License to drill (17Jun08).pdf

8/19/2019 License to drill (17Jun08).pdf

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Nazery KhalidNazery Khalid

Offshore Drilling Operations ConferenceOffshore Drilling Operations Conference

Kuala Lumpur, 17Kuala Lumpur, 17--18 June 200818 June 2008

LICENSE TO DRILL :LICENSE TO DRILL :INDUSTRY TRENDS AND RIG SELECTIONINDUSTRY TRENDS AND RIG SELECTION


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PRESENTATION OUTLINEPRESENTATION OUTLINE

•• World rig market growth.World rig market growth.

•• Deepwater : treasures from the deep.Deepwater : treasures from the deep.

•• Selection of drill types based on marketSelection of drill types based on market projections. projections.

•• Rig market trends.Rig market trends.

•• Crystal gazing : Rig market outlook.Crystal gazing : Rig market outlook.


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GLOBAL SCENARIOGLOBAL SCENARIO

•• Pressure to find new energy supply leadingPressure to find new energy supply leadingto growing demand for rigs.to growing demand for rigs.

•• Rig owners enjoying high day rates.Rig owners enjoying high day rates.

•• High revenues for oil majors leading toHigh revenues for oil majors leading to

more investment in rigs / fleet expansionmore investment in rigs / fleet expansion..

•• Emergence of new builders i.e. BOMCO.Emergence of new builders i.e. BOMCO.•• More refurbishment of old rigs.More refurbishment of old rigs.

•• 100% utilization rate of deepwater rigs.100% utilization rate of deepwater rigs.


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WORLD RIG COUNTWORLD RIG COUNT

3116

1768

343

241

265

66

78

355

20072007 **

279238Middle East

7358Africa

9377Europe

380324Latin America

30093043Total

18291648USA

106470Canada

249228Asia Pacific

RegionRegion Apr 2008Apr 200820062006 **

Baker Hughes Inc.Baker Hughes Inc.

** Monthly average Monthly average


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OFFSHORE RIG DAY RATESOFFSHORE RIG DAY RATES

ODSODS--PetrodataPetrodata Inc.Inc.


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FLOATERS ACTIVITY BY AREA (endFLOATERS ACTIVITY BY AREA (end ‘‘07)07)

RSRS PlatouPlatou

92%187172World total

94%1615Rest of world 85%2622Pacific Rim

90%3027W/S Africa

94%3129S America

89%4540Mexican Gulf

/ Caribbean

100%3939 N Atlantic100%1818 Norway

UtilizationUtilizationSupplySupplyDemandDemandAreaArea


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JACKJACK--UPS ACTIVITY BY AREA (endUPS ACTIVITY BY AREA (end ‘‘07)07)

RSRS PlatouPlatou

89%400355World total

99%140138Rest of world 95%6562Pacific Rim

93%2725W/S Africa

80%54S America

72%12590Mexican Gulf

/ Caribbean

95%3836 N Atlantic100%66 Norway

UtilizationUtilizationSupplySupplyDemandDemandAreaArea


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FACTORS DRIVING DEEPWATER RUSHFACTORS DRIVING DEEPWATER RUSH

•• Growing global demand for energy.Growing global demand for energy.•• Traditional fields fast exhausting.Traditional fields fast exhausting.

•• Declining production & reserves.Declining production & reserves.•• Oil supply jitters.Oil supply jitters.

•• Pressure to diversify supply.Pressure to diversify supply.

•• Energy economics.Energy economics.

•• Technological advent.Technological advent.


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DEEPWATER PRODUCTION FORECASTDEEPWATER PRODUCTION FORECAST

www.eia.doe.govwww.eia.doe.gov


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RIG SELECTION CRITERIARIG SELECTION CRITERIA

•• Location of drilling activity.•• Depth of water, seabed features & lateral

force at location for offshore drilling.

•• Deck requirements.

•• Size of field and location of wells.

•• Transport of oil requirements.•• Type of drilling i.e. active site drilling,

‘wildcat’ well drilling, scientific drilling.


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FIXED PLATFORMSFIXED PLATFORMS

www.ukooa.co.uk www.ukooa.co.uk


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TYPES OF FIXED PLATFORMSTYPES OF FIXED PLATFORMS

•• Conventional fixed platforms•• Compliant towers

•• Tension leg platform

•• Seastar


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CONVENTIONAL FIXED PLATFORMSCONVENTIONAL FIXED PLATFORMS


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CONVENTIONAL FIXED PLATFORMSCONVENTIONAL FIXED PLATFORMS

•• Built on concrete / steel legs anchoredonto seabed.

•• Deck with drilling rigs, production

facilities and crew quarters

•• Structures used : steel jacket, floating

concrete & concrete floating steel•• Economically viable for installation in

water depths up to 520m.


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COMPLIANT TOWERSCOMPLIANT TOWERS


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COMPLIANT TOWERSCOMPLIANT TOWERS

•• Made of narrow, flexible towers with piling foundation.

•• Support conventional deck for drilling

and production operations.

•• Can sustain huge lateral forces and

deflections.•• Used in waters with 450-900m depth.


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TENSION LEG PLATFORMSTENSION LEG PLATFORMS


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TENSION LEG PLATFORMSTENSION LEG PLATFORMS

•• Made of floating rigs held by vertical,tensioned tendons.

•• Tension legs secured on seabed using

pile-secured templates.

•• Eliminate vertical movements to the

structure.•• Used in waters of up to 2,000m depth.


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SEASTARSEASTAR


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SEASTARSEASTAR

•• ‘Mini Tension Leg Platforms (TLP)’ • Cost less than normal TLP.

•• Can be used as utility, satellite or early

production platforms for deepwater

discoveries.

•• Deployed in waters between 200 to1,100m.


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FLOATING PRODUCTIONFLOATING PRODUCTIONAND SUBSEA SYSTEMSAND SUBSEA SYSTEMS

www.gomr.mms.govwww.gomr.mms.gov


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TYPES OFTYPES OF

FLOATING PRODUCTION SYSTEMSFLOATING PRODUCTION SYSTEMS

•• SPAR platforms

•• Floating production system (FPS)

•• Subsea system

•• Floating production, storage and

offloading (FPSO) system


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SPAR PLATFORMSSPAR PLATFORMS

Classic SPAR Classic SPAR Truss SPAR Truss SPAR Cell SPAR Cell SPAR


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SPAR PLATFORMSSPAR PLATFORMS

•• Among the largest platforms in use.• Consist of large cylinders supporting

fixed rig platform.

•• Cylinders are tethered by cables and

lines to seafloor.

•• Cylinders stabilize platform and allowmovement to absorb hurricane impacts.


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FLOATING PRODUCTION SYSTEMFLOATING PRODUCTION SYSTEM

ExxonMobilExxonMobil’ ’ ss KizombaKizomba-- A FPS, the world A FPS, the world’ ’ s largest, used offshore Angolas largest, used offshore Angola


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FLOATING PRODUCTION SYSTEMSFLOATING PRODUCTION SYSTEMS

•• Large vessels that can take, processand / or store oil & gas.

•• Moored to locations over long periods.

•• Main systems : FPSO (floating

production, storage & offloading), FSO

(floating storage & offloading) & FSU(floating storage unit).


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SUBSEA SYSTEMSSUBSEA SYSTEMS


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SUBSEA SYSTEMSSUBSEA SYSTEMS

•• Used in wells located on the seafloor totransport extracts via riser / pipelines toexisting production platform.

•• Moveable rigs are used to drill wells,

allowing for a platform to serve many

wells over large area.•• Used in waters up to 2,100m deep.


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SEMI SUBMERSIBLESSEMI SUBMERSIBLES


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SEMI SUBMERSIBLESSEMI SUBMERSIBLES

•• Mobile structures, some with ownlocomotion.

•• Can be ballasted up or down by

adjusting flooding of buoyancy tank.

•• Anchored by cables during drilling

operations or dynamic positioning.•• Provide excellent stability in deep,

rough waters between 180-1,800m.


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SUBMERSIBLESSUBMERSIBLES


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SUBMERSIBLESSUBMERSIBLES

•• Rarely used.•• Flexible - can be floated to shallow

water locations.

•• Ballasted to sit on the seabed at

locations.


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MOBILE OFFSHOREMOBILE OFFSHORE

DRILLING UNITSDRILLING UNITS

•• Drill ships

•• Jack-ups•• Tender-assisted drilling


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DRILL SHIPSDRILL SHIPS


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JACKUPSJACKUPS


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JACKUPSJACKUPS

•• Usually towed to shallow locationsand anchored using jack-like legs.

•• Legs lowered to seabed and hull

jacked-up clear of the sea surface.

•• Used in waters of depths up to

160m.


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TENDER ASSISTED DRILLINGTENDER ASSISTED DRILLING


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TENDER ASSISTED DRILLINGTENDER ASSISTED DRILLING

•• Features self-erecting drilling units andtender support vessels.

•• Used in fields with relatively few wells

and restrictions on topside weights.

•• Semi-submersible rigs are increasingly

used in TAD to reduce platform topsidesand jacket weight / cost.


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CRYSTAL GAZINGCRYSTAL GAZING

•• Bullish rig market ahead on the back ofBullish rig market ahead on the back ofrobust oil demand and high oil prices.robust oil demand and high oil prices.

•• More investments for building programs.More investments for building programs.

•• More rigs to be deployed inMore rigs to be deployed in deepwatersdeepwaters..

•• High refurbishment rate of older units.High refurbishment rate of older units.

•• Day rates to remain high.Day rates to remain high.•• More focus on risk mitigation and loweringMore focus on risk mitigation and lowering

cost of removing / dismantling rigs.cost of removing / dismantling rigs.


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CRYSTAL GAZINGCRYSTAL GAZING

•• More orders placed with up and comingMore orders placed with up and comingmanufacturers in developing countries.manufacturers in developing countries.

•• Rig prices to remain high due to tight yardRig prices to remain high due to tight yard

space, rising steel / equipment prices.space, rising steel / equipment prices.•• YardsYards--rig owners moving toward optionrig owners moving toward option

contracts that allow price renegotiation.contracts that allow price renegotiation.

•• Wither the high cost of rig rentals / fieldWither the high cost of rig rentals / field

development?development?


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[email protected]

THANK YOUTHANK YOU

License to drill (17Jun08).pdf

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