Investing in Deepwater Fields

....more to come or is the game over? 0

Wednesday, September 24, 2014, London, The Geological Society

For the last 15 years - or longer if you include the Gulf of Mexico and Brazil - Deepwater prospects have been the target of much exploration spend and resulting discoveries the beneficiaries of even more development Capex, and as a result production from them now represents a significant slice of global non-Opec production.

Over this period we have learned a great deal about the optimal exploration for, development of, and production from such fields.

Might this knowledge guide what we do in the future, with a lot more production to come, or is this 'game' now over?

Have new Deep Water prospects become too difficult to find, way too expensive to drill, and to difficult to develop - in short, has this theme now run out of economic 'legs'?

For this half-day Forum, we invite insightful presentations on this topic.

Please contact me if you would like to share your knowledge.

David Bamford

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

Oswald Clint - Senior Analyst - Bernstein Research

Deep Water Production - propping up non-Opec supply


Dr Clint joined Sanford C. Bernstein in 2004 and was part of the Energy Team with Neil McMahon covering the Global Integrated Oil sector.

Currently he is the Senior Research Analyst covering the European E&P and Russian Oil & Gas sectors. The Bernstein Energy franchise has become well known due to both the provocative commentary on the commodities and oil stocks, as well as the innovative research that forms the core of their frequent publications. Previously, he worked as an accountant and consultant for KPMG covering energy, gas, and chemical sectors. Dr Clint received his PhD in Geophysics from University College London where he specialised in sub-surface rock physics and is also a Chartered Accountant.

Bernstein Research
Sanford C. Bernstein is widely recognized as Wall Street's premier sell-side research firm. Their research is sought out by leading investment managers around the world, and they are annually ranked at the very top of acknowledged arbiters. In independent surveys of major institutional clients, Bernstein's research is ranked #1 for overall quality, industry knowledge, most trusted, best detailed financial analysis, major company studies, most useful valuation frameworks, best original research, and most willing to challenge management. In Institutional Investor's 2008 annual client survey, the leading survey by which analysts in our industry are evaluated, 100% of our U.S. Analysts were recognized as among the best in their respective fields -- more than any other firm on Wall Street.
10:15

Ronald Doherty - Manager Field Developments - INTECSEA

Lessons learned from implementing Deep Water developments

Talk Description.
This presentation will provide general details of the field development experience we have together with our view on what worked well and also what (in hindsight) could be changed to improve the overall outcome.
Ron Doherty - A Chartered Engineer with over thirty years of experience gained in the offshore oil and gas industry in the UK and overseas. Currently holds the position of Manager Field Developments within INTECSEA UK. Career experience encompasses offshore and subsea operations and includes a range of activities such as the economic evaluation of field development concepts, field development studies, FEED design, detail design, prototype design/development, equipment procurement, integration testing, offshore installation and commissioning of equipment from FPSO’s, DSV’s and fixed platforms and the support of operating facilities.

INTECSEA
INTECSEA is one of the world's leading and most experienced deepwater engineering companies, specializing in floating systems, offshore pipelines, marine riser systems, subsea systems and Arctic development. From concept to decommissioning, our customers rely on us for inherent safety through world-class design, engineered reliability through technical integrity, and a solutions-driven approach for full lifecycle asset management.
10:50 Coffee & Tea

11:15

Chris Walker - Chief Geophysicist - Fairfield Nodal

Deepwater Seismic Nodes - Where Are We Now?

Talk Description.
The viability of deep-water autonomous 4C marine ocean bottom nodes OBN has been robustly established as the seismic solution of choice for obtaining high quality full azimuth images for producing fields in areas with complex overburdens (Smit et al, SEG 2008, Chou et al, SEG, 2010). Since its first use for the baseline 4D survey for the Atlantis field in the GoM in 1995/6 more than 35 surveys have been acquired in the Gulf of Mexico, North Sea and West Africa. Impressive 4D results – 6% NRMS – have been reported by Shell (Stopin et al, EAGE, 2011) and recently the technology has been used to monitor the performance of water injection wells, an application which may well have widespread further demand.

New clock technology has improved the operating lifetime of the nodes and this, coupled with the ability to control the nodes remotely, can provide a semi-permanent reservoir surveillance capability that is inherently more flexible and has lower costs than cable based permanent seismic reservoir monitoring systems.

Chris holds as BSC(Hons) First Class in Physics from the New University of Ulster and a PhD in Marine Geophysics from Durham University.

Chris's current role is with Fairfield Nodal, where he works as the Chief Geophysicist for Data Acquisition.

In addition to his company and industry responsibilities, Chris has authored numerous technical publications and presentations.

His technical interests cover a wide range of topics but his prime focus is on marine acquisition with particular emphasis on source design, survey planning and onboard geophysical QC, with a view to improving operational efficiency by bringing together acquisition and processing.

Fairfield Nodal
Tight spaces. Sensitive environments. Harsh conditions. Elusive hydrocarbons. We know what you're up against. For over 30 years, FairfieldNodal has developed, manufactured and put to the test exclusive nodal seismic data systems and technology that help clients around the globe streamline operations and achieve more definitive answers with less risk. On land and at sea.

While we're known for our vast library of non-exclusive data in the Gulf of Mexico, we've also become the preeminent pros in node technology as a result. Our proprietary ZNodal technology is behind everything we do, and we do a lot. Count on FairfieldNodal for products, services and people prepared to help you tackle any terrain and marine depth.
12:00

Petromall - Panel Discussion - - PetroMall Ltd

The End of the End of the Beginning?

Talk Description.
Our Panel will be:

  • Bala Nagarajan: Head of Commercial Negotitions team, BDM, Statoil
  • David Russell: until recently Technical Director for the OBO Projects Group in BP's Global Projects Organisation
  • Martyn Millwood Hargrave: CEO, Ikon Science

Our 3 distinguished contributors will bring their own insights to considering the following:

The discovery of Deep Water Fields has been the target o
f much exploration spend and even more development Capex, and as a result production from them now represents a significant slice of global non-Opec production.

But today it’s possible to take a gloomy view:

  1. Discoveries appear to be drying up, with several high profile dry holes in the South Atlantic for example: perhaps we have simply run out of prime geology?
  2. The cost of deep water exploration and appraisal wells has exponentiated: let’s face it, economics goes out of the window if an individual well costs north of $200m!!
  3. Development projects are oftentimes way over budget, or late, or don’t deliver the promised production, sometimes all three; under-appraisal of more complex reservoirs seems to be a significant contributor, perhaps connected with 2. above?
  4. FPSO-based deep water developments have almost no plateau; they rise strongly and then begin to decline almost as rapidly. Furthermore, most planning assumptions seem to hover around 30-35% Recovery Factors for Deep Water Fields, disappointingly low.

On the other hand, you could take a positive outlook:

  1. Exploration has so far simply plucked the “low hanging fruit”. In new provinces and old, more subtle traps await us and the subsurface technology to find them.
  2. Better sub-surface imaging will mean we need to drill less wells –fewer exploration dry holes and less appraisal wells.
  3. Extending the producing life of individual wells is simply a matter of ‘smarter’ intervention.
  4. Fields with more or less the same geology can achieve 60%+ recovery, for example Forties and Magnus Fields in the north Sea, when operating from fixed platforms. We can get there in Deep Water!
  5. Much better reservoir monitoring is a key to both 4. and 5. all driven by the 20+ years of experience we now have in Deep Water.

Hence, the question: Is the “Deep Water” era about to End, or are we simply entering into a new Phase?


PetroMall Ltd
Petromall is a unique oil and gas advisory service which prides itself on technical excellence in selected fields and supplementing business management and leadership; in the face of uncertainty.

We offer truthful, professional opinion and advice; no playback of what you already know, and no spin.

Petromall was founded by 4 senior industry and academic practitioners who consider the challenges faced by today's oil and gas environment are going to require herculean acts of leadership and technical skill in the high cost provinces of the world, in order to maintain an industry that is sustainable and even recognisable compared to recent history.

Similarly nations developing an oil and gas industry face related challenges as they seek to maximise the benefits of this new wealth-creating opportunity - in a responsible manner.

Global reach

Petromall actively participates in the facilitation and conduct of seminars worldwide, in conjunction with its associate partner Finding Petroleum.

Our presence reaches parts of the globe, such as: the UK, Malta, the USA, through partners in the Middle East, North Africa and Sub-Saharan Africa.

13:00 Raffle prize draw, followed by Lunch with refreshments

Sponsors of this event

RPS Energy
RPS Energy provides a range of technical, commercial and project management support services to the international energy industry, covering geoscience, engineering and HS&E, with offices around the world.

Bernstein Research
Sanford C. Bernstein is widely recognized as Wall Street's premier sell-side research firm. Their research is sought out by leading investment managers around the world, and they are annually ranked at the very top of acknowledged arbiters. In independent surveys of major institutional clients, Bernstein's research is ranked #1 for overall quality, industry knowledge, most trusted, best detailed financial analysis, major company studies, most useful valuation frameworks, best original research, and most willing to challenge management. In Institutional Investor's 2008 annual client survey, the leading survey by which analysts in our industry are evaluated, 100% of our U.S. Analysts were recognized as among the best in their respective fields -- more than any other firm on Wall Street.

RPS Energy
RPS Energy provides a range of technical, commercial and project management support services to the international energy industry, covering geoscience, engineering and HS&E, with offices around the world.

INTECSEA
INTECSEA is one of the world's leading and most experienced deepwater engineering companies, specializing in floating systems, offshore pipelines, marine riser systems, subsea systems and Arctic development. From concept to decommissioning, our customers rely on us for inherent safety through world-class design, engineered reliability through technical integrity, and a solutions-driven approach for full lifecycle asset management.

INTECSEA
INTECSEA is one of the world's leading and most experienced deepwater engineering companies, specializing in floating systems, offshore pipelines, marine riser systems, subsea systems and Arctic development. From concept to decommissioning, our customers rely on us for inherent safety through world-class design, engineered reliability through technical integrity, and a solutions-driven approach for full lifecycle asset management.

Getech
For over 25 years, we've been using our data and geoscience expertise to help the oil and mining industries locate the earth's natural resources. Whatever your requirements, our multidisciplinary team of geoscientists can help you make enlightened business decisions.

At Getech, we offer a range of services dedicated to helping you understand the geological risks and opportunities associated with locating natural resources - whether you're working on a global or regional scale.

Our eco-system offers a holistic view of how our core services interact, with Globe at the centre.

Registered Delegates

Stuart Amor
Analyst

United Kingdom
Natalie Cronshaw
Event Manager
Finding Petroleum
United Kingdom
Paul Compton
Director
PCCL
United Kingdom
Jasmine Ashley-Tagoe
Legal Adviser
.
United Kingdom
Mauro Fiorucci
Head of Oil & Gas
FourWinds Capital Management
United Kingdom
David Russell
Consultant
Petromall
Danny Ghale
Business Development
1Derrick
United Kingdom
Jivko Gadjourov
Director General
GBC
United Kingdom
soraya derdiri
private investor
PI
United Kingdom
Hugh Ebbutt
Director
A T Kearney
United Kingdom
Jim House
Director
GeoSeis Ltd
United Kingdom
Folarin Lajumoke
New Ventures Manager
Polarcus
United Kingdom
Ronald Doherty
Consulting Director
Advisian
United Kingdom
Alexandra Kenna
Managing Director
GEOSERVE Limited
United Kingdom
John Hother
MD
Proneta
United Kingdom
Rob Gill
Senior Advisor
Advisian
United Kingdom
Qudus Yahaya
Student
Greenwich School of Management
Daniel Buckingham
INTERNATIONAL FINANCE BROKER.
Pronto Business Funding
United Kingdom
Peter Jackson
Manager
Bain & Company
United Kingdom
Nasser Saku
student
GSM London
United Kingdom
Nigel Quinton
Consultant
QX Energy Limited
United Kingdom
Oswald Clint
Senior Analyst
Bernstein Research
United Kingdom
Norman Hempstead
Director
Hempstead Geophysical Svcs
United Kingdom
Josh King
Analyst
RAB Capital
United Kingdom
Heidi Hellmann
Head of Strategy
BG Group
United Kingdom
Henry Numa
CEO
Hnglobal Limited
United Kingdom
Christopher Walker
Owner
Red Hand Geophysics Ltd
United Kingdom
David Sendra
Associate Consultant
BlackRockQI
United Kingdom
Carl Penfold
Team Leader - Oil & Gas
Hydrogen Group
United Kingdom
David Fishman
Chief Economist
Robertson
United Kingdom
Torsten Glaeser
Global PSCM Category Lead - Land Acquisition & Data Processing
BP
United Kingdom
Alastair Reid
Consultant
IHS
United Kingdom
Robert Waterhouse
Director
Rosha Resources Ltd
United Kingdom
Heather Pratt
Geomarket Director Europe
CGG
United Kingdom
Kevin Phillips
Principle Basin Research Geologist
Ihs Markit
United Kingdom
Dawn Murton
Events Manager
RPS Energy
United Kingdom
Andrew Webb
Manager, Petroleum Reservoir and Economics
CGG
United Kingdom
Martyn Millwood Hargrave
CEO
Ikon Science Ltd
United Kingdom
David Coursey
Business Dev Manager
RPS Energy
United Kingdom
Sean Waddingham
Data Library
CGGVeritas
United Kingdom
Stephen Osinowo

Imaiseed
United Kingdom
Teng Ben

Sanford Bernstein
Chris Gumm
Business Development
CGX
United Kingdom
Jude Osimobi

Imperial College London
United Kingdom
Daniela Galeote
Analyst oil & gas
Santander
United Kingdom
Vladislav Grabovsky
Business Development
Consultant
United Kingdom
Aristoteles Vargas
Investor
Independent
Sanjiv Venkatasamy
Commercial Manager New Ventures
Sasol Upstream OIl & Gas
United Kingdom
Robin Storey
General Counsel and Company Secretary
consultant
United Kingdom
Luca Brutti
Senior Consultant
Infosys Consulting
United Kingdom
Oguz Gurbuz
Associate Engineering
Scotia Waterous
United Kingdom
Peter Farrington
Geophysicist
Consultant Geophysicist
United Kingdom
Richard Luff
Senior Vice President
INTECSEA
United Kingdom
Tom McCann
Associate
Simmons & Co Intl Ltd
Corneliu Cosovanu
Senior Geologist
CoreLab_ Integrated Reservoir Solutions-UK
United Kingdom
Richard Wilson
Operations Manager
JX Nippon
United Kingdom
Clive Charnock
VP Engineering
SNC Lavalin
United Kingdom
Ian Newth
Director
Count Geophysics
United Kingdom
Jacques Fischer
Junior RM
Lloyds Bank
United Kingdom
Shoaib Noormahomed
Vice President
Societe Generale
United Kingdom
Stuart Guy
Consultant
Cramond Marine Offshore Solutions Ltd
United Kingdom
David Murray
Senior Analyst
Mars Omega LLP
United Kingdom
Bala Nagarajan
Manager, Business Development
Statoil
United Kingdom
Netti Farkas
Manager
Deloitte
United Kingdom
James Cramond
Business Acquistion
McDermott
United Kingdom
Anne Hegarty
Exploration Intelligence - Analyst
Statoil UK Ltd
United Kingdom
Julia Dolengo
Director
Delta Business Media
United Kingdom
David Pilling
Head of Oil & Gas
Nedbank Capital
United Kingdom
Catriona McGill
Analyst
StrategicFit
David Mirzai
Analyst
Deutsche Bank
United Kingdom
Nick Grealy
Director
No Hot Air
United Kingdom
John Bridgeman
Research Analyst
The EIC
United Kingdom
Stephen Norman
Business Development Manager
DNV GL
United Kingdom
Ramesh Shukla
Shareholder of exploration companies
None
United Kingdom
Michaela Edwards
Consultant
Twenty Energy
United Kingdom
Brian Donnelly
Consultant Geophysicist
Donnelly
United Kingdom
Helen Turnell
Principal Consultant
NR Global Consulting Ltd
United Kingdom
Kim Fairweather
Consultant
Vision Project Services
United Kingdom
Howard Davies
Business Dev Manager
DownUnder GeoSolutions
United Kingdom
Mark Jones
Business Development Manager
ODE
United Kingdom
Andreas Fecht
Vice President, Western Europe
Voith Turbo Ltd
United Kingdom
Ali Zolalemin
Director
Emeres Ltd
United Kingdom
James Allen
Content Manager
OilVoice
United Kingdom
Robert Hayes
Subsea Support Manager
Wood
United Kingdom
Nnamdi Anyadike
London office
Energy Correspondent
United Kingdom
James Grubham
Account Manager
One Subsea
United Kingdom
Chris Phillips
General Manager
WorleyParsons
United Kingdom
Terry O'Donnell
Business Development Manager
EPI Group
United Kingdom
Adam Waterhouse
Director of Research
Opus Executive Partners
United Kingdom
Mike Thomas
Director
Wyvern Energy Ltd.
United Kingdom
Adam Marmaras
Event Organiser
Finding Petroleum
United Kingdom
Robert Parker
Consultant
Parker
United Kingdom