Update on WITSML deployment in BP - Energistics Public Meeting Dubai, 19 November 2008 Dr Julian Pickering IT Programme Manager Drilling & Completions

2 Knowledge is the enabler of our business how our collective knowledge is applied makes BP distinct from our competition

3 Increasingly Real-Time −Decisions must be made during operations Increasingly Collaborative −Expertise is often remote from operating centres Increasingly International −Challenges with language, time zones, cultural differences Our business is changing …

4 Information sharing increases knowledge - Fast learning can save 10% in a wells programme Days Fast Learning Sequence Drilled Sequence Drilled Days Days From Spud Application of New Technology Loss of Key Personnel Forgetting Curve No Learning Sequence Drilled Days Sequence Drilled Slow to Learn Sequence Drilled Sequence Drilled

5 Why is WITSML important to BP? is the result of an industry collaboration to update the widely used American Petroleum Institute WITS standard for moving drilling data between rig and office based computer systems. is the result of an industry collaboration to update the widely used American Petroleum Institute WITS standard for moving drilling data between rig and office based computer systems. It provides data in a consistent XML format which is independent of service company systems and geographic location.It provides data in a consistent XML format which is independent of service company systems and geographic location. It underpins BP’s objective to achieve leading edge productivity in well delivery by providing enhanced real-time information sharing.It underpins BP’s objective to achieve leading edge productivity in well delivery by providing enhanced real-time information sharing. It facilitates standardisation in BP’s Advanced Collaboration Environments.It facilitates standardisation in BP’s Advanced Collaboration Environments. It provides a framework for smart tools deployment.It provides a framework for smart tools deployment. W ellsite I nformation T ransfer S tandard M arkup L anguage “The ‘right-time’ seamless flow of well-site data between operators and service companies to speed and enhance decision-making”

6 WITSML plus a standard architecture will deliver optimum value and accelerate deployment Time efficient Reduce cost Provide a platform for hybrid technology Encourage collaboration Make better use of skilled resources Simplify contracts

7 Real-time architecture using service company facility (proprietary)

8 Real-time architecture using service company facility (WITSML)

9 Integrated real-time WITSML architecture (BP hosted)

10 WITSML inter-operability testing The WITSML SIG is introducing compliance testing of WITSML products but we expect this to take a little while for adoption. Inter-operability between different software solutions is a major attraction of WITSML. This has caused us problems in existing deployments. As an interim measure, BP is conducting its own inter-operability testing in a dedicated WITSML laboratory hosted for us by SAIC in Aberdeen. We are inviting our principal vendors to submit products for inter-operability testing prior to deployment. The WITSML laboratory will be used also as a diagnostic environment during operations. The first activities of the WITSML laboratory will be to support UK North Sea and Gulf of Mexico operations.

11 The WITSML laboratory allows different hardware and software configurations to be tested Example 1 – Serial WITS data from Service Provider with offshore firewall Example 2 – Networked WITS/WITSML data from Service Provider with 2 offshore firewalls

12 Working together in Advanced Collaborative Environments (ACE) The Business Challenge: Optimised performance requires Near real time analysis and decisions Collaboration by geographically dispersed experts Bringing diverse and wide ranging expertise together Specific Examples Drilling abnormal situation management Multi-discipline collaboration Observe Act Decide Analyse

13 The new way of working in BP… Operations Multi Asset Support Centre – We are now designing all of our new offices to support multi discipline, multi asset collaborative environments. D&C information will be in WITSML format.

14 Conclusions A standard WITSML architecture brings new challenges and opportunities −It simplifies the award of contracts −It enables remote working and automation −It encourages the adoption of hybrid solutions −It speeds up the deployment of standard applications We are looking for continuous improvements in HSSE and efficiency We need to address the “big crew change”

15 A final thought … …..get ahead of the wave! Supporting human interaction, remote decision making and problem anticipation are opportunities for digital technology to add significant value to the global oil and gas industry. For D&C, WITSML is critical to making this happen.