© 2012 Chevron

Building Subsea Capability in a

Major Operating Company

Paul S Jones

Subsea Manager

Marine Technology Society

Houston, August 2012.

© 2012 Chevron

Building Subsea Capability to deliver Chevron’s

Deepwater Assets.

Chevron’s Global Subsea Portfolio

Role of Technology

Role of People

Wrap Up & Key thoughts…….

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“Right skills, right place,

right time, ….working on

the right thing…..”

© 2012 Chevron

Chevron Global Subsea Presence One of the largest in the industry

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Production/ MCPs

Exploration

Opportunities

NOJV

© 2012 Chevron

Chevron’s Subsea Portfolio is Diverse and Growing:

20+ Major Capital Projects in queue

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© 2012 Chevron

Technology

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© 2012 Chevron

Technology plays a vital role

Projects Becoming More Complex / Technology Driven

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Project 15 KSI

Instrumented

pipeline

protection

(HIPPS)

Multiphase

Flowmeters

Subsea

Sampling

Chem. Inj

Distribution

Intelligent

Well

Completion

Subsea

BoostingPower

Direct Elec

Heating

Project A

Project B Y

Project C

Project D Y Y Y

Project E Y Y

Project F Y Y Y Y Y Y

Project G

Project H Y Y Y

Project J Y Y Y Y Y

Project K Y Y Y

Project L Y Y

Project M Y Y Y Y Y

Oil & Gas Assets

Deepwater > 1500m

Long offsets > 50km

Little/No infrastructure

EOR potential/requirement

New Asset Solutions

Expand the Envelope

© 2012 Chevron

Subsea Technologies: key part of overall DW Technology

Investment

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Ultra-Deepwater Developments

• 10,000’ WD

Long Distance Tiebacks

• 50+ Miles Oil

• 200+ Miles Gas

• Sea-floor boosting & processing

Host Facilities with Small Field Tie-ins

• 50-200 MMBOE

Facilities

• Hull/mooring design standardization

• Compact modular processing systems

Operations

• Intelligent wells and i-field

Subsalt Imaging

Drilling

Dual gradient drilling

Next generation drillships

Completions

Single-trip multi-zone frac pack

In-Well artificial lift

Rigless Well Intervention

© 2012 Chevron

Hydrocarbon / water separation

Solids management

Power distribution

Boosting & Gas

Compression

Produced Water

Reinjection

Riser, Umbilical, Flowline

Design & Integrity

Reliable Monitoring

& Control

Critical Elements for Long Distance Tieback

Technology Investment will be focused, collaborative

& leveraged

© 2012 Chevron

Long Distance Tieback Technologies Fishbones

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Multi-Phase Pump

Wet Gas

Compressor

Long Distance

Technologies

AC Power

DC Power

Gas / Liquid

Separation Downhole ESP

Gas / Liquid / Water

Separation

Subsea

Transformer

Single Phase Pump

Oil

Produced Water

Injection

Raw Water

Injection

Produced Water

Discharge to Sea

Stabilized Fluids

Low GOR

Stabilized Fluids

High GOR

Riser Base Gas Lift

Flow Conditioning

• Integrate and mature

technologies to deliver asset

solutions

• Manage as single program

“ Fully Autonomous, Flexible, Self

Diagnosing, Self Healing Facilities

for the full life cycle……”

© 2012 Chevron

Long Distance Tieback Technologies Fishbones

Low GOR Oil

System

Subsea

Transformer

Single Phase Pump

Oil

Stabilized Fluids

Low GOR

Flow Conditioning

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Big Gas

Systems

Gas / Liquid / Water

Separation

Produced Water

Injection

Produced Water

Discharge to Sea

Flow Conditioning DC Power

Wet Gas

Compressor

© 2012 Chevron

Technology Qualification Example Subsea Boosting & Separation Technology Plans to TDS 6

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Current goal

o Pursue seabed single / multiphase pump

technology for DW / HP / long tie back

o Advance In-Well pump technology (initiate

combination lift technology focus)

Mid term goal

o Gas liquid separation / water processing /

seabed injection

Long term goal

o Seafloor compression systems

© 2012 Chevron 12

Technology Qualification : Example gap analysis

0.0

1.0

2.0

3.0

4.0

5.0

Water Depth, ft x2000

Shut-in Pressure Rating, psi x3000

Motor Power Rating, MW

Throughput, BPD x50,000

Differential Pressure, psi x1000

Gas Volume Fraction, % x20

Subsea MPP Technology Gaps Field Proven or Deployment

Ready by 2013 Timeframe

Major Technology Gap

Shut-in Pressure Rating,

>10000 psi.

Motor Power Rating, >3.0 MW

Throughput, 250,000 bloepd

Differential Pressure, >3500 psi

Gas Volume Fraction, 70-

Water Depth. 10,000 ft

© 2012 Chevron

People

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© 2012 Chevron

People & Organizational Capability (OC)

4 Key OC Themes:

– Growth : Acquiring Engineers

– Accelerated Development : Transforming Engineers

– Org Model Optimization : Managing Engineering Work

– Leverage: Contractors, Standardization, Regional

Models

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“technology is great, but we

can’t deliver it without the

people…”

© 2012 Chevron

Acquiring Engineers: Global Hiring Program

Simple equation to solve: Go from 200 to 400+ in 4 years……

Hire, absorb, train & retain

Deliver the business and don’t change the culture

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Technology & Consulting

Operations

Current MCPs

Future MCPs

0

100

200

300

400

500

600

Hea

dco

un

t

© 2012 Chevron

Acquiring Engineers : Global Hiring Program

Simple equation to solve: how to go from 200 to 400 in 4 years…..

Hire, absorb, train & retain…….plan and execute

Deliver the business and don’t change the culture

Conclusion: it is not easy…….but we are making headway and will

continue to grow.

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© 2012 Chevron

Transforming Engineers

Accelerated Development

Subsea Graduate Program : structured curriculum plus 3 assignments

in Subsea function

Transform FE’s into SSE’s – Accelerated Development Program

Develop International Workforce SSE’s

Collaboration with major training groups

Utilize latest SOA Adult Learning Models : “Fun vs Grind”

Revamp Mentoring Program – value for Mentor and Mentee

Implement 2 career paths : Consulting/Technical & Systems/Projects

Designed by Subsea Engineers for Subsea Engineers

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© 2012 Chevron

Subsea Accelerated Development –

The needed skills to deliver our business

Critical Skills

Subsea

Systems

Subsea

Equipment

Subsea

Controls

Pipelines

Flexibles Umbilicals

Subsea

Integrity &

Reliability

Subsea

Operations

Technical

Project

Mgmt

Supporting Skills

Survey &

Positioning

Materials &

Corrosion

Flow

Assurance

Foundation Skills

Drilling

Completions

Reservoir

Engineering

Well

Intervention Process

Engineering

MetOcean

Geotechnical

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Assess selected candidates

Develop a customized training plan

Complete the Subsea Curriculum

On the job training

Subsea Engineers need

broader skill sets than initially

thought

© 2012 Chevron

Some Keys to Success……

Global Technology Investment : invest where the skills are.

Leverage GTC capabilities globally. Deliver cross time zone workflows

Deliver Asset Solutions not new technologies

Chevron Engineering Standards will ask more of suppliers: but will ensure the reliability & availability performance we need to successfully deliver our resource base.

Subsea infrastructure is the delivery vehicle for the reservoir: need to understand subsurface uncertainty and deliver the right system at the right time.

Invest in people and meet their needs for challenge, growth, and a subsea career.

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© 2012 Chevron

Subsea in Chevron : Summary

Subsea MCP are a significant part of Chevron growth strategy

Upcoming large subsea projects will need strong project management

skills and leadership with focus on improving on-time delivery

performance, aftermarket support and experienced support personnel.

Increased investment in R&D for subsea technologies over next 5

years

Chevron will continue to operate a Center of Excellence model for

Subsea – 3 hubs: Aberdeen, Perth, Houston.

Organizational Capability & Operational Excellence focus to create

business value: the right people in the right place, doing the right

things every time.

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