Energy Inc. E&P Energy Inc. E&P DivisionDivision

Adding to the Bottom Line:The Use of IT for E&P Companies

E&P Management E&P Management TeamTeam

Tracy Cui - Procurement Michael Escriva - Reservoir Management Steven Gilbert & Leonardo Perez -

International Operations Kyle Leinen - Shared Services Alicia Picchiani - Seismic Services Carol Seepersad - Drilling Daniel Ho

Seismic ApplicationsSeismic Applications

3D & 4D SeismicData Transfer

On-site processing Data storage Telecommunications

System Integration

BenefitsBenefits

Risk ReductionFaster ProcessingReal Time Feedback Inter-departmental Data SharingBetter Fulfillment of Customer

NeedsLower Exploration Overhead

Drilling ServicesDrilling Services

LandmarkIntegrated exploration, drilling &

production information systems Collection of Drilling Data

Database management of information collected during drilling

Data MiningAnalysis of data to find and interpret

patterns

BenefitsBenefits

Increased ProductivityEnhanced Teamwork Improved FlexibilityCost Reductions ($12 million)Better Understanding of Drilling

ProblemsKnowledge Management for Added

Value

Reservoir Reservoir ManagementManagement

Real-time Down-hole Measurement & Data Collection

Data Acquisition, Management & Transfer

Data Analysis & Reservoir Evaluation

Deep-water Drilling and Reservoir Management

BenefitsBenefits

Higher Percentage of Reservoir Exploitation

Real-time Monitoring of Reservoir Behavior

Exploitation of Inaccessible Deep-water Reserves

Continued Production

ProcurementProcurement

EDI - Transmission of Standardized Procurement and Product Information

Use of Internet Communications Data Sharing Internet B2B Applications

BenefitsBenefits Increased EfficiencyPooling of Resources Among Energy

CompaniesCost Cutting in Procurement

ContractsReduction of Order Processing and

Dispatch TimingPotential Access to Larger Number

of Suppliers and/or Customers

Shared ServicesShared Services

Acquisition & Transfer of Well Production Data for Production Accounting

Cost and Revenue AllocationElectronic Data TransferSAPHuman Resources Management

BenefitsBenefits

Data Collection & SharingReduced Personnel Costs Integration of Accounting Systems

Amongst DivisionsFederal and State Compliance Increased Productivity

International International ConsiderationsConsiderations

Availability of Qualified IT Personnel World-wide

Security of Intellectual PropertyForeign Government View of Data

EncryptionHardware Installation & System

Integration in Different Areas of World

Political Risk

ConclusionsConclusions

Increased Productivity and Risk Reductions Easily Evaluated in Operations Side of Business

Harder to Evaluate in Front OfficeDifficulty in Attributing Concrete

Financial Savings to BenefitsLack of Managerial Understanding

of Impact of IT