Missing the Potential Value of

Subsea Processing Technology

Produced Water Club Intro Talk

Ian Ball, Technical Advisor – INTECSEA UK Aberdeen, 10th December 2014

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What does “new” Subsea Processing include? SAPT building blocks

Is it really new?

Current Technology and Application Status INTECSEA 2014 Worldwide Survey Poster

Why apply SAPT? What is the prize?

When can specific project value be recognised?

Where are the gaps & risks?

Why is it still so under-utilised?

Outline

Ian Ball – Produced Water Club, Aberdeen, 10/12/14

Subsea Active Production Technology

Applications Subsea separation and conditioning

Subsea pumping and gas compression

Subsea water disposal and injection

Allied supporting technologies Subsea “big power” transmission (or generation) and distribution

Electrical flowline heating

Integrated Control & Monitoring systems

Subsea chemical injection

Subsea hydraulic power units

All electric systems

What is SAPT?

Ian Ball – Produced Water Club, Aberdeen, 10/12/14

Production can be accelerated and/or plateau prolonged

Total hydrocarbon recovery can be increased

Essential enabler for certain deepwater fields

Marginal fields can become more economically viable

Flow assurance risks can be mitigated

Achievable tie-back distance can be increased – potentially

all the way to the beach

Can potentially eliminate some in-field structures

Subsea Processing offers a Compelling Value Proposition

Subsea Processing rewards

Ian Ball – Produced Water Club, Aberdeen, 10/12/14

Why Such a Long Gestation?

Discovered early that electricity doesn’t like seawater

Norway & Brazil established national subsea programmes

One atmosphere chambers to house seabed equipment Allowed hands-on repair by specialists rather than divers

Inductive electrical couplers replaced pin connectors Allowed surface insulation potting to keep seawater out

Downside was high electrical losses requiring high power input

Oil-filled wet-make electrical connectors Enabled return to efficient and reliable pin connectors

This was the single most important technical breakthrough

Gave confidence for planning deepwater frontier development

Decades of Subsea Separation prototypes

Ian Ball – Produced Water Club, Aberdeen, 10/12/14

Ian Ball – Produced Water Club, Aberdeen, 10/12/14

Subsea Separation “New” Technology??

These were all built before the Millennium:

BOET (1986 -1989)

operational pilot

GASP

(1986 -1990 prototype tested)

Kvaerner Booster Station

(Mid 80’s prototype tested)

ZAKUM (1969 -1972)

operational pilot

SUBSIS

(2000 - operational pilot)

VASPS (2000)

operational pilot

AESOP (1999 -2000)

prototype tested

Exxon SPS (1969 -1974)

operational pilot

Where are we now?

Where are we now?

The System: Pumping

Multiphase Pumping proven reliable

Incremental production justifies the investment.

Recent installations of note:

Petrobras Cascade/Chinook

Chevron Jack & St. Malo

ExxonMobil Julia

27 installations to date, 10 more planned

API 17X Committee formed in 2013

Pump hydraulics

Electrical systems

Mechanical/structural

Reliability and intervention

Qualification and testing

Image Courtesy INTECSEA/Offshore Magazine 2014 Worldwide Survey of Subsea Processing

The System: Separation, Injection

Separation and pumping installations:

Shell Perdido

Total Pazflor

Petrobras Marlim SSAO Pilot

Ten to date, 3 more in manufacturing

The System: Separation, Injection

Raw seawater treatment for injection

Pressure maintenance above bubble point Waterflood capex reduction

Three systems installed to date: CNR Columba E, (2007) Statoil Tyrihans (2013) Petrobras Albacora E. (2013)

New system developed in JIP:

Manufactured by Seabox AS Full scale pilot in 2009-2010

Integrated Subsea Raw Seawater Injection System Image Courtesy Seabox AS

The System: Compression,

Disposal Full three+ phase separation

Produced water injection

Produced water discharge to sea

Gas compression viewed as future need Longer term electric power studies underway

Åsgard, Gulfaks, Ormen Lange

- Early targets to watch

Image Courtesy Man Diesel & Turbo

Early-Phase System Analysis

Life-of-field IPM (eg MAXIMUS™)

Through-life subsea power

Production availability analysis (eg MAROS)

Value Optimization

Phasing of field developments

Minimizing well counts

Optimal hardware provisions

Making sure it works

Hardware and system reliability and integrity qualification (API 17N)

Risk management of new vendor offerings - Qualification programmes

System Engineering is Key

Ian Ball – Produced Water Club, Aberdeen, 10/12/14

What is round the corner?

Emerging Subsea Active Production Technologies Liquids & Multiphase boosting – proven

Gas/liquid & Oil/water separation – pilots performing well

Produced & Seawater Injection – pilots showing way forward

Dry & Wet Gas Compression – extensive land tests looking good

Direct Electrically Heated flowlines – proven

Subsea water treatment – that’s what we are all here for!

Subsea storage – in development

Electrical Power generation & distribution – key constraint

AUV intervention to reduce servicing costs and time

New frontier regions – especially Arctic/Ice areas

Ian Ball – Produced Water Club, Aberdeen, 10/12/14

What will the limiting factors be

A few are less controllable, eg: Reservoir surprises particularly in new plays

Environmental concerns that need to be addressed

Mostly controllable factors that we don’t control well: Resources throughout the supply & implementation chain

Reliability issues arising as a result

Learning to fast-track only where that makes real sense

Ineffective industry experience exchange

Too little holistic system thinking – working in silos

Integrated production modelling tool shortcomings

Ian Ball – Produced Water Club, Aberdeen, 10/12/14

Conclusions

The Development Agenda is changing: Subsea technology has long been essential enabler for deepwater

Energy adding technologies now emerging as game changers

Inflated Oil price created a major investment driver (still?)

Huge potential for recovery enhancement & prodn acceleration

Often essential for deepwater feasibility

But are we all aboard the change train? Often inadequate collaboration across silos

Reluctance to tackle root causes of risk perceptions

Reluctance to share operational experience

Resource constraints will chip away at reliability

Ian Ball – Produced Water Club, Aberdeen, 10/12/14

Conclusions (2)

So, can we act smarter to capture SAPT opportunities? Collaboration across discipline silos

Experience sharing between Operators, System Designers and Vendors

Collaboration & visibility on technology qualification

Transparency by Vendors on performance data & costs

Better use of integrated production modelling tools

Use of objective independent specialist resources

Management challenge has tended to be “Why SAPT?” Should soon change into “Why Not SAPT?”

Ian Ball – Produced Water Club, Aberdeen, 10/12/14

How will Operators build on success?

To learn more, please visit INTECSEA on the web and download the 2014 Subsea Processing Poster

http://www.intecsea.com/publications/posters

www.intecsea.com