Scott Sitzman and Paloma Urbano. A Global Approach to Building a GIS Strategy. Esri Petroleum Conference April 2014

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Scott Sitzman and Paloma Urbano A Global Approach to Building a GIS Strategy Esri Petroleum Conference April 2014 1

GIS Strategy Study Methodology Maturity Model by Carnegie Mellon Current State Review Future State Review Roadmap Maturity Stage Definitions Characteristics & Typical Issues Key Steps (for next stage) Critical Success factors (for next stage) Business impact (of moving to next stage) 1. Initial Individual usage of GIS software 2. Recognizing 3. Defining 4. Managing 5. Optimizing Isolated tactical uses, no standards, little support Emerging structure for governance, data management, training & support GIS embedded in business with defined operating model, standards, central support & training Measures used to optimise all aspects of GIS as part of standard business processes Six Categories 1. GIS Governance & Awareness 2. Use of GIS 3. Spatial Data Management 4. GIS Technology 5. GIS Support 6. GIS Training & Communications Proven Methodology to Benchmark ConocoPhillips 2

GIS Strategy Study Methodology Data Gathering Approach Surveys : 11% Total Participation Sent to 2,089 people GIS Users 17% 7% GeoSpatial Audit Maturity Model 32% 44% #1 #2 #3 #4 #5 #6 #7 #8 Business Units SURVEYS Quantifiable Measures GIS Users None GIS Users Maturity Model GeoSpatial Audit INTERVIEWS Corroborates Survey Quality Information Subsurface Exploration/Development 3 IT Facilities/Pipeline Operations Land GeoTechs G&RE DOCUMENTATION Hardware Architecture GeoSpatial Services & GeoSpatial Networks of Excellence Best Practices Documentation

Findings 4

Findings Industry Leading Best Practices NOC Clear vision GIS team closely aligned with the business Adoption of latest technology Skilled GIS support staff Clear geospatial career paths Major Clear ownership: GIS is a discipline Well defined multi-tier support model GIS workflows embedded in business processes, high standardization Large investment in staff development Internal Learning Center, GIS Course Director Major Independent Small Independent A clearly communicated vision Centralised GIS services group Separation of back & front office support Well-designed web-gis system to provide common data access Strong standards for data, map products Centralised corporate data mgt. On the shoulder embedded support Tight integration with technical applications support Strong business buy-in Teamwork 5

Findings Industry Trends and Innovations GIS being applied in more E&P areas e.g. Land Management Exploration Pipeline/Asset Integrity Production optimization Well planning, site location HSE, Emergency Response Environment Logistics e.g. vessel tracking COP has all of these GIS is moving to the web Provide simple, common access to key data High usability Data as a web feed: plug & play, live integration, no data duplication Integrated dashboards e.g. Common Operating Picture for Emergency Response Cross-platform compatibility Leverage elastic benefits of Cloud (e.g. ArcGIS Online) GIS is becoming more integrated GIS is going mobile Direct links with G&G applications (e.g. Petrel, PetroSys, DSG) EDMS systems (e.g. SharePoint) SAP SCADA Field data capture incl. drones Simple field data capture for Land, Pipeline, Operations, HSE, Geology Automatic tagging of spatial data e.g. photos Seamless sync with office database Land navigation (e.g. directions to well sites) Logistics & journey management Office productivity e.g. maps on tablet 6

Findings Who uses GIS at ConocoPhillips? 7

Findings CoP Groups are at Different Stages of Overall Maturity CoP Group K CoP Group J CoP Group I CoP Group H CoP Group G CoP Group F CoP Group E CoP Group D CoP Group C CoP Group B CoP Group A Low Maturity High Maturity 8

Presenting to Stakeholders 9

Safety Moment Incorrect Positioning - Drained Lake Peignoir Lake Peignoir Drilling Disaster (1980) Drilling down from the surface of the lake entered the salt mine with a 14- inch drill bit Generally accepted - miscalculation regarding the location resulted in the drill puncturing the roof of the third level of the mine The resultant whirlpool sucked in the drilling platform, eleven barges, many trees and 65 acres of the surrounding terrain. Impact: Permanently affecting the ecosystem Drilling company paid - $44.8 millions in compensation 10

Relating GIS to Business Management GIS exploits spatial geo-reference data that lets you visualize, query, analyze, collaborate on and understand spatial data in unique way to reveal relationships, patterns and trends. Exploration Land Positioning & Royalty Payments Planning Wells Pipeline Routing & Maintenance Emergency Response Environmental Over 80% of data used in the petroleum business has a Spatial Component 11

Findings Examples of ConocoPhillips Best Practices Governance Management Aware & Supportive Talent/Succession Planning Strategic recruitment Technology Centralized Deployment Geospatial Database Replication GIS Workflows Pipeline Corrosion Exploration Emergency Response Environmental Etc. Support Excellence in End-user support Embedded in the Business Data Management & Integration Strong Data Steward, Users data ownership Defined process for managing spatial data Data Dictionary Training & Communication Geospatial Network of Excellence Global Communications Program Training: Partner with external providers ConocoPhillips is positioned to exploit existing GIS Best Practices 12

Findings Examples of Value add Workflows ENVIRONMENTAL EMERGENCY RESPONSE GIS Workflows VALUE Environmental Assessments Emergency Response Compliance Compliance EXPLORATION Exploration Appraisal Play Fairway Analysis Seismic Survey planning Acreage/Lease/Land Analysis Strategic Growth LAND DEVELOPMENT/PLANNING Land Property Mapping Land Access Agreements Geological well planning for Unconventionals Pipeline Planning Compliance Strategic Growth Risk Mitigation OPERATIONS SURVEYING Maintenance scheduling Pipeline/Facilities Management Pipeline Corrosion Management Gathering System Analysis Pipeline Regulatory Compliance Surveying : Pipeline, wells, land, etc Routing 13 Efficiency Gains Compliance

GIS Best Practice Land COP Picture of Land System COP COP Lease Competitor wells What They Did Created a Land GIS processes to manage CoP s Land Boundaries, incorporating CoP s royalty contracts. Analyzed land opportunities. Defined the CoP process for assessing land prospects. Built a group of GIS Professionals Strategic alignment with college. Situation and Challenge Highly competitive environment of North America land, fast movers Fast analysis of land right-of-ways, mineral rights contracts, surface boundaries ; households, lakes and rivers, and access to gathering facilities/pipelines. With a GIS, we can quickly and reliable position wells Outcomes & Value Secured a portfolio of 13.8 million net acres. Fast moving into evolving shale areas. Ensure accurate payment of mineral right royalties. Compliance reporting to government and other stakeholders. CoP GIS Land recognized in the Industry as leaders in GIS. 14

GIS Best Practice Opening the Arctic Opportunity: Ice Bergs and Sea Ice Floes monitoring Live Tracking of Marine Vessels, Video feeds from buoy and land sites What They Did GIS System that integrates all variables required for safe operations in Arctic conditions real time. GIS System included near real time satellite images which identified and monitor weather conditions, iceberg movements and environment changes. Situation and Challenge Extreme harsh conditions Short operating windows, Environmental/Biology assessment Oil Spill Response Safety of the drilling operations from hazardous ice floes and ice bergs Outcomes & Value Reduce the risk of Artic Operations by building plans based on predictive models for weather, iceberg movements and environmental behavior. An integrated and up to date presentation of several sources of data and diverse activities including live tracking of marine vessels, ocean conditions and hazardous ice movement. 15

GIS Best Practice Exploration Play Fairway Analysis What They Did GIS was used to capture and analyze all play components Combine to produce a common risk map. Developed play risk model in Model Builder allowing consistent and easy re-execute of multiple model iterations. Risk Model Source: Situation and Challenge Risk maps are derived from compound of multiple data sets measuring their interpretation and confidence factors. These maps take time to generate and all risks need to be taken into account. Outcomes & Value Efficient creation of play risk maps to understand uncertainty and decide on best regional prospects. Multiple risk iterations for improved decisions. Consistent & Documented play fairway risk model using statistical models and weighted techniques. 16

Findings Areas of Focus Governance and Communications Data and Integration Support and Training Exploiting Best Practices and Workflows 17

Conclusions Use a Proven GIS Review Methodology with a GIS Consulting Partner Surveys, Interviews, Workgroups Discuss GIS in Terms of Workflows and Value, not Technology. Exploit Existing GIS Best Practices. Addressing Focus Areas is a Multi-year Journey 18