how to create maximum value for the mozambique lng operations
TRANSCRIPT
By Hendrik Jan van Eldik
How to create maximum valuefor the Mozambique LNG operations
Tomorrow’s Oil & Gas solutions, delivered today
Agenda
Introduction, who we are and what we do
Challenges running an LNG export operation
How to create maximum value
Our credentials
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Who are we:
Our practices are based on Norwegian best traditions in the Oil and Gas Industry for over more than 25 years
Delivering hydrocarbon accounting and LNG solutions to all well-known operators globally
We are a Nordic company with offices world-wide in the main Oil and Gas hubs helping our clients to be most successful
Operating in more than 90 countries, 24.000 employees, stock exchange in Oslo, Helsinki, Stockholm
Key facts Tieto Oil & Gas
~50% of the world’s LNG processing controlled by Tieto systems
Daily accounting for
~40% of all oil
production in the world
40m+ bookings, for
50k users, managed
till date
4 national pipeline operators using
Tieto; including an operator delivering
of gas in EU~30%
Supporting daily optimizationof LNG cargo plans and blend production for massive oil & gas operations
Important questions by running an LNG Export operation
• Many companies in the oil
and gas industry use a
combination of
spreadsheets and manual
procedures to support
commercial operations
• Optimization of operations
and revenues are often
based on experience of
seniors. How to be sure
best decisions have been
taken
• How to avoid the risk of
data inconsistency, not
being in compliance with
govermental regulations
• Automate business
process supply chain, by
using a central database
and an integrated rules
engine to provide an
enterprise strength
application.
• Having tools available
being able to choose
what to optimize /
maximize against target
taking into account the
whole chain
• One statement of records,
one entry of master data,
one source of official
production data, planning
data and commercial
information
• Visibility across the
hydrocarbon supply chain
– from well to revenue
recognition – to streamline
operations, execute
agreements, comply with
regulations and non
operating partners, being
sustainable.
Practice Recommended Create
(Integrated) supply chain from reservoir to customer, with Energy Components, how to create maximum value
Raw gas Production
LNGShipment
LNGLiquefication
LNGStorage
LNGStorage
GasDistribution
Field operator Plant operator Terminal operator Fleet/vessel operator Terminal operator (import) Gas transport operator
LNG Producers LNG Import terminal
Grid operator
LNG/GasTransactions
Hydrocarbons
Infrastructure
Other Transactions
Buy feed gas
SellLNG FOB
SellLNG DES
Buy LNGshipment capacity (charter)
DomGas export
Sell title to gas at stock
Sell gas at entry
Sell title to gas in
pipeline
Sell gas at Exit
Sell LNG storage/re-gasification
capacity
Sell gas pipeline capacity
Small scale + Truck
Loading
Energy Components for LNG operationsSupply chain from reservoir to customer
Raw gas Production
LNGShipment
LNGLiquefication
LNGStorage
LNGStorage
GasDistribution
Field operator Plant operator Terminal operator Fleet/vessel operator Terminal operator (import) Gas transport operator
LNG Producers LNG Import terminal
Grid operator
LNG/GasTransactions
Hydrocarbons
Infrastructure
Other Transactions
Buy feed gas
SellLNG FOB
SellLNG DES
Buy LNGshipment capacity (charter)
DomGas export
Sell title to gas at stock
Sell gas at entry
Sell title to gas in
pipeline
Sell gas at Exit
Sell LNG storage/re-gasification
capacity
Sell gas pipeline capacity
Small scale + Truck
Loading
EC Production
• Supports for different
types of forecasts
Budget, Short term,
Long term, Rolling etc.
• Unlimited number of
scenarios
• Capabilities of
calculating
forecasted values
• Sub daily, Daily and
Monthly
• Support for volumes,
mass and component.
• Allocation to both well
and reservoir level
• Ownership allocation
• Vizualization of the
allocation network in
Stream Node Diagram
• Calculation Library
• Decline curves
• Performance curves
• Multi well testing
• Graphical interface to
select stable periods.
• Group and well
deferments
• Planned/Unplanne
d events
• Down and
constrained events
• Calculation of
deferred volumes
Forecasting
/Planning
Well Testing Deferment
management
Allocation01 02 03 04
05Supporting functions
• Individual dashboards
• Reporting emissions and discharge
• Reporting to internal and corporate
• Inventory management
• Reporting to JV partners
• Reporting to regulatory bodies
• Daily production and operation reports
Storage and ShipmentSupply chain from reservoir to customer
Raw gas Production
LNGShipment
LNGLiquefication
LNGStorage
LNGStorage
GasDistribution
Field operator Plant operator Terminal operator Fleet/vessel operator Terminal operator (import) Gas transport operator
LNG Producers LNG Import terminal
Grid operator
LNG/GasTransactions
Hydrocarbons
Infrastructure
Other Transactions
Buy feed gas
SellLNG FOB
SellLNG DES
Buy LNGshipment capacity (charter)
DomGas export
Sell title to gas at stock
Sell gas at entry
Sell title to gas in
pipeline
Sell gas at Exit
Sell LNG storage/re-gasification
capacity
Sell gas pipeline capacity
Small scale + Truck
Loading
EC Transport
• Production planning
• Scenarios
• Revision W-M-Y
ADP/PADP/SLS
Physical:
• Destinations
• Vessel
• Storage
• Berth
Contractual hierarchies:
• MSPA/SPA/ Conf. notice
• Penalties
• Opportunities
Harbour operations
• FOB/DES cargos
• Documents
• Purging/
cooling/boil-off
• BTU calc.
• Demurrage
• Timesheet
• Analysis mgmt.
Forecasting Planning &
Scheduling
Terminal
operations01 02 03
04Capacity management
• Maintenance
• Yield factors
• Operational events
• Shared/own infrastructure
05Terminal operations
Gas dispatching
• Nomination mgmt.
• Messaging
Contractual hierarchies
Commercial – Sales and RevenuesSupply chain from reservoir to customer
Raw gas Production
LNGShipment
LNGLiquefication
LNGStorage
LNGStorage
GasDistribution
Field operator Plant operator Terminal operator Fleet/vessel operator Terminal operator (import) Gas transport operator
LNG Producers LNG Import terminal
Grid operator
LNG/GasTransactions
Hydrocarbons
Infrastructure
Other Transactions
Buy feed gas
SellLNG FOB
SellLNG DES
Buy LNGshipment capacity (charter)
DomGas export
Sell title to gas at stock
Sell gas at entry
Sell title to gas in
pipeline
Sell gas at Exit
Sell LNG storage/re-gasification
capacity
Sell gas pipeline capacity
Small scale + Truck
Loading
EC Sales & Revenue
• Pricing
• Complex price calculations
• Manage price structures vs. Contracts
• Sales contracts
• Purchasing contracts
• Tariff contracts
• Intercompany transaction
contracts
• ACQ/AACQ
• Take or Pay Make Up
• Make Good
• Cancellations
• Force Majeure
• Penalty calc.
• KPIs
• Planned
• Actuals
Contractual reconciliation Planning & Scheduling01 02
• Automatic invoice processing using
data directly from EC Production / EC
Transport / EC Sales
• Invoice
• Provisional
• Final
• Reconciled
• Multiple currencies & Due date
calculations
• Payment terms
• Late payment mgmt.
• Interest calc.
• Four eyes approval
• Inventory Valuation
• Valuation of Storage Tank positions,
Goods-In-Transfer, etc.
• Automated ERP/SAP booking interface
Mass Balancing
Mass Balancing can appear in many forms. The most common examples are:
o Balancing a full production network
o Balancing a plant or refinery on a per-component
level
o Calculating total and per-component inventory for
one or more NGL, LPG and/or LNG Tanks
o Forecasting plant production and storage levels
based on a range of operational, production and
weather parameters
All these processes are used at Energy Components implementations around the globe.
Optimization benefit realization
Increase profitabilityCreate better plans
EC HCM will help the planners make better plans which will minimize the
need for 3rd-party cargoes, vessel chartering and unsatisfied customers.
This will help you maximize the profitability of the LNG Midstream business
Reduce costHolistic planning
EC HCM will enable you to manage LNG Midstream activities on a
portfolio level. This will allow for less silo thinking and help improve fleet
utilization, reduce need for chartering and maximize customer service
level.
Quicker decision makingAll actionable data in one system
With all data needed to make good decisions in one system
providing all users with the same, actionable data available at any
given time. This means that the planners spend less time searching
for information and more time on making better decisions.
Our credentials, active on all continents globally
More than
100 customers
Installed in more
than 55 countries
World-wide de-facto
standard
Corporate standard, best practices
600 EC licences sold globally
• Offshore, onshore production operations
• Gas transport/pipeline operations
• LNG import terminals
• LNG export terminals
• Gas sales
• Revenue accounting
• Management of partner-operated assets
• Governmental hydrocarbon accountingEC
DaWinci
Seg
men
ts
LNG Export reference casesAdministration of the Gas Supply Agreements for the supply of gas to the LNG plant, including nominations to the gas suppliers and Sales Purchase Agreements (SPAs) for the sale of LNG cargoes. Administration of other sales for LNG, LPG and Condensate . Management of LNG, LPG and Condensate cargo liftings from the plant, including production of the Cargo documentation. Invoicing of LNG, LPG and Condensate sales and provision of data to the accounting system.
Production Transport Sales Revenue
Energy Components has been successfully implemented for Woodside Energy Ltd and their main operation North West Shelf (NWS). The allocation system involves a full gas plant allocation, where the ownership of both components and products are allocated for each of the 6 Joint Venture partners from the export points at the plant, through the trunk lines and back to the offshore fields
Production Transport Sales Revenue
Energy Components was implemented as the Ichtys LNG Management System to support ADP/90 Day scheduling, Short term planning / Lifting operation, Shipment documents, Allocation and Hydrocarbon accounting as well as Contractual accounting for all product deliveries.
Production Transport Sales Revenue
Energy Components was implemented as the LNG Management System for Queensland Curtis LNG (QCLNG) to support Planning and Scheduling, Lifting operation, Shipment documents, Gas supply, Allocation and Hydrocarbon accounting as well as Contractual accounting.
Production Transport Sales Revenue
Energy Components is employed as the PNG LNG supply chain management system including the proper handling of all LNG sales agreements, scheduling and lifting operations, invoicing and revenue accounting
Production Transport Sales Revenue
By implementing EC as the SDS solution ADNOC LNG has the tool to manage specific vessel delivery scheduling which can incorporate all aspects of planning and execution from berthing for loading until the vessel returns after discharge.
Production Transport Sales Revenue Midstream
LNG Export reference casesEnergy Components is implemented to cover Qatargas business critical requirements for the Hydrocarbon Accounting System, including all EC modules; EC Production, EC Transport, EC Sales and EC Revenue. EC covers the following business critical operations for Qatargas: Management of LNG, LPG, Condensate and Sulphur cargo liftings from the plant, including production of the cargo documentation, Administration of the Sales Purchase Agreements (SPAs) for the sale of LNG cargoes, Administration of other Sales for LNG, LPG, Condensate and Sulphur, Invoicing of LNG, LPG, Condensate, and Sulphur sales and provision of data to the accounting system for financial accounting. EC is the central, consolidated database for all hydrocarbon accounting figures within Qatargas, providing the official Hydrocarbon accounting data required for company reporting.
Production Transport Sales Revenue
RasGas (now merged with Qatargas) implemented EC for Cargo Administration, Allocation, Gas Sales and Revenue Accounting. Several expansion projects have been conducted, and the RasGasEC solution today covers former RasGas LNG trains 1, 2, 3, 4, 5, Helium extraction units and AKG Sales Gas processing unit.
Production Transport Sales Revenue
EC implementation scope is managing the production stock capacity (LNG, condensate), handling cargos, production scheduling and mass balancing. Also supporting Marketing and Shipping department with planning the ADP, 90day and short-term scheduling business processes with unique and complex scenarios optimization scenarios.
Production Transport Sales Revenue Midstream
EC implementation scope is managing the production stock capacity (LNG, condensate), handling cargos, production scheduling and mass balancing. Also supporting Marketing and Shipping department with planning the ADP, 90day and short-term scheduling business processes with unique and complex scenarios optimization scenarios.
Production Transport Sales Revenue
Chevron has equity in 3 export terminals (Gorgon, Wheatstone and NWS) shipping to 10 delivery locations, a total of 250 voyages per year. They were previously managing their deliveries per export terminal. To improve efficiency and ensure meeting their delivery obligations they now manage the deliveries on a portfolio level by using EC HCM Midstream.
Production Transport Sales Revenue Midstream
Mass Balancing in EC
Energy Components Mass Balancing has been implemented at various Gas
Processing, LNG and crude plants around the world. Examples include
terminals in Qatar, Singapore and The Netherlands, as well as Australia.
Implementation is done in the EC Calculation Engine, giving full flexibility to
include the whole Mass Balancing process, and update process rules in an
easy-to-comprehend way when needed.
There is an option to include the original Mass Balancing spreadsheet as a part
of the calculation, making the process easy to update for users that are familiar
with Excel, and at the same time version controlled and Sox-compliant.
LNG Export operation - Typical practices
Field/Well ownership
Ownership allocation
Joint Venture Accounting
Complex allocation network set up
Well production allocation, Well testing
Production forecasting
Hydrocarbon
products
Hydrocarbon Accounting
Feed Gas
Xxx MTPA of LNG
Xxxx bpd Condensate
Xxx MMSCFD Domestic Gas
Facility: FPSO, Pipeline, Trains,
Storage and Loading
Integrated plant availability, Maintenance, Constraints
Mass Balancing
Annual Production Profile, ADP- 90 day schedules, ad hoc planning
Inventory Management, BOG
Berth Scheduling
Cargo Management
LNG Export operation - Typical practices
Contract
Agreements
Operating Agreements
Terminal Usage Agreements
Supply and Purchase Agreement
Other Sales Agreements (Condensate)
Contract Management (ACQ)
Sell of
products
Delivery
Price calculations
Invoicing; billing items, billing rules,
calculations, invoice line items, TAX
handling, GL input to finance
Title transfer,
Custody Transfer
FOB (DES)
Contract Management
Allocation and reconciliation
Hydrocarbon
products
Sales planning
Optimization