1. NERA Innovation Clusters … leveraging the opportunities
November 2016

3. The challenge … building a hub
What might a cluster look like that would allow us to dramatically reduce the cost of development drilling in the north-west over the next years?
Who might be involved? (groups rather than individual firms)
How could it operate? (think about Intsok presentation … but think local)
What is the role of the various participants?
What might be potential spin-off benefits from such a hub (think technologies; expertise; networks; capital)
For the oil & gas sector?
For other regional players?
At a global level?

4. A potential cluster framework … who plays?
Service companies … drilling; logistics; supply boats; well design; warehousing; heliops;
Entrepreneurs … able to see and shape opportunities, capture the moment; start up community
Local companies … big and small; local/regional centric
Research centres … universities; globally connected
Centres of excellence … local; international
Cluster drivers
Operators1 … participants and beneficiaries; access to opportunities
Investors … venture capital; corporate venturing; strategic investors
Regulators … removal of barriers (eg. ACCC allowing collaboration); accelerated approvals (eg. shift from ‘project’ to ‘cluster’ approvals)
NERA … coordinator; supporter; connector
Government … enabler via supportive policies (eg. commercialisation loans)
Cluster enablers
Are the operators drivers of the clusters or active participants? Both? Do they ‘shape’ the cluster agenda?

5. A potential cluster framework … potential scope?
Develop drilling technologies … unmanned drilling; subsea drilling
Drilling targets … eg. improved geoscience
Time shifting … reduced planning and approval timing; simplification (eg. simple wells done faster)
Knowledge sharing/capability development … share wins (everybody wins)
Shared infrastructure & assets … eg. optimised rig use/contracting; common emergency response systems
What might we tackle?
Value driven … based on industry value chain cost models
Bold targets … eg. 50% cost reductions
Series of step changes … iterative and ongoing
Long term agenda … sustained longer term research
Solve big problems … strategic level commitment/action
How do we focus across the suite of possibilities?

6. A potential cluster governance framework …
Steering Committee
Requires ‘strong’ chair
Leaders willing to invest personal capital
People with courage and vision
Social charter
Cluster Facilitator/ Manager
Connected and connects
Markets services
Non-exclusive services
Drilling contractors
Warehousing
Logistics
Base
Researchers
Technical consultants
Buyers

7. The leadership agenda … building the narrative
Need a bold ambition … ca. 50% cost out
Value driven … seek out the big opportunities
Entrepreneurs working within a larger ecosystem
Leveraging global linkages … research; capability; know-how
Access to funding pathways … incl. government
Structured governance model … leaders with clout
Bold statement of intent … leadership that shifts the dial
Build momentum … deliver wins and iterate
Growth through collaboration and learning …

8. Pathways forward … some ideas from industry
Can we build a global cluster?
How do we engage government and industry … need to reach out to key influencers?
Flesh out and test models for operator engagement? What are the options? Which will work best in our local context?
Can we expand the focus to new energy forms … likely to engage and attract leading thinkers/players. And attract capital $$$
Need willingness to be more open
Strengthen and broaden engagement ...
Develop clarity around industry issues
Facilitate development of a list of ‘problem statements’ and prioritisation process … engage academia in shaping the problem statements
NERA to develop and ‘launch’ plan for next year … needs CEO ‘endorsement’ and support to buy political capital within the sector
How do we leverage / access know how from other clusters?
NERA as facilitator / broker ...
The fundamental challenge is one of leadership … we need a bold statement which will galvanise people around the concept and attract talent and money to the cluster