Collaborative Mechanisms and Activities to

Progress Industry Required Technology

Development

Dr Patrick O’Brien, FREng

Chief Executive, Industry Technology Facilitator

MCE Deepwater Development Conference, 2015

24th – 26th March, 2015, London

Increasing Value through Industry Collaboration

Why ITF?

Make Technology Impactand

Bring Innovation to our Members

Current ITF Members

ITF Role

An intermediary that can impact

“Creating Stakeholder Value”

“Focusing on Common Industry Challenges & Opportunities”

• Challenge Profiling

Prioritising, articulating and championing

• Technology Profiling

Landscaping, gaps, road maps

• Facilitating and Portfolio / Programme Management

Development through to deployment

Developers ServiceCompanies

Operators

• Access and Insight

Customer validation

• Technology Funding

• IP Protection

• Access to Innovation

SMEs, Entrepeneurs, Universities

• Leverage Funding & Mitigate Risk

• Knowledge Exchange

• Industry Engagement

• Access to Innovation

• Customer Validation

• Deployment Mechanism

• Industry Engagement

Regional Collaboration

linked to global

Challenges, Projects

and Developers

• Global Members

• Active Hubs:

North Sea

Arabian Gulf

Brazil

Australia

ITF Multi-faceted Objectives(Not just JIPs)

• “..a critical and valued mechanism to execute and deliver collaborative technology development and deployment for the global oil and gas industry”

• “.. guiding from development through to deployment, and increasing technology deployment opportunities…”

• “.. a trusted mechanism to enable innovators access to operators”

• “…providing developers voice of customer validation for technology needs, thus reducing technology development risk”

• “….linking active regional collaboration with global challenges, projects and developers”

• “… working on projects that make an impact on the industry”

The Collaborative Technology Space

The Collaborative Technology

Space

New Frontiers –few current solutions

Fundamental science &

engineering methodologies

Technology Qualification

& Trialling

Improved design & analysis

methodologies

Levering technology

spend where technology is

an enabler

Members wanting to

demonstrate there is a market for

the technology

Focus on:• Common industry

challenges• Pre-competitive

technology development

Innovation

• Innovation comes with risk

• Mitigate risk through collaboration

• Lever technology budget by sharing cost

• Use ITF Process to fund alternative solutions

– Share outcomes from a group of projects

Potential JIP Models

• Traditional Approach– SME Developer / Research Institute / University JIP Proposer supported by a

number of Members

– Small, focused, aligned members to drive technology to deployment, if possible

• Network, Information Sharing, Industry Practice JIP– Wide member participation to achieve buy-in

– Currently setting up Subsea Processing and Heterogeneous Reservoirs Networks

– Also SURF IM is an ITF Facilitated network

• Service Company Member Led JIPs– Case A: Operator Member financial support levers significant Service Company

financial investment and provides “Voice-of-Customer” input to mitigate investment risk

– Case B: Service Company Member introduces SME Project for Operator Member Support with Service Company Member providing in-kind implementation support – “Deployment Mechanism”

ITF Theme Activity2014 Project Launches

RIBFAT –

Risk Based Flow Assurance Toolkit; Phase 2

Osorb® -

Techno-economic evaluation, design & construction of an offshore Osorb® regeneration package

MOBILEspan –

Modelling & prediction tool for mobile seabed & free span behaviour -Phase 2

ABC –

Answering the Basalt Challenge; feasibility Study

QUAFF –

Quantification of 3D Fault Zone Geometries & their incorporation in modelling practice

ABOM –

Improvements to Tropical Cyclone Forecasting, North West Australia

• Flow Assurance

• Produced Water Treatment

• Pipelines

• Structural Geology

• Geophysics

• Cyclone prediction

£3.536 million

Current Portfolio of 21 Running JIPs

Continuous Circulation System

JIP through ITF

• Continuous circulation of drilling fluid during

drill pipe connection

• Maintains steady downhole pressure

environment particularly beneficial where gap

in pore and fracture pressure gradients is very

narrow

• £1.8m direct member investment through ITF

to Maris International

• Commercialised by NOV now with over 2000

connections in the field by Statoil,

ConocoPhillips and Petrobras

• New JIP Phase to include continuous rotation

and drilling, and to make compact

Full Wave Gamechanger JIP

through ITF

• Joint 3D Inversion of Full Wave Seismic

Data for Advanced Subsurface Imaging

and Hydrocarbon Reserve Mapping

• R&D Team Imperial College London

• £5.0m direct member investment

through ITF

• World class research and advanced

numerical algorithms for industry

application

• Just launched Phase II, with further

£2.5m investment

Acoustic

Elastic

We Have a Plan

• Rolling Technology Plan– Backed by membership & Industry Review

– Industry relevant and making impact• Drilling and well construction

• Integrity

• Enhanced oil recovery

• Smart fields

• Reservoir Imaging

• Regional Activities– Australia: Floating Production Systems & Mooring Integrity

– GCC: Development of GCC Technology Roadmap – Strong Subsurface and EOR Themes

– UK Technology Leadership Board• Standardised Low Cost Well Construction

• Small Pools

• Asset Integrity

– Brazil: Early Project Launches; Set-up ITF Brazil; Brazil TechnologyRoadmap• Federal University of Paraiba: Produced Water Treatment by Adsorption

• University of Parana: New Technology Multiphase Flow Metering

ITF Proposed Theme Activity 2015

Drilling & Wells Subsurface SubseaFacilities &

ProcessDecommissioning Other

OngoingActivity

Q4 2014

• Drilling Improvement

• HeterogeneousReservoirs

• GCC Roadmap

• Subsea Processing • Floating Systems• Brazil Water

Management

• Ad hoc Call

Q1 2015

• EOR in CarbonateReservoirs

• Asset Integrity • Ad hoc EOIs (Q4 2014)

• 7 Calls (Q4 2014)

Q2 2015

• Drilling Technology Roadmap Initiative

• Carbonate Reservoir Evaluation

• Subsea Processing Network pre-kick off at OTC

• Plugging & Abandonment

• Ad hoc Call• Cross-Industry

Collaboration

• TCMs (Q4 2014)

• Members Meeting

• Brazil Call for Proposals

Q3 2015

• Well Integrity & Intervention

• Smart Fields • Ad hoc Call • Ad hoc EOIs(Q2 2015)

Q4 2015

• Improved Reservoir Imaging

• Deepwater Production Challenges

• Ad hoc EOIs (Q3 2015)

• TCMs (Q2 2015)

• Members Meeting

Reserve Topics

• Drilling & Wells Technology

• Unconventional Reservoirs

• Long SubseaTiebacks

• Subsea Power• PW Management

• Small PoolsDevelopment

ITF 2015 Technology Programme (1)

Fundamental research around EOR mechanisms

EOR in Carbonates

Inspection & monitoring techniques

Pipeline corrosion models and inspection

Integrity Management

60 Ad hoc proposals received.

8 current calls

Ad Hocs & Current calls

Sub-salt microbialitereservoir characterisation

Attribute workflow to characterise karstic reservoirs

Pore pressure prediction

Carbonate Reservoir Evaluation Alternatives to

cement plugs

Annulus integrity assessment before P&A

Cutting and disposal techniques

Methods to deal with downhole cables

Plugging & Abandonment

Technology transfer from other industries e.g. defence, aerospace, nuclear

Cross Industry Collaboration

Q1

Q2

ITF 2015 Technology Programme (2)

Extended Reach Drilling

Drilling depleted/Abnormal Pressure Reservoirs

Slender Wells

Well Integrity &

Intervention Robotics

Subsurface sensors

Smart inflow control devices

Smart Fields Further Ad hoc call

Ad Hocs2015

Improving sub-seismic detail

Controlled Source Electromagnetic (CSEM) and other non-seismic geophysical techniques

Predicting ahead of the drill-bit

Resolution of seismic imaging

Improved Reservoir Imaging New riser materials

Flow assurance

Artificial lift

Deepwater Production Challenges

Q3

Q4

Reserve topics – drilling & wells technology, unconventional reservoirs, produced water

management, long subsea tiebacks, subsea power.

We Have a MechanismProject Launch Timeline

Topic ID & Validation

Workshops/ Member

Consultation/

ID Champions & discrete

workstreams

Proposal -Front End

Design

Call For Proposal Execution

Developer submissions/

Due diligence/ Member Review & Selection

Commercial & Contract Negotiation

Project Launch

16 Weeks

SURF-IM NetworkSubsea Integrity – London October 2014

• Subsea Umbilicals Risers & Flowlines - Integrity Management Network

• ITF launched JIP; Wood Group Kenny (WGK) developer

– Operator only forum; Anadarko, BG, BP, Chevron, Eon, ExxonMobil, Hess, Husky

Energy, Maersk, Petronas, Shell, Suncor, Total, Tullow and Woodside

– £15k annual fee, 3 x face-to-face meetings per year

• Purpose:

– Networking, open-sharing, lessons learned database

• Main areas of discussion at Oct 14 meeting:

– Long distance (300km) tiebacks

– Flexible flowline upheaval buckling

– Life extension of subsea structures

– WGK delivered subsea reliability study

– Enhanced asset integrity using Robotics/AI

– Subsea Control Module reliability

SURF-IM NetworkActivities

• Subsea Control Module reliability viewed as an industry systematic problem

with the high failure rate of SCMs creating operational challenges:

– SCM Reliability Survey Report constructed with network member input

– High level findings on failure type:• 32% Analogue Interface

• 29% Hydraulic Leak

• 42% Unknown electrical cause of failure

– Aim to improve SCM Reliability for new build, leveraging brownfield experience and

lessons learned

– Proposed Action: Engage with SCM vendors, initiate dialogue, align and set

realistic goals

– The expectation is that vendors will take ownership and work with operators to

evaluate process and propose improvement opportunities

– Next steps:

• Invite vendors to participate workshop to discuss SCM reliability issues

• Propose launch of a SCM Reliability JIP

* Results presented with the kind permission of WGK from a survey

conducted by WGK with SURF IM network members.

Subsea ProcessingITF Trusted Technology Network

• Trusted Technology Network Objective; – To move the industry forward in the area of Subsea Processing by

facilitating the development and implementation of Subsea Processing

technology.

• Why?

– Limited uptake of Subsea Processing technology.

– Confidence in reliability and perceived high risks of implementing

Subsea Processing technology.

– Address causes of high qualification and testing costs.

ITF Subsea Processing Network Scope of Activities

Facilitate Access to Onshore SS Test

Facilities

API 17Q Completion to

Improve Qualification

Processes

Identification of Potential Vendor

Solutions

Facilitate Access to Pilot Fields for

Testing

• Moving the SSP Industry Forward

• Driving Technology

Developments Forward

• Understanding & Reducing

Implementation Risks

• Improving Member

Understanding & Competence

SSP Reliability Issues

SSP Qualification

Issues

Shared SSP Lessons Learned

Subsea Processing Network

ACTIVITIES BENEFITSINPUTS

Activities listed here are suggestions based on workshop discussions;

potential network participants views are

sought.

ITF & IntecSeaContribution & Activities

Contribution Activities

ITF Membership Deep Technical expertise Promote network concept to

membership

Promote network concept to

industry

Ability to initiate collaborative

activity

Industry insight & understanding

of needs

Secure participants and establish

contractual arrangements

Work with ITF to define

appropriate and relevant agenda

items

Trusted neutral industry partner Subject Matter Expert (SME)

resources

Define network agenda & scope Direct contribution to technical

content by SMEs

Knowledge of industry needs Strong industry network &

reputation, including active

participation in Deepstar, MPUR,

RPSEA, SUT, API & SPE initiatives

Organise & administer network

activities including meetings

Identify relevant 3rd party

contributors to technical content

of meetings

Project management resources Vendor & technology “neutral” Prepare & deliver output from

meetings and other activities

Facilitate representation of

Network members views on

relevant industry committees

Identify, promote and pursue

opportunities for spin-off activity,

including JIPs

Subsea Water Injection & Treatment

Challenge

• Challenge:– Increase in produced water in late field life

– Limited topsides water handling capability

• Solution– Separate water subsea and re-inject (PWRI: Produced Water Reinjection)

• Benefits– Less energy and infrastructure (pipelines and risers) pumping water

topsides

– Reduced back pressure on wells thus increasing recovery

– Enabling new tie-ins for marginal and brownfield developments

• Subsea Challenge– Continuous monitoring of water quality subsea for discharge into reservoir

or environment• NEL are working on this problem

– Cost effective subsea water separation for marginal, shallow water North Sea developments

p.obrien@itfenergy.com

Conclusions

• ITF are and effective mechanism

for collaboration on technology

development and implementation

• Industry can drive our agenda to

maximise impact

• Case studies demonstrate

outcomes