Integrated Operations and the use of WITSML in Statoil

WITSML meeting, October 19, 2006

Peter Eilsø Nielsen (pen@statoil.com)

Senior Advisor Subsurface Work Processes

Process Owner Exploration and Reservoir Technology

IO: from ambition to integrated action

• Land based support• Real time data• Increased interaction• Production optimization• Condition based monitoring from shore• Training• Cooperation rooms

• Experience transfer• Better use of vendors• 24/7 support on request• Standardization of toolbox• Wireless technology

• Operation 24/7• Certifying of competency• Integrated management• Real time 3-D models• Virtual cooperation arena• Remote support from vendors

Efficient support

Integration between licensees

Geographical independence

Statoil’s prioritized IO activities

R&DR&D

Pilots Pilots

Implement Increase skills in using Statoil’s IO software (Subsurface)

Optimize production through teamwork based on real time data (O&M, Subsurface)

Real time data used actively for onshore support in all drilling projects (Subsurface)

Condition monitoring of rotating equipment from onshore (O&M)

Implement work processes to reduce offshore travel for onshore based Subsurface personnel

Increase skills in using Statoil’s IO software (Subsurface)

Optimize production through teamwork based on real time data (O&M, Subsurface)

Real time data used actively for onshore support in all drilling projects (Subsurface)

Condition monitoring of rotating equipment from onshore (O&M)

Implement work processes to reduce offshore travel for onshore based Subsurface personnel

Improved uncertainty and risk assessments by utilizing new software (Subsurface)

Implement new software to optimise production in OSC (Subsurface)

Test simultaneous work processes for planning/ operations of drilling and well interventions (Subs.)

Remote control and optimisation of smart wells from onshore (Subsurface)

Condition monitoring of fiscal systems from onshore (O&M)

Condition monitoring of valves from onshore (O&M)

Condition monitoring of static equipment, including separators, from onshore (O&M)

Improved uncertainty and risk assessments by utilizing new software (Subsurface)

Implement new software to optimise production in OSC (Subsurface)

Test simultaneous work processes for planning/ operations of drilling and well interventions (Subs.)

Remote control and optimisation of smart wells from onshore (Subsurface)

Condition monitoring of fiscal systems from onshore (O&M)

Condition monitoring of valves from onshore (O&M)

Condition monitoring of static equipment, including separators, from onshore (O&M)

Develop real time production and process optimisation, including simulations (O&M, Subs.)

Develop subsurface models that can be updated in real time (Subsurface)

Develop fluid front monitoring (4C – 4D) for fields in production (Subsurface)

Develop methods for early fault detection (O&M)

Develop real time production and process optimisation, including simulations (O&M, Subs.)

Develop subsurface models that can be updated in real time (Subsurface)

Develop fluid front monitoring (4C – 4D) for fields in production (Subsurface)

Develop methods for early fault detection (O&M)

1.1

1.2

1.3

1.4

1.5

1.1

1.2

1.3

1.4

1.5

2.1

2.7

2.2

2.3

2.4

2.5

2.6

2.1

2.7

2.2

2.3

2.4

2.5

2.6

3.1

3.2

3.3

3.4

3.1

3.2

3.3

3.4

The numbering and order of items represents no prioritization or importance of the key areas O&M – Operations and Maintenance

Facilities and IT equipment – onshore offshore

Results – Production optimization on Heidrun

• Improved collaboration onshore and onshore/offshore

– Better cross-disciplinary understanding

– Working as one team

”This way of working has lead to a more open, tighter and better dialogue onshore/offshore. The

consequense is increased production under safer producing conditions”

Production leader at the Heidrun TLP

• Increased oil production by 6% in 2006 => +500 000 Sm3/year

eField drivers

Integrated Operation and economy

•NPD and OLF has calculated the value of IO on the Norwegian

shelf to be 40 billion USD

•Statoil’s anticipated IO-potential is more than 50 % of the above

•External review of the Integrated Operations efforts on one of our

major fields calculates the value created to close to 1 billion USD,

with a further potential of 0,7 +\- 0,4 billion USD

Current status on the use of WITSML in Statoil

Overal use of WITSML in Statoil

•Statoil have transferred information

from 300+ wells with the use of WITSML

(and stopped counting)

•Incorporate all wells operated by Statoil

in the Norwegian sector

•Incorporate a growing amount of wells

internationally (Iran, Venezuela, Angola

etc.)

Current situation from our IT real time support centre in Statoil

•Period 1/6-06 to 31/8-06:

– WITSML = 29 wells

– = 85 191 m WITSML stream

– = 255 571 ft WITSML stream

PROBLEMS with the start of 50% of these streams due to lack of

automation

Challenges with real-time WITSML stream

•Still many manual operations to set up and maintain the real-

time stream

•WITSML not properly supporting automisation

•Applications is not properly supporting real-time data

•Some of the products in the data stream are not built to support

multiple well streams (up to 20 simultaneous wells)

•Manual work needed to handle dialects of WITSML and multiple

versions in use

Good thing about the real-time WITSML stream

• It does its job of transporting data to the

end users in the operations centres in

Statoil

• The users are getting used to the use of

real-time data due to every well being

transferred in real-time (it drives habits)

• It is one of the cornerstones in

harvesting the overall value of

Integrated Operations