2. Wellsite Information Transfer Standard Markup Language (WITSML), An Introduction and Update Alan Doniger, POSC April 2005

3. WITSML™ – WWW.WITSML.ORGWWW.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

4. WITSML started as a collaborative effort to update the widely used WITS standard for moving drilling data between rig and office based computer systems WITSML is designed for the standards of today's “always on” Internet environment while still accommodating those rigs not yet “Wired” WITSML is published and available to all to implement Real world use of WITSML is happening NOW The scope of practical usage is being extended based on practical experience and pragmatic needs

5. The Drilling Environment Directional & Horizontal Drilling Systems Fluids Systems Surface Logging Logging While Drilling Coring Surveying Drilling Data Providers Rig Instrumentation Source: BakerHughes

6. Integration Value Hierarchy Data Practices Hardware Higher Lower Higher Value Complexity Low Integration & Automation Work Practices Data Entry, Q.C., Retrieval Tools Data Entry, Q.C., Retrieval Tools Higher Foundation Technologies Standard Desktop and Engineering Tools Data Management Easily find and use accurate data Work Flow Integration More time doing engineering tasks less on tasks that can be automated Higher Lower Higher Value Complexity Low Data Practices Applications Data Model Based on ExxonMobil slide, June ‘04 Impact Area for WITSML

7. BP Vision Automation of many manual processes in current Drilling Data workflows –Contractors (Service and Drilling) automatically push data into our corporate data stores –Partners can automatically pull data (Not images) for morning reports into their data stores –Operators can push statutory reporting data for statutory reports –Contractors can share data with one another at the rigsite A single standard to make the vision possible, reducing industry costs Based on BP slide, June ‘04

8. Drilling Issues Maximize well productivity Minimise formation damage Avoid pressure problems Steer the drill bit Find and stay within hydrocarbon zone Requires a combination of different measurements from different companies and collaboration between different disciplines (Drilling, Geology, Reservoir) Based on BakerHughes slide, June ‘04

9. The POSC WITSML™ Special Interest Group (SIG) The WITSML SIG is the formal user community for the WITSML standards. –Membership is open to all (POSC members and non-member alike) –Membership grew in ’04 from 17 to 31; now 35 –The SIG recognizes requirements and needs –The SIG is the first line of review of new and updated specifications –The SIG helps promote vendor take-up and operator deployment

10. WITSML SIG Area of Interest –the definition, movement, and storage of drilling data, information, and knowledge, especially the “right time” seamless flow of well site data between operators and service companies to speed and enhance decision-making. –This group is essentially a cross-vendor, cross-product line user community for drilling applications and data storage products and services. Players –operators, service and software providers, government agencies, consultancies, and POSC.

12. Sample WITSML Data Flow API server (InterACT) Office(s) Wellsite(s) Source: Schlumberger

13. Special Interest Group Participants Operators Statoil BP Shell ExxonMobil ChevronTexaco Pioneer Nat. Res. Hydro ONGC Total Regulators UK DTI US DOI Service/Software Suppliers Baker Hughes Landmark/Halliburton/Sperry Schlumberger Sense Technology SDC Geologix Petrolink INT Paradigm UPEG Pason Weatherford OpenSpirit POSC special interest groups are open to all interested parties. Service/Software Suppliers HRH Geological Services Smith Technologies IFP Interaction US Synthetic Knowledge Systems AspenTech Roxar Key Energy Services Seismic Micro Technology M/D Totco Geoservices

14. Real-time drilling Alarms Raw Data Archive FilterTransform WITSML Technical Database Environment Service company Technical Application Environment RIG or OFFICE Source: Landmark Right-time Data

15. Benefits Improved “plug and play” for moving data between “systems” Operators: reduce cost, improve vendor competitiveness Contractors: reduce need to support different systems for different operators (Near) real-time, sequential data, but also contextual data

16. A WITSML Time Line 1980’s – WITS used by Amoco, Chevron and Mobil, point-to-point serial transfers, binary and ASCII formats, became obsolete by late 90’s 2000 – Statoil and BP agree to begin WITSML for Drilling; bring in three major service companies; evolved from Statoil DART (Java, CORBA) 2001 – Funded project; Version 1.0 specifications and first public seminar 2002 – Early deployment; Version 1.1 specifications; First commercial products; Agreement to transfer standard to POSC 2003 – Version 1.2 specifications; Transfer to POSC; Special Interest Group from 6 to 17; Version 1.1 commercial products; SPE paper 2004 – POSC commitment to expanding WITSML to Production Operations, Regulatory, and All Data Transfer Uses; US ePermit Collaboration evolves; Stage One begins; Special Interest Group from 17 to 31; Version 1.2 commercial products; 2005 - Version 1.3 release

17. RigLink & WITSML Wellsite data to RigLink/WITSML Server Real time via subscription Batch via file transfer etc. WITSML API calls from 3 rd Party systems Source: Baker Hughes

18. Bottom Hole Assembly Run Capabilities Cement Job Conventional Core Fluids Report Formation Marker Log, Well Log (transition) Message Mud Log (updated) Operations Report Real Time (updated) Rig / Rig Equipment Server Capabilities Sidewall Core Subscription Survey Program Target Trajectory & Trajectory Station (updated) Tubular / Bit Record / Open Hole Well Wellbore (update) Wellbore Geometry Risk (new) Completion / Well Mechanical (draft) Regulatory Permitting and Reporting (draft) Production Volumes (draft) Data Objects: Original, New, Updated, Draft

19. WITSML Server API SOAP Interfaces defined in WSDL Store Interface –GetFromStore() –AddToStore() –UpdateInStore() –DeleteFromStore() Publish/Subscribe Interface –Subscribe() Both Interfaces –GetVersion() –GetCapability()

20. SiteCom Overview To next level, corporate data mgmt System OpenWire Source: Sense Intellifield

21. Internet standards driven / Hardware & software platform independent XML (eXtensible Markup Language) & xsd, (XML schema definition) WITSML Server Application Programming Interface (API) XML Specification of data objects A formal and validated “Dictionary” and “Grammar” World Wide Web-compatible / Web services HTTP, SOAP & WSDL, XML Broad coverage of mainly drilling related data Well, trajectory, drill string, wellbore, reports, logs, real time data Designed to support drilling workflows, with or without network links WITSML Server Behavior Profiles Data Transfer, Data Management, Data Archive Technologies

22. Web Services HTTP POST an XML File Receive: XML File Web Server Client BHI $36.13 Using XML to communicate between computer systems Source: Baker Hughes

23. A Service Company’s View Open development environment –industry co-operation at it’s best Operators driving internal work process improvements with take-up of WITSML Enhanced vendor independence Technology being implemented to improve internal service company technology and processes

24. CURRENT RELEASES Version 1.2 Released in early 2003 Version 1.3 Released in March 2005 FUTURE PLANS Version 1.3 Clarifications (published as identified) Version 1.3.1 (release ~ late 2005) SIG Meetings and Public Seminar, Houston, May 10-12 EXPANSION AND INTEGRATION During 2004, existing and new POSC data transfer standards were adapted as part of a broader based family of standards based on WITSML’s technical architecture and characteristics WellPathML  well, wellbore, trajectory and trajectoryStation, WellLogML  wellLog, WellSchematicML  completion, ProductionML  production What’s Happening and What’s Next?

25. May 10-12 Meetings Technical Teams –Address feedback and deferred issues Use Case and Requirements Team –Address possible future areas of focus: drilling reports, completions, environmental, well services, well stimulation, service rig reporting. Implementation Support Team –First meeting. Intended for those supporting WITSML-enabled environments to share lessons learned and current issues and challenges. Public Seminar –Current reports from actual experiences and plans from oil companies, service companies, and software companies.

26. Version 1.3 Highlights

27. WITSML Version 1.3 Highlights General –Data object (schema) and Server (API) specifications are now independent and will evolve separately –Server behavior profiles defined: Data Transfer, Data Management, and Data Archive –Many small corrections and enhancements based on usage feedback

28. WITSML Version 1.3 Highlights Improvements –Consistency: realtime and log objects –Tighter constraints on individual values –Mud log upgrades to handle time logs –Log enhanced to handle array data and multiple passes wellLog will replace WellLogML

29. WITSML Version 1.3 Highlights Additions –Composite object schema –New measure types with enumerated Unit of Measure values –Well datum capability –New risk object –Well Path (planned, measured, calculated)

30. Extending WITSML WITSML’s original mandate for wellsite to operator (contextual and real-time) data transfers can be reused for many E&P data exchange work flows –to partners, to labs, and more –All using a common architecture, common terminology, maximal commercial product and service incentive, etc.

31. Extended WITSML and the POSC Special Interest Groups WITSML Special Interest Group – (1) Drilling uses (2) Overall architecture IntOPS Special Interest Group – (1) Production Operations uses eRegulatory Special Interest Group - (1) Regulatory (Permitting and Reporting) data transfer uses Practical Well Log Standards Special Interest Group – (1) Well Log data transfer uses – wireline and LWD Data Store Solutions Special Interest Group – (1) Reference, Geoscience, Engineering, Partner, and other data transfer uses

32. Why has the WITSML initiative been successful? Some lessons learned / best practices The Right Initial Players - clear focus BP & Statoil with Baker, Halliburton, Schlumberger, and 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 in early ’03 -- commercially neutral custody, publication, promotion and evolution

33. What we must do in the future? Maintain enthusiasm for the vision Continue to involve interested and committed, knowledgeable people Address use cases that add real (quantifiable to management) value Keep the spirit of trust and cooperation between competitors Have oil companies supply chain management provide contractual re-enforcement Increase cooperation among different domains to minimize duplication working with similar types of data and to maximize re-use of work already done Based on BP slide, June ‘04

34. Alan Doniger, POSC Chief Technology Officer Email: Doniger@POSC.org Phone: +1 713 267-5124 Fax: +1 713 784-9219 http://www.posc.org and http://www.witsml.org http://www.posc.orghttp://www.witsml.org

35. History

36. –1980’s WITS real-time binary formats defined –1990’s as Internet and related technologies became available, new solutions emerged – but separately Statoil developed Drilling Automation Real Time (DART) –2001 DART evolved into the multi-company WITSML effort by BP and Statoil with BakerHughes, Halliburton, and Schlumberger –2002 Version 1.1 completed Public Seminar and SIG Meetings in Stavanger

37. History –2003 Version 1.2 completed WITSML transfer for custody and evolution to POSC Public seminar and SIG meetings in Aberdeen and Houston –2004 Version 1.3 completed POSC announced extension of the WITSML architecture to support all POSC data exchange standards. Public seminar and SIG meetings in Calgary and Paris Regional SIG meetings in Stavanger and Houston

38. Special Interest Group

39. SIG Organization –Steering Committee –Technical Teams Drilling data transfer content Overall architecture / infrastructure –Use Case and Requirements Team Future planning and requirements determination –Implementation Support Team New in ‘05

40. WITSML SIG What’s Next? –Promote use –Continued support and evolution –Create new Implementation Support group –Expand scope Completions Production Operations Fluid Properties Well Services (Workover Rigs)

41. Recent News

42. 5 th Public Seminar and SIG Working Meetings Held in Europe Venue: IFP, Paris, France Dates: Seminar, Nov. 4; Working Meetings Nov. 2-3 Oil Co. Presenters: BP, ChevronTexaco, Statoil, ExxonMobil Regulator: UK Service Co.: Schlumberger, Baker Hughes, Sense Intellifield, Paradigm, Geologix, Smith, US Synthetic, KSI, and Aspentech SIG updates on current and future work efforts. Next: May 10-12, Houston, Texas USA hosted by ChevronTexaco

43. WITSML SIG Membership Tops 30 Organizations The number of service and operator organizations making use of the WITSML Standards continue to grow. More have joined as SIG members. The SIG began ’04 with 17 members and ends ’05 with 31 members. Recent additions to the SIG include Total, US Department of the Interior, HRH Geological Services, Smith Technologies, IFP, Interaction, US Synthetic, Knowledge Systems, Aspentech. And Roxar, Key Energy Services, and M/D Totco

44. Mud Log Sub-Team’s Work Evolves Into Formal Change Requests In Sep. ’03, it was agreed to review and enhance the mud log data specifications of WITSML. A sub-team, led by ExxonMobil, worked throughout ’04 leading to a set of change requests integrated into WITSML Version 1.3. ExxonMobil is leading a pilot project to test the mud logging work flow. Other organizations are invited to joint his pilot test or to organize tests of their own.

45. Version 1.3 On-Track for Year-End Release The previous release of the WITSML Standards was made in early ’03 as Version 1.2. In the fall of ’03, we set a target to release an enhancement version by year-end ’04. A list of issues was managed throughout the year. Individual issues were resolved as clarifications, minor fixes, or larger issues. By the fall WITSML meetings in Nov. ’04, almost all pending issues were resolved. The final review period for the SIG and the public will close at the end of Jan. ’05. After post-review issue resolution, Version 1.3 was finalized and published in mid-March ’05.

46. Well Path and Well Log Data Transfer Standards In early ’04, POSC stated the policy of integrating all data exchange standards in an extended family of WITSML Standards. One area of enhancement provides support for wellbore paths and trajectories – planned and actual – measurements and calculated results. A second area of enhancement extends support for well log data to include wireline as well as LWD.

47. Use Case and Requirements Team Looks to the Future At the WITSML meetings in Paris in Nov. 04, the following were identified as candidate future subjects. –Daily Drilling Reporting (BP, ChevronTexaco, and Hydro expressed interest) –Completions and Well Mechanical (ChevronTexaco has used a draft version of this; Statoil, ExxonMobil, and Hydro are interested) –HSE Reporting –Operational Data Reporting to ERP Systems –Distributed Temperature Surveys (underway as an IntOPS SIG effort) – Well Services has been proposed and approved for consideration in ‘05

48. Product Certification Program Will Start in Early ‘05 A Certification Program for POSC Standards is being beta-tested for WITSML enabled products. This is a self- certifying program, in which product vendors fill out a form indicating the nature of their product’s use of WITSML. Products in the program may use a special logo and the phrase, “POSC WITSML Certified Product” in literature and on packaging. A related program allows oil companies to be designated as Registered Users of the WITSML Standard.