Deepwater Development - An Industry Perspective

Juju Mathew

23rd & 24th May, 2013

India Drilling & Exploration Conference (IDEC) 2013, Mumbai, India

Context Setting

Building Blocks

System Integration

Where do we stand

Agenda

Context Setting

Key Features of Subsea Development– Technology Centric.– Long Gestation period– Reliability / Availability– Robustness in Design– Operability– Host Facility

Context Setting (Contd…)

Technology Centric

• Specialist Vendors / Manufacturers

• Large investments in R&D / Product Development.

• Narrow / Limited portfolio spread

• Changing Standards

Gestation Periods

• Product Development

• Rigorous Testing Process

• Compatibility

• Reliability / Provenness.

Context Setting (Contd…)

BP Macondo Well, 20 April 2010, 11 dead

Usumacinta jack-up fire, 23 October 2007, 21 deadPiper Alpha accident, 06 July 1988, 167 dead

Lessons Learnt…….

“Good judgment comes from experience, and a lot of that comes from bad judgment.” Will Rogers

Context Setting (Contd…)

Reliability / Availability

• Proven Application

• Maintenance free

• Compatibility

• Design Life

Robustness in Design

• Reservoir Characteristics

• Flexibility / Future Technology Adaptation

• Safety Features – Fail Safe

• The Unknown

Context Setting (Contd…)

Operability

• Remote operation

• Response time

• Tooling

• Subsea Intervention

Host Facility

• Offshore – FPSO / TLP / SPAR

• Onshore Terminal

• Long Step out

• Subsea System Requirements

Context Setting

Building Blocks

System Integration

Where do we stand

Agenda

Building Blocks

SPS

• Subsea X’mas Tree

• Subsea Control Modules

• HIPPS

• Hardware – TUTU/UTA/DCS

• Umbilical / EFL / HFL

• Topside Controls

SURF

• Installation centric

• Umbilical

• Riser

• Flowlines – Rigid / Flexible

• Jumpers – Rigid / Flexible

• PLET

• Manifolds / PLEM

• Riser Bases

• Tie-in Tooling

• Protection Structures

Context Setting

Building Blocks

System Integration

Where do we stand

Agenda

System Integration

Factors

• Who will perform

• Contracting Methodology

• Cross Liabilities & Limitations

• Interface Management

• Indigenization

• Local Infrastructure

• Response System

Context Setting

Building Blocks

System Integration

Where do we stand

Agenda

Where Do We Stand

44%

13%

43%

Acreage Portfolio

Deepwater 1.35 M.Sq.Km

Shallow Offshore 0.40 M.Sq.Km

Onland 1.39 M.Sq.Km

Total sedimentary Area 3,140,000 sq km

Where Do We Stand (Contd…)

Brazil

Norway• The government worked deliberately to Norwegianize the oil

sector • US and French domination in the first decade• Labour relations were built on strong trade union influence• Worked in favour of domestic firms relative to foreign firms

– But did not jeopardize economic efficiency– Ownership no issue

• Environmental friendly – take care of the resources• The Ministry monitored the tendering process and bid

evaluations• Norwegian based firm got early access to all tendering

information

Source : INTSOK Report 2011

Where Do We Stand (Contd…)

What Needs to be Done

• Formal policy, backed by Govt., with realistic targets & schedule

• Regulatory body like OSO/OSS/ANP for monitoring & compliance

• Competent & qualified local vendors to facilitate JV’s /cooperation

• Plan to educate & train personnel, support business development

• Promotion of technology development of local industry

• Strategy to identify the most likely areas for domestic capability

• Adopt structured systems for Quality and Safety

Source : Goldwyn International Strategies, Columbia University

Where Do We Stand (Contd…)

Q & A