The Application of Technology to New Deepwater HorizonsCarlos Cálad

VP Marketing Latin America

Schlumberger Oilfield Services

Deep Water: Redefine Boundaries

Deep Water—Major Growth Globally

100100

200200

300300

400400

500500

Deepwater FieldsDeepwater Fields

100

200

300

400

500

Deepwater Fields

00

100100

20002000 20072007 201220120

100

2000 2007 2012

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

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. drilling optimization, and optimal well placement.

� Maximize and extend production, plus allow economic

production of smaller compartments.

Technology Challenge—

Reservoir Illumination

Narrow Azimuth

NATS

Wide Azimuth

WAZ

Multi Azimuth

MAZ

Rich Azimuth

RAZ

Technology Challenge—

Full Azimuth Reservoir Illumination

Wide Azimuth Full Azimuth Test

� Coil Shooting—enabled by Q Marine

� Improved data quality

� Reduced logistics and risk

Coil Shooting

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

Anticipate and mitigate drilling hazards

� Wellbore stability

� Zonal isolation

� Casing-to-cement integrity

� High pressure formations

Wellbore placement

� Reliable rotary steerable

� Formation evaluation in real time

� Drilling optimization (look-ahead, look around)

� Maximize reservoir contact—geosteering

Technology Challenge—

Optimized Drilling and Well Placement

� High pressure formations � Maximize reservoir contact—geosteering

Geomechanics and pore pressure prediction

� Manage pore pressure/fracture gradient

� Help eliminate sidetracks

� Optimize complex casing, cementing and completions designs

10

>300 m in the top sand

>350 m in the bottom sand

>300 m in the top sand>300 m in the top sand

>350 m in the bottom sand>350 m in the bottom sandx00x10

Technology Challenge—

Enhancing Production with High Precision Drilling

Planned trajectory

Drilled trajectory

Planned trajectoryPlanned trajectory

Drilled trajectoryDrilled trajectory

� 100% pay zone with efficient transition in

between the two reservoir zones.

� Production almost doubled compared to field

average drilled using traditional technology.

Information released by Petrobras.

x00x10

Technology Challenge—

Efficient Workflows - Petrel

� Required tool for seamless

integration of geophysics, geology,

and reservoir engineering

� Single geological model helps

understand reservoir uncertaintiesunderstand 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

Core DataPore System

& PermeabilityRelative Permeability

& Saturation

Lithology

& Porosity

Industry Mid-Career Recruitment Industry Mid-Career Recruitment

0

100

200

300

400

2004 2005 2006

Industry Graduate RecruitmentIndustry Graduate Recruitment

0

100

200

300

400

2004 2005 2006

Industry Mid-Career Recruitment

0

100

200

300

400

2004 2005 2006

Industry Graduate Recruitment

0

100

200

300

400

2004 2005 2006

Deep Water Sustainability Challenges—

Shortage of Experienced Professionals

1010 2020 3030 4040ExperienceExperience

Corresponding demographics

after recruitment by 2010

Corresponding demographics

after recruitment by 2010

Demographics of the average US-based company in 2005Demographics of the average US-based company in 2005

YearsYears10 20 30 40Experience

Corresponding demographics

after recruitment by 2010

Demographics of the average US-based company in 2005

Years

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

Industry Mid-Career Recruitment Base 100 in 2004

Industry Mid-Career Recruitment Base 100 in 2004

Industry Graduate RecruitmentBase 100 in 2004

Industry Graduate RecruitmentBase 100 in 2004

Industry Mid-Career Recruitment Base 100 in 2004

Industry Graduate RecruitmentBase 100 in 2004

Deep Water Sustainability Challenges—

Recruiting and Training

� Recruiting and training have

rapidly accelerated since 2004.

� More than 16,000 staff recruited

with degrees or diplomas Abu Dhabi

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

SiberiaSource: 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 � Technology must continue to evolve in order

to define deeper horizons

� Highly skilled workforce is critical to success

Carlos Cálad S.

Thank you

THE APPLICATION OF TECHNOLOGY TO NEW DEEPWATER HORIZONS

Carlos Cálad S.

VP Marketing Latin America

Schlumberger Oilfield Services