DigitalROCK Virtual Lab

DigitalROCK® Virtual Lab

Enhanced Oil Recovery (can be water, gas, chemicals, steam)  In primary stage of an oil field only 10-30% of the oil is recovered Goal of Oil Recovery is for injected fluid to release trapped oil and carry it to producing wells  Remaining 70-90% remains trapped in the porous rock underground  Producing trapped oil by injecting fluids into the reservoir is called Enhanced Oil Recovery (EOR)  1000’s of oil fields across the world are candidates for EOR  Additional recovery from these fields has huge economic potential  Typically $100M - $1B per field  Big potential is offset by high cost, long project times, and large uncertainty  A major uncertainty is how much trapped oil can be recovered??  This critical data is difficult and time-consuming to measure in the lab  DigitalROCK provides a fast & reliable method to assess EOR potential!

Problem  High uncertainty in oil recovery process  Takes months for accurate rock sample analysis  Speed or Accuracy has to be compromised  Rock sample cannot be reused due to history effects  Lab tests require larger rock samples  A loss of 1% volume in 80 million barrel filed represents a loss of $60M revenue  Lower oil price reduces operating margin and affects investment in oil fields

Consequences Primary Recovery (20%)  Oil production is  Reservoir Natural Drive determined by Relative  Artificial Lift Permeability Secondary Recovery (15%)  Relative Permeability remains one of the  Water flooding largest contributors to  Pressure Maintenance production uncertainty Tertiary Recovery (20%)  Production Uncertainty affects all phases of oil  Gas injection recovery  Chemical (Surfactants)  Polymers & many others  Higher uncertainty leads to less oil Residual Oil (55%) extracted over the lifetime of reservoir and  Production that is economically reduction in revenue or technically un-producible

Solution: DigitalROCK Virtual Lab DigitalROCK simulation of oil (gold) displaced by injected water (blue), solid rock (gray) removed except at bottom.

DigitalROCK Virtual Lab (To Be) Process Scanning and image processing 2 Porosity, pore size distribution 1 Upload to SIMULIA Cloud 3 3D Scan of Rock Sample (Digital Twin) Pore Space Analysis Predict oil recovery under various field conditions Relative permeability, capillary pressure data Permeability, porosity-permeability trends 56 45 4 EOR Studies Multi-Phase Flow Routine Core Analysis

Comparison Study As Is Faster Returns To Be Traditional Approach Business as Usual With DigitalROCK  Constrained by physical $ Break-Even Break-Even limitations, time and money  Digital test program years measured in weeks  SCAL test program takes 1- 2 years DigitalROCK Virtual Lab  Run many field scenarios across many rock samples  Loss of interest by technical teams, investors deaf to  More, better data  more IOR/ EOR value confidence  Project investments become  Faster decisions  earlier timed out break-even, better returns  Stagnation where there  More funding for more should be strong interest projects SOONER!

Customer Reference – Partnership with BP  Objectives  Accurately predict relative permeability  Study multiple samples in parallel  Benefits  Rapid turn around of rock analysis  Develop better understanding of oil fields In 2019, BP generated 200 Relative Permeability curves compared to their physical lab which could only produce 20.

DigitalROCK Virtual Lab Advantages  Analyze more samples faster for better rock property data and higher confidence  Democratizes application to be usable by many scientists and engineers  Access permanent database of rock samples and results  Sample will be permanent and non-deteriorating  Perform what-If study on wide range of operating condition and material property

DigitalROCK Virtual Lab Value  DigitalROCK reduces risk by quickly determining how much trapped oil can move  Improve decision support for field development planning  Reduction in uncertainty helps de-risk Enhanced Oil Recovery projects  Reuse digital samples for various scenarios  Investigate potential additional recovery using Surfactant digitally and save surfactant cost  Reduce Time to First Oil  Get results in few days instead of months needed for lab tests

DigitalROCK Virtual Lab Differentiators  DigitalROCK uses accurate pore space of the rock matrix through which fluids flow  Lattice Boltzmann based accurate physics solver  Streamlined automated workflow for easy use  Available On Cloud and On Premise



Reference Material  DigitalROCK Oil Recovery – A Virtual Rock Lab for Better Field Planning | SIMULIA eSeminar (https://www.youtube.com/watch?v=ffRUC4daKT4)  VIRTUAL Workshop - A Virtual Rock Lab for Enhanced Oil Recovery (https://www.youtube.com/watch?v=EENBqZ6CtRw)  Oil and Gas Digital Transformation - Reusable Examples from other Industries (https://www.youtube.com/watch?v=mqq0pbvEUbY)  https://dsxoffer/RTM2e/SIMULIA/SIMULIA_2014/index/VARs/ppt/DigitalROCK_Com pellingValue_SalesInitiatives_v3a-SHOW-CUSTOMER-DO-NOT-DISTRIBUTE.pptx  Unifed Reservoir (https://dsext001-eu1-215dsi0708- 3dswym.3dexperience.3ds.com/#community:139/media:5jqahSlZRMmcOU_- 0l3Y0A)  BP video on YouTube - https://www.youtube.com/watch?v=T6KqoHsGutk