Tuesday, December 01
This panel session will shed management insights and experiences in adopting the new norm. It requires managing work from home employees and offshore personnel movements to-and-from the platform and rigs while adhering to quarantine requirements. These are on top of managing multiple government agencies requirements, reprioritising portfolios and activities, drastic cost compression, assessing fabrication activities, reviewing supplies of material especially from COVID-19 affected countries while sustaining profitability and survival of the companies.
The double whammy impact of COVID-19 and low oil price requires unprecedented ingenuity to ensure the existing production continues to be profitable, the continuation of ongoing developments, and the near-term plan of new field development continues to have traction and funding.
The situation resulted in new historical cost compression measures that are to the “bone”, and the creativity to do the same things in different but safe ways.
- Cycle proof - How to sustain field profitability in various challenging environments?
- How to survive in a below USD30 per barrel environment?
Monetising marginal resources and maximise hydrocarbon production is always a challenge due to surface, subsurface complexities, and techno-commercial arrangement which leads to lots of stranded resources. Exploring and developing little treasures are not easy without considering the economic impact.
In this circumstance, the session will discuss and focus not only on technical perspectives, but also on the mindset and working culture issues to ensure a holistic approach to maximise the value and revitalise marginal fields. Topics to be covered include:
- Deepwater Well Engineering (DWE) and near field exploration (appraisal)
- Mop-up (innovative appraisal strategy)
- Fit-for-purpose field data enhancement and acquisition
- Optimum development strategies
- Cost management and efficiency
- Working culture and mindset
Wednesday, December 02
Marginal resources are inherently difficult to monetise due to the limited production volume available, relatively low production rates, shorter field life cycle, and the often-associated cost of decommissioning. Successful operators have managed to optimise both development and production costs to maintain a reasonable margin.
This alone, however, is not enough in the current environment of sustained low oil prices. New ideas need to be developed to attract companies to these marginal resources, operators need to not only overcome the initial hurdles of financing field developments, but also scaling production costs with production rates. These ideas will involve collaborations never seen before in the industry.
Host regulators will have to rethink the fiscal terms to incentivise development of marginal resources. Operators, service companies, and financial institutions will need to think about collaborations on different principles and find common grounds for joint creation of wealth, instead of standalones within their own boundaries. Think about all three operating on a profit-sharing principle instead of the old school financing and service rates. An FPSO company could, for example, participate in a development by providing the vessel at no cost and earning money from profit sharing. Another area to look into is the pooling of resources between different operators and possibly integrating supply chains management between companies. Another possibility could be the importance for service companies to join as a consortium to participate in a profit sharing or risk-reward type of concessions. Hence, a wide range of possibilities and commercial models should be simulated to provide equitable return to the participants in the development and operatorship of marginal fields, whilst minimising the overall risk portfolio of the fields. In such pursuit, the willingness to challenge the norms by all parties is crucial for monetisation of marginal resources.
Efficiency and cost competitiveness are driving innovative thinking in the development of marginal fields. The industry is exploring new ways to create sustainable, resilient, and long-lasting value-in-design by eliminating waste, and continual use of resources through replication, refurbishment, remanufacturing, and recycling.
Design simplification and standardisation are enabling organisations to have economies of scale, improve schedule efficiency, and subsequently lowering total installed cost. Standardisation of key equipment and materials will reduce cost and open up opportunities to create greater value, as products and materials could potentially be replicated and reused, disassembled rather than decommissioned, thus improving the productivity of these resources.
Lean design thinking is increasingly being applied to developing marginal resources by producing lighter weight and faster-to-deliver structures, which could unlock more marginal fields in harsh environments. Unmanned facilities are increasingly being considered for operations in remote areas to minimise operational cost. The combination of new technologies and improved processes could lead to fully unmanned operations.
The session will cover the following:
- Design One Build Many: an integrated approach on design standardisation and volume consolidation
- Lean Floater Design: concepts to deliver a lean and unmanned solutions for floating platforms
- Re-use, Remove, Re-locate: designing systems that can be recovered and redeployed elsewhere, opening marginal fields and new commercial models
- Floater-less, Subsea Storage: moving away from traditional manned systems to an approach where we utilise production buoys tied to subsea storage systems or shuttletanker offloading
Thursday, December 03
The challenge for marginal fields is to apply digital techniques from reservoir to export connections across the value chain. Utilising digital applications, such as smart data techniques, allows innovation in production and process management to reduce reservoir risk, improve production efficiency across fields, and acts as hubs optimising operational efficiency, allowing remote operation where appropriate to reduce costs.
The application of the Internet of Things (IoT) across our facilities will create new opportunities for smart data applications that can positively affect many aspects of operations and maintenance.
The development of stranded hydrocarbon discoveries is often called “marginal fields,” or extending the lifespan of matured producing fields are becoming progressively more important in mature provinces. Very often, projects with marginal economics and low reserves will require creative and unique technological solution, a game-changing concept that drives the capital cost to be lower, allowing for rapid development period and designed for short-term use (5 to 7 years) while taking into consideration decommissioning and abandonment. These are the essential 'Marginal Field Technology' characteristics to make such challenging marginal resources economically attractive.
A few pragmatic game-changing technologies are trending, but the need to identify new technology even at the conceptual stage is crucial to monetise the remaining marginal resources. Various technological adoptions and applications covering areas from initial field development to operational excellence and field decommissioning will be shared and discussed.
The session will also address the following questions:
- Has there been any technology or conceptual technology that could potentially drive a difference in marginal field development?
- What mindset shift is needed to make marginal resources development attractive?
- Has calamity made us creative and changed the way the industry approach marginal field development?
- How to make remote operation and management cheaper?