1. The E&P Industry and the POSC Community David Archer President / CEO Regional SIG Seminar New Delhi, India 14 January 2005

2. Source: Downes & Mui, “Unleashing the Killer App”

3. Oil fields of the future: real-time oil and gas operations Onshore Facilities Decision Centers Offshore Facilities new capabilities – much more data; much more exposure Source: Peter Breunig (CVX)

4. The Vision: An integrated digital EP Business with processes sufficiently automated to enable people to achieve superior business performance. Source: Herb Yuan (Shell)

5. Smart Systems The basic approach of all “smart technology” is measure-model-control –measure system properties –model actual vs desired behaviour –derive required correction parameters (adaptive control) –implement control ∆ INTOPS Acquire Model Analyze Control Source: Shell INTOPS = Integrated Operations

6. Business Headquarters Capacity Planning Design [months/years] Operational Planning [months/years] Scheduling [days/months] Supervisory Control [minutes/hours] Regulatory Control [sec/minutes] Well & Surface facilities -Flow, pressure and temperature in wells and separator -Fuel injection to produce heat out of a boiler - SCADA systems for coordinating flow stations and pipelines -Gas distribution/optimization on a pipeline network -Monitoring wellheads, multiples and flow stations -Scheduling of injection/production plan and resources - Opening and closing wells or partial completions - Adjusting well operating parameters -Planning of injection/production plan and resources - Planning drilling and workover resources - Supply Chain Management & Market and customer demands -Asset life cycle and installed based maintenance or growth -Supply Chain Management & Market and customer demands Automation level Time-scale Fast cycle Slower cycle Source: Saputelli SPE 83978 Time Scales (10 6 range) INTOPS Acquire Model Analyze Control

7. The Problem? Theorem 1 : 50% of the problems in the world result from people using the same words with different meanings Theorem 2 : The other 50% of the problems results from people using different words with the same meaning Stan Kaplan, Risk Analysis, Vol. 17, No. 4, 1997

8. POSC: A short history Founders: BP, Chevron, Elf, Mobil, Texaco 1990 Epicentre published 1993, most recent update (v3.0) 2001 POSC/Caesar joint work 1995 Interoperability specifications 1996 Organizational change: Sponsor to Membership organization 1998 XML beginnings / seminars 1999 (MMS eReporting) Web Services pilot 2001 XML schema / modules 2002 SIGs reborn 2002 DSS SIG / E&P Catalogue 2002 New Name 2003 WITSML to POSC 2003 PIDX MOU 2003 IntOPS 2003 - 2004 NDR5 2004 POSC Caesar MOU 2004 (IIP) WITSML V1.3 2004 (Release Candidate)

9. Some facts Not-for-profit consortium Location: Houston, London Members: 50+ International membership Oil [9] Anadarko, BP, ChevronTexaco, CNPC, ExxonMobil, Hydro, ONGC, Pioneer, Shell, … Service / Software [22] Halliburton, Paradigm Geo., Schlumberger, … Government / Regulatory / Noncommercial [20] US DOE, US DOI, UK DTI, Norwegian NPD, …

10. Governance 11 Directors elected from Membership for 3 year terms Herb Yuan, Chairman (Shell) Stewart Robinson, Vice Chairman (UK DTI) David Archer, President / CEO (POSC) Peter Bernard (Landmark) Peter Breunig (ChevronTexaco) Steve Comstock (ExxonMobil) Tom Halbouty (Pioneer Natural Resources) Yogesh B. Sinha (ONGC) Ihab Toma (Schlumberger SIS) Morag Watson (BP) Eldad Weiss (Paradigm)

11. Board Economics Reservoir Engineering Expl Geology PetrophysicsPetroleum Engineering Drilling Engineering Production Geology Production Engineering Facilities Engineering Production OperationsGeophysics Drilling Operations Completion & Workover E&P Catalogue Standards XML exchange standards, design guidelines, profiles Data Store Solutions SIG IntOPS SIG Reference Data Standards Industry Dictionary Business Objects eRegulatory SIG Practical Well Log Standards WellHeader, WellPath, WellLog, LogGraphics, etc. NDR Meetings POSC Standards / SIGs

12. Standards … from a major operator’s point of view It is better to be common than to be the best We will get common before we get best Claim – Savings of $100 Million / year due to internal standardization

13. POSC Standards in Products StandardService Co./Product(s)Notes WITSML V1.2Baker Hughes/RigLinkImplementation Landmark/RightTime/OpenWireImplementation Schlumberger/InterActImplementation Sense IntellifieldImplementation PetrolinkImplementation SDC Geologix/GEOImplementation Knowledge Systems Inc.Implementation E&P CatalogueFlare Solutions/E&P Catalogue (Landmark/CDS) Implementation WellHeaderMLCDA, BGS, DEAL, DTI/UK RepositoryImplementation PPDM WellHeaderProfile WellPathMLPPDM Directional SurveyProfile WellLogMLOilwareImplementation ChemicalMLDTI/PON 15 Permitting, UKOOA EEMS Reporting Implementation

14. POSC Standards in Products StandardService Co./Product(s)Notes PWLS V1/V2BakerHughes/RECALLImplementation Paradigm/GeologReference Landmark/PetroBankReference PPDM V3.7Supported RP66Many GeoshareMany Epicentre V2/V3Landmark/OpenWorks, PetroBank, CDSReference Schlumberger/Finder, GeoFrame, SeabedReference CGG/PetrovisionImplementation InteroperabilityOpenSpirit Corp.Baseline Shared Earth ModelSchlumberger/GeoFrameBaseline Reference Value Standards Many

15. POSC Special Interest Groups In general, SIGs are User Communities focused on a standard, a work process, or some other common interest. Current SIGs: –Data Store Solutions (DSS) SIG –WITSML (Drilling) SIG –Integrated Operations (IntOPS) SIG –Practical Well Log Standards (PWLS) SIG –Geoshare SIG –eRegulatory SIG Characteristics: –Open to POSC members and non-members –Determines, publishes, and promotes consensus recommendations

16. POSC Standards & SIGs Std/SIGDSSWITSMLInt. Ops.PWLS eRegulatory Geoshare Data Exch - WITSML (drilling & arch.) - WITSML (other) Practical E&P - Ref Vals - Catalog - Well Log - Other Data Mgt - Epicentre - Geoshare App Interop

20. WITSML™ – WWW.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

21. Global acquisition & access of RT drilling data Depth based project data db Timebased drilling data db (Coming soon) RTS service Onshore Operational Centre Anywhere Home Office Source: Statoil

22. The Right Initial Players - clear focus BP & Statoil Baker, Halliburton, Schlumberger, 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 for commercially neutral custody, publication, promotion and evolution Some lessons learned / best practices

23. POSC Challenges Help deliver the vision of a digital EP Business Deliver data and real-time standards –expand the WITSML footprint – production data, –expand data types – seismic, models, engineering data ?,.. –increase clarity in delivery milestones and targets in coming years Facilitate implementation and take-up of EP standards –engage with operators and service companies Foster membership time commitment to SIGs (5-10%) Continue to increase visibility in industry - increase geographic reach Improve coordination between standard setting bodies Source: Herb Yuan (Shell)

24. David Archer President / CEO 24 Greenway Plaza Suite 1000-B Houston, TX 77046 +1 713 267-5142 phone +1 713 784-9219 fax archer@posc.org http://www.posc.org