 Mbps Wi-Fi Devices1 Mbps8 Mbps 2 - 10 Mbps *CIR (Committed Information Rate) = Dedicated Data *PIR (Peak Information Rate) = Allowance for Bursty Data

13. M2M Capacity Example  The Marmul area in PDO is roughly 12 miles square or 144 miles 2 (373 Km 2 ).  Dedicated Data (CIR) is over 200 Mbps  Peak Data Rates (PIR) - or burst data is close to 1 Gbps. Marmul area PDO Oman. 1,300 well RTU at 128 Kbps 800 well video + Wi-Fi at 6 Mbps 4 drilling rigs at 10 Mbps Petroleum Development Oman A Shell Oil JV

14. Connected Rig Auto-acquiring Terrestrial Radios

15. Auto-Acquiring Radios – Not Mobile  Area of circle = πr 2 r=5 Mobile antenna requires 19 times more Base Stations for complete nomadic coverage Mobile antenna gain 5 Km range from Base Station ~78 Km area around Base Station 15 dBi antenna gain 20 Km range from Base Station ~1,257 Km area around Base Station r=20 400% range 10 1112 9 8 65 4 7 1 2 3 15 14 13 16 17 18 19 15 dBi antenna gain 20 Km range from Base Station ~1,257 Km area around Base Station r=20 400% range

16. Spectrum Non-Line of Sight Near-Line of Sight Line of Sight 200 700 900 1.9 2.4 2.5 3.5 5.2 – 5.8 10 30 60 80 Radio & TV Cell 3G Wi-Fi LTE WiMax Un-Lic Licensed Microwave unlic Sub-mm MHz MHz MHz GHz GHz GHz GHz GHz GHz GHz GHz GHz *Country dependent Unlicensed Bands* White Spaces

17. Spectrum Support <700 MHz White Spaces 900 MHz 1.7 GHz 2.4 GHz 2.5-2.7 GHz 3.3-3.7 GHz 4.4 GHz 4.9 GHz 5.2-5.8 GHz XXX XXX XXX XX XXX DOCSIS® Spread Spectrum

18. Network Performance DL MbpsUL MbpsRange miLatency msM2MSecurityQoSIPRugged 90 0.5<10NoAESNoYes 10012350NoAESSFNo 446160NoAESSFNo 142530NoNone DOCSIS No 33540YesNoneNo Yes DOCSIS® Spread Spectrum Comparing 20 MHz radio channel at 2.x GHz frequency

19. PDO Results 2011 became the third highest production year in PDO history with a total of 1,026,000 barrels of oil equivalent per day. 2012 the second highest with 1,168,805 boepd. Drilling time reduced from 39 days to 14 days bringing wells online quicker and reducing the per-well cost by $5 million. 36 times more data is collected, allowing more accurate and faster decisions. “Increased collaboration has allowed for better safety and improved workflow.” — Saeed Al Shidhani, Head of IT projects, PDO Petroleum Development Oman A Shell Oil JV

20. Conclusions Range and capacity of the wireless system should be your number one concern for CAPEX reduction. Reliability is key to OPEX reduction. – Wi-Fi and LTE: YES – Consumer grade Wi-Fi and LTE: NO! Know your data flow! – Industrial M2M data IS DIFFERENT than Internet & email traffic! Roaming Assets can be a headache. – Solve this application early on. Find your global spectrum/technology – Try to avoid mixing technologies if possible.

21. Thank You Duval Yeager dyeager@rdlcom.com +1-786-537-9637 Questions?