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INTRODUCTION
Contents
A.

ABOUT THIS BOOK ................................................................... 8

B.

UNCERTAINTY .......................................................................... 8

C.

SAFETY ................................................................................... 8

D.

ENVIRONMENT ........................................................................ 8

E.

QUALITY ................................................................................. 8

F.

EXPLORATION & PRODUCTION PHASES ...................................... 9

G.

GENERAL BUSINESS PRINCIPLES ................................................. 9


OBJECTIVES .......................................................................................................................... 9
RESPONSIBILITIES .................................................................................................................. 9
ECONOMIC PRINCIPLES...................................................................................................... 10
VOLUNTARY CODES OF CONDUCT ..................................................................................... 10
BUSINESS INTEGRITY .......................................................................................................... 10
POLITICAL ACTIVITIES .......................................................................................................... 10
ENVIRONMENT .................................................................................................................. 11
GRANTS AND GENERAL COMMUNITY PROJECTS ................................................................ 11
INFORMATION ................................................................................................................... 11

H.

OVERVIEW OF CONTENTS ........................................................ 11

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A.
ABOUT THIS BOOK
This book provides material that is complementary to that covered during the EP00 module of Shells
training programme. It provides background material to support the course work and allows you to review
topics at a later date. However, it is no substitute for the experiences of the EP00 course itself!
Several themes run throughout the training programme: Integrating technical disciplines under a common business focus.
Uncertainty, and how to cope with it.
Safety, care for the environment, and quality as fundamental attitudes controlling our actions.
B.
UNCERTAINTY
The Exploration and Production business operates in a highly uncertain environment. By their very nature it
is impossible to know more than a few key facts about oil and gas reservoirs. The gaps in our knowledge
must be filled in using assumptions that are based on general physical principles, analogy with reservoirlike features on the present surface of the Earth and experience of how reservoirs have behaved in the past.
When faced with the problem of how a reservoir should be developed, there is rarely a single "correct"
solution. To address this type of problem requires a major mental shift from the academic style of thinking
practiced at most universities.
C.
SAFETY
Safety is an attitude. It is not something you can learn as a separate topic, but rather it is something which
influences how you think about everything else. Everyone within the company is responsible for his or her
own safety. Each employee also has a responsibility to ensure the success of the company's safety
programme by reporting and reducing the number of accidents and unsafe incidents.
In a sense this whole training programme is about safety. You can only avoid unsafe acts if you understand
what you are dealing with, and recognize that which you do not know. Recognizing that an act is unsafe is
not enough - you must also have the motivation and knowledge to do something about it.
D.
ENVIRONMENT
Protection of the environment is "good business". We can expect to lose business to any competitor who is
perceived to be more environmentally aware than us. Hence there is a business need to behave in a
socially responsible manner and to have the ability to demonstrate this in order to allay any unfounded
fears on the part of the public. Being open and honest about the environmental consequences of Shell's
activities will help to build confidence and credibility.
Environmental awareness is an attitude that cannot be decreed into existence. Environmentally sound
designs and practices require knowledgeable staff who are alert to the environmental consequences of their
actions.
The company would like to develop its own standards in advance of legal requirements. Discussions with
authorities must be backed by a sound scientific understanding of the real impact of our operations on the
environment.
We would like to avoid future liabilities by : reducing contaminants in effluents and wastes.
careful supervision of contractors.
good monitoring and recording procedures.
restoring land before abandoning a site.
E.
QUALITY
Quality can be summed up in one phrase - "conformance to customer requirements".
In this context, "customer" does not only mean a person outside our organisation who buys our products,
but embraces every individual employee receiving a service from another. We all have customers for our
work.
"Requirements" must be negotiated and agreed with the customer. Much the same idea is expressed on a
more technical level in engineering design, where great attention is paid to "fitness for purpose". Our
products should do what they are supposed to do, no more and no less.

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Most people are already familiar with the idea of being efficient in their work. Quality requires that we are
also effective. The difference between effectiveness and efficiency can be neatly summed up as: Effectiveness - doing the right thing
Efficiency - doing the thing right first time
F.
EXPLORATION & PRODUCTION PHASES
The following show the main phases within the E&P organisation that would be involved in the exploration
& production business discussed during this training programme, along with the various parties that will be
driving the activities.
Other Business support groups will supplement these technical groups in assuring good business
management. These would include Corporate Management, Personnel & Skill Management, Contracting &
Procurement, Legal, Business Planning & Development , Finance, HSE Management, Information Technology
Management and Quality Management.

G.
GENERAL BUSINESS PRINCIPLES
The following sections are taken in full from the "Statement of General Business Principles" published by the
Royal Dutch/Shell Group of Companies.

Objectives
The objectives of Shell companies are to engage efficiently, responsibly and profitably in the oil, gas,
chemicals, coal, metals and selected other businesses, and to play an active role in the search for and
development of other sources of energy. Shell companies seek a high standard of performance and aim to
maintain a long term position in their respective competitive environments.

Responsibilities
Four areas of responsibility are recognized:
a) To shareholders
To protect shareholders' investment and provide an acceptable return.

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b) To employees
To provide all employees with good and safe conditions of work, good and competitive terms and
conditions of service; to promote the development and best use of human talent and equal opportunity
employment; and to encourage the involvement of employees in the planning and direction of their
work, recognizing that success depends on the full contribution of all employees.
c) To customers
To develop and provide products and services which offer value in terms of price and quality, supported
by the requisite technology and commercial expertise. There is no guaranteed future: Shell companies
depend on winning and maintaining customers' support.
d) To society
To conduct business as responsible corporate members of society, observing applicable laws of the
countries in which they operate giving due regard to safety and environmental standards and societal
aspirations.
These four areas of responsibility are seen as an inseparable whole.

Economic Principles
Profitability is essential to discharging these responsibilities and staying in business. It is a measure both of
efficiency and of the ultimate value that people place on Shell products and services. It is essential to the
proper allocation of corporate resources and necessary to support the continuing investment required to
develop and produce future energy supplies to meet consumer needs. Without profits and strong financial
foundation it would not be possible to fulfil the responsibilities outlined above.
Shell companies work in a wide variety of social, political and economic environments over the nature of
which they have little influence, but in general they believe that the interests of the community can be served
most efficiently by a market economy.
Criteria for investment decisions are essentially economic but also take into account social and
environmental considerations and an appraisal of the security of the investment.

Voluntary Codes of Conduct


Policies of Shell companies are consistent with the two existing internationally agreed codes of conduct for
multinational enterprises, namely the OECD Declaration and Guidelines for International Investment and
Multinational Enterprises and the ILO Tripartite Declaration of Principles.

Business Integrity
Shell companies insist on honesty and integrity in all aspects of their business. All employees are required
to avoid conflicts of interest between their private financial activities and their part in the conduct of
company business. The offer, payment, soliciting and acceptance of bribes in any form are unacceptable
practices. All transactions on behalf of a Shell company must be appropriately described in the accounts of
the company in accordance with established procedures and be subject to audit.

Political Activities
a) Companies
Shell companies endeavour always to act commercially, operating within existing national laws in a
socially responsible manner, abstaining from participation in party politics. It is , however, their
legitimate right and responsibility to speak out on matters that affect the interests of employees,
customers, and shareholders, where they have a contribution to make that is based on particular
knowledge.
b) Political payments
As a policy Shell companies do not make payments to political parties, organisations or their
representatives.
c) Employees
Where employees, in their capacity as citizens, wish to engage in activities in the community, including
standing for election to public office, favourable consideration is given to their being enabled to do so
where this is appropriate in the light of local circumstances.

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Environment
It is the policy of Shell companies to conduct their activities in such a way as to take foremost account of
the health and safety of their employees and of other persons, and to give proper regard to the
conservation of the environment. In implementing this policy Shell companies not only comply with the
requirements of the relevant legislation, but promote in an appropriate manner measures for the protection
of health, safety and the environment for all who may be affected directly or indirectly by their activities.
Such measures pertain to safety of operations carried out by employees and contractors; product safety;
prevention of air, water and soil pollution; and precautions to minimise damage from such accidents as
may nevertheless occur.

Grants and General Community Projects


The most important contribution that companies can make to the social and material progress of the
countries in which they operate is in performing their basic activities as efficiently as possible. In addition
the need is recognized to take constructive interest in societal matters which may not be directly related to
the business. Opportunities for involvement - for example through community educational or donation
programmes - will vary depending upon the size of the company concerned, the nature of the local society,
and the scope for useful private initiatives.

Information
The importance of the activities in which Shell companies are engaged and their impact on national
economies and individuals are well recognized. Full relevant information about these activities is therefore
provided to legitimately interested parties, both national and international, subject to any overriding
consideration of confidentiality proper to the protection of the business and the interests of third parties and
the need to avoid wasteful information exercises.
Increasingly the behaviour of large companies is subject to rigourous external scrutiny. The reputation of the
Royal Dutch/Shell Group of Companies depends on the existence and knowledge of clearly understood
principles and responsibilities and on their observance in day to day practice in widely differing
environments. Although individual operating companies may elaborate their own statements to meet their
national situations, this Statement of General Business Principles serves as a basis on which companies of
the Royal Dutch/Shell Group, in their operations, pursue the highest standards of business behaviour. Shell
companies also promote the application of these principles in joint ventures in which they participate.
H.
OVERVIEW OF CONTENTS
The first three chapters of the book provide a picture of what a reservoir is and how we describe it once
we have found it. They also cover the sort of information that we can find out about a reservoir and also
the key information that we do not know.
Chapter 2
The Reservoir
Chapter 3
Acquisition of Reservoir Data
Chapter 4
Reservoir Description
The next three chapters describe the stages in the life of an oil or gas field, and the activities which must be
carried out at each stage.
Chapter 5
Appraisal Planning
Chapter 6
Development
Chapter 7
Production Operations
The final two chapters outline some of the business "tools" applied to manage the various activities during
the life of a field.
Chapter 8
Petroleum Economics
Chapter 9
Project Management

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