Extension of Field Life on UKCS

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Extension of Field Life on UKCS

• C. Cranfield, A. Carr J. Webber
• Field Development Approvals

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Outline

• Background
• The prize
• Key messages
• Strategies
• Success factors
• View of the future

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Background

• UKCS is maturing
• Diminishing reserves in producing fields
• Reducing size of discoveries
• Strategies are evolving
• DTI role is to ensure all options are examined
• Study scope for extending field life
• Promote success factors

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Size of UKCS discoveries
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UK total remaining resource
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Developed Discovered undeveloped Reserves
BBOE
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Do nothing - Proven Probable alone
DTI targets
Target set by Task Force
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Upside - Proven Probable Possible
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5
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Target set by Task Force
MMBOE/D
3
2
1
0
2000
2002
2004
2006
2008
2010
2012
2014
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Key messages

• Reserves growth in existing fields extremely
  important
• Action over next few years is critical
• Action needed to gain further upside from
• Discovered undeveloped reserves
• Potential additional reserves
• Still need exploration success to meet Task Force
  target
• Proportion of gas reserves will increase

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Task Force action programme

• Increased collaboration
• Technologies for existing fields
• Through-tubing drilling - coiled tubing rotary
• Multi-laterals
• Under-balanced drilling
• SMART wells
• Technologies for new fields
• High resolution seismic dynamic reservoir
  modelling
• Long tie-back technologies

.
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Potential additional reserves

• Over 300 undeveloped discoveries
• Main barriers
• Low reserves
• Sub-surface technical issues
• Well deliverability
• Fluid/surface technical issues
• Distance from infrastructure
• PILOT / DTI action
• Structured interviews
• Workshops in 2001
• Satellite Accelerator initiative

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Adding value to mature fields

• Infill drilling
• Forties
• Clyde area
• Murchison
• Extension of wells to deeper targets
• Triassic reserves
• EOR
• Commercial successes
• Magnus pipeline

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• Images of channel systems by-passed and unswept
  oil
• Infill targets remain economic with new imaging
  technology

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Clyde area oil production
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Murchison life of field profile
Secondary Infills
Dev Drill
Plateau
Primary Infills
Harvesting
New Operator
B/D
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New breed of mature field operator

• Previous companies focus on new fields
• Smaller companies take control
• Reveal potential in satellites catchment area
• Add value by using existing technology
  innovatively
• Reduce platform running costs
• Extend field life

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UKCS success factors

• Focused technology application
• Drilling
• Wells
• Sub-surface
• Tie-back
• Collaboration on non-competitive issues
• Share risks and benefits
• Specialist vessels
• Supply chain efficiencies
• Reduced decommissioning costs

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Future for UKCS

• Entry of new dynamic, smaller players
• DNO, Venture, Highlander, Veba
• New working methods
• Collaboration
• Joint drilling campaigns
• Overcoming technical and logistical problems
• Sharing of resources
• Alignment of partner interests
• Continuing technical innovation