Introducing Subsea Connect Neil Saunders President & CEO, - - PowerPoint PPT Presentation

Introducing Subsea Connect

Neil Saunders President & CEO, Oilfield Equipment, BHGE

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Global offshore capital investment projected to grow at a CAGR of 16% with Deepwater leading the growth

2 343 180 164 173 200 242 100 200 300 400

’16

282

’18

215

’14 ’15 ’17 ’20 ’19 ’21

• 47%

+16%

Global offshore (E&P CAPEX)1 ’14-’21

($B) 3Yr CAGR : High : 18% | Base : 16% | Low : 1%

Offshore greenfield capex in 2018 expected to be $94B

BHGE analysis based on Rystad UCube – August 2018; Upstream Spend based on Rystad Brent Price assumptions: 2018 = 75 $/bbl., 2019 = 79 $/bbl., 2020 = 79 $/bbl., 2021 = 77 $/bbl. ; IHS Markit Upstream Spend report (August, 2018)

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Change makers

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Low-carbon transition Digital transformation Game changing technology Integrated perspective

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Breakeven costs have come down. Development costs for subsea projects have fallen 29% since 2015.

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73 52 2015 2018

• 29%

Source: analysis covering the same 3 major greenfield subsea projects over time using data from Rystad Energy

Average breakeven prices ($/bbl)

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We believe there is more to do.

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Reducing the economic development point of unsanctioned projects by 30% unlocks 16B bbls of reserves

Source : Rystad Ucube (October 2018), Brent oil price at $75

Unsanctioned subsea projects 2018

Asset break even price bands

Resources Billion bbl.

10 4 18 7 21 33 1 5 5 10 15 20 25 30 35

Resource Segmentation @ Current BEP Resource Segmentation @30% BEP Reduction

>$75 $50 <= x <= $75 $25 <= x <= $50 $10 <= x <= $25 12B bbl. 4B bbl.

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Introducing Subsea Connect

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Subsea Connect

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Reduces the economic development point by an average of

30%

Influences

80%

• f project

development costs and value drivers

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This is Subsea Connect

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Digital enablement Flexible partnerships and commercial models Project Connect Reservoir to topsides technology solutions

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Radically optimized. Outcome engineered. Life-of-field solutions.

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Project Connect

Reinventing how projects are planned and executed

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Fewer than 25% of oil and gas projects were delivered on time, averaging 10 months’ delay. Projects delivered were on average around 35% over budget

Source: UK Oil and Gas Authority

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v

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Project Connect

Key features

• Economic outcome

assessment

• Parallel tracks to compress

“assess” phase

• ‘All hands’ dedicated project

teams

• Independent project

management ability

• Technology system

configuration and project integration

• Flexible partners and

solutions for the project’s needs

Benefits

• Execution

certainty embedded

• Collaborative and

common purpose

• Speed—get to FID

faster

• Improved

schedule

RESERVOIR & SUBSURFACE LEAN WELL CONSTRUCTION TOPSIDES

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SPS & SURF

BHGE credentials

• Early Engagement

starting at concept evaluation

• Built-in capability:

Gaffney Cline & Associates, io oil and gas consulting

• Unparalleled expertise

in reservoir modelling, planning, project feasibility, conceptual design, environmental advisory, and asset late life opportunities

• Fullstream technology

capability

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Subsea Connect transforms uneconomic North Sea asset

3 well subsea tie back

CASE STUDY

IRR improved

3x

FID-enabled

NPV improved

2x

First oil accelerated

30%

Development

economic

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Connect pre- feed estimates Drilling SPS SURF Topside modification Owners costs Client subsea development Well design Consortium synergy Subsea optimization Connect initial estimate Cost certainty Optimized installation Procurement strategy Design— standardization Brownfield modification

50%

Project development costs

Impact of Subsea Connect on materially lowering the economic development point

Key factors impacting economic development point

Independent assessment process identifies opportunities for improvement

• Project stalled since 2015 due to poor economics
• CAPEX reduction 50%
• BHGE and io Oil and Gas apply Subsea

Connect independent assessment and Project Connect workflow, to identify project improvements—40% cost reduction

• Total Scope and Execution—line of sight to

further 10% cost improvement identified through execution process

• Assessment showed earlier FID could be enabled

CAPEX reduction

50%

Reservoir to topsides

Technology solutions for the life of the field

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BHGE Fullstream capability

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Topside

• ptimization

AptaraTM TOTEX-lite subsea system Lean well construction Reservoir

• ptimization

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Reservoir

• ptimization

Reservoir insights and

• ptimization to

enhance drainage and recovery over the life

• f the field.

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• Over 400 geoscientists across

upstream business

• Proven results

Globally deployable field teams Increased recovery factor Extended asset life

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Aptara™ TOTEX-lite subsea system

Delivers up to 50% lower total cost of ownership. Life-of-field design brings increased flexibility

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• Modular and structured

portfolio

• Compact and up to 50% lighter
• 30% lower lead times
• Simpler and easier installation,
• peration, and maintenance

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Lean well construction

Drilling to the technical limit; integrated with the rig to reduce well construction costs significantly.

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• Accelerated drilling campaigns
• Advanced drilling systems with

Autotrak™ technology

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Topside optimization

Debottlenecking, gas handling, and power solutions to extend asset life

• Over 1,400 units upgraded
• Asset life extension
• Emissions reduction and control

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Flexible partnerships and commercial models

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✓ Portfolio evaluation ✓ Exploration and planning support ✓ Concept—FEED ✓ SPS-SURF ✓ Pipelay and construction vessels ✓ Unique commercial models

Stakeholder man. Economics SURF

TECHNICAL

BHGE + PARTNERS

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Digital enablement

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Field planning &

• ptimization

Production enhancement Asset performance management

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SEGMENT CATEGORY SEGMENT CATEGORY 16 pt BOLD, ALL CAPS

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Welcome to engageSubsea.

Setting new standards in Digital asset life cycle management

The next era of operations

• ptimization and predictive

maintenance

engageSubsea

Plan Wing to wing offshore planning and OEM Assets Live on-the-job execution visibility Optimizing performance remotely

Pillars

Perform Execute 20% Reduction in maintenance cost | 5% reduction in downtime

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This is Subsea Connect

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Digital enablement Flexible partnerships and commercial models Project Connect Reservoir to topsides technology solutions

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Radically optimized. Outcome engineered. Life-of-field solutions.