Example of Field Development Ppt

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Copyright of Shell UK Limited Shell U.K. Limited Presenter: David Jones Fram Subsurface Team Lead, Shell U.K. Limited Contributors Shell U.K. Limited: Samantha Large, Ahmed Helmi, Alan McQueen, Mensur Hodzic, Robert Cullen, Fola Sanwoolu, David Clutterbuck, Barry Meldrum, Bill Gray, Mark Robinson, Rob Jansen DEVEX 2012 Fram Field Development Plan UK Central North Sea

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Example of Field Development Ppt

Transcript of Example of Field Development Ppt

Page 1: Example of Field Development Ppt

Copyright of Shell UK Limited

Shell U.K. Limited

Presenter: David Jones Fram Subsurface Team Lead, Shell U.K. Limited

Contributors Shell U.K. Limited: Samantha Large, Ahmed Helmi, Alan McQueen, Mensur Hodzic, Robert Cullen, Fola Sanwoolu, David Clutterbuck, Barry Meldrum, Bill Gray, Mark Robinson, Rob Jansen

DEVEX 2012

Fram Field Development Plan UK Central North Sea

Page 2: Example of Field Development Ppt

Copyright of Shell UK Limited

Definitions and Cautionary Note Reserves: Our use of the term “reserves” in this presentation means SEC proved oil and gas reserves and SEC proven mining reserves.

Resources: Our use of the term “resources” in this presentation includes quantities of oil and gas not yet classified as SEC proved oil and gas reserves or SEC proven mining reserves. Resources are consistent with the Society of Petroleum Engineers 2P and 2C definitions and includes Oil Sands.

Organic: Our use of the term Organic includes SEC proved oil and gas reserves and SEC proven mining reserves excluding changes resulting from acquisitions, divestments and year-end pricing impact.

Identified Items: This presentation refers to Identified Items which have been excluded from CCS earnings and EPS calculations. Please see page 4 of the Quarterly Results Announcement for a listing of those items.

To facilitate a better understanding of underlying business performance, the financial results are also presented on an estimated current cost of supplies (CCS) basis as applied for the Oil Products and Chemicals segment earnings. Earnings on an estimated current cost of supplies basis provides useful information concerning the effect of changes in the cost of supplies on Royal Dutch Shell’s results of operations and is a measure to manage the performance of the Oil Products and Chemicals segments but is not a measure of financial performance under IFRS.

This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell plc. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell plc to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. Also included as forward-looking statements in this presentation is our disclosure of reserves, proved oil and gas reserves, proven mining reserves, resources, and all future estimates of refining capacity, oil and gas production, capital investment and expenditure, cash from operations, dividends, share buybacks and investments. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Group’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market share and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from re-categorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2008 (available at www.shell.com/investor and www.sec.gov). These factors also should be considered by the reader. Each forward-looking statement speaks only as of the date of this presentation. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. There can be no assurance that dividend payments will match or exceed those set out in this presentation in the future, or that they will be made at all.

The term “Shell interest”is used for convenience to indicate the direct and/or indirect (for example, through our 34% shareholding in Woodside Petroleum Ltd.) ownership interest held by Shell in a venture, partnership or company, after exclusion of all third-party interest.

The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. We use certain terms in this presentation that SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 20-F, File No 1-32575, available on the SEC website www.sec.gov. You can also obtain these forms from the SEC by calling 1-800-SEC-0330.

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Overview

Fram location and overview

Exploration and appraisal history

Key subsurface uncertainties

Subsurface development concept

Well and completion design

Surface development concept

Project schedule

mbex9aa8
Highlight
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Fram Field Location - UK Central North Sea

Page 5: Example of Field Development Ppt

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Regional Geology - Structural and Depositional Setting

UK Central North Sea - Quad 29 Southwest part of Central Graben Northeast of Curlew Horst and west of Puffin Horst Penetrative salt diapir structure (Zechstein salt) Salt diapir above Late Jurassic footwall high Deep structure controlled by Mesozoic rifting

Palaeocene Forties Sandstone Member Basin-floor distal turbidite deposits ‘Sheet-like’ sands deposited in lobe sequences SW margin of main NW-SE Forties fan Distal and marginal location Further down depositional dip than analogues

Palaeocene isochron thickness map (Top Sele – Top Chalk)

Base Cretaceous unconformity surface from 3D seismic data

Fram

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Regional Geology - Stratigraphic Summary

Fram

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Fram Discovery Overview

Field Summary

UK Central North Sea

Oil rim with primary gas cap

HCIIP 390 MMboe (approx.)

P.012 Licence (Shell 28% Esso 72%)

P.1664 Licence (Shell 50% Esso 50%)

Palaeocene Forties Sandstone reservoir

Porosity 18-28%, Perm 0.1-100mD

Discovered in 1969 by 29/3-1 well

Appraised in 1999 with 29/3a-6 well

Appraised in 2009 with 29/3c-8, 8z wells

300 ft TVD thick oil rim (approx.)

>1500 ft TVD gas column (approx.)

Top Forties depth map 2010 (PSDMcorr)

29/3c

29/8a

29/4c

29/9c

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Fram Salt Diapir - 2007 PSDM Near-Stack Reflectivity Data TW

T (m

s)

West East

1700

2664

29/8a-4 29/3-1 29/9c-7

Top Forties time horizon

Salt diapir

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Forties Reservoir Geology - Facies Scheme Summary

~

1

m Thin Bedded sheet sands and siltstones (heterolithics) (HM)

<1ft thick sands interbedded with shales

Thick amalgamated sands 3 – 15 ft thick Well 29/3c-8

Top Forties

T75MFS

T70MFS

Ross Formation, County Clare, Ireland

Fan 3, Karoo, South Africa

Fan A Grootkloof, Karoo, South Africa

Amalgamated Sands (A)

Heterolithic Medium (HM)

Heterolithic Thin (HT)

Gra

in s

ize,

sor

ting

Perm

eabi

lity

Kv /

Kh

Satu

ratio

ns

Facies Facies A

Facies HM

Facies HT

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Forties Reservoir Thinning - Forties Isochore Thickness Map

29/3c

29/8a

29/3b

29/4c

29/9c

Salt

Forties fan margin

Thick and high N/G Forties to NW

Thinning of Forties and N/G reduction

to SE

29/8a-4 side lobe

Thin and low N/G Forties to SW of salt

diapir

Lista high

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Oil Rim Characterisation - 29/3c-8,8z Appraisal Wells 2009

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Key Subsurface Field Development Uncertainties

Reservoir properties

Thickness of T75 reservoir zone relative to fluid contacts.

N/G variation and rate of reduction towards Forties pinch-out.

Facies distribution and proportions in southern area of field.

Permeability of reservoir sands (for well kh/PI).

Reservoir architecture

Stratigraphic connectivity (lateral extent of sands and shales).

Structural connectivity (influence of faults on fluid flow/pressure depletion).

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Fram Proposed Development Well Locations

Block 29/3c

Block 29/8a

Block 29/9c

Block 29/4c

P3

P1

P1z P2z

P2 P4

G2

G4

PWRI

G3

P5

FWL

GOC

DCE

DCW

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DCW

DCE

G2

P5

P3

P1z

P2z

P4

P1 pilot

P2 pilot PWRI

G3

G4

Fram Proposed Development Well Locations (3D view)

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Development Well Planning/Placement - Horizontal Wells

Horizontal oil and gas producers - well design considerations and objectives

Pilot holes to constrain depth uncertainty and determine depth of OWC for horizontal well placement.

Cross-cut reservoir layers in T75 reservoir zone to maximise stratigraphic connectivity.

Wells to target upper and lower Amalgamated Sand (A) packages based on Vsh seismic inversion volumes.

4000ft AH well lengths to optimise well spacing/drainage and kh (due to layered reservoir and low perm).

Optimise stand-off from GOC and OWC to mitigate early gas and/or water breakthrough to wells.

P1_hor_oil_producer

29/3c-8z

29/3c-8

GOC

Top Forties Top Sele

Top Lista Well designed to cross cut stratigraphy from Top Forties to T75MFS

GOC

29/3c-8z

29/3c-8

Top Forties

Top Sele

T75MFS Top Lista

‘PROMISE’ seismic inversion P50 Vsh volume in Petrel Facies model in Petrel (base case)

P1_hor_oil_producer

T75MFS

Well targeting both lower and upper amalgamated sands

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Fram Well Concept Design - 4000 ft AH Horizontal Wells

Ocean Guardian drilling rig

Well Concept Design Summary

Conventional CNS ‘5 string’ casing design 13 5/8” intermediate casing shoe at 7000ft MD Batch drilling of top hole and intermediate sections Water based mud system to be used in 17 ½” hole 9 5/8” production casing set in Forties reservoir 4,000 ft AH Forties reservoir sections in 8 ½” hole Ocean Guardian semi-sub drilling rig Expected drilling start date July 2012 Wells to be cleaned-up to rig prior to suspension

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Fram Well Completion Design

Well Completion Concept

Wire wrapped screens with swellable packers.

5 ½” 13Cr sand screens with 316L wrap material and 200 micron slot size.

Swellable packers for water/gas shut-off capability.

Resman chemical tracers (oil and water sensitive).

Dual Permanent downhole pressure gauges (PDHG).

Gas lift completion for oil wells.

Through tubing access to reservoir for interventions (e.g PLTs).

Gas well completion as per oil well completion (without gas lift or chemical tracers and single PDHG).

Wire wrapped sand screens ‘Resman’ chemical tracers

Field: FRAM Well Type: Oil Producer Rig: Ocean Guardian

Block: First Completed: New Drill DFE: 85

Well No.: P1 z Workover Date: Water Depth: 321

Platform: N/A Annulus Fluid: Max dev: 90 ft ahbdf

Fluid Weight, pptf: Max dogleg: ft ahbdf

MD, ft TVD, ft Dev, o min ID" max OD" Drift" Length

406 406 0.0 4.75/1.875 18.600 18 3/4 Wellhead Housing

Vetco 5" x 2" Dual Tubing Hanger ( w ell head datum)

Top 35" Conductor Housing Seabed

1.640 2.726 1.781" RN Nipple Profile

1.700 2.628 Halliburton 2 3/8" WEG ( restricted ID) 13CR

4.892 6.033 4.767 5 1/2" 17# Vam Top HT 13CR L80 Tubing

2000 2000 0.0 4.625 8.220 SCSSV

2050 2050 0.0 10 3/4" x 9 5/8" Casing Crossover

TBA #VALUE! #N/A 4.597 7.069 SPM

3000 3000 0.0 20" Casing shoe

TBA #VALUE! #N/A 4.597 7.069 SPM

TBA #VALUE! #N/A 4.597 7.069 SPM

7350 6790 30.4 13 5/8" Casing Shoe

9380 8426 48.7 4.597 7.069 Dow nhole Dual Gauge Mandrel. Tubing & Annulus

Min distance betw een gauges is 300ft TVD

9880 8726 57.7 4.597 7.069 Dow nhole Pressure and Temperature Gauge

9940 8757 58.8 4.562 6.860 4.767 SSD

10000 8788 60.0 4.875 8.310 4.767 Hydrostatic Packer

10100 8837 61.9 4.892 6.000 4.767 Liner Hanger Packer (ZXP/Quantum/SC2R)

10102 8838 61.9 6.000 7.699 6.000 7", 32#, 13CR, Vam Top HT, ALT. 6" Drift

10242 8900 64.6 4.780 5.940 4.653 Mule shoe

10262 8909 65.0 7" x 5.5" X Over

5 1/2" 17# Vam Top HT 13CR L80 Tubing 1 joint

10312 8930 65.9

4.562 8.015 4.562 Fluid Loss Device (FIV/FS2)

10928 9120 78.8 9 5/8" Casing Shoe

4.892 8.100 4.767 Sw ellable Packers

4.892 6.190 4.767 5 1/2" 17lbs 13Cr L80 Wire Wrap Screens 200 Microns

15408 9150 90.0 Bull Nose Float Shoe

Prepared by: Checked by: Rev No.: 2 Date: 02-May-2012

Other InformationDescriptionSchematic

Barry Meldrum

Proposed Completion

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Fram Field Development Plan - Subsea layout

Subsea Design Summary 8 x subsea production trees – 5 oil and 3 gas. 4.4 km integrated flowline bundle. 2 x towhead production manifolds. Flexible risers from bundle midline structures to FPSO. 1 x subsea produced water re-injection (PWRI) tree. 2 km umbilical from PWRI tree to DCE towhead manifold. 3 km flexible flowline connecting the PWRI tree to the FPSO 18 km14” carbon steel gas export pipeline. Tie-in point to 20” export line at Curlew Deep Gas Diverter. Pipeline end manifold (PLEM) at the Deep Gas Diverter.

Schematic of a towhead production manifold Subsea tree ‘coccoon’ structure

Proposed subsea layout and pipeline routes

Subsea tree spacing around towhead manifold

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Fram Field Development Plan - FPSO and Subsea Facilities

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Fram Field Production Forecasts (base case)

0

2000

4000

6000

8000

10000

12000

14000

Oil

bo

pd

Year

Oil rate bopd

0

20

40

60

80

100

120

140

Gas

MM

scf/

d

Year

Gas rate MMscf/d

Gas production profile —5 oil production wells + 3 gas wells —Gas rate includes free + solution gas —Peak gas rates approx. 183

MMscf/d (monthly average)

Oil production profile —5 oil production wells + 3 gas wells —Oil rate includes crude + condensate —Peak oil rates approx. 18 kbopd

(monthly average) —Oil rate decline driven by GOR

development and water cut (gas cap expansion drive)

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Fram FPSO Development Project Schedule (Level 0)

FEED

FEED

DESIGN

PROCUREMENT

HULL

TOPSIDES

INTEGRATION & COMM.

BUNDLE - DESIGN, PROCURE & FABRICATE

2012 2013 2014

DE

CC

F

PS

O

SU

BS

EA

DCE P1664 DCW

SELECT

FEED

P1664 Commitment – 12/02/13 P.012 License Expiry – 17/12/14

First Oil

PIPELINE - DESIGN, PROCURE & FABRICATE

PIPELINE INSTALL

BUNDLE INSTALL

INTEGRATION & COMM.

SAIL

HU & C

RISER INSTALLATION

2011

WE

LL

S

Development

drilling start

Onstream

FPSO hook-up

FID

Subsea

installation

Page 22: Example of Field Development Ppt