Oil & Gas UK Share Fairoilandgasuksharefair.co.uk/wp-content/uploads/2016/11/Nexen-1.pdf · Certain...
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Oil & Gas UK Share Fair Nexen Petroleum UK Limited November 2017
Transcript of Oil & Gas UK Share Fairoilandgasuksharefair.co.uk/wp-content/uploads/2016/11/Nexen-1.pdf · Certain...
Oil & Gas UK Share Fair Nexen Petroleum UK Limited November 2017
Oil & Gas UK Share Fair 2017 Safety and Fire Information
Certain statements in this presentation constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995, including statements regarding expected future events, business prospects or financial results. The words "expect", "anticipate", "continue", "estimate", "objective", "ongoing", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify such forward-looking statements.
These statements are based on assumptions and analyses made by Nexen Energy ULC (“Nexen”), a wholly owned subsidiary of CNOOC Limited (the “Company”, NYSE: CEO, SEHK: 00883, TSX: CNU) in light of its or their experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Nexen or the Company believes reasonable under the circumstances. However, whether actual results and developments will meet Nexen’s or the Company’s expectations and predictions depends on a number of risks and uncertainties which could cause the actual results, performance and financial conditions to differ materially from the Company’s expectations, including those associated with fluctuations in crude oil and natural gas prices, the exploration or development activities, the capital expenditure requirements, the business strategy, whether the transactions entered into by Nexen or the Company can be completed on schedule pursuant to its timetable or at all, the highly competitive nature of the oil and natural gas industries, the foreign operations, environmental liabilities and compliance requirements, and economic and political conditions in the People’s Republic of China and overseas.
For a description of these and other risks and uncertainties, please see the documents the Company has filed from time to time with the United States Securities and Exchange Commission, including 2016 Annual Report on Form 20-F filed on April 21, 2017.
Oil & Gas UK Share Fair 2017 Forward Looking Statements
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Oil & Gas UK Share Fair 2017 Agenda
No Agenda Item
1 CNOOC International Operations
2 Nexen Operations Overview
3 Business & Supply Chain Themes
4 Nexen Operations Contracts
5 Nexen Project Contracts
6 Nexen Drilling Contracts
7 Nexen Exploration & Appraisal
8 Contracts & Procurement in Nexen
9 Questions
Oil & Gas UK Share Fair 2017 CNOOC International Operations
Oil & Gas UK Share Fair 2017 CNOOC International Operations
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Oil & Gas UK Share Fair 2017 Nexen Operations Overview
Oil & Gas UK Share Fair 2017 Existing Assets
UK Operated Assets
Buzzard
Golden Eagle STaR (Scott, Telford & Rochelle)
UK’s highest producing field –
largest discovery since 1990
Located about 57 km north-
east of Aberdeen
First oil 2007
Largest UK discovery since
Buzzard
Located about 70 km north-east of
Aberdeen
First oil October 2014
First oil 1993, additional
production from Telford and
Rochelle through tiebacks
Located around 188 km north-
east of Aberdeen
Oil & Gas UK Share Fair 2017 Aspiration
Oil & Gas UK Share Fair 2017 Culture
Oil & Gas UK Share Fair 2017 Key Results
Oil & Gas UK Share Fair 2017 Business & Supply Chain Themes
Maximising value of our existing portfolio &
extending field life
Focused business unit organisation
Production efficiency
Sustainable cost management
Near field exploitation & incremental development
Sustaining safety performance
Creating new growth opportunities
CNS
Shetland Basin
Ireland
Africa
Seeking innovation to change established
ways of working with our contractors
Working collaboratively with the supply chain to
explore alternative contracting approaches
Longer term contracts based on a joint
commitment to continuous performance
improvement
Fully committed to MER from UKCS
Oil & Gas UK Share Fair 2017 Focus
Oil & Gas UK Share Fair 2017 Operations Contracts
Majority of operations / maintenance contracts under long term arrangements
beyond 2018
Tendering is not the default position as each service is reviewed on its own
merits based on internal drivers, goals and objectives
Innovations available from the Supply Chain, e.g. use of mobile technology, non-
intrusive inspection, optimised repair & maintenance practices aligned to asset
lifespan can be reasons for a strategy review
Working collaboratively with our contractors to improve efficiency in work
execution
Engagement with key contractors to develop KPIs aligned to Nexen’s key results
Oil & Gas UK Share Fair 2017 Operations Contracts
Oil & Gas UK Share Fair 2017 Project Contracts
Oil & Gas UK Share Fair 2017 Project Contracts
Buzzard Phase II
Currently within Define
Selected concept is a subsea tie-back development approximately 5km NE of Buzzard consisting
of an 11 slot combined production/water injection manifold
Topsides and subsea solutions have been progressed through Front End Engineering Design
Tenders received for Trees & Controls under evaluation (On Hold)
Tenders to be issued for Subsea EPIC, Fabrication, and Transport and Installation.
The Define to Execute stage gate is scheduled for Q2 2018
Buzzard Complex Buzzard showing proposed subsea tie-back
Oil & Gas UK Share Fair 2017 Project Contracts
Scott Water Injection Pipelines & Umbilicals
Pipeline & umbilical replacement project
Scott platform to east, south and west WI manifold locations
Approximately 10km of replacement pipeline & umbilicals
Oil & Gas UK Share Fair 2017 Project Contracts
Buzzard Complex Buzzard showing proposed subsea tie-back
Name Discovery/
Prospect/ Lead
Ravel Discovery
Dunkeld Prospect
Rossini Prospect
Bugle South Discovery
Cornet Prospect
Daffodil Lead
Potential Telford Tie Backs
Intelligent pigging
Obsolescence and
sustainability
Infrastructure life extension
Oil & Gas UK Share Fair 2017 Project Challenges
Oil & Gas UK Share Fair 2017 Drilling Contracts
Oil & Gas UK Share Fair 2017 Drilling Contracts
Scott
Currently on a drilling break for the
planned platform shutdown, will return to
well ST37.
Future infield drilling programme
envisaged.
Semi Subs
ITT being evaluated for infill subsea wells on Golden Eagle
Contract nearing award Ettrick and Blackbird P&A work in Central North Sea
ITT to be issued for Buzzard Phase II
Jack Ups
Contract nearing award for provision of a HDJU to drill over the Buzzard platform in 2018
ITT to be issued for provision of a HDJU to drill an HP/HT exploration well at Glengorm in
2018
Oil & Gas UK Share Fair 2017 Drilling Rig Contracts
Tenders for drilling services underway/planned as follows:
Q4 2017
Conductor pipe and associated services
Wireline (open hole)/cased hole services
Riser inspection and repair
Q1 2018
Log witnessing QA/QC services
Oil & Gas UK Share Fair 2017 Drilling Services Contracts
Oil & Gas UK Share Fair 2017 Exploration & Appraisal
Oil & Gas UK Share Fair 2017 Exploration & Appraisal
UKCS
Maturation of various captured acreage prospects West of Shetland & in Central North Sea
held acreage
Ireland
Exploration well planned for summer 2019 (subject to approvals)
Other Regions
UK organisation supporting wider Nexen exploration plans in West Africa
Oil & Gas UK Share Fair 2017 Ireland Exploration
License LO 16/7 Porcupine Basin
awarded following 2015 Atlantic
Margin Licensing Round
Geological assessment complete and
“Iolar” prospect deemed drill worthy
Approximately 215km offshore in
2000m water depth
Exploration well planned for summer
2019
Well site geophysical survey
concluded
Anticipated that a drillship will be used
for drilling (predicted duration 90-120
days)
Other contracts include Logistics &
Shore Base, Aviation, PSV and ERRV
Services
Oil & Gas UK Share Fair 2017 Contracts & Procurement in Nexen
We seek maximum value from all of our supply chain relationships
Value is assessed in considering safety, innovation, collaboration, performance &
price
Preference for stable long term contracts, subject to measurable year-on-year
performance improvement
Joint commitment to an open, collaborative approach to contract management &
to relevant contract KPI’s
Contractor return should be linked to overall Nexen business performance
wherever possible
Business integrity is critical to us and we expect our contractors and their
personnel to support our Cultural Beliefs at all times
Joint commitment to the Supply Chain Code of Practice
Oil & Gas UK Share Fair 2017 Our expectations of our Contractors
Oil & Gas UK Share Fair 2017 Contacts & Future Contracts
Operations & Maintenance
Hose and Small Bore Tubing
Management Services Q4 2017 Ian Anderson 01224 371406 [email protected]
Chemical Management Services Q4 2017 Norman Milton 01224 371512 [email protected]
Subsurface
Provision of Geophysical, Geological
Services and Wellsite Operations Q4 2017 Maria Louca 01895 555438 [email protected]
Oil & Gas UK Share Fair 2017 Contacts & Future Contracts
Drilling & Completions
Provision and Operation of a Semi-
Submersible Drilling Unit (Buzzard) Q4 2017 Lynne Bremner 01224 371447 [email protected]
Provision and Operation of a HDJU Drilling
Unit (Glengorm) Q4 2017
Angus
Greenhorn 01224 371481 [email protected]
Provision of Cased Hole Services Q4 2017 David Main 01224 371345 [email protected]
Provision of Wireline (Open Hole) Services Q4 2017 David Main 01224 371345 [email protected]
Provision of Conductor Pipe and
Associated Services Q4 2017
Angus
Greenhorn 01224 371481 [email protected]
Provision of Riser Inspection & Repair
Services Q4 2017 David Main 01224 371345 [email protected]
Log witnessing QA/QC services Q1 2018 David Main 01224 371345 [email protected]
Oil & Gas UK Share Fair 2017 Contacts & Future Contracts
Logistics
Provision of ERRV (12 month campaign,
to commence March 2018) Q1 2018 Elaine Skene 01224 371162 [email protected]
Provision of ERRV (two wells c. 180
days, to commence June 2018) Q1 2018 Elaine Skene 01224 371162 [email protected]
Provision of ERRV (single well c. 120
days, to commence May 2018) Q1 2018 Elaine Skene 01224 371162 [email protected]
Provision of a PSV (12 month campaign,
to commence March 2018) Q1 2018 Elaine Skene 01224 371162 [email protected]
Provision of PSV (two wells c. 180 days,
to commence June 2018) Q1 2018 Elaine Skene 01224 371162 [email protected]
Provision of PSV (single well c. 120
days, to commence May 2018) Q1 2018 Elaine Skene 01224 371162 [email protected]
Oil & Gas UK Share Fair 2017 Contacts & Future Contracts
Technical Services (Subsea Operations, Brownfield Projects & Engineering)
Scott Water Injection Pipelines
(Procurement/Installation) Q4 2017
Charlene
Leppard 01224 371130 [email protected]
Telford A+B line Flexible Installation and
reconfiguration
(Procurement/Installation)
Q3 2017 Jennifer Rennie 01224 371279 [email protected]
Buzzard Phase 2 – Subsea
Engineering, Procurement Installation
and Construction
Q4 2017
Euan Duncan 01224 371737 [email protected]
Buzzard Phase 2 – Provision of
Transport and Installation
Q3 2018
Euan Duncan 01224 371737 [email protected]
Specialist Engineering Consultancy
Contracts
Q4 2017
Jennifer Rennie 01224 371279
We are a user of FPAL, including FPAL Verify
FPAL is our starting point in identifying potential suppliers
We actively promote & welcome two-way FPAL feedback
We contribute to several Oil & Gas UK pan-industry initiatives
Supply Chain Forum
LOGIC Standard Contracts Work Group
Tender Efficiency Work Group
Cost Sustainability Work Group
PILOT Share Fair
We are committed to the Supply Chain Code of Practice
As a member of the code of practice review group
With a ‘gold’ compliance rating for the last three years
Oil & Gas UK Share Fair 2017 Industry Engagement
Oil & Gas UK Share Fair 2017 Contacts
Mark Masson 01224 371228 [email protected] Snr Contracts & Procurement
Manager
Lynne Bremner 01224 371447 [email protected]
Team Lead - Contracts
(Drilling & Completions /
Business Delivery)
Charlene Leppard 01224 371130 [email protected] Team Lead – Contracts (O&M /
Technical Services)
Nicky Jervis 01895 555438 [email protected]
Team Lead – Contracts
(Subsurface and Business
Services)
Calder Scott 01224 371121 [email protected] Procurement Team Lead
Oil & Gas UK Share Fair 2017 Further Information
www.nexencnoocltd.com
www.linkedin.com/company/nexen
www.youtube.com/nexen
www.flickr.com/photos/nexenenergy
www. twitter.com/nexenenergy
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invest in our communities and how we
are a responsible energy developer.
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we invest in and what makes us an
employer of choice.
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Oil & Gas UK Share Fair 2017
