CARMON CREEK FIELD DEVELOPMENT

Transcription

1 CARMON CREEK FIELD DEVELOPMENT Canadian Heavy Oil Association November 3, 2014 Use this area for cover image (height 6.5cm, width 8cm) Fred Wasden General Manager, Carmon Creek Development Copyright of Royal Dutch Shell plc November

2 Peace River Lease Overview Shell s were the first leases in the Peace River area and represent the dominant resource in the Peace River oil sands 96,000 acres lease; 1950 s vintage 100% Shell Canada ~10 Bn bbl (7-9º API) bitumen inplace Multiple pilot projects Peace River In Situ Pilot ( PRISP ) (1979); Peace River Expansion Project ( PREP ) (1986); etc. Copyright of Royal Dutch Shell plc

3 Carmon Creek Project Phase 1 & 2 Overview Peace River Oil Sands the other Oil Sands smaller and less publicized than Athabasca, with a number of similarities and a few distinct advantages Bitumen is contained in the Bluesky formation vs. McMurray Region has had oil & gas area development for decades, well serviced by infrastructure Less congested than Fort McMurray area water, cumulative environmental impacts, etc. Initial production capacity of 80,000 bpd (two 40,000 bpd phases) First oil expected in 2018 De-bottlenecking plan will increase production by an additional 12,000 bpd in mid 2020 s CCP 1 & 2 do not fully develop the lease additional phases are possible and are undergoing evaluation Carmon Creek Project Facilities

4 Overview of Well Pattern and Vertical Steam Drive Production Scheme injection phase shut-in phase production phase Subsurface Pattern steam generator D D D heat losses steam heated zone hot water hot water heat losses Cyclic steam stimulation followed by vertical steam drive 48 production wells per pad Inverted 7-spot, injector surrounded by 6 producers 115 m subsurface separation Well spacing: 4 m (wellhead to wellhead) Copyright of Royal Dutch Shell plc

5 Production Wells & Surface Facilities Approx. 80 well pads will be constructed over the proposed 35+ year lifespan of the project Common producer/injector well design Well manufacturing paradigm Modularized bolt together surface equipment Reduced surface footprint, reuse Copyright of Royal Dutch Shell plc

6 Wells Manufacturing - 1 Fit-for-purpose drilling rigs and equipment Modular, light, small footprint, fast skidding/moving, super-single Pad rigs 2 rigs with 1 backyard Automation & technology: o Fixed umbilical system o Automated pipe handling o SCADA drill compliant o 2 leapfrogging BOP s per rig o Integral wellhead & riser system o Hands off Efficiency Designed to move non-drilling activities off the critical path Assembly line philosophy, batch drilling, repetition Highline power Bespoke rig system Example: two leapfrogging BOP s per rig to take installation and testing off the critical path

7 Design One, Build Many Well pad standardization Replication 12 x12 x 80 Modules

8 Carmon Creek Development Concept 140 MMscf/d 600 MW 50kt/d 30 MMscf/d 24 kb/d 5 MMscf/d 480 MW ~ 4 pads (200 wells)/year Copyright of Royal Dutch Shell plc November

9 Central Processing Facility Schematic

10 CPF Piling Progress (August 2014)

11 First CoGen on site (October 31,2014)

12 Latest Progress (August 2014) Copyright of Royal Dutch Shell plc November

13 Aboriginal Communities and Consultation Large Consultation Area of Interest Shell has existing relationships with: Woodland Cree First Nation Duncan s First Nation Lubicon Lake Band / Nation Cadotte Lake Métis Local Sucker Creek First Nation Shell business leaders meet regularly with community leadership to maintain fluid communication and advance mutually shared objectives Shell consults regularly with each Aboriginal community to continually assess potential impacts of project development on their rights and traditional uses of the land Shell supports business development and training initiatives that help prepare Aboriginal businesses to competitively bid on contracting opportunities Shell s mineral rights are located on Crown land and fall within the Traditional Lands of several Aboriginal Communities. As such, Aboriginal Consultation is an important element of stakeholder engagement and is required under the Alberta regulatory approval process for all oil and gas activities located on Crown lands.

14 Q & A Copyright of Royal Dutch Shell plc 14

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