Chevron and Energy Security for Thailand

Transcription

1 Chevron and Energy Security for Thailand Pairoj Kaweeyanun SPE Thailand Monthly Meeting September 2010

2 Agenda Overview of Chevron Thailand E&P Key Business Challenges Strategies to address the challenges Growth projects Q&A 2

3 Gulf of Thailand & Andaman Badamyar M5 MYANMAR Yangon Sein M6 THAILAND LAOS Andaman Sea Yadana Ratchaburi Bangkok Rayong CAMBODIA Lease areas Myanmar Thailand Cambodia Vietnam Pipelines Existing Power plants Industrial Chevron Concession areas OCA Block 5,6,7,8,9 Arthit Cambodia Block A VIETNAM Vietnam Block A Vietnam Block B Vietnam 52/97

4 Chevron Thailand E&P - Overview Upstream business in Thailand since 1962 First gas production in 1981 Supplying 36% of total gas demand and 26% of total power generation in the Kingdom Cumulative Production 9.3 TCF of Gas, and 584 MMBBL of Oil & Condensate* Cumulative Expenditures through 2009 was US$ 19.6 billion Expect to invest several billion dollars over the planned period 1,700 employees (88% Thai) Established training center in Songkhla * As of July 2010

5 Chevron Thailand E&P - Resources to Sales Power Generation 69% - 14 blocks are CVX operated - 5 blocks are PTTEP operated -9 blocks are OCA - 6 CPPs, 2 OCPPs - 3 FSO/ 1 FPSO >4,000 dev. wells > 200 platforms Daily Production (July 2010): -Gas 1,531 mmscfd -Condy 44,492 bcpd -Oil 95,710 bopd - 5 GSAs C1, C235, C4, B8/32, Arthit Feedstock for Petrochemical 17% Fuel for industry 10% -1 long-term Condensate Sales agreement (domestic) - 2 shot-term Crude Sales Contracts (domestic) - More than 75% of total liquid sales domestically NG for Vehicle 4%

6 Key Business Challenges Sluggish economic recovery Increasing long term power and gas demand Complex geological environment and small reservoirs Capital Efficiency and Disciplined Cost Management Safety and Reliability Shortage of skilled personnel Aftermath of BP oil spill incident EHIA process and approval Permitting/Licensing 6 6

7 Thailand Gas Demand Forecast CAGR 6.1% NGV Industrials If replace Nuclear (5,000 MW) and Coal (4,000 MW.) GSP SPP EGAT/IPP 7

8 No. of Well Cumulative No. of Platforms Cumulative Execute with Excellence Well Factory Model Wells drilled/year 4,000 3,500 3, Wellhead Platforms installed/ year , , , , # Well Cumulative # Platform Cumalative MMCF/D Actual gas sales BPD Gas Sales Oil Production MMCFD Contractual Obligation Condensate Production Year 8

9 Days Execute with Excellence Drilling performance d a y s PDC s, OBM, reduce hole size ( 82-84) Top Drives 4 to 3 casing strings Timeline of Drilling Technology PDC Bits 1982 Oil Based Mud 1982 Simpler Completions 1983 Unitized Wellheads MWD Tool 1985 Top Drive Rotary Systems 1985 Steerable Drilling Systems 1985 Super Combo Logs 1985 Steering Tools 1988 Adjustable Stabilizers 1991 TCP Completions 1993 Slim Hole Monobores 1995 Splitter Wellheads 1996 LWD tools 2000 Offline Activity Center (pipe handling) 2004 Offline open hole logging 2008 Slim hole monobore Offline Under Rig Floor ops (TVD s increasing) 0 9

10 Execute with Excellence Safety Performance STOP WORK AUTHORITY is a key enabler for managing safe work Fatalities Days Away from Work cases Restricted Work cases Medical Treatment cases First Aid cases Near Misses Hazard Identifications BBS Observations At Risk/Total Cards Operational Excellence Management System is foundation 10

11 Execute with Excellence Base Business Process- Maximizing asset value Reduce production decline rates by identifying opportunity and implementing solutions that Monetize reserves Improve the reliability of wells and facilities Optimize the capability of the reservoir, wells and facilities 11

12 Investing in People Talent Management Framework Workforce Management Talent Sourcing Learning & Development Career Management Performance & Recognition Strategic Staffing Employment Branding Onboarding Succession Planning Performance Management Global Diversity Campus Hiring Competency Assessment Potential Assessment Pay Determination Functional Competency Management Experienced Hiring Competency Development Career Development Planning Compensation, Benefits & Policies Organizational Design Non-Employee Sourcing Knowledge Management Career Ladder Management Employee Relations Health & Wellness Leadership Development Job Selection Retention Toolbox R4 Assurance: Ensure we will have the Right People with the Right Skills in the Right Places at the Right Time to achieve our Business Plan 12

13 Investing in People Competency-Based Development Horizons Pathways Time Early Career Mid Career Experience 0 5 years 6 + years Objective Job Experiences Cross-Functional and Core Technical Training Focus on Competencies Reduce Time to Competency Establish a Global Foundation Provide an Evergreen Framework To build functional competencies to meet business needs and enhance employees career development Development Component Experience-based Development Relationship-based Development Education-based Development Job Assignment Mentoring Classroom Training Experiential Learning Mentoring Knowledge Transfer Training Competency Analysis Tool (CAT) [PetroSkill] Career Development Plan (CDP) [Chevron] 13

14 Investing in People Building human asset for the country Master Program in Petroleum Geoscience at Chulalongkorn University (collaborative effort by Chevron Thailand, PTTEP and Chulalongkorn University in 2008 To fulfill a demand for qualified petroleum geoscientist in Thailand and throughout the Asia Pacific region. The first class of the program started in August 2009, with 18 students from six countries: Indonesia, Malaysia, Myanmar, the Philippines, Vietnam and Thailand The application of 2010 was closed in March. The program recruited 19 students from four countries: Vietnam, the Philippines, Indonesia and Thailand to join the second class. Additional two-week field study at Miri, Malaysia has been included in the curriculum More info at Funding program for Petroleum Engineering at Chulalongkorn University (professor scholarships, research funds, lab equipment upgrade, technical skill development) 14

15 Aftermath of BP oil spill incident Need concerted effort in various fronts to earn license to operate Work standards and assurance Well design philosophy and well control training Well control equipment acceptance test Risk and Uncertainty management standard Disciplined management of change standard Standard Operating Procedure and Stop Work Authority Contingency preparation Community engagement and communication Corporate social responsibility effort Renewed government regulations and insurance requirement 15

16 Degree of Support Change EHIA approval/ process Lessons Learned from Shore Base Project Phase 1 : Opportunity Phase 2 : Develop Alternatives Phase 3 : Develop Preferred Alternative Phase 4 : Execute Phase 5 : Operate & Evaluate Commitment Acceptance Awareness Understanding Continued engagement (internal & external stakeholders) Execute mitigation measures & CSR activities as planned Monitoring and Evaluation Continual Improvement Time 16

17 Public Scoping Meeting (PP1) vs. Public Review Meeting (PP2) No. of participants Key Success Factors 1. Intensive Stakeholder Engagement 853 Early & continuous engagement with key stakeholders Focus group meetings (government, community & medias) Songkhla Open House trips 386 Early engagement with Fishery Group Timely establishment of working committee with local community Study of economic benefits & costs CSR project plan PP1 (400 pax) PP2 (1,600 pax) 17

18 Public Scoping Meeting (PP1) vs. Public Review Meeting (PP2) Participants on August 5, 2010 (PP2) Key Success Factors 2. Strategic Preparation & Planning Teashop strategy & Communities Attitude Changing Strategy Lesson learned from PP1 (i.e. zoning strategy & categorization of participants) Identified project advocates and NGO s key players 3. Project model and animation To improve understanding how local people can live peacefully close to the project area while maintaining their livelihood and quality 4. Collaborative team effort Project Team, HES, PGPA, External Consultants, Experts and Academics 18

19 Growth Plan - Platong Gas II Project LQ2 - Living Quarters Platform CPP2 Central Processing Platform Design Basis CPP2 Design Capacity : 420 mmscfd CPP2 Condensate Capacity : bpd CPP2 Prod. Water Capacity : 30,000 bpd (1) LQ2 # Beds : 200 (1) (1) Expandable to 60,000 bpd / 240 Key Project Milestones LQ2 Turnover to Operations: Oct CPP2 Sail away: Feb CPP2 Initial Production: 4Q, 2011 MP gas from PLOCPP2 Wet Gas Comp Fuel Gas Unit Production Compressor Dehydration unit Turbo Expander Booster Compressor Mercury Removal Unit Inlet Sep (3 phases Separator) TEG Regeneration Recycle to Inlet Separator Pipeline Compressor VRC Sale Gas Metering Liquid Heater Condensate Sep (3 phases Separator) Condensate Stabilizer Gas Export LP Gas from PLOCPP2 Inlet sep Condensate Export LP Gas From Gas II Reserve Produce Water Treatment Water Injection skids Water Injection 19

20 Chevron Thailand Shore Base Project Location: Ban Bang San, Klai Sub-district, Tha Sala district, Nakhon Si Thammarat Project Details: (total area 395 rais) Marine Jetty 330 m. (with 600 m. long bridge) Warehouse/Office Bulk Plants Lay-down/Storage areas Access Road, and buffer zone Key achievements and project milestones: Front End Engineering Design 100% completed Coastal modeling 100% completed HIA Public Scoping (PP1) March 2010 HIA Public Review (PP2) August 2010 EIA Submittal September 2010 Complete Detail Design July 2011 EIA & Permits Approval December 2011 Construction Start Q Operate as single shorebase Q

21 Closing Wrap-up Q&A 21