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 • Common classification of HP/HT vs. uHP/uHT $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

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 • Image: HPHT wellhead being installed

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 • 1 st 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 •

21 st 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