brownfields : the call for efficiency - devex€¦ · brownfields : the call for efficiency olivier...
TRANSCRIPT
Schlumberger Private
Brownfields : The Call for Efficiency
Olivier le Peuch Vice President & General Manager, Schlumberger North Sea DEVEX Conference – Aberdeen May 12th 2010
Schlumberger Private
UKCS Brownfields The state of decline or rejuvenation time ?
UK Oil– Demand and Supply UK Forecasted Production Output
Source: Energyfiles, Douglas Westwood
Schlumberger Private
UKCS Brownfields A respectable prize !
Potential reserves in brownfield estimated at 2.6B boe
Reserves Forecast – UK Oil & Gas 2010 Reserves Growth by Region – UK Oil & Gas 2010
Estimated oil reserves in brownfields
Area Reserves, billion CNS ~0.7
NNS ~0.7
WoS ~1.0
SNS ~0.2
Schlumberger Private
UKCS Brownfields The growing challenge ...
Projected Cumulative Decommissioning Costs
Source: Oil & Gas UK
Growth in Unit Operating Costs
Schlumberger Private
The call for Efficiency Key lever for brownfield asset value creation
Asset value Creation
Operational Efficiency
Technology Adoption
Measure Innovate Integrate Reward
Schlumberger Private
Measuring Efficiency We can only improve what we measure & share
0 100 200 300 400 500 600 700 800 900 1000
20092008200920082009200820092008200920082009200820092008200920082009200820092008200920082009200820092008200920082009200820092008200920082009200820092008200920082009200820092008200920082009200820092008
12
34
56
78
910
1112
1314
1516
1718
1920
2122
2324
25
North Sea Floating Rigs Meters/Day On Bottom Drilling
Norway 2009 Norway 2008 UK 2009 UK 2008
Schlumberger Private
Innovating Efficiency Focused innovation on operational efficiency gains Efficient Re-Entry using TTRD SlimHole Very-High-Dogled Through-Tubing Rotary-Steerable Drilling
Developed in cooperation with Statoil & FMC
Aimed at reducing costs vs conventional sidetrack
Designed to overcome TTRD challenges (including subsea) • Reduced & straight OD to avoid damage to DHSV & HXT • Need for 3D RSS to target small targets • Need for high DLS to steer away quickly
Uses both “push-the-bit” and “point-the-bit” to achieve very high dogleg – 15 deg/30m
Schlumberger Private
Integrating Efficiency where rubber hits the road ....
Independent Fibre Optic and El ectrical Connector through the Tubing Hanger
Y-‐Splitter block to separate the Fiber and the Electri cal conductor
NEON Hybrid Electro-‐Optic Cable
NHQG Downhole Pressure Gauge for HPHT Conditions
FiberOptic Bulkhead to provide i n-‐line Pressure Barrier
XMP Feedthrough Packer
FiberOptic Cable Across the Perforating Guns
Special design Protectors to al ign and protect Cable while Installation and perforation
Special design bullnose to Accommodate and protect FO Cable end
High temperature –high flow zonesHigh temperature –high flow zones
600ft of TCP guns firing Temperature signature
Flow contribution with DTS
Integrated monitoring for subsea well test Monitoring flow and completion integrity of a subsea HPHT appraisal well during an extended well test using permanently installed optical fiber temperature measurements
1. Integrated subsea deployment of Electro/Optic monitoring system for P&T and DTS across the reservoir sand face
2. Novel use of DTS to monitor efficiency of through Tubing conveyed Perforation
3. Integrated interpretation of downhole P&T during DST flow test, to model efficiency of extended well test
Schlumberger Private
Rewarding Efficiency Are we ready for it ? Run-Life improvement on ESP deployment
Old Contract New Contract DeltaNo. of ESP wells 15 15 0Sales Price, ESP ($) $500,000 $750,000 250,000$ Dayrate charge ($/day) N/A $250 $250Avg. Runlife (years) 2.0 3.0 1.0Malus charge NA -750,000 $ -750,000 $ Bonus NA 250,000$ 250,000$ WO Duration (days) 7 7 0WO Rig Cost per Day ($) 250,000$ 250,000$ 0Meat time to repair & W/Os (days) 60 10 50Oil Production/Well/Day 5000 5000 $0Operator Internal Oil Price (@5%) $50 $50 $0Direct ESP Costs $3,750,000 $4,597,500 -$847,500Indirect ESP Costs (Rig) $13,125,000 $8,750,000 $4,375,000Deferred Oil Value @5% 6,281,250$ 1,062,500$ $5,218,750Total Cost Of ESP Ownership per Year $23,156,250 $14,410,000 $8,746,250
What Operators expect ?
- Improved well profitability
- Guarantee of performance
- New contractual relationship
What Service companies can offer ?
- Innovative pricing model with malus/bonus structure
- Investment in Run-Life improvement technology & services
• Monitoring & Surveillance
• Dismantle Inspection Failure Analysis
• Logistics / planning / execution
- Reduction of Total cost of ownership
Schlumberger Private
The prize for Efficiency : Brownfields Closing remarks
• Brownfield potential is significant but requires step change in Efficiency
• Efficiency can should become the industry motto through – Systemic & transparent efficiency KPIs – Focus on Innovation for efficiency – Integration of operations with efficiency as a priority – Support of reward mechanism for efficiency