Subsea Technology. New Technology from a Small Operator SUBTECH 15 th December London

Transcription

1 Subsea Technology New Technology from a Small Operator SUBTECH 15 th December London

2 The Small Operator-Does Size Matter? Large Operator vs Small Operator Business Drivers Technology Access to infrastructure Contracting philosophy

3 Operators: Large Medium Small

4 Small Operator Profile - OILEXCO OILEXCO operates a single string drilling operation using rig access as leverage for farm ins. We were most active independent appraisal driller in UK North sea for 2004/2005. Has capability to engineer subsea tiebacks to existing infrastructure Will be first users of proven technology in subsurface, well completion and subsea facilities Minimal manpower

5 Key Small Operator Drivers The small operator Will try to use existing technology in innovative ways Will not try to reinvent contractors products Will work closely with the contractor as a partner rather than a subordinate Has to use all the clubs in the bag, as many of the fields developed by small operators would not pass the large operators hurdle rate Seeks to be 100% equity holder to avoid partner drag

6 Technology

7 Brenda Tieback

8 Brenda MultiManifold by Framo Multiphase Pump Multiphase Meter Subsea Control Modules Spider Manifold MultiField Applicable MultiWell MultiPhase Pumping MultiPhase Metering MultiFunction Control

9 New Technology Unlikely to be any difference in the level of technical specification of a subsea project. If anything, the smaller operator will build in a level of redundancy to protect its cash flow. In the case of Brenda, gas lift is also included in the BOD. Will not be a first time user of a new product but aims to be a close second

10 Third party Business and Allocation

11 Subsea Allocation Most marginal fields will be tied back to existing infrastructure with multiple owners and multiple fields. The different tax positions require accurate allocation. If the third party entrant can measure and allocate his own fluids he will protect his own volumes and will also be in a better position to manage his reservoir. The older JOA s allow up to 10% accuracy in the reallocation of well fluids. It soon adds ups. Subsea metering becomes a necessity

12 Allocation Brenda Metering through Balmoral Balmoral FPV Balmoral / Beauly / Glamis and Stirling allocation by well tests Brenda and Nicol Combined by topsides MPFM Nicol /Brenda allocation by subsea MPFM Brenda owners: Oilexco % Nicol Owners: Oilexco 70.00% Conocophillips 18.00% Eni 12.00% Balmoral Glamis Beauly Stirling 1 st stage separator 2 nd stage separator Export Meter Balmoral: Oilexco 8.00% Test separator Nicol Brenda

13 Brenda MultiManifold by Framo Multiphase Pump Multiphase Meter Subsea Control Modules Spider Manifold MultiField Applicable MultiWell MultiPhase Pumping MultiPhase Metering MultiFunction Control

14 Spider Manifold Operation

15 Contracting and commercial

16 Contracting by the Small Operator Access to equipment and services? The contractors will sell to anyone who has the proven ability to pay. The contractor prefers more of their own management/technical input to the programme. Cost? Market is robust, any large Operator contracting advantage is offset by higher Operator G&A. Will a smaller company try to refurbish and reuse existing equipment? Unlikely, they will try to protect their cash flow. The cost of new equipment is low compared to the cost of failure The small operator prefers an EPIC approach The smaller company will not take high risk, but will use proven technology before the majority of the operators.

17 Commercial The smaller Operator tends to have a higher cost of capital but the difference is small. The smaller Operator is more likely to be asked by the Dti for security with regards to abandonment. The larger operator provides a parent company guarantee. The oil price forecast used by the smaller operator is more aggressive. The larger operator tends to own the host Production facility and maximises his tariff position depending on the competition.

18 The Future Dti fallow field process will release more small fields close to existing infrastructure and the oil price will drive them to subsea development. (Gordon Brown notwithstanding) The challenge is access to resources both people and equipment in a busy market The difference between the large and small companies distils to their attitude to risk and how much reward they need.