Baker Hughes & WITSMLBaker Hughes & WITSML

John ShieldsJohn Shields

Baker HughesBaker Hughes

HoustonHouston

Baker Hughes BEACON ServicesBaker Hughes BEACON Services

INTEQINTEQ

Baker Baker AtlasAtlas

Baker Oil ToolsBaker Oil Tools

1997

Initiated Project Team

BPs OOC 6 wells for BP and Norsk

Hydro

BP and Norsk Hydro

on Board

1998

Pilot Centre: 24 hrs Remote

OperationMWD & DA

2000

Norwegian Government White Paper

2001 2002 2003

BEACON BEACON Phase 2Phase 2

pilotpilot

BEACON 2Planning

BEACON Phase1

Commercial

15 Rig Capacity for new

BEACON Centre,

9 years and > 70 wells - 350,000m drilled9 years and > 70 wells - 350,000m drilled

BEACON HistoryBEACON History

BEACON BEACON Phase 2Phase 2

CommercialCommercial

2004 2005

BEACON BEACON 2006: 10 opr2006: 10 opr2007: 13 opr2007: 13 opr

2006…

BEACON Norway program for 2006BEACON Norway program for 2006

Rig Customer Location Services Oseberg B Hydro Oseberg DD/MWD/LWD/ML Grane Hydro Grane DD/MWD/LWD/ML + Geosteering West Venture Hydro Troll DD/MWD/LWD/ML + Drilling Optimisation Stena Dee Hydro Troll DD/MWD/LWD/ML + Drilling Optimisation Deep Sea Trym Hydro Troll DD/MWD/LWD/ML + Drilling Optimisation Bideford Dolphin Hydro Fram DD/MWD/LWD/ML + Geosteering Oseberg East Hydro Oseberg Full integrated service - ISD* BP-Andrew BP UK DD/MWD/LWD/ML Shell – Gant Shell UK ML Valhall – WIP BP Valhall DD/MWD/LWD/ML + Drilling Optimisation

Rig Customer Location Services Oseberg B Hydro Oseberg DD/MWD/LWD/ML Grane Hydro Grane DD/MWD/LWD/ML + Geosteering West Venture Hydro Troll DD/MWD/LWD/ML + Drilling Optimisation Stena Dee Hydro Troll DD/MWD/LWD/ML + Drilling Optimisation Deep Sea Trym Hydro Troll DD/MWD/LWD/ML + Drilling Optimisation Bideford Dolphin Hydro Fram DD/MWD/LWD/ML + Geosteering Oseberg East Hydro Oseberg Full integrated service - ISD* BP-Andrew BP UK DD/MWD/LWD/ML Shell – Gant Shell UK ML Valhall – WIP BP Valhall DD/MWD/LWD/ML + Drilling Optimisation

Integrated Service DeliveryIntegrated Service Delivery– DD, MWD/LWD, ML, Fluids, Completion DD, MWD/LWD, ML, Fluids, Completion – Detailed planningDetailed planning

10 operations10 operations 2 in UK2 in UK

Norsk Hydro WITSML Wells in 2006Norsk Hydro WITSML Wells in 2006

Field Rig Number of Wells Number Of Runs

Fram Bideford Dolphin 8 17

Grane Grane 12 29

Njord Njord 2 8

  Njord A 1 6

Oseberg Deep Sea Delta 2 6

  Deepsea Delta 4 8

  Oseberg B 3 18

Troll Deep Sea Trym 5 20

  DeepSea Trym 2 3

  DS Trym 3 10

  Songa Dee 4 13

  Stena Dee 6 22

  West Venture 7 29

Total   59 189

Other WITSML Customers include Statoil, BP, Shell and Marathon

IO Development G1 and G2IO Development G1 and G2

Time

2010 20152005

Generation 1

Integration across on- and offshore

Limited integration

Generation 2• Integrated operator and vendor processes and centers

•Digital services and 24/7 operations

Integration across companies

• Integrated onshore and offshore processes and centers

•Continuous onshore support

•Self-sustainable fields

•Specialized onshore units

•Periodic onshore support

Traditional practices

Value

Source: OLF

BEACON

Phase 1

BEACON

Phase 2

BEACON Phase 2Oseberg

East

BEACON

Phase 1

Offshore

BEACON Phase 1BEACON Phase 1

Personnel reductions offshorePersonnel reductions offshore

Successfully fulfilled > 50 wells and Successfully fulfilled > 50 wells and

> 250,000 m> 250,000 m

Network reliability proven to be Network reliability proven to be

sufficient sufficient

Changes to work processes and Changes to work processes and

efficiencyefficiency

Some competence improvements Some competence improvements

DDx 2RPS 1LG 2Other* 0-3

*: CoPilot, TesTrak, etc

MWD 2DO 2

Offshore (24-7)

Onshore (24-7)

Major changesMajor changes

– New work processesNew work processes

– Improve SpecialisationImprove Specialisation

– Increased emphasis on cross trainingIncreased emphasis on cross training

Results – New Work DisciplinesResults – New Work Disciplines– Offshore: Advantage Real Time Engineer (ARTE)Offshore: Advantage Real Time Engineer (ARTE)

Combined MWD/ML positionCombined MWD/ML position Focus on data acquisitionFocus on data acquisition Rig basedRig based

– Onshore: BEACON EngineersOnshore: BEACON Engineers High focus on services and information quality High focus on services and information quality Support multiple rigs and customersSupport multiple rigs and customers Shore basedShore based

Improvements Improvements – 24-7 operational environment onshore24-7 operational environment onshore

– Optimizing work processes and efficiencyOptimizing work processes and efficiency

– Improved competence and capacityImproved competence and capacity

– Reduced personnel on board (POB)Reduced personnel on board (POB)

– Enhanced service qualityEnhanced service quality

BEACON Phase 2BEACON Phase 2

24-7RealTime focus

24-7RealTime focus

24-7Services and

information quality

24-7Services and

information quality

Dedicated supportDedicated support

BEACON phase 2 – Oseberg EastBEACON phase 2 – Oseberg East

Project Management (PM) 1+

Drilling Optimisation engineer 1Well Placement Coord (WPC) 1

Customers office (8-5)

+

Full integrationFull integration– Drilling Fluids / CmtDrilling Fluids / Cmt– Completion (Csg exit, Liner, Completion (Csg exit, Liner,

TCP, IWS)TCP, IWS)– Drilling contractorDrilling contractor

Tot crew drilling = 36Tot crew drilling = 36 TOT BH crew TOT BH crew ~ 6 - 7~ 6 - 7

Full integrationFull integration– Drilling Fluids / CmtDrilling Fluids / Cmt– Completion (Csg exit, Liner, Completion (Csg exit, Liner,

TCP, IWS)TCP, IWS)– Drilling contractorDrilling contractor

Tot crew drilling = 36Tot crew drilling = 36 TOT BH crew TOT BH crew ~ 6 - 7~ 6 - 7

DDxc* 2ARTE** 2Fluids Specialist*** 2/1Completion Specialist**** 2

* Crosstrained DD/CoPilot/ML** Crosstrained MWD/ML*** All Fluids incl Cmt**** All Completion services

Offshore (24-7)

Geoscience Applications Eng

DO Applications Eng

Technical support for D&E

Completion tech support

Fluids services support

Onshore (24-7)

BEACON onshore servicesBEACON onshore services

Focus on 3 main elementsFocus on 3 main elements– Geoscience Applications EngineeringGeoscience Applications Engineering

– Drilling Optimisation Applications EngineeringDrilling Optimisation Applications Engineering

– Tech Support for D&E, Logging, Fluids and CompletionTech Support for D&E, Logging, Fluids and Completion

Applying 24-7 Real-time solutions to maximize valueApplying 24-7 Real-time solutions to maximize value 33rdrd party applications can share data via WITSML party applications can share data via WITSML

Geoscience Drilling Optimisation Tech Support

1.1. 3.3.2.2.

3-D visualization of Completion

Close-up of completion elements

BEACON ResultsBEACON Results

HSEHSE– 40,000 fewer offshore hrs40,000 fewer offshore hrs

– 600 fewer helicopter trips600 fewer helicopter trips

– Enhanced crew availabilityEnhanced crew availability

Human FactorsHuman Factors– New career opportunities with more responsibilityNew career opportunities with more responsibility

– Improved utilisation of senior personnelImproved utilisation of senior personnel

– Greater technical competency and wider professional Greater technical competency and wider professional knowledgeknowledge

– Improved team work internally and towards CustomerImproved team work internally and towards Customer

Technical and OperationalTechnical and Operational

– Repeatable high quality of information deliveriesRepeatable high quality of information deliveries– Catalyst for further technical development, e.g. WITSMLCatalyst for further technical development, e.g. WITSML

– More focus on improved QA/QC real-time data More focus on improved QA/QC real-time data

BEACON ExpansionBEACON Expansion

North America - HoustonNorth America - Houston– Supports worldwide operationsSupports worldwide operations

Saudi ArabiaSaudi Arabia– Rapid expansionRapid expansion

– Need to keep data within countryNeed to keep data within country

AberdeenAberdeen– Support for West Africa operationsSupport for West Africa operations

Other AreasOther Areas

Continuous evolution of BEACON during 9 years built on Continuous evolution of BEACON during 9 years built on

proactive dialogue with Customersproactive dialogue with Customers

BEACON has completed first generationBEACON has completed first generation

BEACON Phase 2 is close to industry definition of Generation 2 BEACON Phase 2 is close to industry definition of Generation 2

Integrated OperationsIntegrated Operations

With Oseberg East we will deliver Generation 2With Oseberg East we will deliver Generation 2

WITSML is a key technology to enable Integrated OperationsWITSML is a key technology to enable Integrated Operations

SummarySummary