OPC's David Gorsuch and INTECSEA's John Harley recently delivered this presentation at the 9th Annual Offshore Production Technology Summit in London. The presentation highlights the importance of integration between the subsurface and surface facility design teams in achieving optimal field development plans for oil & gas assets.
Decommissioning of Offshore InstallationsMuanisa Waras
This training course will help your team improve your decommissioning strategies to reduce your offshore liabilities. Delegates will gain an in-depth understanding of the Asia Pacific market to prepare your company for decommissioning projects in the coming years. Your team will have an overview of the future challenges for the decommissioning market for operators and contractors and the strategies that need to be implemented to move projects forward. You will be able to formulate an effective and efficient decommissioning supply chain of experienced contractors to remove
offshore installations.
Decommissioning of Offshore InstallationsMuanisa Waras
This training course will help your team improve your decommissioning strategies to reduce your offshore liabilities. Delegates will gain an in-depth understanding of the Asia Pacific market to prepare your company for decommissioning projects in the coming years. Your team will have an overview of the future challenges for the decommissioning market for operators and contractors and the strategies that need to be implemented to move projects forward. You will be able to formulate an effective and efficient decommissioning supply chain of experienced contractors to remove
offshore installations.
Webinar: Carbon capture through innovative comercial structuring in the canad...Global CCS Institute
North West Redwater Partnership (NWR) is building the world’s first direct to fuels bitumen refinery to combine gasification technology with an integrated carbon capture and storage program. The project was proposed to meet the rising demand for upgrading of increasing bitumen production from the Alberta oil sands and for production of low-carbon fuels with reduced greenhouse gas emissions. The project will be built in three phases, each converting approximately 50,000 barrels per day of bitumen plus diluent to produce a range of refined petroleum products and petrochemical feedstocks with the advantage of having both higher added value and a lower carbon footprint than traditional upgraders or refineries. This presentation will profile the NWR project and discuss the innovative technological approach to incorporate large scale carbon capture in a greenfield Canadian bitumen refinery development.
Greetings,
Attached FYI ( NewBase Special 17 March 2015 ) , from Hawk Energy Services Dubai . Daily energy news covering the MENA area and related worldwide energy news. In todays’ issue you will find news about:-
•Sohar Refinery expansion to be completed by end of 2016
•Saudia: KBR Bags Aramco’s Project Management Services Contract
•Morocco: Circle Oil's KAB-1bis well in the Sebou Permit onshore Morocco disappoints
•African Petroleum announces upgraded prospective resources in Senegal and The Gambia.
• Norway: Total spuds Shango exploration well 25/6-5S in N.Sea
•UK: Keeping North Sea assets afloat doesn’t add up
•China to be major player on energy markets for next 20 years, BP says
•Today Oil above $54, comes off 6-week low
•Oil price back at six-year low as US production seen filling tanks
•OPEC Says Low Oil Prices May Hit US Output By Late 2015
•Saudi Oil Adviser Says Strengthening Demand Will Lift Prices
As this daily news periodical is free for you, we would appreciate your actions to send to all interested parties that you may wish. Also note that if you or your organization wish to include your own article or advert in our circulations, please send it to :-
khdmohd@hotmail.com or khdmohd@hawkenergy.net
Best Regards.
Khaled Al Awadi
Energy Consultant & NewBase Chairman - Senior Chief Editor
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME meme since 1995
Hawk Energy since 2010
Webinar: CCS major project development lessons from the ZeroGen experienceGlobal CCS Institute
The ZeroGen Integrated Gasification Combined Cycle (IGCC) with CCS project, was a first-of-a-kind, commercial-scale CCS project proposal in Australia. Lessons learnt from this project include real-life project management experience integrating the key elements of a large-scale CCS project, from the technical to the commercial to stakeholder management.
This webinar was presented by Professor Andrew Garnett, Director, Centre for Coal Seam Gas, The University of Queensland. The Q&A session also included Martin Oettinger, Deputy Director, Low Emissions Technology for ACALET. Martin's career includes 6 years in a senior technical leadership role with ZeroGen.
Cabot Oil & Gas Marcellus & Eagle Ford Presentation at BOA Merrill Lynch Glob...Marcellus Drilling News
PowerPoint presentation with loads of useful maps and charts that details Cabot's shale drilling program in the northeast Marcellus--in Susquehanna County, PA. Cabot is the lowest price producer MDN is aware of. They estimate in 2014 their breakeven cost to drill--the cost at which they will start turning a profit--is a low, low 80 cents per thousand cubic feet of natural gas ($0.80 Mcf). It is an astonishing number.
Cabot Oil & Gas Slide Presentation at Merrill Lunch Energy ConferenceMarcellus Drilling News
The slide presentation used by Cabot Oil & Gas at the November 2014 Merrill Lynch Energy Conference in Miami, FL. The slides provide an update on Cabot's Marcellus Shale drilling program in Susquehanna County, PA, along with details on their new and growing Eagle Ford drilling program.
Blumakers is an Alberta Oilsands game changer.
We unleash about $240 billion by: eliminating and recycling tailings ponds, recapturing the leased land buried below the tailings ponds, and by improving the bitumen yield by about 4 percent.
That's very big.
Other applications in mining, food processing, municipal waste, water purification, as well as pulp and paper.
New base energy news october 2018 no 1202 by khaled al awadiKhaled Al Awadi
NewBase Energy News 01 October 2018 - Issue No. 1202 Senior Editor Eng. Khaled Al Awadi
FYI to help you make the right decision to bench mark your investment in the MENA world
Separador de hidrocarburos,separador de grasas, bombeo, pluviales, tratamient...Techneau España S.L.
Separador de grasas,separador de hidrocarburos, estación de bombeo, pluviales, tratamiento aguas industriales, aguas de escorrentía, desarenador, decantador
Webinar: Carbon capture through innovative comercial structuring in the canad...Global CCS Institute
North West Redwater Partnership (NWR) is building the world’s first direct to fuels bitumen refinery to combine gasification technology with an integrated carbon capture and storage program. The project was proposed to meet the rising demand for upgrading of increasing bitumen production from the Alberta oil sands and for production of low-carbon fuels with reduced greenhouse gas emissions. The project will be built in three phases, each converting approximately 50,000 barrels per day of bitumen plus diluent to produce a range of refined petroleum products and petrochemical feedstocks with the advantage of having both higher added value and a lower carbon footprint than traditional upgraders or refineries. This presentation will profile the NWR project and discuss the innovative technological approach to incorporate large scale carbon capture in a greenfield Canadian bitumen refinery development.
Greetings,
Attached FYI ( NewBase Special 17 March 2015 ) , from Hawk Energy Services Dubai . Daily energy news covering the MENA area and related worldwide energy news. In todays’ issue you will find news about:-
•Sohar Refinery expansion to be completed by end of 2016
•Saudia: KBR Bags Aramco’s Project Management Services Contract
•Morocco: Circle Oil's KAB-1bis well in the Sebou Permit onshore Morocco disappoints
•African Petroleum announces upgraded prospective resources in Senegal and The Gambia.
• Norway: Total spuds Shango exploration well 25/6-5S in N.Sea
•UK: Keeping North Sea assets afloat doesn’t add up
•China to be major player on energy markets for next 20 years, BP says
•Today Oil above $54, comes off 6-week low
•Oil price back at six-year low as US production seen filling tanks
•OPEC Says Low Oil Prices May Hit US Output By Late 2015
•Saudi Oil Adviser Says Strengthening Demand Will Lift Prices
As this daily news periodical is free for you, we would appreciate your actions to send to all interested parties that you may wish. Also note that if you or your organization wish to include your own article or advert in our circulations, please send it to :-
khdmohd@hotmail.com or khdmohd@hawkenergy.net
Best Regards.
Khaled Al Awadi
Energy Consultant & NewBase Chairman - Senior Chief Editor
MS & BS Mechanical Engineering (HON), USA
Emarat member since 1990
ASME meme since 1995
Hawk Energy since 2010
Webinar: CCS major project development lessons from the ZeroGen experienceGlobal CCS Institute
The ZeroGen Integrated Gasification Combined Cycle (IGCC) with CCS project, was a first-of-a-kind, commercial-scale CCS project proposal in Australia. Lessons learnt from this project include real-life project management experience integrating the key elements of a large-scale CCS project, from the technical to the commercial to stakeholder management.
This webinar was presented by Professor Andrew Garnett, Director, Centre for Coal Seam Gas, The University of Queensland. The Q&A session also included Martin Oettinger, Deputy Director, Low Emissions Technology for ACALET. Martin's career includes 6 years in a senior technical leadership role with ZeroGen.
Cabot Oil & Gas Marcellus & Eagle Ford Presentation at BOA Merrill Lynch Glob...Marcellus Drilling News
PowerPoint presentation with loads of useful maps and charts that details Cabot's shale drilling program in the northeast Marcellus--in Susquehanna County, PA. Cabot is the lowest price producer MDN is aware of. They estimate in 2014 their breakeven cost to drill--the cost at which they will start turning a profit--is a low, low 80 cents per thousand cubic feet of natural gas ($0.80 Mcf). It is an astonishing number.
Cabot Oil & Gas Slide Presentation at Merrill Lunch Energy ConferenceMarcellus Drilling News
The slide presentation used by Cabot Oil & Gas at the November 2014 Merrill Lynch Energy Conference in Miami, FL. The slides provide an update on Cabot's Marcellus Shale drilling program in Susquehanna County, PA, along with details on their new and growing Eagle Ford drilling program.
Blumakers is an Alberta Oilsands game changer.
We unleash about $240 billion by: eliminating and recycling tailings ponds, recapturing the leased land buried below the tailings ponds, and by improving the bitumen yield by about 4 percent.
That's very big.
Other applications in mining, food processing, municipal waste, water purification, as well as pulp and paper.
New base energy news october 2018 no 1202 by khaled al awadiKhaled Al Awadi
NewBase Energy News 01 October 2018 - Issue No. 1202 Senior Editor Eng. Khaled Al Awadi
FYI to help you make the right decision to bench mark your investment in the MENA world
Separador de hidrocarburos,separador de grasas, bombeo, pluviales, tratamient...Techneau España S.L.
Separador de grasas,separador de hidrocarburos, estación de bombeo, pluviales, tratamiento aguas industriales, aguas de escorrentía, desarenador, decantador
Many projects experience failures that result in poor project delivery performance or process capacity/reliability degradations after commissioning
Many studies have shown that 60% to 95% of equipment life cycle costs (TLCC) are a result of decisions made (in CAPEX) prior to handover/start-up and transfer to owners (maintenance or operations) in OPEX
Wouldn’t it make common sense to manage the risk of CAPEX project failures in advance and address equipment life cycle decisions in (CAPEX) rather than after commission handover phase (OPEX)?
Shouldn't owners "invest" in project success "insurance" to help ensure that these multi-billion dollar projects are delivered as they were intended?
ACE is an integrated engineering process for quick, cost effective technical and economic evaluation to assist in upstream development decision making.
ACE is managed by experienced project and discipline engineers, with selected utilisation of specialised software tools.
In Situ Oil Sands SOR Reduction Initiativephilbrown49
Brochure of the In Situ Oil Sands SOR Reduction Initiative 2013.
http://www.oil-sands-sor-reduction-2013.com/
The mission of the In Situ Oil Sands SOR Reduction Initiative 2013 is to uncover the latest steam injection techniques, recovery technologies, water treatment technologies and production techniques through knowledge sharing between industry innovators. The conference will see experienced operators delivering presentations on their successes and failures on trials for novel steam generation and oil recovery practices.
Explore the innovative world of trenchless pipe repair with our comprehensive guide, "The Benefits and Techniques of Trenchless Pipe Repair." This document delves into the modern methods of repairing underground pipes without the need for extensive excavation, highlighting the numerous advantages and the latest techniques used in the industry.
Learn about the cost savings, reduced environmental impact, and minimal disruption associated with trenchless technology. Discover detailed explanations of popular techniques such as pipe bursting, cured-in-place pipe (CIPP) lining, and directional drilling. Understand how these methods can be applied to various types of infrastructure, from residential plumbing to large-scale municipal systems.
Ideal for homeowners, contractors, engineers, and anyone interested in modern plumbing solutions, this guide provides valuable insights into why trenchless pipe repair is becoming the preferred choice for pipe rehabilitation. Stay informed about the latest advancements and best practices in the field.
Forklift Classes Overview by Intella PartsIntella Parts
Discover the different forklift classes and their specific applications. Learn how to choose the right forklift for your needs to ensure safety, efficiency, and compliance in your operations.
For more technical information, visit our website https://intellaparts.com
Student information management system project report ii.pdfKamal Acharya
Our project explains about the student management. This project mainly explains the various actions related to student details. This project shows some ease in adding, editing and deleting the student details. It also provides a less time consuming process for viewing, adding, editing and deleting the marks of the students.
Automobile Management System Project Report.pdfKamal Acharya
The proposed project is developed to manage the automobile in the automobile dealer company. The main module in this project is login, automobile management, customer management, sales, complaints and reports. The first module is the login. The automobile showroom owner should login to the project for usage. The username and password are verified and if it is correct, next form opens. If the username and password are not correct, it shows the error message.
When a customer search for a automobile, if the automobile is available, they will be taken to a page that shows the details of the automobile including automobile name, automobile ID, quantity, price etc. “Automobile Management System” is useful for maintaining automobiles, customers effectively and hence helps for establishing good relation between customer and automobile organization. It contains various customized modules for effectively maintaining automobiles and stock information accurately and safely.
When the automobile is sold to the customer, stock will be reduced automatically. When a new purchase is made, stock will be increased automatically. While selecting automobiles for sale, the proposed software will automatically check for total number of available stock of that particular item, if the total stock of that particular item is less than 5, software will notify the user to purchase the particular item.
Also when the user tries to sale items which are not in stock, the system will prompt the user that the stock is not enough. Customers of this system can search for a automobile; can purchase a automobile easily by selecting fast. On the other hand the stock of automobiles can be maintained perfectly by the automobile shop manager overcoming the drawbacks of existing system.
Cosmetic shop management system project report.pdfKamal Acharya
Buying new cosmetic products is difficult. It can even be scary for those who have sensitive skin and are prone to skin trouble. The information needed to alleviate this problem is on the back of each product, but it's thought to interpret those ingredient lists unless you have a background in chemistry.
Instead of buying and hoping for the best, we can use data science to help us predict which products may be good fits for us. It includes various function programs to do the above mentioned tasks.
Data file handling has been effectively used in the program.
The automated cosmetic shop management system should deal with the automation of general workflow and administration process of the shop. The main processes of the system focus on customer's request where the system is able to search the most appropriate products and deliver it to the customers. It should help the employees to quickly identify the list of cosmetic product that have reached the minimum quantity and also keep a track of expired date for each cosmetic product. It should help the employees to find the rack number in which the product is placed.It is also Faster and more efficient way.
TECHNICAL TRAINING MANUAL GENERAL FAMILIARIZATION COURSEDuvanRamosGarzon1
AIRCRAFT GENERAL
The Single Aisle is the most advanced family aircraft in service today, with fly-by-wire flight controls.
The A318, A319, A320 and A321 are twin-engine subsonic medium range aircraft.
The family offers a choice of engines
Hybrid optimization of pumped hydro system and solar- Engr. Abdul-Azeez.pdffxintegritypublishin
Advancements in technology unveil a myriad of electrical and electronic breakthroughs geared towards efficiently harnessing limited resources to meet human energy demands. The optimization of hybrid solar PV panels and pumped hydro energy supply systems plays a pivotal role in utilizing natural resources effectively. This initiative not only benefits humanity but also fosters environmental sustainability. The study investigated the design optimization of these hybrid systems, focusing on understanding solar radiation patterns, identifying geographical influences on solar radiation, formulating a mathematical model for system optimization, and determining the optimal configuration of PV panels and pumped hydro storage. Through a comparative analysis approach and eight weeks of data collection, the study addressed key research questions related to solar radiation patterns and optimal system design. The findings highlighted regions with heightened solar radiation levels, showcasing substantial potential for power generation and emphasizing the system's efficiency. Optimizing system design significantly boosted power generation, promoted renewable energy utilization, and enhanced energy storage capacity. The study underscored the benefits of optimizing hybrid solar PV panels and pumped hydro energy supply systems for sustainable energy usage. Optimizing the design of solar PV panels and pumped hydro energy supply systems as examined across diverse climatic conditions in a developing country, not only enhances power generation but also improves the integration of renewable energy sources and boosts energy storage capacities, particularly beneficial for less economically prosperous regions. Additionally, the study provides valuable insights for advancing energy research in economically viable areas. Recommendations included conducting site-specific assessments, utilizing advanced modeling tools, implementing regular maintenance protocols, and enhancing communication among system components.
Sachpazis:Terzaghi Bearing Capacity Estimation in simple terms with Calculati...Dr.Costas Sachpazis
Terzaghi's soil bearing capacity theory, developed by Karl Terzaghi, is a fundamental principle in geotechnical engineering used to determine the bearing capacity of shallow foundations. This theory provides a method to calculate the ultimate bearing capacity of soil, which is the maximum load per unit area that the soil can support without undergoing shear failure. The Calculation HTML Code included.
Vaccine management system project report documentation..pdfKamal Acharya
The Division of Vaccine and Immunization is facing increasing difficulty monitoring vaccines and other commodities distribution once they have been distributed from the national stores. With the introduction of new vaccines, more challenges have been anticipated with this additions posing serious threat to the already over strained vaccine supply chain system in Kenya.
COLLEGE BUS MANAGEMENT SYSTEM PROJECT REPORT.pdfKamal Acharya
The College Bus Management system is completely developed by Visual Basic .NET Version. The application is connect with most secured database language MS SQL Server. The application is develop by using best combination of front-end and back-end languages. The application is totally design like flat user interface. This flat user interface is more attractive user interface in 2017. The application is gives more important to the system functionality. The application is to manage the student’s details, driver’s details, bus details, bus route details, bus fees details and more. The application has only one unit for admin. The admin can manage the entire application. The admin can login into the application by using username and password of the admin. The application is develop for big and small colleges. It is more user friendly for non-computer person. Even they can easily learn how to manage the application within hours. The application is more secure by the admin. The system will give an effective output for the VB.Net and SQL Server given as input to the system. The compiled java program given as input to the system, after scanning the program will generate different reports. The application generates the report for users. The admin can view and download the report of the data. The application deliver the excel format reports. Because, excel formatted reports is very easy to understand the income and expense of the college bus. This application is mainly develop for windows operating system users. In 2017, 73% of people enterprises are using windows operating system. So the application will easily install for all the windows operating system users. The application-developed size is very low. The application consumes very low space in disk. Therefore, the user can allocate very minimum local disk space for this application.
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The Importance of Integration of subsurface with surface facilities design
1. The importance of
integration of subsurface
with surface facilities design
John Harley, Regional Director INTECSEA Consulting
David Gorsuch, Technical Director OPC
2. WorleyParsons Structure
Major
Engineering
Project Delivery
Strong FEL technical team
Deepwater SURF
Topsides Facilities
Floating Solutions
FA
CAPEX
Offshore commissioning
Decommissioning (Aberdeen)
Regulations, consents and licences
UK energy market, including market reforms
Energy industry policy
Proven successful relationships with Governments,
including DECC
Transaction Services
North Sea
Fabrication Subsea
& Topside modules
3. WorleyParsons Group and Friends
Major
Engineering
Project Delivery
Strong FEL technical team
Deepwater SURF
Topsides Facilities
Floating Solutions
FA
CAPEX
Offshore commissioning
Decommissioning (Aberdeen)
Regulations, consents and licences
UK energy market, including market reforms
Energy industry policy
Proven successful relationships with Governments,
including DECC
Transaction Services
North Sea
Fabrication Subsea
& Topside modules
4. What is Value?
Value - Defined as “The material or monetary worth of
something”.
Maximum Value - the correct development, chosen first time,
right-sized
Inefficiency – Defined as “the magnitude of the value
that can be lost”
Risks not clearly identified and resolved
5. Value Destruction – an example
200 MMbbl of recoverable oil
No sales gas product
1200 m water depth
Fast track project
(36 months to first oil)
25 year production life
Oil price of $100/bbl
Inflation at 2.5%
200 MMbbl of recoverable oil
No sales gas product
1200 m water depth
Fast track project (36 months to first oil)
25 year production life
Oil price of $100/bbl
Inflation at 2.5%
6. Initial production plateau not achieved
Only 65% of intended production for 3 years
Production Profile
Same total oil recovered,
but slower rate of recovery
7. Pre-Tax NPV
Missed Plateau Value Impact
Original FDP Missed Plateau
NPV, MM$ 4,074 3,621
Delta, MM$ - -453
Delta, % - -11.1%
IRR, % 22% 20%
8. Additional Production and Water Injector wells needed after only 2
years of operation
CAPEX required for drilling, equipment procurement and installation.
(Loss of production during installation/hook-up/commissioning is ignored)
Additional Wells Value Impact
Original FDP Missed Plateau Extra Wells
DRILLEX, MM$ 1,600 1,600 2,400
CAPEX, MM$ 3,220 3,220 4,220
Total, MM$ 4,820 4,820 6,620
Delta, % - 0% +37%
9. Pre-Tax NPV severely eroded
IRRs remain attractive
(IRR by itself is not a reliable indicator of good/bad project)
Value Impact
Original FDP Missed Plateau Extra Wells
NPV, MM$ 4,074 3,621 2,075
Delta, MM$ - -453 -2,000
Delta, % - -11.1% -55.2%
IRR, % 22% 20% 16%
11. Oilfield Production Consultants (OPC)
The OPC-Worley Parsons INTECSEA partnership
Who are OPC? We are a specialist supplier of subsurface engineering,
geosciences and production technology expertise globally for over 25 years.
OPC offices – London, Aberdeen, Stavanger, Houston, Astana, Doha & Basra.
The strategic partnership with INTECSEA /WorleyParsons is designed to allow
proper integration of predictions of the behaviour of the sub-surface with
surface facilities design.
Our aim – a fully integrated Reservoir to Market (R2M) full field development
planning platform
Integrating reservoir understanding (OPC Group)… with surface facilities design (WorleyParsons Group)
12. Oilfield Production Consultants (OPC)
The value of the partnership
The importance of integration of subsurface with surface facilities design
Communication – passing the right information at the right time and using
the right vocabulary.
Management of uncertainty – designing for robustness not optimisation
Front-end loading of facilities design – ensuring all the appropriate
options are considered.
Optimal FDP
13. Oilfield Production Consultants (OPC)
Low Oil Price Scenario (LOPS) planning
Adapting to a new world…
Many plans developed in the context of $100 oil no longer make sense.
Assets still need to be monetised and revenue needs to be generated. In
many cases, this is still possible but requires a fresh look at the
development.
OPC and INTECSEA/WorleyParsons can help companies to carry out
Prospect Re-framing (PReF) by stepping back and taking a completely new,
holistic view of developments against the backdrop of…
$50 oil
Low appetite for risk
14. Thank you
David Gorsuch
Technical Director
Oilfield Production Consultants (OPC) Ltd
1-2 Apollo Studios, Charlton Kin’s Road,
London NW5 2SB
Mob: +44 (0)7585 770455
Tel: +44 (0)20 7428 1111
e-mail: david.gorsuch@opc.co.uk ww.opc.co.uk
John Harley
Regional Director
Consulting
Lansbury Estate
102 Lower Guildford Road,
Surrey, GU21 2EP
Direct: +44 (0) 1483 878 504
Mobile: +44 (0) 7760 669 199
john.harley@worleyparsons.com
www.worleyparsons.com
Editor's Notes
We are going to focus on the Field Development Value Chain
This is where value is created in the monetisation of an asset but without protection can be destroyed through the chain.
First some definitions
We need to define value in our case we may see this as the correct development, chosen first time, right-sized. Prevents excessive costs in over conservative designs, prevents against post-FEED project stop / recycle, developments that are more likely to stay on schedule, developments that are less likely to miss production plateau.
Inefficiency = issues not clearly identified and resolved. Much of that inefficiency comes through poor decision making. Adding data will help resolve issues and remove uncertainties and assumptions, and therefore risk. Fewer unresolved issues leads to greater efficiency and less value destruction.
In the FDP value chain let us look at how value can be trickled away through inefficient decision making and lack of risk awareness using a modified historical deepwater field.
Sanitised and simplistic – but just something to give an appreciation of the magnitude of the value that can be lost at the early stages of a development
This is a “fast track” schedule – real but unusual in that it might set a benchmark for many CEO’s & banks to emulate
Highlights:
The reference a large reservoir circa 3bn bbl in place, which means this wasn’t such an issue – there was so much value in the field with high oil prices and the driver was speed….. Not necessarily so much emphasis on capital efficiency
What about today?
Note the underachievement in production - Somewhere in the order of 2/3 of predicted production was achieved over the first 3 years
In addition, during this period, additional production and water injection wells were drilled & tied-in to increase the production
The same amount of oil is recovered, it is just recovered a bit later – so how does this impact the value?
Missed plateau production for initial years
No impact on CAPEX
A loss in NPV terms of $450 million
Still an attractive IRR at 20%
Not an insignificant amount………… (IRR still looks good though)
The missed production in itself didn’t add anything on to the CAPEX – additional wells certainly do though
An additional x production and y water injection wells (50% more wells) were required in the first couple of years to try to raise production.
Reservoir was clearly (although not exclusively) the issue here – lack of definition prior to production commencing.
Out of interest, typically a 15% cost reduction across all equipment, installation, drilling, commissioning etc. would produce an improvement in NPV of approximately $400 million
$2 BILLION lost from original NPV
But, you have a project with an “attractive” IRR of 16% - this could be spun as a great success
This would still be considered a viable project - but it could have been so much better………..
How do we help clients define, protect and therefore maximise value through the chain?
We make sure that the business drivers are articulated and recorded.
That they are agreed with all stake holders.
That the strategic decisions such as whether this is a stand alone development, partnering, contract strategy and schedule duration look like all meet those drivers.
That they are embedded in the decision framework going forward.
That the tactical level decisions of appraisal drilling, subsea spread, production and facilities solutions are all recorded and auditable back to the strategic business drivers.
We do this by bringing the right people into the value chain from our and client side and enabling them to make informed quality decisions in a formal decision framework.
We help them to look at all possible options for a development and weed it down to all of the credible developments that meet the business drivers.
We are geared specifically to help our clients to analyse those credible developments for technology readiness, CAPEX implications, economic metrics, robustness and importantly we help them to understand the technical and non technical risks that surround the field limits such as commercial and geopolitical risks.
We see it as helping our clients to sleep better at night by helping them to make informed decisions at the appropriate time.
But more than this. Aligning our technical surface strength with OPC allows us to import an understanding of subsurface risk into the client business plan.
David will now take us through that.
Why is integration of subsurface with surface facilities design important?
Bullet 1 - Different things are important to those involved in understanding the subsurface and those responsible for surface facilities design. For a reservoir engineer, a fluid with a condensate gas ratio of 1 bbl/MMscf is essentially the same as a fluid with a CGR of 2 bbl/MMscf. Both are "dry gas". For a surface facilities engineer, they are very different. Engagement of the two teams from the very beginning helps to ensure that information is properly propagated from the subsurface stage of the study to the surface facilities design stage.
Bullet 2 - The levels of uncertainty involved in the subsurface and surface facilities design are very different. In the context of surface facilities design, almost everything is known or knowable. In the subsurface, a great deal of stuff is unknowable. This gives different mindsets in the two communities. A surface facilities design engineer tends to focus on optimisation of the design for the expected inputs. In practice however, a design that is robust in the face of unavoidable uncertainties may be a much better bet. For example, the condensate gas ratio of the produced fluid may not be known with certainty. A design that can cope with anything between 60 bbl/MMscf and 90 bbl/MMscf may be a much better bet than a design that is optimised for 60 bbl/MMscf but will not be able to cope with 90 bbl/MMscf.
Bullet 3 - Front-end loading discussions between the subsurface professionals and the surface facilities design engineers may also allow consideration of a much wider range of possibilities. For example, a gas field may be vulnerable to water production. Two approaches could be adopted. Wells could be drilled to minimise the risk of water production and Surface facilities constructed with minimal water handling capability. Alternatively, simpler and cheaper well could be drilled, increasing the risk of water production, and surface facilities constructed that could handle the produced water. Early engagement of the subsurface and surface facilities professionals will allow the best choice to be made as early as possible.