APC DRM Process Mapping Importance Summary Presentation

1. APC DRM Process Mapping Importance Summary Presentation

2. Introduction:Keynote Items & Table of Contents • Beyond BOII – APC Business case for change • Current state: As-is • To-Be state: “Jump start” examples • Future DRM success depends on gaining support of E&P operations staff. Accordingly, this presentation is organized the way they view their business: • APC upstream E&P project lifecycle model • Key Work Products and importance • The challenge of making it work for operations • Recommended DRM standardization approach • Expected business results

3. E&P professionals are spending too much time finding, validating and managing data. Recouping that time will lead to: $XXX Prospect Potential Generation Benefit Time Ranges ($MM) To First Oil $35 Personnel Time # Professionals * % increased * Average Salary = Opportunity Cost Savings 700 20% – 50% $100,000 $14MM - $35MM $14 Easy Hard Ease of Direct Correlation Measurement Business Case for Change:Achieving BOII Targets Focus of this effort

4. Business Case for ChangeAPC Strategy Outline • Focus on Games We Can Win • Explore in high-potential, proven basins • Identify and develop unconventional resources • Exploit Unconventional Resources • That’s Where the Oil and Gas Is! • Proven Track Record • Skill Set and Asset Base Provide Sustainability • The Foundation - Low-Risk, Visible Growth • Foundation Growth • EOR • Fractured Reservoir • CBM • Tight Gas Source: Jim Hackett at Energy Conference 080304

5. Current State:As-Is • APC historically not process oriented – “late in the day” • Organizational changes exaggerate records mismatch • Silos exist today - department solve their own problems • Unstructured data is input to (very) structured analyses • In many departments, little recognition of how data is used • People have no confidence in locating information once it has been “classified” and stored Verbatim Comments: “Amazing to me the lack of discipline on managing (personal) files and boxes” “Nobody wants to do a bad job – it just happens” “Need employees to be aware that these documents should be treated as ‘business records’ and not personal files”

6. ToBe State:“Jump start”examples New management climate a big plus for DRM: • Unconventional asset development makes standardization important – but difficult • Improving portfolio requires high A&D activity… very document intensive • APC management incentives changed to encourage teamwork • Project post-appraisal requires documentation of base case analysis Jump start examples discovered to date: • Excellent examples of integrating DRM with asset teams Vernon, Bossier, Salt Creek • Can leverage operations definition of APC project lifecycle in other departments • Multiple classifications & taxonomies exist – BUT the contain “corporate memory” Verbatim Comments: “My understanding is the power is in retrieval.” “Sharing and standardization go hand-in-hand” “The key was to get a multifunctional & mixed experience team to be effective” (Vernon)

7. E&P Key Work Products:Definition DRM project basis is Upstream Traditional Oil & Gas Project Lifecycle • APC “Key Work Products” move an asset through the life cycle. They: • Are easily recognized by operating and senior management • Support a management request for funds and/or resources • Have a very long life… decades in most cases • Usually are “compound” documents, with multiple: • Inputs • Formats • Owners • Often are a mix of structured and unstructured data

8. Taxonomy Define criteria for corporate documents and records Implement classification model (content management system and search) Identify roles and processes for maintaining the taxonomy. Provide training on how to maintain the model. Reclassify content already in key systems Launch classification awareness program and mandatory classification training for all users Migrate and classify selected content from network drives Migrate and classify email Implement audit and compliance regimes for classification Records Management Standardize DRM policies, procedures, and retention schedules across the company Retention-enable existing systems Launch DRM awareness program and mandatory DRM Training Identify vital records and protection methods Implement audit and compliance regimes for DRM 2005 Prioritization