Shell Exploration & Production. New Shell Developments in the Gulf of Mexico

Transcription

1 New Shell Developments in the Gulf of Mexico

2 Shell Exploration and Production- Global Operating Model Shell Exploration & Production EP Russia EP Europe EP Americas Growth Areas EP Africa EP Middle East & Caspian Sea EP Asia Pacific 2 EPX EPB EPS EPT EPH EPF

3 EP Priorities Today SAFETY TAKES PRIORITY Our Six EP Business Priorities: 1. Production 2. Project Delivery 3. Competitive Cost Structure and Effectiveness 4. Operational Excellence 5. Reserves Replacement 6. Grow resource base People Make it Happen 3

4 EP Americas 2006 Performance Shell Exploration & Production 1. Global Production: 3.5 mln boe/d Rest of EP 2. EP Earnings $15.2 bln Rest of EP EP Americas 23% EP Americas 31% 3. EP Americas Production: 0.8 mln boe/d USA 67% Canada Oil sands Rest of EPW 14% 10% 9% 4

5 Exploration & Production Shell EP In The Americas Alaska Pinedale (Wyoming) Shell Canada Aera (California) Venezuela South Texas Gulf of Mexico Asset managed by RPD Operating Interest managed by RPD Asset managed outside of RPD Brazil Argentina 5

6 US Shell Onshore Exploration & Production Lower 48 Columbia North American Gas - USA River Basin Integrated Gas Production Exploration Green River Basin Pinedale South Texas 6

7 Pinedale: Sustainable Development in Action Integrated Gas 7

8 Brazil Shell Exploration & Production Vitoria FPSO Fluminense Existing/New Material Oil BC-10 Sau Paulo Merluza Rio de Janeiro BS-4 Bijupira-Salema Shell Operated Shell Partnership BC-10 Development 8 Producing Operations: Merluza Bijupira-Salema Development BC-10 FID d

9 Alaska Shell Exploration & Production Existing/New Material Oil Chukchi Sea Bristol Bay 33 Leases Prudhoe Bay Beaufort Sea 103 Leases TAPS Frontier Discoverer 2007 Historical Drilling Activities Cook Inlet Gulf of Alaska Beaufort Sea Bering Sea Chukchi Sea Beaufort Sea 9

10 Unconventional Oil Positions Shell Exploration & Production Peace River Current 10 kboe/d AOSP Current: 170 kboe/d Colorado Oil Shale Key: Production Technology Development Aera 10 Current 100 kboe/d Piloting steam recovery of light oil *Total gross daily capacity

11 Gulf of Mexico Shell Exploration & Production Deepwater Platforms Non-Operated Shelf Platforms Developments Yellowhammer Fairway NPI-975 BZ A19 WC-565 Enchilada Auger Perdido Cougar Boxer Bullwinkle WD-143 Holstein Cognac MP-252 Ram Powell Marlin Na Kika Deimos Mars Ursa Brutus 11

12 12 Shell Exploration & Production

13 Importance of GOM Deepwater More than half GOM active leases are in deepwater 12 new deepwater discoveries in 2006 In 2006, 70% of oil and 40% of gas produced in the GOM came from deepwater leases 32% increase in number of tracts leased in 1500 to 4999 foot water depth 29% increase in tracts leased in 5000 to 7499 foot water depth MMS projects oil production in GOM to exceed 1.7 million bopd, could be as much as 2.1 in the next 10 years; gas production to level at 8 billion cfpd, could reach 9 13 *Minerals Management Data

14 New Challenges in Deepwater Deepwater fields getting more complex: no single technology will unlock Ultra-deep water and remote locations Harsh environments Small and/or sub-economic accumulations Viscous oil, low energy drive and lift High cost drilling & infrastructure Lack of local logistics / service industry 14

15 Deepwater GOM - Perdido Shell Exploration & Production Material Opportunities, Increasingly Challenging Environment Paleogene Play Opener Perdido Paleogene Play 3-6 bln boe 15

16 Perdido Spar Development Challenges: Ultradeep water ~ 7816 ft (2382m) Remote location Extreme weather Low pressure, low temp. reservoirs, requiring artificial lift + many wells Solution: Low Cost Light weight Spar, Low Motion Single Lift Topsides Small Well Bay 6 slot Wet Tree Direct Vertical Access & Surface BOPs Full platform access to 19 wells from a single surface slot Subsea Separation & Boosting System Enables development Enhances Recovery Overcomes flow assurance problems Riser Base Subsea Separator/Boostin g System (SBS) DVA or Local Silver Tip Tobago 16 Great White

17 Subsea Boosting System Flow Control Assembly Annular Cyclonic Degasser technique embodied within Inlet Assembly Multiphase flow is pre-conditioned through inlet piping prior to cyclonic separation Package design similar to subsea tree utilizing forged bodies and hydraulic connectors and valves 8,000 Top Tensioned Riser TTR Connector Gas Electrical Submersible Pump 48/42/36 Conductors & Caisson From Manifold Flow Base Annular Cyclonic Degasser Area Liquid 17

18 Significance of the Perdido Development Project for Shell First spar development Doubles our water depth capability for a platform drilling system Expands number of platform wells Enables development of difficult reservoirs Development of new Gulf of Mexico reservoir play 18

19 Ursa Princess Waterflood Shell s Largest Brownfield Project in the GoM Ursa Princess Water Flood Scope Drill/ Complete 4 new Subsea Injector wells Install Topsides facilities to lift, clean, condition and deliver water to injectors (130 kbpd avg.) Build Subsea facilities to deliver water (flowlines/ umbilicals/ trees) 8 DVA Wells tbg. change-outs/ recompletions, and set-up for gas lift 19

20 Ursa Princess Yellow Pressures Original Pressure May06 A4st press Saturation Pressure Jan04 Princess 1st prod 3000 Depletion Abandonment Presure 2000 Jan-98 Jan-99 Jan-00 Dec-00 Jan-02 Jan-03 Jan-04 Jan-05 Jan Color of pressure point(s) = Color of Area boundary

21 Main Technical Challenges Subsurface Surface Sparse well locations (large area, low coverage) Sub-salt imaging (Well Placement) Basin-wide communication Drilling through depleted sands New technologies (SRU + Minox) Non-sour tolerant materials High pressure / high rate pumps TLP load limit Ursa Princess Water Flood 21

22 22 Adding >3000 tons

23 23 Shell Exploration & Production