ITF Overview Delivering New Technology A Proven Process

KT Scotland 2010Stimulating Energy Innovation:ITF and the Energy KTNHeriot Watt University, 23rd April 2010Dorothy Burke ITF/Energy KTNGrowing Technology1About ITFITF MembersITF ProcessSample ProjectsHow to get involvedGrowing TechnologyPresentation TopicsWhat is a KTN?The KTN NetworkObjectives/BenefitsEnergy KTNHow to join

ITF established in 1999, global not for profit organization, owned by oil and gas companies

Facilitate technology development to implementation

During 2008 launched 29 projects, 9.4m Including 5 field trialsImplemented 9 technologies

140 collaborative projects; 41 million direct member investment

2009: Likely to be half this level

Currently 39 ongoing projects - 19 million2ITF is a global not for profit organization, owned by 23 major international oil and gas companiesFacilitate technology development and access up to 100% industry funding to implementation150 projects launched; 46m member investmentCurrently: 40 ongoing projects worth 19 millionGrowing TechnologyIndustry Technology FacilitatorITF established in 1999, global not for profit organization, owned by oil and gas companies

Facilitate technology development to implementation

During 2008 launched 29 projects, 9.4m Including 5 field trialsImplemented 9 technologies

140 collaborative projects; 41 million direct member investment

2009: Likely to be half this level

Currently 39 ongoing projects - 19 million3Growing TechnologyThe Industry Technology FacilitatorA not-for-profit organisation

4

The ITF ProcessScreen & EvaluateDevelopmentProposalsEngage DevelopmentCommunity & Invite ProposalsTechnology Challenge WorkshopsUnderstandAnd IdentifyTechnologyNeedsImplementTechnologyLaunch Joint Industry ProjectsSecure Funding5EOR TechnologyTight and Shale Gas, and Coal Bed MethaneDrilling EfficiencyCompletions TechnologyProduced Fluids ManagementHPHT (Production)Growing Technology2010 Technology Challenge WorkshopsAberdeen18/19 AugustAmsterdam17/18 MarchHouston26/27 May6

Growing TechnologyITF Funding Process Timeline7University of Manchester

Acoustek Remote Pipeline Inspection for Real-time Field ManagementDevelopment of an acoustic technique for the detection of leakage and blockage in pipelines

Cost: 50kDuration: 12 monthsSponsor: BP

ImplementedGrowing TechnologyAcoustek - University of Manchester

88

University of Liverpool

MIMS system has been built and lab tested and 4 days of testing was done at Opus Test Facility in June 2009. The MIMS system successfully passed through its second stage of field trials at OPUS (Flotta) at the end of July.

Sponsors:BG, ENI, Chevron, ConocoPhillips Cost:210k Completed

Growing TechnologyMembrane Inlet Mass Spectrometry Water Based Monitoring System (MIMS)9

The Robert Gordon University

Final test work is now being completed with the project currently on target to complete by September with issue of final report. Potential follow on project based on outcome.Pioneer ProjectSponsors:ConocoPhillips, ITFCost:20k Completed

Growing technology"Non-Chemical Modular Gas Treatment Technology Parameter Characterisation1010Job offer has been made to candidate and should be starting shortlyHeriot-Watt University HWU now running Phase TwoDevelopment of Hydrate Early Warning methods for determining hydrate safety margin of pipeline fluids

Cost: 460k Sponsors: BP, Chevron, Petronas, StatoilHydro, Total

Product now available and being implemented by all Participants, e.g. Total in Qatar (Dolphin Energy) and Pau; plus FMC

Live Project

Growing TechnologyDetecting hydrate formation in pipelines

1111The two main objectives of this two-year research proposal are: (1) developing methods for determining the hydrate safety margin of pipeline fluids, and (2) developing techniques for detecting initial hydrate formation in pipelines. The first is to ensure that the system is adequately inhibited and optimising inhibitor injection, whereas the second is to develop an early warning system

In the first phase of this project, which was completed in July 2007, identified a number of techniques. Prototypes for these techniques have been constructed and tested (or being tested) in the sponsors laboratories.

Conductvity Velocity method has been implements by all project sponsors. The University of Aberdeen

The development of a novel cost effective underwater cutting device for use in decommissioning. Relatively low power required (cutting power density up to 100 x greater than electric arc systems) and a cutting speed comparable with Abrasive Water Jet Cutting in air.

Duration:6 months (Phase 1)Sponsors:BP, CoP, ShellCost:200k

Live ProjectGrowing TechnologyNovel Underwater Cutting

12Growing Technology

Exploration Technologies Joint 3D Inversion of Full Wavefield P, S and CSEM data (Fullwave III)

Imperial College & OHM Ltd

Running:Until June 2011 Sponsors:DECC, BG, BP, Chevron, ConocoPhillips, Eni, Maersk, Nexen, Rio TintoCost:1,280k

Addresses joint inversion of 3D seismic and 3D CSEM data to combine the structural fidelity and depth control of P-wave reflection imaging with the direct hydrocarbon sensitivity of both CSEM and full elastic seismic data

Live Project

Discussing bringing major seismic service company in to assist with the volume of data to be processed and to commercialise the elastic seismic algorithms

PS3241-(FullWave III) JOINT 3D INVERSION OF FULL WAVEFIELD P, S AND CSEM DATA

FullWave III is being developed by The Imperial College and OHM Ltd and it is supported by 9 sponsors.

This project builds on the experience gained on a previous ITF project in which a method for 3D full wavefield tomography was developed to produce highly resolved P-wave velocity models.

This project is concern with the joint inversion and interpretation of 3D seismic and 3D CSEM data in order to combine structure fidelity and depth control of P-wave reflection imaging.

13Growing Technology

Tight Gas Technology Petrophysics of tight gas sands (PETGAS)

University of Leeds

Project to create an atlas/database on the petrophysical properties of tight gas sands using state-of-the-art SCAL laboratory (Sorby Lab)

Sponsors: BG, BP, EBN, Shell & Wintershall Cost: 750k

Understand key controls on petrophysical properties Identify relationships between petrophysical properties. Use to better interpret down-hole tool data. Identify better ways to produce from tight gas reservoirs Results will provide the basis for improving the interpretation of wire-line log data for the characterisation of tight reservoirs during exploration, appraisal and production

Live Project

14Growing TechnologyLow Permeability ReservoirsGas Flow in Heterogeneous Low Permeability Rocks

BP Institute, Cambridge University

Phase 1: developed hierarchy simplified numerical models to describe the fluid dynamics of gas from a low perm rock to a well.

Sponsors:BG, BP, Chevron, CoP, Eni, Shell Cost:190k

Phase 2: developing these semi-analytic models for gas flow in heterogeneous low perm rock to account for e.g. damage near the well-bore, faults providing dominant conduits for flow etc.

Live Project15Growing technology"

Register to receive infoCheck proposal callswww.oil-itf.com

16What is a KTN?Delivered on behalf of Technology Strategy Board : Closing Technology and Market Gaps Network with shared interest in a technology areaKTNs are funded by the Technology Strategy Board and bring together industry and academia to:Acquire and share knowledge, participate in shaping future of strategically important technologies in the UKProvide activities and initiatives that promote the exchange of knowledge and the stimulation of innovation19 KTNs with a membership of around 60,000Newest KTNs are in Financial Services and Energy

17The KTN NetworkDelivered on behalf of Technology Strategy Board : Closing Technology and Market Gaps Accelerated innovation Access to funding Partnerships International engagement Cross-sector links Technology deploymentA network of networks delivering strategic value across UK technology sectors:

18The KTN NetworkDelivered on behalf of Technology Strategy Board : Closing Technology and Market Gaps- Aerospace & Defence- Biosciences- Chemistry Innovation- Creative Industries- Digital Systems-Digital Communications- Electronics-Energy Generation & Supply-Environmental Sustainability-Financial Services- HealthTech & Medicines- Industrial Mathematics- Intelligent Transport Systems- Low Carbon- Materials- Nanotechnology- Modern Built Environment- Photonics & Plastic Electronics- Sensors and Instrumentation

19KTN ObjectivesDelivered on behalf of Technology Strategy Board : Closing Technology and Market Gaps Improve the UK's innovation performanceAccelerate knowledge transfer of technology from academia and the science base into UK-based businesses Deliver improved industrial performance by driving the flow of people, knowledge and experience within the sectorEnable focused networking across individuals and organisations, in the UK and internationallyProvide a forum for a coherent voice to inform government of technology needs and issues

20KTN BenefitsLarge businesses supply chain development financial gearing on capital projects engagement with innovators regulatory issues definedmeet the vendor networking eventsUniversities & Research Institutes R&D collaborative project partner identification increased R&D funding access engagement with private investors IPR support knowledge transfer partnershipsSupply Chain, SMEs increased access to funding sources engagement with end users partner identification meet the customer networking events technology, market & policy enquiry service Delivering real and measurable benefits across technology communities

21

Interactive web portal accessFocused networking events programmeGlobal outreach international engagementSpecial Interest GroupsAdvisory HelpdeskKTN Member Services Information : Communication : Innovation : Partnerships : Funding : Technology uptake 22Interactive Web PortalsInformation hubs with regular updates

R&D proposal calls and signposting International bench marking reportsNew Technology & Investment ReportsEvents Directory Technology, Markets & Legislation Updates Project Funding Landscape Navigation ToolPartner Search ToolSupply Chain Capabilities Directory & Search ToolInteractive navigation & search toolswww.ktnetworks.co.ukBuilding on Existing Networks and Associations Energy KTNWave & TidalFuel Cells & HydrogenMaximising Oil & Gas ResourcesFuture & Emerging OpportunitiesOffshore WindCarbon Abatement TechnologiesLarge Power StationsUtilities/Operators

Equipment Suppliers

Trade Associations

Universities

Research Institutes

Investment Firms

Certification Bodies

Regulators

Govt. Funding Bodies

Scotland/Wales/RDAs

Other KTNs

Why Join a KTN?It is FREE!Networking - frequent opportunities to network with businesses and other academics through targeted events, meetings and Special Interest GroupsInformation and news - free access to on-line services

ReportsNewslettersWebinarse-trainingEvents diariese-conferencingcollaboration toolssector specific informationFunding opportunities -advice on Technology Strategy Board Collaborative R&D calls, other innovation funding, links into KTP/other programmesPolicy and regulation - a communications route between the technology community, Government and EU, giving members the opportunity to influence policies and regulation in the UK and abroadKTNs are playing an increasingly important role in the development of the Govts future technology direction (via the Technology Strategy Board) 25

www.ktnetworks.co.ukFind the relevant KTN/contact and join for FREE on: Which KTN for Me?26