Eric Toogood, Norwegian Petroleum Directorate - NPD

Retendering an NDR – Experiences from

Norway

NDR2014, Baku, Azerbaijan

Norwegian continental shelf

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Norway - The Petroleum Sector

Parliament

Government

Ministry of

Finance

Min. of Petr.

and Energy

Norw. Petr.

Directorate

Min. of Labour

and Gov. Adm.

Petroleum

Safety

Authority

Norwegian Petroleum Directorate - NPD

Reporting to the Ministry of Petroleum and Energy (MPE)

Advisory body

Exercise management authority

200+ employees

NPD will contribute towards creating the greatest possible value for society from oil and gas activities

through prudent resource management based on safety, emergency preparedness and safeguarding of the external environment.

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The Norwegian National Data

Repository (NDR) - Diskos

• NPD and major oil companies set up the Norwegian

NDR – “Diskos” in 1995

• outsourced solution

• digital store of field, pre-stack & post-stack seismic

data, well data and monthly production data

• available online 24/7

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Seismic

Well

Production

Trade

The Norwegian National Data

Repository (NDR) - Diskos

• Run by

– PetroData 1995 – 2003

– Schlumberger 2004 – 2008

– Landmark 2009 – 2014

– CGG/Kadme 2015 – 2020

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Seismic

Well

Production

Trade

Diskos

Joint venture

• NPD

• Oil Companies

• Associated Members

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Diskos – 58 oil company members!

Associated members

• Companies (20)

– PGS

– Western Geco

– TGS Nopec

– Aker Geo

– + +

• Universities– Stavanger

– Oslo

– Bergen

– Tromsø

• Geological Survey of Norway (NGU)

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Diskos Tender

Diskos RFP & Contract

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Focus areas

• Functional requirements– meet the needs of the end users– products and services in line with these

• Open data model– Documented and extensible

• Competition– A good choice of service providers

• Bids on individual data modules– i.e. well, seismic, production, trade

• Service level agreements– Not all of the data needs to be accessible at the «touch of a button», i.e. field data –

but how long should it take and at what cost?

• Business model– Pricing that leads to an optimal solution for management of G&G data

• Open Standards– SEG, Energistics, ISO

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Functional Requirements

• Requirements are not about «Requirements»– Not a sofware product

• The focus must be on the business process

– There is an important difference between building a piece of software and solving a business problem

– The former does not necessariy accomplish thelatter!

• When the requirements have been described, they must then be successfully communicatedto the developers

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Some of our experiences

• The total process:– You need plenty of time

– What are the constraints? When does your present contract expire?

– Decision process

• Domain experts are essential in specifying the requiremnts– But – all to easy for end users to think of «how we do things today» and not

«how should I be able to do this in a more perfect world»?

– i.e. understanding the business process

• As a consortium with many stakeholders Diskos had a particular

challenge in getting the right people into the process and ensuring that

they had time to work on the problem

• Some requirements were not always clearly defined or were «implicit» in

our RFP/Tender– This led to the need for clarifications and «Change Orders»

• Clarifying current business «workarounds» or poor business processes– How do you fix these and when?

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A couple of examples

• Download post-stack data (seismic)

• This functionality must enable the Company Data Manager and the Geoscientist of member companies to select post-stack data for download by:

• clipping the data geographically based on a polygon• delimit the data in time• inline/cross line or CDP range• decimate data in time• inline/cross line or CDP increments for 2D lines• decimate horizontally and vertically • clipping and scaling (amplitude) must be available• selection of transport medium must be possible. The alternatives should

first be between Media or FTP, and if Media is selected between tape or disk.

• the download format is SEG-Y.

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A couple of examples

• Completeness control (well data)

• This functionality must be able to track the

completeness of a dataset, e.g.– What the license operator plans to acquire

– What was actually acquired

– What was reported

• in accordance with NPD reporting requirements for digital well

data (ref. NPD Resource Management Regulations, section

24, and further detail in Blue Book).

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The contract

• Your contract can always be better!– We chose to adopt the standard contract:

• Norwegian Government standard Terms and Conditions for IT

Procurement SSA-D

• Well documented contract based on experience with procurement of

large IT systems in Norway• Lot of guideance in the contract

• Well defined Customer Acceptance Test criteria

• Approval period – Delivery date

– Error handling

– Classification of undesireable incidents• A – Critical – All or material parts of the operational services are unavailable

• B – Serious – Certain critical functions do not work, or work with response times that are

material inferior to the agreed

• C – Less serious – Non critical functions do not work, longer response times than agreed

– Gives power to the customer

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Norwegian Government Standard Contract

Contract standard

The contract is based on the Norwegian

Government standard Terms and

Conditions for IT Procurement SSA-D

"Operational Services Agreement.

Agreement for the purchase of

operational services relating to

hardware, infrastructure and software."

Duration

Contract period of seven (7) years.

This includes one (1) year of transition and

six (6) years of operation.

Option for three (3) additional years.

Operational Service

Agreement– Appendix structure:

1. Customer requirement

specification

2. Contractor solution

specification

3. Customer’s technical

platform

4. Project and progress plan

5. Service level with

standardised price

reductions

6. Administrative provisions

7. Total price and pricing

provisions

8. Changes to the general

contractual wording

9. Changes subsequent to the

conclusion of the Agreement

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RFP – Evaluation Criteria & Weight

General mandatory requirements

– Formal requirements

Mandatory Technical Criteria

– Technical compliance (information,

functionality, governance and security)

– All technical requirements listed in

appendix 1

Technical Solution – Weight 30 %

– Robustness of the presented technical

solution (15 %)

– Usability of user interface (10 %)

– Degree of openness

(Data model) (5 %)

Commercial Criteria - Weight 70 %

– Price* (50 %)

– Contractual Compliance ** (15 %)

– Level of deviation to the general

contractual wording

– Contractual and operational Risk (5 %)

– Level of use and dependency of

sub-contractors

* Total cost for the contract period based on a forecast, and the cost

sensitivity of the proposal will be evaluated.

**Changes to the contractual wording shall be stated in Appendix 8, so

that the wording of the general contractual wording remains unchanged.

It must be stated clearly and unequivocally which clause or clauses in

the Agreement the Contractor would like to change. The Contractor

should, however, be aware of the fact that reservations or changes to

the Agreement in connection with the submission of the tender may

result in a lower score or even rejection of the tender by the

Customer.

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Solution Providers

• Which companies are able to deliversolutions?

–Our experience:

• RFP published in:

–TED (Tenders Electronic Daily)»European Union

–Doffin»Norwegian database for publicprocurement

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Seismic

Prequalified Tenderers

Schlumberger

CGG

Landmark

Wipro

Teradata

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Well

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Prequalified Tenderers

Schlumberger

CGG

Landmark

Wipro

Teradata

Production

Prequalified Tenderers

CGG

Schlumberger

Landmark

Wipro

Webstep

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Trade

Prequalified Tenderers

Kadme

Contract Award CGG & Kadme

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Diskos - CGG & Partners

• Open, PPDM data model, provided by CGG’ Trango solution

• CGG quality verification tools, tape copying and transcription software

Main data center will be the EVRY facilities in Green Mountain

Secondary data center also operated by EVRY, in their facilities in Forus

Data operations, support and administration will be provided from KADME’s offices in iPark, Stavanger

Open architecture framework, provided by KADME’s Whereoilplatform

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Challenges

• Many stakeholders– Diskos Members

• Oil companies

• Norwegian Petroleum Directorate

• GTO (Norwegian Oil and Gas) – Trade

– NOSG

• Associated members

– CGG• Sub contractors – Kadme & Evry

– Kadme

• Project Management & Decision taking

– Diskos Core Team – (Diskos Management + Consultants)

– Diskos Reference Groups

– Diskos Steering Group

– Diskos Management Committee

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Challenges

• Requirements process– Thorough description of all requirements– Dialogue to clarify requirements that were unclear– Understandning workflows

• New functionality to replace workarounds

• Software development– Trango + Whereoil

• Off the shelf products – but need further developmentto meet Diskos requirements

• Data migration– Migration from current PetroBank solution to PPDM

data model• Understandting the current data model• Successfull mapping• Essential information in the hands of a few key people

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Challenges

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• Timeframe– New contract planned start 1 January 2015

• CGG – New Organisation– Sub contractors – Kadme, Evry

• Interdependencies– Each module is a separate contract

• All to go live on same date and work together

• Data transfer – Large volumes

• Tape based

• Disk based

• How?– Face to face meetings– Video

– Telephone

• Shared communication portal

«Basecamp»– Information posted in one area

• Messages

• Discussions/feedback

• Shared documents

• Sub-divided into «project areas» with controlled access

– Reduce e-mails to a minimum

Collaboration/Communication

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Data Migration - Timeline

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• Comprehensive plans– 4 modules– Seismic, well, production– trade

• Detailed discussions withCGG & Kadme beforeapproval– Reference groups– Diskos Core Team

• Alignment with Landmark• Transfer methodology

– Oracle database• Metadata• Entitlements

– Bulk data transfer• Approx 1 Petabyte• From current DR site

Data transfer

• Large data volumes – approx 1 Petabyte of data– Seismic, well and production date– Disk and tape storage

• Seismic data – most of the volumes– Field, pre-stack nav-seis merge– Post-stack data

• Post-stack data stored in TSM system– Copy process from tape

• Challenges to create an optimal data flow• Good dialogue between Landmark (current operator) and CGG/Evry

• Field and pre-stack data– Copy from Isilon disk system – faster process

• Data received by CGG on GPFS system for disk/tape-based storage

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Data migration

• Data base dump– Oracle db

– Analysis/mapping of db• Understanding the data-model

• Entitlements setting at the most granular level

– Ensure that all access rights are correct in the new system

– Ownership rights, user rights, public data

• «As is» data vs. «New data»– «as is data» migrated without change

– New software functionality allows for improved use of

meta-data/attributes etc.• Will initiate projects to improve database

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CAT (Customer Acceptance Tests)

• Testing is essential to guarantee product quality

and project success

– The goal is not only to find failures, but to build trust by measuring

quality

– To identify and expose defects and associated risks, communicate alle

know issues to the project team

– Ensure that all issues are addressed in an appropriate manner prior to

implementation

• Quality in testing is essential!

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Approval period (including parallel loading)

• Two months - 1 November – 31 December 2014– Data base (PetroBank Oracle) snap shot 31.10.2014

– CGG & Kadme systems up and running• Fully functional

• Testing of all operational aspects of the solution

• Reference groups testing

• Other end users

• Operations

– Landmark contract still in operation until 31.12.2014• Data loading at LMK (business as usual)

• Data then shipped to CGG for parallel loading

– CGG ready for business 1.1.2015

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Training

• New software

• New workflows

• Reference groups– Training through CAT tests

• Remaining member companies– Oil co’s & Associated members

• Focus– Data maintainers (today’s experts)

– Other users in member companies

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Reporting Requirements – modified

• Yellow Book – geophysical data – seismic etc.

• Blue Book – digital wellbore data

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Adjusted business model

• Annual fee for each individual module:– Production

– Well data

– Trade

– Seismic• download fees/mb in addition

• The business model/technology mix enables NPD/Diskos to have

an more comprehensive approach to storing G&G data from NCS.

– Fulfilling the original intensions when Diskos was created

• Storage of all seismic data*– Field data

– Pre-stack nav-seis merge

– Post-stack (significant versions)

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*Exemption to reporing requirements for commercially available seismic can be applied for (does not apply

to post-stack data)

Data storage obligations

• Licensees have an obligation to store data in perpituity according

to the petroleum legislation (Petroleum Act, section 10-4)

• For data that has been correctly loaded to Diskos, in compliance

with the Regulations, the licensees or individual companies can

obtain permanent release from their obligation to store data

(on application)– For licence participants this is an issue for all of the members of the

licence, even though the operator has a particular responsibility

• From 2015 the NPD will require all seismic data to be reported

from point forward

• Work will begin to ensure that as much pre-2015 field and pre-

stack data is loaded to the database– The NPD will work with the Diskos community towards this goal

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New operator – new software – new names

• Overall solution:– Diskos National Data Repository - Diskos NDR

• Modules:

– Diskos Seismic DB

– Diskos Well DB

– Diskos Production DB

– Diskos Trade DB

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• Disaster Recovery site

• Forus, Stavanger

–Data receipt

–Data loading

Evry – Data Centre Services

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GREEN MOUNTAIN – Data Centre - Rennøsøy

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Questions?

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Le Vélodrome de la

réserve géologique de

Haute-Provence