Integrated asset model can provide a single source of the truth across the full stream for how molecules and operating conditions behave at the unit- and asset-wide level; Thereby providing actionable insights into production activities that can drive convergence in decision-making and action across organizational silos.

1. Proprietary Information
Andy Howell
CEO
GasTech 19
Why digitalization is only
scratching the surface, and
how deeper integration of
Engineering silos can
increase production

2. 2Proprietary Information
Analytics
Most accurate and
robust 1st principles
process and energy
system simulator
SOFTWARE
TECHNOLOGY
Driving excellence
Manufacturing
Execution Systems
Planning; Scheduling; Production
accounting; Operations
management
Automation
Procedural automation;
Advanced process
control;
Real-time optimization
Human Effectiveness
Operator training
simulator
Operational
Excellence Consulting
Asset optimization; Enterprise
team effectiveness;
Digitalization
CONSULTING
AND SERVICES
Assuring excellence
Modeling Services
1st principles
simulation models;
Asset data models
IT Services
Requirements; Specification;
Design; Development;
Integration; Implementation;
Cloud deployment
Sustainability Services
Training;
Technical support;
Software maintenance
Powered by
The Cloud
Digitalization:Thescalableapplicationof digital
technologies,andalignmentoforganizationalcapabilities

3. Proprietary Information
A production-centeredplantis thebiggestenablerfor
achievingoptimalpositioningonthecostcurve
3
Efficiency
• Improve total energy efficiency
and reduce CO2 emissions
• Ensure profitable operation by
optimizing asset lifecycle and
supply chain
• Realize flexible and lean production
Safety & Security
• Achieve zero incident operations
• Improve overall HSSE management
• Comply with legislation, regulations
and standards
Human Reliability
• Capture and transfer
knowledge
• Build autonomous and
intelligent expert system
• Create better workforce-
development training
Availability & Reliability
• Eliminate unplanned outages
• Maximize plant uptime while
minimizing lifecycle costs
• Realize predictive operation
and maintenance
Production Priorities
Engineering Priorities
• Improve project economics
• Mitigate project risks
• Optimize delivery schedule
• Realize flawless engineering
• Flexibly manage changes
• Comply with industry
standards

4. Proprietary Information
Thedegreesof freedomavailableforoptimizedproduction
arelimitedoncetheplantisbuilt.
4

5. Proprietary Information
Valueengineeringof theplantfacilitatesassetandsupply
chainoptimizationoncetheplanthasbecomeoperational
5
Source:
The Oxford Institute
for Energy Studies

6. Proprietary Information
Theindustryhasverycomplexanditerativeworkprocesses
fordeliveringtheseprojects,withmanyindividualsilos
6
Reservoir team
They live in a
stochastic world
of probabilities.
Commercial people
Focused on maximum
revenue generation as a
function of system
availability.
Well teams
Live in a world of
maximizing well
production and
minimizing well
damage.
Drilling teams
Their focus is on the
optimal method of
drilling and well
design.
Facilities people
Their focus is on how best to
achieve the design point
through the facilities.
Manage conditions changes
and allow e.g. for future
secondary lift mechanisms.

7. Proprietary Information
A deterministicdesignpointhasto beproducedfroma
worldof stochasticprobabilities
7
Multiple factors need consideration and behave in a non-linear manner
• Reservoir production potential
profile
• Reservoir fluid composition
• Changing power demands
• Flow regimes and pipe diameters
• Type, size and cost of associated production
and export facilities
• Secondary and tertiary lift mechanisms
• Well lift and type curves
• Well decline and composition
changes
Reservoir team
They live in a
stochastic world
of probabilities.
Drilling teams
Their focus is on the
optimal method of
drilling and well
design.
Facilities people
Their focus is on how best to
achieve the design point
through the facilities.
Manage conditions changes
and allow e.g. for future
secondary lift mechanisms.
Commercial people
Focused on maximum
revenue generation as a
function of system
availability.
Well teams
Live in a world of
maximizing well
production and
minimizing well
damage.

8. Proprietary Information
Digitalizationenablesachievementof engineeringand
productionprioritiesfaster,moreefficientlyandeffectively
8
• An integrated asset
model enables more
effective economic
evaluation and
portfolio management
decisions
• Takes a holistic
approach to deliver
the required return
on capital
• Creates the major
cultural change that
will see a step change
in profitability

9. Proprietary Information
Digitalizationenablesachievementof engineeringand
productionprioritiesfaster,moreefficientlyandeffectively
9
• Acts as an operations
model to maximize
production as
reservoir and well
conditions change
• Maximizes use of
precious power and
separation resources
as the asset moves
into secondary lift
models
• Allows for maximum
demanning /
centralization of assets

10. Proprietary Information
Business’ssuccessreliesontheabilityto interactand
cooperateof twoworldsdon’tspeakthesame“language”
10
Correlation-based analytics tools that
history match physics models
Process and production
facility engineers
Understand the value of first principles
simulation models to design and operate the
asset
Reservoir
engineers
Models have a heavy dependency on
data-driven, correlation-based analytics
Intensive and continuous exercise of using
production data in an attempt to update
the reservoir history match with time-scales
in years
Know that chemical and physical interactions
and dependencies must be respected
Need to draw safe and meaningful conclusions
for real-time to hours and days

11. Proprietary Information
Upstream
reservoir engineers
To unlocktrappedvaluean‘ensemble’approachof an
integratedassetmodel(IAM)is needed
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More precision is needed in subsurface
reservoir engineering, involving unification of
first principles and correlation-based analytics
Relax their quest for ultra-precision within
the small operating window of what’s
happening today
Look to the next 1-24 months operating
window, which may be much wider than
today’s operation and needs the convenience
of correlation-based analytics
Process and production
facility engineers
Use surface actual flowrates and
compositions to calibrate the sub-
surface reservoir model
Mix physics models with data driven models in
digital environments with secure data access and
reconciliation and corporate asset models

12. Proprietary Information
DigitalizationRoadmap
READINESS
SITUATIONAL
AWARENESS
DECISION
MAKING
OPERATIONAL
EXECUTION
VALUE
SUSTAINMENT
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13. Proprietary Information
Case study
A single modelling
environment to boost
FPSO production by
9,000 b/d and deliver
incremental profits of
$180 million per annum
Challenge
Matching well deliverability to
topside power generation and
compressor availability for 20+
wells feeding a “self-powered”
FPSO that has processing capacity
of 90,000 b/d of oil, 10-20
MMscfd of fuel gas handling and
treated water injection rates of up
to 30,000 b/d
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14. Proprietary Information
ComplexCoupledSub-SurfaceModel
Well models &
sub-surface templates
FPSO processing trains
Gas Turbine power generation
Inlet Manifold set pressures from onboard compressors
14

15. Proprietary Information
Well models &
sub-surface templates
MP / HP Compressors
On board Power
Turbines
ComplexCoupledSub-SurfaceModel
15

16. Proprietary Information
IntegratedPower-Production-PressureModel
16

17. Proprietary Information
Case study
A single modelling
environment to boost
FPSO production by
9,000 b/d and deliver
incremental profits of
$180 million per annum
Solution
• No CAPEX investment
• Uses only onboard equipment
• Matches sub-surface to surface
pressure, flows
• First time power-production
balance implemented
• Tested on physical asset
• New production regime confirmed
• Production rates and value attained
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18. Proprietary Information
Key aspects of this approach
Benefits
 Digital combination
of data & physics
 Engineering workflows optimized
for productivity and efficiency
 Integrated asset model rigorously
represents the whole asset
 Design changes are made knowing
the impact to the entire asset
 Native integration of
specialized models
18August 2018
 Workflow integration
across disciplines
 Data transfer is seamless and
invisible to the user
 Consistent thermodynamics / flash
calculations
 De-risking of commissioning /
start-up activities
 Reduced time to complete design
and transition to operation

19. Proprietary InformationProprietary Information
Operationalized
foroperational
performance
management
andoptimization
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Production
planning
Production
scheduling
Plant-wide
optimization
Production
accounting
Yield & Energy
improvement
Unit monitoring
Equipment
monitoring
Real-time
optimization and APC
Operator decision
support
Asset Performance
Management (APM)
Operator training
Backcasting
Supply chain
planning
PI
Simulator
Supplychainoptimization
Productionmanagement

20. Proprietary Information
Conclusions
Proprietary Information
The integrated asset model can provide a single
source of the truth across the full stream for how
molecules and operating conditions behave at
the unit- and asset-wide level;
Thereby providing actionable insights into
production activities that can drive convergence
in decision-making and action across
organizational silos.
20