Establishing an NDR The Norwegian Viewpoint Eric Toogood, Project Manager, NPD

1
Establishing an NDR The Norwegian
ViewpointEric Toogood, Project Manager, NPD

• NDR-5
• USGS Sunrise Valley Drive, Reston, USA
• September 21 2004

2
Establishing a National Data Repository NDRThe
Norwegian Point of View

• Introduction
• Importance of data management
• Definition
• Aims
• Considerations - NDR
• Legislation
• Data types
• Business model
• Ownership
• Etc.

3
Resource Data Is an Asset

• All data relating to geological, geophysical and
  reservoir characteristics, observed by national
  and international oil companies, must be regarded
  as a valuable asset for the nation of that area.
• Authorities should formulate a data management
  strategy.
• High exploration efficiency and long term
  national interests must be the main objective of
  this strategy.

4
NPD Goals Data and Information

• A national responsibility to ensure that data and
  information from petroleum activities is made
  available
• To develop and communicate a coherent knowledge
  base for petroleum activity

5
Why is Data Management Important to the Norwegian
Petroleum Directorate?

• Data management influences the governments
  ability to
• do strategic planning
• attract foreign investment
• control major international oil companies
• challenge the oil companies on resource
  management
• increase the government take by assisting oil
  companies to operate more efficiently

6
Data access an important element in promotion of
the province
7
Data Reporting to the NPD

• NPD is entitled to all information the oil
  companies have regarding their activity in
  Norway.
• The Petroleum Act allows NPD to formulate
  detailed routines for reporting.
• NPD holds a seat in all licence committees as an
  observer.
• NPD gives drilling permission
• NPD gives permission to perform all seismic
  surveys.
• If received information is not sufficient,
  additional reporting can be requested by NPD

8
Storage vs. Use Exploiting the data

• It is important that valuable data is able to be
  collected and stored/archived in order to
  preserve data generated from oil and gas
  activities
• One approach is simply to establish a National
  Archive where data is stored once it is no longer
  used in any active sense
• In our view the real value in NDRs lies in the
  ability to store the data in such a manner that
  the inherent value of the data stored can be
  exploited to the full by the industry
• This means that the NDR can be a valuable
  instrument in creating added value for the nation
  through enabling oil companies to be able to
  handle data more efficiently

9
The National Data Repository

• The National Data Repository concept, as the
  NPD sees it, includes both digital and physical
  items
• It involves internal databases within the
  government bodies and/or external databases that
  operate according to provisions in the petroleum
  legislation
• These may be run by the 100 state owned oil
  company or outsourced from the government agency
  to a contractor
• One important criterion is that the information
  of the complete area of the nation is covered
• To be called a National Data Repository (bank),
  the solution should not only have functionality
  to load and store data, but also effective
  functionality to retrieve data, preferably
  online, from more than one competing customer

10
National Data Repository Concept

• Reference information
• and/or
• Data Catalogue

NDR-2
NDR-1
Core samples
Fluid samples
archive
Diskos
Professional digital databases
Physical storage/warehouses
Oil company databases
11
Framework in Norway

• National Repository
• Data of common interest for activities on the
  Norwegian Continental Shelf
• Raw data
• Non-interpreted data
• Standardizing
• Datatypes
• Data formats
• Data model (POSC)
• Procedures

The National Databank
12
The Norwegian approach

• No limit in the mandate regarding data types to
  be stored
• Data of common interest
• Where would we get the most improvement?
• Efficient handling of seismic data 2D 3D
  initially
• Well and production data later
• Built on consensus
• Main focus is on seismic, well and production
  data
• We have not tried to solve all of the industries
  problems!
• If its not broken dont fix it!
• No major revolutions in the way we work
• Incremental improvements where the problems are
  most acute

13
Considerations National Data Repositories
Legislation
Data types
Business model
Ownership
Contract structure
Third Party Access
Organisation
Disaster recovery
Technical development
SLA
Etc.
14
Considerations National Data Repositories

• Is the legislation in place?
• Reporting requirements
• Data ownership
• Is this issue clear? Owned by companies or the
  state?
• Data release
• Current legislation, future transition period?
• If not will it take long to put into place?
• What are possible hurdles in relation to the
  stakeholders?
• Government
• National oil companies
• Major oil companies
• Minor players
• Newcomers

Legislation
Data types
Business model
Ownership
Contract structure
Third Party Access
Organisation
Disaster recovery
Technical development
SLA
Etc.
15
Considerations National Data Repositories

• Data Types Data Standards
• What are the data types to stored?
• Is there a definition of the National Data Set?
• Cultural/administrative data is this in place?
• Seismic Field data, post-stack, pre-stack etc
• Core samples
• Well data
• Production data
• Which data type will you start with?
• Historical data vs new data?
• Clean up of legacy data is essential but at what
  stage in the process?
• Are there specifications for the data?
• Adoption of international standards
• Who will decide? Government or through
  collaboration with industry

Legislation
Data types
Business model
Ownership
Contract structure
Third Party Access
Organisation
Disaster recovery
Technical development
SLA
Etc.
16
Considerations National Data Repositories

• What is the proposed business model?
• Operating company
• Limited company?
• Not for profit company?
• Government organisation?
• Should the business model be the same at the
  start up in regard to later on?
• How will this company make its money?
• As in Norway through group and bi-lateral
  agreements with the operator?
• Cost-plus model?
• What contribution will the Govt. Make?
• In Diskos the NPD pays reduced fees in return for
  cultural data
• Data inside National Data set price scheme
• Loading, storage, downloading
• Data outside National Data set price scheme
• Loading, storage, downloading

Legislation
Data types
Business model
Ownership
Contract structure
Third Party Access
Organisation
Disaster recovery
Technical development
SLA
Etc.
17
Considerations National Data Repositories

• Ownership of the operating company
• If a private company who will be the owners?
• Service industry?
• Oil companies?
• Govt?
• Should you ensure that ownership is spread out?
• i.e. Ensure that you do not have one dominant
  owner?
• What safeguards do you have in relation to the
  marketplace?
• Mergers, buy-outs, new owners etc.
• Can you avoid assett stripping?
• How will you monitor the operator?
• The operator is in a monopoly situation
• Contract period
• Can you change operator?
• Technically or economically feasible?

Legislation
Data types
Business model
Ownership
Contract structure
Third Party Access
Organisation
Disaster recovery
Technical development
SLA
Etc.
18
Considerations National Data Repositories
Legislation

• What will be the contractual structure?
• To a great extent governed by the business model
• What incentives will you give to the operator?
• You need to encourage technical and operational
  development
• This means that the business model must give the
  operator room to manouvre
• Turn-key solution for software and operations?
• Or separate agreements as in Norway?

Data types
Business model
Ownership
Contract structure
Third Party Access
Organisation
Disaster recovery
Technical development
SLA
Etc.
19
Considerations National Data Repositories

• Who will be allowed to access the database and
  how?
• The data stored is a valuable resource and should
  be exploited fully
• Virtual data rooms, acquisition and divestment
• Show case for shelf
• New services/technologies
• Universities
• Third parties to be defined
• Universities
• Consultants
• Web-portals etc.
• Security must be maintained!
• What about the business model here?

Legislation
Data types
Business model
Ownership
Contract structure
Third Party Access
Organisation
Disaster recovery
Technical development
SLA
Etc.
20
Considerations National Data Repositories

• How will the operation be organised?
• Management Committee?
• Project management?
• If so, who will participate?
• Cooperation is the key
• Government and industry
• Roles MUST be clearly defined
• Govt.
• Companies
• Operator
• Services
• Software
• Service Companies

Legislation
Data types
Business model
Ownership
Contract structure
Third Party Access
Organisation
Disaster recovery
Technical development
SLA
Etc.
21
Considerations National Data Repositories
Legislation

• What is the Disaster recovery plan?
• How long can you afford to be without data?
• Up to 6 weeks to receive and install new tape
  robotics systems
• Is there an alternative facility?
• Is simple back-up enough?
• Do you want to rent an alternative facility that
  can be used in case of major failure?
• What about mirror sites for data storage?
• Ref. CDA UK
• There must be redundancy in all data
  communication systems
• The business case for alternative solutions is
  changing all the time due to reduced cost of disc
  or tape based storage

Data types
Business model
Ownership
Contract structure
Third Party Access
Organisation
Disaster recovery
Technical development
SLA
Etc.
22
Considerations National Data Repositories
Technical development
Legislation

• How do you ensure an optimal solution for storage
  technology?
• State of the art disc based systems..
• Tested and proven? i.e tape robotics
• Hybrid solution currently in Norway
• Investment costs versus operational costs
• This will be defined by the business model to a
  large extent
• Software development will also determine how the
  system is used

Data types
Business model
Ownership
Contract structure
Third Party Access
Organisation
Disaster recovery
Technical development
SLA
Etc.
23
Considerations National Data Repositories
Service Level Agreement
Legislation

• What level of service do you want your operator
  to provide?
• Resolution of software issues
• Operational issues
• Be careful to define all aspects of tasks
  expected to be carried out
• Normal operations
• Software upgrades
• Test installations
• Drafting such a document must be a collaborative
  effort with all stakeholders involved

Data types
Business model
Ownership
Contract structure
Third Party Access
Organisation
Disaster recovery
Technical development
SLA
Etc.
24
Considerations National Data Transfer of
Operations
Legislation

• Can you transfer your operations?
• If so How easy is this to do?
• Is there a detailed plan for this?
• What do the contracts state?
• Perform a Feasibility Study
• Map out the various issues
• Technical
• Contractual
• Time scale
• Etc.

Data types
Business model
Ownership
Contract structure
Third Party Access
Organisation
Disaster recovery
Technical development
SLA
Etc.
25
Transfer of operations
Robot/data store clean up
Bulk data transfer
Data definitions
Agree on transfer method
Verification
Data Transfer from current to new operator
Acceptance
PlanningProcess
Business as usual in transfer period All users
26
Transfer of operations some experiences from
Norway

• Very demanding process
• Can be problems with the previous operator
• Takes focus away from ongoing issues
• Takes a lot of time so the process must begin
  early
• in Norway at end of 2002 for 2004 change over
• Need a good spread of expertise
• Technical (data), contractual (tenders, legal
  aspects), software
• It is worth the effort!
• Introduces/maintains competition
• Step change in technology
• Revise/improve business model
• Improve/streamline workflows

27
Some conclusions

• Pitfalls
• Benefits
• Final comments

28
Strategic challenges to establishing NDRs

• Pitfalls
• Insufficient buy-in from the stakeholders
• Will this initiative only benefit the
  authorities?
• Only long-term goals no quick wins
• Does the approach solve all of the needs of all
  of the participants?
• Is there sufficient data to test systems enough?
• Are there sufficient resources in the process?
• Qualified personel
• Technical assistants higher level professionals
• Feedback from end users
• Consensus is important
• It will take time

29
Benefits National Data Repositories

• Cost savings
• Reduced investment in
• Software and operations
• Infrastructure
• Manpower
• Quick and easy access to quality controlled data
• Overview of available data
• seismic and navigation data (navigation data)
• Well data, core data, production data etc.
• Quick access to the data
• Proprietary, public, traded, spec. data etc

30
Benefits National Data Repositories

• Show Case for the Nation/Region
• Attract newcomers
• Overview and access to available data
• Enables new technologies and services
• Provision of services such as virtual data rooms,
  acquisition and divestment portals
• Consultancy companies working on behalf of oil
  company clients etc
• The concept of the Virtual Oil Company
• No need for newcomers to build up large in-house
  data management structures

31
Conclusions

• EP Data is an important resource that must be
  managed prudently
• Efficient and easy access to quality controlled
  data is essential to national governments,
  authorities and the oil and gas industry
• A national strategy for data management should be
  put in place

32
Conclusions

• There must be a thorough understanding of the
  technical challenges involved in implementing
  such a strategy
• A phased approach is sensible with realistic
  milestones
• Solutions should meet the needs of both the
  government and industry

33
QUESTIONS?
Thank you for your attention!