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Dr. Aliya HUSEYNOVAProject Manager,

Chief of CDB Department, ITRI SOCAR (Azerbaijan)

ODLAR@socar.az

Kuala Lumpur Oct 23, 2012

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State Oil Company of Azerbaijan Republic

SOCAR is a 100% state-owned commercial legal entity established in accordance with the legislation of the Azerbaijan Republic in 1992. The Company’s principal business activities are the exploration, development, production, transportation and marketing of oil and gas.

In addition to being the National Oil Company (NOC) of Azerbaijan, SOCAR is the regulatory authority for the management of the Petroleum and Natural Gas resources on behalf of the Government of Azerbaijan.

SOCAR has over 90 total years of experience in the E&P sector starting from Soviet era, and has gained a worldwide track record as a historical centre of excellence for its high quality technical personnel, and its total commitment to supplying the highest levels of producing hydrocarbons

SOCAR also represents the interest of the Azerbaijan government in more than 30 oil and gas PSA contracts signed with international and national companies in 1994-2011.

Over 20 main subdivisions, over 80,000 employees

Production in Azerbaijan was started in 1840-s in Bibiheybat field (Baku). First (wooden) 9-km pipeline was built in 1907 at Balakhani field

SOCAR headquarters are based in Baku, Azerbaijan

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SOCAR NDR Project ObjectivesSOCAR has determined the need for construction of a database in order to support

its activities as an operating company, as well as to preserve the datagenerated by other operating companies in Azerbaijan, and to promote newE&P blocks through licensing rounds or direct negotiations.

Expected Benefits• Preserve in digital form all new technical data generated by SOCAR own activities• Preserve in digital form all technical data submitted by joint venture companies• Convert to digital form and preserve historical data that is mainly on paper• Promote oil and gas licences more effectively• Provide quick access to data by “entitled” users (users with granted rights to access data)• Easily assemble datasets for project work

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• GOALS OF THE SOCAR National Data Repository (NDR)– To establish an NDR containing all main types of SOCAR technical data and make these data

available to entitled users within the SOCAR company. Empower SOCAR staff to operate and maintain the NDR independently.

• Tender procedure was started in 2009. About 30 companies, including industry champions, have applied for this tender bid. Fugro was announced as a winner in Nov 2009

• 3 Year Project signed in March 2010, with option to extend for a further 2 years• Main Data Types

– Well data -- Sample analysis data– Geophysical data -- Reservoir data – Production data -- Engineering Geology data – Drilling data -- Spatial (map) data

• Fugro - Focused on knowledge transfer – Empowering rather than Doing– To Provide formal and on-the-job training and supervision of SOCAR staff– To supervise the loading of the pilot data

• Pilot Data Load – Years 1-2– 1800 Wells 1000 2D Seismic Lines 10 3D Surveys

• After the Pilot Data Load Phase (April 2012) SOCAR Staff took over the running of the NDR, with support from FDSL

SOCAR NDR Project Overview

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SOCAR NDR Project TeamMarch 2009 - creation of the SOCAR ITC Corporate Data Base (CDB) Department consisting of 3 engineering and 1 technical divisions:•Division of Data Quality Control (12 software engineers and specialists)•Division of Data Loading (12 software engineers and specialists)•Modeling Division (12 engineers, geologists, geophysicists, petrophysicists, exploration engineers)•Technical Division (14 operators, technicians, and scanners)The project is served by IT team of 6.All team members are trained and certified on Fugro Data Management and Scanning technology.

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Team Work – Main Project BenefitNow, after 30 months of project, real SOCAR CDB Project Team has been created. CDB Department teams (Infrastructure, Core, Data Quality, Scanning – 56 people) now work in close collaboration with SOCAR units (Extended Data Loading Team from drilling, producing, G&G – 60 people, SOCAR VP, administration and divisions management – 10 people), which empowers the whole project. Several important decisions and solutions were implemented as a result of collaborative team work.From May 2010, SOCAR NDB Project is known as ODLAR Project. ODLAR (‘Flames’) stays for Oil Data Library of Azerbaijan RepublicThe name and logo for SOCAR NDR project is a result of competition in CDB Department in May 2010.

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SOCAR CDB Project (3-years initial term) was signed in March 2010 and actually started in April 2010. From May 2011, SOCAR CDB project entered 3rd of 5 planned phases – Training&Pilot Data Loading 1. Actual data loading performed by Extended data loading Team (60 people on 20 SOCAR sites) was initially implemented at 5 Producing Units, 3 Drilling and 2 Geophysical divisions. From Sept 2011, data loading was extended to all 10 Producing, 5 Drilling and 4 Geophysical sites. In Nov 2011, planned volume of 900 wells and 500 2D seismic lines was reached, and 4th Phase of Project – Pilot Data Loading 2 and On-the Job Training – was started. From March 2012, Project Team has successfully fulfilled Pilot Loading goals and entered Phase 5 – M&S: •1931 wells from 29 oil fields completely loaded to CDB, •17,121 original documents scanned and stored in CDB, •More than 1000 2D seismic lines loaded to CDB

SOCAR NDR Project Phases 1-4

7615

19

9

233

1

11

5

510

Bulla-Dəniz, 91

Ələt-Dəniz, 108

Qalmaz, 92

Bibiheybət, 246

Palçıq Pilpiləsi, 235

Günəşli, 199

Buzovna-Maştağa, 159

Qaradağ , 77

1036 334

7

221011

1

26GünəşliPalçıq PilpiləsiBibiheybətQalmazMuradxanlıCəfərliƏlət-Dəniz8-MartBulla-DənizÜmidSəbailÇıraqAzəriKəpəzHamamdağSəngi-MuğanAran-DənizDaşlıQaraçuxurBuzovna-MaştağaSiyəzən-NardaranPirallahi adasıUmbaki BandovanPuta Qaradağ LokbatanKöhnə QalaQala

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SOCAR NDR Project Status Oct 2012Phase 5 – M&S – started in April 2012Over 80 external users (SOCAR VP, SOCAR HQ management, Azneft, Drilling, Geophysics, GIPRO)

Main Data Types now in ODLAR:Spatial data (coastal lines, pipelines, field boundary and other facilities)• Well data 3600+ wells, 31 oil fields• Geophysical data (LAS, SEGY, WGS84, 2D, 3D, VSP and etc) 1700+ SEGY&pdf on 40,000 km2 seismic surveys, 700+ LAS (3-10 curves), 250 deviation surveys etc• Exploration data 2000+ wells• Drilling data 1600+ wells• Engineering Geology data• Field data• Scanned documents 31,000+ scanned originals (maps, well passports, reports, production etc)

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SOCAR NDR Project – ISSUES 1. At the beginning of the Project – big delay in data access/acquisition

(procedures of obtaining access took several weeks/months)2. Lack of geologists/trained specialists in Data Loading Teams on

participating sites 3. Big volume of data for old wells (staring from 1902 now in CDB) 4. Proceeding with old&delicate documents in different formats,

mostly stored in old archives5. Historic documents come on both Azeri and Russian language, on

Latin and Cyrillic alphabet6. No unique standard in naming wells, horizons, oil fields, seismic

lines, measurement units7. Oil fields were being renamed, divisions merged/unmerged, so did

archives. Some data were lost, names were changes several times.8. Data updating issue on sites (for example, once a well was created in

NDB with historical information, there is no clear procedure/devoted personnel to update this well, even on monthly basis)

9. Slow logs acquisition (95% of logs located in 1 unit, slow digitising, log consists of several parts, etc)

10. Some data types still are not available (such as real field coordinates, pipelines, other culture data)

11. Changing SOCAR structure causes changes in entitlements, data owners, access privileges, technical problems etc

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1. SOCAR CDB represents wide range of main data types (spatial data, well, log, geophysical, production, drilling data, sample analysis, reservoir data, and engineering geology)

2. Naming convention and standard names for wells, oil fields, horizons, seismic lines and logs were developed during CDB project phases

3. Data base structure was in fact developed by SOCAR (CDB Department ITRI)4. Intellectual templates for initial data entry and QC were developed by SOCAR

in collaboration with FDS5. A set of dictionaries containing standard names was created for many data

attributes 6. Procedures and protocols of data collecting, preparation, initial entry, QC,

uploading to DB, dictionaries creation and edition, change in entitlements were developed by SOCAR in collaboration with FDS

SOCAR NDR Project – SUCCESSES 1

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ODLAR DB Structure

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7. Data became available for easy search and use, tremendous time saving for project groups and reporting

8. Historical data are now preserved in electronic format9. Original documents (including old, delicate and non-standard) are now scanned

and saved 10. Flexible system of data access, entitlements, information security allows to create

individual and group roles & privileges (more than 80 ‘external’ CDB users now have 20+ different access types; number of users is increasing)

11. Open DB architecture allows to include new data types (for example, daily production, ecological data)

12. CDB operating system is now available in 3 languages (English, Azeri, Russian)13. Providing new HW (PC, scanners) and training for Data Loader Teams in places

facilitated increased effectiveness on each participating site 14. Reports are created by users’ request

SOCAR NDR Project – SUCCESSES 2

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1. There was no standard data model presented to SOCAR as initial draft 2. Absence of clear workflow for data access, site assessment, data ownership,

copyright etc caused problems on initial stage of Project (explaining to other subdivisions what is CDB, obtaining access to data, choosing data for pilot and first phase of loading, working with data owners, etc).

3. No ready standard data types (tables) were presented as initial draft4. There is no ready link from CDB to interpretation systems, which causes

insufficient usage from project groups5. Lack of resources in data loaders teams on sites causes more CDB personnel to

assist in data preparation and entry

SOCAR NDR Project – PROBLEMS

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1. Expand CDB usage to JV and external clients (OCs)

2. Improve data quality and completeness

3. Implement data updates on monthly basis

4. Expand reports pool, by users request, especially for geophysical units

5. Work out live links to interpretation systems

6. Expand existing data types to have more culture data, ecological data etc

7. Exchange experience with CIS and other countries

8. Start to develop basics for commercial usage of CDB

SOCAR NDR Project – FUTURE PLANS

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SOCAR NDR Project – Building A Success

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"Our ultimate aim - to turn Azerbaijan into a developed country “

Ilham Aliyev