R E A L T I M E F I E L D M A N A G E M E N T

Petroleum Experts

The Digital Oil Field

The Digital Oil Field

When we talk of the digital oil field (DOF)

what do we mean?

Digital Oil Field production software applications capturethe behaviour of the oil field on the PC. The applicationsare used as an on-line management system of the oil andgas company’s assets throughout the assets’ entire lifecycles.

The Petroleum Experts’ digital oil field technology providesan enterprise-level, vendor-neutral approach to visualisingreservoir, wellbore, and gathering facility information. Ourapproach enables rational decision making through the useof models, workflows, and intelligently filtered data withina multi-disciplinary organisation of diverse capabilities andengineering skill sets.

Core elements of the Petroleum Experts’

Digital Oil Field:Visualisation - Provides a coherent view of an oil field. Datasets are integrated, including the engineering models andproduction and economics information with visualisationcapability in an organised way. The power of a single assetand data model permit, with a push of a button, the visualscreens to be upgraded and extended automatically as theoil field develops.

Engineering and Business Management Logic - The tasksand procedures, i.e. workflows, that the teams carry out to monitor, operate, optimise, and develop the field areautomated through a layer of logic, business, and engineeringworkflows. This layer establishes common best practicesacross the global organisation using standard workflows

that are out-of-the-box best-practice procedures for fieldsurveillance, optimisation, diagnostics, allocation, andforecasting. Custom workflows can be easily added to thelogic layer by the user. The automation of standard tasksfrees the engineering and management teams toconcentrate on much higher added-value activities.

Organisation and Auditing - Alignment of the teams,processes, and the technology is core to any successful digitaloil field implementation. A single repository of the models,data, and information for a field allows the organisation to develop a consistent and coherent view of their asset.This common official field representation, the virtual field,records an auditable history of the field over its life. The useof a centralised model and data catalogue can help reducethe “siloed” view of single technical disciplines. Moreover,storing the field events and recording the decisions associatedwith those events become the foundation for engineeringknowledge capture required for an “expert” system.

Data Management - Today, the instrumented fields have a huge volume of measurements coming from wells andequipment sensors – often millions of data points per minutefrom a single field. Making the relevant measurement anddata (validated measurements) available at the frequencyrequired necessitates sophisticated data storage, management,cleansing, and filtering of the data. In order to be suitablefor the required tasks, a scalable, upgradable, and extensibledata technology has to be at the heart of effective long-termdata management. Therefore, productising of the datamanagement through a single-asset data model is fundamentalto any successful Digital Oil Field implementation. Otherwise,the implementations become highly customized, lengthy,very expensive, and, oftentimes unsustainable.

The Virtual Field - This is a physical representation of thefield through a set of models, i.e. mathematicalrepresentations of each component of the field. In the virtualfield, reservoir, production, injection network, wells, process,economics, and planning tools are each integrated with oneanother. These multi-vendor sets of steady and transientmodels are dynamically linked as an Integrated ProductionModel to represent and capture the current field response,as well as to optimise field production and run forecasts.

Visualisation of field data, analysis, trends at all levels in real time

The Structure of the Digital Oil Field

Historically, Petroleum Experts pioneered integrated production

modelling and management. Today, Petroleum Experts continues to lead theway in integrating these models into a digital oil field system. Diagnosis, validation, and - most importantly - optimisation of the field production are done automatically usingreal-time data.

This concept has been developed as a product as opposed to a project. This approachfacilitates very short deployment times (weeks instead of months or years), upgrades, aswell as an inherent capability to scale the system up. Automatic data model management,auditing of models, and intelligent data gathering allow the engineers to focus on higheradded-value activities. The system also supports the distribution of best practices across theenterprise through the use of workflows.

3

4

Visualisation - Digital Oil Field

Scalable Visualisation technology by Petroleum Experts

supports multiple windows — everything from virtual reality

to spreadsheets, teleconferences, and the handheld

phone — all driven by the familiar interface. The use of

Petex’s digital oil field technology yields an overall

operational visibility on a massive scale. Desktop display

systems, which are easily scalable, promote information

sharing between remote sites and can be easily

integrated into the users’ existing network infrastructure.

This sharing capability enables geographically dispersed

workgroups and international teams to be more

productive by allowing them to work collaboratively.

The visualisation layer is a standalone Petroleum Experts productthat brings together intelligently filtered data, information,and results from multiple vendors and data sources.

Petex have set three criteria as the foundation in developingits Digital Oil Field technology. The underlying field, types ofmodels), and information (data) evolve over time. Therefore,an effective DOF product must deliver the followingfundamental criteria:

Maintainability of the real time data collection system - e.g.how we add equipment such as wells, compressors, etc. to the DOF system as the field is developed. This type ofongoing “maintenance” should be straightforward withoutrequiring the time and cost of a 3rd party vendor to updateand maintain field system and tag data of the asset model.Adding equipment from the asset model (propagation) to thevisualisation layer needs to be as easy as a “push of a button”.

Scalability - one field may have 10 wells and one reservoirwhile another may have 100 to 1000 wells and multiplereservoirs. Unless the DOF system is developed to be scalable,it will not be deployed easily to multiple fields per year.System implementations will be limited by resources - skilledpeople. The Petex DOF suite is designed to be scalable, andas “products”, they can be deployed and configured indays–even for large fields and systems.

Upgradability of the system. The Petex DOF suite is designed tobe upgraded at the click of a button for new software versionsor the addition of tools and capabilities. A system that cannotbe easily upgraded will always be at risk of becoming obsolete.

Key Performance indicators (KPIs)

Wells’ KPI

Visualisation create value by linking operations, studies groups,

managementas as part of global multi-disciplinary organisation using

consistent information

Visualisation of field data, analysis, and trends at all levels in real time

The Role of the Visualisation System

Visualisation - The visualisation layer is the face of the Digital Oil Field. It provides a visualrepresentation of the underlying engineering logic, data management, and models tofacilitate the effective monitoring, management, and operation the field by theorganisation. The visualisation layer also provides a coherent view of an oil field by

integrating data sets (e.g. engineering, production, economic, etc.) with a visualisationcapability in an organised way. With visualisation technology, data and results are exposedto engineers, operators, managers, and any other ‘users’ of the system in visual formatswhich can be easily configured.

5

6

Engineering and Business Management Logic

The Petroleum Experts’ digital oil field technology

provides an enterprise-level, vendor-neutral approach

to visualising information. The Petex approach enables

rational decision making through the use of integrated

models, workflows, and data within a multi-disciplinary

organisation of diverse capabilities and engineering

skill sets.

In reaching its targets, the modern oil and gas industry facesgreat challenges in managing assets in conventional fields andunlocking the potential in what was previously considerednon-economic fields. The industry faces challenges in:

• supporting field developments with functional specialists remote from the asset and operations

• demographics of its ageing workforce

• more data/information to process

• large uncertainties with the billion-dollar new developments

• a shortage of skilled professionals

• information and knowledge that is not often shared–creating competing and, at times, contradictory agendas.

The Digital Oil Field technology of Petroleum Experts isdesigned to provide the field and model managementactivities under one platform as standard out-of-the-boxworkflows. Model management updates are automatedusing real-time data and operational information. Engineersare now able to focus on added-value (i.e. productionoptimization) activities and analysis while allowing the DOFplatform to process the data and workflows. The workflowsreport the results, exceptions, and any technicalrecommendations for the engineer to further analyse.

The standard activities (workflows) for all oil and gas fields are:

• Field Surveillance: Understanding how the field is performing (production system surveillance, reservoir surveillance, etc.)

• Optimisation: Improving field performance (short-term and/or long-term optimization)

• Forecasting and performing “what if” scenarios: Predicting how the field will behave under different conditions (field development analysis, business planning, life of field forecast, and sensitivity / uncertainties analysis).

The Petroleum Experts DOF technology provides a platformfor executing model-based workflows. The workflowsinclude: model management, rate estimation, model-based surveillance and diagnostics, allocation, optimisation, forecasting, and custom (client- or asset-specific workflowsas defined by the user).

Petroleum Experts’ Integrated Field Management approachis productised. The entire system becomes completelysupportable by the client’s company after implementation.That means that clients avoid the requirements, delays, and costs associated with external 3rd parties typicallyencountered in custom written and integrated alternatives.The Petroleum Experts DOF technology is completelyscalable. It automatically creates data model objects, which,in turn, means that when a new well or equipment iscreated, they are automatically reproduced and can be usedanywhere in the system. Moreover, upgrades are achievedby a push of a button which migrates the databases andinstalls the executables without losing any of the previousconfigurations.

Monitoring the operating point of equipment in real time (ESP)

The standard logic for model

updates, optimisation, well rate

allocation, and forecasting

The Petex Digital Oilfield Architecture

Real Time Field Management Through Standard Workflows

Engineering and Business Management Logic – The tasks and procedures, i.e.workflows, that the teams carry out to monitor, operate, optimise, and develop the fieldare automated through a layer of logic - business and engineering workflows. Thisestablishes common best practices across the global organisation using standard

workflows that are out-of-the-box best-practice procedures for field surveillance,optimisation, diagnostics, allocation, and forecasting. Custom workflows can be easilyadded to the logic layer by the user. The automation of routine tasks frees theengineering and management teams to concentrate on the added-value activities.

7

8

To manage and operate a field, Petroleum Experts

developed a suite of modelling tools, which are the

best-in-class and recognised by the oil and gas industry

as its global standard. These tools carry out the

calculations required to diagnose, analyse, model,

allocate, and optimise the production. They do that by

using robust engineering, fluids, and physical models.

The Petroleum Experts IPM suite can be integrated with

third party applications. Many of Petex’ customers have

IPM implementations that are integrated with the main

industry reservoir and process simulators and other

transient and steady state technologies.

Summary of the IPM suite of tools:RESOLVE is the advanced engineering studies tool forintegrating models with events, scheduling, and scenariosthat can be launched on standalone PCs or on computerclusters. The underlying IPM and third party models forreservoirs, producers and injectors, surface gatheringnetworks, and process and economics are integrated throughRESOLVE. The PVT can be black oil to fully compositionalwhere proprietary lumping-delumping techniques are used.RESOLVE also provides the fastest and most advancedglobal optimisation techniques found in the industry.

GAP is the multiphase oil and gas, non-linear optimiser toolthat models the surface gathering network of fieldproduction and injection systems. Linked with the wellmodels of PROSPER and reservoir models of MBAL a fullfield production optimisation and forecast are provided.GAP can model oil, gas, and condensate productionsystems in addition to gas or water injection systems.

PROSPER is the industry standard for modelling wellperformance, well design, and optimisation for most typeswell configurations found in the worldwide oil and gasindustry today.

MBAL is the analytical reservoir model, which helps theengineer better define reservoir drive mechanisms andhydrocarbon volumes. While MBAL encompasses theclassical reservoir engineering tools, it also has many built ininnovations that have redefined the use of material balancein modern reservoir engineering.

REVEAL is the specialised study reservoir simulation modelfor understanding the more complex physical phenomenaof well and reservoir response. REVEAL combines reservoirclassical numerical simulation with the thermal, geo-mechanics,and chemical effects within one reservoir simulations.

PVTP is the tool production and reservoir engineers use topredict, with great accuracy and speed, the effect ofprocess conditions on the composition of hydrocarbonmixtures. The compositional behaviour of complex mixturesincluding gas mixtures, gas condensates, retrogradecondensates, volatile oils, black oils, and flow assurance canbe interpreted and predicted with confidence.

OpenServer is the open standard protocol tool that willrun any IPM application from outside of the IPM suite or aspart of a third party tool.

The Virtual Field

Modelling: from reservoir all the way to the process The IPM suite

The IPM and Third Party Engineering Modelling Tools

Petroleum Experts’ Integrated Production Modelling suite (IPM) is deployed on itsown or as part of set of multi-vendor modelling applications that capture the fullcharacteristics and response of the field, the Virtual Field. Having a model of the field is aprerequisite for implementing the “Digital Oil Field”. The IPM suite is the industrystandard integrated production modeling suite for oil and gas companies.

The Virtual Field - is a physical representation of the field through a set of models, i.e.mathematical representations of each component of the field - from reservoir, productionand injection network, and wells, to the process, economics, and planning tools.

9

10

The Organisation

The overall objective of a company or an asset team isgenerally clear, i.e. the commercial and technical drivers areunderstood. However, an individual or a particular set oftechnical disciplines may often have a limited view andunderstanding of the field reality to make the correctdecisions. Also, the correct information is often not readilyavailable.

The diagram below illustrates, in a simplistic way, thechallenges of successfully implementing the digital oil field.

The structure of the Digital Oil Field architecture set out inthese pages (the managed environment of common datamanagement, model management, standard workflows,and a visualisation system) provide the technical frameworkfor a DOF implementation. This framework is the enablerthat will allow the organisation to better analyse, manage,and operate their field.

This single view, the Virtual Field, is composed of theengineering models, reports, spread-sheets, and associateddata accessed and maintained through a central repository.Most importantly, they can all be easily updated andmaintained as the field is developed and produces.

Centralised Model Management - ModelCatalogue

Petroleum Experts’ ModelCatalogue provides the centralrepository that facilitates an up to the minute clearerunderstanding and awareness of the field::

• Provides controlled access to the individual models, reports, data, and even schematics (different privileges according to the engineers’ roles);

• Ensures only one engineer can perform changes to the ‘official’ model at a given time;

• Ensures seamless sharing of models. • Automatically keeps track of the evolution of all models

versus time and provides access to historical versions if required

• Provides seamless access to any on-line system which will be consuming these models to carry out calculations;

• Keeps track of who and why changes were performed (for auditing and knowledge base development)

• Allows the association of models with their corresponding input data to keep both models and context data related. For example, the PVT reports, Well and Equipment Drawings, deviations surveys, and other documents can be kept catalogued within the same Model Management System.

Knowledge Capture

Engineering know-how and experience are of paramountimportance for the oil and gas companies. The growingscarcity of experienced workers is creating an experiencegap that Integrated Field Management technology will helpto bridge. Capturing the “expert knowledge” in anorganised and structured manner and supportingcollaboration reliably and securely in real time becomes keyto increasing productivity and fueling a company’s ability togrow. The “expert knowledge” capture within thePetroleum Experts’ DOF philosophy is supported byintroduction of individuals’ experience into workflows andanalysis.

The technology described here has proven itself to be apowerful “enabler” - a catalyst – for the creation of theorganisational thinking and transparency required for thesuccessful implementation of the digital oil field vision.

The combined engagement of the organisations’management, at all levels, as well as the asset teammembers will ensure actions are transparent, knowledge is shared, and decisions are made with all the availableinformation. This will facilitate the achievement of the DOF added-value objectives.

Common Model and Data Source

A Data Structure for the ModelCatalogue An Organisation: Alignment is a Challenge

The engagement of the organisation is critical

Organisation and Auditing – Alignment of the teams, processes, and the technology iscore to any successful digital oil field implementation. A single repository of the models,data, and information for a field allows the organisation to develop a consistent andcoherent view of their asset. This common official field representation, the virtual field,

records an auditable history of the field over its life. The use of a centralised model anddata catalogue can help break-down the “siloed” views of single technical disciplines.Moreover, storing the field events and recording the decisions is the foundation forengineering knowledge capture required for an “expert” system.

11

The Petroleum Experts’ Digital Oil Field (DOF)

technology enables the transformation of the myriad

of different types of data using standard industry

applications alongside the Petex tools as will be needed

by the DOF system described in this document.

Data Management, as part of the digital oil field, hasseveral key components:

• The historians, databases, and data storages – all designed to store the real time, as well as operational and associated static data, files, and information for the asset;

• The production data management system (PDMS);• The data-processing layer provides filtered and partially

processed data to the users.

The Historian and Production Data Management System

There are a number of historian and PDMS systems in theindustry, which capture raw data, process and storeinformation, provide corporate allocation, etc. as well assupplying varying levels data processing, cleansing, andfiltering. In the context of the DOF, a sophisticated level ofdata cleansing and data filtering is deployed by Petex toanalyse raw data, capture the meaningful field events, andprovide meaningful correctly representative filteredinformation.

Data Filtering and Cleansing

The filtering methodology developed by Petex uses aunique proprietary, as well as the more common publishedfiltering methodologies. Petex’s proprietary method providesmore sophisticated filtering, using the raw data, physicalmodel responses and “expert” system to detect changesand hence rationalise data, based on event-driven activitiesand trends, as illustrated below, right.

To detect field events, e.g. equipment performancechanges, or to trigger valid alarms, may require raw data to be analysed at a later time, evaluating historical trendsand the physical models to determine ifsomething has happened or changed. Thisis smart filtering. This robust data filteringsolution interprets the multitude of datastreams to ensure the relevant data issupplied to enable decision-making:

High Frequency Data

(e.g. measurements coming from thefield, including current field conditions,field equipment performance, etc.)enables: alarm monitoring, eventdetection, and well test analysis.

Low Frequency Data is used for thePhysical Models and to support processingof field data to convert it into meaningfulengineering information to be able topredict how the field will respond whenconditions change.

Single Asset Data Models for the Digital Oil Field

A challenge for any DOF system is handling the datarequirement of multiple applications and users. Typically,this requires data to be input in several location. Petex has created one data or asset model, which is propagatedthroughout the system, i.e. if a well or a piece of equipment is added, the information is automatically madeavailable for each part of the DOF system to use. Moreover,the same concept is used to link the external PDMS andHistorians systems using data wizards to configure the tagsand required links. The wizards follow a step-by-steppattern to meet the objective of establishing and testingconnection to the external data sources through to tagmapping and configuration of data retrieval. Any new tagmappings, modifications to existing tag mappings, fieldmeasurements or equipment can be easily added managedthrough the wizards.

12

Data Management

The data management structure Advanced filtering and data cleansing uses sophisticated Petex proprietary techniques

Data Storage, Data Cleansing and Data Filtering

Data Management – Instrumented fields have a huge volume of measurements comingfrom wells and equipment sensors – often millions of data points from one field, perminute. Making the relevant measurement and data (validated measurements) available at the frequency required, necessitates sophisticated data storage, management, cleansingand filtering of the data, suitable for the required tasks.

A scalable, upgradable, and extensible data technology has to be at the heart of effectivelong-term data management, hence productising of the data management through a single-asset data model is a fundamental.

13

14

Notes

Web: www.petroleumexperts.com2012 (R2)

Regional OfficesPetroleum Experts Inc.757 N. Eldridge Pkwy. Suite 510Houston, Texas, 77079USATel: +1 281 531 1121Fax: +1 281 531 0810e-mail: houston@petex.com

Petroleum Experts Inc.400 E. Kaliste Saloom RoadSuite 2100Lafayette, LA 70508USATel: +1 337 524 1034Fax: +1 337 524 1035 e-mail: lafayette@petex.com

Head OfficePetroleum Experts Ltd.Petex House10 Logie MillEdinburgh, EH7 4HGScotland, UKTel: +44 (0) 131 474 7030Fax: +44 (0) 131 474 7031e-mail: edinburgh@petex.com

Petroleum Experts