FPSOs - the 'go to' development technology for Deep Water discoveries

.........turning discoveries into cash flow! 0

Tuesday, June 4, 2013, London, The Geological Society

Time was that FPSOs were seen as the solution when an oil field was small, too small to justify a permanent facility. And as the ‘deepwater’ era began in the Gulf of Mexico, the talk was of spars and tension leg platforms (TLPs). But now, the FPSO is the dominant floating production facility, as evidenced by the most recent report from International Maritime Associates (IMA).

And thus any oil & gas company operating offshore more or less anywhere in the world has to understand this technology - what is it about, what are the cost and schedule benchmarks, what is best practice, are there some examples that we should try to emulate? Unless they do, their discoveries will be stranded ...

What does the basic data tell us?

IMA reports that seventy-four production floaters currently are on order, 40 percent more than the backlog seen a year ago and more than double the mid-2009 backlog. These include 49 FPSOs, 6 production semi-submersibles, 3 TLPs, 4 spars plus 3 floating liquefied natural gas vessels and 9 floating storage and regasification units.

Brazil dominates actual orders for production floaters, with 28 units, or 38 percent of the backlog, being constructed for use offshore Brazil.

These statistics demonstrate the clear dominance of FPSOs, if anything showing an increasing trend from those reported a couple of years ago by Christopher M. Barton, who reviewing 209 developments over a longer period, noted that FPSOs were the preferred choice in 61% of cases whereas spars and TLPs together were 20%, the balance being made up by production semi-submersibles.

IMA further reports that the number of floating production projects planned worldwide continues to grow, with 233 projects planned as of July 2012, up from 196 projects in July 2011 and the 122 projects planned five years ago. Brazil tops the list of nations with planned floating production projects at 55, followed by Southeast Asia with 46 projects and 44 planned projects in Africa, other major locations include: Gulf of Mexico – 24 projects; Northwest Europe – 17 projects; Australia – 14 projects; Mediterranean – 11 projects; Southwest Asia/India – 9 projects.

IMA notes that while the number of planned floating production projects continues to grow, not all of the projects will materialize as actual orders as some discoveries prove non-commercial to develop or others are nominated as tiebacks or joint developments.

The reasons for this FPSO dominance are not a matter of technology – all the technologies are basically proven – but ultimately a matter of economics. The key drivers for establishing the type and shape - and ultimately the cost - of a floating production platform include:

Our June Finding Petroleum Forum will consider each of these drivers and demonstrate how it is that the FPSO option more often than not leads to an economically advantaged development.

Agenda

9:00 Arrivals and Registration. Tea & Coffee

9:30

David Bamford - Director - Finding Petroleum

Welcome & Introduction



David Bamford is well known around the oil & gas industry both as an explorer and a geophysicist. He holds a Physics degree from the University of Bristol and a Ph.D in Geological Sciences from the University of Birmingham.

Since 2004, he has been a non-executive director at Tullow Oil plc, being recruited for this position especially for his exploration knowledge. He serves on the Nominations and Remuneration Committees, and was chairman of the latter, and Senior Independent Director, for 3 years prior to his retire from the board at the end of April 2014.

He was on the board of Premier Oil from May 2014 to May 2016.

He retired from BP plc in 2003, his last four positions being Chief Geophysicist (1990-1995), Business Unit Leader (General Manager) for first West Africa and then Norway (1995-1999), and finally Head of Exploration until 2003.

He has served on the boards of Paras Ltd, a small exploration and IS/IT consulting company in which he held 22% equity, until its sale to RPS Energy in 2008 and Welltec a/s, a Danish well engineering company, as the nominee of the private equity investor Riverside.

From 2012 to 201 he was on the board of ASX-quoted Australia Oriental Energy as a non-executive director.

He was a founder of Richmond Energy Partners, a small oil & gas research house, and several media companies that focus on the oil & gas sector, and has served as an advisor to Alliance Bernstein, Opus Executive, the Parkmead Group plc, and Kimmeridge Energy LLP. Since retiring from BP, he has undertaken asset and company valuation projects for investment banks, hedge funds and small oil companies.

Finding Petroleum
Finding Petroleum was established to help the oil and gas industry network, and stay up to date on the latest technological developments. It does this via hosting regular events and with an online social network of nearly 10,000 members.
9:40

David Phillips - Senior Equity Research Analyst - HSBC

Costs, Conversion & Construction - Opportunities Across the Floating Production Value Chain


David Phillips is a senior equity research analyst and co-head of the global oil & gas equity research team at HSBC, based in London. He joined HSBC in 2005 and has been an investment analyst since 1998, initially covering European chemicals and moving over to cover the oil & gas sector in 2006. David currently researches oilfield services companies on a global basis, covering Europe, North America, Asia and Latin America. In the Extel survey for financial analysts he ranked in the top 5 for oilfield services in 2011/2012 and ranked 2nd in 2013. Before working in equity research, he read Chemistry at Oxford and gained a PhD in Chemistry from the University of Cambridge in the UK.

HSBC
Headquartered in London, HSBC is one of the largest banking and financial services organisations in the world. HSBC's international network comprises around 7,200 offices in over 80 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.
10:15

Martin Shaw - managing director - Marine Operations and Assurance Management Solutions Ltd

Integrity & safety issues associated with floating operations


Martin Shaw is ex VP technical, fleet manager and vetting service manager, BP Shipping.:

· 37 years with BP 3 years consulting on marine operations and marine assurance
· In addition to involvement in tanker operations substantial involvement in the offshore sector
· As an officer on Iolair while building and into service as well as on PSV’s
· Involved with FPSO projects in Australia ( Cossack Pioneer) and West of Shetland ( bought Loch Rannoch shuttle tanker for Schiehallion)
· Involved in buying the Project Jigsaw Regional Support Vessels
· As Regional Director EMEA and TVP involved with Angola, Skarv, GoM
· Developed , negotiated, and gained approval for the Group Marine Standard which amongst other things covers the marine elements of FPSO’s. The standard is still in place in more or less its original form today.

Marine Operations and Assurance Management Solutions Ltd
MOAMS,Marine Operations and Assurance Management Solutions, is a different type of consultancy. MOAMS combines a deep knowledge of marine operations with research into the future of the industry.
10:50 Coffee & Tea

11:15

Gilbert Yevi - Jubilee Asset Manager - Tullow Oil

Tullow's Jubilee Field Development

Talk Description.
Jubilee Field Development Project and Production Performance
Gilbert Y Yevi, Tullow Ghana Ltd

The Jubilee project is one of the fastest and most successful deepwater developments in the World. Discovered in June 2007 in 1200-1500 meters water depth at approximately 60 km of the coast of Ghana, the Jubilee field started production in December 2010, just three years after its development decision was made in January 2008.

Jubilee project was delivered in a record pace and on budget. The phased development approach, the project team structure, the use of proven technology, the focus on HSE, the split of responsibilities amongst joint venture companies, and the emphasis on good relationships with local communities and government are some of the factors that contributed to the delivery of Jubilee.

Since start-up, the Jubilee field has performed above expectations with world class FPSO production uptime exceeding 98%. The FPSO oil production system capacity was tested at rates well over 125,000 bopd which exceed its design rates of 120,000 bopd.

This talk will present the Jubilee project and the key factors that enabled its success. The presentation will also discuss the sparing and maintenance strategies that help Jubilee sustain a top quartile production performance in an environment with no previously existing major oil and gas production activities or infrastructures.

Dr Yevi was appointed to his present role as Jubilee Asset Manager in Tullow Ghana in June 2011, where he manages all subsurface, production operations, drilling, and projects delivery activities for Tullow Ghana. He is a Petroleum Engineer with over 22 years in academic research and industry experience in oil and gas exploration, development and production.
Dr Yevi spent thirteen (13) years of his career in Shell where he worked in various technical and managerial roles in US Gulf of Mexico and West Africa. Prior to joining Tullow, Dr Yevi was a Joint Ventures Manager for Addax Petroleum in Gabon.
Dr Yevi holds an MBA in Finance and Management (Tulane University, 2000), a PhD in Computational Fluid Dynamics (Mississippi State University, 1996), an MSc in Petroleum Engineering (Mississippi State University, 1994), and a BSc in Drilling Engineering (University of Mining and Geology of Sofia, 1991).

Tullow Oil
Tullow Oil plc is one of the largest independent oil and gas exploration companies in Europe. The Group has operations in Africa, Europe, South Asia and South America. Tullow is headquartered in London and employs nearly 2000 people world-wide. Current production is ~90,000 barrels of oil equivalent per day (boepd). The company drills tens of exploration, appraisal and development wells annually, included multi-well campaigns in Ghana, Uganda and Kenya, with high exploration success rates.
11:50

Rolando Gachter - E&P Business Area Manager - Independent Project Analysis Ltd

Great Expectations: A Story about FPSO Project Performance


Title: Manager, Exploration and Production from February 2005 to present

IPA Experience:
Joined IPA in January 1998

Senior Analyst - July 2001 - May 2004
Analyst - January 1998 - June 2001

Areas of Expertise:
Mr. Gächter has over twelve years of capital project benchmarking experience, specializing in energy and minerals extraction projects. His experience includes large-scale project system benchmarkings for major oil and natural gas producers. His experience also extends to reviews of over 100 major capital projects worldwide in the petroleum exploration and production and mining sectors covering over $5 billion in capital expenditures.

Professional Profile:
Before joining IPA, Mr. Gächter developed six years of experience in energy industry analysis for the federal offshore oil and natural gas program by analyzing oil and gas issues of supply, demand, and corporate viability as the staff specialist for the federal outer continental shelf information program.

Education:
MBA with concentration in Finance, Virginia Polytechnic Institute and State University
(Virginia Tech), Blacksburg, VA

BSc, Mining and Minerals Engineering, Virginia Tech, Blacksburg, VA

Professional Memberships:
Society for Mining, Metallurgy, and Exploration
Society for Petroleum Engineers, Manuscript Peer Reviewer

Publications:
Alaska Update: February 1990-1992. D. K. François and R. A. Gächter. 1992. Outer Continental Shelf (OCS) Information Report MMS 92-0053. 46 p.

Gulf of Mexico Update: August 1989-June 1992. R. A. Gächter. 1992. OCS Information Report MMS 92-0049. 29 p.

Gas Energy Review. Gulf of Mexico Update: August 1989-June 1992. R. A. Gächter. 1993. American Gas Association, Vol. 21, No. 3. P. 14.

Pacific Update: December 1989-January 1994. R. A. Gächter. 1994. OCS Information Report MMS 94-0039. 37 p.

Facts about Offshore Natural Gas. R. A. Gächter. 1994. OCS Report MMS 94-0069. 29 p.

Independent Project Analysis Ltd
IPA offers a wide range of products and services to benefit your company, including Individual Capital Project Services and Capital Project System Services. We also have a suite of products and services for Turnarounds. In addition, we have many tools that can be used to improve your company's Estimating, Planning, and Control. Organizations can also leverage our Research and we can provide Training of the capital project delivery process via the IPA Institute.
12:30

Multiple - - Panel Discussion

New Eyes' Panel Discussion - how should an exploration company tackle its first FPSO-based development? Click on '+' for details.

Talk Description.
Our four speakers will form a panel to discuss issues raised by our chairman, David Bamford, and to field questions from the audience:
Key issues are:
What are realistic expectations for time from discovery to first oil/gas?
What are realistic expectations of cost and build schedule for an FPSO?
Own versus Lease?
How best to work with partners?
Used for panel discussions

Panel Discussion
This is part of our agenda where Finding Petroleum has a panel discussion.
13:00 Raffle prize draw followed by Lunch & Refreshments

Sponsors of this event

Tanker Operator
Tanker Operator is the world's leading publication for the tanker industry and a sister publication of Finding Petroleum / Digital Energy Journal. Edited by Ian Cochran, who has 45 years experience as a maritime industry journalist

HSBC
Headquartered in London, HSBC is one of the largest banking and financial services organisations in the world. HSBC's international network comprises around 7,200 offices in over 80 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa.

Tullow Oil
Tullow Oil plc is one of the largest independent oil and gas exploration companies in Europe. The Group has operations in Africa, Europe, South Asia and South America. Tullow is headquartered in London and employs nearly 2000 people world-wide. Current production is ~90,000 barrels of oil equivalent per day (boepd). The company drills tens of exploration, appraisal and development wells annually, included multi-well campaigns in Ghana, Uganda and Kenya, with high exploration success rates.

New Eyes Exploration
New Eyes Exploration, founded by David Bamford, explores new ways to discover Oil and Gas.

Registered Delegates

Diane Rescorla
Senior Consultant
.
United Kingdom
Jorge Ruiz-Peinado
Estimator
ENI E&P
Italy
Martin Bruins
Head Business developments Floating Production
Petrofac
Danny Ghale
Business Development
1Derrick
United Kingdom
Sohabe Richyal
Reservoir Engineer
ERC Equipoise Ltd
United Kingdom
David Bamford

Petromall Ltd
Amul Gurung
Engineer
2H Offshore Engineering
United Kingdom
Adam Marmaras
Event Organiser
Finding Petroleum
United Kingdom
William Davie
Director
Precision Impulse
United Kingdom
Aoife O'Brien
Senior Engineer
2H Offshore Engineering
United Kingdom
Angus Miller
Energy Adviser
Foreign & Commonwealth Office (FCO)
United Kingdom
John Hother
MD
Proneta
United Kingdom
Michael Gravenstede
Engineer
2H Offshore Engineering Ltd
United Kingdom
Nikki Jones
MSc student
GeoExpro
United Kingdom
Josh King
Analyst
RAB Capital
United Kingdom
Tony Grindrod
Trustee
AAPG Europe
United Kingdom
Stuart Pope
Director
Hawth Project Management Ltd.
Robert Snashall
Consultant
RGSConsult
United Kingdom
Clive Kitson
Head of Front End
Aker Solutions
United Kingdom
Don Jameson
Director
Hedera Consulting Limited
United Kingdom
Robert Waterhouse
Director
Rosha Resources Ltd
United Kingdom
Tracey Hunt
Head of Underwriting, Growth Markets (Energy)
Allianz
United Kingdom
Norman Hempstead
Director
Hempstead Geophysical Svcs
United Kingdom
Tom Colbert
Director
Royal Bank of Scotland
United Kingdom
Chris Beech
Business Development Manager - Capital Projects
Amec Foster Wheeler
United Kingdom
Steve Brealey
Project Services Advisor
Hess
United Kingdom
Mark Jones
Business Development Manager
Saipem
United Kingdom
Ed Eze
Director
Anchorage Global Consulting
United Kingdom
David Phillips
Head of oil & gas research
HSBC
United Kingdom
Emma Wright
Principal Facilities Engineer
Senergy
United Kingdom
Navin Reddy
Managing Director
Artemis Risk Consulting
United Kingdom
Laura Taylor
Petroleum Consultant
Hydrogen
United Kingdom
Andrew Brown
Principal Development Engineer
Senergy
Yang Zhao
Analyst
Bank of China
United Kingdom
Dina Bayasanova
PhD candidate
ICOE
United Kingdom
Clarke Shepherd
Senior Project Services Engineer
Senergy Development Solutions
United Kingdom
adnan salahuddin
Head of Oil & Gas
Bank of China
United Kingdom
Evgenia Kukina
Sr Product Manager
IHS
United Kingdom
Antoine Darque
Project Engineer
Setanta Energy
United Kingdom
Nick Beattie
Director
BNP Paribas
United Kingdom
siddharth suri
Ships Characteristics Analyst
IHS Fairplay
United Kingdom
Robert Clews

SMBCE
United Kingdom
Dominic Tansley
Associate
BNP Paribas
United Kingdom
Kevin Phillips
Principle Basin Research Geologist
Ihs Markit
United Kingdom
Geoffrey Thompson
Head of Process
snc lavalin uk ltd
United Kingdom
Katie Rich
Solicitor
Bond Dickinson LLP
United Kingdom
Luis Merida

Imperial College
United Kingdom
ovie onomakpome
Wealth Manager
St James's Place Wealth Management
United Kingdom
Quentin Robinson
Associate
Bond Dickinson LLP
United Kingdom
William Arnstein
Oil & Gas analyst
Independent
United Kingdom
Jan Paul van Driel
Partner
StrategicFit
United Kingdom
David Dundas
Solicitor
Bond Pearce LLP
United Kingdom
Dapo Fakorede
Consultant
Independent
United Kingdom
Joseph Pape
Exploration Advisor
Stratochem Services
United Kingdom
Jonathan Waites
Senior Sales Manager
Cameron
United Kingdom
Rolando Gächter
E&P Business Area Manager
Independent Project Analysis Ltd
United Kingdom
Graham Sharland
Vice President
Subsea 7
United Kingdom
Steven Bowman
Senior Geoscientist
CGG
United Kingdom
Paul Main
Business Manager - Research
Infield Systems
United Kingdom
Frank Jackson
MD
Sustainable Energy Projects
United Kingdom
roderick archer
Geologist
consultant
United Kingdom
Christopher Touhey
Assistant Vice President
Liberty International Underwriters
United Kingdom
Benjamin Hodges
Offshore Energy Underwriter
SwissRe
Diwin Amarasinghe
Geophysical Specialist
Consultant
United Kingdom
Tim Foister
Assistant Underwriter
Liberty International Underwriters
United Kingdom
John Cohen
Owner
Tanker Shipping Consultancy Services
United Kingdom
Colin David
Business Development
Consultant
United Kingdom
Reine marie Musom fansi

LSC
United Kingdom
Martin Bett

TBC
United Kingdom
Dan Kunkle
Director
Count Geophysics
United Kingdom
David Murray
Senior Analyst
Mars Omega LLP
United Kingdom
Stephen Nicola
Upstream Sector Analyst
The EIC
United Kingdom
Julia Dolengo
Director
Delta Business Media
United Kingdom
Debbie Collier

Marsh Ltd
United Kingdom
Michelle Duckworth
Shipping Operations Manager
Tullow Oil Plc
Uruguay
David Mirzai
Analyst
Deutsche Bank
United Kingdom
Charles Speh
Managing Director
Milestone Exploration Limited
United Kingdom
Gilbert YEVI
Asset Manager
Tullow Oil Plc
Ghana
karl jeffery
Editor
Digital Energy Journal
United Kingdom
Martin Shaw
Managing Director
MOAMS Ltd
United Kingdom
Albert Beardow
Student
University of Cambridge
United Kingdom
Stephen Norman
Business Development Manager
DNV GL
United Kingdom
Harish Pillai
Vice President
Neo Energy
United Kingdom
James Grubham
Product Manager
Voith Turbo
United Kingdom
Nnamdi Anyadike
London office
Energy Correspondent
United Kingdom
Helen Turnell
Principal Consultant
NR Global Consulting Ltd
United Kingdom
Thajudeen Malik
Marine Engineer
Vroon Offshore Services
United Kingdom
Martin Blindheim
Managing Director
Energy Growth Partners Limited
United Kingdom
David Jessop
Consultant
OTM Consulting
United Kingdom
Max Peile
Consultant
Xodus Group
United Kingdom
Isabel Whitley
Director
Energy Risk Consultants Ltd
United Kingdom
Bill Neilson
Engineering Manager
Peritus International
United Kingdom
Yves SHAMA
Principal
Yves Shama Consultant
United Kingdom