Challenges for offshore development in Colombia
V Colombia Investment ConferenceOctober 2012
Álvaro Racero Baena
Caribbean Regional Executive Director
Agenda
2
1. Worldwide Offshore activity
2. Repsol offshore activity
3. Offshore Colombia Challenges
4. Summary
Growth in offshore projects:
Source: IHS CERA, Capital Costs Analysis Forum–Upstream Houston, May 2012
Onshore and Offshore Projects Production Start Dates
3
Source: IHS CERA* Deepwater >1000 <5000 feet; Ultradeep Water: >5000 feet.
Worldwide offshore production
Deepwater continues to be an important oil supply in the world (not only in US) and will continue to increase in the future.
The contribution from deepwater fields rises from around 5.4 Mbd in 2011 to 11.2 Mbd in 2035.
4
Rigs Availability
Source: ODS-Petrodata, Morgan Stanley Research, October 2012 5
Major offshore drilling basins (rig supply/utilization)
Repsol: Offshore presence around the world
Morocco
USA
Canada
Spain
Norway
Colombia
Cuba
Sierra Leone
Liberia
Venezuela
Trinidad and Tobago
Guyana
Indonesia
Offshore activity in 20 countries (operator in 14)
Brazil
* Pending of official ratification
Portugal
Ireland
Tunusia
Australia
* Bulgaria
Angola
* Namibia
OPERATOR and joint venture
NON OPERATOR
Exploration
Productión
Services Contract in production operations
Acreage @ September, 30th 2012
DeepwaterOperated andjoint venture
Non OperatedOperated andjoint venture
Non Operated
93 73 162 103
40.837 91.450 40.555 17.842
25.590 26.697 21.204 5.848
431
190.683
79.339
Gross Acreage
(km2)
Net Acreage
(km2)
Nº of Blocks166 265
132.286 58.397
52.286 27.052
RESUMEN
DeepwaterTOTAL@ 30 Sept 2012
Shallowater
6
Repsol:Offshore Exploratory and Appraisal Wells
Deepwater non operated (dw)
2008-2012: 52 Offshore exploratory (Operator & joint venture in 22) 32 deepwater (Operator & joint venture in 10)
2008-2012: 52 Offshore exploratory (Operator & joint venture in 22) 32 deepwater (Operator & joint venture in 10)
Deepwater operated & joint venture & (dw)
YEAR COUNTRY WELL
GuaráItatiaia 1Saleta (Obelix)
US AtlasSuriname West Tapir-1
Abaré WestBogoria Iguazú Lençois PanoramixPialamba ( Piracuca)Piracuca AppraisalTurkanaAngosturaBuckskinLubina 1Montanazo D 5
Libya A1 NC 202 (Barracuda)Morocco AnchoisSierra Leone Venus B-1Venezuela Perla 1X
Asterix Creal-BMalbecPanoramix-2 AppraisalPepePiracuca 2 (bl.East) Seat
Sierra Leone MercuryVenezuela Perla 2 Appraisal
Carioca NE (3 SPS-74)GaveaGuará Norte (3-SPS-69)MalombeBuckskin appr (KC785#1)Garden Island Bay
Liberia Montserrado-1Deep ThonMerou
Noruega Heilo (7124/4-1S)Abaré (4-SPS-81)ItaboraiMagadi (1-ESS-210)Pao de AçucarSagitario (1-SPS-98)Tingua (1-RJS-685)Vampira (1-REPF - 4 - SPS)
Cuba Jagüey-1Guyana Jaguar-1xNoruega Ulvetanna (3/4 2S)
Jupiter 1Mercury 2
Brazil
2008
2010
Brazil
2009
Brazil
US
Spain
US
Marruecos
2011
2012
Brazil
Sierra Leona
Brazil1
86
3 44
8
37
8
2008 2009 2010 2011 12@sept
Operated & Joint Venture Non Operated
7
Repsol: Deepwater Operated Exploratory Wells
8
Repsol: acreage in Colombia
9
Repsol has 10 blocks in Colombia, 3 in the offshore (Tayrona, RC-11 and RC-12)
Proyecto Cardón IVUbicación y Concepto de Desarrollo – Fase 300
Cardon IV East Block
Perla 2ST1
Perla 5
Cardon IV West Block
Perla 3x
Perla 1X
Perla 4x
Refineria Amuay
Refineria Cardon
Perla-2ST1
Perla-1X
Perla-4X
Perla-5
Perla-5
Perla-3X
El Campo Perla está localizado aproximadamente 50Km al oeste de la Península de Paraguana (Golfo de Venezuela) en lo que se denomina el Bloque Cardón IV West.
Validez de la licencia es de 30 años desde el 2 de Febrero de 2006
PDVSA tiene el derecho de entrar en la asociación hasta con el 35%, hasta 120 días después de declaración de comercialidad
Gas Original en Sitio = 17 TCF/ Reservas = 8.1 TCF GSA firmado el 23-12-2011 Declaración de comercialidad publicada el 15-08-2012 Plan de desarrollo aprobado el 20-08-2012
5 Pozos Perforados : 4 verticales y 1 sub-horizontal.
14” Tubería del Pozo 14 Tubería del Pozo
30” Tubería de Exportación Multifasica
Plataforma de Interconexión
Perla 1x
Estructura livianaPerla 2ST1
Estructura livianaPerla 3
PROJECT COSTS &
COST CONTROLS INFRASTRUCTURE
& MARKETS INTEGRATION
QUALIFIED STAFF
EQUIPMENT, AVAILAVILITY
AND LEAD TIME
EFFICIENT APPLICATION
OF TECHNOLOGY
LEGAL FRAMEWORK
(STABLE, ADECUATE)
CONTRACTS & CONTRACTING
STRATEGY
GAS PRICES
Challenges for offshore Colombia
INTEGRATED DYNAMIC
TEAMS
HSE AND ENVIRONMENTAL
IMPACT
REMOTENNES AND LOGISTICS
IHS CERA Upstream Capital Cost Index
•Steel•Land Rigs•Offshore Rigs•Engineering and Prof. Management•Equipment •Construction labour•Yards Fabrication•Sub-sea•Bulk materials•Offshore installation vessels
Index includes:
$12,000 =
$40,000 =
$48,000 =
2002 Fiat Punto
2007 BMW 320
2012 AUDI A6
Valve (super duplex SS)
2003
2007
2012
Cost inflation
•Assuring the appropriate human and technical resources
•Developing time and cost effective projects that consistently provide added value to the business
•Predicting project costs and schedule in a reliable way
•Manage opportunities and project risks during all phases of the project lifecycle.
•Improve communications establishing a common language
Mitigating the Risk of project executionthough a consistent and proved methodology
-
5,00
10,00
15,00
20,00
25,00
Dic-99 Abr-01 Sep-02 Ene-04 May-05 Oct-06 Feb-08 Jul-09 Nov-10 Abr-12 Ago-13
Norte de Europa
Henry-Hub
Mercado Asiatico
Comparación del precio del Gas en diferentes mercados (USD/MMBTU)
Offshore Guajira wellsStatistics by spud year, WD, TD
Araza-1
~ 20 years no wells
Spud year
Water Depth
~ all the well in shallow water
Variable TD
18
An integrated project to improve the subsurface imaging through seismic processing
Leaded by the Repsol subsurface team in Houston
Kaleidoscope
Kaleidoscope
• Applying state-of-the-art algorithms to resolve complex geological geometries
• Either in sub-salt environment or in complex thrust belts
Input: Delivered study (ies).Output: Updated Geopressure model, shallow hazards and geomechanic results, gathered and completed in the PDDP.Participants: Project manager, manager of Operaciones Geológicas, Drilling Manager, Geopressure Team.
Description: The Team coordinator and the Drilling Manager validate and approve the study and its conclusions with the support of the recommendations of the Team specialists. The Project manager enters the conclusions and recommendations of the study in the PDDP.
Geopressure analysis process
Technical maturityDesignation
Call for the Geopressure team
Data preparation
Team meeting
Budget approval
Study completion
Study approval
PDDP
• 7 areas of coral-reefs
• 9 bird sanctuaries including the protected Nariva Swamp
• Several turtle nesting beaches
• Cost line geomorphologically complex with 8 zones particularly sensible to oil spills
• 6 zones of artisan fishing
• 9 types of sediments, with 4 types of benthonic communities
Biodiversity, a must to preserve
Summary
Improve quality of subsurface image and capabilities in Seismic Processing. Improves well prediction. (Kaleidoscope/Phoenix Project)
Multidisciplinary geopressure group to improve on the well prognosis for areas with limited well data available
Operational Deep-Water capabilities with an offshore drilling group in Houston which give support, supervise and design all offshore drilling operations.
IPM and adequate contracting strategies to minimize risks of cost overruns
Repsol’s regulatory and drilling groups have been actively engaged with all of the industry initiatives related to the new and evolving regulations in the GOM.
Along with 23 other operators in the GOM, Repsol has elected to join the Helix Well Containment Group (HWCG), one of the two groups approved by BOEMRE, to find solutions for spill containment.
22
Thanks