Schlumberger Private Dieter Hiller Environmental Advisor Schlumberger Limited WEC European Roundtable Hamburg, 15 th April 2005 Reducing the Environmental Footprint in Oilfield Operations

Schlumberger Private Schlumberger – The Company World’s leading oilfield services company supplying technology, project management and information solutions Formation evaluation Directional drilling Well cementing and stimulation Well completions and productivity Consulting, software, information management Two business segments: Oilfield Services and WesternGeco

Schlumberger Private Schlumberger – Key Figures 52,000 employees of >140 nationalities Presence in > 100 countries Operating revenue (2004)$11.48 billion Net income (2004)$1.22 billion 4 Areas

Schlumberger Private Baku: An Example

Schlumberger Private From Plankton to Production… Three principal stages: Detection Evaluation Production

Schlumberger Private Exploration: Marine Seismic Surveys Reduced fuel consumption, less marine life disturbance Monowing Streamer Streamer Steering

Schlumberger Private Exploration: Land Seismic Surveys Seismic surveys are intrusive and may leave visible marks for a long time Vibrators Seismic Lines Cooper Basin, Australia

Schlumberger Private Exploration: Land Seismic Surveys Solutions: Specific EMS …the Rubber Tracked Vibrator (RTV) and GPS/inertial navigation units that help reduce clearing of overhead obstacles

Schlumberger Private Evaluation: Modelling and Planning Advanced data acquisition (3D and 4D Seismic), processing and modelling improve the planning of well path and location

Schlumberger Private Interpretation: High Resolution Seismic Identification of pay zones oil-water contact oil-gas contact enables improved well positioning and design. Less wells equals less impact, at improved performance

Schlumberger Private Drilling a Hole in the Ground Cuttings require disposal (and possibly treatment) Mud and fluids needed for borehole stability, cuttings removal, cooling, lubrication, gravel packs, etc. Wider holes  require bigger drill bits and more power while drilling (friction, weight of drill string),  require more mud (chemicals),  produce more cuttings,  Give better access for downhole tools Drill string for wider holes is less flexible

Schlumberger Private Production: Directional Drilling Coiled Tubing Drilling Wytch Farm, UK Horizontal displacement 10,114 m

Schlumberger Private Production: Directional Drilling Coiled Tubing Drilling

Schlumberger Private Production: Coiled Tubing The drill string from the rope: Smaller diameter, flexible, fit for many purposes

Schlumberger Private Production: “Green Chemicals” Environmentally acceptable chemicals in drilling mud and other chemicals used in drilling, stimulation, completion and gravel placement: Viscoelastic surfactants (VES)

Schlumberger Private Production: Flaring Flaring of oil and gas… …produces huge emissions and, during well cleaning, toxic by- products

Schlumberger Private Well Testing in Abu Dhabi Background Offshore Abu Dhabi, wells drilled into carbonate reservoirs require acid stimulation in order to produce at their potential During the clean-up phase of well testing operations:  The produced well effluents were flared and,  Spent acid and produced water dumped in the Gulf. These operational practices were causing major sea and air pollution.

Schlumberger Private Conventional Well Testing Operations Gas to BurnerChoke ManifoldSeparator Surge Tank Transfer Pump Oil Contaminated Water to Sea Well Effluents Oil to Flare From Well Head

Schlumberger Private Well Testing in Abu Dhabi Developments The situation became worse with the increased number of multilateral horizontal wells as longer intervals were now stimulated. Consequently large quantities of well effluents were produced and contributing to further pollution. Customer wanted environmentally friendly well testing operations.

Schlumberger Private Well Testing in Abu Dhabi Oily Water Choke Manifold Separator Skimmer To Treat Separated Water Surge Tank Transfer Pump Oil Oil to Production Line Clean Treated Water Disposed to Sea Gas to Burner Injecting TFA 400 Chemicals Injecting Neutralizer The next stage…

Schlumberger Private Well Testing: PhaseTester Vx No flaring during production Low pressure loss Returns to production or export line Zero Flaring and Zero Pollution to the Environment

Schlumberger Private Production Monitoring: 4D (Time-Lapse) Seismic S HC indicator 01 No change Large change Mapping fluid movements and identifying unswept hydrocarbons Gullfaks Field, North Sea

Schlumberger Private Seismic Contribution to Improved Recovery Before 1980: 2D: 25-30% of oil recovered Slices : 3D: 40-50% recovered Volumes future: 4D: 65-75% recovery* Changes *BP/Shell’s Foinaven field estimate, Petroleum Engineer International; January, 1996.

Schlumberger Private CO 2 Capture and Storage

Schlumberger Private Source: IPCC Third Assessment Report, Year Concentrations of GHGs have risen significantly over pre- industrial levels. Surface ocean pH has also declined by 0.1 as additional CO 2 dissolved. Global Geochemical History

Schlumberger Private Assumed Advances In: Fossil Fuels Energy intensity Nuclear Renewables Assumed Advances In: Fossil Fuels Energy intensity Nuclear Renewables Source: J. Edmonds, PNNL Gap Technologies: Carbon capture & disposal  Adv. fossil H 2 and Adv. Transportation Biotechnologies  Soils, Bioenergy, Adv. Biological Energy Gap Technologies: Carbon capture & disposal  Adv. fossil H 2 and Adv. Transportation Biotechnologies  Soils, Bioenergy, Adv. Biological Energy The “Gap” The Need for Breakthrough Technologies

Schlumberger Private The GCEP R&D Program to Generate Technology Options The Global Climate and Energy Project (GCEP) was established to conduct pre- commercial research necessary to develop the technology options needed to address the “gap” GCEP is an unprecedented research alliance between a university and leading global corporations It represents a 10-year, $225M commitment to developing groundbreaking technologies that may have a significant impact on a global scale Mission To Conduct Fundamental Research to Develop Technology Options for Growth in Energy Use With Reduced Greenhouse Gas Emissions That May Operate at a Significant Commercial and Global Scale External Institutions in US and Worldwide

Schlumberger Private Geologic Storage of CO 2 GCEP Project, Stanford University Create a suite of tools for design and implementation of geologic sequestration projects: Site selection and evaluation: effective methods to assess the integrity of geologic seals that limit CO 2 migration. Fluid migration: very efficient methods for predicting the flow paths and long-term fate of injected CO 2. Monitoring: appropriate tools for monitoring the state of injection projects at each stage. continuous shales discontinuous shales Injection

Schlumberger Private CO 2 Storage Capacities

Schlumberger Private CO 2 Storage: Sleipner Field, Norway

Schlumberger Private CO 2 Storage: Sleipner Field, Norway A growing CO 2 “bubble” observed after injection Deformation of the storage formation

Schlumberger Private Vx Technology Data Acquisition Flow Computer (DAFC) DP Transmitter Temperature Transmitter Blind-T Pressure Transmitter Dual Energy Nuclear Detector Flow Barium Source Housing

Schlumberger Private Dual Energy Nuclear Measurement