SUBSEA UK LUNCH AND LEARN MARK RICHARDSON PROJECTS GROUP MANAGER

Transcription

1 SUBSEA UK LUNCH AND LEARN TUESDAY 5 TH DECEMBER 2017 MARK RICHARDSON PROJECTS GROUP MANAGER

2 FORWARD LOOKING STATEMENTS Certain statements in this presentation may contain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, expectations, beliefs, plans and objectives regarding production and exploration activities. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions, risks and uncertainties, including, without limitation, risks, uncertainties and other factors discussed in our most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K available on our website, and in our other public filings and press releases. These forward-looking statements are based on Apache Corporation s (Apache) current expectations, estimates and projections about the company, its industry, its management s beliefs and certain assumptions made by management. No assurance can be given that such expectations, estimates or projections will prove to have been correct. Whenever possible, these forward-looking statements are identified by words such as expects, believes, anticipates and similar phrases. Because such statements involve risks and uncertainties, Apache s actual results and performance may differ materially from the results expressed or implied by such forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. Unless legally required, we assume no duty to update these statements as of any future date. However, you should review carefully reports and documents that Apache files periodically with the Securities and Exchange Commission. Cautionary Note to Investors: The United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC's definitions for such terms. Apache uses certain terms in this presentation, such as BO resource, BO Potential and other similar terms that the SEC guidelines strictly prohibit Apache from including in filings with the SEC. BO Resource, BO Potential and other such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in Apache s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, and amendments thereto, available from Apache at or by writing Apache at: 2000 Post Oak Blvd., Suite 100, Houston, Texas (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling SEC-0330 or from the SEC's website at

3 AGENDA Apache North Sea The Projects Group Recent Projects Benchmarking The Portfolio The Plan Contracting with Apache 3

4 WHO ARE APACHE? 4

5 THE APACHE WAY

6 APACHE NORTH SEA REGION Our Vision To be the premier exploration and production company in the North Sea Our Mission Grow value and deliver maximum economic recovery from our assets in an innovative, safe, environmentally responsible and profitable manner for the benefit of our shareholders Our Strategy Deliver top-tier returns by maximizing economic recovery through a balanced approach to our operations focused on continuous improvement in all facets of our business 6

7 HSSE BENCHMARK PERFORMANCE 7

8 PRODUCTION EFFICIENCY Industry Leading Operational Performance 8

9 OPERATING COSTS Industry Leading Operational Performance 9

10 No. of discoveries EXPLORATION SUCCESS OGA significant offshore discoveries listing 10

11 THE PROJECTS GROUP 11

12 PROJECTS GROUP MISSION AND CULTURE Mission The mission of the Projects Group is to provide Apache North Sea with safe world class project delivery in order to maximize the return on investment for the Corporation. Pace, Innovation and Excellence Unity of effort, focus and momentum. Empowering individuals to use their own discretion and initiative within the implementation process and delivery through Mission Command Project Management 12

13 MISSION COMMAND PROJECT MANAGEMENT Mission Command Project Management is a project management philosophy, with centralised intent and decentralised execution, that is particularly suitable for fasttrack, complex and dynamic projects. It demands an approach that promotes freedom of action and initiative within the bounds of competence. Mission Command Project Management focuses on project benefits, as it stresses the importance of understanding what effect is to be achieved, rather than specifying the ways by which it should be achieved. 13

14 MISSION COMMAND PRINCIPLES The principles of Mission Command Project Management: Leadership Sense of urgency Competence and capability Devolved decision making Responsibility, accountability, authority and autonomy Collaboration Respect, integrity and trust 14

15 PROJECT MANAGEMENT PROCESSES Check Point Process identity PROJECTS DELIVERY MANUAL process and control CP1 CP2 CP3 CP4 CP5 CP6 quick reference stage summaries How to General philosophy and approach Broader Project Management Topics Specific methods and tools 15

16 FOCUS AND EFFECTIVENESS Lean Teams High Reward/Risk Cost/Time/ Resource Low Low Effort High 16

17 SUPPLY CHAIN MANAGEMENT Contractor Collaboration Traditional Selection Old Hierarchical Structures Competence Cost Compliance Collaborative Selection Network-Centric Eco-System Compliance Competence Cost Culture 17

18 FUNCTIONAL SPECIFICATION 18 -

19 CONTRACTING METHODOLOGY Target Cost Co-creating Value Creation Lump Sum Confrontational Cost Plus Compliant Co-operative Collaborative Working Trust Key Point Indicators (KPI s) Zero Penalties Absolute Significant number of KPIs Relative Simplistic Zero Strategic alignment 19 -

20 COMPLICATED TO COMPLEX 20

21 STOCKING FILLERS 21

22 RECENT PROJECTS 22

23 FNT OIL TIE-BACK TO BERYL BRAVO 4.5km Electro- Hydraulic Umbilical Rock Dumped and Matted 3.8km 8 Flexible Pipeline Rock Dumped and Matted Control System HDU, TUTU, MCS and Delta V ESDV, Hook-up to Subsea Manifold 4.3km 8 Flexible Pipeline Rock Dumped and Matted FNT additional Slot Manifold, Subsea Controls and Jumpers Single Development Well Tie-in 23

24 AVIAT FUEL GAS TIE-BACK TO FA Gas Heater & Compressor KO Drums Control System HDU, TUTU, MCS and Delta V Risers and Umbilical Under-deck Structures and ESDV Meg Storage, Injection, Pumps and Compressors Metering and Compression, Slugcatcher 6 Flexible Riser, Bellmouth to Existing Risers 23km 8 Rigid Pipeline Trenched, Buried and Matted Subsea Isolation Valves Manifold and Controls Aviat 4 Slot Manifold, Subsea Controls and Jumpers 24km Electro- Hydraulic Umbilical Trenched, Buried and Matted Single Development Well Tie-in 24

25 BACCHUS OIL TIE-BACK TO FORTIES ALPHA Control System HDU, TUTU, MCS and Delta V Bacchus Riser Caisson Under-deck Structures and ESDV Metering and Tieinto Production, Water Injection and Gas Lift Subsea Isolation Valves Manifold and Controls 4 Slot Manifold, Subsea Controls and Jumpers 6.7km Bundle 2 x 6 Production 2 x 4 WI/Heating 4 Gas Lift 3 Scale Squeeze Hydraulics Electrics Chemical 25

26 FORTIES ALPHA SATELLITE PLATFORM 18 Gas Lifted Wells Gas Dehydration & Compression Local Equipment Room Lifeboat Crane Separation Water Polishing & Sand Removal Export Pumps Power Generation, Switchboards & Transformers Total weight 18,460 tonnes Topsides 44m x 40m x 17m Bridge 92m x 6m x 5m Jacket height 129m Piles 12 x 2.4m dia. x 100m

27 Separator upgrades CALLATER TIE-BACK TO BA Subsea controls system Process and export via BA system 13km umbilical Electrical power & signal Chemicals and hydraulics via Skene 6 slot manifold (Expansion & future tie-ins) 3.85 km Bundle 14 & 8 pipelines Tie-in Towhead (Future tie-ins) Piping, E&I, controls, F&G modifications Topsides structures and new flowlines Production via BA bridge pipework Production through existing caisson Production via existing Skene bundle Tie-in to Skene South Bundle Manifold 27

28 CALLATER TOPSIDES 80,000 Man Hours of Offshore Construction Choke Access Platform Structural Access and Support Platforms 14 and 8 Flowlines 147 Valves Manifold Replacement DeltaV Control Fire & Gas Modifications Flowline and Separator Modifications Hydraulic Power Unit and Master Control System Produced Water Modifications Diverter Valve Platform Metering Platform 14 and 8 Flowlines Hydraulic Power Unit 28

29 CALLATER SUBSEA Facilities Installation Bundle Towhead Manifolds 3.85km Bundle Subsea Controls 13km Umbilical Protection Tie-ins 29

30 KEY RESULTS Project Performance Zero LTI s in 800,000 project man hours, 80,000 man hours topsides 27% below budget Aggressive time line with a winter subsea installation 23 months from discovery to 1 st oil First oil achieved ahead of plan Right first time delivery Industry recognised and benchmarked as best in class performance Winner of the OGA MER Award

31 BENCHMARKING 31

32 BENCHMARKING Cost per Maximum Number of Well Connections 32

33 BENCHMARKING Umbilical Cost per Cumulative Length 33

34 BENCHMARKING Engineering to Start-up vs Hydrocarbon Throughput 34

35 BENCHMARKING Platform Cost per Tonne 35

36 BENCHMARKING Project Management Cost as a Percentage of Capex 36

37 THE PORTFOLIO 37

38 THE APACHE PORTFOLIO Beryl Area NNS Forties Area CNS 38

39 NNS - BERYL FIELD 39

40 CNS - FORTIES FIELD 40

41 THE PLAN 41

42 INVESTMENT STRATEGY Large infrastructure investment have resulted in top quartile production efficiency and opex/boe Focusing investments on projects that utilize existing infrastructure to hold production flat, maintain opex/boe, extend asset life, and delay decommissioning Projects competing for funding across our international portfolio Returns focused investments in Forties and Beryl Areas with: Lower risk platform drilling and water injection optimisation to maintain reservoir pressure Step out subsea exploration tie-back to operated infrastructure Future activity consists of: Operating 2 platform rigs and 1 semi-sub rig Potential to add more rigs as oil price dependant cash flow allows Targeting 1 subsea tie-back per year Investing in safety and production critical assets and infrastructure projects 42

43 GARTEN FACILITIES DEVELOPMENT Transported via existing BA bridge pipework Gas Lift via existing Riser A8 Production via existing Riser A3 or A6 Production via existing Bundle (PL1697 or PL1698) Gas lift via existing Bundle New topsides flowline to Train A Production through spare riser E5 New 6km Production Line back to RAT All other services remain from Buckland System Hydraulic, chemicals, power via existing Bundle New Garten well adjacent to S33 HIPPS Intermediate towhead tie-in location 43

44 CORONA FACILITIES DEVELOPMENT Transported via existing BA bridge pipework Process and export via BA system Accesses RAT via Production riser E4 Produced Water treatment for overboard Umbilical entry into Riser A7 Aquifer lift & injection pumps for HSP water supply 10 PiP production, 8 HSP pipelines Pipelines & Umbilical alongside Buckland, rock dump protection 13km umbilical Hydraulics, Chemical, Power & Comm s 2 Development Wells 44

45 SEAGULL FACILITIES DEVELOPMENT Simplified Facilities Requirement Re-use of existing equipment Greenfield works Supportive host Subsea 9km tie-back 4 slot manifold 10 fully rated pipeline Umbilical 6 wash water line Topsides Production and utility tie-ins Subsea controls interface Chemical injection mods 45

46 STORR FACILITIES CONCEPT BERYL ALPHA RAT 10 km 15.2km 20km BUCKLAND 2 km CALLATER 4km SKENE 9 km 7km STORR

47 NEAR FIELD EXPLORATION Titan Beryl Field Val d Isere Forties Field 47

48 TITAN FACILITIES CONCEPT Tie back option Small FPSO/NUI Platform option 4 Slot production manifold. 11 km 8 insulated production pipeline. 11 km Umbilical 11 km 6 Water Injection pipeline Power supply (ESP) or Gas lift pipeline 4 Slot production manifold. 1 km Tie-back Umbilical/Water Injection/Gas Lift 20-30,000 BPD oil capacity ,000 Barrels storage ESP or Gas lift Driven Wells Overboard water 48

49 Control/ Services Umbilical Gas Lift Line Production Line VAL D ISERE FACILITIES CONCEPT System Bundle System Highly Insulated PiP Flowline Production Line Insulation U- Value ~ 1 W/m 2 K U- Value ~ 1 W/m 2 K Val d Isere Subsea Manifold Flowlines 10 Prod 6 GL 2 x 4 Heating Lines 2 Methanol 3 Scale Squeeze 10 Prod 6 GL Vail to Val d Isere (5.7 km) Umbilical HP / LP Hydraulic Functions Power & Signals Chemical Injection (WI / AI / SI) HP / LP Hydraulic Functions Power & Signals Chemical Injection (WI / AI / SI) Methanol & Scale Squeeze Cores Vail PLET (Well Tie-in) Structures Towhead Structure (4x) 4 Slot Manifold (VDI) PLET (V) SSIV SSIV to Vail (5.4 km) Topsides Production & GL System Tie-in New HPU / MCS / Chemical Injection / TUTU Water New Riser Caisson (Prod / GL / Umbilical / HM) Production & GL System Tie-in New HPU / MCS / Chemical Injection / TUTU Water New Riser (Prod / GL) DGL HPU Chemical Inj MCS Header Routing Valve Test Manifold VVDI SSIV Manifold TUTU Riser ESDV HP Flare FC Riser (New or Re- Use) MPFM ESDV ESDV / HIPPS Routing Valve Production Manifold FC to SSIV (500m) Riser ESDV PCV ESDV / HIPPS 49

50 SUBSEA PROJECTS 2018 Forties ROV Inspection Platform based inspection Vessel based inspection Forties ICCP retro-fit clamps Beryls ROV Inspection Platform based inspection Vessel based inspection Infill Wells Garten, BKA Nevis South N11 P+A preparatory Leak detection systems and processes CP anode retro-fits BA condeep & Flare Tower Subsea Trees BA Seawater Ballast temporary plug 50

51 CONTRACTING WITH APACHE 51

52 SUPPLY CHAIN CONTRACTING Apache expects that Contractors and Suppliers will: Subscribe to and actively pursue the highest standard of Health, Safety and Environmental performance Uphold the highest standards of business ethics in its dealings with Apache Demonstrate honesty, integrity and a sense of urgency Work with Apache to develop a mutually beneficial relationship, incorporating innovative commercial models where possible Submit complete and valid invoices in a timely manner, complete with adequate back up documents Comply with the Supply Chain Code of Practice requirements for Suppliers, in particular the need to maintain up to date records in FPAL. Forward Work Plans Visit the FPAL website to review this online Benefits of the Work Plans: Help provide an indication of future activity by Purchasers. Act as a planning aid to help facilitate potential business opportunities. Support the Supply Chain Code of Practice (SCCoP) 52

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