Arctic Petroleum Development and Production Q1-2013 Geir Utskot - - PowerPoint PPT Presentation

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Arctic Petroleum Development and Production Q1-2013 Geir Utskot - - PowerPoint PPT Presentation

Arctic Petroleum Development and Production Q1-2013 Geir Utskot Arctic Manager Overview Arctic resources Forecasted activity 2012 to 2017 Existing Arctic Developments What does this mean in our part of the world? Some Discovery to Production


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Arctic Petroleum Development and Production Q1-2013

Geir Utskot Arctic Manager

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Overview

Arctic resources Forecasted activity 2012 to 2017 Existing Arctic Developments What does this mean in our part of the world? Some Discovery to Production timelines Some new technologies The northern sea routes Summary

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Arctic Resources

3 Statoil 2009

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Forecasted offshore activity 2012 to 2017

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Wells per region & type 2012 2013 2014 2015 2016 2017 Total # of wells NAM Exploration 4 6 12 10 12 14 58 NAM Development Norway Exploration 8 8 10 10 10 10 56 Norway Development 3 12 17 17 25 28 102 Russia Exploration 4 6 6 12 14 42 Russia Development 5 8 11 10 11 7 52 Wells per year 20 38 56 53 70 73 310 Wells per region 2012 2013 2014 2015 2016 2017 Total # of wells NAM Exploration 1 6 10 12 14 43 NAM Development Norway Exploration 8 14 10 10 10 10 62 Norway Development 3 5 5 5 11 18 47 Russia Exploration 4 6 6 12 14 42 Russia Development 5 8 11 10 11 7 52 17 31 38 41 56 63 246

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Where will the activity be?

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Newly issued Rosneft licenses (cont.)

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http://www.rosneft.com/attach/0/16/40/fact_sheet_arctic_blocks_eng.pdf

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Russia, Bazhenov shale

Bazhenov Shale

 Estimated to be 5 times the size of

US Bakken

 In areas with existing oil and gas

infrastructure

Yet the full scale of its riches remains a

  • mystery. Estimates range from a

conservative three billion metric tons, or over 20 billion barrels, to as much as 143 billion metric tons, according to a survey of Russian research by oil consultants IHS Cera. The upper estimate would mean an extraordinary one trillion barrels, nearly four times the size of Saudi Arabia's oil reserves

  • r 30 years of world supply at current rates of

consumption.

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Norway, Barents Sea gas

Snohvit

 Subsea to beach

(140km), CCS, LNG

 Est. Cost > $12 B  Snohvit LNG expansion

put on hold – another 3.5 Tcf needed

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Norway, Barents Sea oil

First oil development is the Goliat by ENI/Statoil

 Subsea production, Sevan Production

Storage Unit, tankers to market, Gas reinjection, Electrical power from land to run the platform to reduce CO2 emissions from platform

 Est. Cost $6.4 B

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Norway, Barents Sea oil (cont.)

Skrugard/Havis is the second Norwegian Barents Sea oil development

 In 2011-2012 Statoil and its partners

discovered Skrugard and Havis, which are two independent structures within the same licence and represent the Skrugard field development. 400-600 million barrels of recoverable oil have been proven in this area.

 To be producing in 2018, subsea

development, floating processing unit, 280 km pipeline to shore, Statoil

  • perator

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Russia, Shtokman

 Originally Gazprom 51%, Total 25%,

Statoil 24%

 Super Giant Gas Field - 135 Tcf  Est. cost >$20 Billion  Phase 1 of 3: 16 - 20 subsea wells  Floating LNG Production Unit  550km subsea pipeline  Delayed due to low gas prices  Statoil pulled out of JV, re-entering?  Tender issued for FEED of LNG plant

at Teriberka outside Murmansk

 Shell and Gazprom announced JV  GTL would be very easy to ship

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Russia, Yamal peninsula

Bovanekovskoye

  • Gazprom
  • 175 TCF of gas
  • 240 wells drilled
  • 1,240 km pipeline
  • Start at 1.4 Bcf/d

and increase to 10- 13 Bcf/d

  • Railroad built

Yamal LNG

  • Total and Novatek
  • Tambeyskoye field
  • 55 TCF of gas
  • Est. cost $20 B
  • Start in 2018 at 650

mmcf/d and triple to 2 bcf/d by 2020

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Russia, Pechora Sea

Prirazlomnoye (Offshore)

  • 1st development project in

Russian Arctic offshore

  • Gazprom Neft
  • 340 MM bbl (P90), 20 m water

depth, Production starts in 2013?

  • 36 wells by 2019, Development

CapEx of $4B

  • To be followed by development
  • f the larger Dolginskoye
  • ilfield nearby (NW)
  • Romanian jack-up will start

drilling delineation wells this summer

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What does this mean in our part of the world?

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What does this mean in our part of the world? (Cont.)

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What does this mean in our part of the world? (Cont.)

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Many existing fields (Hopedale and Saglek) are within the pipeline distance from the Snohvit subsea field to Melkoya LNG plant. The newly discovered basins would currently most likely require floating processing units

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How does it all compare?

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Some Discovery to Production timelines

Country Field Discovery Start Development Start Production Discovery to Production

Canada Norman Wells 1921 1980 1985 64 Canada Bent Horn 1974 1980 1985 11 Canada Amauligak 1984 2023 2027 43 Norway Snohvit 1984 2001 2006 22 Norway Goliat 2000 2012 2014 14 Norway Skrugard/Havis 2011 2016 2018 7 Russia Shtokman 1988 2016 2022 34 Russia Bovanenkovskoye 1971 2008 2012 41 Russia Tambeyskoye 1974 2011 2018 44

Red numbers are guesses

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New technologies

Seabed Rig

Under water drilling rig

Badger Explorer

Rig less drilling

North Energy

Tunnel to Oilfield

Boeing & SkyHook

Airships

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21 Technip High North Experience

Subsea Flowlines and Umbilicals

Source: Technip

Flexibles - Monitoring

Measurement-enabled flexible pipe ► Joint development of advanced flexible pipe integrity and surveillance with Schlumberger

A new generation of intelligent flexible pipe Rigid - Heated Pipe-in-Pipe

Extension of current technology to include possibility for active heating of flowline system ► HPIP qualified for reeling,

  • ffering very high thermal

efficiency in combination with lower power requirements

Excellent flow assurance performance Flexibles - 3,000 meters

Extend flexible risers water depth and pressure capability to 3,000 meters and beyond through innovative solutions ► Initial results from ultra-deep

  • ffshore test of 7", 9" and 11"

flexible pipe for sweet and sour service were successful

Towards 3,000 meters and beyond

Drive growth: enabled by technological innovation

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ETH-PIP Technology – A New Pipe-in-Pipe Generation

  • Standard Pipe-in-Pipe (PiP)
  • Electrically Trace Heated PIP (ETH-PiP)
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ETH-PiP Technology: Field Architecture Advantages

  • Single Line Based Field Lay-Out vs. Conventional Loops
  • Less total flowlines length
  • Less risers
  • Longer step-out from FPSO

FPSO Subsea Manifold Umbilical FPSO Single Line ETH- PiP Umbilical ETH In-Line Tee Subsea Manifold

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Pressure = Wellhead Flowing Pressure (WHFP) Production Period [Years] N N+n Production Time Extension Planned Production Time ΔP Reduction 100 bar Range

ETH-PiP Technology: Enhanced Oil Recovery?

DP/DT ≈ 1.0 – 2.0 bar/year range

  • Impact of Reduction of Pressure Drop Downstream Wellhead
  • Due to production profile low WHP gradient

at end of field life, any improvement in hydraulic performance of flowline i.e. reduction of pressure drop, could substantially increase wellhead production period.

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TOTAL Islay Project – First Application

  • Flowline Data
  • 6.625” x 12.750” ETH-PiP line – 5.8 km length
  • 4 heat tracing cables (Heat Trace Ltd.)
  • Fibre optics system in annular space for temperature monitoring
  • Several Key Lessons Learned to incorporate into future R&D.
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Technip Slide Library 26

Future Arctic Developments in Canada

Existing reach from FPSO to subsea trees is typically 10 km radius, 20 km diameter

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Technip Slide Library 27

Future Arctic Developments in Canada

Future reach from FPSO to subsea trees (with heat traced Pipe-in-Pipe is typically 35 km radius, 70 km diameter

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Gas To Liquids, Shell, Pearl GTL facility, Qatar

In 2003, the project cost was estimated to be US$5 billion. Because Shell's contract provided them with the input gas for free, the project was calculated to be viable once the price of

  • il exceeded $40.

Key facts

Location: Qatar, Ras Laffan Industrial City Integrated gas and gas-to-liquids project Development and Production Sharing Agreement with Government of the State Qatar, 100% Shell funding Development cost: $18 billion-$19 billion Production: 1,6 bcf/d of gas (291,598 boe/d) resulting in: 140 kbo/d of GTL products (2 trains); gasoil, kerosene, naphtha, normal paraffin and base

  • ils for lubricants

120 kbo/d of NGL and ethane Total production: 3 billion boe of natural gas over the life of the project Key contractors: JGC/KBR joint venture

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Minimum sea ice extent and its implications

The changes; 2012 lowest ever

  • The North East Passage has been open since 2008

(a.k.a. Northern Sea Route, NSR)

  • 34 ships went through the NE passage in 2011, over

70 expected in 2012 but only 46 sailed (1.3 million tons of goods)

  • The North West Passage’s northern route has been
  • pen since 2010. 26 vessels passed through in 2011

compared to 69 in the first 100 years from 1906.

  • First LNG shipment through the NSR from Snohvit to

Japan in Nov-2012.

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2012 •

We sailed our seismic vessel out the NWP this summer from Canadian Beaufort Sea

  • All Arctic nations are now looking

at improving emergency preparedness and search and rescue capacity.

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Summary

The Arctic activity is increasing

Existing Gravity Based Structure (GBS) platform solutions can be used in up to about 100 meters of water depth New re-floatable GBS platforms are being developed for exploration in heavy ice (Kara Sea and similar areas, 60 meter water depth) Floating options with or without pipelines exist for mild ice conditions Subsea technology improvement allows 3 phase flow over 145 km to avoid floating production in ice New technology is being developed to explore and produce in (and below) harsh ice conditions

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