MOBPTECH Overview Presentation

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POSC Presentation, London, 10th December 1998

E P Technology Cooperative Programme
MoBPTeCh will collaboratively drive the creation
of radically new technologies for substantial
economic impact to our businesses, while
continuing to compete vigorously in the speed of
application to our own assets
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Why MoBPTeCh? Why Now?

• Companies believe collaborative philosophy
• Strategic fit
• Facing huge challenges
• Mature reservoirs
• Deep water
• Stranded gas and heavier oil
• Sustained low oil prices
• Critical skills shortage
• Very creative solutions required

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MoBPTeCh Vision

• increasing shareholder returns
• sustained low oil prices
• maturing assets
• bold and innovative management

• single most powerful opportunity
• efficient global marketplace
• duplicate spending
• communicate our common needs

• tackle challenges
• assemble best talent
• focus on common goals

• radical new technology
• lower cost and shorten lead time
• shift to entrepreneurial approach

• devotion of the time and resources necessary to
• turn our common intent into reality

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MoBPTeCh Charter

• upstream oil/gas
• grand challenge scale

• create radical new technology
• materially impact business performance
• shift industry to more innovative stance

• Executive 4 MoBPTeCh companies
• Project others willing to commit resources

• staff, experience, data, intellectual property,
• facilities or services

• MoBPTeCh company management
• technical teams

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MoBPTeCh Playing Field
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Collaborative Evolution
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Its All About Relationships
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Business Process Model
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Business Process Model
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Grand Challenge Evolution
TACKLING GRAND CHALLENGE

• Drilling Learning Curve
• Produced Water Management
• Deepwater Technology
• Intelligent Well Completion

FOUND COMMON GROUND
IDENTIFYING COMMON GROUND

• Virtual Collaboration

• Real Time Reservoir Management

For information visit http//www.mobptech.com
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Grand Challenge Model

• Grand Challenge
• Best in class performance on the 1st well and
  the technical limit by the 2nd well

• Process / Learning
• Learning Workshops

• People / Shared Vision
• Multiple Networks
• OLS Users Group

• New Technology
• Drilling Simulation
• Sealed Multilaterals
• Organization Learning

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Keys to Success

• Preferred Collaboration Model
• internal
• external
• Networks populated by best talent from operating
  units and industry
• MoBPTeCh is a significant element of each
  companys RD programs
• Cooperative Model extends beyond RD
• Substantial value realized
• Competitive edge for MoBPTeCh members

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Drilling Learning Curve Grand Challenge Progress

• Grand Challenge Achieve best in class
  performance on the
• 1st well and the technical limit by the 2nd
  well in each project.
• Simulation
• Proof-of-concept work on track with two suppliers
• Third supplier to develop integrated simulator
  prototype with POSC compliant NT-based tools
• Multilateral Wells
• Mobil / Chevron teams sharing expertise in
  Nigeria
• Multilateral team supporting Chevron Level 5 well
  in GOM
• Down hole welding program completed first phase
• Drilling Learning Tools
• OSL learning tool implemented by all MoBPTeCh
  companies
• Industry OLS users group created
• 15 2-day workshops presented through October 1998

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What is a Grand Challenge?
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Produced Water Management Grand Challenge Progress

• Grand Challenge No Water to the Surface
• Produced Water Forum website created
• Electronic handbook up and running
• New network home page up and running
• Brightwater
• Thermal trigger work in progress at Nalco / Exxon
• Second trigger simulation scoping work underway
• Water Shut-off
• Project work initiated in April
• Common database under development BP and Texaco
• Vendor influenced to internally fund work
• Downhole Separation
• Project work initiated in June
• US EPA permitting work underway

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Other Network Success1

• Deep Water Technology
• Grand Challenge Sea Floor Processing Nothing
  on the Surface and Nothing Left Behind
• Program scope and specific projects being
  developed
• Real Time Reservoir Management
• Grand Challenge scope evolving in four focus
  areas
• 4-D seismic
• highly instrumented oil fields
• cycle time reduction, and
• accelerated history matching
• Process quality tools RMAS, CPDEP and BRAVE on
  website

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Other Network Success2

• Intelligent Well Completions
• Grand Challenge Adaptive Smart Well
  Completion for Reservoir Management
• Business drivers and values identified /
  quantified
• Reliability system and component identified as
  key issue
• Reliability workshop held in September 1998
• Data Management
• Network vision evolving Virtual Collaboration
• Network agrees / implements 1998-99 work plans

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Conclusion

• All Networks are actively engaged
• Lessons learned are being captured / shared
• Focus balanced between
• technology grand challenge progression
• process website, information sharing and
• people relationships, workshops and networking
• Renewal process initiated to expand scope of
  technical interaction
• Intellectual Property IP network established
• www.mobptech.com