reaping the benefits of new contract models and proven
TRANSCRIPT
NOVOTEL LONDON WEST • LONDON, UNITED KINGDOM • 2-4 APRIL 2019Schlumberger-Private
Reaping the Benefits of New Contract Models and Proven Technology
Jostein TvedtOneSubsea
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Agenda
• Introduction to Dalmatian• Development Strategy• Proven Technology• Benefits of Contract Model• Project Execution Success• Conclusions
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Dalmatian Field
• Gulf of Mexico - Desoto Canyon Field Development
• 260 kilometers SE New Orleans, 2 well Tieback
• Daisy chained developmento Phase 1 – 35 km PIP oil well tieback & 38 km gas
well tiebacko Phase 2 – 18 km extension PIP ‘bolt-on’ to Phase 1o Future well opportunities
• Studies undertaken to look at IORo Water Injectiono Artificial Lift
DC4 #1DC48 #1
Subsea Pump• Lowers Wellhead Pressure• Increases Near-Term Production• Captures Additional Reserves
Petronius(Chevron)
DC134 #2
DC134 #1Future
DC91Future
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Development Strategy• Integrated Asset Modeling performed
o GAP, OLGA
• Subsea multiphase boosting yielded best economic benefits and the lowest overall risk
• Sanctioned on existing 2 well production• EPCIC contract
o Contractor to manage interface riskso Functional specificationso Fit for Purpose designo Reduced operator project team organization
• Several business models evaluatedo Milestone paymentso Performance Basedo Deferred payments
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Proven Technology
Statoil, Troll Hess, Ceiba C3/C4 Hess, Ceiba FFD Santos, Mutineer & Exeter CNR, Columba E BP, Schiehallion
Oilexco, Brenda Statoil, Tordis Woodside, Vincent Murphy, Azurite Total, Pazflor Petrobras, Albacora Repsol, Mont. & Lubina Petrobras, Barracuda
CNR Int., Lyell Total, CLOV Chevron, JSM Shell, Draugen Total, GirRI Statoil, Gullfaks ExxonMobil, JuliaPetrobras, Marlim
Total, MoHo
Statoil, Lufeng ExxonMobil, Topacio
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Proven Technology
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Accumulated operation experience of more than million hours
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Reaping the benefits of new contract model – EPCIC
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Completion
Separate milestones
Time
Delayed SURF award
Degree of misalignment
TraditionalCompletion
Project gates(Better interfacing)
Time
AllianceCompletion
SPC execution
SIC execution
Degree of misalignment
Alignment pre-award
Subsea Integration
Alliance award
Client ready to award contract SPC execution
SIC execution
SPC = Subsea Processing ContractorSIC = Subsea Installation Contract
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Team Involvement– EPCIC
Contract award
System engineering
Product engineering and fabrication Testing Transport Site receive
testTopside
installationSubsea
installationPre-
commissioning Commissioning Field Start-up
Subsea Installation Contractor*Subsea Processing Contractor**Team Involvement
Project Schedule
Transport Subsea Installation
Alignment pre-award
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Project Execution Success
• Great benefit seen from the EPCIC contracto Reduced cost and risko Fully integrated project teams from day oneo Fully Integrated Scheduleo Fully aligned from concept to executeo Less Interface management for operator and
contractor
• A small integrated team has provided an efficient execution with open communication
• Negligible variation orders
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Client requirement based on functional specifications
Further optimized by the integrated project team
Typical 2500 documents issued to operator 400 documents issued to operator
EPC Client Standard Specifications
EPCIC Functional Specification
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Project Execution Highlights - Product optimizationDesigned For InstallationDesigned prior to have SIC onboard
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Project Execution Highlights - Product optimizationDesigned For InstallationDesigned prior to have SIC onboard
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• System delivered in 23 months, from contract award to system start up.
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Project Success
• At system start-up more than 250% production increase
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Conclusions
• Subsea processing technology is a game changer for both green field and brownfield developments
• Our industry needs to be open to work differently from what’s been done in the past
• This story shows the great success with a new contract model, that benefit both operators and contractors.