Petroleum Overview. Philip Caldwell EGM LNG Oil Search. Health, Safety & Environment

Transcription

1 Petroleum Overview Philip Caldwell EGM LNG Oil Search 1 Health, Safety & Environment 2

2 Safety First TRI / 1,000,000 Hours International Companies (OGP) Oil Search Australian Companies (APPEA) H Protecting the Environment Oil Search is committed to conducting its activities in an environmentally responsible way, in all areas Recognising the trend toward higher environmental standards, the company decided in 2007 to base its environmental system on the ISO standard Full compliance with ISO achieved in early 2009 Site Specific Environmental Management Plans have been completed for approved Camps, Oil & Gas Facilities and the Marine Terminal. 2 surveillance audits have been completed with good outcomes. Several opportunities for improvement are being pursued. The company is preparing a number of proposals for submission to the European Carbon Emissions Reduction (CER) market in 2011 The company continues to engage with project area communities to manage potential environmental impacts. 4

3 Flare Reduction 5 Production 6 6

4 Oil Search Oil Fields Development Wells drilled By OSL Juha PDL1 Hides Angore 6 S PDL6 PDL5 SE Mananda: 3 wells Agogo: 2 wells PPL219 PDL2 Moran: 8 wells Kutubu: 7 wells 7 S Usano: 6 wells PPL219 PDL 4 PDL 3 Gobe Main 1 well SE Gobe: 4 wells 50km 143 E 144 E 31 development wells, no dry holes! 7 OSL Production Performance 80,000 70,000 Kutubu SEG Wedge, Moran Usano Kutubu Moran Agogo Moran Production Rate (Bopd) 60,000 50,000 40,000 30,000 20,000 OSL Operator 10, Previous Operator, 2P EUR : 449 million stb OSL 2009, 2P EUR : 546 million stb 8

5 What Has Worked Methodical reassessment of zones and wells that had been shut in Bolder steps unperforated zones in mature fields test legacy view on zone quality discovered that high radioactive mineral content negatively impacted reservoir quality analysis in Gobe Iagifu Turning around injectors to produce Challenging the geological model in areas where data is hard to explain search for new geological interpretations Redevelopment of poorly performing fields and blocks 9 Initial Assumptions Hedinia 7X IDD 1 Gas in Centre Iagifu 4X IDD IDT 11 IDT Hedinia 3X Hedinia 3XST2 IDD Iagifu 6XST1 Iagifu 6X Strong aquifer Tilted contact IDT 8ST1 IST 1 IHT 3 IDT 8 IHT 2 IST IDT 7 IDT 5 Iagifu 7X IDT 14 IWT 1 IDT 17 IDT 21 IDT 15 IDT 19ST1 IDT 20 IDT 4 IDT 16 IDT 13 IDT 3 Hedinia 1XST1 IST 3A IHT 5 IST 5 Hedinia 1X IDT 2 Static Oil Moving Water Top IHT 1A IDT 6 IHT 1 IHT 4 IDT 12 I IDT 1 IST 4 - UDT Hedinia 7X IDD 1 Iagifu 4X IDD 4 Water in Centre IDT 11 IDT Hedinia 3X Hedinia 3XST IDD Iagifu 6X Iagifu 6XST1 IDT 8ST IST 1 IHT 3 IDT 8 IHT 2 IST IDT 7 IDT 13 IDT 3 Hedinia 1XST1 IST 3A IHT 5 IST 5 Hedinia 1X IDT 2 Base IHT 1A IDT 6 IHT 1 IDT 5 Iagifu 7X IDT 14 IWT 1 IDT 17 IDT 21 IDT 15 IDT 19ST1 IDT 20 IDT 4 IDT 16 IHT 4 IDT 12 I IDT 1 IST 4 Conceptual map UDT 1 First years of production - dynamic aquifer model preferred Dynamic aquifers have been seen elsewhere Not an unreasonable interpretation for Kutubu at that time, based on available data 10

6 Challenging the model Highest producing well on structure hadn t seen gas in a gas drive system difficult to explain There was no water production in centre of field near where dynamic aquifer might be Other fields were demonstrating compartmentalisation Gobe Main, SE Gobe New mapping and seismic interpretation was identifying more faulting across the field Simulation suggested oil in the centre of the field New model emerging - untapped pool of oil in centre of field, probably compartmentalised Drill some wells 11 Proving the new model Hedinia 7X IDD 1 Oil in Centre -700 Iagifu 4X IDD 4 IDT 11 IDT 9 Hedinia 3X -700 Existing Well - Toro C Penetration New Well (Oil) - Toro C Penetration New Well (Gas) - Toro C Penetration IDT 9ST2 Hedinia 3XST2 IDT 23 IDD 3 Iagifu 6X IDT 23ST2 IDT 22 Iagifu 6XST IDT 5 Iagifu 7XIDT 14 IWT 1 IDT 24 IDT 17 IDT 21 IDT 15 IDT 19ST1 IDT 20 IDT 4 IDT 16 IDT 8ST1 IST 1 IDT 4ST1 IST 2 Toro C Structure IHT 3 IDT 8 IHT 2 IDT 7 IDT 7ST1 IHT 1A IDT 6 IHT 1 Compartmentalised IDT 13 System IDT 3 Hedinia 1XST1 IST 3A IHT 5 IST 5 Hedinia 1X IDT 2 IHT 4 OWC OWC N Compartmentalised OWC IDT 12 IDT 1 IST 4 UDT Drilled IDT 4ST1, IDT 22, IDT23 and IDT 23ST2 New model proved correct untapped oil pool in separate compartments One well found gas IDT23 but subsequently sidetracked to oil filled compartment Dynamic aquifer model looking increasingly unlikely 12

7 Usano Redevelopment Production well, offline Production well, online Gas injection well, online Pre-OSL Usano had a poor production history Low recovery factor (12% in main block) History of collapsed casing History of fractures and early gas breakthrough Structurally complex overburden 13 Overcoming uncertainty UDT 1 UDT 12 UDT 8 UHT 1 UDT 2 Injection OSL Development Well UDT 9 UDT 3A UDT 3AST1 Hedinia 2X Arakubi 1A Arakubi 1A ST1 UDT 10 UDT 7 ST1 UDT 7 UDT 4A Toro A Structure - Original Contacts Country License PNG PDL2 Datum/Projection Contour inc AGD66, ANS, SUTM Z Elev. ref. Date CPD (18.5m amsl) 22/10/ m UDT 11 UDT Full field remap and simulation Development strategy encompassed 6 additional production wells, and conversion of one well to injection 5 wells are horizontal using intelligent completions to optimise stand-off from contacts and reduce structural uncertainty Higher grade casing with liner lap extending over high risk interval 14

8 Usano: a rejuvenated field 12,000 10,000 Usano Main Block Usano East Block Oil Rate (bopd) 8,000 6,000 4,000 UDT 10,12 UDT 8, 9 UDT 11 2,000 UDT Maximising Remaining Oil Many Subsurface Opportunities Still Exist New Sub-Thrust Pools (Agogo / Kutubu?) Workovers of existing wells new zones Block extensions (Moran) Secondary Targets (Kutubu) Available target pool sizes for new wells are reducing: ~ 1mmstb Target objectives have increasing risk Commercial thresholds are increasingly dependent on costs and oil price Further improvement in drilling performance will assist As pool size decreases for wells and workovers, there is an increasing need for simulation with higher resolution Thin layers separated by hard streaks are controlling how gas and water move through the reservoir 16

9 Facilities Optimisation CPF to GPF crude oil transfer By transferring oil from CPF to GPF storage prior to a ship arriving, existing storage is maximised Reduced risk of tank tops and associated well shut-ins, maximise production Fewer well issues related to shut-in and start up Reduced demurrage due to higher pumping rates APF Optimisation Second lower pressure flowline, reduces slugging, maximises production from low GOR, lower pressure wells Debottlenecking Moran HP compression Increase peak injection rates and maximise injection to optimise voidage and provide flexibility to inject gas on block by block basis APF optimisation (dehydration, CO2, inlet de-bottlenecking). Exploring options to reduce SEM flowing pressure to enhance production and reserves Gobe & Kutubu Optimisation Upgraded LP and HP compressor capacity Debottlenecked gas injection lines 17 Integrity, Life Extension & Preparing For Gas 18

10 Integrity & Life Extension Introduction of Process Safety / Well Integrity Programmes Manage corrosion and pressure integrity Improve integrity monitoring, test and inspection programmes Additional Non-destructive testing of pipework High Profile reporting requirements Corrosion & SRB Management Install new pigging facilities and run intelligent pigs on export lines to Kumul platform Replace corroded water injection lines at CPF New line provides for pigging and improved SRB control Improved SRB monitoring and treatment has reduced SRB corrosion risk Closer Monitoring Of Maintenance Effort / Downtime / Production Loss Facilities & Support Infrastructure going beyond initial design life Ongoing management of obsolete equipment Support infrastructure, camps, industrial park, warehouses overhauled 19 Associated Gas Scope Associated Gas Delivery Enhanced dehydration by replacing existing gas driers to improve gas quality and reduce emissions Enhanced gas cooling for spec commissioning gas to LNG Plant AG Gas Management System by automating various wells for remote operation and upgrading plant inlet gas management system New and upgraded metering to manage gas reserves Condensate Storage Add value to the LNG Project by the Receipt, storage and export condensate from LNG Project HGCP with high reliability Upgrading of pipework to allow inline mixing, loss prevention (particularly fire management) and control systems Commissioning Gas Installation of skids to allow early commissioning gas for the LNG Plant Utilities Improvements to ESD system and new control room Tie ins for new equipment into existing and improved utilities 20

11 AGRP Changes to the - CPF 21 PL2 Life Extension Scope Objective is to provide a highly reliable export route for oil and gas condensate liquids for the next 30 years Installation of a new CALM buoy, tanker loading line and PLEM at a new location 7.7km south of the platform in a water depth of 35m Allows uninterrupted tanker loading whilst the new facilities are installed Major life extension work on Kumul platform Replacement of most of the major equipment Repair / replacement of piping and some structural steel Inspection, engineering assessment and maintenance to existing export line from CPF to Kumul Primarily for fatigue life management 22

12 A View of The Future PNG LNG transforms production profile, adding ~18 mmboe pa to OSH at plateau in 2015 onwards. 30 year Project life T3 could add an additional ~9 mmboe pa, with T4 of similar magnitude 90,000 Net Production (boepd) 80,000 70,000 60,000 50,000 40,000 30,000 20,000 Potential T3 LNG Condensate Potential T3 LNG Gas LNG Condensate LNG Gas 10,000 0 PNG Development Questions 24 24

13 Disclaimer DISCLAIMER While every effort is made to provide accurate and complete information, Oil Search Limited does not warrant that the information in this presentation is free from errors or omissions or is suitable for its intended use. Subject to any terms implied by law which cannot be excluded, Oil Search Limited accepts no responsibility for any loss, damage, cost or expense (whether direct or indirect) incurred by you as a result of any error, omission or misrepresentation in information in this presentation. All information in this presentation is subject to change without notice. This presentation also contains forward-looking statements which are subject to particular risks associated with the oil and gas industry. Oil Search Limited believes there are reasonable grounds for the expectations on which the statements are based. However actual outcomes could differ materially due to a range of factors including oil and gas prices, demand for oil, currency fluctuations, drilling results, field performance, the timing of well work-overs and field development, reserves depletion, progress on gas commercialisation and fiscal and other government issues and approvals. 25