The Generic Choke Model enterprise (GCMe) What will be the value of your organisation’s annual production losses? Where will your efforts/OPEX best be targeted in increasing production efficiency? GCMe will help you answer these questions and support your people in the drive to continually Improve Performance…

About Young Light Technologies (YLT) A Scottish Company specialising in Production Performance Improvement. Over 12 years experience in “Choke Modelling”. Produced the winning design for BP’s new “Production Efficiency Improvement Toolset”. Beat off competition from the world’s leading IT companies including Oracle, SAIC, Deloitte, Infosys etc. GCM Clients include BP Group, BHPBilliton, Nexen, Marathon, Venture Production

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Where GCMe Fits In GCMe Supports These Processes With changes in product value, technology and expertise it may become feasible to increase the Production Capacity Choose the production growth opportunities which will return best value in terms of increased Production Capacity per $ Don’t waste money improving one aspect of the process if the real chokes lay elsewhere GCMe Supports These Processes Benefit from other peoples experience in improving performance Let other people within your organisation benefit from yours First Oil Last Oil Plateau Decline Optimise Production from First Oil for Life of Field Lose Less Set Targets Unlock Potential Fix the faults and change the behaviours that have been responsible for production losses occurring – prioritise according to importance Fix the faults and change the behaviours that may potentially be responsible for production losses occurring – prioritise according to importance Share Learnings First, establish what your current Production Capacity is for each product This takes into consideration all chokes across the Reservoir to Market production process The Production Capacity becomes the metric against which Performance & Performance Improvement is measured How do we go about this?

GCMe Principles GCMe is a Collaborative Performance Improvement Tool Supports A Multi-Discipline People Process Provides a focal point for all production (and Injection) performance issues Harnesses the Expertise, Experience & Insight of the Offshore & Onshore teams rather than just capturing automatically generated values Deals in Information rather than data Complements existing specialist systems – easy to integrate where appropriate Covers the entire production (and injection) process from reservoir to market Designed to engage users, embed ownership and most importantly, Drive Performance Improvement.

What GCMe is NOT Hydrocarbon Accounting System Process Simulation Tool Reservoir Engineering System Wells analysis/simulation tool Real Time data historian Although the above systems will help provide valuable input to GCMe, GCMe does not aim to emulate these tools.

Set Targets (Production Capacity) Lose Less Set Targets Unlock Potential Share Learnings

Example: Set Targets (Production Capacity) GCMe GCMe Facilitates Monthly Production Capacity Review Demonstrates “Chokes” across the whole operation (Reservoir to Market) The Team decide upon a realistic but challenging Production Capacity figure which becomes the new 100% efficiency target Discipline Experts/Teams (Reservoir, Wells, Process etc.) Review/update their own data with their own expert systems in their own time Synchronise key information with GCMe prior to Production Capacity review

Example: Set Targets (Production Capacity) The Data that drives this chart is synchronized from a separate specialist Wells System As these component parts are “in series”, the lowest capacity (Wells) restricts the overall capacity for Alpha Platform After reviewing the capacities chart and recent production performance, The Production Capacity decision is made First select a position within the Asset/System/Equipment Hierarchy In this example the opportunities associated with individual wells and the Wells group are also displayed demonstrating that an increase in Wells group capacity is possible Capacities of component parts are automatically rolled up to Alpha Platform Production Capacity decision level As the wells operate “in parallel”, their capacities “stack up” to create the combined Wells capacity Drill down to see where the wells data has come from...

Lose Less Lose Less Set Targets Unlock Potential Share Learnings

Example: Lose Less 1. Historic Losses GCMe Offshore Onshore Next Day Daily meeting/hook up with onshore Bring up GCMe and review/edit previous day’s losses together Get after root causes, assign actions to Eliminate Defects End of Production Day Brief team meeting in the control room (10-15mins) Bring up GCMe and Allocate production losses for that day Volume to allocate = Production Capacity – Actual Daily Production For each loss event, capture indicative loss volume, source, cause, a brief description and any immediate action taken Weekly/Monthly/Quarterly Performance Review Bring up GCMe and use the reporting functions to analyse losses over a longer time period Study the trends & see the value of lost production by Source/Cause/Owner etc Assign actions to Eliminate Defects, review action progress

Inside GCMe : Historic Losses Daily production figures pulled through from external database Production Capacity figures pulled through from internal decisions Losses to be allocated If this loss is likely to carry on into the following production day then flag as a “Continuing Loss” Losses that have occurred previously or have already been captured as “potential losses” are listed automatically – and can be used to populate the loss event form Losses already entered. The highlighted loss has been inserted automatically as it was previously flagged as a “continuing loss”. If this loss is likely to re-occur at some point in the future then it can be captured as a “Potential Loss” Click here to add a new loss

Example: Lose Less 2. Potential Losses An estimate of timing and impact is recorded as part of a Potential Loss which drives the GCMe Potential Loss risk matrix. The purpose of this process is to try to prevent future unplanned losses occurring! Taking a more proactive HSE style approach rather than just reacting to events after they have happened… If not resolved, through time, Potential Loss events move from left to right – eventually becoming urgent This is achieved by capturing: Observations GCMe Near Misses Capturing, Reviewing, Analysing and taking Action on Potential Losses is done at the same time/meetings as the Eliminate Historical Loss process. Recurring loss events

Unlock Potential Lose Less Set Targets Unlock Potential Share Learnings

Example: Unlock Potential Production Capacity growth opportunities may be identified in all areas of the Reservoir to Market production process. GCMe logically rolls up these opportunities to the level where informed decisions can be made regarding which, if any to pursue. Growth Opportunities are rolled up to any level in the hierarchy, along with capacities. Colour coding identifies the opportunity status In this example, the component parts are “in series” and overall growth opportunity is limited by the lowest component parts In this example the opportunities associated with individual wells and the “Wells” group, stack up to provide a significant potential increase in Production Capacity (at this level). At this level, it is clear that there is value in pursuing the Wells, Nominations & Local Plant related opportunities – but little value in pursuing the others at this time. The Building Blocks of Production diagram details the rolled up opportunities for Alpha including the Theoretical Production Capacity (TPC) and the Production Technical Limit (PTL)

Share Learnings Lose Less Set Targets Unlock Potential Share Learnings

Example: Share Learnings The performance reviews are powered by GCMe’s reporting suite The central database holds all the data for all the Assets. Every Source & Cause is mapped to a Generic Source & Cause allowing comparison across assets. A few examples… Key Word searches will allow interrogation of the qualitative information held within GCMe. As each source and cause has an owner, you will not only be able to see who else has encountered the same problems, you will also be able to pull up their contact details and start a conversation. The reports are easily exported to other windows applications and there is the facility to export the underlying data for further analysis in Microsoft Excel. The sources of loss over any given time period – in descending order of impact. Double click the chart to drill down to the next level or use the right click menu to view a trend of losses associated with a particular source. Same report available for Causes & Owners. Production Performance Report. Known as “Blood On The Wall”. Instant Visibility of Losses.

End of Presentation For more information, including current GCM user contact details, please contact: Neil Hardy +44 (0) 7767890636 neil.hardy@younglight.com