1. PRODML Roadmap 2006-2010 Energistics 2 nd Annual Standards Summit 2 November 07 Laurence Ormerod, Weatherford

2. Slide #2 PRODML: The Most Viable Way to Enable Production Interoperability The Opportunity:  Production application domain highly fragmented  “Doing nothing” implies point to point integration: costly, slow, very high maintenance  Opportunity to fix this! The Objective:  Make integration cheaper, faster, simpler  Enable dynamic creation “value loops” with new workflows and applications added “on the fly” Supply chain models “standards” vs “consolidated”  Scada – many vendors, public standards  G&G/Reservoir – few vendors, de facto standards  Production – industry standards approach  PRODML

3. Slide #3 Gathering Separation & Distribution Injection (Water, Steam, CO2) Water Handling Gas Treating Facilities Oil Treating Facilities Gas Export Facilities Oil Export Facilities Reservoir Management: Gas & Oil Contract Deliverability The Production Domain Producing Asset Scope 2006 Initial Scope From bottom of the well to initial separation Decisions we can effect in a day

4. Slide #4 PRODML: Provides “Glue” in Key Area of Asset Management 2006 PRODML Initial Scope SCADA Systems Sensor Data Reservoir Models Geoscience Data OPC Domain De facto Standards Domain PRODML Domain High FrequencyLow Frequency30 2007-92010 2008 (OPC-UA Option) Drilling Systems WITSML Domain Maintenance Systems Maintenance Domain THE PROBLEM Production: Multiple Component Solutions Medium Frequency Cycles Lack of existing standards The Solution: PRODML – Open Standards Many Production Applications Application A Application B Application E Application D Business Processes After Chevron, ExxonMobil

5. Slide #5 PRODML – Material Progress 2006-7 A common language for production data has been created Commercial application has commenced, eg:  Production Reporting (Statoil)  Waterflood management (Chevron)  DTS data management (Weatherford)  First Commercial Applications (Schlumberger) R&D Proofs of Concept have been substantial:  Gas Lift Optimisation  Downhole sensors  5,000 well dataset transfers  Network Model changes moving between applications

6. Slide #6 PRODML Focus: Production Optimization Roadmap in place: 3 more years to industry standard Use Case Examples: [Timescales approximate] Gas Lift Optimisation (changes in well status or lift gas available) during 1 day Smart well control optimisation (offtake control from production data) weekly Production- Reservoir Operational mgt. (transient testing, voidage etc) monthly Development Planning (production data integrated with reservoir simulation) year30 PRODML Focus High Frequency Low Frequency Business Processes Timeline: Daily Surveillance and Reporting Year20062007200820092010 (i)(ii)(i)(ii) Use Cases Gas Lift Opt. G/L & flowing well surveillance Downhole sensors PTQ, DTS Daily reporting Reporting NOJVs ESP wells SRP wells Timeline: Weekly Production Management Year20062007200820092010 (i)(ii)(i)(ii)(i)(ii) Use Cases Smart well offtake optimiz- ation Fluids capacity forecast Smart well optimiz- ation & downhole allocation Fluids capacity optimiz- ation Well completion transfer & referencing Welltest validation Integration with facilities maintenance Timeline: Field Optimisation Year 2006 200720082009 2010 (i)(ii)(i)(ii) Use Cases Shared network model with change propagation Shared network model with different detail level Reservoir voidage and monitoring Integration with process simulation Monthly regulatory reporting Timeline: Field Development Planning Year20062007200820092010 Use Cases Reservoir- Production Dev Planning After Chevron, ExxonMobil

7. Slide #7 Opportunity: Complete by 2010 Way ahead clear 2008-2010 after year 2 review completed:  Extend Language for more processes & assets  Evolve Multiple protocols, giving easier deployment & flexibility  Professional support services from Energistics Grow Community: 7 Energy, 12 Svc. Co. ++ Multi-year commitment now required for successful completion