1. Oil & Gas Operational Excellence
Not an official UNCTAD record
Oil & Gas Operational Excellence
8th Africa Oil & Gas Conference
Morocco 2004
Phil Millette
Oil & Gas Industry Consultant
Honeywell Process Solutions

2. Agenda Introduction Oil & Gas industry drivers / challenges
What is Operational Excellence?
Solution components & Customer Examples

3. Company Overview 108,000 employees in nearly 100 countries
A Fortune 100 company – $23 billion sales in year 2003
One of 30 select companies represented by the Dow Jones Industrial Average
On Money magazine’s list of 75 Best Benefits companies for the third consecutive year – December 2003
Winner of the Technology and Business Vision Award from Start magazine and Microsoft®, and the Control Engineering Editors’ 2003 Choice Award, for Honeywell’s Experion PKS™ system, an integrated solution that boosts manufacturing capacity and cost effectiveness.

4. Honeywell’s Business Segments
2003 Sales
$8.8B
$3.7B
$7.5B
$3.2B
Aerospace
Specialty Materials
Automation
and Control Solutions
Transportation Systems
Total = $23B
Broad and Diverse Businesses, Technologies and Products

5. Automation and Control Solutions
Businesses:
Honeywell Fire Solutions
Honeywell Sensing & Control
Now also including Honeywell Sensotec
Honeywell Environmental Combustion & Control
Honeywell Building Solutions
Honeywell Process Solutions
Products:
Controls for heating, cooling, ventilation, air conditioning, humidification, industrial process automation, video surveillance, people and asset tracking and access control equipment;
Security/fire alarm and industrial safety systems, home automation systems;
Advanced software applications for home/building control and industrial optimization;
Sensors, switches, control systems and instruments for measuring pressure, air flow, temperature, electrical current and more
Drinking water solutions
Combustion control solutions
Commitment to service
Global Presence:
40,000+ employees in 100 countries
Headquarters: Minneapolis, Minnesota
Sales --- $7.5 billion in 2003

6. Examples - Honeywell Oil & Gas Experience
Amoco Trinidad
Offshore Platform
LNG Plant
British Petroleum
Well Field
Kazakhstan
Well Field / Fractionation
Over 15 Major
North Sea Platforms
Atlanta Gas Light
LNG Plant
Tarim
Oil Field
British Petroleum
Marine Terminal
Tuha
Oil Field
customer
Gas Plant
Petronas
Gas Plants
Amoco
Texaco
Exxon
Conoco
Gas Plants
EPMI/Petronas
Platforms
Chevron
Oil Field
Pemex
Gas Fractionation
Woodside
Petroleum
LNG/Platforms
Corpoven
Gas Fractionation /
Marine Terminal
Sonatrach
LNG Plant
India Oil
Pipeline
AGL
Pipeline BP
Gas Metering
Chevron Escravos
Aramco
Production
Projects
Shell
Pipeline
Sasol
Dukhan
Oil Field
AGIP
Amerada Hess
Aramco
Ashland
British Gas
British Petroleum
Britoil
Botas
Chevron
Corpoven
Dakota Gasification
Diamond Shamrock
Dome Petroleum
ELF
El Paso Natural Gas
Enron
Enterprise
Exxon/Esso
Kuwait Oil
Mobil
Marathon
Northwest Pipeline
Occidental
Petronas
Phillips
Shell
Statoil
Sun
Texaco
Total
Transok
Woodside

7. Oil &Gas - Offshore production References
Honeywell controls offshore platforms and FPS in all worldwide regions
North Sea (UK and Norway)
Middle East
Australia
Southwest Asia
Selected FPS
References:
-Hydro Troll Olje / Norway- Semisub.
-Texaco Captain / UK FPSO
-Woodside Laminaria / Australia FPSO
-Esso Jotun / Norway FPSO
West Africa
Gulf of Mexico
Caribbean
Recent EMEA Offshore Projects
Shell Shearwater, North Sea
Mobil Galahad, North Sea
Amerada Hess Scott, North Sea
Shell Brent, North Sea
Chevron Escravos, Nigeria
Chevron Robertkiri, Nigeria
Statoil Kvitebjorn, Norway
Esso Ringhorne, Norway
Veba Hanze 2, The Netherlands
ExxonMobil Skene/UK
BP Clair UK / FEED
Dong Naturgas Torup, Denmark

8. Honeywell Integrated Oil & Gas Solutions
Operational Excellence Solutions
Asset Management & Security Solutions
Oil & Gas Process & Production Management Solutions
Transportation
PRODUCTION TERMINAL
ONSHORE GAS/OIL FIELDS
Business
metrics
Best
practices
Improved
Performance
Lower OPEX
GAS PLANT
Processing
OFF-SHORE PLATFORMS
Production
SCADA / DCS & Safety, Security Systems
Field Instrumentation

9. Oil & Gas Operational Excellence
Performing at best-possible state
People
Assets
Process
Business
With the equipment, assets, production configuration we have today
From minute-to-minute, hour-to-hour, day-to-day
For improved management of
Safety,
Reliability,
Security,
Process & production performance optimisation,
Production management

10. Operating Excellence: Achieving Optimal asset performance
Flexible real-time technology must support the operational business processes
Business Management
Advanced
Analysis
tools
Optimization
CMMS
Approach:
Decision Support
Diagnostic
for Integrated Teams
APC
Operator
Maintenance
Asset
Diagnostics
DCS/ESD
Regulatory
Control
The Future?
In use now!
Remote expert
diagnostic from
support center
Security
Process
Sensors
Process & Asset
Sensors
onshore & offshore production

11. Operating Excellence Challenges
Production Cost reduction / control
Reliability, Uptime!
Personnel
Work Practices improvement
Increased top line revenue
Reliability, Uptime!
Maximize production from existing facilities
Push constraints
Optimize process
Detect Problems, Mitigate Impact
Safety Management
Reliability, Uptime! : need to track health and performance of all plant and automation assets
Environmental Monitoring / compliance
Improve People Effectiveness
Work Practices improvement
Learn from Operations
Safety Management
Lifecycle Costs
Plan and Manage Version-up & obsolescence to capture operational improvements
Integrated Management of automation asset WITH the plant asset
Focus on more production, more reliability, more safety

12. Honeywell’s approach
Honeywell looks at all Oil & Gas operational Business Processes
Provide solutions that are focused on enabling the day-to-day, hour-by-hour decisions
Including closed loop response capability where appropriate and possible
Minute-by-minute events & activities
Not focused on the drilling business processes
Not focused on detailed reservoir/petrophysic part of oil & gas asset management
Knowledge of
Automation & safety
Process
Advanced Control
Asset Management
Production Management
Security
IT / Integration Expertise

13. Figure from POSC SmartFields meetings: Loop Characteristics (Shell)
cycle time
Field Development
production optimization
Focus on short term improvement opportunities, with given asset
production operations
Reservoir Surveillance
subjectivity uncertainty complexity
Enable Ease of information exchange to reservoir surveillance function
organizational scale

14. Oil & Gas Operations Excellence: Solution Map
Reservoir
Management
Decision Support
ERP
Enterprise
Production Summary
Enterprise Integration
Operations
PCC Rich Client &
Thin Client
Production
Management
Well Test Manager
KPI Manager
Production Report
Operations
Management
Regulatory
Reporting
Production Event Analyst
& Shift Report
Asset Management
APC & Optimization
Operator
Effectiveness
Experion, Plantscape
TPS
Pipeline Leak Detection*
Intelligent Choke Cntrl
Metering Report
Security
Integrated Field
Safety Valve Scout
Safety State
Field
Shut Down Analyzer
All the components to achieve Operations Excellence

15. Operational Excellence Solutions: People, Business
Production Control Center (PCC) enables improved decision making & Improved visibility of facilities
Installations on Statoil Kvitebjorn, Norsk Hydro Troll B, BP Ula, BP Valhall, ChevronTexaco Alba, Talisman Gyda
Consistent management & work practices
Helps operators, managers focus on the real issues: find / focus on bottlenecks to improve production and manage important safety issues
Single environment to manage all operations work related tasks
Assign causes for production deferments
Includes safety valve scout, shutdown analyzer, production event analyzer, Well test Manager
Integrates production, process, safety, asset and work flow information together
Designed for Collaborative work, improving work practices, such as reducing routine work load
Matches the vision of major oil companies
Is the overall framework enabling new value to be captured from even existing historians
Use from any web page
Safe and Efficient operations: It's like having the best operator on every shift

16. Operational Excellence Solutions: People, Business
Available functions / applications/ reports with PCC:
Production Overview – advanced form of report and display
Production Reporting
Well Test Manager
Production Balance
Production Allocation
Metering Reports
Lab, chemicals, Emissions tracking
Operations Monitoring & KPI - Manager
Flexible Shift Reporting system
Production Event Analyst
Weather Information
Load Stabilisation
With a partner
Pipeline Management, including multiphase
With Fantoft as pipeline management partner

17. A Typical Control Room Screen
Proprietary and Confidential

18. Oil & Gas Operations Excellence: Solution Map
Reservoir
Management
Decision Support
ERP
Enterprise
Production Summary
Enterprise Integration
Operations
PCC Rich Client &
Thin Client
Production
Management
Well Test Manager
KPI Manager
Production Report
Operations
Management
Regulatory
Reporting
Production Event Analyst
& Shift Report
Asset Management
APC & Optimization
Operator
Effectiveness
Experion, Plantscape
TPS
Pipeline Leak Detection*
Intelligent Choke Cntrl
Metering Report
Security
Integrated Field
Safety Valve Scout
Safety State
Field
Shut Down Analyzer
All the components to achieve Operations Excellence

19. Operational Excellence Solutions: Assets
Asset Management Solutions enables path to Best Practice AND lowest cost reliable Oil & Gas Operations
Overall
Improvements due to 3-5% increase in production reliability & increase in throughput
In some markets, savings in cost $1M-$2M due to staff effectiveness & reduction in maintenance cost
Large installation on Pemex Cantarell
Lower deferred production from fewer trips and unplanned shutdowns
Lower maintenance cost through better real time follow up of equipment performance
Transmitters, valves, process equipment, exchangers, vessels, pumps etc
All plant assets can be tracked by Asset Manager
Catch Abnormal Situations early!
Alarm Configuration management, Early Even Detection
Reliable means more production, lower cost, more safety

20. Operational Excellence Solutions: Assets
(2) Asset Management Solutions enables path to Best Practice AND lowest cost reliable Oil & Gas Operations
Through TurboSuite: Better follow-up of turbo-machinery performance due to advanced real-time performance tracking
Lower cost of work order generation – automatic links to ERP systems
Safety Valve Scout & Shutdown Analyzer: Lower cost of safety system tests – obtain business value from analyzing actual shutdown / safety system performance.
Opportunity to foster joint work teams – maintenance and operations
Alert Manager: Better engineering and management response due to quicker notification of alerts: issues and potential problems, using automatic , SMS etc messaging.
Reliable means more production, lower cost, more safety

21. Solution Components Asset Effectiveness Safety Management Reporting
Early, rich diagnostics per type of equipment
Including partnerships with 3rd party equipment suppliers
Diagnostic knowledge with the equipment itself
Automate work processes
Wireless field work support
Calibration support
Compressor / rotating equipment monitoring
Control Loop monitoring
Links to CMMS, documentation
Safety Management Reporting
Checking Shutdown systems
Safety Valve monitoring
Safe management of the Alarm system
Remote Management
Example Solutions
Web-framework for oil & gas operations and production management

22. The Asset Manager PKS – responding to faults
Fill out a work order …
An action has many different possibilities
Send a page ...
Clicking on the advised action can trigger an action--in this case a work order
Or an ...
Or run a program …

23. Asset Manager as the key real-time notification and work flow platform
Usable on any facility, whatever the automation platform
Notification
via all
Collaboration
methods, including
Documentation,
and Impact
Experion Alarm
Information
Assessment
interface
Asset
Manager
Field Entry, View
Asset Management
Collaborative Control Center
IntelaTrac PKS
PKS
Scouts
Safety
APC
Scout
Loop
Turbo
Profit
Data
HART
Shutdown
Valve
Scout
Suite
Sensor
Scout
& FF
Analyzer
Scout
APC
Apps
Safety
All
Experion
OPC
Rotating
Virtual
All
Valves
Loops
PKS
Valves..
The plant is more than the sum of the instruments

24. Oil & Gas Operations Excellence: Solution Map
Reservoir
Management
Decision Support
ERP
Enterprise
Production Summary
Enterprise Integration
Operations
PCC Rich Client &
Thin Client
Production
Management
Well Test Manager
KPI Manager
Production Report
Operations
Management
Regulatory
Reporting
Production Event Analyst
& Shift Report
Asset Management
APC & Optimization
Operator
Effectiveness
Experion, Plantscape
TPS
Pipeline Leak Detection*
Intelligent Choke Cntrl
Metering Report
Security
Integrated Field
Safety Valve Scout
Safety State
Field
Shut Down Analyzer
All the components to achieve Operations Excellence

25. Operational Excellence Solutions: Process
APC (Advanced Process Control) and Optimization technologies boost Production, providing a direct Revenue Increase
Honeywell’s APC and Optimization have repeatedly been used to increase Production and Reduce Cash Costs.
Can increase production by 2% to 10% depending on current conditions
Intelligent Choke controller
Flexible control able to smooth impact of slugs by manipulating choke valves.
Reduces trips due to smoother resulting level control in high pressure separator.
Documented cases on Shell platforms
Multivariable control – Profit Controller
Mature technology
Proven in oil & gas, onshore and offshore applications
In one recent case, increase was 6000 bbl/d.
Also documented cases on BP Ula platform, Woodside
Optimisation – Gas Lift and field wide
Coordinating multiple controllers for optimal performance
Enhanced optimisation by modeling from sand face to surface, through gathering network and gas lift. – with partner EPS.
APC provides proven value in oil & gas!

26. Well, Pipe Network, Facilities
Field Optimization Network
Manifold
iDO
Well, Pipe Network, Facilities
Well Choke Valve
Field Pump
Profit Optimizer
Gathering Compressor
Profit Controllers
UNIFORMANCE
SCADA
Oil
Gas
Facilities

27. Network Model and Optimizer Transient Pressure Analysis
Integrated Field-Wide optimisation: Closing the loop with Multivariable Control
GAIN
AIM
i-DO
SUSTAIN
i-DO
i-DO Server
i-DO Client
Targets
LAN/WAN/Internet/Intranet
Review, Approval
Engineer PCs
Well Perf Curves
Network Model and Optimizer
Pres, kh, Skin
Transient Pressure Analysis
Pres, GOR, BS&W
Reservoir Models
Production Tests
Well Models
Production Data
Management
Economic Parameters
Production Planning
PVO OBJECTIVE FUNCTION
{PRODUCT VALUES, ENERGY COSTS}
Profit Bridge
Profit Optimizer – MV Control coord
Profit Controllers
(RMPCT)
SEPARATOR 1
MV CONTROL
SEPARATOR 2
MV CONTROL
GAS LOOP
MV CONTROL
MULTIPLE
CHOKES
MV CONTROL
Wells, Separators

28. Additional areas covered by Honeywell
Operator Training simulators
High fidelity
Platforms, gas plants etc, as well as LNG
Shell, BP as major customers
Business integration
Large project capability
Experience at Nodco, Statoil, others
Integration to SAP via Business Hiway
Implementation of SAP via partner
Experience at Sasol
Implementation of Maximo Maintenance system
Improved Production Site, Plant & platform security
Honeywell security solutions include perimeter protection, Honeywell cctv cameras, Access control, Personnel on Board
Implement and link in 3rd party marine or other harsh service cameras
Central Management capability – country wide
DVM: Digital Video Manager
TemaLine Access Control
Integrated, unique real-time monitoring platform – EBI.
Including Caspian Pipeline consortium, Shell, Spanish nuclear plants, Dubai airport, Sydney Olympics

29. Oil & Gas Operational Excellence: conclusions
It’s achievable now
Technologies exist to support integration of safety, reliability, process and business management as well as security of facilities
Benefits are real: in increased production, reduced lifting costs, improved reliability and safety
Does not require a capital project to get started
Is not dependent on the underlying automation platform