Unocal, Schlumberger and Digital Oilfield Complete First Industry Standard e-Invoice Transaction; Milestone Reached for Electronic Commerce in the Energy Industry.

Energy Editors/Business Editors/High-Tech Writers

HOUSTON--(BUSINESS WIRE)--May 5, 2003

Unocal, Schlumberger Oilfield Services and Digital Oilfield reached a milestone in the automated electronic exchange of invoicing information by successfully completing the first PIDX XML (Extensible Markup Language) invoice transaction complying with API standards. XML enables seamless Web-based transactions among trading partners.

Unocal, an industry leader in electronic commerce, received and processed an invoice from Schlumberger, also a leader in e-commerce, through Digital Oilfield's OpenInvoice(TM) hosted application. Schlumberger created an invoice in the PIDX standard format directly from its ERP system. The invoice and corresponding service delivery ticket were then transmitted utilizing the RNIF (RosettaNet Implementation Framework) Transport, and Routing Protocol directly into Digital Oilfield's OpenInvoice application. Unocal then used OpenInvoice's functionality to route, code and approve the invoice. Once approved, the invoice was automatically uploaded to Unocal's financial system for payment. The transaction process fully complied with API's Recommended Practice 3901.

"Unocal, Schlumberger and Digital Oilfield, along with a number of other operating companies and suppliers, have been active participants in PIDX over the last few years. We now know that the PIDX RNIF standard works in a production environment," said Mike Comeau, e-Procurement Tools Manager for Unocal. "Unocal has an ongoing strategy to drive down costs through the use of technology that helps us change our processes.

"This first PIDX XML invoice is a significant step forward for our industry," continued Comeau. "The entire process complies with industry standards and will change the way we transact with our trading partners. This creates a win-win for both operators and suppliers as it reduces transaction costs on both sides of the equation."

Adds Mark Bruno, Unocal Project Manager, "We have very aggressive company goals set for the implementation and ramping of this solution. Successful adoption and use of the transaction standards keeps us on track for meeting these goals and providing significant value to the corporation."

PIDX (Petroleum Industry Data Exchange) is the Electronic Commerce Committee of the American Petroleum Institute (API), the primary trade association representing all phases of the oil and gas industry. By adopting the PIDX XML transaction standards, Unocal now has the capability to seamlessly receive, match and reconcile (approve or dispute) Schlumberger service delivery tickets, invoices and associated business documentation. Electronic documents now flow between Schlumberger field delivery and ERP systems through Digital Oilfield's OpenInvoice system to Unocal's Accounts Payable system. This opens up the possibilities for widespread industry adoption of standards by other operating companies and suppliers.

"The elimination of manual tasks and paper documents provides Unocal and Schlumberger true interoperability, removing any requirements for manual intervention," said Terry Thomas, eContext Development Manager, Schlumberger Oilfield Services. "The result is a reduction in total system costs for both trading partners."

"Many suppliers have been using our Web-based interface for invoice transactions with Unocal for the last year. However, we knew that a fully electronic solution -- from ERP system to ERP system -- was required for the larger suppliers. All of the parties worked closely together to make this happen. It truly has been a collaborative effort among Unocal, Schlumberger and Digital Oilfield," said Rod Munro, President and CEO, Digital Oilfield.

About the Organizations

Unocal is one of the world's leading independent natural gas and crude oil exploration and production companies, with principal operations in North America and Asia. For more information visit www.unocal.com.

Schlumberger (NYSE:SLB) is a global oilfield and information services company with major activity in the energy industry. The company employs 78,000 people of more than 140 nationalities working in 100 countries, and consists of three business segments. Schlumberger Oilfield Services is the world's premier oilfield services company supplying a wide range of technology services and solutions to the international oil and gas industry. SchlumbergerSema is a leading supplier of IT consulting, systems integration, and network and infrastructure services to the energy industry, as well as to the public sector, telecommunications and finance markets. WesternGeco, jointly owned with Baker Hughes, is the world's largest and most advanced surface seismic company. In 2002, Schlumberger revenue was $13.5 billion. For more information, visit www.slb.com.

Digital Oilfield delivers Internet-based solutions that automate and integrate financial and operational processes between E&P companies and their suppliers. Our products simplify complex workflow processes and enable collaboration within and between organizations. Drilling, Production, Finance, Procurement, and Purchasing departments, as well as external service suppliers and partners, all use Digital Oilfield solutions.

PIDX's vision is to achieve petroleum industry and enterprise-wide integration of business processes through seamless electronic business communication. PIDX's mission is to influence the architecture and facilitate implementation of effective standards and processes for electronic business communications within the petroleum industry community. In addition, PIDX seeks to leverage the inherent value in existing EDI standards as well as actively pursue the benefits of emerging e-Business technologies. http://www.pidx.org/.

(TM) Digital Oilfield