Growth and cost challenges
Gro Kielland , Managing Director of BP Norge
2
Topics to be covered
• BP- from a middle sized to Supermajor
• North Sea Cost Challenge
• BP Norway significant growth
3
Who we are
BP is an oil, gas, refining & marketing and renewables company
We employ 96 200 people
We have operations on 6 continents and in over 100 countries
...one for the largest E&P companies in the world
...over 28 500 service stations worldwide
...serving 13 million customers every day
...one of the largest producer of solar panels
4
Reserves replacement
Reserves replacement for subsidiaries + associates, excludes the effects of
acquisitions & divestments, SEC basis
5 year moving average
0
20
40
60
80
100
120
140
160
85 86 87 88 89 90 91 92 9394 95 96 97 98 99 00 0102 03 04 05 06
%
5
McKinsey 2006 North Sea Benchmarking
0
20
40
60
80
100
120
140
160
180
200
1990 1995 2000 2005 2010 2015
Opex per barrel for producing fieldsIndexed to 100 in 2006
Historical Forecast
Netherlands
UK
Norway
Netherlands
UK
Norway
3,976
2004
4,389
2005
+10%
1,838
2004
1,717
2005
-7%
2.16
2004
2.56
2005
+18%
Lifting Cost*$ Million
ProductionMillion boe
Unit Lifting cost$/boe
*Lifting cost includes partner billed OPEX, excluding tariff and transport costs (Consistent group of 35 assets in Denmark, UK and Norway from the McKinsey Benchmarking exercise)Source: McKinsey analysis; McKinsey 2006 North Sea Benchmarking; Wood MacKenzie
6
2007 BP’s North Sea Cost Map
c. $5bn of gross external spend
Seismic
Drilling & Wells
Operations
Business Services
Major Project
s
Subsea
Logistics
15%
11%
21%
5%
26%
21%
7
• Partner in 13 licenses
• Operator at 10 of these
• Operator of five producing fields; Ula,Tambar, Valhall,Hod and Skarv
• Partner in the Draugen field
• New field center at Valhall
• Skarv Idun field development
• Connecting the Blane field to Ula
= Core Areas
Our activities offshore Norway
8
BP Norway production profile
Source: 2007-2009 : NB08, 2010-2017 : RNB2007
-
10
20
30
40
50
60
70
80
90
100
2 007 2 008 2 009 2 010 2 011 2 012 2 013 2 014 2 015 2 016 2 017
mbo
ed n
et
Total BP Net
9
Key facts Skarv Idun development
Production start Accommodation Oil production Gas production Topsides Hull Turret/mooring system Wells Sub sea templates
3kv. 2011100 single bed cabins85 000 b/d15 mill sm3/d16 000 tonne40 000 tonne 4 000 tonne165
• 16,8 mill Sm3 oil & condensate
• 48,3 billion Sm3 gas
• Investments ca .31 billion NOK
• Phased development with early oil production
• 80km long 26" spur line to Åsgard Transport System
10
Overview Valhall Field Development
Flank South
Flank NorthEkofisk
Lista
Valhall Complex
New PH
Pipeline from HOD
HVDC Cable
Oil Pipeline to Ekofisk
11
BP in Norway
•Long term perspective, at least to yr 2050
•Progressive user of new technology
•$ 6-7 billion gross to be invested the next 4 yrs
Top Related