Now a diverse mix of players in the North Sea Rise of new entrants and independents Small independents like Tullow, Caledonia, Centrica and Venture gaining footholds in Southern North Sea Larger independents like Perenco & Apache benefited from divestitures by BP, Shell and BG Partly driven by spate of divestitures following consolidations amongst majors & super-majors Recent trends in the North Sea
Majors & super majors developing existing portfolios and drilling the odd wildcat Independents focusing on smaller marginal prospects and drilling exploration wells. Near-field prospects can be rapidly developed using existing infrastructure Activities in the North Sea broadly classified as
Number of wells being drilled and number of significant discoveries is in decline BUT!
Policy changes in the North Sea PILOT launched 2001 in UK – use it or lose it Promote licences launched in 21 st UK licensing round Frontier licences launched in 22 nd UK licensing round Promote licences in pink
Promote resulted in 36 new players being awarded licences in the North sea – mostly small and medium sized independents 22nd UKCS Offshore and the 12th Onshore Licensing Rounds were announced on 4 th March 2004. This is the largest offshore licensing round since the 2 nd Round in 1965!
I'm announcing today the opening of the 22nd Offshore and the 12th Onshore Licensing Rounds and with another new type of licence - the "Frontier" licence - for blocks in the Atlantic Margin, West of Shetland. The "Frontier" licence will allow companies to apply for relatively large amounts of acreage in these challenging areas at reduced costs, so they can make an effective assessment of the most promising 25% on which to focus their exploration and development. The changes reflect the additional technical difficulties in these areas. Stephen Timms MP, Scottish Offshore Achievement Awards, March 4th 2004
But still questionable whether exploration and development will increase given size of these companies, without farm-in from existing North Sea players
Information and data about the North Sea have never been better Wealth of technical, seismic and contractual information available Companies questioning ways of managing these resources in a useful & efficient manner GIS is being widely adopted for this purpose… New entrants – seeking new opportunities
New entrants seeking timely GIS updates, historical data and detailed geological, contractual, field reserve and infrastructure data Seeking ability to quickly understand the marketplace and reliably make key decisions Requirement for an all encompassing system for deployment in new ventures, E & P, business planning, trading and asset management departments New entrants – seeking GIS data and apps
Geographic patterns hidden in standard column-row data structure Location is critical in the oil and gas industry GIS captures the synergy of analysing data simultaneously at a location and attribute level In the past complex spatial modelling has been restricted to geophysical applications GIS in oil and gas – an overview
Shift from traditional operational and drafting role of GIS to a broader strategic role New entrants and independents looking for the successful marriage of complex databases with new functionality to support their day-to-day responsibilities GIS tools such as company interest searches, production profiling and fallow acreage reports are now commonly used in the industry GIS in oil and gas – an overview
Gas market analysis – solving network and connectivity issues such as security of supply and pricing New ventures – looking for new opportunities Exploration – integrating data sources Business planning – considering spatial dimension of potential acquisitions/disposals and tie-in options Asset management – supporting management of corporate spatial databases – [Shell & independents] Where can GIS help?
Wide range of sources – government, field operators and other equity partners UK DTI & Norwegian NPD UKOOA via Deal (www.ukdeal.co.uk)www.ukdeal.co.uk In GOM and Australia – MMS & Australian government Seismic data from service companies GIS providers have a wide network of data scouts and contacts collecting this data on a continual basis GIS data in oil and gas – sources
Normally 5 main datasets provided: –Blocks –Wells –Fields –Platforms –Pipelines –Plus other cultural and technical datasets
GIS data provides a detailed overview, but the GIS functionality adds the real benefit to the independents Independents need to act quickly and with confidence in new acquisitions or exploration opportunities They need a database and tools to extract important commercial and geotechnical information with ease They need to access this data quickly in order to be responsive and competitive GIS applications in oil and gas
Company Interests Production Profiling Fallow Acreage Prospects and Well Trading Deals and Historic Licencing Seismic Tools GIS tools used by the independents
Company Interest Searches Users can generate a list of assets in which a company currently holds an interest Company A wants to see what fields Company B has interests in, in Norway Users can select parent or subsidiary companies, and restrict the search to blocks, fields, wells, pipes etc as well as specify the % interest range that Company B might have For M & A transactions, the Overlapping Company interest search compares the assets of two companies
Results are presented thematically and in tabular format for further analysis
Production Profiles If the GIS database contains historic and future production figures for fields then users can visualise these figures by running a production profile By selecting fields in the map window or from a list, graphs are generated illustrating the production figures
Production profiles can additionally be constructed from pipelines and terminals, thus showing any bottlenecks or spare capacity Particularly useful tool for independents who might be looking for near- field prospects close to existing infrastructure with some spare capacity
Fallow acreage Fallow blocks are those Traditional Licences where the initial term (originally 6 years, now 4 years) has expired and there has been no drilling for 4 years and no dedicated seismic or other significant activity for 2 years The fallow GIS tool identifies such blocks and can be restricted to search the blocks of a specific company or country This is a useful tool for new entrants and independents in determining which blocks might be worth considering if and when they become available
Seismic tools Seismic tools have been developed that enable users to load (UKOOA data for instance), visualise and analyse seismic navigation data. Useful tools within the GIS environment include 2D line and shot-point survey labellers and the parallel lines tool. Service companies and independents find them helpful for preliminary planning and 3D cost survey analysis
Prospects & Well Trading Data is often held in disparate locations preventing users from making meaningful analysis in the context of existing acreage, drilling activity, infrastructure, future licensing rounds, fallow acreage etc. Prospects tools manage prospect inventories within GIS. Prospects can be added into a centralised database via the GIS interface. Well trading tools manage well- trade related data. Current & historic well data and trade scenarios are held within a centralised database and can be accessed through a GIS interface.
Traded wells are classified either as offered or requested. Offered wells are owned by the database owner at the time of the transaction whilst requested wells represent wells gained from a trade.
Deals and historic licensing Tracking deals and historic asset ownership in the North Sea is a critical process for any effective business development strategy New entrants are unlikely to have built up this kind of detailed information and often rely on commercial sources The GIS database combines details of all deals and historic block changes in the North Sea since exploration began Users can query the deals or historic blocks database through the GIS interface
After almost 40 years of exploration, the North Sea is witnessing a steady influx of new entrants and small to medium sized independents Lured by government initiatives and corporate divestitures resulting from consolidation of majors and supers New players are embracing GIS as a method of managing disparate data sources Detailed GIS databases, updated on a regular basis and oil and gas specific tools, are allowing the new players to stay competitive The demand for such datasets and GIS tools has seen a shift in emphasis away from operational or drafting systems to strategic and business support systems