<PRODML/> - Industry Standard

<PRODML/>PRODuction xML Standard

OverviewRick Morneau

Transformational Information Technology Focus Area Manager

Chevron Energy Technology(on behalf of the PRODML Community)

<PRODML/> - Industry Standard

<PRODML/> Agenda

What is PRODML Motivation Scope Proof of Concept Pilot - 2006 Current Status Summary

<PRODML/> - Industry Standard

<PRODML/>What is it?

A shared solution for information exchange allowing Upstream Oil & Gas Companies more easily execute those software applications used to optimize production Production optimization involves integrating real

time data from specialty, multi-vendor software applications and streamlining work processes to enable oil and gas field operational efficiencies

A project that will develop software products to improve data exchange and work process efficiency in production optimization

<PRODML/> - Industry Standard

Motivation … <PRODML/> Optimization

0.0

0.5

1.0

1 7 13 19 25Time

Oil

Pro

du

ctio

n

.

True Production Potential Periodic Manual Optimization No Optimization Activity

Modified from Ron Cramer, Shell Global Solutions

<PRODML/> - Industry Standard

<PRODML/> MotivationIntegration Between Operators & Vendors

Vendors and operators act as systems integrators

Must address issues such as: Remote maintenance

& privacy Software robustness Data quality &

attributes Changes in versions

Vendor #1 Reservoir Simulator

Vendor #2 Well Model

Vendor #3 Historian

Vendor #4 Optimizer

Vendor #5 Network Model

Vendor #6 Reservoir Simulator

Vendor #7 Alerting Tool

Vendor #8 Daily Reports

Vendor #9 Collaboration Environment

Operator Applications

“Solution”

Integrator

From Stan DeVries, Invensys

<PRODML/> - Industry Standard

<PRODML/> MotivationEfficiency = time and money

Up till now, oil companies and service providers wasted time and effort converting common data PRODML will allow the transfer of production data

more easilysaving money across the industryallowing us to concentrate on the real business, not data

management

The Bottom-Line PRODML is in our business interest

7

GatheringSeparation & Distribution

Injection (Water, Steam, CO2)

Water Handling

GasTreating Facilities

OilTreatingFacilities

GasExport

Facilities

OilExport

Facilities

Reservoir Management:

Gas & OilContract

Deliverability

The Production Domain

Initial Scope

•From bottom of the well to initial separation

•Decisions we can effect in a day

<PRODML/>Producing Asset Scope

<PRODML/> - Industry Standard

<PRODML/>Chevron 2006 Pilot

Make it real Real Problem – water handling Real Data – used all data from existing field Real Data Volumes - ~ 1000 producing well and ~ 700 injection wells Real field time – SCADA (minutes) & well tests (daily)

<PRODML/> - Industry Standard

<PRODML/>Chevron 2006 Pilot

Problem Statement Producing water – need to handle Produced water Inject it Store in tank Store (inject) in disposal wells

<PRODML/> - Industry Standard

Pass tank forecast

Data Integrator

Chevron Proof of Concept Pilot

InvensysFacility SCADA History

WeatherfordWell TestHistory

Local System (SS)Field Oil Sales / Inventory

History

Local SystemField Gas Sales History

WeatherfordStatusHistory

Energy ComponentsDaily Allocation / Status / Well Listing

WeatherfordLOWIS

Well StatusForecast

HalliburtonDSS

Well ProductionForecast

InvensysInFusion

TankForecast

InvensysNotification

2b

4a

2a

71

5a

8a

9a

10

6a

11

12a

1 Trigger: Clock set for once a day

2 Get tank data (7 days)

3 Model: 7 day tank forecast

3

4

4b

5 Alarm to notification

5b

8 Get Field forecast 8b

9 Get allocated production1000 wells

9b

10 Model: 7 day production forecast

6 Get well status forecast

6b

7 Model: Maintenance forecast

11 Model: Well vs. Facility

12 Consolidate data

12b

GetD

ataSync

GetDataAsyncGiveData

GiveD

ata

GetDataSync

GiveData

GetDataSync

<PRODML/>PRODuction xML Standard

<PRODML/> - Industry Standard

<PRODML/>Chevron 2006 Pilot

Result Complete Success Demonstrated scalability Provided Confidence

<PRODML/> - Industry Standard

<PRODML/>Chevron Current

Complete PRODML Training Actively participating in PRODML ’07 Work Group Actively participating in PRODML SIG Actively planning PRODML ’07 Work Group Pilot

<PRODML/> - Industry Standard

<PRODML/>2006 Goals when we started

Summary of 2006End goals

Commercial applications (not a stack of paper)Change the software landscape in upstream operations

Completion target of September 2006After September, identify next high value

itemsIncrease Industry participation

www.prodml.org

<PRODML/> - Industry Standard

Thank YouRick Morneau