Gas Lift Optimization Process

1. MALAYSIA 2003 ASME/API GAS-LIFT WORKSHOP Kuala Lumpur, Malaysia Gas Lift Optimization Process By Zaidah Ibrahim Operations Manager ExxonMobil Exploration and Production Malaysia Inc.

2. 160 120 80 40 0 Major Effort Required to Meet Global Energy Demand Oil and Gas Demand New Production Million Barrels Per Day Oil Equivalent ( MBOE ) Existing Production 1980 1990 2000 2010 • Half of required 2010 supply not yet on-stream • estimated industry investment exceeds $1 trillion • Continued focus to enhance production from existing • facilities is just as important

3. Focus on Gas Lift • Gas Lift has been and will continue to be a large part of our business • The majority of our artificially lifted production is gas lifted • Current production requires routine surveillance and analysis to hold the gains made from optimization • Future projects require gas lift as a means of artificial lift . Processes must be transferred to new Production Teams • Industry demographics and turnover require ongoing gas lift training to sustain awareness and competency • New gas lift technologies must be sought and leveraged where appropriate

4. ExxonMobil Gas Lift Production 2002 EM Gross Operated Oil Production Gas Lift 27% Rod Pump 11% Other Progressive 21% Cavity Pump 6% Naturally Electric Other Flowing Submersible 2% 52% Pump 2% 27% of EM gross operated oil production is gas lifted

5. Optimization is a Continuous Process GL Gas Quality Surface/ Subsurface Equipment GLV Design and Installation OPTIMUM GAS LIFT PRODUCTION Analysis / Redesign Production Monitoring Surveillance Troubleshooting Metering system Competent Operators Optimization

6. Gas Lift Best Practices • Optimization efforts typically result in 5% or more increases in field production. • Typically, the gains went away after a period of time. There is a need for sustained focus on gas lift surveillance and optimization to hold the gains • EM developed Gas Lift Best Practices from worldwide experiences Optimization Training Organization Gas Lift Best Practices Surveillance Design Equipment

7. Gas Lift Key Performance Indicators Integrated effort to maximize asset performance . . . • Backlog of new GLV installations • Backlog of GLV change- outs Idle Capacity • Compressor availability/ capacity • Water handling capacity • Well downtime VolumetricDowntime • Number of Active Completions • Gas Lift Oil and Liquid Production • Total Gas Liquid Ratio • Gas Lift Consumed • Well Test compliance Actual Production

8. Continuous Monitoring ---> Ensure Optimum Production Gas Lift Monitoring / Metering System (GLMS) - Real time data acquisition for Gas Lift surveillance Constant Gas Lift Gas Constant and high Gas Lift Gas Supply Constant Casing Pressure Low and Constant Tubing Pressure

9. ExxonMobil’s Gas Lift Forward Plan • Network and promote interactions to improve each Production Unit’s gas lift efficiencies • Continue to improve Gas Lift Best Practices - document proven examples that others can leverage from • Seek out and transfer new technology, and where applicable, use it to improve gas lift processes and performance