© Copyr i gh t 2014 O SIs o f t , LLC .

Presented by:

Update on Marathon Oil

Company’s MaraDrill™ PI

Based Drilling

Optimization Solution

Ken Startz – Marathon Oil Company

© Copyr i gh t 2014 O SIs o f t , LLC .

Agenda

• Brief Marathon Oil Overview

• Marathon Oil’s Journey with the PI System

• MaraDrillTM Overview

• Analytics and Visualization Examples

• Benefits

• Closing Comments – Vision for the Future

© Copyr i gh t 2014 O SIs o f t , LLC . 3

Marathon Oil – A Global E & P Company

© Copyr i gh t 2014 O SIs o f t , LLC .

The Journey of the PI System at Marathon Oil

4

PI System selected in Refining as standard real-time

data “historian”

My First PI System Install –

Robinson, Ill Refinery

PI System selected as integration and applications infrastructure in Upstream for Equatorial Guinea

PI System Installed in Norway to Integrate and enable remote monitoring and collaboration; Droshky Gulf of Mexico

PI System used for remote Drilling monitoring and optimization

1987

1988

2005-2006

2012

2006-2010

Marathon Oil Corporation spins-off Downstream

Business (Marathon Petroleum Corporation) in 2011

Tactical ”Historian”

Strategic Infrastructure

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Data Workflow

PI Server

H&P 463 Eagle Ford

H&P 256 Bakken

H&P 458 Eagle Ford

MaraDrill™

PI System Tags

Historized

values

Houston Tower

PI Coresight

Mobile Rig Network

Architecture

PI DataLink

55

© Copyr i gh t 2014 O SIs o f t , LLC .

Common Drilling Data TagsEngineering Units

ROP = Rate of Penetration – Ft / Hr

WOB = Weight on Bit – K Pounds

RPM = Revolutions per Minute – RPM

Mud Flow Rate – GPM

Torque – kFt*Lbs

Need 1 second time stamp resolution!

6

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PI Coresight/SpotFire – Stick-Slip Analyses

Advisory in Real Time• Importance of 1 second data

Other vendors

Rig Display

77

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PI Coresight – Stick-Slip Identification: H&P 463

“Perfect” drilling

Stick-slip

Stick-slip: Non-uniform rotation of the bit/BHA

Sticking phase → bit stops

Slipping phase → bit “breaks” free

Drillstring torsional oscillations

8

© Copyr i gh t 2014 O SIs o f t , LLC .

MaraDrill™ – PI Data Flow Diagram

9

MUD LoggerEDR (Other

Downhole)

MWD

(Directional

Data)

3rd Party

Data

Aggregator

OMRON

Control

System

PI Maradrill

System

WITSML

Buffer

Maradrill

.NET

Executable

PI System

OPC_HDA

Client

MODBUS

MaraDrill

Flat

Panel

Monitor

MaraDrill Server at Drilling Rig

OPC

© Copyr i gh t 2014 O SIs o f t , LLC .

PI System Visualization

10

PUBLIC

WiFiPI Maradrill

System

PI

Coresight

(In-

Network)

PI

DataLink

Extranet

Security

Server

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Helmerich and Payne Doghouse

11

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Driller’s Display in Dog House

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PI Coresight View with XML Data Export

13

Enables integration with WellView data Enables integration with Spotfire visualization

© Copyr i gh t 2014 O SIs o f t , LLC .

Custom Spotfire InterfaceImport from CoreSight Data or Manual Selection

14

Enables integration with PI System data from PI Coresight Guided analytics

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Guided Analysis – Time Based or Depth Based

15

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Post-Well Science Using MaraDrill™ Data in SpotFire

16

Modeling the rock strength &

predicting ROP’s on

subsequent wells in the area

to improve logistics and

planning

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Days vs Depth Curves for MaraDrill™ Rigs

Black = MD, Teal = No MD

17

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Post-Well Science Using MaraDrill™ Data in SpotFire Formation Sweet-Spot Analysis

18

© Copyr i gh t 2014 O SIs o f t , LLC . 19

Real-Time Optimization PI Coresight

Stick-Slip Identification

“Acceptable” Moderate Severe

Avg. ROP

for stand

is 144

ft/hr

Stick-Slip Mitigation

Avg. ROP

for stand

is 201

ft/hr

Driller has taken suggestion

…few stands later…

40% Sustained Increase in Rate of Penetration

© Copyr i gh t 2014 O SIs o f t , LLC . 20

0

500

1,000

1,500

Mara

tho

n

B (

320)

C (

42)

D (

30)

E (

34)

F (

42)

I (4

0)

J (

100)

K (

105)

L (

37)

N (

67)

O (

48)

P (

52)

R (

28)

S (

12)

T (

28)

V (

29)

W (

15)

X (

13)

Y (

10)

Ave

rag

e D

rill

Rate

, F

t/D

ay

1

Company (Number of Wells)

Ft/Day TD

Competitor

Average

1,020 16,483

MRO Average 1,450 17,297

1Competitor Data Source: IHS – Drilling Wire; Wells drilled 2013 YTD (Oct) across Karnes, Wilson, Bee, Atascosa, Live Oak, McMullen, Gonzales, Lavaca and Dewitt

Counties; Includes companies with at least 10 wells (AXAS, BHP, BHP, CHK, COP, CRK, EOG, FCX, FST, Geosouthern, HUNT OIL, MUR, PVA, PXD, PXP, Sea Eagle

Ford, SFY, STO, TLM)

Continuous Improvement in Rate of Penetration (ROP)

© Copyr i gh t 2014 O SIs o f t , LLC .

Eagle Ford Drilling – Spud to Total Depth

21

24

18 1815 15

12 12 12 11

0

10

20

30

2011 4Q 2012 1Q 2012 2Q 2012 3Q 2012 4Q 2013 1Q 2013 2Q 2013 3Q 2014Target

Spu

d t

o T

D (

Day

s)1

Note: Spud to TD Days: MRO-op wells, excludes pilot holes and wells with intermediate casing.

© Copyr i gh t 2014 O SIs o f t , LLC .

Value Now, Value Over Time with the PI System

• 25+ years – Continuing to Find Incremental Value

• Excited about Leveraging PI-AF, PI Coresight, Event

Frames

• MaraDrillTM is being rolled out across 25+ rigs

• MaraDrillTM -key Element in Drilling Optimization Vision

• Moving from Tactical to Strategic in use of the PI System

22

© Copyr i gh t 2014 O SIs o f t , LLC .

Ken Startz

23

KLStartz@MarathonOil.Com

Advanced Senior Business Analyst

Marathon Oil Company

© Copyr i gh t 2014 O SIs o f t , LLC .

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