Classification: Statoil internal Status: Draft

Integrated Operations: a

corporate initiative in Statoil

‘Why we focus on the development of WITSML’

Peter Eilso NielsenSenior Advisor

pen@statoil.com

2

Main challenges and drivers for Innovation

0

20

40

60

80

100

120

140

1998 2001 2004 2007 2010 2013 2016 2019

Gullfaks V.Gullfaks SHeidrunNorneSnorreVeslefrikkVisundAsgard

Nok/boe

Year

Historic and forecasted operating costs for selected fields

Source: Petoro

0

20

40

60

80

100

120

140

1998 2001 2004 2007 2010 2013 2016 2019

Gullfaks V.Gullfaks SHeidrunNorneSnorreVeslefrikkVisundAsgard

Nok/boe

Year

Historic and forecasted operating costs for selected fields

Source: Petoro

0

20

40

60

80

100

120

140

1998 2001 2004 2007 2010 2013 2016 2019

Gullfaks V.Gullfaks SHeidrunNorneSnorreVeslefrikkVisundAsgard

Nok/boe

Year

Historic and forecasted operating costs for selected fields

Source: Petoro

0

20

40

60

80

100

120

140

1998 2001 2004 2007 2010 2013 2016 2019

Gullfaks V.Gullfaks SHeidrunNorneSnorreVeslefrikkVisundAsgard

Nok/boe

Year

Historic and forecasted operating costs for selected fields

Source: Petoro

3

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What is Integrated Operations?

• Increase the efficiency of exploration, operations and newdevelopments, through the use of new work practices

• Better and faster decisions

• Utilize technology that brings competence, data and tools together in

real-time, independent of location

Seabottom-

seismicDownhole sensors and

- -

processing equipment

Equipment for operation of offshore facilities

Fibercable

Virtual model

Onshore support centres

Collaboration

Operator Suppliers

Corporate Initiative: Integrated Operations

5Konserninitiativ: Integrerte Operasjoner

Statoil activities on IO

R&D, pilots, deployment, IT infrastructure, ……

The corporate initiative is a sum of activities at many different locations within a large organisation

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PilotsR&D

Pilots

Wide deployment

Corporate initiative: Integrated Operations

03.05.2005

Focus areas for the corporate initiative on Integrated Operations

Pilots

Wide deployment

Wide deployment

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Digital Technology enabling subsurface progress and innovation in the following areas:

• Integrated Operations (eField, real-time operation, DOFF)

– Remote operation

– Automation of processes (drilling, well operation, production,

maintenance)

– Digital intelligence to aide control over multiple operations

– New organizational patterns in the oil industry

•Within companies (from field to real asset operation)

•Between oil companies and supplying/vendor industry

– Changes in the geographical location pattern in the oil industry

8VisionAutomated and remotely operated fields. Global acquisition & access of RT data

Depth based project data db

Timebased drilling data db

(Coming soon)

RTSservice

Onshore Operational Centre

Anywhere

Home

Office

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Research ambitions

55% recovery factor

Subsea IOR Ambition Tail Production Ambition

70% recovery factor

Integrated Operations will contribute in reaching the Subsea IOR and Tail Production ambitions

OPEX

Recovery factor

70%

∆ = 30%

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The Integrated Operations Vision

Integration per asset

Remote operation from onshore location

Integration per asset

Remote operation from onshore location

Step 2: 2008

Full

integration across portfolios

Step 3: 2015

Business integrationBusiness

integration

Automation andremote operationAutomation and

remote operation

Integration of disciplinesIntegration of disciplinesStep 1: Now

• Integration offshore/onshore• Implementation of OOCs• Transfer of people from offshore to onshore

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Remote operations (enabled) within

2008!Integrate competency

and information towards decisions

Automatic monitoring

Real-time processing and

analysis

Work processes and decision

support

Safe and reliable data and

communication infrastructure

Onshore control room work processes

Change management support

Condition monitoring of Facilities

Down hole flow, P and T measurement (fiber)

Permanent Ocean bottom seismic

Fast update of geo & reservoir models

Production and process optimisation tools

Well planning and drilling optimisation

Condition based maintenance applications

Integrated fiber optic system

Data transmission from bit to surface

Safe and reliable offshore network

Standards and protocols, applications integration

Data Management platform

Key focus areas of the project

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THE CHALLENGE: Business Unit focus for ’Integrated Operations’ is on technology that is available. The R&D vision focus on the future and stretching technology

Business unit vision: eField possibilities for each field/asset – how far can you get by the use of today's technology?

R&D vision: independent of qualified technology – everything is possible – economic evaluation will decide implementation

gap – let these visions challenge each other today

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The 2008 project goals

Integration per asset

Remote operation from onshore location

Integration per asset

Remote operation from onshore location

Implementation of Tyrihans smart field concept

Campaign and condition based maintenance in Tampen

Remove turnarounds

Remote operation of wells and process facilities on Tampen

ICT infrastructure enabling 24/7 onshore operations centers

Integrated Operations 2008 Goals

Field of tomorrow – business for the future

Increased recovery factor: 2-5%

Increased daily production: 5%

OPEX reduction: - 30%

Reduction in HSE related unwanted events: - 50%

Integrated Operations 2008 Business drivers