Jubilee Field...

FPSOs – THE “GO TO” DEVELOPMENT TECHNOLOGY FOR DEEPWATER DISCOVERIES

Jubilee Field Development: Project & Production Performance

Dr Gilbert Yevi – Jubilee Asset Manager, Tullow Ghana Limited – June 2013

Jubilee Field Development: Project & Production Performance – June 2013

ContentContent

S iSection Page

Oil Industry History in Ghana 3

Th J bil Fi ld 4The Jubilee Field 4

Development Project 5

J bil T d 8Jubilee Today 8

Local Content & Infrastructure 16

S & C l i 22Summary & Conclusions 22

Jubilee Field Development: Project & Production Performance – June 2013 Slide 2

Ghana – a short oil & gas industry historyGhana – a short oil & gas industry history

1900+• early land wells find oil & gas shows only

1957 Ghana gains independence• 1970 ‐ Signal Oil discovered Saltpond Field offshore Ghana, still producing c.500 bopd via MOPU

1983 GNPC established as statutory body with E&P responsibilities• legal and fiscal framework for E&P activities

• following shallow water discoveries sub‐commercial

21st Century shift to deepwater • since 2000 ‐ Significant number of deepwater exploration wells have been drilled in Ghana by international oil companies

• June ‐ July 2007 ‐Mahogany‐1/Hyedua‐1 wells discovery g y / ythe Jubilee field

• 2008 to 2011 – discoveries at Odum, Teak, Tweneboa, Enyenra, Akassa + also Paradise (Hess), Sankofa + GyeNyame (Eni), Dzata (Lukoil)


y ( ), ( )

Slide 3

The Jubilee FieldThe Jubilee Field

Fi t j il di i Gh• First major oil discovery in Ghana

• 130km west southwest of Takoradi port

• Discovered in 2007

• 370+ million bbl oil (P50)

• 60km offshore

• Water depth 1,000 ‐ 1,700mp

• Unitised between two blocks


Jubilee Reservoir Development (5 ll d ill d & 3 l t d i 8 ll Ph 1A b fi ld d l t j t i th t t )(5 more wells drilled & 3 completed in an 8 wells Phase 1A brown field development project since the start‐up)

MH4 Phase‐1 Cum. Oil (MMstb) 258 26 MMstb/Well 52 MMstb/Well J‐3, J‐5, J‐6, J‐7ST, J‐8

Phase‐1 Producers 5 J‐11WI, J‐12WI, J‐15WI, J‐16GI, J‐17GI

Phase‐1 Injectors 5

MH1 Phase 1 Cum Oil (MMstb) 112 16 MMstb/Well 28 MMstb/Well J 1 J 2 J 4ST J 9MH1 Phase‐1 Cum. Oil (MMstb) 112 16 MMstb/Well 28 MMstb/Well J‐1, J‐2, J‐4ST, J‐9

Phase‐1 Producers 4 J‐10WI, J‐13WI, J‐14WI


Field Phase‐1 Cum. Oil (MMstb) 370 22 MMstb/Well 41 MMstb/Well

Phase 1 Producers 9


Phase‐1 Producers 9


Slide 5

Jubilee Field Layout – FPSO and Subsea EquipmentJubilee Field Layout – FPSO and Subsea Equipment

FPSO

Flexible Flowlines

Manifolds

Subsea Trees


Jubilee Project Delivery: the record 40 monthJubilee Project Delivery: the record 40 month

FPSO arrived

Licences awarded

Firstdiscovery

IPT andOperatorformed

Phase 1 DevelopmentPlan approved

in Ghana

First Oil

2004/2006 2007 2008 2009 2010

Discovery to First Oil – 31/2 years

• Shared objectives with Government and close working with GNPC• Involvement of all partners in the team, and regular interactionU f h l f i l d i d• Use of proven technology, functional spec, and experienced contractors

• Early start of development work• Rapid decision making


p g

Slide 7

Jubilee Field – Phase 1 schedule benchmarkingJubilee Field – Phase 1 schedule benchmarking

Jubilee Phase 1 scheme

La Ceiba

Zafiro

Kuito

Triton Energy

Exxon Mobil

Chevron

Early Production Systems/Phased Development

Baobab

Chinguetti

Laminaria

CNR

Woodside

Woodside

l

Full Field Development/Conventional Approaches

Girassol

Okume

Xikomba

Bonga

Total

Hess

Exxon Mobil

Shell Di t A dBonga

Anasuria

Jasmim

Kizomba A

Shell

Total

Exxon Mobil

Discovery to Award Appraisal & Develop

Execute (Award to 1st Oil)

Kizomba B

BBLT‐Blk 14

Auger TLP

Chevron

Exxon Mobil

Shell


0 1 2 3 4 5 6 7 8 9 10 11Discovery to First Oil (years)

Slide 8

Jubilee Project: Organization Set‐up for Record DeliveryJubilee Project: Organization Set‐up for Record Delivery

Making best useof available skills

TullowUnit Operator

KosmosTechnical Operator Anadarko

Liaison with Leading Integrated Providing key staff• Liaison with Government

• Well engineering• Manage production

• Leading Integrated Project Team (IPT)

• Planning and managing d l

• Providing key staff to Operator andIPT during development phase

Joint Leadership TeamManagement and

operations development

Joint Leadership Team

Unit Operating Committee

communications

Overall strategy and controland control

Sub‐committeesTechnical, finance, contracts, gas, etc


Measurement of Project SuccessMeasurement of Project Success

“Classic” project execution KPI’sClassic project execution KPI s • EHS – all targets delivered in project & later operations• Cost• Schedule• Quality; reliability, uptime

Key high profile extra items in GhanaKey high profile extra items in Ghana• Organisation build• Environmental assessments & safeguards• Fisheries impact• Regulation establishment• Stakeholder engagement and shared benefitStakeholder engagement and shared benefit• Local employment, content & capacity• Gas industry initiation


Jubilee FPSOJubilee FPSO

• FPSO named the Kwame Nkrumah after the first President of GhanaPresident of Ghana

• Converted from an existing Very Large Crude Carrier (VLCC) tanker by MODEC in the Jurongshipyard, Singapore

• Lease with purchase options (FPSO purchased in December 2012)

• MODEC provide O&M services

• Conversion work commenced in November 2008 and FPSO arrived in Ghanaian waters June 2010. Start‐up November 2010

FPSO design scope:FPSO design scope:‐ 1.65 million barrel liquids storage capacity‐ 120,000 bopd production capacity‐ 230,000 bwpd water injection capacity, p j p y‐ 160 mmscfd gas injection/export capacity‐ 65m wide and 330m long‐ 17 modules weigh more than 12,500 tonnes


‐ 9 anchor legs in c.1,300m of water

Slide 11

Subsea InfrastructureSubsea Infrastructure

FPSO Kwame Nkrumah on the Jubilee FieldSubsea Equipment Quantity

Installed TotalRiser Pull-inU bili l

1114

1114 Mil

Subsea Equipment QuantityInstalled Total

Riser Pull-inU bili l

1114

1114 MilUmbilicals 14 14 Miles

Rigid Jumpers 41 41Rigid Flowlines 29 29 MilesTrees 16 16Electrical Flying Leads 112 112Steel Flying Leads 46 46Manifolds 8 8

Umbilicals 14 14 MilesRigid Jumpers 41 41Rigid Flowlines 29 29 MilesTrees 16 16Electrical Flying Leads 112 112Steel Flying Leads 46 46Manifolds 8 8


Tether Pile 9 9Riser Bases 2 2Tether Pile 9 9Riser Bases 2 2

Slide 12

Offloading ProcessOffloading Process


Jubilee Phase 1 Well Construction

• Prior to 2008 Tullow had never drilled a deepwater wellassembled an experienced team and delivered!

Eirik Raude• 12 drill‐wells• 1 DST

Jubilee Phase 1 Well Construction

‐ assembled an experienced team and delivered!

• Drilled 14 new wells and re‐used 3 E&A wells‐ 47 km of new wellbore drilled

• 1 DST• 1 inj test• 1 gauge install

to do all completions+ 1 further drill‐well

• 3 year contract

Blackford Dolphin

• Drilling & completions make up ~50% of grossproject capex‐ drill‐ex ~$700 million‐ completions ~$900 million

• Vertical / deviated wells up to 85 degrees

• Frac pack completions planned for all producers& injectors

Cased Hole Frac Pack

Prod Packer

Tubing

Cased & Perforated with high set screen

Atwood Hunter

& injectors‐ some stacked frac‐packs now needed due to large height of sand

• Eirik Raude drilling operation benchmarked

Fluid LossValve

Prod Packer

Gravel Pack Packer

Laminated

independently to top quartile deepwater drilling performance in West Africa‐ experienced team built‐ excellent Contractor‐Operator working 9 5/8” Casing

Sump Packer

Laminated ZoneSand + Shale


p g‐ a major completions challenge in a new country

1 drill‐well

9 5/8 Casing

12 ¼” Holethrough Reservoir

Slide 14

Long Term Approach: Building Infrastructure Footprint for the Project

Accra HQ officeBuild‐lease

Long Term Approach: Building Infrastructure Footprint for the Project

Accra‐Takoradi air‐bridge~240km

Takoradi Supply + port base + office Dedicated new helo operation

FPSO

Tanker handling

Rig 1 Rig 2

• 240 direct employees; ~85% Ghanaian• Invested $40million+ so far

- in office, shorebase and logistics infrastructure

Marine FleetAHT’s & PSV’sV Subsea ROV ContractsMPV

- all construction & lease by Ghanaian companies

• Currently managing ~800 person in‐country; 2‐3 drilling rigs + FPSO

• ~15,000 pax in 2010 by fixed wing Accra‐Takoradi – 2 planes12 000 i 2010 b h l ff h 3 4 h l


• ~12,000 pax in 2010 by helo to offshore – 3‐4 helos

Slide 15

Before After

Shared Prosperity: Easing Entry by Local CompaniesShared Prosperity: Easing Entry by Local Companies

Fuel Oil and Gas Supply Chain Services

Indirect Services • Readily available on the local market • Offered to other industries

Fuel

Emergency Services

CustomClearance IT

Hotel/Accom.

Communications

Camps/Accom.

Environmental Services

• Less difficult for existing providers to meet standards and specification

• Can be very highly capital intensive

Direct Services

Medical

PersonnelTransport

Services

HR

Catering

FPSO Wellhead

Field Construction

Marine S

ROV Services

ConstructionMaterials

Platform Support Vessels

Rig Survey

Rotary Wing

Direct Services • Services not easily found on the local market• Requires medium to long term for one to develop skills and expertise to provide them

• Develop skills and expertise for these services through partnershipSecurity

Transport

T l

OfficeSupplies

RigHire FEED

SeismicServices

WellServices

SurveyServices

InfieldServices

Tank Cleaning Services

Lifting Equipments

Mud/Cuttings Marine Gas

Oil Supply

through partnership • Highly capital intensive

Specialists Services• Complex services required in offshore operations

y

CraneHire

Telecoms

UnskilledLabour

GeneralTrades

Tangibles

Int. Freight Services

Mooring Equip.

InspectionsInfield

Transport

Production Chemicals

EHS Monitoring Studies

Subsea Infrastructure

p q p• Require huge investment with very difficult ease of entry

• Sources of competitive advantage for existing service providers last longer

• Skills and expertise development for services can Waste Management

FreightForwarding

FacilitiesManagement

Trainingg

Fixed Wing Services


be attained in the long term

Local Content Success in NumbersLocal Content Success in Numbers

YearContract/PO

Number of Awards to Ghanaian Companies

Contract/POPercentage Awarded to Ghanaian Companies

Percentage Higher Value Contract/PO Awards (>$0.25 million) to Ghanaian

Companies

Value of awards to Ghanaian Companies (spend also rolls to following years ($ millions)

2009 618 ~50 25 642009 618 ~50 25 64

2010 1035 ~80 ~40 194

2011 1223 ~90 ~50 53

2012 1195 ~74 69 69


2012 1195 ~74 69 69

Jubilee Phase 1 Project Cost Performance

Sanction 2008 ‐ $3.15 billion

Jubilee Phase 1 Project Cost Performance

FPSO turret lift,(1) FPSO leased(2) I l d Feb 2010, SingaporeFacilities (1) $1.43bn

Wells $1.50bn

Pre‐Ops (2) $0.22bn

(2) Includes G&A/organisationbuild, productionprep, infrastructure

(3) Note; original completion budget contained no

Out‐turn forecast ‐ $3.3 billion• facilities forecast ~$100 million under budget. Used only ~1/2 of contingency

contingency

y g y• wells forecast ~$250 million over budget

− increased scope ~$125 million− one completion re‐work due to a mechanical failure ~$125 million

Measure Goal Results

TRIR <= 2.5 1.52 (11.2 MM Mhr)

LTIR <= 0 6 0 45 (5 LT injuries)LTIR <= 0.6 0.45 (5 LT injuries)

Significant Incidents Zero Level 3 0 Actual7 Potential

Timely Completion of No material schedule O ti t t


Manifold (FMC) installation y p

Key HSE Activities impacts On‐time startup

Organization Build ‐ OutcomeOrganization Build ‐ Outcome

• Tullow Ghana has a diverse workforce of 395 ; employees & contractors. ALL disciplines covered. 1,200 linked ffcontractor staff.

• 3 deepwater rigs operated + 1 FPSO + shorebase + new deepwater TEN project now approved for execution

Annual Headcount (year end)Annual Headcount (year end)Headcount = total people including rotationalPermanent staff + direct contractor No.2007 9

2008 75

2009 209

2010 336

2011 383

2012 395

Permanent Employees (y/e 2012) %Expatriates 11%

Gh i 89%Ghanaians 89%

Management Team (y/e 2012) %Expatriates 35%


Ghanaians 65%

Slide 19

Summary & ConclusionsSummary & Conclusions

• Jubilee is one the most successful deepwater project in the World‐ Unique project team and management set‐up

‐ Record 40 months from discovery to 1st oil

‐ Project executed on budget with excellent safety Ghana Gas j g yperformance

‐ Outstanding performance post start‐up: 98+% uptime, production capacity > than 120 kbopd design, excellentsafety records

M h i l d i tit ti l i f t t

Ghana Gas

• Pipeline system for completion in 2013

• Many physical and institutional infrastructure development:‐ Ports, roads, training centers, logistics base, etc…

• Strong local content and shared prosperity policies‐ 85+% local employees in TGL

‐ Award of many contracts to local companies

‐ Ghana GDP growth of 14%

Jubilee

• 112,000 bbls/day• 67 Million bblsproduced98% ti Ghana GDP growth of 14%

• Continued growth of Tullow activities in Ghana (TEN PoD approved on 30th May 2013 – another multi billion dollars FPSO project)TEN

T ll ’ 2 d j t i Gh

• 98% + uptime• 779 days LTI free operation

• ISO 14001 Certification

• Phase 1a completed• Full field plan


• Tullow’s 2nd project in Ghana• Development Plan Approved

• Full field plan submitted

Sunset Day 1 – November 28th 2010 Jubilee FieldSunset, Day 1 – November 28 2010, Jubilee Field


Tullow Ghana LtdPlot No. 71

Off George Walker Bush HighwayNorth Dzorwulu

Accra, Ghana


Accra, GhanaTel: +233 (0) 302 742200Fax: +233 (0) 302 742300

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