permian field tour - occidental petroleum · 4 subsurface characterization adds value •extensive...
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3
Oxy’s Competitive Advantage in Permian Unconventional
Subsurface Characterization
3D Modular Development
Development Scenarios
Vision Well Manufacturing Blueprint
Portfolio Decisions
Hands-Free Operations
Leadership in Full Cycle Returns
Automation and Data Capture
System Integration
Data Analytics
Organization Designed for Integrated Development
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Subsurface Characterization Adds Value
• Extensive subsurface
characterization & expertise
> Seismic integration
> Data acquisition
> Models
• Customized designs based on
unique subsurface attributes
> Sweet spots
> Frac barriers
> Landing zones
• Capture resource potential at
the highest value
Schematic Representation of
2nd Bone Spring Sand Well Placement
2nd Bone Spring Net Sand Thickness and Middle Carbonate Outline
Seismic Interpretation of Middle
Carbonate Inside 2nd Bone Spring Sand
A
A A’
Landing + Stimulation + Spacing Optimization
A A’
A’Middle Carb. Outline
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Production drivers
Data analytics
Implement
Surveillance
Vision
Well
Design the system
Challenging the Vision Well Adds Value
• Discover recipe for play-leading wells
• Apply data analytics to identify
production drivers
> Subsurface
> Completion Design
> Choke and lift optimization
• Design the system to test hypothesis
• Implement and confirm results
• Continue to push expectations
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20
40
60
80
100
0 10 20 30 40 50 60
Cu
mu
lati
ve O
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rod
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Mb
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Normalized Day
Customized Vision Wells Increase Well Productivity
2nd Bone Spring Productivity Improvement2nd Bone Spring Landing and Frac Optimization
2nd BS Carbonate – Recent 7,500’
2nd BS No Carbonate – 4,500’
2nd BS Carbonate – 4,500’
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Modular Development Adds Value• Maximize value through optimizing
pace and sequencing
• Identify Uncertainties:
> Variability of production results
> Rate of improvement
• Recognize Current Limitations
> Existing infrastructure capacity and water
network
> Land position
• Realize full cycle returns through
modular field development plans
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2
3
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Modular Development Adds Value• Maximize value through optimizing
pace and sequencing
• Identify Uncertainties:
> Variability of production results
> Rate of improvement
• Recognize Current Limitations
> Existing infrastructure capacity and water
network
> Land position
• Realize full cycle returns through
modular field development plans
1
2
3
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Mature land position
Bench delineation
Advanced BLM permitting
Fewer unknowns
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Modular Development Adds Value• Maximize value through optimizing
pace and sequencing
• Identify Uncertainties:
> Variability of production results
> Rate of improvement
• Recognize Current Limitations
> Existing infrastructure capacity and water
network
> Land position
• Realize full cycle returns through
modular field development plans
1
2
3
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Land unitization complete
Appraisal wells complete
Optimized well designs
Infrastructure sized for plan
New technologies implementable
Detailed operations blueprint
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Modular Development Adds Value• Maximize value through optimizing
pace and sequencing
• Identify Uncertainties:
> Variability of production results
> Rate of improvement
• Recognize Current Limitations
> Existing infrastructure capacity and water
network
> Land position
• Realize full cycle returns through
modular field development plans
1
2
3
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Land core-up completed
Learnings from other development
units applied
Vision wells maximizing value
Infrastructure optimized
Optimizing Development Scenarios Adds Value
Time
Ne
t P
rese
nt
Val
ue
Vision ValueVision wells
Acreage improvements
Initial ValueAppraisal and SSC
Optimized InfrastructureBalance infrastructure capacity and pace
Modular DevelopmentPace to implement learning and technology
Optimized Well DesignProductivityWell costLift design
Hands Free OperationsHigher operabilityLower OPEX
• Scale + Position
• Value Based Development
• Organizational Capability
• Integrated Technology
Oxy’s Competitive Advantage
Optimized Pace +
Sequencing =
Leadership in Full Cycle
Returns
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Permian EOR Water Floods Permian EOR CO2 Floods
Permian EOR Plants
Permian EOR
• 146 Mboed net production*
• 1.1 MM net acres
• ~20k operated wells
• 34 CO2 floods
• 70 water floods
• 13 gas processing plants
• 3 operated CO2 source fields
• 2.4 Bcf injected daily
Over 2 Bboe Net Resource Potential
~1 Bboe at <$6 F&D
Differentiated Scale and Position
* 2Q 2017 Net Production; does not include Seminole San Andres Acquisition
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Benefits of EOR Business Unit in Oxy’s Portfolio
• Long-term cash generator
> Low capital intensity growth opportunities
> Less than 5% base decline
• Provides synergies including organizational capabilities across business units
Recovery of Oil in Place*
Proven History of Maximizing Recovery
Re
co
very
Fa
cto
r (%
)
Reservoir Development Stages
0%
10%
20%
30%
40%
50%
60%
70%
Conventional Reservoirs Unconventional
Reservoirs
Primary
Waterflood
CO2
BO
PD
Low Base Decline
Generates Sustainable FCF
Primary
~15%
Waterflood
~30%
CO2
~15%
*Recovery factors listed are representative and are not specific to a field. Actual recovery factors will vary higher and lower depending on specific reservoir characteristics.
Primary
~6-12%
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Permian EOR Keys to Success: Long-term Life Cycle
Asset
Quality Capability
Value-Based
Approach
Innovative
Technology
• Technical EOR Expertise
• Infrastructure and CO2 Supply
• Gas Processing
• Automation and Controls
• High-quality Reservoirs
• Contiguous Scale
• Strategic Position
• 1 Bboe < $6/boe F&D
• Subsurface Characterization
• Phased Development Cycles
• Surveillance and Maintenance
• Safety and Environmental
• Centralized Control of Field
and Plants
• Data Automation and Capture
• Data Analytics
• Hands-free Operations
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Unmatched Infrastructure Position
Field
• ~20,000 wells
• 1,200+ surface facilities
• 30,000 miles of pipelines
• 230+ pumps for water reinjection
Plants
• 13 gas processing plants
• 9 recompression facilities
• 920k hp compression
• 1,600 miles of gathering pipelines
• 1,100 miles of DOT pipelines
• Long-term CO2 supply agreements
Integrated Communications
• Microwave backbone across Permian Basin
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Permian EOR Maintenance
• 20,000 maintenance activities per
month supported by:
> “Right-sized” programs
> Computerized Management System
> Total cost life-cycle approach
Value-based, Full Cycle Approach
Annual Beam Unit Reliability
Drone and Infrared Camera Inspections
99.6% 99.7% 99.8% 99.8% 99.9%
2013 2014 2015 2016 2017
Safer
Faster
Cheaper
Effective
Detect Solids in TanksDetect Hot Spots at Plants
Less than 20
of 7,000+
Beam Units
Fail Each Year
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Field Automation Results in Higher Uptime
• Real-time remote monitoring and
controls for operations, safety and
environment
• Manage by exception
• Artificial lift and injection
optimization using Nexus
Drilling & Completions
Well Data
Facilities Data
Workover Data
Digital Well File
• Oxy internally developed software
• ~1.9+ MM data tags
• Refresh rate every 2 minutes
• Unlimited data store
• Central repository for all well
information
Empowering EmployeesWith Mobile Access to Data
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Permian EOR Plant Automation
• 98% uptime 2017 YTD
• Mobile devices monitor real-
time trends of process variables
• Full access to all graphics and
trends
Empowering Employees
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Permian EOR ReservoirSurveillance
• Best-in-Class Reservoir
Management
• Daily and Periodic Integrated
Multifunctional Well and Pattern
Reviews
• Maximize value and results in Well
Enhancement and Field
Development Opportunities
Artificial Lift
Optimization = 4X
Oil Production
Increase
Daily Diagnostics
Multifunctional Reviews
Opportunity Identification & Ranking
Execution of High Value Program
Identifying Opportunities
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