Brownfields : The Call for Efficiency

Transcription

1 Brownfields : The Call for Efficiency Olivier le Peuch Vice President & General Manager, Schlumberger North Sea DEVEX Conference Aberdeen May 12th 2010

2 UKCS Brownfields The state of decline or rejuvenation time? Source: Energyfiles, Douglas Westwood UK Oil Demand and Supply UK Forecasted Production Output

3 UKCS Brownfields A respectable prize! Reserves Forecast UK Oil & Gas 2010 Reserves Growth by Region UK Oil & Gas 2010 Potential reserves in brownfield estimated at 2.6B boe Estimated oil reserves in brownfields Area Reserves, billion CNS ~0.7 NNS ~0.7 WoS ~1.0 SNS ~0.2

4 UKCS Brownfields The growing challenge... Growth in Unit Operating Costs Projected Cumulative Decommissioning Costs Source: Oil & Gas UK

5 The call for Efficiency Key lever for brownfield asset value creation Technology Operational Adoption Measure Efficiency Innovate Asset value Integrate Creation Reward

6 Measuring Efficiency We can only improve what we measure & share North Sea Floating Rigs Meters/Day On Bottom Drilling Norway Norway UK UK

7 Innovating Efficiency Focused innovation on operational efficiency gains Efficient Re-Entry using TTRD SlimHole Very-High-Dogled Through-Tubing Rotary-Steerable Drilling Developed in cooperation with Statoil & FMC Aimed at reducing costs vs conventional sidetrack Designed to overcome TTRD challenges (including subsea) Reduced & straight OD to avoid damage to DHSV & HXT Need for 3D RSS to target small targets Need for high DLS to steer away quickly Uses both push-the-bit and point-the-bit to achieve very high dogleg 15 deg/30m

8 Integrating Efficiency where rubber hits the road... Integrated monitoring for subsea well test Monitoring flow and completion integrity of a subsea HPHT appraisal well during an extended well test using permanently installed optical fiber temperature measurements 1. Integrated subsea deployment of Electro/ Optic monitoring system for P&T and DTS across the reservoir sand face 2. Novel use of DTS to monitor efficiency of through Tubing conveyed Perforation 600ft of TCP guns firing Temperature signature High temperature high flow zones NHQG Downhole Pressure Gauge for HPHT Conditions Fiber Optic Bulkhead to provide i n- line Pressure Barrier XMP Feedthrough Packer Fiber Optic Cable Across the Perforating Guns Special design Protectors to al ign and protect Cable while Installation and perforation 3. Integrated interpretation of downhole P&T during DST flow test, to model efficiency of extended well test Special design bullnose to Accommodate and protect FO Cable end Flow contribution with DTS

9 Rewarding Efficiency Are we ready for it? Run-Life improvement on ESP deployment What Operators expect? - Improved well profitability - Guarantee of performance - New contractual relationship What Service companies can offer? - Innovative pricing model with malus/ bonus structure - Investment in Run-Life improvement technology & services Monitoring & Surveillance Dismantle Inspection Failure Analysis Logistics / planning / execution Old Contract New Contract Delta No. of ESP wells Sales Price, ESP ($) $500,000 $750,000 $ 250,000 Dayrate charge ($/day) N/A $250 $250 Avg. Runlife (years) Malus charge NA $ -750,000 $ -750,000 Bonus NA $ 250,000 $ 250,000 WO Duration (days) WO Rig Cost per Day ($) $ 250,000 $ 250,000 0 Meat time to repair & W/Os (days) Oil Production/Well/Day $0 Operator Internal Oil Price (@5%) $50 $50 $0 Direct ESP Costs $3,750,000 $4,597,500 -$847,500 Indirect ESP Costs (Rig) $13,125,000 $8,750,000 $4,375,000 Deferred Oil $ 6,281,250 $ 1,062,500 $5,218,750 Total Cost Of ESP Ownership per Year $23,156,250 $14,410,000 $8,746,250 - Reduction of Total cost of ownership

10 The prize for Efficiency : Brownfields Closing remarks Brownfield potential is significant but requires step change in Efficiency Efficiency can should become the industry motto through Systemic & transparent efficiency KPIs Focus on Innovation for efficiency Integration of operations with efficiency as a priority Support of reward mechanism for efficiency