Gas-Lift Automation Breakout Session Summary of Discussion Facilitated by Cleon Dunham Oilfield Automation Consulting

Gas-Lift Automation Breakout Session Panel of Experts AppSmiths Dwayne Vetter eProduction Solutions Greg Stephenson Petrobras Edson Henrique Bolonhini Feb. 24, 2005 2005 Spring Gas-Lift Workshop

Gas-Lift Automation Breakout Session Automation Outlook All agree that automation outlook is positive But, what is definition of automation? Monitoring Monitoring and control These plus optimization These plus more – e.g. information exchange How can automation be justified? Detailed studies Believe benefits from previous installations Difficult to convince some managers Maybe difficult to justify for old fields Guidelines needed! Feb. 24, 2005 2005 Spring Gas-Lift Workshop

Gas-Lift Automation Breakout Session Automation Outlook Where automation is easily justified Many wells to be operated Need to improve operation – keep it running Special challenges – e.g. deep water Feb. 24, 2005 2005 Spring Gas-Lift Workshop

Gas-Lift Automation Breakout Session Barriers / Challenges People Training, Empowerment Technology uptake Applies to all staff – managers, engineers, operators Technology Technology is available Often out pacing people’s understanding / use But more technology is needed for automatic control Acceptance Issue in “new” Petrobras companies, e.g. Venezuela Feb. 24, 2005 2005 Spring Gas-Lift Workshop

2005 Spring Gas-Lift Workshop Gas-Lift Automation Breakout Session Detailed Notes Taken by Flavia Correiro Full vs. partial automation. Monitoring, controlling, and integration. What level/degree of automation is necessary to work better? Operators aren’t trained to work automated systems. The answer is, “the best system is that which has worked for a majority of people.” Experience of staff is important. The goal is to be profitable as much as possible. If possible, decrease the CAPEX using automation, mainly when there is a large number of wells. Costs before and after automation must be studied. How can the gains be measured when some parts are automated and some are not? Best practices: people from different companies coming & learning together. Feb. 24, 2005 2005 Spring Gas-Lift Workshop

2005 Spring Gas-Lift Workshop Gas-Lift Automation Breakout Session Detailed Notes Taken by Flavia Correiro A project has been performed to how people in the field analyze their wells. Automation (2 classes). (1) Optimization, increased production, or (2) operational use to unload wells, minimize downtime. It is possible to only optimize gas-lift monitoring. We need to use monitoring, and after that analysis. We have to use the right equipment. If you use one person per well to provide manual monitoring, the boss will why automation is not being used. The main object is to “keep it running!” After that, “keep it running the best way.” Personnel training is important. Standards and guidelines for analysis of automated wells are needed. Need to use as much information as possible to increase production. Feb. 24, 2005 2005 Spring Gas-Lift Workshop

2005 Spring Gas-Lift Workshop Gas-Lift Automation Breakout Session Detailed Notes Taken by Flavia Correiro Resistance in the organization – management, operations – must be broken. Cost of production and losses --- automation is a tool, maintain control of the process is the objective. The first step is to convince managements of the benefits. Commitment and prediction of failures is the best thing, not only a management crisis. It may be difficult to justify automation in old fields. It is necessary to obtain information that gives the real situation base design of the automation system on this information. Do it step by step. Feb. 24, 2005 2005 Spring Gas-Lift Workshop