StatoilHydro and Schlumberger Collaborate to Optimize Reservoir Performance

Pilot Project Optimizing Secondary Recovery Indicates Potential for Increased Production

AMSTERDAM, February 2008 - StatoilHydro and Schlumberger Information Solutions (SIS) today announced that their joint R&D-collaboration on technologies for production and process optimization, initiated two years ago, has resulted in solutions that will enable optimization of reservoir performance.

StatoilHydro and SIS have developed and tested new technologies and practices to optimize StatoilHydro’s Water Alternating Gas (WAG) processes. Integration of proprietary and commercial technologies from Schlumberger enabled optimization of the WAG cycle with respect to all reservoir and surface constraints as well as business objectives. The resulting WAG schedule indicates potential for increased production, based on optimization that supports operational decision making. The new process incorporates real-time data and third-party technologies via PRODML.

“The technologies and workflows developed through our collaboration on this initial project have the potential to allow optimization beyond WAG processes to control and optimize a number of production management systems,” said Astrid Jørgenvåg, Vice President Research and Development, Increased Oil Recovery, StatoilHydro. “We are encouraged by work on the project thus far and look forward to promising results. Many of our fields use WAG processes to enhance recovery, and we expect material production increases from implementing similar work processes on other fields going forward.”

“This success represents a key milestone in achieving the ambitions of our collaboration with StatoilHydro. The joint pilot project delivers a material solution towards the realization of the digital oil field,” said Olivier Le Peuch, president, SIS. “We are pleased to have achieved such positive results and for the opportunity to test these technologies in an operational setting. We look forward to continuing our collaboration with StatoilHydro to deliver additional production innovations and accelerate industry adoption of these digital oilfield technologies.”

Other key deliverables developed by StatoilHydro and SIS include new “coarse” reservoir models that provide high resolution around the wells that support rapid reservoir simulation and automated real-time data management processes. Automated calculation and monitoring of key performance indicators, 24/7, allow field engineers to focus on diagnostic tasks and required actions.