Ceduna Sub Basin, Great Australian Bight, South Australia EPP37, - - PowerPoint PPT Presentation

ceduna sub basin great australian bight south australia
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Ceduna Sub Basin, Great Australian Bight, South Australia EPP37, - - PowerPoint PPT Presentation

Ceduna Sub Basin, Great Australian Bight, South Australia EPP37, EPP38, EPP39, EPP40 Eyre Peninsula Mineral & Energy Resources Community Development Taskforce March 2015 BP Confidential Disclaimer The content of this presentation is


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BP Confidential

Ceduna Sub‐Basin, Great Australian Bight, South Australia

EPP37, EPP38, EPP39, EPP40

Eyre Peninsula Mineral & Energy Resources Community Development Taskforce March 2015

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The content of this presentation is derived from forward- looking statements and opinions based on many assumptions and contingencies and should not be relied upon for any purpose.

Disclaimer

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Great Australian Bight Permits

  • Awarded permits in January

2011

  • Work program commitment

including 3D seismic survey and four exploratory wells.

  • 2011-12 seismic survey

completed

  • 2013 geotechnical site

investigation completed

  • Permit extension granted
  • Environment Plan to be

prepared under OPGGS Act

  • Intention to commence drilling

in 2016

  • Statoil 30% equity interest
  • $20M Great Australian Bight

Research Program commenced

EPP 43 EPP 37 EPP 38 EPP 39 EPP 44 EPP 40 EPP 45 Ceduna Port Lincoln Murphy/Santos acreage Chevron acreage BP/Statoil acreage

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Logistics

  • Marine support in Port Adelaide

– Dedicated berths for marine support to remote offshore locations – Liquid and dry bulk materials plant facility established near quayside – Capability to expand as needed to support multiple simultaneous offshore campaigns

  • Support provided via Ceduna and an alternate landing strip on the Eyre Peninsula

– Provision for aviation base at Ceduna Airport – Contract awarded to Bristow – Alternate landing and refuelling capability at Coorabie

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Rig Construction

  • Moss CS60E Harsh Environment Rig selected
  • Contract signed with Diamond
  • Being constructed by Hyundai Heavy Industries

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Contracting

  • Tier One contractors for BP are:

– Diamond Offshore Drilling - rig contractor, rig manning, drilling services, well construction, surveys, measurement and testing, rig equipment maintenance – Bristow which includes Fixed Wing and Helicopter Services, hangar, maintenance facilities and passenger handling

  • Examples of services which could possibly be provided by locally based suppliers include:

– Logistics and warehousing – Machine shop – Environmental – Medical – Catering

  • BP has opened an Industry Capability Network (ICN) portal with over 500 businesses registering their interest and South

Australian firms are already engaged.

  • http://gateway.icn.org.au/project/3552/bp-great-australian-bight-exploration?psid=1410321935

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GAB Exploration Drilling – Environment Plan

Environment Plan (EP) prepared under Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009. The EP addresses offshore drilling, and:

  • Will include an Oil Pollution Emergency Plan

(OPEP)

  • Must demonstrate that risks are ‘

As low as reasonably practicable’ (ALARP) and ‘acceptable’

  • Must include objectives and standards to

measure performance

  • Must be accepted by the National Offshore

Petroleum Safety and Environmental Management Authority (NOPSEMA) prior to drilling

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Initial EP consultation EP preparation Follow up feedback & consultation EP submission Ongoing consultation during operations

  • Preliminary briefing to identify stakeholder

concerns, potential data sources, particular sensitivities so that we can address these during preparation of the EP

  • BP will follow up initial briefings to discuss

how issues will be addressed. This will be conducted before EP is submitted.

  • During operations, consultation will be
  • ngoing and will focus on operational

matters

Proposed Consultation Process

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GAB Development Challenges - Gas

Gas Development Key Drivers

  • Gas volumes – small discoveries may struggle to be

commercially viable, large volumes essential to economically develop an LNG scheme

  • Metocean conditions – very challenging during

construction & operation, impact on development options still to be understood

  • Water depth > 1000m
  • Gas quality & fluid properties – can impact development

complexity & cost

  • Gas market – demand & competition
  • Concept selection driven by safety, environmental, social,

technical and economic considerations

Offshore gas processing – FLNG

Remote greenfield onshore site somewhere along the GAB coastline

Onshore site close to existing industrial area & infrastructure

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GAB Development Challenges - Oil

Oil Development Key Drivers

  • Oil volumes – small discoveries may struggle to be

commercially viable, medium sized fields would likely result in a standalone offshore development & multiple large discoveries could lead to some onshore processing

  • Metocean conditions – very challenging during construction

& operation, impact on development options still to be understood

  • Water depth > 1000m
  • Associated gas – major challenge for remote oil

developments is cost effective export route for limited volumes of associated gas

  • Oil quality & fluid properties – can determine need for new

technology such as subsea separation & subsea pumping

  • Concept selection driven by safety, environmental, social,

technical and economic considerations

Offshore oil processing – FPSO or alternate floating structure

Remote greenfield onshore site somewhere along the GAB coastline

Onshore site close to existing industrial area & infrastructure

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Patience is Required

  • We are still in the early stages of exploration
  • Any development is subject to:

 Hydrocarbons being discovered  Type of hydrocarbons  Volumes of hydrocarbons

  • External factors will influence our

ability to commercialise any discoveries

  • An enabling regulatory environment

is crucial

  • Government and community

support is crucial

  • There will be many opportunities in

South Australia if we find technical and commercial quantities of hydrocarbons

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Exploration Timeline

2014

  • 4Q - Logistics approvals

completed

  • 4Q - Environment Plan

Consultation commences

2015

  • 1Q - Commence construction

works on aviation and marine supply bases

  • 2Q - Environment Plan

submitted

  • 4Q - Rig delivered
  • 4Q - Aviation and marine

supply bases completed

2016

  • Commence exploration

drilling