BG GROUP TECHNOLOGY – FOCUS ON

CARBONATE TECHNOLOGY HUB

Frances Abbots

April 18th 2013

Workshop on Carbonate Research: Current efforts & the Way-Ahead

April 18-19th, São Conrado, Rio de Janeiro

Organised by DTU & PUC-Rio

1

• Overview of BG Group Technology

• Programme & Focus Areas

• BG Technology in Rio – who we are

• Carbonate Hub

– Strategic focus themes

– Project portfolio overview

– Future directions

• CNPIC

• Wrap up and final messaging

2

Agenda

Organisation Model BG Group Technology

3

• Group Technology

– Globally connected staff in Brazil, UK & Australia

• Global Technology Centre (GTC)

– Co-ordination centre for the management of projects executed by partners

– Ensures compliance to Brazil R&D levy requirements

– Located in Rio de Janeiro (UFRJ, Ilha do Fundão)

• Technology Hubs (Internal)

– Programmes with multi-disciplinary focus on themes of strategic value to BG Group

– Located alongside key stakeholders (e.g. corporate centre, Brasil, QGC)

• BG Institutes (External)

– Partnership model with Universities

– Research aligned to BG themes, with dedicated programme managers

– Funding provided for R&D staff, equipment and infrastructure if needed

Hubs

BG Institutes

GTC

Programme and Focus Areas

4

Subsurface Well

Engineering

Production, Ops

and HSSE Engineering

CarbonateTechnology Coal Seam

Gas

Safety &

Asset

Integrity

LNG Shale Gas

Carbon Management

& Gas Utilisation

Multi-Discipline Technology Hubs

Foundation Programmes

Rio

Rio Rio Rio Rio

5

Subsurface Discipline Technology Carbonate Technology Hub

BG Group Technology now in Rio

Reservoir Engineering Technology Manager

Petrophysics Technology Manager

Geophysics Technology Manager

Geology Technology Manager

Carbonate Technology Manager

Production Technology Manager

Well-Engineering

Engineering

Well-Engineering Technology Manager

Engineering Technology Manager

Chief Technology Officer

SubsurfaceTechnology Manager

HSSE

HSSE Technology Manager

6

Carbonate Technology Hub

BG Group Technology in Rio- People

Well-Engineering

Engineering

John De Lange

Isabel Waclawek

Frances Abbots Richard Moore Subsurface Manager

Dave Watson Reservoir Engineering

Brent Glassborrow Petrophysics

Mike Megorden Production Technology

Hamish MacIntyre Geophysics

Stephanie Grimshaw Geology

CTO

Olivier Wambersie

Subsurface Discipline Technology

Note: Key technical contact people for this audience

HSSE

Flávia Adissi

7

Carbonate Hub

What is a Hub?

– Multi-discipline approach to complex industry challenges

– Carbonate Technology Hub set up in 2010 in UK

– Moved to Rio de Janeiro in January 2013

Mission of Carbonate Hub

– To address key carbonate challenges facing BG Group and the petroleum industry

– To optimize the development and recovery from the BG Group carbonate asset base which includes world-class giant fields such as Lula & Iara (Brazil) and Karachaganak (Kazakhstan)

8

Carbonate Technology - Themes

Improved Reservoir

Modelling

Integrated

Characterisation Quantitative Analogues

Production,

C02 & EOR

– The complex technical challenges of carbonate reservoirs (pore-

seismic scale, rock-fluid interaction) demands an integrated, multi-

discipline approach

Strategic Themes

– Carbonate Hub Projects are organised under four cross-discipline

strategic themes

9

Carbonate Technology - Projects

Current

– Over 23 ongoing projects in six countries:

– 10 Joint Industry Projects

– 13 projects BG-funded

– From large (umbrella) to small (1 PhD) projects

– More than 12 universities & 2 service providers

Future

– New projects in pipeline to continually build portfolio

– Field-trials in the Assets – application of technology

– Focus research activity via Carbonate Institute (CNPIC)

10

Q1- 2013

CNPIC - Current status

• Name of centre approved by Pró reitora de Pós-Graduãção e Pesquisa in UFRJ

Centro Nacional de Pesquisas Interdisciplinares em rochas Carbonáticas

• Formal approval for CNPIC inside UFRJ

• Approved the concept of CNPIC

• Approved physical location of CNPIC in UFRJ

• Presented concept of CNPIC to ANP in February

• Letter signed by Chris Finlayson (CEO BG Group) on 11th March 2012

Vision

– To become a world-leading carbonate research centre and research partner of choice for the petroleum industry

Mission

– To address key carbonate challenges facing BG Group and the petroleum industry

– To provide a pan-university vehicle for multi-disciplinary, integrated carbonate research projects

– To build carbonate expertise and capacity in Brazil and attract high-quality researchers and students from Brazil and world-wide

– To stimulate and facilitate national and international collaboration with leading researchers and institutions

11

CNPIC - Vision & Mission

CNPIC - Foundation Elements

12

COPPE

(UFRJ)

CCMN

(UFRJ)

CNPIC

Masters Course

Carbonate

Reservoir

Characterisation

Research Projects

SACL Project

NMR II Project

CarbSimUp

NMR Project

(UFF)

Project started

Project planned

Training

Infrastructure

Laboratories

Other

Infrastructure

13

CNPIC Carbonate Network

UNESP

Edinburgh

UFRJ

Other

Universities Heriot-

Watt

Aberdeen

UENF Macaé

Utah

BG Global

Technology

UNICAMP

UFSC UFRJ

CCMN COPPE

BG GTC Carbonate

Technology

CNPIC

Imperial

Miami

Milan

Bilbao

Texas A & M

St. Andrews

UFF

BG Group Global Technology Centre

(GTC) Ilha do Fundão, Rio de Janeiro

14

15

GTC Ground-breaking Ceremony

March 11th 2013

During the ceremony, Chris Finlayson (CEO

BG Group) delivered to Carlos Levi, Rector of

the Federal University of Rio de Janeiro

(UFRJ), a letter of intent to collaborate on

research and multidisciplinary projects related

to carbonate reservoirs. The research will help

improve the industry’s ability to predict

reservoir characteristics and enhance oil

recovery.

“The letter of intent marks the beginning of a

long-term partnership between the Federal

University of Rio de Janeiro and BG Brasil,

which will bring benefits to the exploration and

development of pre-salt reservoirs in Brazil”

Nelson Silva, President BG Brasil

Conclusions & Final Messages

16

BG Group Technology

– BG Group Global Technology Centre based in Rio

– Long-term commitment, long-term strategy

– Research through collaboration

– Discipline Technology and Hubs – Coal Seam Gas, Shale Gas etc.

Carbonate Technology Hub

– Carbonate Hub now based in Rio – manages projects worldwide

– Multi-discipline projects to tackle challenge of carbonate reservoirs

– CNPIC

– Interdisciplinary and collaborative

– Ambitious vision, clear mission

– Building talent funnel & expertise in carbonates

– Open to develop ideas, work and collaborate on projects with universities & companies

Programme and Focus Areas

17

Subsurface Well

Engineering

Production, Ops

and HSSE Engineering

CarbonateTechnology Coal Seam

Gas

Safety &

Asset

Integrity

LNG Shale Gas

Carbon Management

& Gas Utilisation

Multi-Discipline Technology Hubs

Foundation Programmes

Rio

Rio Rio Rio Rio

BACK-UP

18

Talent & expertise growth via CNPIC

19

CNPIC

Carbonate Masters Course at CNPIC

Carbonate PhDs

Carbonate Post-Docs

Carbonate

Lecturers

Industry Employment

To other universities

To other universities

Industry &

Universities

Universities

Industry &

Universities

Industry employment

To other universities