Real title Unlocking Remote Oilfield Development SMi Gas to Liquids Conference 25 th 26 th October 2011 LONDON Iain Baxter Director of Business Development CompactGTL plc Slide 0 2011 CompactGTL plc
Stranded Oil! Satellite image of gas flaring in Nigeria 250 km Slide 1 2011 CompactGTL plc
Options for Associated Gas (ANG) Distance to market for converted product [km] 500 150 75 Modular GTL Gas to Wire 50 Reinjection & Flaring CNG 200 Associated Gas MMscf/d FLNG Pipeline 400 Slide 2 2011 CompactGTL plc
Emerging offshore ANG utilization options CNG High infrastructure cost Economics favourable at 200+ MMscfd Limitations: High gas rate needed & sensitive to distance to market FLNG High infrastructure cost Economics favourable at 400+ MMscfd Limitations: High gas rate needed Gas to Wire High cost for deep water and remote fields Limitations: Low gas rate only & sensitive to distance to market Slide 3 2011 CompactGTL plc
ANG : An increasing obstacle to Oil E&P where: High distance of oilfield to ANG market Distance to gas infrastructure Distance to power transmission infrastructure Constrained by political or commercial borders Difficult terrain Low ANG flowrates Low, non-commercial ANG flow-rates ( 10-100MMscf/d) Production decline over field life Flaring constraints Local & National Government World Bank IOC environmental governance Re-injection constraints Reservoir susceptible to damage or gas break-through Cost of deep re-injection well completions & equipment High reservoir pressure Slide 4 2011 CompactGTL plc
Existing Fields with Problematic ANG: Market Analysis Sample 2009 No. of Fields by Region 45 40 35 30 25 20 15 10 5 0 Africa (Central) Africa (North) West Africa Australasia Caucasus Europe (North West) Europe (UK) Latin America (Atlantic) Middle East - NW Arabia Middle East - SE Arabia & Iran N America (Frontier) N America (US GoM Deepwater) Russia South East Asia Onshore 335 Existing Fields Offshore 174 Existing Fields No. of Fields by Region 200 180 160 140 120 100 80 60 40 20 0 Africa (Central) Africa (North) Africa (Southern& East) West Africa Australasia Caucasus Central Asia latin America (Andean) Latin America (Atlantic) Middle East - NW Arabia Middle East - SE Arabia & Iran N America (Frontier) Russia South East Asia Screening Factors include: Remaining commercial liquids reserves > 50 AND <400mmbbls Distance to gas market & infrastructure GOR / Forecast associated gas production profile Slide 5 2011 CompactGTL plc
A new solution for ANG 2-50MMscf/d Modular GTL : Convert ANG to syncrude then Co-mingle and transport with the natural crude ONSHORE Slide 6 2011 CompactGTL plc OFFSHORE Image courtesy of SBM Offshore
Process Overview Modular CompactGTL Plant Feed Water Gas Treatment SMR Modules Heat Recovery & Compression FT Modules Waste Water Optional Power No Oxygen Required! Optional Gas for Power Gen ANG Syncrude Separators Oil & Liquids Processing Crude Export Slide 7 2011 CompactGTL plc
Why is this now possible? Conventional Tubular steam Reformer / ATR Conventional FT reactor e.g. slurry phase 10x increase in specific throughput Compact SMR Reactor Compact FT Reactor CompactGTL reactors using brazed plate & fin construction Slide 8 2011 CompactGTL plc
Workable ANG Solution - Requirements Production decline scaleability High availability & operability Gas composition variability Feasible utilities Feasible effluent streams Onshore: Poor infrastructure/ access Offshore: FPSO integration & certification Flexible, Modular Plant No catalyst handling on site Slide 9 2011 CompactGTL plc
Oilfield Development Benefits Creates Win-Win for all parties: Increased tax (or PSC profit oil) for the NOC and Government Environmental compliance / regulatory support Oil Company in control: No gas take-off arrangements / additional marketing Project accelerator / avoids 3 rd party delays ANG bookable as reserves Bottom Line: Increased oil production revenue: From increased crude production (otherwise shut-in) From syncrude production Project N Enhancer Slide 10 2011 CompactGTL plc
Enhanced Oilfield N Case 1 : GTL vs a feasible but high cost ANG option Gas Re-Injection or Pipeline to Market Oilfield N Integrated CompactGTL Oilfield N Syncrude 10MMscfd ANG Processed to 1,000 bpd Syncrude Facilities Capital Cost Facilities Capital Cost Gas Disposal Crude Revenue GTL Plant Crude Revenue Operations & Tax Operations & Tax Penalties or Delay GTL Opex Slide 11 2011 CompactGTL plc
Enhanced Oilfield N Case 2 : GTL liberates shut-in production Existing or Planned Field subject to ANG Flaring Cap Oilfield N Integrated CompactGTL Oilfield N Liberated Crude Revenue Syncrude 10MMscfd ANG Flaring cut liberates 10,000 bpd Production @ GOR=1,000 Facilities Capital Cost Operations & Tax Existing Crude Revenue Facilities Capital Cost GTL Plant Operations & Tax Crude Revenue Slide 12 2011 CompactGTL plc GTL Opex
Solution Delivery World Class Partners Slide 13 2011 CompactGTL plc
CompactGTL Commercialisation History Lab Scale UK Pilot Plant Petrobras Plant Client Studies 2000-2011 Commissioned Commissioned 2009 Onwards 2008 Dec 2010 11 Years lab scale R&D 5 Years development engineering specifically as an ANG solution 5 Years manufacturing supply chain development 3 rd Party scrutiny by world-class industry groups >3 years plant operational experience Slide 14 2011 CompactGTL plc
Demonstration Plant Construction 2009/10 Plant constructed by Zeton Inc, Burlington, Canada SMR & FT Reactors fabricated by Sumitomo Precision Products, Osaka, Japan Slide 15 2011 CompactGTL plc
World s first small scale fully integrated GTL facility! Gas pre-treatment Pre-reforming Reforming Waste heat recovery Process steam generation Syngas compression Final commissioning December 2010 Plant running and under test Slide 16 2011 CompactGTL plc Fischer Tropsch synthesis FT cooling water system Tail gas recycling Image shown courtesy of Petrobras
Client Conceptual Study Example 1: 5MMscfd ANG Deepwater Offshore Proposed oilfield development Deepwater, low GOR, 15 year life Continuous flaring not permitted Re-injection prohibitive 100km to nearest sub-sea gas line Pipeline CAPEX estimate: US$ 150MM CompactGTL Solution for CAPEX & OPEX comparable to pipeline Additional syncrude revenue No 3 rd party gas take-off No flow assurance issues Modular GTL Plant Integrated with Suezmax FPSO Slide 17 2011 CompactGTL plc
Client Conceptual Study: Example 2: 10MMscf/d ANG Onshore Existing oilfield operation GOR = 1,000 15 years life remaining Flaring reduction targets restricting production Re-injection prohibitive Terrain & distance prevent gas gathering CompactGTL Solution 10MMscf/d plant gives 1,000 bpd syncrude 10,000 bpd liberated crude production New oil revenue: US$ 150MM/yr [@ $40 oil] Pre-Tax IRR > 40% IRR insensitive to OPEX & oil price 10 MMscfd Modular Onshore GTL Plant Slide 18 2011 CompactGTL plc
CompactGTL Unlocking Remote Oilfield Development Compelling economics achievable for numerous remote oilfield developments >3 Years plant operating experience Volume reactor & catalyst supply chain fully established Highly resourced market leading FEED / EPC partners established Engineering & operations team with World-scale GTL experience Several projects globally at conceptual & pre-feed stage Slide 19 2011 CompactGTL plc
Real title Unlocking Remote Oilfield Development 21 st World Upstream Conference 19 th 21 st September 2011 GENEVA Iain Baxter Director of Business Development CompactGTL plc Slide 20 2011 CompactGTL plc