Introducing Subsea ConnectNeil Saunders
President & CEO, Oilfield Equipment, BHGE
SUBSEA CONNECT
Global offshore capital investment projected to grow at a CAGR of 16% with Deepwater leading the growth
2
343
180164
173
200
242
0
100
200
300
400
’16
282
’18
215
’14 ’15 ’17 ’20’19 ’21
-47%+16%
Global offshore (E&P CAPEX)1 ’14-’21
($B)
3Yr CAGR : High : 18% | Base : 16% | Low : 1%
Offshore greenfield capex in 2018 expected to be $94B
BHGE analysis based on Rystad UCube – August 2018; Upstream Spend based on
Rystad Brent Price assumptions: 2018 = 75 $/bbl., 2019 = 79 $/bbl., 2020 = 79
$/bbl., 2021 = 77 $/bbl. ; IHS Markit Upstream Spend report (August, 2018)
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Change makers
3
Low-carbon
transition
Digital
transformation
Game
changing
technology
Integrated
perspective
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SUBSEA CONNECT
Breakeven costs have come down.
Development costs for subsea projects have fallen 29% since 2015.
4
73
52
2015 2018
-29%
Source: analysis covering the same 3 major greenfield subsea
projects over time using data from Rystad Energy
Average breakeven prices ($/bbl)
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We believe there is more to do.
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Reducing the economic development point of unsanctioned projects by 30% unlocks 16B bbls of reserves
Source : Rystad Ucube (October 2018), Brent oil price at $75
Unsanctioned subsea projects 2018
Asset break even price bands
Re
sou
rce
s B
illio
n b
bl.
10
4
18
7
21
33
1
5
0
5
10
15
20
25
30
35
Resource Segmentation @ CurrentBEP
Resource Segmentation @30% BEPReduction
>$75 $50 <= x <= $75
$25 <= x <= $50 $10 <= x <= $25
12B bbl.
4B bbl.
6
Introducing Subsea Connect
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Subsea Connect
8
Reduces the
economic
development point by
an average of
30%
Influences
80% of project
development costs
and value drivers
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This is Subsea Connect
9
Digital
enablement
Flexible
partnerships
and commercial
models
Project
Connect
Reservoir to
topsides
technology
solutions
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Radically optimized.
Outcome engineered.
Life-of-field solutions.
10SUBSEA CONNECT
Project ConnectReinventing how projects are planned and executed
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Fewer than 25% of oil and gas
projects were delivered on time,
averaging 10 months’ delay.
Projects delivered were on average
around 35% over budget
Source: UK Oil and Gas Authority
12SUBSEA CONNECT
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v
13
Project Connect
Key features
• Economic outcome
assessment
• Parallel tracks to compress
“assess” phase
• ‘All hands’ dedicated project
teams
• Independent project
management ability
• Technology system
configuration and project
integration
• Flexible partners and
solutions for the project’s
needs
Benefits
• Execution
certainty
embedded
• Collaborative and
common purpose
• Speed—get to FID
faster
• Improved
schedule
RESERVOIR & SUBSURFACE
LEAN WELL CONSTRUCTION
TOPSIDES
PROJECTCONNECT
SPS & SURF
BHGE credentials
• Early Engagement
starting at concept
evaluation
• Built-in capability:
Gaffney Cline &
Associates, io oil and
gas consulting
• Unparalleled expertise
in reservoir modelling,
planning, project
feasibility, conceptual
design, environmental
advisory, and asset
late life opportunities
• Fullstream technology
capability
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Subsea Connect transforms uneconomic North Sea asset3 well subsea tie back
CASE STUDY
IRR improved
3x FID-enabled
NPV improved
2xFirst oil accelerated
30%Development
economic
14
Co
nn
ect p
re-
fee
d e
stima
tes
Drillin
g
SP
S
SU
RF
To
psid
e m
od
ificatio
n
Ow
ne
rs costs
Clie
nt su
bse
a d
eve
lop
me
nt
We
lld
esig
n
Co
nso
rtium
syne
rgy
Su
bse
a o
ptim
izatio
n
Co
nn
ect in
itial
estim
ate
Co
st certa
inty
Op
timize
d
insta
llatio
n
Pro
cure
me
nt
strate
gy
De
sign
—sta
nd
ard
izatio
n
Bro
wn
field
m
od
ificatio
n
SUBSEA CONNECT DELIVERS
50%COST
REDUCTION
Pro
ject
de
velo
pm
en
t co
sts
Impact of Subsea Connect on materially lowering the economic development point
Key factors impacting economic development point
Independent assessment process
identifies opportunities for improvement
• Project stalled since 2015 due to poor economics
• CAPEX reduction 50%
• BHGE and io Oil and Gas apply Subsea
Connect independent assessment and Project
Connect workflow, to identify project
improvements—40% cost reduction
• Total Scope and Execution—line of sight to
further 10% cost improvement identified
through execution process
• Assessment showed earlier FID could be enabled
CAPEX reduction
50%
Reservoir to topsidesTechnology solutions for the life of the field
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BHGE Fullstream capability
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Topside
optimization
AptaraTM
TOTEX-lite
subsea
system
Lean well
construction
Reservoir
optimization
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Reservoir optimization
Reservoir insights and optimization to enhance drainage and recovery over the life of the field.
17SUBSEA CONNECT
• Over 400 geoscientists across upstream business
• Proven results Globally deployable field teamsIncreased recovery factorExtended asset life
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Aptara™ TOTEX-lite subsea system
Delivers up to 50% lower total cost of ownership.Life-of-field design brings increased flexibility
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• Modular and structured portfolio
• Compact and up to 50% lighter
• 30% lower lead times
• Simpler and easier installation, operation, and maintenance
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Lean well construction
Drilling to the technical limit; integrated with the rig to reduce well construction costs significantly.
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• Accelerated drilling campaigns
• Advanced drilling systems with
Autotrak™ technology
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Topside optimization
Debottlenecking, gas handling, and power solutions to extend asset life• Over 1,400 units upgraded
• Asset life extension
• Emissions reduction and control
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Flexible partnerships and commercial models
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✓ Portfolio evaluation
✓ Exploration and planning
support
✓ Concept—FEED
✓ SPS-SURF
✓ Pipelay and construction
vessels
✓ Unique commercial models
Stakeholder
man.
Economics
SU
RF
TECHNICAL
BHGE+
PARTNERS
22SUBSEA CONNECT
Digital enablement
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Field planning &
optimization
Production enhancement
Asset performance management
24SUBSEA CONNECT
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SEGMENT CATEGORYSEGMENT CATEGORY 16 pt BOLD, ALL CAPS
25
Welcome to engageSubsea.
Setting new
standards in Digital
asset life cycle
management
The next era of operations
optimization and predictive
maintenance
engageSubsea
Plan
Wing to wing offshore
planning and OEM Assets
Live on-the-job execution
visibility
Optimizing performance
remotely
Pill
ars
PerformExecute
20% Reduction in maintenance cost | 5% reduction in downtime
SUBSEA CONNECT
This is Subsea Connect
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Digital
enablement
Flexible
partnerships
and commercial
models
Project
Connect
Reservoir to
topsides
technology
solutions
SUBSEA CONNECT
Radically optimized. Outcome engineered. Life-of-field solutions.