Supreme Energy Development Drilling Project DRILLING PROCUREMENT SAVINGS

Transcription

1 Supreme Energy Development Drilling Project DRILLING PROCUREMENT SAVINGS 6 th ITB International Geothermal Workshop 22 March 2017 Slide 1

2 SAFETY MOMENT Slide 2

3 INTRODUCTION Supreme Energy Status: Muara Laboh (SEML), Solok Selatan, West Sumatra Rantau Dedap (SERD), Lahat, South Sumatra Raja Basa (SERB), Kalianda, Lampung SEML Start-up Project (early civil work and rig mobilization) SERD Procurement of Goods & Services SERB Development of Exploration Program (slimhole drilling) Slide 3

4 SE ORGANIZATION Complete organization functions to manage Exploration Campaign, now moving toward Development Stage This presentation shares the deliverable from 3 functions shown in the chart. Slide 4

5 DRILLING PROJECT MANAGEMENT Management of Work: 1. The Initiating Process Initiate the development drilling project and gains approval to begin working 2. The Planning Process Establish the scope of the project, refine the objectives and define the course of action required to attain the objectives 3. The Executing Process Perform and complete the work defined in the project management plan to satisfy the project specifications 4. The Monitoring and Controlling Keep track, review and regulate the progress and performance of the project; identify any areas in which changes to the plan are required; and initiate the corresponding changes 5. The Closing Process Finalize all activities with close out reports; budget, individual well, lesson learned, and all project drilling data management, and submits them management to formally close the project Management of Services (Contractors): Employ Conventional/Direct Drilling Management process (in lieu of Integrated Project Management (IPM) process) Slide 5

6 WHERE ARE WE IN WELL DELIVERY PROCESS? PREPARATION PRE- PLANNING DETAIL PLANNING EXECUTION POST DRILLING Feasibility Study Geology & Geophysics Survey Conceptual Model Drilling Services & Goods Procurement Offset geothermal fields benchmark Hole objectives and risk summary RACI Diagram & Decision Tree Pre-drilling Cross Sections Basis of Well Design Estimate Resources Peer Review Geology Prognosis (including logging & coring program) Well AFE Procurement of Goods and Services Rig Inspection Drilling Procedure Drill-on Paper Estimated well performance Well Testing Programs Setting Casing Depth Routine Well site Coordination Cutting Descriptions & Mud Logging Well Logging & Coring Program supervision Mobilization of Rig and Services Operation Supervision Operation Supports ata and Reports Cost Control Completion Test supervision Well Completion Report Well Test Report Lessons learned for performance improvements End of Well Reports AFE Close Out Contracts Close Out Heat-up Surveys Flowing PTS Well Flow Test Chemical PWD Analysis and/or Injection test Drilling Decision Team (WDT): Geologist, Drilling, Reservoir Engineer SERB Geologist SERD Slide 6 SEML Drilling Reservoir Engineer

7 DRILLING BUDGET PROCESS Benchmark Analyze large number of wells drilled in Indonesia, Philippines, and Iceland Study the drilling data of 8 wells drilled in Star Energy WW in to develop well budget (AFE) based on P60 success chance (at existing market price) Peer review of Well Delivery Process (WDP) by SKM Engineer Exploration drilling performance SEML (2012), 6 wells, 2% overrun, 15% NPT (rig & services related) SERD (2014), 6 wells, 1% saving, 12% NPT (rig & services related) Procurement of goods & services thru combined tenders and direct appointments of key drilling services to secure the geothermal expertise and experiences. Development Drilling Base Case Budget Assume same performance with including same NPT margin SEML Refer to existing market prices (SERD) before the oil price drop Scope of Work: 13 wells SERD Normalized with 10% reduction after the oil price drop Scope of Work: 16 wells Slide 7

8 PROCUREMENT OF GOODS & SERVICES No Description of Drilling Services 1 Drilling Rig Services 2 drilling rig units Slide 8 Procurement Plan Proc. Method Bidders Focus Tender 4 bidders, preselected thru PQ process Technical, Experience, and Organization Availability Technical, Lab Test & Experience Technical, Experience, and Track Record Technology & Data quality (Subsurface) & Experience 2 Cementing Service, including Bulk Plant Direct Selection 2 bidders, based on market existence & performance 3 Directional Drilling Service Tender 3 bidders, preselected thru PQ and Drilling Jar process 4 Wireline Logging Service Direct Selection 2 bidders, based on market and explosive supply existence & performance 5 Drilling Fluid Service Tender 3 bidders, based on market Technical, Lab Test & Experience existence & performance 6 Aerated Drilling Service Direct Appointment Single provider Strong negotiation 7 Drilling Bit & Services Tender 4 bidders, preselected thru PQ Technical, Experience, and Track Record process Best 3 with selective application of products 8 Fishing Service, Whipstock Direct Selection 2 bidders, based on market Technical, Whipstock Technology and Track Record and Rental Equipment existence & performance 9 Mud Logging Services Tender 3 bidders, based on market existence & performance A Casing Various Sizes Tender 3 bidders, based on market existence & performance B Master Valve 12 & 10 & Tender 3 bidders, based on market Gate Valves existence & performance C Casing Head & Wellhead Accessories Tender 4 bidders, based on market existence & performance, mostly local manufacturer Technical, Experience, and Organization Availability Technical, Delivery Time Technical, Delivery Time and Track Record Technical, Delivery Time

9 RESULTS OF PROCUREMENT Drilling Goods / Drilling Services Goods Procurement Selected Contractor Diff. (%) Goods 1 A 1% Goods 2 B 21% Goods 3 C 12% Services Procurement Service A 1 3% Service B 2 72% Service C 3 39% Service D 4 52% Service E 5 33% Service F 6 38% Service G 7 41% Service H 8 14% Service I 9 22% Remarks Changes on design / Spec, low total contract value Procurement of Goods and Services: 2 Drilling Rigs Contracts, 18 Drilling Services Contracts 5 Drilling Goods Results: SEML: 32.6% reduction from budget SERD: 23.4% reduction from budget Total budget reduction: approx 23% of Base Case Budget (procurement saving) This procurement saving is a booked value to be materialized during execution of drilling program which affected by: Quality of goods & services (personnel, equipment and technology) delivered by contractors Geology and subsurface nature Other factors such weather & other natural events Quality of supervision by Company representatives Slide 9

10 FACTORS CONTRIBUTED TO $ SAVINGS Master the engineering and field application of the goods and services Put into detailed scope of work, and develop the most efficient pricing structures Know intimately the performance of service providers, and the vendors of quality drilling goods Participate in maintaining competitiveness among service providers Develop competitive procurement plan & process Perform technical and commercial evaluation meticulously Have strong legal support and negotiation skill Take the benefit of slowing down market Employ direct management of contractors Slide 10

11 TO CLAIM THE SAVINGS Stage Activities Planning & Building Review Exploration Well Data and Subsurface Engineering Feasibility Study, including Conceptual Well Design Drilling Plan & Budget (AFE) Procurement Strategy Prequalification and Selection of Drilling Services Providers Well Design/Drilling Program Offset well study and validate lessons learned Risk assessment and mitigation plan Basis of Well Design Peer Review Final Well Design & Drilling Program Procurement Preparation of Scope Of Work(SOW) Preparation of Tender Documents SERD Tender Process of Drilling Services Award Contracts Site Preparation / Mobilization Ensure all Statutory/Regulatory Compliances in Place Worksite Preparation SEML Drilling Operations Management Set up Logistics /Supply Base Mobilization of Goods and Services Manage Real Time Drilling Operation & Engineering Compliance Prepare Daily Operation & Cost Analysis Invoicing Process & Cost Control Ensure HSE Compliance Contract & Logistics Support and Management Engineering Support and Drilling Data / Reports handling Closing and Data Management Manage All Drilling Reports and Data into Company Database Prepare End of Well Report for each drilled well Prepare Drilling Cost and Budget Report Drilling Assets handover to Logistics Department Drilling Contracts Slide Close-Out 11 SEML SERD

12 THANK YOU SERD Wellpad 2400m ASL Slide 12