Embed Size (px)
Citation preview
NORTH SEA REGION
Richard Stark Project Services Manager
Apache Subsea Projects
Certain statements in this presentation may contain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 including, without limitation, expectations, beliefs, plans and objectives regarding production and exploration activities. Any matters that are not historical facts are forward-looking and, accordingly, involve estimates, assumptions, risks and uncertainties, including, without limitation, risks, uncertainties and other factors discussed in our most recently filed Annual Report on Form 10-K, recent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K available on our website, http://www.apachecorp.com/, and in our other public filings and press releases. These forward-looking statements are based on Apache Corporation’s (Apache) current expectations, estimates and projections about the company, its industry, its management’s beliefs and certain assumptions made by management. No assurance can be given that such expectations, estimates or projections will prove to have been correct. Whenever possible, these “forward-looking statements” are identified by words such as “expects,” “believes,” “anticipates” and similar phrases. Because such statements involve risks and uncertainties, Apache’s actual results and performance may differ materially from the results expressed or implied by such forward-looking statements. Given these risks and uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. Unless legally required, we assume no duty to update these statements as of any future date. However, you should review carefully reports and documents that Apache files periodically with the Securities and Exchange Commission. Cautionary Note to Investors: The United States Securities and Exchange Commission ("SEC") permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable, and possible reserves that meet the SEC's definitions for such terms. Apache uses certain terms in this presentation, such as “BO resource,” “BO Potential” and other similar terms that the SEC guidelines strictly prohibit Apache from including in filings with the SEC. “BO Resource,” “BO Potential” and other such terms do not take into account the certainty of resource recovery, which is contingent on exploration success, technical improvements in drilling access, commerciality and other factors, and are therefore not indicative of expected future resource recovery and should not be relied upon. Investors are urged to consider carefully the disclosure in Apache’s Annual Report on Form 10-K for the fiscal year ended December 31, 2011, and amendments thereto, available from Apache at www.apachecorp.com or by writing Apache at: 2000 Post Oak Blvd., Suite 100, Houston, Texas 77056 (Attn: Corporate Secretary). You can also obtain this report from the SEC by calling 1-800-SEC-0330 or from the SEC's website at www.sec.gov
FORWARD-LOOKING STATEMENTS
2
Presenter Richard Stark, Project Services Manager, Apache North Sea
Itinerary Safety
Apache Corporation
Apache North Sea
Projects Group
Subsea and Major Projects
Developments
Procurement
Questions
INTRODUCTION TO APACHE
3
45 minutes
Expectations and Values
◤ Working Safely is non-negotiable & will not be compromised
◤ Personal Responsibility for Safety is a key expectation
◤ APEX Standards (Apache HSE Expectations) must be followed
Performance Measurement & Driving Continual Improvement
◤ Regular Auditing to confirm compliance
◤ Challenging Key Performance Indicator’s set annually
◤ Certified Environmental Management System in place
APACHE SAFETY
4
THE SAFETY MESSAGE
5
6
Corporation
1954 - today
APACHE – A GLOBAL COMPANY
7
North Sea
Egypt
Australia
Central
Canada
Argentina
GOM Shelf
Julimar – tie back to platform Conniston – Tie back to FPSO Wheatstone - LNG plant Macedon - Onshore Balnaves – FPSO
Kittimat pipeline
Deepwater
FASP
Permian
Kenya
New Zealand
Surinam
0
50
100
150
200
250
300
350
400
450
500
550
600
650
700
750
800
8501
99
2
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
E
• 3 billion boe of proved reserves
• 5,300 employees worldwide
• Traded on the NY stock exchange
• $35 billion market capitalisation
• Member S&P 100
• No 154 in 2012 Fortune 500
• $15 billion of aquisitions since 2010
• Top 10 UK tax payer
MB
OE/
D, N
et
STRONG, INDEPENDENT AND GROWING
2012: 6-9% Growth
NOTES: 1. Established 1954
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
APA
MAINTAINING FINANCIAL DISCIPLINE
9
1. Source: Goldman Sachs. Peer companies in group displayed: Anadarko, Berry, Bill Barrett, Cabot, Chesapeake, Devon, EnCana, EOG, Forest, Hess, Newfield, Noble, Occidental, Pioneer, Plains, Quicksilver, Range, SandRidge, Southwestern, Talisman and Ultra
2011 Net Debt / EBITDA
2. EBITDA – Earnings Before Interest, Taxes, Depreciation and Amortization
NOTES:
REVENUE
10
Permian 14%
Central 5%
Gulf Coast 3%
Canada 7%
GOM Shelf 13%
GOM Deepwater 2%
North Sea 17%
Australia 9%
Egypt 27%
Argentina 3%
2012O- $17.0 billion revenue
Liquids = 83% of revenue
International = 57% Revenue
Oil Brent Linked = 72%
Int’l Liquids
49%
N. America Liquids
34%
N. America Gas 9% Int’l
Gas 8%
782 boed
EOG
BAS
CEO
CNQ
WPL
TLM
OMV
NFX
NXY
CHK
MUR
DVN
REP
INPEX
STO
HES
HSE
OXY APA
BHP
PXD
MRO
PWT
ECA
CVE
ECOPETL
YPF
APC
SU
NBL SWN
BG/
0
250
500
750
1,000
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2011 M
BO
E/D
% Production Outside of North America
APACHE’S POSITIONING
11
12
In the North Sea
2003 - today
APACHE – NORTH SEA ASSETS AND GROWTH
April 2003 – Acquired Forties from BP
May 2011 – Acquired Total’s non-op interest in Nelson
Dec 2011 - Acquired Mobil North Sea Limited interests (incl Beryl operatorship)
2012
Zero to 40 subsea wells
15 to 80+ pipelines
0% to 20% production from subsea
Bacchus – 1st Forties subsea development
Well 1 April 2012
Well 2 July 2012
FASP
0
100
200
300
400
500
600
700
800
2003 2004 2005 2006 2007 2008 2009 2010 2011
Ap
ach
e N
et
Cap
ital
Sp
en
d (
$M
M)
Facilities
Drilling
$3.5B Capex Spent on Drilling Wells & Renovating Facilities
Through 2011
BEATING THE TREND AT FORTIES…AND BERYL
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Gro
ss O
il P
rod
uct
ion
(b
/d)
Apache Trend
0
25
50
75
100
125
2007 2008 2009 2010 2011 2012 2013
Be
ryl A
rea
Gro
ss P
rod
uct
ion
(M
bo
e/d
)
No Drilling Activity $470MM of Drilling Activity
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
Gro
ss O
il P
rod
uct
ion
(b
/d)
'12 Drilling
'11 Drilling
'10 Drilling
'09 Drilling
'08 Drilling
'07 Drilling
'06 Drilling
'05 Drilling
'04 Drilling
Base116 wells drilled by Apache thru Aug 2012
Forties Production Beryl Production
Oil Net MMbbl
Purchased Reserves Apr-03 144
Cum. Prod. Dec-11 180
Proved Reserves Jan-12 130
0
50
100
150
200
250
01
/06
/19
76
01
/06
/19
77
01
/06
/19
78
01
/06
/19
79
01
/06
/19
80
01
/06
/19
81
01
/06
/19
82
01
/06
/19
83
01
/06
/19
84
01
/06
/19
85
01
/06
/19
86
01
/06
/19
87
01
/06
/19
88
01
/06
/19
89
01
/06
/19
90
01
/06
/19
91
01
/06
/19
92
01
/06
/19
93
01
/06
/19
94
01
/06
/19
95
01
/06
/19
96
01
/06
/19
97
01
/06
/19
98
01
/06
/19
99
01
/06
/20
00
01
/06
/20
01
01
/06
/20
02
01
/06
/20
03
01
/06
/20
04
01
/06
/20
05
01
/06
/20
06
01
/06
/20
07
01
/06
/20
08
01
/06
/20
09
01
/06
/20
10
01
/06
/20
11
Th
ou
san
d o
f O
EB
/Da
y
Beryl Production History
SATELLITES GAS
SATELLITES OIL
PLATFORM GAS
PLATFORM OIL
Beryl A
Beryl B
Skene Field
SAGE plant
Forties Drilling Beryl Drilling
New drilling
5 x platforms + FASP
Oil export through Forties Charlie via FPS
Limited gas (power)
CNS – FORTIES PLATFORMS
CNS – SUBSEA FORTIES AREA
• 14 x infield pipelines • 1 (+) x subsea well (Bacchus) • Impressed Current Cathodic Protection (ICCP)
Beryl Bravo
Steel jacket
Oil and gas export to Beryl Alpha
1 x drilling rig
Nevis / Ness / Linnhe
Beryl Alpha
Condeep structure
RAT and flare tower
2 x drilling rigs
Tanker export (oil)
SAGE export pipeline (gas)
Buckland / Skene / Nevis / Ness / Lewis
Gryphon
NNS – BERYL PLATFORMS
17
NNS – SUBSEA BERYL AREA
SAGE GAS PLANT
Beryl A
Beryl B
Scott
Brae
B East Brae
SAGE
St Fergus
Gas Plant Britannia
Atlantic &
Cromarty
Alvheim
Devenick Q3 2012
Gryphon
Ettrick
APACHE NORTH SEA – NEW LOCATION
21
Projects Group
PROJECTS GROUP
22
Projects Group Manager
Mark Richardson
Topsides
Kevin Duncan
Subsea
Paul Williams
Project Services
Richard Stark
Construction
Willie Ferguson
Systems
Kieran Marr
FASP
Neil Rogerson
23
The mission of the Projects Group is to provide Apache North Sea with safe, best in class project delivery in order to maximize the
return on investment for the Corporation.
The Projects Group will, as a minimum, provide the following services:
Modifications and field development project management to the CNS (Forties and Bacchus), NNS (Beryl and SAGE), and new opportunities
Management of the implementation of all topsides and subsea projects
Support worldwide projects as requested
Education, advice and training to; the management team, partners, operations and support services in Apache North Sea in project management and project implementation
Provision of documentation to support project, subsea and pipeline works in order to maintain compliance with all laws, regulations and Apache standards
Management of projects from the end of concept definition through to completion and close out
PROJECTS GROUP MISSION
24
Pace, Innovation and Excellence
Unity of effort, focus and momentum whilst empowering individuals to use their own discretion and initiative within the implementation
process
Sense of urgency
Devolved decision making
Responsible and accountable
Best answers win
Respect for the dignity of others
Integrity
PROJECTS GROUP CULTURE
Utilisation of Market Conditions and Momentum
Basis of Design and Functional Specification
Target Cost Contracting Schedule Driven and Incentivised Responsibility and Discipline Collaboration between Company
and Contractor Stakeholder Involvement Technology Global and Local Compliance Transparent Relationships
25
-
50,000,000
100,000,000
150,000,000
200,000,000
250,000,000
300,000,000
350,000,000
400,000,000
Spe
nd
(£
)
Spend to Dec 2011 2012 Spend (£) Spend 2013 onwards (£)
FA
FB
FC
FD
FE
Forties Field
Forties Subsea
FASP
Bacchus
Maule
BA
BB
Beryl Subsea SAGE
PROJECTS GROUP ROLLING AND 2012 BUDGETS
26
Subsea and Major Projects
2012 and beyond
Small leak identified 1 year after flexible installation
New hard pipeline installed Apr 2012
Hooked up in Aug 12 TAR
FORTIES D - C EXPORT PIPELINE REPLACEMENT
27
1ST BERYL CAMPAIGN – NEVIS SOUTH REPAIR
28
Well N13 leaking hydraulic fluid
165 Litres per day being discharged
Decision taken to mobilise DSV
Original schedule was 3 days for Nevis works
SCM changed out in 10 hours
All Nevis works completed in 1.5 days
Well now back online, no leaks reported
Leak at N13 (greenish fluid)
Airbag change out of SCM
Around 500 unsupported pipeline lengths, freespans, have been identified on the SAGE pipeline (lengths 10m-57m/ gaps 0.1-2.0m)
5 of these were addressed in detail as the spans fail the pre-determined criteria
1 freespan was rectified in March 2012 at the Beryl Alpha SSIV (44m) to prevent any potential for further growth and requirement for annual monitoring
4 remaining critical spans will be re-inspected in 2012
1ST BERYL CAMPAIGN – SAGE FREESPAN
29
2012 Freespan Repair
Freespan Prior to Repair
Subsea Isolation Valves 36” MOL export to Cruden Bay
30” Brae import pipeline
Valves Petrovalve
Pipe and bends Corus
Structures and storage Global Invergordon
Install 36” SSIV in 2013 (BP
dependant)
30” SSIV in 2014 (Marathon dependant)
FORTIES CHARLIE SSIVS
EXPORT MOL PIPELINE BRAE IMPORT
PIPELINE EXPORT MOL PIPELINE
GAS RINGMAIN REPAIR
Built by OGN 1,800,000 manhours (Tyneside) Jacket – 5700 t, installed 2012 Topsides – 6000 t, install 2013 Bridge – 90 m, install 2013
Capability Full processing 18 slots Power Crane Drilling via jack-up
33
FORTIES ALPHA SATELLITE PLATFORM (FASP)
34
Developments
2013 and beyond
2012 CNS
2 drill crews on 4 x platform rigs
Gorilla VII
NNS 2 x non-op BA rigs
1 x operating BB rig (5,000psi)
Signed 3 year+ platform drilling contract with Archer
Future CNS
2 f/t drill crews
Gorilla / Jack up
NNS
2 x drill crews on 3 x platform rigs (10,000psi)
1 x jack up
1 x semi-sub
Subsea
Light Well Intervention Vessel campaigns
“GROWTH THRU THE DRILL BIT”
35
Forties Survey and ROV Inspection – 81 Days Subsea Construction (Non Diving) – 37 Days Diving Support Vessel Works (DSV) – 66 Days Pipelay & Trenching – 34 Days
Beryl Survey and ROV Inspection – 92 Days Subsea Construction (Non Diving) – NIL Diving Support Vessel Works (DSV) – 5 Days Pipelay & Trenching – NIL
SAGE Survey and ROV Inspection – 6 Days Subsea Construction (Non Diving) – NIL Diving Support Vessel Works (DSV) – NIL Pipelay & Trenching – NIL
VESSEL CAMPAIGN SUMMARY 2012
36
Riser Installation – Scaffold Structure
At Forties Alpha, Bravo in the Distance
SKENE RISER UMBILICAL REPLACEMENT
37
Solution
Procure replacement umbilical (~400m)
Pull up redundant production riser
Tie in directly to bundle tow-head
Redundancy for future issues
2Q/3Q2013 installation
Issue
Electrical insulation resistance failing – power to wells
Testing carried out 2010 & 2011
Bundle OK, riser section failing
~600 bbl/d & 20 Mscf/d
Redundant Riser
Skene Riser
Solution Procure replacement flexible
(~2000m)
Install in place of failed section
Flow S64 back to BB
Redundancy – provides secondary export route BB to BA
3Q/4Q2013 installation
Issue 2010 – Part of S64 flex to BB failed
MNSL – installed 200m jumper to S66 & share PL2357
S64 & S66 not possible to co-mingle (pressure & commercial)
S64 ~ 1000 bbl/d & 24 Mscf/d
S64 RECONNECT
38
Replacement Flexible
Issue Historic IR failures in power
jumpers
2 wells running blind, 7 at risk
Nevis: 10,000 bbl/d & 54 Mscf/d
Solution Procure replacement jumpers
& contingency spares
Extensive DSV testing & replacement campaign
2Q/3Q2013 installation
NEVIS IR JUMPER REPLACEMENT PROGRAM
39
Nevis South
2013 WORK PROGRAM @ BERYL BB SSIV Repair
Issue
SSIV hydraulic accumulator, pitting corrosion
Failure leaves valve as-is
1 bottle at risk, 3 OK
BB Gas: 51 Mscf/d
Solution Procure replacement
accumulator skid
Isolate/replace corroded bottle
SS20 Anode Retrofit
Issue
Low CP on tree
Valve integrity concerns
2 Mscf/d
Solution
Attach replacement anode skid
40
Alvehim Tee Inspection Issue
Spare slot on Tee planned for 3rd party tie-in to SAGE
Valve not tested/inspected
Solution
Close Visual Inspection with divers.
Valve function tests
SAGE Line Preparation for Pigging
Aviat
SPM 3 Removal & Replacement
K Prospect
Support for Semi-Sub or Jack Up Opportunities
OTHER UPCOMING WORK
41
Aviat Flaring SPM
Aviat (WI 100%)
power demand
diesel
Forties gas
20
06
20
20
Aviat-1 was drilled in 3Q 2010 and successfully tested
Fuel gas for Forties Field
26kM from Forties Alpha
Two well tie back
A final appraisal well currently being planned
Project delivery planned for 2014
Engineering works will commence Q3 2012
AVIAT
FORTIES
NELSON
EXPLORATION
43 43
Isabella
UK
NNS
NNS
CNS
CNS
Forties & Nelson
Aviat
Beryl
Seagull & Seagull North
Seagull area
Western Margin
Peripheral Forties
Peripheral Beryl
Qualification for work
FPAL
Apache MSA
Non-exclusive major contracts Onshore Engineering / Offshore Construction
– Petrofac
Subsea Project Management
– Flexlife
Subsea Engineering Detailed Design
– JP Kenny
PROCUREMENT
44
Apache have been in the North Sea for almost a decade
Forties has been a great success for Apache
“Do with Beryl what we did with Forties”
“Growth thru the drill bit”
SUMMARY
45
Apache North Sea
Apache Australia
www.apachecorp.com/Operations/Austraila/Suppliers.aspx
Apache Corporation
www.apachecorp.com/Contact_Us/Suppliers/index.aspx
PROCUREMENT CONTACTS
46
