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Press

Vienna, September 13, 2018

Digitalization in Oil & Gas

Siemens is optimizing oil production applying


digital technologies
 Digitalization improves performance of field operations in oil and gas
 Siemens’ SIWELL Artificial Lift suite applies artificial intelligence, smart
devices, cloud computing, and IoT for next-generation well automation
systems.

Digital technologies are helping almost every industry rewrite its operating landscape,
and the oil and gas industry is about to catch up. Advancements in technology, the
falling cost of digitalization, and the connectivity of smart devices provide a real
competition-beating opportunity for oil and gas companies who play the digital
revolution right. The potential benefits of going digital are increased productivity,
shorter response and intervention times, cost savings, safer operations, and asset
integrity as well as sustainable resource treatment.

Artificial lift and digitalization of well operations improve production in mature


fields
About 40 percent of global crude oil and natural gas production comes from mature
fields that have been in operation for more than 25 years. In fact, there are about 175
fields that have been producing for more than 100 years. That’s why oil and gas
operators are increasingly investing in so-called artificial lift systems (different types of
pumps for a forced oil flow out of the wells). A high degree of automation and
optimization of these systems is key to ensure cost-effective and sustainable oil
production, to reduce the natural decline, and to keep production high.

SIWELL Artificial Lift suite for optimized production


With SIWELL Artificial Lift suite, Siemens provides a scalable, end-to-end IoT solution
for the automation and optimization of artificial lift systems. It is designed to optimize
production and reduce costs through connected systems, automation, edge analytics,

Siemens AG Werner-von-Siemens Strasse 1


Communications 80333 Munich
Head: Clarissa Haller Germany
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Siemens AG Press release

and artificial intelligence.

With the latest Siemens edge technology, analytics and intelligence are moving close
to the field where the artificial lifts are operating. SIWELL uses existing sensors and
smart automation components as key inputs for edge data analytics. The edge
computing device, the Siemens Nanobox, performs real-time processing of the data
and enables advanced features like video processing, soft sensing for the replacement
of physical sensors, simulation of production facilities, and calculation of advanced
KPIs. Performing these calculations at the pump enables independent operation of the
well with a minimum of maintenance effort at the well site. Alarm functions with video
integration are available and can be accessed via a fully interactive web portal. This
innovation offers oil and gas operators a cost-efficient solution to automate and
connect artificial lift systems to an integrated network with minimal effort, while
providing a high level of automation. The plug-and-play concept in combination with
centralized device management can be installed within hours, thus reducing downtimes
for commissioning and enabling the centralized management and monitoring of
thousands of wells.

Artificial intelligence in the cloud enables predictive maintenance and


increases performance
The solution is tightly integrated with the Siemens MindSphere IoT platform, which
connects real things to the digital world and enables powerful industry applications
and digital services. It connects production facilities and applications for advanced
analytics of multiple wells. Artificial intelligence can be applied to predict failures of
the well days before they occur and increases the overall performance of oilfields by
optimizing operational set points like pumping speed.

“SIWELL Artificial Lift suite optimizes oil production and works with the utmost
efficiency. By applying analytics directly in the field and artificial intelligence in the
cloud, we enable autonomous operations of wells, increased productivity, and
sustainable treatment of oil and gas assets,” said Helmut Schnabl, principal
consultant for digital oil and gas at Siemens, at a press event in Vienna, Austria.

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Siemens AG Press release

The press release, images and further information are available here:
www.siemens.at/middle-east-press-delegation

Contact for the press:


Tamara Hamdan | Mobile: +971 56 511 8100
e-mail: tamara.hamdan@siemens.com

Michael Palmer | Mobile: +971 55 200 3873


e-mail: michael.j.palmer@siemens.com

Local contact Austria:

Kerstin Glatz-Krainz | Mobile: +43 664 8011723099


e-mail: Karin-kerstin.glatz-krainz@siemens.com

Siemens AG (Berlin and Munich) is a global technology powerhouse that has stood for engineering excellence,
innovation, quality, reliability and internationality for 170 years. The company is active around the globe, focusing on
the areas of electrification, automation and digitalization. One of the world’s largest producers of energy-efficient,
resource-saving technologies, Siemens is a leading supplier of efficient power generation and power transmission
solutions and a pioneer in infrastructure solutions as well as automation, drive and software solutions for industry.
With its publicly listed subsidiary Siemens Healthineers AG, the company is also a leading provider of medical
imaging equipment – such as computed tomography and magnetic resonance imaging systems – and a leader in

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Siemens AG Press release

laboratory diagnostics as well as clinical IT. In fiscal 2017, which ended on September 30, 2017, Siemens generated
revenue of €83.0 billion and net income of €6.2 billion. At the end of September 2017, the company had around
377,000 employees worldwide. Further information is available on the Internet at www.siemens.com.

This document contains statements related to our future business and financial performance and future events or
developments involving Siemens that may constitute forward-looking statements. These statements may be identified
by words such as “expect,” “look forward to,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “estimate,” “will,” “project”
or words of similar meaning. We may also make forward-looking statements in other reports, in presentations, in
material delivered to shareholders and in press releases. In addition, our representatives may from time to time make
oral forward-looking statements. Such statements are based on the current expectations and certain assumptions of
Siemens’ management, of which many are beyond Siemens’ control. These are subject to a number of risks,
uncertainties and factors, including, but not limited to those described in disclosures, in particular in the chapter Risks
in the Annual Report. Should one or more of these risks or uncertainties materialize, or should underlying
expectations not occur or assumptions prove incorrect, actual results, performance or achievements of Siemens may
(negatively or positively) vary materially from those described explicitly or implicitly in the relevant forward-looking
statement. Siemens neither intends, nor assumes any obligation, to update or revise these forward-looking
statements in light of developments which differ from those anticipated. Due to rounding, numbers presented
throughout this and other documents may not add up precisely to the totals provided and percentages may not
precisely reflect the absolute figures.

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