The Culzean Development Martin Urquhart, Project Director, Maersk - - PowerPoint PPT Presentation

The Culzean Development

Martin Urquhart, Project Director, Maersk Oil UK

What makes Culzean different to a conventional development?

• >5x pressure of normal reservoir and >2x

temperature

• Equipment at technical limits of supply chain

capability

• Well costs c $250MM each. Normal well costs c

$40-50MM

• Fully rated API 15K WHP Topsides
• Design challenges due to scale and weight of

API15k equipment. Example:

• Typical flowline cost of $250k. Culzean flowline

cost is $15MM

• Complex, high integrity safety systems to mitigate

risks

‘8” API 15K Ball Valve from FCT Common classification of HP/HT vs. uHP/uHT

Image: HPHT wellhead being installed

What’s the Impact on Time & Cost vs. NPNT?

• Time
• Wells take nearly 1 year to drill
• Specialist HDJU rig required: 2 year

construction

• Need three wells drilled before first gas
• Minimize Depletion Drilling
• Cost
• Pre-FID investment on Culzean is $100s of

MM vs. pre-FID investment of $0-50MM

• HDJU commitment – 5yr Contract
• WHP Jacket & WAD – 10,000Te
• Long Leads for Initial Wells & Relief Wells

Case For Sanction?

• Gas Bias Production Profile
• Lean Gas, Economics not reliant on oil price
• Sheltered UK Gas market
• Fiscal Incentive
• Worked with Treasury at Select Gate
• 1st Cluster Allowance awarded
• Front End Loading
• Well Defined Requirements
• 21 Long Leads worth $200MM procured &

novated

• Market Deflation
• Contracts
• Commodities

~$2bn of Contracts Awarded

• 3 Topsides – SMOE Singapore
• Power Generation Module Bridges

& Flare – SLP Lowestoft

• 3 Jackets – Hereema Vlissingen
• 6 Pile Cluster & WAD – Heerema

Hartlepool

• Pipelines & Structures – Subsea 7

Aberdeen

• FSO – Modec and Sembcorp

Marine

• TBD – Hook up & Commissioning
• TBD – HUC Accommodation vessel

21st century installation

• Integrated operations using real time data

monitoring and analysis enabling faster decision making

• Fibre optic cable between base and field
• Minimised offshore manning
• Onshore integrated operations centre

providing 24/7 support

• 100m bridges link ULQ, WHP and CPF topsides
• Human involvement on processing facilities

kept to a minimum

• 140 beds: no need for ‘walk to work’ vessels

Image: Siemens Walk Inside software allows users to interact with topside designs

Long term outlook

• Production profile
• £2.1bn OPEX
• 150+ Contracts YTBA
• CoP 2034
• UK energy security
• Supporting thousands of jobs
• Continued need for industry

efficiency

Hub Potential

• Culzean is Cluster 001
• Exploration and Development

Expense can be offset against hub production

• Maersk and CoVs have

prospects in the area

Maersk Oil: navigating complexity, unlocking potential