The Application of Technology to New Deepwater Horizons Carlos Cálad VP Marketing Latin America Schlumberger Oilfield Services

Deep Water: Redefine Boundaries

Deep Water—Major Growth Globally

Deepwater Fields 500 400 300 200 100 0

Source: Oilfield Review, US Bureau of Economic Geology, NPD, Infield

2000

2007

2012

Deepwater Challenges—Era of Complexity

Source: Oilfield Review, US Bureau of Economic Geology, NPD

Technology Challenges for the Service Industry




Increasing exploration will need a changing technology mix. The priority will be on mitigating risk.




Improving well construction to achieve wellbore stability, drilling optimization, and optimal well placement.




Maximize and extend production, plus allow economic production of smaller compartments.

Technology Challenge—

Reservoir Illumination

Narrow Azimuth

Multi Azimuth

NATS

MAZ

Wide Azimuth

WAZ

Rich Azimuth

RAZ

Technology Challenge—

Full Azimuth Reservoir Illumination Wide Azimuth

Full Azimuth Test

Coil Shooting


Coil Shooting—enabled by Q Marine




Improved data quality




Reduced logistics and risk

Technology Challenge—

Identification of Base of Salt

Integrating Geophysics to Reduce Risk—

MMT plus Gravity Well

24,000 ft 3D inversion result ties with well data

Technology Challenge—

Optimized Drilling and Well Placement Anticipate and mitigate drilling hazards

Wellbore placement

Wellbore stability
Zonal isolation
Casing-to-cement integrity
High pressure formations







Geomechanics and pore pressure prediction Manage pore pressure/fracture gradient
Help eliminate sidetracks
Optimize complex casing, cementing and completions designs


Reliable rotary steerable
Formation evaluation in real time
Drilling optimization (look-ahead, look around)
Maximize reservoir contact—geosteering

10

Technology Challenge—

Enhancing Production with High Precision Drilling x00 x10

>350 m in the bottom sand

>300 m in the top sand

Planned trajectory x00 x10

Drilled trajectory




100% pay zone with efficient transition in between the two reservoir zones.

Information released by Petrobras.




Production almost doubled compared to field average drilled using traditional technology.

Technology Challenge—

Efficient Workflows - Petrel


Required tool for seamless integration of geophysics, geology, and reservoir engineering




Single geological model helps understand reservoir uncertainties




Provides substantial productivity gains during reservoir characterization and field development planning




Increases ability of organizations to mitigate shortages of expertise

Textural Analysis and Hydrocarbon Identification/Estimation—

Carbonate Advisor Lithology & Porosity

Pore System & Permeability

Relative Permeability & Saturation

Core Data

Deep Water Sustainability Challenges—

Shortage of Experienced Professionals 400

400

300

300

200

200

100

100

0

0

2004

2005

2004

2006

2005

2006

Industry Graduate Recruitment

Industry Mid-Career Recruitment

Base 100 in 2004

Base 100 in 2004

Corresponding demographics after recruitment by 2010

Demographics of the average US-based company in 2005 Experience

10

20

Source: SBC 2006 Benchmark, Quantitative Surveys from 16 Companies.

30

40

Years

Deep Water Sustainability Challenges—

Recruiting and Training

Abu Dhabi




Recruiting and training have rapidly accelerated since 2004.




More than 16,000 staff recruited with degrees or diplomas between 2004–2007.




This includes more than 9,000 engineers from 140 institutions in 80 countries.




Their training will be a major part of the 400,000 training days expected in 2008.

France

Siberia Source: Company Data.

Summary




Deepwater E&P is on technology fast track




Lessons learned from the successes in Brazil and Gulf of Mexico will be applied globally




Technology must continue to evolve in order to define deeper horizons




Highly skilled workforce is critical to success

Thank you Carlos Cálad S. VP Marketing Latin America Schlumberger Oilfield Services

THE APPLICATION OF TECHNOLOGY TO NEW DEEPWATER HORIZONS