Wednesday

Wednesday, 22 October • 0830 - 1000 hours • Astral Room 1

SESSION 18: SUBSEA FACILITIES TECHNOLOGY

Wednesday, 22 October • 0830 - 1000 hours • Astral Room 2

SESSION 19: INTEGRATED GAS OPPORTUNITIES - CASE STUDIES II

Wednesday, 22 October • 0830 - 1000 hours • Astral Room 3

SESSION 20: SAND FACE CHALLENGES

Wednesday, 22 October • 1030 - 1200 hours • Astral Room 1

PANEL SESSION: MAKING GAS MEGA PROJECTS WORK

In recent times, a number of gas mega-projects have struggled to get off the ground. However, there are now signs that this might be starting to change. What are the main blockers to these projects and what are some of the ways to overcome them?

With the risk profile and large capital costs, what is the impact on how much subsurface definition we need before we can commit to development? How are we going to find resources, in all senses of the word: people, materials, fabrication capacity? How do we ensure the development delivers the business’ objectives? Is new technology a saviour, or is the risk too great? Do we have the project management skills required to ensure success of these projects?

The world’s first fully offshore LNG facility, making floating LNG a reality, accessing resources in >1000 metres water depth – is this the key to unlock our vast stranded gas reserves? These reserves cannot be exploited by straightforward fast-track projects. If we are to be successful in developing these reservoirs, we have to make these mega-projects work.

This panel session addresses these issues with a range of speakers from different sectors of the industry, ensuring a lively debate on some of the key pre-requisites for delivering mega-projects in our region.

Session Chairpersons: Jeanette Roberts, Aker Solutions; Glen Johnson, Woodside Energy Ltd.

Panelists
Making Gas Mega Projects Work, Mike Shearman, Aker Solutions
Lucio Della Martina, Senior Vice President Pluto, Woodside Energy Ltd.
Bjorn Gundersen, Project Director, Aker Kvaerner Engineering and Technology (Invited)
Andrew Williams, Director, Australian Equities Research, Credit Suisse Equities (Australia) Limited
Rob Young, Regional Director-Asia Pacific, IPA Australia

Wednesday, 22 October • 1030 - 1200 hours • Astral Room 2

SESSION 21: CO2 - RISK AND STEWARDSHIP

Wednesday, 22 October • 1030 - 1200 hours • Astral Room 3

SESSION 22: RESERVOIR CHARACTERISATION AND FIELD MONITORING

Wednesday, 22 October • 1400 - 1530 hours • Astral Room 1

PANEL SESSION: HIGH PRICE, HIGH COST

High prices and high costs in the oil industry are particularly pertinent to the drilling and completion (D&C) sector since it is an integral part of all greenfield and brownfield developments and in some cases may contribute up to 50% of total project costs. The major contributors to D&C costs at the early stage of project evaluation are assumptions of rig rate/spread rate and the number of days to D&C the well. The latter can be produced with a reasonable degree of certainty from exploration and appraisal offset wells, whereas rig and spread rates can be sensitive and volatile estimates. Nowadays, in a constantly changing, highly demanding world, we suggest that oil prices influence rig and service costs via rig utilization and service availability. These key indicators together provide a broad, yet useful, guide to the activity in the offshore drilling industry. Of more interest to us in our examination is the relationship between these indicators, especially the value of oil price as a leading indicator for rig utilization and consequently day rates.

To be able to examine relationship between oil price and rig utilization/rig costs we have a look at NYMEX statistics on these two trends:

Oil Price
Starting from 1996, over that nearly twelve-year period, crude prices have seen some large fluctuations, but in general they have trended upwards, particularly over the last six years.

Offshore Rig Utilization
A key question in this examination is how closely (if at all) is offshore rig utilization tied to crude oil prices. After looking at the data and comparing trends for oil prices and utilization, it is quite clear that changes in oil price do help to drive changes in utilization.

In terms of key observations to take away from this analysis, we would like to highlight these points for discussion:

• In general, changes in offshore rig utilization levels tend to trail changes in oil prices by six to twelve months.
• The market reacts more severely to downturns in oil prices than upturns, with utilization levels dropping faster than they climb.
• However, the market reacts more quickly to upturns in oil prices, with utilization levels typically beginning to climb just six to eight months after a low.
• Rising oil prices will drive utilization up only to a certain point (the 85% to 90% range), after which further increases in oil price are unable to drive increases in utilization.
• A high day rate might be interpreted as a tool to regulate utilization levels in a high oil price environment (up to 90% utilization).

Session Chairpersons: Gordon Moseby, Beach Petroleum; Lala Agazade, BP; Calvin Holt, Keep Drilling Pte. Ltd.

Panelists:
High Cost High Price, Mrinal Vohra, Weatherford Solutions
Steve Balint, Floating Systems Engineering Manager, Sabah Shell Petroleum Co. Ltd.
Choo Chiau Beng, Chief Executive Officer, Keppel Offshore & Marine Ltd.
Alistair Geddes, Vice President, Asia Pacific, Weatherford Solutions Sdn. Bhd.
Rising LNG, Richard Quin, Senior Analyst – Australasia, Energy Research, Wood Mackenzie

Wednesday, 22 October • 1400 - 1530 hours • Astral Room 2

SESSION 23: SURFACE AND SUBSURFACE INTEGRATION AND OPTIMISATION (GAS)

Wednesday, 22 October • 1400 - 1530 hours • Astral Room 3

SESSION 24: IMPROVED HYDROCARBON RECOVERY

Wednesday, 22 October • 1600 - 1730 hours • Astral Room 1

SESSION 25: DRILLING - WELL CONSTRUCTION (CASE STUDIES)

Wednesday, 22 October • 1600 - 1730 hours • Astral Room 2

SESSION 26: KNOWLEDGE MANAGEMENT

Wednesday, 22 October • 1600 - 1730 hours • Astral Room 3

SESSION 27: UNCONVENTIONAL ENERGY