Drilling the right hole and Drilling the hole

Drilling the right hole and Drilling the hole right (Integrated real time analytic orientation to Drilling Operations) 10 th India Drilling & Exploration Conference (IDEC) 2017 Changing landscape of oil business 25 & 26 May, 2017 , Mumbai, India A Venkata Rao, AVP, Upstream Oil and Gas Solutions, E&U Copyright © 2014 Tech Mahindra. All rights reserved.

CONTENTS • Current Industry Scenario • Surface and Subsurface Rig Sensors Integration • Real time Drilling Optimisation Solutions & Tools • Reservoir condition – worst case discharge scenario • Drillers Gizmo - Losses & Cementing • No Drilling Surprises & Wellbore Stability • Well Integrity ü Managed Pressure Drilling ü Assigned operating pressure limits • Use Cases • Smart Box /Smart Client architecture - Multidisciplinary Collaborative Environment Copyright © 2013 Tech Mahindra. All rights reserved. 2

Brent Crude Prices US $ / bbl – Base year 2016 Copyright © 2016 Tech Mahindra. All rights reserved. 3

World Liquid Fuels Production and Consumption EIA - expects - The U. S. Energy Information Administration (EIA) • Global oil market to be largely in balance in 2017 and 2018 • Implied global inventories forecast to draw by 100, 000 b/d and build by 200, 000 b/d in those years • Earlier forecast small annual average builds in both 2017 and 2018. Copyright © 2016 Tech Mahindra. All rights reserved. 4

World Liquid Fuels Production Growth Crude oil supply : EIA expected supply from OPEC to increase • By 200, 000 b/d in 2017 and • By 500, 000 b/d in 2018. • Production from Libya, which is not subject to any production target under the OPEC curtailment agreement, average almost 700, 000 b/d in January, the country’s highest production level since 2014. Copyright © 2016 Tech Mahindra. All rights reserved. 5

Positives & Not so positives Positives Supply demand imbalances • be seem to tightening. • • • • Copyright © 2016 Tech Mahindra. All rights reserved. Not so positives Iran could actually bring more production on line. US production could begin to ramp back up following the rig count upturn. Massive crude oil and refined product inventories have been built up during this downturn that may take time to go down even when demand exceeds supply. Confidence in big capital projects will likely take more time to re-establish, in deep water plays and the oil sands for example. 6

Surface and Subsurface rig sensors Copyright © 2016 Tech Mahindra. All rights reserved. 7

Typical Surface Sensors On The Rig Surface Sensors 1 Depth-tracking sensors 2 Flow-in tracking sensors 3 Pressure-tracking sensors 4 Flow-out tracking sensor 5 Drill-monitor sensors 6 Pit-monitor sensor 7 Gas-detection sensors 8 Additional sensors for - fluid temperature, - density, conductivity , - H 2 S or CO 2 gas Copyright © 2016 Tech Mahindra. All rights reserved. Anchor tension (Heave sensor) Bit depth Bit rotating hours Block height Block speed Bulk sensor Choke pressure Fire Alarm Flow In Flow out sensor (paddle) Gas sensor (while drilling) Global Positioning System (GPS) Hole depth sensor Hook load Leg depth (Jack up rig) Pit volume sensor Pump stroke Rig air pressure Rig water pressure Stand Pipe Pressure Torque sensor Total stroke count Trip tank sensor: Voltage for jacking system Weather condition Weight on Bit Wind direction sensor 8

Solution Schematics As-Is-System WI R E D Sensors at the RIG surface Gateway/ Concentrator RTOC To-be-System Sensors at the RIG Surface W I R E L E S S Surface & Sub Surface Data Aggregator Drilling optimization through integration of surface and sub surface Sensor data

Rig Surface Sensor Data Mapping Process Group TANK PUMPS HEADER BOX Group Components • • • • Parameters Premix Tank Mud Tank Slug Pit Pill Tank Trip Tank • • • Mud Pump Trip Tank Pump Centrifuge Pump Shakers Coriolis Parameters • Temperature • Volume/displacement • Mud weight • Mud Flow in/out • Mud Gain/Loss • Pressure • Pump Speed (Strokes) • • • De-silting De-sander Shale shaker De-Gas Centrifuge Tank Level Mud Flow in/out Volume Sensors • Level Measuring • • • Temperature Pressure Strokes /RPM Total Gas (as % methane in air) Gas Chromatography (C 1 - C 5) H 2 S and CO 2 Mud temperature in and out Pump speed (strokes) Loss or Gain Mud weight out Rotary torque (for centrifuge) Temperature ( for centrifuge) Calcimetry FLOW LINE • • Mud Flow in/out Temperature Pressure Mud Gain/Loss • • • Flow Meters Temperature Pressure STAND PIPE • • Temperature Pressure Mud Flow in /out Volume • • • Temperature Pressure Flow Meters * Indicative

Real time Drilling Optimisation Solutions & Tools NOTE Economists warn that the cost to produce one barrel of oil will increase by $3 in the next 20 years Global demand will increase by 11 million barrels daily Copyright © 2016 Tech Mahindra. All rights reserved. 11

Key Events During Drilling Process* I’ve just laid Stn 245 and the GPS measurement is xxxxxxx Observed pressure built up Survey Crews RTOC • • • Premix Tank Mud Tank Slug Pit Pill Tank Trip Tank My Engine Temperature is 85 deg C RIG pump TANK I’ve just logged data at 83 mts and the TVD value is 70 mts * Illustrative scenario of Data flow to RTOC All the communications will be via wireless network/satellite

Rig to RTOC – Events Handling Survey Crews Base Camp My Engine Temperature is 85 deg C <Real. Time. Data> <Level> <Pump. Temp>85 <Units>Deg. C …<Real. Time. Data> Uphole Crew TANK Pump TANK Capture Measurement * Illustrative scenario of data flow to RTOC All the communications will be via wireless network/satellite Vib 2 Engine Temp=85 Units=Deg. C Time=08: 16: 08 Put into an XML packet <Real. Time. Data> <Vib 2> <Eng. Temp>85 <Units>Deg. C …<Real. Time. Data> Put into an SOAP Envelope Send to Base Camp

Data Transfer – Rig Site to RTOC RIG SITE RTOC/End Users Off Crew External End Users <Real. Time. Data> <Vib 2> Publish/Subscribe <Eng. Temp>85 Controller <Units>Deg. C …<Real. Time. Data> Publish/Subscribe Controller Client Head Office Extract XML Data Local Client Office Storage On Crew – Internal End Users Off Crew – Internal End Users Country Office PM Section Heads OSC Segment Office Region Office War Room Head Office LCAM

WITSML Enabled DART Framework Geo Frame Open Works EDM Vendor/Client Systems Tech Mahindra Component RTOC Server 3 rd Party Component RTOC IDAM Online Log Viewer Distributed Store Pattern Generation OFS Company Computer Copyright © 2016 Tech Mahindra. All rights reserved. Real time Drilling Dashboards& Alarms OPC DA MODBUS Local Store PROFIBUS OPC UA DLIS OFS Company Computer Data Aggregators Pattern Library Data Plugins Pattern Detection Local Store LIS WITSML WITS Rig Site LAS Local Store Rig Server-3 Dashboards& Alarms Pattern Library Data Plugins Pattern Detection Data Aggregators Rig Server-2 Dashboards& Alarms Pattern Library Data Aggregators Pattern Detection Data Plugins Rig Server-1 OFS Company Computer 15

Types of WITSML Applications • Surveillance and Monitoring – Continuous comparison of actual to predicted measurements; out of range condition invokes analysis • Simulation and Optimization – Predictive algorithms to predict future measurements and related set points that achieve predefined objectives • Operational Modeling – Predictive algorithms to predict future measurements from historical measurements and operational plans • Advisory and Alert – Invoked when post-analytical predicted and actual performance differ significantly; alerts for remedial control changes • Allocation and Reconciliation – Derives critical values from measurements, as in back-allocation of volumes to wellbores Copyright © 2016 Tech Mahindra. All rights reserved. 16

Geological and Reservoir Information & Exploration Plan Blowout scenario -highest volume of oil released. Estimated flow rate, total volume, and maximum duration of the potential blowout Assumptions and calculations underpinning the worst case discharge scenario. Measures to enhance ability to prevent a blowout. Spill Response surface intervention to stop the blowout, availability of a rig to drill a relief well and rig package constraints; Estimates of the time it would take to contract for a rig, move it onsite, and drill a relief well; Copyright © 2017 Tech Mahindra. All rights reserved. 17

Drillers Gizmo - A Tool Kit Business Objectives Problems of Gains /Losses Challenges: Copyright © 2017 Tech Mahindra. All rights reserved. • Real time data usage for drilling decisions • Better Data QC & improving the quality of real time data through seamless data sharing • Better Collaboration among Drilling and SS&W – data and information and process flows (CVP process ) well planning , design and construction • Reduction in hydrostatic head leading to hazardous well control situation. • Reduction in productivity of the reservoir & well bore integrity • Stuck pipe in case of Gains -Significant NPT • Drilling ops monitoring • Early warning and response system • Advanced diagnostic capabilities • NPT – Mud Losses /Gains, stuck pipe, and cementing challenges 18

Drillers Gizmo - A Tool Kit Data attributes / information to be monitored Functionalities Benefits: Copyright © 2017 Tech Mahindra. All rights reserved. • • Contd… Pre/ post drill lithology information Actual /True vertical depths wellbore schematic and BHA Pre/Post drill Pore pressure/ Frac gradient/ MW Log data Gamma Ray, ROP, sonic and Resistivity curve logs Pit volume gain/loss • Drilling, Tripping / Casing Running and Cementing. • Integration and visualisation -real time data streams, static data, and models , diagnostic tools, models and best practices and know-how for proactive decisions. • Easy navigation and access of additional data sets • Anomaly alerts and visualisations – for timely decisions 19

Sample Driller’s Tool Copyright © 2017 Tech Mahindra. All rights reserved. 20

Pressure Monitoring Tool kit Data attributes / information to be monitored Benefits Data / information Sources Collaboration / Interactions with Copyright © 2017 Tech Mahindra. All rights reserved. • Circulating Fluid pressure for Balanced and underbalanced drilling • Pore Pressure and Fracture gradient zones • Wireline-equivalent pore-pressure measurements (LWD formation tester) • Pressure-While-Drilling (PWD) annular pressure data • Formation pressure • Pressure testing - Real-time data can be used to determine precise overbalance for maximizing rate of penetration (ROP), • Geosteering - absolute pressure gradients to determine the wellbore’s position relative to fluid contacts in the reservoir • Knowledge of formation pressures - allows continuously updated wellbore stability assessments to help optimize well depth. • Formation pressure tester • Witsml Data • PWD tools • G&G teams • Petro-physicists • Drilling engineers • real time data vendors and operators. 21

No Drilling Surprises Data attributes / information to be monitored • • Lithology Prediction – Startigraphic Formation Pressure - Seismic / Legacy well data Discontinuity - Seismic Well Path - EDM / Openwork's / Well View Data / information Sources • • Litho logy Prediction – Stratigraphic (LWD – Gamma Ray etc) Formation Pressure - Seismic / Legacy well data – PWD Discontinuity - Seismic - MWD Well Path - WITSML drilling Collaboration / Interactions with: • G&G teams • Drilling engineers • Real time data vendors and operators. Copyright © 2017 Tech Mahindra. All rights reserved. 22

Wellbore Stability Data attributes / information to be monitored Data / information Sources Collaboration / Interactions with Copyright © 2017 Tech Mahindra. All rights reserved. • • • LOT / FIT studies Pore Pressure and Fracture gradient zones ECD & hydraulics Fracture Model–Core Studies and GMI / Micro-seismics / EDM • Pore Pressure and Fracture gradient zones - PWD • ECD & hydraulics - WITSML • Fracture Model – Bore hole imagery / Array sonic • • G&G teams Petro-physicists Drilling engineers Real time data vendors and operators. 23

Managed Pressure Drilling Data attributes / information to be monitored Data / information Sources Requirement gathering: Interactions with Copyright © 2017 Tech Mahindra. All rights reserved. • ROP • ECD • PWD - circulating • Gas Chromatography • Pit volume and mud weight • LOT /FIT • ROP - WITSML • ECD -WITSML • PWD _ circulating _ logging tools • Gas Chromatography • Pit volume and mud weight • LOT /FIT • Geological teams • Drilling engineers • Real time data vendors and operators. 24

Use Case: Pressure Build Up And Well integrity Copyright © 2017 Tech Mahindra. All rights reserved. 25

Use Case: Pressure Build Up And Well integrity FIELD 1 / WELL -3 Annulus Temp /Pres raising 115 /7000 (DOFF) To Whom to connect Mud logger Busy Clients Rep Away Drilling in charge available Drilling Expert Available (away on holiday) Connecting Expert Share The Desktop Share The application Copyright © 2017 Tech Mahindra. All rights reserved. Courtesy: Energistics 26

Use Case: Pressure Build Up And Well integrity Note : Starting B annulus pressure = 2000 psi Fluid in annulus Temperature rises 45 F to 115 F Final Pressure = 7, 700 psi Case of thermally induced annular pressure Action : Well control OPS

Smart Box /Smart Client architecture - Multidisciplinary Collaborative Environment

What is Smartbox… Smartbox Is a framework that Provides • built in support for security, caching, auto updates, offline transactions, logging, exception handling etc. • plug & play development & deployment model for User Interfaces • built-in administration for access control, UI composition and other environmental variables • configurable Master data management • Out of the box reusable services for Authentication and Authorization Smartbox Conforms to open architecture • Applications can control concurrency, transaction handling, exception handling etc in service(server) layer • Smartcubes can either use or bypass features provided by Smartbox Is web service oriented and loosely coupled • Client is completely decoupled from services and database • Uses WCF and its inherent features e. g. declarative compression model, HTTP protocol etc.

Our Smartbox Experience Offshore Logistics Decision support Center (OLDSC) is an application developed for efficiently using the fleet of tracks for timely transportation of articles & personnel between drilling offshore & different shorebases. Personnel On board (POB) is another application developed using Smartbox framework that allocates bunkers, accounts for meals and other facilities for personnel at offshore platform. This application provides on-board personnel information for emergency. management. Drill Bit Performance application is primarily an automation of logging drilling data directly into a database by users at offshore so that the data becomes instantly available to onshore office personnel for decision making and actions. The smartbox framework takes care of synchronizing the data with the onshore server. This application is integrated with Well. View 9. 0. Risk Management application facilitates creating and maintaining library of risks and tagging them with relevant attributes. During project execution the project team can create risk assessments reusing risks from the library along with consequences & safeguards.

Our Smartbox Experience Hard Assets & Portfolio Management is a web application that provides the ability to leverage/access current processes/tools, ability to adapt to different business environments and automate process for real-time valuation to help the Business Unit plan well. Cost of Incidence (COI) is a tool that provides an efficient way to measure the cost of incidents in a Business Unit. Incidents qualify when they meet the definition of a COI per Corporate definitions and norms. Lessons Learnt is a knowledge management tool to capture events and associated lessons & action items. Knowledge items can be tagged and effectively reused while planning for a new project. Helicopter Manifest application covers managing transportation of materials on time between shorebases & offshore rigs using helicopters.

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