Shell Exploration & Production

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Morocco Offshore Potential and Promises

John Crowle

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Contents

1. Morocco – the background to deepwater exploration

2. The ingredients for exploration success Commercial Technology Geology

3. What happens next?

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Morocco - the background to deepwater exploration

History of offshore exploration without commercial development

Unexplored deepwater acreage

Growing industry success in deepwater developments elsewhere

Improved risk reduction tools based on 3D seismic

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N0 100 200 300 km

MoroccoSHELL INTEREST BLOCKS (OPERATOR)

MOROCCO

NON SHELL BLOCKS

AGADIR

RABAT

RECONNAISANCE LICENCES

SPAIN

SHELL INTEREST BLOCKS ( NON OPERATOR)

Rimella

Cap Draa

Shell EP in MoroccoRimella and Cap Draa

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Ingredients for success - Commercial

Straightforward tax/royalty regime

10-year ‘tax holiday’

Clearly defined work programme

Informed, professional and challenging local partnership

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Ingredients for success - Technology

Exploration risk reduction

An understanding of the environmental

sensitivities

Environmentally sensitive, safe drilling operations

Deepwater development skills

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40404444108108 8181

101101

AmplitudeAmplitudemeasurementsmeasurementsAmplitudeAmplitudemeasurementsmeasurements

Technology – seismic attributesTechnology – seismic attributes

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600 m

800 m

1000 m

1200 m

1400 m

1600 m

1800 m

2000 m

2200 m

2400 m

Cognac1978

Bullwinkle1988

Conoco(Julliet)1989

Petrobas(Marlim)

1989

Na Kika2003

Petrobras(Roncador)

1999

Mensa1997

Petrobras(Marlim Sul)

1997

Ursa1999

Ram-Powell1997

Mars1996

Auger1993

Technology - deepwater milestones

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Technology - Na Kika development concept Gulf of Mexico

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Ingredients for success - Geology

A thick sediment pile – up to 10 kilometres

Potential for

Jurassic and Cretaceous source rocks

Cretaceous and Tertiary reservoir rocks

Structural development to create traps – salt

movement

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shallow marine deposits

Channelised fans(West Africa, West of

Shetlands)

Unconfined fans

(North Sea, Brazil)

deep marine sandsdeep marine shales

salt

Confined fans

(Gulf of Mexico)

Geology – reservoir rocks

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5 km

Salt Ridges & Salt Ridges & Mini-Basins Mini-Basins

2 sec

6 sec

4 sec

Inverted Inverted Structures Structures

Inner Diapir TrendInner Diapir Trend

WestWest EastEast

Geology – trapsAgadir - Tarfaya Basin Play Domains

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Geology - Agadir–Tarfaya Basin play domains

Diapirs

Inversion structures

Salt ridges

Toe-Thrust

Unconfined By-Pass Slope

Platform / shelf

Agadir

0 25 50 75 100 km

3D SEISMIC

3D SEISMIC

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Geology - play segments

Salt Ridge Play

Middle Miocene Top

Base Miocene

Base Tertiary

Top Albian

Top Jurassic

?

Salt

Sub-Salt

Truncation ?

Sub-Salt

Truncation ?

?

Salt

Sub-Salt

Truncation ?

NW SE

Sub-Salt

Truncation ?

Salt

2 km

Base Tertiary

Top Jurassic

Base Tertiary

Top Jurassic

Top Basement

Salt

2 km

NW SE

Toe Thrust Play

Salt

Base Tertiary

Top Jurassic

2 km

NW SE

Inverted Structures Play

Base Tertiary

Top Jurassic

Salt

2 km

NW SE

Salt Diapir Play

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Drill potential hub class prospect

DRY

Evaluate remaining exploration

potential and decide whetheror not another hub class

prospectwill be drilled.

HUB SIZE

Appraise and Develop

Re-evaluate remaining exploration

strategy

Evaluate remaining exploration

potential and select most promising

prospect that is either a hub on it’s

own or can help in justifying a cluster development

TOO SMALLFOR HUB

Exploration and Development Strategy

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Morocco – offshore potential and promises

The political will is there

The commercial terms are there

The geology has the right

elements

The seismic has been shot and interpreted

Time to drill