Transforming mature fields for extended life

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Transforming mature fields for extended life

• Anne Drinkwater, Managing Director BP Norge AS
• ODV Conference in Bergen, October 23, 2002

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Why is this important?

• Declining production and increasing unit costs
  characterize many fields on the NOCS
• 20 fields or 55 of NOCS production is from
  fields on decline
• Huge benefits can be created if we can meet this
  challenge.

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Volume is one access point
BP Southern Area remaining reserves 1989-2005
350,00
300,00
250,00
200,00
mmbl oil
150,00
100,00
50,00
0,00
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
BP will over the period 1990-2004 (15 years) have
produced 400million bblsfrom the Southern Area
while increasing Remaining Reserves!!!
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Volume is one access point
BP UKCS and NOCS reserves
Engagement, Technology and Commercial Innovation
1 years production
Tech. Limits
Operational excellence, reservoir management and
cost productivity
Technically Challenging
Developed Producing
Projects
Quality Brownfield
Capital productivity
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Costs can provide another
Mature North Sea Field
End Of Production
Remaining Production (mmbbls)
Cost
2001
90
2002 Median
150
Top Quartile
185
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
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Needs an inclusive approach
Frame conditions
Technology
Engagement of Unions Workforce Licence
Partners Authorities
Vision
To grow BP Norway as a brand ledsustainable
business
Cost structure
Subsurface
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Good maintenance and costs
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Incremental steps wont work
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The challenge for existing fields
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Remote cooperation
Onshore Operation Center
Offshore Valhall Field

• Typical Support Staff
• Directional Drilling Specialists
• Logging Engineers
• Drill Data Engineerss
• Geomechanics
• Mud engineers
• Geologists

Drilling Data Center
Fibre Link
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New ways of working
Onshore Control Room
Information Hub
Data
Remote collaboraton rooms
Other Operators
www
External Experts
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Oil industry transformation 1
EP Support Services Building and Maintenance of
installations Building and operation of
plants Total
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Challenges for next transformation

• Inbalance in pay onshore and offshore
• Dispersed workforce
• Demographics motivating a mature workforce

Extending field life secures jobs!
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Opportunities for the workforce
Whats this all about?

• Varied career path between offshore and onshore,
  operations and projects
• More opportunity to learn and develop
• Opportunity to transfer experience
• High technology work environment
• Career in a global company

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Change requires full involvement

• Steering group with respect to
• All change initiatives
• Holistic and integrated change approach
• Employee Involvement
• HR projects

• Members
• K-HVO
• Union Leaders (3)
• HR Manager
• Operations management (3)
• Meets monthly.

Focus on people, organisation and communication.
It does not deal with commercial issues.
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Challenges

• Reliability
• Establishing safe, effective work processes in a
  remote (co-)operation environment.
• Attracting people

The challenge around human factors is greater
than the technology challenge.
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Example the Valhall Optimiser
Onshore Control Room
Plant Model
Control System
Optimiser
Offshore Control Room
Well Model
Export Economics
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Example external access to experts

• External experts provided a secure window into
  our operations.
• Offsite vendor remotely monitors compressor and
  turbine performance and provides model results
  via web.
• Proactive condition monitoring reduces upsets and
  emissions.