Product Development

1. Pat McKenzie & A.J. Gerbino, AQSimOctober 2007 Product Development Future for Upstream Applications

2. Industry – problem domainsand where OLI provides value -added Power(including nuclear) Upstream Oil and gasproduction Downstream Refining Process simulation & electrolyte thermodynamics Specialty Chemicals Metals & mining

3. How OLI provides value-added Opportunity! Turnkey, consulting, training Application ToolsScaleChem High-level, industry-oriented interfaces ESP, OLI Pro, AnalyzersOLI Engine in Alliance Products Midrange, general purpose tools Used across industry domains Electrolyte and Simulation Infrastructure Engine, Databanks

4. Recap of market trends “in the workplace” • Aging, retiring experts are not easily replaced • Growing body of interested technologists • Field of expertise is other than simulation and electrolyte behavior • e.g. Corrosion Engineers, Production Chemists, Metallurgists • Lack of time / manpower / staffing to learn two new disciplines • Ongoing tension: relying on consultants versus developing in-house expertise

5. New focus: Application tools • High-level interface • Application-specific interface • Incorporates best practices into the simulation • Fixed flowsheets for limited, multiple configurations • Multi-step and default orientation • Recipe driven Characteristics / features of these products

6. Initial implementation • One set of tools per industry domain • OLI Tools: Production • OLI Tools: Refining • OLI Tools: Chemical • Initial domain chosen: Production • Expedient because we need to replace ScaleChem • Eventually branch to other domains e.g., CDU Overheads (will be client-driven)

7. Project stakeholders • OLI • AQSim • Possible industry partner • Possible (external) software development team • ScaleChem users

8. Possible Applications for Upstream • Scaleprediction • Corrosionprediction • MEG (MeOH) regeneration • Hydrates provide water activity • Squeeze • Interfaces Link to matrix of T, P, flow model outputs • Reservoir chemistry modeling • Scale kinetics link to available model • Multiple zone production fluid mixing in well • Dynamic flow loop testing for scale inhibitors • Reservoir souring (biological activity)

9. What are the common steps (in scale prediction)? Look familiar? These are the same tasks recommended for ScaleChem Enter a brine Enter a hydrocarbon stream (gas or liquid) Saturate at reservoir conditions Produce the fluid (T, P calculations) Look at “what-if” Conditional scenarios

10. What are the general goals? • Make the application visual, so that what is to be done is intuitive • Make data entry look similar to the fluid analysis reports • Minimize the “number of clicks” • Expose the items that are used 90% of the time • Other items in the menu or specs button • Enter data and view results on one-screen, where possible • Add new scenario options by adding more calculation screens (simple screens, more of them)

11. Key Features: BASIC WATER ANALYSIS • Data Entry • Basic/Expanded chemistry • Charge Balance • Reconciliation • Solids on/off • Use Results Balance Options Select ion to balance Hide Zero Row Make Duplicate

12. Key Feature - Basic Hydrocarbon Analysis Data Entry Reconciliation • The Main Sheet – all inflow options available • The Reconciled Properties are visible Load HC Template Hide Zero Rows Make Duplicate

13. Key Feature: BASIC HC ANALYSIS – PURE COMPONENT • Standard HC • Add’l HC List • Other inflows • Entry as: liquid, gas, or whole fluid Data Entry Reconciliation Additional HC Load HC Template Hide Zero Rows Make Duplicate

14. Key Feature: BASIC HC ANALYSIS – ASSAY Data Entry • Add Templates • Ability to add components • Water Content • Reconcile multiple properties Reconciliation Load HC Template Make Duplicate Hide Zero Rows

15. Key Feature: BASIC HC ANALYSIS – PSEUDOCOMPONENTS Data Entry Reconciliation A simple table that expands based on the PC value entered Load HC Template Hide Zero Rows Make Duplicate

16. Reservoir Saturation – Single-Pt Mix • Key Features • Vary # of inflows • Add Flow Rates • Add Rock • Optional Output • Select Minerals No. of Inflows Flow Brine Gas Oil Excess Optional Output Brine Gas HC Make Duplicate Hide Zero Rows

17. Production – Mineral Scaling and Corrosion Graphic approach • Key Features • Enter brine, gas, and oil phases • Enter Flow Rates • Choose Solids • Enter Process Conditions Case 1 of 8 Use Saturator Fluid and flows Make Duplicate

18. Production – Mineral Scaling and Corrosion From Saturation Calculation • Key Features • Fluid and rate fixed by Saturation Calc • Choose Solids • Enter Process Conditions Add new fluid and flows Case 1 of 8 Make Duplicate

19. Production Facilities • Key Features • Expandable # of locations • Choose Solids • Enter Process Conditions Loc 1 of 8 1 2 3 4 6 5 Mass SI ST Input 1 2 4 5 6 3 Make Duplicate

20. Features/Calculation Forms to add • Control brine/gas/oil inflow rate with production rate • The flow rate at T/P conditions • Saturate a mineral using a single ion • Saturate BaSO4 using BaCl2 or Na2SO4 • Alternative scenarios • Pipeline Flow • “OLGA” matrix calculations • MEG/MeOH Injection • MEG/MeOH Regeneration • Reservior Injection (water, stim fluid, squeeze)

21. Questions • Thanks for your attention!