Cost effective shallow water field developments Means to improve project economics

Transcription

1 Cost effective shallow water field developments Means to improve project economics INTSOK Seminar Paris, 28th May 2015 Ingvar Grøtberg, Manager Field Development 6/3/2015 Footer

2 Industry Challenge Subsea as an example M$/Well Oil price $30 $120,0 Topside Facility (FPSO/ Platform) Other 5% Installation 14% Subsea $25 $20 $100,0 $80,0 30% 9-15% $15 $60,0 $10 $40,0 12% Riser & Flowlines 30-50% Drilling & Completion $5 $ $20,0 $0,0 Cost Distribution Offshore Development (Typical) Normalized Cost Development - Per Well Basis for Subsea HW 6/3/2015 Kostnadsutfordring på norsk sokkel 2

3 The effect of Early Involvement Starting point End solution Smarter field architecture Reduce hardware scope Simplify installation Faster and simpler installation use vessels instead of rig Small pre-investment to facilitate future brownfield modifications Design equipment for easier and vessel based well interventions to boost recovery rates and reduce costs 6/3/2015 Kostnadsutfordring på norsk sokkel 3

4 Production profile Operation and Maintenance cost Concept Well construction Process Number of wells Trajectories Smart wells Multilaterals Topside versus subsea Sand removal Export quality FMC scope Time NPV ( i) N Oil price( i) Oil rate( i) CAPEX i i 1 (1 r) ( i) OPEX ( i) TAX ( i) Log data Core data Fluid data Geological model (base case, other) Testing Sampling Lift curves Numerical reservoir model to predict performance (e.g. Eclipse, VIP) Timing (delays?) Water influx? Customer Scope Time

5 Subsea Tree Unit Price Standardization steps Increase capacity Copy design, reduce engineering Efficiency and Cost Repeat order and part number copies Increased cost focus, reduced oil price Standardization on all levels, fundamental approach 6/3/2015 5

6 My way or the FMC way? Item IOC (2013) IOC (2014) Best Practice IOC Witness Requests Witness Notification Period Inspection Release Certificate Pre-Production Meetings FAT/EFAT Procedure Approval Volumetric NDE Procedures Qualification Test Reports (Forgings) 48 Hr. / 120 Hr. 48 Hr. / 120 Hr. 24 Hr Approval Approval - Approval Approval - Welding Procedures Approval Approval - Coating Procedures Approval Approval - Lift / Load Procedures Approval Approval - MPQ MPQPs Standard Component NCRs Major NCR (Customer Specific Items) Major NCS Require Approval at Set Out Similar to Best Practice Similar to Best Practice 6/3/ Available for Review at Set Out

7 Technological Innovation Simplification Surface Xmas Tree Subsea Xmas Tree 6/3/2015 Kostnadsutfordring på norsk sokkel 7

8 Functional specifications for SW Xmas Tree Based on latest Subsea technology Concentric dual bore 5 1/18 X 2 1/16 10K Option to drill and complete on 13 5/8 or 18 ¾ Wellhead Allows for 7 downhole functions (5 hydraulic, 2 electric) Standard Trim Levels: FF, HH Optional choke and flowbase connector Optimized for virtual flow meter Configurable for Diver, or ROV installation Standard electrohydraulic control system (Option for Direct Hydraulic) 6/3/2015 8

9 References

10 Specifications and execution The SW Xmas Tree is designed and built according to international standards (API 17D) It origins from the latest technology subsea Tree The execution model is lean and efficient Requires minimum client engagement from CA to delivery of equipment and documentation Applicable Standards API 6A (ISO 10423) ISO (API RP 17A) ISO (API 17D) ISO ISO (API 17H) ISO (NACE MR-0175) AWS D1.1 DNV-RP-B401 AS 4059 NAS 1638) Description Specification for Wellhead and Christmas Tree Equipment Design and Operation of Subsea Production Systems General Requirements and Recomendations Design and Operation of Subsea Production Systems Part 4 Subsea Wellhead and Tree Equipment Design and Operation of Subsea Production Systems Part 6: Subsea Production Control Systems Design and Operation of Subsea Production Systems Part 8: Remotely Operated Vehicle (ROV) Interfaces on Subsea Production Systems Materials for Use in H2S-Containing Environments in Oil and Gas Production Structural Steel Welding Code Cathodic Protection Cleanliness Requirements for Parts Used in Hydraulic Systems 6/3/

11 Delivery time in months Price relativity in % Lean execution Customer functional requirements only Opens for standardization LLI raw material in stock (independent of customers) Critical comonents in stock (independent of customers) Based on industrial standards; API, ISO, NORSOK, SI913 and FMC Technologies experiences Reduction in documentation Reduction in Witness- & Hold points Installation tools on rental basis % lead time reduction Current Best Industry Practice Supplier based Design Accepted 120% 100% 80% 60% 40% 20% 0% 20-40% price reduction Current Best Industry Practice Supplier based Design Accepted 6/3/

12 Supplier solution Customer specs. Customer specs. Supplier sol. Customer specs. Lean execution Standard solution Real case working differently with one customer Project based on customer specifications Project based on FMC specifications Project hours -20% Documentation -95% Delivery time -50% 6/3/

13 Summary Improved cost and schedule, hence improve project economics can be achieved on a number of existing opportunities by: Engage early to explore and optimize solutions Standardization Innovative technology to provide simplified solutions Functional specifications from customer only - opens for: Simplified technology as Shallow water Xmas tree lean execution maximimizing standardization effects 6/3/

14 Thank you for your attention! 6/3/