Technical Challenges in Offshore Development New Technology Required for Future Offshore Development

Transcription

1 JOGMEC Techno Forum 2013 Technical Challenges in Offshore Development New Technology Required for Future Offshore Development Jim Raney Director of Engineering Global Engineering & Technology Anadarko Petroleum Corporation

2 Cautionary Language Regarding Forward-Looking Statements and Other Matters This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of Anadarko believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove to have been correct. A number of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this news release, including Anadarko s ability to meet financial and operating guidance; to achieve its production targets, successfully manage its capital expenditures, including entering into carried-interest agreements, and complete, test and procure the wells and prospects identified in this presentation; to successfully plan, secure necessary government approvals, finance, build and operate the necessary infrastructure and LNG park; and to achieve its production and budget expectations on its mega projects. See Risk Factors in the company s 2012 Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and other public filings and press releases. Anadarko undertakes no obligation to publicly update or revise any forward-looking statements. Please also see our website at under Investor Relations for reconciliations of the differences between any non-gaap measure used in this presentation and the most directly comparable GAAP financial measures. Cautionary Note to U.S. 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. Anadarko uses certain terms in this news release, such as resources, net resources, net discovered resources, net risked resources, resource opportunity, estimated ultimate recovery, resource potential, resource estimate, incremental recoverable resources, recoverable natural gas, net resource estimate, recoverable resource, net resource estimate, discovered resources, and similar terms that the SEC s guidelines strictly prohibit Anadarko from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in Anadarko s Form 10-K for the year ended Dec. 31, 2012, File No , available from Anadarko at or by writing Anadarko at: Anadarko Petroleum Corporation, 1201 Lake Robbins Drive, The Woodlands, Texas 77380, Attn: Investor Relations. This form may also be obtained by contacting the SEC at SEC

3 A Portfolio with Balance, Scale and Unparalleled Optionality Predictable, Repeatable U.S. Onshore Higher-Margin Liquids Driving Efficiencies Leveraging Midstream Advancing Next Generation Mega Projects High-Margin Oil Industry-Leading Project Management World-Class Exploration High-Impact Targets First-Mover Advantage Track Record of Success Alaska U.S. Onshore Deepwater GOM North Africa China Net Risked Resources (BBOE) 0-1 South America West Africa East Africa Emerging Opportunities South Africa New Zealand 3

4 Anadarko Delivered Outstanding Results in 2012 Predictable, Repeatable Growth Efficiency Improvements Industry-Leading Exploration High-Graded Portfolio Financial Discipline 268 MMBOE Sales Volumes: 8% YOY Growth 434 MMBOE Reserve Adds for $14.65/BOE* 28% YOY U.S. Onshore Drilling-Efficiency Improvement 9% YOY Reduction in LOE/BOE 67% Deepwater Exploration/Appraisal Success Rate 2 of the World s Largest Discoveries $1+ Billion of Monetized Assets $6.8+ Billion Market Value Established from IPO of WGP $2.5 Billion - Fully Repaid Revolving Credit Facility $0.9 Billion Adjusted Free Cash Flow *Before the Effects of Price Revisions 4

5 Sales Volumes (MMBOE) Percent Liquids Anadarko is Positioned to Deliver in 2013 Sales Volumes (MMBOE)* Capital (Billions)** $7.2 - $ Reserve Replacement 150+% F&D Demonstrated Liquids Growth 10% Liquids CAGR % 50% 40% U.S. ONSHORE 60% ~$15/BOE MIDSTREAM/OTHER 10% 2013 Capital Allocation by Area GULF OF MEXICO 15% EXPL INTERNATIONAL 15% E 2014E 30% *Includes Ethane Rejection Assumptions and Anticipated Weather/Facility Downtime **Excludes WES Capital Investments and Assumes Carried-Interest Agreements for Heidelberg and Mozambique 5

6 Gulf of Mexico Anadarko s Acreage 6

7 Gulf of Mexico Recent Developments 7

8 Deepwater - Developments Ghana: TEN Area Mozambique: Orca 1 Discovery Kenya: Kubwa 8

9 Technical Challenges in Deepwater Offshore Field Development Challenges Water Depth and the effects of Water Depth on Subsea Equipment Lower Tertiary extreme water extreme target depths seismically dense salt canopy low-porosity low-permeability reservoirs high-pressure/high-temperature (HP/HT) downhole conditions asphaltene deposition Miocene Performance Deterioration (fines migration, compaction,?) 9

10 Technical Challenges in Deepwater Offshore Processing Offshore Production to Marine Vessels Offshore Processing Floating LNG, Floating GTL Subsea (separation, pumping, compression) Equipment to Meet Regulatory Environment New Regulatory Agency Rules Offshore (Equipment (design & testing) & Personnel Qualification) BSEE Worst Case Discharge Requirement Casing Design / Cap / Cap-and-Flow Effect of water depth on existing 15K Equipment EOR using Marine Vessels Gas generation/separation or pipeline transportation H 2 O injection (quality, compatibility, delivery platform/ship) 10

11 Deepwater Offshore Production Technology Needs Conditional Assessment of Facilities - Life Extension (Spars) Chain/Cable Inspections Fatigue Analysis (chain/cable, risers) 100 year storm criteria changed (Ike, Katrina) Comparative Risk Assessment - Well Operation Risk Assessment (WORA) JIP Multi-Discipline Process to identify and mitigate key risk factors in development operations in order to reduce failures Risk Factors: Well Construction, Reservoir (Compaction, Rock, Fluids), Infrastructure, Production, Intervention 11

12 Deepwater Offshore Production Technology Needs Production Optimization of Wells with Significantly Extend Subsea Tieback Distance/Surface Host Elimination Gas Lift base of the platform risers) Artificial Lift with ESP (in a can at base of the riser) Subsea Multiphase Flow Measurement, Separation and Pumping Subsea Remote Power Generation Subsea Gas Compression Technology Subsea Flow Stream Boosting Technology Risk Assessment/Mitigation Monitoring Instrumentation for Subsea Operations Wireless transmission of data thru Wellhead to marine sensors (maintaining well integrity) Annual Pressure Build-up (APB) Solutions 12

13 Deepwater Offshore Development Technology Needs Deepwater Drilling Technology Cost reductions to drill ultra deep wells (30,000 +) Extended reach drilling for ultra deep wells Deepwater Completions Technology Cost reductions to complete ultra deep wells Offshore Stimulation Technology Frac Pac for life of well Sand Control for Greater Drawdown Frac Pac HP directional wells High Pressure/High Temperature Completions Technology Equipment to Meet the Regulatory Environment New Equipment Standards API Standards (API 53, 96, 65-2, 17 TR8, PER15K, 17 TR4, 16A, ASME Code) Regulatory Agency Rules and Standards HIPPS (High Integrity Pressure Protection System) 13

14 Deepwater Offshore Development Technology Needs Subsea 20K psi production system Trees, controls, wellhead, subsea production system components Subsea 20K psi risers (large diameter, high strength with fatigue performance, weldable or composite) Monitoring Instrumentation for Subsea Operations Fiber Optic Communication from Tree to Platform Capable of transmitting (band width) large amount of data Real-time Reservoir Surveillance Requires Improved Data Gathering, Measurement, and Well Testing Frequency Distributed Controls Systems Subsea Power System Chemical Distribution Systems Subsea (self-contained) 14

15 Deepwater Offshore Development Technology Needs Deepwater/Subsea Intervention Floating Riser Design (MEPS) Coil Tubing & Wireline EOR for Deepwater Offshore Reservoir simulation tools N 2 generation or pipeline transport H 2 O injection(water quality, compatibility, delivery platform or ship) Understanding asphaltene deposition Facility design consideration Geophysical Technology Advanced processing and reprocessing Amplitude/AVO modeling Velocity field modeling 15

16 Anadarko s Renewable Energy Concept - Ocean Current Power Generation Transforming Renewable Energy into Power GOM Field Trial Test Jan Gulf Stream: 4 x 40ft propellers in 4.2 Knots (7.2 ft/sec) generates 1,013 Kw Island Power: 4 x 45ft propellers in 3.3 Knots (5.6 ft/sec) generates 603 Kw 4 x 50ft propellers in 3.3 Knots (5.6 ft/sec) generates 746 Kw OSG 1/5 Scale Field Tow Test Unit (available 100% of the time)* 16

17 Anadarko s MEPS RPSEA Project No.: Task 6.3: Final Report on Technology Readiness Workshop 17

18 JOGMEC Techno Forum 2013 Questions? 18