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Subsea Expo

Area Plans & Resource Maturation in CNS

7th February, 2019

Alistair Macfarlane, Business Development Manager CNS, OGA

Agenda

Opportunity in the Central North Sea and Moray Firth Area

OGA Strategic Levers

o Stewardship - Field Development Roadmap

o Licensing

o OGA Area Plans

− 2019 31st Supplementary Licence Round – Greater Buchan Area

− Greater J Ridge

Summary

UKCS Undeveloped Opportunities

3.3bn boe in UKCS marginal discoveries (50% in the CNS/MF area)

0

1

2

3

4

5

6

ProspectsMarginal

discoveries

Proposed

projects In-fieldReserves

(2P)

4.1

3.3

2.1 2.1

5.4

Contingent resources

Bn

bo

e

Reserves and Resources Potential

(P50 recoverable, UKCS, end of 2017)

WoS, 0.85

NNS, 0.42

MF, 0.56

CNS, 1.14

SNS/IS, 0.33

Marginal Discoveries by Area

(End of 2017, Total 3.3 Bn boe)

CNS – Central North Sea

MF – Moray Firth Basin

WoS – West of Shetland

NNS – Northern North Sea

SNS/IS – Southern NS and Irish SeaSources: OGA’s 2017 Resource and Reserve Report, and OGA’s 2017 PARS database

FDP Roadmap

Formal Concept Select Agreement with OGA

Assessment

• Consultation on

Project Execution

Plan

• Consultation on

Concept Selection

• Consultation on

Supply Chain

Action Plan

• Technology & EOR

screening

OG

A

BE

IS

Environmental

Statement

preparation

OGA

agreement

to Concept

Select

Authorisation

• Project Execution

Plan

• FDP/FDPA

• Field Determination

• Unitisation & Unit

Operating

Agreements

• Field Operator

Approval

• Environmental

Statement

consultation

• Decommissioning

security

arrangements

Design or

Relocation

NotificationHS

E

Final

FDP

Execute

• Monitor project

execution

• Commissioning

Flare Consent

issued

• Pipeline Works

Authorisation

Safety Case acceptance by

Offshore Safety Directive

Regulator (if required)

First

Product

ion

Evaluate alternative

development

concepts

Industr

y r

equirem

ents

PhaseFully define development

scope and detailed

implementation plan

Build the development,

finalise the operating

plan

Source: OGA’s 2017 Requirements for the planning and consent to UKCS Field Developments

Licensing

Licensing simpler, more flexible and predictable

2017 2018 2019 2020 2021201

6

29th

30th

Launch Applications Awards

Awards

Launch Applications Awards

‘Mature’ Areas

‘Frontier’ Areas

‘Frontier’

31st

Seismic Data Release

120-day Application Period Introduced

90-day Application Period

New Innovate Model Licence Clauses

32n

d3

3rd

Launch Applications Awards

‘Mature’ Areas

Launch Applications Awards

‘Frontier’ Areas

Prospect Data ReleaseG

r B

uch

an

Launch Applications Awards

‘Mature’ Areas

Supplementary Licensing Round

Greater Buchan Area

Data Release

28th Round Licenses awarded

29th Round Licenses awarded

30th Round provisional award

31st Round blocks offered

Restricted areas

Blocks licensed previous rounds

Wells drilled since OGA established

36 applications from 35

companies for 164 blocks

123 licences awarded for 229

blocks to 61 companies

90-day Application Period

Area Plans

Complete (Transitioned to Execute)

Penguins

Fram

Arran

Columbus

Vorlich

Gannet (Fulmar

Bypass)

CMS

Redevelopment

Area Plans

Area Plan – a proposal for action developed in partnership between the OGA and

industry as to how economic recovery should be maximised in a particular

geographical area of the UKCS based on analysis of evidence.”OGA Guidance on the Development and use of Area Plans ( July 2017)

Innovative approach blending licensing with area plans

8

• A diverse portfolio of undeveloped discoveries, prospects and leads

• Existing infrastructure is utilised in the most MER effective manner

• Potential of up to 300mmboe

• 2/3rd of acreage is unlicensed

• Additional scoring category - Area Plan (100 marks, max)

• Strategic vision for the area to achieve MER (25 marks, max)

• Incorporation of nearby prospectivity and discoveries and how these could

be enabled (25 marks, max)

• Collaboration with area licensees, Joint applications, willingness to be

‘partnered’ (20 marks, max)

• Clear demonstration of understanding of risks and opportunities (10 marks,

max)

• Realistic time bound and funded activity plans (20 marks, max)

• Area Data collated and released to industry

Supplementary Area

Licensed Blocks

Condensate field

Gas field

Oil field

Discovery

Key

Prospects & Leads

Eocene

Paleocene

Lower Cretaceous

Jurassic

Permian

Devonian

Greater Buchan Area Supplementary Round

Infrastructure Challenge

Greenfield & Brownfield

CGA - Greater J Ridge Area Plan

Area Plan Goals

Size of Prize

c. 1 billion boe of base, incremental

and potential

Maximise and utilise Greater J Ridge

infrastructure

and extend CoP’s

New fields on-stream, using

appropriate infrastructure before 2025

Plans in place to develop other

economically recoverable resources in

the area before 2025

Unlock greater HPHT hydrocarbon

potential by risk reduction through

application of new technology and

HPHT clustering strategies

Substantial value to be created

Summary

UKCS still has significant opportunities

2018 saw successful Area Plan delivery in Central Graben Area

OGA CNS team strategically active with Area Plans and covering Greater J

Ridge, Greater Buchan Area and Q15

The OGA is strategically attempting to enable success through:

o Asset Stewardship

o Licensing approach

o Area Plans

o And ongoing focus on technology

Success will require industry to:

o Engagement early and collaborate between supply chain & operators to

optimise concepts

o Develop and deploy Technical innovation

o Joint developments

o New commercial models

End