[PPT] - Exploration Task Force meeting Task Force Purpose Statement PowerPoint Presentation

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Q1 2020

Exploration Task Force meeting

5th March 2020

Task Force Purpose Statement

“Maintaining UKCS Exploration and Appraisal activity, making the most of the UK’s own energy resources in support of the transition towards a net zero carbon future and beyond”

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Exploration Task Force

Next Meeting – Q2 XTF meeting 3rd June 2020

Agenda

1:30pm – Start

Introduction & Safety Brief
XTF overview
Updated membership
XTF priorities 2020
Energy Transition
Opportunity Maturation

Break

Licencing
Data
Technology
AOB

4:30pm – Close

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XTF Membership

The XTF provides leadership and support to UKCS exploration & appraisal activity

Nick Terrell

Managing Director, Azinor Catalyst

Jenny Morris

Head of Exploration, Chrysaor

John Underhill

Chief Scientist & Professor, Heriot-Watt University

John Colleran

UK Expl & Dev Director, Neptune

Graham Goffey

Founder/Direct Soliton Resources Ltd.

Nick Richardson

Head of Exploration & New Ventures, OGA

Colin Percival

Technical Director, Athena Exploration

Andy Alexander

Chief Geophysicist, Siccar Point Energy

Chrysanthe Munn

Exploration Manager, BP

Katy Heidenreich

Operations Director, Oil & Gas UK

TBC

IAGC Representative

Ben Hillier

Exploration Manager UK, Shell

Mohamed-Amine Soudani

North Sea Area Exploration Manager, Total

Rod Crawford

Technical Director, Zennor Petroleum

Anne-Sophie Cyteval

UK Exploration Manager, Spirit Energy

Gillian White

Solution Centre Manager - Subsurface, OGTC

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Making the most of the UK’s own energy resources towards a net zero carbon future and beyond. exploration task force

Energy Transition

Ensuring the case for continued UKCS exploration is made

Advise on & promote ‘case for continued exploration’ through Roadmap 2035
Requirement to meet UK Energy needs through ET
Net Carbon benefit of domestic production vs imported energy
Attract and retain transferrable skills, expertise and data
Securing Social Licence to Operate through the ET and beyond

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exploration task force

2020 MER UK Priorities & Initiatives

Endorsed & ranked by Industry at recent MER UK Exploration Forum

PRIORITIES

1. Licensing
2. Data
3. Technology
4. Opportunity Maturation

Initiatives

1.Promote & encourage collaborative commercial behaviours 2.Advise on & ensure fit for purpose licensing regime 3.Promote alignment with the OGA’s Stewardship Expectations 1.Facilitate data release 2.Support development of best in class National Data Repository 3.Promote digital initiatives and improved ways of working 1.Support OGTC exploration projects 2.Champion new technologies 3.Work collaboratively to deliver our four TLB challenges 1.Support sustainable hubs and implemented area plans 2.Promote cross-border collaboration 3.Support collaborative regional exploration projects 4.Leverage UKCS Yet-To-Find data to identify new focus area

1 2 3 1 2 3 1 2 3 1 2 3 4 The XTF provides leadership and support to UKCS exploration & appraisal activity

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5th March 2020

Energy Transition

Q1 XTF meeting

Katy Heidenreich (OGUK) Jenny Morris (Chrysaor) John Underhill (Heriot-Watt University)

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Making the most of the UK’s own energy resources towards a net zero carbon future and beyond exploration task force

Priorities

Advise on & promote ‘case for continued exploration’ through Roadmap 2035
Requirement to meet UK Energy needs through ET
Net Carbon benefit of domestic production vs imported energy
Attract and retain transferrable skills, expertise and data
Securing Social Licence to Operate through the ET and beyond

XTF Leads

Jenny Morris (Chrysaor) Katy Heidenreich (OGUK) John Underhill (Heriot-Watt University)

Energy Transition

Ensuring the case for continued UKCS exploration is made

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5th March 2020

Opportunity Maturation Priority

Q1 XTF meeting

John Colleran (Neptune) Anne-Sophie Cyteval (Spirit) Graham Goffey (Soliton)

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Where are the existing hubs and

area plans located?

What has worked well so far and

what hasn’t? – learn and plan ahead accordingly

Encourage new hub or play

based Special Interest Groups eg a SNS Zechstein play group could include current interested parties – progress/share technical/business issues & build collaborative approach within and between licence groups

Opportunity Maturation Priority

Task Delivery Group

Key Initiative

1.Support sustainable hubs and implemented area plans 2.Support collaborative regional exploration projects

Tasks

Promote OGUK Reserves Progression Self Verification Tool to explorers Work with Asset Stewardship Task Force to identify data sharing improvement

pportunities on infrastructure and hosts

Launch scaled-down version of Phase 2 of Petroleum System Project, following industry commitment of c.£500k industry

Key Stakeholders

OGA, OGUK, OGIA, MER UK Asset Stewardship Task Force, MER UK Wells Task Force

XTF Leads

John Colleran (Neptune)
Anne-Sophie Cyteval (Spirit)
Graham Goffey (Soliton)

Supporting sustainable hubs, implementation area plans & collaborative regional exploration projects

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Opportunity Maturation Priority

Preferred characteristics of industry-funded regional projects:

Standalone utility: deliverable via one or more widely available, easily accessed and used platforms; no need for

bespoke software to facilitate use

Data aggregation: consolidation and compilation of disparate data spread through the NDR, in databases OGA has

purchased, BGS archive data, etc. Ideally also capable of facilitating access to additional data extracted from oil company archives

Facilitates interpretation: industry has not been keen on interpreted products, although interpretive clean-up or

categorisation of data seems helpful

Machine-readable: ideally facilitates machine reading (digital data, machine readable text, etc.)
No commercial overlap: not duplicating or competing with 3rd party commercial databases
Ability to attract industry funding from wide range of companies
Wider utility: e.g. of value for future CCS projects

Supporting sustainable hubs, implementation area plans & collaborative regional exploration projects

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Opportunity Maturation Priority

Supporting sustainable hubs, implementation area plans & collaborative regional exploration projects

Project Idea Description Pros Cons

“Crowd sourced” well failure analysis for released exploration wells Industry provide data into single UKCS well failure database that could be released via the OGA’s digital platform

Fulfils industry request
Collaborative project that

benefits wide cross section of industry

Petroleum & potential CCS

application

No funding required
Some companies may not

participate Compilation of regional subsurface databases Effectively a continuation of the UKCS Petroleum Systems model, focused on key data types e.g. reservoir quality, pressure, stratigraphic data

Builds on initial pilot of UKCS

geochemical database

Consolidation of disparate

data spread through the NDR, OGA databases, BGS archive data etc.

Additional access to data

extracted from oil company archives

Expensive – needs

significant industry funding

Scaled down version

may not realise sufficient value for participating companies Semi-regional collaboration around exploration uncertainties and understanding Encourage licence groups with similar or complementary initial term work programmes to work together to increase regional understanding through collaborative approach to studies, seismic acquisition/reprocessing etc

Increased value for money for

work programme commitments

Collaborative approach to

exploration activity

“Competitive edge” used

as an excuse not to collaborate

Relative value of work

programme items not equal

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5th March 2020

Licencing Priority

Q1 XTF meeting

Colin Percival (Athena Exploration) Ben Hillier (Shell)

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Objective:

Make the UKCS a great place to do

business for Oil & Gas

– Ease of acquiring licences – Ease of delivering success

Issues:

Licence Award

– LARRY update and training – Ensuring collaboration is rewarded

Licence Ownership

– Standard Agreements e.g. JOA – Interaction with other users e.g. Offshore Wind – Ensuring collaboration is rewarded

Licensing Priority

Task Delivery Group

Key Initiative

1.Promote & encourage collaborative commercial behaviours

Tasks

 Review JOA Standard Agreement and revise if required  Review and recommend improvements to LARRY. Facilitate training on LARRY system for all users  Licensing of offshore Wind vs Oil & Gas - establish the Industry issues  Licence award and Stewardship process – ensure collaboration is a key part of the process

Key Stakeholders

OGA, OGUK (including Commercial Managers and Legal Forum),

OGIA, Crown Estate, BEIS

XTF Leads

Ben Hillier (Shell)
Colin Percival (Athena Exploration)

Promote & encourage collaborative commercial behaviours

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Licensing Status

Innovate Licence working well
LARRY working well
Award process – quicker but would like to improve
Appendix C – lots of wasted effort/money
Marks scheme not clearly aligned with MER
Standard Agreements e.g. JOA developed prior to Innovate Licence

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Licensing Priority – UKCS Status

UKCS historically a big project basin
In mature areas (North Sea) it needs to become a small project basin

– 350 undeveloped discoveries (small pools) with ca. 2.5 billion boe. All worked individually and cannot be made commercial. Issues are:

Size
Fluids
Reservoir

– Collective solutions i.e. cluster development – geographic or technology required to deliver at least some of these – Delivering success will help unlock exploration drilling in mature areas – mainly small prospects left which in a success case will often just add to inventory. Risk is not the main issue – volume is – only finding ca. 40% of predicted volume – Upside is in stratigraphic traps – mainly found by drilling smaller features

Collaboration needs to be rewarded in licence awards and ownership

– Key to unlocking much of contingent and prospective resource base

Promote & encourage collaborative commercial behaviours

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Licensing Priority - Tasks

Review Standard JOA and revise

– Current Standard JOA put in place prior to Innovate Licence – Needs update to align with Innovate Licence:

Initial Term can now be divided into 3 phases
Licence Administrator vs. Operator

– OGUK to set up call with all interested parties in next few weeks. – Make it mandatory?

LARRY

– Review and recommend improvements – Implement improvements and training

Licensing of Offshore Wind vs. Oil and Gas

– Discuss with key stakeholders and establish the issues

Licence Award

– Review the Marks Scheme and update to reward collaboration

Promote & encourage collaborative commercial behaviours

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5th March 2020

Data Priority

Q1 XTF meeting

Rod Crawford (Zennor Petroleum)

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Data Priority

Task Delivery Group

Key Initiative

1. Facilitate data release 2. Support development of best in class National Data Repository

Tasks

 Support improvements to how seismic field data can be accessed  Support creation of NDR Roadmap and promotion to all stakeholder  Support the business case for release of well production data (by well/by reservoir)

Key Stakeholders

OGA, OGUK, OGIA, NDR Steering Committee, IAGC, MER UK Asset

Stewardship Task Force

XTF Leads

Rod Crawford (Zennor)
TBC (IAGC)

Facilitate data release & support development of best in class NDR

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Data Priority

Status

– CDA database adopted in early 2019 – Through the published Guidelines OGA are

Expanding the scope of database
Expanding the volume of data
Schedule

– NDR 2 is being planned for 2021 – Definition of the nature of NDR 2 will continue through 2020

How does the XTF want to influence NDR 2

Promote & encourage collaborative commercial behaviours

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Data Priority

Would the XTF prefer NDR 2 to be

– Merely online storage ?

Copies of data (wells / seismic)
Copies of static and dynamic models of abandoned fields
Copies of 4D seismic
Copies of reports (end of well, drilling reports etc.)
Site surveys, geotechnical, pipeline route survey etc.
Available for download and re-storage

– Or an active database in the cloud ?

Searchable reports
Automatic links to well logs
Active viewing of seismic

– Or somewhere in between ?

Promote & encourage collaborative commercial behaviours

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Data Priority

There is the future

– MER …. Minimising re-inventing the wheel – Decommissioning – Wind farm development – Environmental assessments – Re-use of the marine environment.

The choice is ours

– we will end up paying for it

Promote & encourage collaborative commercial behaviours

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5th March 2020

Technology Priority

Q1 XTF meeting

Mohamed-Amine Soudani (Total) Gillian White (OGTC)

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AGENDA

NNS Machine Learning Project
Call For Ideas Projects
Progress TLB Challenges

Technology Priority

Task Delivery Group

Key Initiative

1. Support OGTC exploration projects

Tasks

 Support OGTC in delivery of NNS Machine Learning Project, ensuring results are published to industry as soon as possible  Support progression of OGTC Exploration Call for Ideas projects  Ensure progression of TLB Challenge – short and medium term priorities

Key Stakeholders

OGTC, TLB, OGA, OGUK, OGIA

XTF Leads

Mohamed-Amine Soudani (Total)
Gillian White (OGTC)