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Classification: Statoil internal Status: Draft

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1 Classification: Statoil internal Status: Draft
Review of NnwaDoro (OML 109) screening work to NAPIMS by Statoil March 2004

2 License Map

3 NnwaDoro - The key to monetise gas and unlock oil for Nigeria’s southern deepwater area
OPL 216 OPL 217 OPL 218 OPL 219 OPL 220 NGOLO AGBAMI NNWADORO Gas: 6 BOLIA/CHOTA BILAH Gas:10 – 15 tcf Oil:1-2 bn bbls OPL 246 AKPO Gas: 5 – 10 tcf ? Oil: 2 –5 bn bbls ? SOUTHERN RIM JDZ

4 Background Nnwa discovered in Same structure drilled as Doro in the adjacent OPL 219 same year. Nnwa-2 Appraisal drilling 2002 Partners in OML 109 (OPL 218) Statoil (Operator) and ChevronTexaco Partners in OPL 219 Shell (Operator), ExxonMobil, Total and Agip Water depth 1400 meters, main reservoir fluid is dry gas Floating LNG evaluated by both Operators to be possibly the most promising concept for commercialising of the Nnwa Doro gas resource in 2002 MoU signed in June 2002 terminated Dec 2003 Upstream and Mid stream scoping work 2004 by OML 109 Upstream 20 wells and sub sea production system Midstream FLNG and onshore LNG

5 Design Basis - Arrival Conditions
Feedstock flowrate: 920 mmscf/d ~17 year on plateau ~9 years on decline Arrival conditions: Space will be provided for future re-compression Operating range: 50 – 100% of design throughput Phase of production Total gas rate mmscf/d Pressure Offshore @ battery limit Temperature Initial 920 bara 20 – 90 °C End of initial depletion 75 bara °C End of plateau 40 bara End of field life 250

6 NnwaDoro FLNG concept Hull Storage LNG: 240 000 m3 LPG: 80 000 m3
FLNG cap Gas prod : 920 mmscf/d LNG : 5,77 MTA LPG: 0,30 MTA Cond Prod: 35 kbpd Hull Storage LNG: m3 LPG: m3 Cond: m3

7 Layout Summary Updated FLNG study 2004 MOU FLNG study 2003
Topside length inclusive safety gaps 368,2 m 329 m Topside width 76 m 81,2 m Footprint area m2 26,715 m2 Number of Modules 5 10 Numbers of levels 3 - 4 Steel Barge 450m x 76m 435m x 81,2m

8 NnwaDoro FLNG concept (450m x 76m)

9 Topside FLNG Weights Updated FLNG study 2004 MOU FLNG study 2003
Master Equipment List –Tonnes % 14 462 25.6 15 512 26.4 Structure –Tonnes 26 623 47.2 27 143 46.2 Bulk –Tonnes % 15 330 27.2 16 125 27.4 Weight allowance included 15% Total -Tonnes 56 415 58 780 Weight outside topside area 6 473 5 980

10 Steel Hull issues The hull concept design is based on:
Double hull used for ballast water Double deck areas (dry voids) Steel deck fully insulated over full deck area for process modules LNG tanks of either the membrane or SPB type LPG tanks non-pressurised fully refrigerated design Living Quarters for 200 persons at the aft end of the hull NnwaDoro topside footprint/ topside area requirement dictate the size of the hull Flare is positioned at the bow

11 NnwaDoro FPSO concept and onshore LNG plant
Offshore FPSO cap Gas prod : 967,5 mmscf/d Cond Prod: 32 kbpd Storage Cond: m3 Onshore plant cap Gas prod : 920 mmscf/d LNG : 5,63 MTA LPG: 0,34 MTA Cond Prod: 4 kbpd

12 LNG plant Layout Tank farm cap 2 x 150,000 m3 LNG tanks
1 x 50,000 m3 Propane tank 1 x 50,000 m3 Butane tank 1 x 36,000 m3 condensate tank Infrastructure for surrounding districts, e.g. roads / township / civil amenities /airport / etc. is excluded from the present scope

13 Cost and schedule Assumptions
ESTIMATE ASSUMPTIONS The estimate is prepared in USD mid 2004 values Basis for the estimate are the update of results from technical studies in the MoU phase

14 CAPEX estimates – Scoping concepts
MOU FLNG MUSD 2003 Updated FLNG MUSD 2004 Offshore & Onshore Upstream costs (20 wells) 1073 1505 2799 Drilling 661 835 Sub sea production system 412 670 Pipeline to shore - 319 FPSO 976 FLNG concept 2835 2970 Topside facilities 1992 2185 Riser tower and turret 380 Steel hull including LQ 463 785 Onshore plant 3089 Total costs 3908 4475 5888

15 Price expectations Feb 2005
The current market assumes that the US natural gas prices in real terms will move towards 4,00 05USD/MMBtu by 2010

16 Nigeria block 218 – NnwaDoro Assumptions
Condensate sales price: $25 ‘04/bbl ’04 LNG sales price: $4,0 ’04/mmbtu, Henry Hub Regas tariff $0,55/shipping tariff $0,50  FOB price = $2,95 ’04 Propane sales price: $217,4 ‘04/t Butane sales price: $216,0 ’04/t Inflation: 2,5% Discount rate: 10% nominal All values given as 100% project, un-risked

17 Nigeria block 109 – NnwaDoro Assumptions
No abandonment cost included for midstream (useful life of asset longer than assumed production period) For upstream; condensate volumes treated according to oil terms, gas volumes according to new gas terms. Cost split according to relative shares of total volumes. Export pipeline treated as subsea cost (VAT/import duty) in upstream

18 NnwaDoro cases - results
Base case nom IRR Case 1 NnwaDoro subsea dev., gas sales to FLNG 1446 15,5% Case 2 NnwaDoro FPSO dev., gas sales to onshore plant 459 11,3% Main conclusions: Subsea dev: Upside not as big as in other cases, since governed by gas terms and hence no ITC, as in PSA Sales to FLNG better than to onshore plant

19 Summary Need to negotiate gas PSC and pre-unit agreement to be able to move project forward Gas PSC and pre-unit necessary must be in place before embarking on further appraisal drilling Statoil is prepared to take the leadership and fast track the NnwaDoro project Technical Feasibility has been demonstrated Reduced sub surface uncertainty and increased reserve basis is a requirement for moving forward US market is the key target

20 Way Forward Exploration drilling Appraisal drilling ongoing
FLNG MoU phase OML 109 data trade (no success towards OPL 219 and OPL 246) OML conversion Re-processed seismic Subsurface evaluation OML 109/ OPL 219 (ongoing) Negotiate gas PSC/ pre-unitisation agreement (gas terms)/ Joint operating agreement Prepare NnwaDoro assessment plan and budget Drill appraisal wells Subsurface evaluation Concept evaluation Establish commercial structure/terms Concept selection FEED Finalise commercial agreements and fiscal terms Sanction (FID) Construction and pre-drilling phase Production start

21 Current OML 109 Long term development plan
2010 2011 2012 2004 2005 2006 2007 2008 2009 Gas terms Gas PSC/Pre unit agreement Subsurface Evaluation Phase 1 & 2 Appraisal Drilling ( 2-3 wells) Phase 3 Conceptual evaluation Concept selection PRE-FEED & FEED Commercial Structure/unitisation Sanction (FID) Construction and pre-drilling phase Production start Keys to delivery Negotiate gas PSC Partner alignment Sufficient reserves Cost effective concept Scoping work ITT process ITT process

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