serving the upstream oil and gas industry

Company profile

serving the upstream oil and gas industry

Welcome to Roxar Please allow me to introduce you to Roxar, and present some information that I hope will give you an appreciation of who we are, what we do, how we think and where we operate. For those of you with only a few minutes to spare, I can provide a brief outline of our company. Roxar offers integrated field development and reservoir management solutions to the upstream oil and gas industry. Our headquarters are in Stavanger but we have major regional offices in Houston, Kuala Lumpur, London and Perth and technology centres and other sales offices in Aberdeen, Beijing, Dubai, Moscow, Oslo, Oxford and Tønsberg. We employ 300 talented professionals from a wide range of technical and ethnic backgrounds. In addition to our permanent staff, we work with around 120 associate consultants who help us provide the best possible service for our clients. A recent merger has enhanced the scope of integrated services we offer, and Roxar is now well positioned to provide a range of exciting and valuable E&P solutions. If you have already worked with Roxar we would like to thank you for your continued interest in our company. If not, we hope that the information presented here will encourage you to contact us, and we look forward to working with you. Torkell Gjerstad Managing Director 3

We are... the right people for your job Roxar is an industry leader in 3D geological modelling, stochastic reservoir simulation, monitoring and metering. We offer expertise and technology for uncertainty analysis, field development planning, reservoir optimization and permanent monitoring and metering operations. We also provide drilling engineering and drilling operations management. Our company comprises an impressive mix of personnel, including a total of 300 engineers, geoscientists, software developers and computer scientists. The energy and enthusiasm of our staff are complemented by extensive industry experience. The diverse cultural backgrounds of our staff strengthen our understanding of the global exploration and production market. Roxar is an independent reservoir company dedicated to developing and offering effective solutions and advanced technology to the upstream oil and gas industry. 4 * Roxar product

We think... clearly, creatively, inventively To our clients, Roxar is a trusted partner with industry-leading products and services for reservoir modelling, simulation, monitoring and metering. Our continuing success is founded on the quality of our staff and a long-standing commitment to research and development. We invest a considerable amount of our software revenue in the development and refinement of our products. Our software development centres in Norway and the UK are staffed by dedicated professionals who work in association with key users and clients. We develop, build and test our monitoring and metering equipment in close cooperation with highly skilled partners, contractors and research laboratories. Much of what we do is aimed at solving problems, and our staff are a reliable source of fresh ideas and new solutions. We provide high-quality training and expertise because we want our clients to make full and effective use of our software. Offering full technical support, we develop close and ongoing working relationships with our users to help them explore all relevant aspects of our software s performance. This approach encourages an open and constructive exchange of ideas and ensures that our clients achieve the best possible results. 5

We work... together for better results A unique combination of modelling, simulation, monitoring and metering systems has established Roxar as a pioneer in the field of integrated reservoir services. Our highly skilled and experienced personnel are working to meet the complex challenges facing oil and gas asset managers around the globe. Cooperation is a vital component in any oil and gas operation: Roxar staff work with multidisciplinary teams within clients organizations. In addition to technical expertise, this calls for well-developed inter-personal skills and a broad understanding of the oil and gas asset management process. state-of-the-art monitoring and metering systems (such as the MFI MultiPhase Meter*, MFI Subsea Meter* and MFI WaterCut Meters*). This combination will create a new generation procedure for reservoir optimization and control an integrated and intelligent reservoir management system. Roxar s position as a world-wide leader in the development and delivery of advanced reservoir systems is based on the quality of products and services we provide. Our industry-leading software products and monitoring systems (such as RMS*, Tempest* and PROMAC*) are complemented by 6

We provide... early warnings and improved recovery Roxar s blend of advanced technology gives field operators more control of oil and gas production and a better understanding of development issues. Once our modelling and simulation methods have established a picture of the reservoir and shown how fluids flow through it, operators can install a range of sensors and meters to evaluate production variations. This will, in turn, help them to assess variations in reservoir pressure and fluid mixture, and to relate these variations to long-term production and development plans. Continuous monitoring of produced fluids also offers early warning of problems. This allows operators to improve well management and operational safety. A key objective in all of our work is improved oil recovery (IOR). We help clients to investigate, develop and implement appropriate methods for optimizing the production strategy for fields they have under development. IOR is the final stage of an iterative multi-disciplinary process that may call on the skills of geologists, geophysicists, petrophysicists, reservoir engineers, production engineers and economists. Roxar has the necessary tools and experience to conduct such studies and assess any IOR schemes that our clients have under consideration. Our aim is to provide a seamless service covering every aspect of reservoir evaluation and development, from initial geological modelling to the design, installation and operation of allocation metering systems. 7

We offer... help and support at every step We help E&P companies to assess, develop and exploit their hydrocarbon resources, while managing uncertainty and associated risks. Knowing our clients needs and expectations plays an important role in shaping our strategy. We believe that by establishing a close working relationship with clients we can continue to offer the best in software and services. We aim to help clients streamline their business operations by providing clear and accurate decision-support information. Where appropriate, we welcome the opportunity to enter into joint venture partnerships and to share in the value created by the successful application of our knowledge. As well as our core services and operations for field development, reservoir management and well construction, we have expertise in several other areas. We have conducted major resource assessment projects for many national governments. In Vietnam, for example, Roxar produced a hydrocarbon exploration profile for the entire country. This involved detailed analysis of field information to create a comprehensive and accurate reserves database. Roxar has the resources to conduct everything from single well monitoring to full field studies in the most complex geological environments. With software installations in more than 30 countries, we have come to understand how individual clients use our software, and to recognize how we can help them achieve their objectives. In Baku, in the Republic of Azerbaijan, Roxar is helping to establish an oil and gas technology centre as part of a World Bankfunded technology exchange initiative. Training is an important part of our business. Our software consultants provide a level and quality of training that reflects their experience as expert users. Courses can be tailored to specific client needs and can be provided at client offices as required. 8

Case study 1 Roxar has extensive experience in fractured reservoirs, and this encouraged Petróleos Mexicanos (PEMEX) to approach us for comprehensive geological and reservoir engineering studies in several major fields. Dual porosity simulators were used to match production history and to predict future performance for each field. These studies helped to guide reservoir development and to generate operational programmes which would maximize production rates and recovery. Case study 3 We completed a study on a structurally complex, marginal gas field in the UK sector of the North Sea. Our clients were faced with major uncertainties in depth conversion, reservoir architecture and petrophysical characteristics. A range of sensitivity cases was required for economic evaluation of the field before the decision could be taken to start production. Case Study 2 Roxar has been monitoring the performance of a major gas storage field for several years. The gas is stored in a heterogeneous sandstone aquifer with very strong water drive. Using reservoir simulation, we can analyse the performance of the reservoir and recommend injection and withdrawal patterns and schedules for the field s operators a North American gas utility company. Stochastic modelling with RMS* generated the essential parameters input to a probabilistic GIIP analysis and a flow simulation. 9

Monitoring Roxar monitoring systems represent the forefront of permanent subsurface instrumentation. Bringing new tools and techniques to the international market is helping us to find new customers around the world. As a leading supplier in this important and emerging niche market we want to improve the total quality of well and reservoir monitoring systems. Staff in our monitoring division can respond to client requests at very short notice and offer full support when important decisions and implementations have to be made. customers around the world, the latest version has been refined to provide more input options, enhanced performance, and an improved user interface. This system will take gauge data, such as pressure, temperature and flow rates for various downhole fluids, and transfer them to our advanced reservoir models. It provides everything a reservoir engineer needs to manage complex field development. 10 Among the latest innovations is the new RQPG series of pressure temperature gauges designed for very high temperature reservoirs. Available in permanent and retrievable versions, and with a fully hybridized electronics package, this new sensor opens up completely new possibilities in downhole monitoring. The gauges have shown excellent reliability, especially in the more hostile reservoirs. Our DACQUS* software, for efficient data acquisition and management, allows users to access and manipulate all of their reservoir data. Already used by numerous Data gathering, however, is only part of the story: making best use of our gauges is also an important aspect of our work. That is why we have developed the PROMAC* system for individual zone production control in multilaterals or other complex completions. Featuring up to four sensors per system, PROMAC maintains full control of pressure and temperature, in the tubing, reservoir zones and hydraulic supply lines, and provides accurate information about the control valve sleeve position. Other sensors can be included to provide additional information, such as water cut, sand detection and multiphase flow measurements.

Case study 4 In the Norwegian sector of the North Sea, Statoil planned to monitor the static pressure changes in the giant Troll gas reservoir, and to observe if the stringers found on logs and in cores are continuous and acting as partial fluid or pressure barriers. Eight of the new RQPG gauges (six permanent and two retrievable) were cemented in place at selected intervals of the open hole in well A-8 four in the gas zone and four in the water zone. This was a pioneer project, but all gauges were installed successfully and are now providing Statoil with precious information on one of the biggest fields in the North Sea. Case study 5 Statoil s Gullfaks well C-36 is a complex dual-purpose completion: regular oil production in the tubing, and alternating water and gas injection (WAG) in the annulus. Because pressure in the annulus is much higher than in the tubing, pressure monitoring is the key to controlling the performance of the production and injection mechanisms. Two RQPG gauges, mounted on the tubing, were installed to monitor the tubing and annulus performance. Completing well C-36 was a technical challenge for Statoil, but was also very prestigious. The use of Roxar gauges has contributed to this success. 11

Metering Roxar metering systems are at the leading-edge of measurement technology. Years of experience in developing new tools and techniques for a range of metering applications have given us a profound understanding of flow measurement. For example, our MFI WaterCut* and MFI MultiPhase* meters use field-proven, patented microwave techniques to measure the dielectric constant of mixtures. This allows reservoir-, productionand flow-measurement engineers to assess the proportions of various components within the mixture with great accuracy. The MFI WaterCut Meter uses advanced sensors designed, developed and patented by Roxar to determine the water content in crude oil, condensates or other fluid mixtures. After extensive trials and tests, the meter was certified for use in allocation metering operations in Norway. Independent tests have shown that it has better repetitive accuracy than any other sampling or laboratory method currently available. Multiphase meters are relatively new products to the oil industry. Installing our MFI MultiPhase Meter helps operating companies to assess changes in production from the well over time. These changes indicate how reservoir pressure and composition are being modified by production. Continuous monitoring of flow also identifies irregularities in production earlier than would be possible with conventional methods. This leads to better well management, improved reservoir drainage, lower operating costs and enhanced safety for offshore facilities. Our metering systems also offer significant cost-savings by, for example, replacing test separators or increasing the efficiency of subsea installations. One of the most important aims is making our technologically advanced products easy to use. The user interfaces for Roxar meters are designed to guide general users through all the necessary steps in the analytical process while providing expert users with advanced interpretation options. 12

Case study 10 In the UK sector of the North Sea, Shell UK Exploration & Production installed two MFI MultiPhase Meters for reservoir allocation of two new satellites (Gannet-E and Gannet-F) tied-back to the existing Gannet platform. Shell reported a 10 million saving in capital expenditure for this project. This figure does not include operating expense savings, expected to be in the same order of magnitude over the lifetime of the field. Case study 11 Statoil has reported a capital expenditure saving of 67% by selecting MFI MultiPhase Meters for well testing and reservoir monitoring on the Gullfaks Satellites project in the Norwegian sector of the North Sea. The MFI meters made it unnecessary for Statoil to install an additional test separator on Gullfaks-A. Case study 12 In the Norwegian sector of the North Sea, Statoil s Aasgard project has reported an added value (NPV) of NOK 300 million, thanks to MFI Subsea MultiPhase Meters. Statoil has purchased 28 MFI meters for Aasgard one for each production well on the project. 13

Reservoir modelling software 14 Roxar is acknowledged for its leading reservoir modelling applications RMS and Tempest*. We develop software which enables multidisciplinary teams to derive more information from expensively collected data, and therefore provide better decisions in less time. The techniques embedded within our applications are equally applicable to exploration and exploitation. Our software capabilities have proved particularly useful in the development and management of marginal and more complex fields where the financial risks are considerable. Reservoir heterogeneity strongly influences reservoir performance. RMS and Tempest deliver improved reservoir characterization capabilities where the use of geostatistics and stochastic techniques for heterogeneity modelling is vital. Our applications are used to build 3D reservoir descriptions that incorporate all available data and make use of the user s expert knowledge. The advanced 3D modelling capabilities of the software make it easy to model geological concepts and flow-controlling parameters, allowing users to focus on their discipline rather than on the software. Well-established upscaling techniques handle and preserve flow properties in the transformation from the fine-scale geological description into the flow simulation domain. Our products ensure that data and reservoir models are easily accessible and shared within the multidisciplinary team again saving time and ensuring and retaining model integrity. Efficient modelling of black oil and compositionally complex reservoirs is handled by robust and well-tested methods in the Roxar high-performance reservoir simulator MORE*. Speed and stability help users to solve large problems. Wells can be interactively placed into the reservoir model, to enable production scenarios and well performance to be evaluated. Risk plays a part in all field development decisions. In particular, the reservoir model is always uncertain because it is based on incomplete or sparse subsurface data. The uncertainty inherent in every model can be evaluated and used to guide development decisions. Our software allows users to evaluate, access and retain

uncertainty information throughout the workflow, up to and including the simulation stage. By allowing professionals to address uncertainty as part of the modelling process, the reservoir s uncertainty can be quantified and used when examining the production profile and comparing the net present value of alternative development scenarios, or investment opportunities. Roxar is involved in, and aware of, today s working environment and our tools are focused on optimizing reservoir management. We therefore also support links into software packages and databases from other vendors. We are committed to continued software development and extension of the reservoir characterization discipline while retaining close contact with industry trends and the needs of our customers. Case study 6 A client wanted to design and drill the most effective horizontal wells to drain unswept areas within a large, established field in the UK sector of the North Sea. Using stochastic methods we reevaluated the original geological model for the field and incorporated new 3D seismic data to generate a range of equally probable reservoir descriptions. Flow simulations performed for each reservoir description provided estimates of average reservoir content for every part of the field. Using these new data, our clients have refined their development strategy and extended the producing life of this major field. 15

Reservoir management services Roxar provides solutions to its clients across the full spectrum of oil and gas operations, from exploration through to production, including field development planning and reservoir management. Combining advanced skills in geological modelling with well planning and performance analysis, Roxar delivers a fully integrated reservoir optimization service. A clear understanding of the reservoir and its behaviour is the most important objective for any operating company. Predicting how a particular well will perform before it is drilled can help your company make informed decisions that can guide you through the most difficult stages of exploration and field development. In Roxar we integrate our skills to provide our clients with the best possible specialized multidisciplinary teams and software expertise. Linking drilling engineering and operational management expertise with geological modelling leads to greater cooperation among drilling engineers, reservoir engineers and geoscientists. Using Roxar software products for reservoir modelling and well planning, our highly skilled geoscientists and engineers can suggest locations for new wells, and the chosen site can be examined and discussed with drilling engineers to confirm that the well can indeed be drilled, and to ensure the best possible performance. In addition to being expert users of our own software, our consultants are trained on and familiar with a wide range of commercially available software packages. Engineering and geological staff at Roxar bring a professional approach to expert witness projects. We have provided independent technical advice and trial support in a range of legal and fiscal issues related to the oil and gas industry. We also offer extensive experience in equity determination, unitization proceedings and arbitration. 16

Case study 7 Our client required a high-quality model of a complex turbidite deposit in their North Sea field. The aim was to bring this model into their black-oil simulation for a more accurate assessment of reservoir performance. Using a range of reservoir modelling products, we examined this incised, eroded and channelled turbidite sequence, then upscaled the results to a reservoir simulation model which honoured the geology and gridding of the original model. Case study 8 In the former Soviet Union, Roxar was engaged by a state oil company to recommend an improved development scheme for the rehabilitation of a major offshore field. We conducted a thorough subsurface evaluation and modelling study. A plan for upgrading and well remediation was prepared, which resulted in a doubling of recoverable reserves in the field. Case study 9 Roxar was engaged by an independent oil company to provide the drilling engineering and management team for the design, planning and drilling operations on three exploration wells in Yemen. The wells were successfully drilled on time and on budget. Roxar proved its ability to work efficiently and professionally in a remote location, to hire and manage contractors and to deliver the project according to the client s requirements. 17

We operate... wherever you need us Roxar provides technical support for clients through an extensive network of offices around the world. Roxar Limited Headquarters Gamle Forusvei 17 PO Box 112 N-4065 Stavanger Norway Tel: +47 51 81 8800 Fax: +47 51 81 8801 email: info@roxar.com http://www.roxar.com 18

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