Presentation on theme: "Challenges for offshore development in Colombia V Colombia Investment Conference October 2012 Álvaro Racero Baena Caribbean Regional Executive Director."— Presentation transcript:
1 Challenges for offshore development in Colombia V Colombia Investment Conference October 2012 Álvaro Racero BaenaCaribbean Regional Executive Director
3 Growth in offshore projects: Onshore and Offshore Projects Production Start DatesSource: IHS CERA, Capital Costs Analysis Forum–Upstream Houston, May 2012
4 Worldwide offshore production Deepwater continues to be an important oil supply in the world (not only in US) and will continue to increase in the future.The contribution from deepwater fields rises from around 5.4 Mbd in 2011 to 11.2 Mbd inSource: IHS CERA* Deepwater >1000 <5000 feet; Ultradeep Water: >5000 feet.
5 Rigs AvailabilityMajor offshore drilling basins (rig supply/utilization)Source: ODS-Petrodata, Morgan Stanley Research, October 2012
6 Repsol: Offshore presence around the world Offshore activity in 20 countries (operator in 14)NorwayCanadaIreland* BulgariaSpainUSAPortugalVenezuelaTunusiaMoroccoTrinidad andTobagoCubaGuyanaSierra LeoneColombiaLiberiaIndonesiaAngolaAustraliaBrazil* NamibiaSeptember, 30th 2012DeepwaterOPERATOR and joint ventureExplorationProductiónNON OPERATORServices Contract in production operations* Pending of official ratification
7 Offshore Exploratory and Appraisal Wells Repsol:Offshore Exploratory and Appraisal Wells: 52 Offshore exploratory (Operator & joint venture in 22) 32 deepwater (Operator & joint venture in 10)Deepwater non operated (dw)Deepwater operated & joint venture & (dw)
11 Ubicación y Concepto de Desarrollo – Fase 300 Proyecto Cardón IVUbicación y Concepto de Desarrollo – Fase 300Cardon IV East BlockPerla 2ST1Perla 5Cardon IV West BlockPerla 3xPerla 1XPerla 4xEl Campo Perla está localizado aproximadamente 50Km al oeste de la Península de Paraguana (Golfo de Venezuela) en lo que se denomina el Bloque Cardón IV West.Validez de la licencia es de 30 años desde el 2 de Febrero de 2006PDVSA tiene el derecho de entrar en la asociación hasta con el 35%, hasta 120 días después de declaración de comercialidadGas Original en Sitio = 17 TCF/ Reservas = 8.1 TCFGSA firmado elDeclaración de comercialidad publicada elPlan de desarrollo aprobado elRefineria AmuayRefineria CardonPerla-2ST1Perla-1XPerla-4XPerla-5Perla-3X14”Tubería del Pozo1430”Tubería deExportación MultifasicaPlataforma deInterconexiónPerla 1xEstructura livianaPerla 2ST1Perla 35 Pozos Perforados : 4 verticales y 1 sub-horizontal.
12 Challenges for offshore Colombia HSE AND ENVIRONMENTAL IMPACTCONTRACTS & CONTRACTING STRATEGYEQUIPMENT, AVAILAVILITY AND LEAD TIMELEGAL FRAMEWORK (STABLE, ADECUATE)QUALIFIED STAFFINTEGRATED DYNAMIC TEAMSPROJECT COSTS & COST CONTROLSINFRASTRUCTURE & MARKETS INTEGRATIONEFFICIENT APPLICATION OF TECHNOLOGYREMOTENNES AND LOGISTICSGAS PRICES
13 IHS CERA Upstream Capital Cost Index Index includes:SteelLand RigsOffshore RigsEngineering and Prof. ManagementEquipmentConstruction labourYards FabricationSub-seaBulk materialsOffshore installation vessels
14 Cost inflation2002 Fiat Punto$12, =2003Valve (super duplex SS)2007 BMW 3202007$40, =Let’s talk about cost inflation and illustrate it with an example.A nice, but simple, prime quality duplex valve did cost in 2003 about the same than an also nice and simple Fiat Punto.The same nice and simple valve cost today about the same than a nice and sophisticated Audi A6. I know that this is a sad reality for the happy owners of an Audi A6.But, it is also a reality that the same piece of equipment is about 4 times the cost than 5 years ago.2012 AUDI A62012$48, =
15 Mitigating the Risk of project execution though a consistent and proved methodologyAssuring the appropriate human and technical resourcesDeveloping time and cost effective projects that consistently provide added value to the businessPredicting project costs and schedule in a reliable wayManage opportunities and project risks during all phases of the project lifecycle.Improve communications establishing a common language
16 Comparación del precio del Gas en diferentes mercados (USD/MMBTU)
17 Offshore Guajira wells Statistics by spud year, WD, TDAraza-1~ 20 years no wellsSpud year~ all the well in shallow waterVariable TDWater Depth
18 KaleidoscopeAn integrated project to improve the subsurface imaging through seismic processingLeaded by the Repsol subsurface team in Houston
19 KaleidoscopeApplying state-of-the-art algorithms to resolve complex geological geometriesEither in sub-salt environment or in complex thrust belts
20 Call for the Geopressure team Geopressure analysis processTechnical maturityDesignationCall for the Geopressure teamData preparationTeam meetingBudget approvalStudy completionStudy approvalPDDPInput: Delivered study (ies).Output: Updated Geopressure model, shallow hazards and geomechanic results, gathered and completed in the PDDP.Participants: Project manager, manager of Operaciones Geológicas, Drilling Manager, Geopressure Team.Description:The Team coordinator and the Drilling Manager validate and approve the study and its conclusions with the support of the recommendations of the Team specialists.The Project manager enters the conclusions and recommendations of the study in the PDDP.
21 Biodiversity, a must to preserve 7 areas of coral-reefs9 bird sanctuaries including the protected Nariva SwampSeveral turtle nesting beachesCost line geomorphologically complex with 8 zones particularly sensible to oil spills6 zones of artisan fishing9 types of sediments, with 4 types of benthonic communities
22 SummaryImprove quality of subsurface image and capabilities in Seismic Processing. Improves well prediction. (Kaleidoscope/Phoenix Project)Multidisciplinary geopressure group to improve on the well prognosis for areas with limited well data availableOperational Deep-Water capabilities with an offshore drilling group in Houston which give support, supervise and design all offshore drilling operations.IPM and adequate contracting strategies to minimize risks of cost overrunsRepsol’s regulatory and drilling groups have been actively engaged with all of the industry initiatives related to the new and evolving regulations in the GOM.Along with 23 other operators in the GOM, Repsol has elected to join the Helix Well Containment Group (HWCG), one of the two groups approved by BOEMRE, to find solutions for spill containment.