Point of View

Exploration and production (E&P)

organizations have made extensive

investments in their onshore assets.

These investments vary in size, maturity,

and cost structures, with heavy focus on

maximizing reservoir recovery using different

subsurface and surface technologies.

But in the current oil price regime, profitable

new investments are difficult to find. In this

environment, renewed attention to base well

production relative to wedge production is

warranted.

Rapid improvement of

base well productionArresting base well production declines

Optimizing the returns on the investment in existing assets is critical to maximizing operating cash flow during the current oil and gas economic cycle.

Hitachi Consulting has helped many E&P organizations exploit their current asset investments to drive revenue and increase cash flow.

Our program

n Does not depend on incremental capital expenditures

n Maximizes base well production management capabilities

n Designs and implements cross-disciplinary solutions that integrate

production surveillance and optimization

n Increases equipment maintenance effectiveness and reliability performance

n Enhances lease operating cost transparency and reduces operating costs per barrel

All of these results are achieved with a keen focus on compliance with environmental and safety policies.

Hitachi Consulting achieves significant and sustainable results, typically with no capital investment required by our clients, through:

Recent client example:n 12% improvement in production at

one field

n $5 million cumulative incremental production margin within 6 months

n Benefits annualized at $20 million

n No capital investment required

n ROI ratio of 18:1

n Establishing new paradigms for base well management

n Empowering field personnel to work through updated, integrated work processes

n Ensuring alignment of and collaboration between organizational functions

n Enabling highly reliable, efficient field maintenance operations

We achieve tangible results quickly, in part, by coaching and changing field behaviors that guide field and office personnel towards consistent application and disciplined use of the solutions implemented.

Our typical results for various lifting technologies are shown below:

12% Improvement

Water Flood FieldProduction

WellWater Injection

Well 144Wells

Oil

Oil

Oil

WaterErg

5% Improvement

Production / Day Improvement / Day

Hrs Down / Day Improvement / Day

3.2M BOE / D 0.16M BOE / D

421 Hrs / Day 126 Hrs / Day

Production / Day Improvement / Day

Hrs Down / Day Improvement / Day

6.1M BOE / D 0.38M BOE / D

1,100 Hrs / Day 371 Hrs / Day

329Wells Oil

pumped to surface

Pump Jack / ESP Field

CablePump

Equalizer

6% Improvement

Intake Oil entershere

Base Production / Day Improvement / Day

Hrs Down / Day Improvement / Day

98M MCFE / D 2.9M MCFE / D

573 Hrs / Day 171 Hrs / Day

1,264Wells

Dual T-PadPlunger

Plunger Lift Field

3% Improvement

BumperSpring

System Controller

Solar Panel

LubricatorCatcher

Production / Day Improvement / Day

Hrs Down / Day Improvement / Day

9.2M BOE / D 0.46M BOE / D

282 Hrs / Day 84.5 Hrs / Day

Steam Injection Field 659Wells

Oil

5% Improvement

A B CInjection Soak Production

© 2017 Hitachi Consulting Corporation. All rights reserved. www.hitachiconsulting.com

Why Hitachi Consulting?Hitachi Consulting combines the skills and delivery capabilities normally found in a niche industry provider with the additional depth and breadth usually only found in a large global firm. It has been our deliberate aim to recruit only senior and experienced people into our company. Many of our consultants have years of experience in their chosen discipline, and many have worked for end-user customers, so they are experienced in delivering projects within large corporations. This approach means Hitachi Consulting is uniquely positioned to gain an in-depth understanding of the business issues your organization is facing and can design and deliver the most appropriate solutions to drive business and improved safety performance.

Hitachi Consulting’s advantage lies in our ability to bring together the best people with the benefit of the frameworks and intellectual property developed from many successful projects. By deploying our tried-and-tested tools and methodology, we can harness your organization’s internal intellect and execute complex operational implementation processes.

About Hitachi, Ltd.Hitachi, Ltd. (TSE: 6501), headquartered in Tokyo, Japan, delivers innovations that answer society’s challenges with our talented team and proven experience in global markets. The company’s consolidated revenues for fiscal 2013 (ended March 31, 2014) totaled 9,616 billion yen ($93.4 billion). Hitachi is focusing more than ever on the Social Innovation Business, which includes infrastructure systems, information & telecommunication systems, power systems, construction machinery, high functional materials & components, automotive systems, health care and others. For more information on Hitachi, please visit the company’s website at www.hitachi.com

About Hitachi ConsultingHitachi Consulting is the global solutions and professional services organization within Hitachi Ltd., a global innovation leader in industrial and information technology solutions and an early pioneer of the Internet of Things. Hitachi Consulting is a business integrator for the IoT era and a catalyst for digital transformation. Using our deep domain knowledge, we strategically collaborate with our clients to help them innovate faster, maximize operational efficiency and realize measurable, sustainable business and societal value. As a consulting-led solutions company, we can help you leverage data as a strategic asset to drive competitive differentiation, customer loyalty and growth. To learn more, visit www.hitachiconsulting.com.