1. Integrated Operations and the use of WITSML in Statoil WITSML meeting, October 19, 2006 Peter Eilsø Nielsen (pen@statoil.com) Senior Advisor Subsurface Work Processes Process Owner Exploration and Reservoir Technology

2. IO: from ambition to integrated action Land based support Real time data Increased interaction Production optimization Condition based monitoring from shore Training Cooperation rooms Experience transfer Better use of vendors 24/7 support on request Standardization of toolbox Wireless technology Operation 24/7 Certifying of competency Integrated management Real time 3-D models Virtual cooperation arena Remote support from vendors Efficient support Integration between licensees Geographical independence

3. Statoil’s prioritized IO activities

4. Facilities and IT equipment – onshoreoffshore

5. Results – Production optimization on Heidrun Improved collaboration onshore and onshore/offshore – Better cross-disciplinary understanding – Working as one team ”This way of working has lead to a more open, tighter and better dialogue onshore/offshore. The consequense is increased production under safer producing conditions” Production leader at the Heidrun TLP Increased oil production by 6% in 2006 => +500 000 Sm3/year

6. eField drivers

7. Integrated Operation and economy NPD and OLF has calculated the value of IO on the Norwegian shelf to be 40 billion USD Statoil’s anticipated IO-potential is more than 50 % of the above External review of the Integrated Operations efforts on one of our major fields calculates the value created to close to 1 billion USD, with a further potential of 0,7 +\- 0,4 billion USD

8. Current status on the use of WITSML in Statoil

9. Overal use of WITSML in Statoil Statoil have transferred information from 300+ wells with the use of WITSML (and stopped counting) Incorporate all wells operated by Statoil in the Norwegian sector Incorporate a growing amount of wells internationally (Iran, Venezuela, Angola etc.)

10. Current situation from our IT real time support centre in Statoil Period 1/6-06 to 31/8-06: – WITSML = 29 wells – = 85 191 m WITSML stream – = 255 571 ft WITSML stream PROBLEMS with the start of 50% of these streams due to lack of automation

11. Challenges with real-time WITSML stream Still many manual operations to set up and maintain the real- time stream WITSML not properly supporting automisation Applications is not properly supporting real-time data Some of the products in the data stream are not built to support multiple well streams (up to 20 simultaneous wells) Manual work needed to handle dialects of WITSML and multiple versions in use

12. Good thing about the real-time WITSML stream It does its job of transporting data to the end users in the operations centres in Statoil The users are getting used to the use of real-time data due to every well being transferred in real-time (it drives habits) It is one of the cornerstones in harvesting the overall value of Integrated Operations