AUTONOMOUS DRILLING TRANSATLANTIC SCIENCE WEEK PRESENTED BY: MERRIE S. COSTLEY, SR. MGR GLOBAL CUSTOMER INTEGRATION - CONTROLS, NATIONAL OILWELL VARCO

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1 AUTONOMOUS DRILLING PRESENTED BY: MERRIE S. COSTLEY, SR. MGR GLOBAL CUSTOMER INTEGRATION - CONTROLS, NATIONAL OILWELL VARCO TRANSATLANTIC SCIENCE WEEK SPECIAL WORKSHOP: PETROLEUM TECHNOLOGY WEDNESDAY, 14 NOVEMBER 2012

2 AUTONOMOUS DRILLING National Oilwell Varco - Summary The Vision Autonomous Drilling System by 2015 NOV s Automation Initiative (NOVA) NOVOS Operating System Benefits of Autonomous Control Collaborative Process Recap

3 NATIONAL OILWELL VARCO A worldwide leader in providing: Major mechanical components for land / offshore drilling rigs Complete land drilling and well servicing rigs Tubular inspection and internal tubular coatings Drill string equipment Extensive line of lifting and handling equipment A broad offering of downhole drilling motors, bits and tools. Founded: 1862 in Houston, Texas Global Employees: 60,000+ Global Locations: 800+

4 AUTONOMOUS DRILLING SYSTEM THE VISION To deliver a fully autonomous well construction machine by 2015

5 NOV S AUTOMATION INITIATIVE (NOVA) NOVOS User Interface Apps Apps Apps Apps Apps Apps Apps NOVOS Operating System NOVA Wired Pipe NEMSIS Down Hole Tools

6 NOVOS AN OPEN OPERATING SYSTEM Enables customization of the well construction process through the selection, import, development or purchase of: Surface equipment Well plans/blueprints Applications Downhole tools Enables the advancement of the level of automation Delivers unprecedented levels of: safety performance reliability, and Quality

7 AUTOMATION OF DECISION AND ACTION SELECTION Parasuraman, R., T. B. Sheridan and C. D. Wickens(2000). "A Model for Types and Levels of Human Interaction with Automation." IEEE Transactions on Systems, Man, and Cybernetics 30(3):

8 WELL PLAN SYSTEMS EQUIPMENT DOWNHOLE TODAY, HUMAN-IS-THE-LOOP

9 WELL PLAN SYSTEMS EQUIPMENT DOWNHOLE FUTURE, HUMAN-IN-THE-LOOP

10 Equipment Well Plan Applications Downhole Tools CUSTOMIZE THE WELL CONSTRUCTION PROCESS Analyze the risk and complexity of each well and customize the well construction process accordingly.

11 GLOBAL ACCESSIBILITY ROC: Remote Operating Center MOE: Multi User Online Environment NOV Sales Engineering Service Executives. I&C Training Spares ROC s MOE HOUSTON CEDAR PARK STAVANGER SINGAPORE TRANSOCEAN BP etc Operators Rig Personnel Executives ROC s Well Planners Government Certification Agencies Service Company's Rig Personnel Executives ROC S Well Planners Contractors Rig Personnel Executives ROC S Well Planners

12 BENEFITS OF AUTONOMOUS CONTROL Greater Safety Fewer people at risk when machines move autonomously Improved Consistency of Well Construction Removes operator imprecision from processes Best practices are constraints of the autonomous system Configurability Choose the equipment, tools, methods and applications appropriate for the particular job Optimization and Efficiency Data is gathered, analyzed, and drives performance improvements

13 APPLICABILITY FOR DEEP WATER Loading and execution of plans designed for complex wells, lessening human error potential Applications designed or selected to customize plan execution to support unique offshore environments Provides a platform for consistently integrating multiple complex systems previously siloed.

14 TRANSATLANTIC COLLABORATION Product and software development team Feedback from Statoil and other companies around the globe AutoConRig* joint industry project *Supported by Research Council of Norway

15 PRODUCT AND SOFTWARE DEVELOPMENT TEAM

16 INDUSTRY FEEDBACK BP Chevron* Exxon Keen Energy Services Lundin Maersk MiSwaco* Odfjell Orion Drilling* Oxy* Phoenix Directional* Precision Drilling* Petro Bras Pioneer Drilling Shell Sperry* Statoil Stenna Transocean* Union Drilling* Vantage Drilling* Weatherford* *Non-directed research participant

17 DRILLING PILOT (AUTOCONRIG) NOVOS Operating System proves AutoConRig Agent Framework Principles Supervisory structure built on top of existing drilling control systems Enables a new way of integrating drilling functions from several individual actors during the drilling process Integration between systems happens on a generic level, abstracted from the equipment

18 NOVOS ULLRIGG TEST

19 RECAP Current systems have reached their maximum potential in terms of configurability and autonomy Future systems will be an open architecture that allows collaboration between multiple manufacturers and application providers on a single platform Large amount of data will be captured but used selectively as, where and when needed Open operating system and NOVOStore enable faster implementation of automation in control systems and machinery, which enables the removal of personnel from dangerous processes on the rig floor

20 QUESTIONS? Merrie Costley Sr. MGR Global Customer Integration Rig Solutions - Controls novos@nov.com MY-NOVOS ( )