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)
Jubilee Field Development: Project & Production Performance – June 2013
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 Field Development: Project & Production Performance – June 2013 Slide 4
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
Phase‐1 Injectors 3
Field Phase‐1 Cum. Oil (MMstb) 370 22 MMstb/Well 41 MMstb/Well
Phase 1 Producers 9
Jubilee Field Development: Project & Production Performance – June 2013
Phase‐1 Producers 9
Phase‐1 Injectors 8
Slide 5
Jubilee Field Layout – FPSO and Subsea EquipmentJubilee Field Layout – FPSO and Subsea Equipment
FPSO
Flexible Flowlines
Manifolds
Subsea Trees
Jubilee Field Development: Project & Production Performance – June 2013 Slide 6
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
Jubilee Field Development: Project & Production Performance – June 2013
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
Jubilee Field Development: Project & Production Performance – June 2013
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
Jubilee Field Development: Project & Production Performance – June 2013 Slide 9
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 Field Development: Project & Production Performance – June 2013 Slide 10
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
Jubilee Field Development: Project & Production Performance – June 2013
‐ 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
Jubilee Field Development: Project & Production Performance – June 2013
Tether Pile 9 9Riser Bases 2 2Tether Pile 9 9Riser Bases 2 2
Slide 12
Offloading ProcessOffloading Process
Jubilee Field Development: Project & Production Performance – June 2013 Slide 13
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
Jubilee Field Development: Project & Production Performance – June 2013
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
Jubilee Field Development: Project & Production Performance – June 2013
• ~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
Jubilee Field Development: Project & Production Performance – June 2013 Slide 16
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
Jubilee Field Development: Project & Production Performance – June 2013 Slide 17
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
Jubilee Field Development: Project & Production Performance – June 2013 Slide 18
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%
Jubilee Field Development: Project & Production Performance – June 2013
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
Jubilee Field Development: Project & Production Performance – June 2013 Slide 20
• 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
Jubilee Field Development: Project & Production Performance – June 2013 Slide 21
Tullow Ghana LtdPlot No. 71
Off George Walker Bush HighwayNorth Dzorwulu
Accra, Ghana
Jubilee Field Development: Project & Production Performance – June 2013
Accra, GhanaTel: +233 (0) 302 742200Fax: +233 (0) 302 742300
Top Related