Brian Reid - Championing the UK subsea sector reid itech...612 694 64 54 203 81 589 116 333 . ... • Alignment with API std 53 requirements, Automatic Selective Flow Skids for BOP

Brian Reid

Senior Commercial Manager

2 Page Deeper Challenges, Wider Horizons A Division of Subsea 7

Increasing activity levels

Trending towards deepwater

Rising rig count supply and demand

Increasing Requirements of ROV

Post-Macondo requirements

Technological improvements

AGENDA


Increasing Activity

• The world currently uses around 30bn boe/year with 1billion barrels meeting

demand for only 12 days. This vast demand, plus a high oil price, encourages

activity.

0

20

40

60

80

100

120

140

Jan-2

000

Sep-2

000

May-2

001

Jan-2

002

Sep-2

002

May-2

003

Jan-2

004

Sep-2

004

May-2

005

Jan-2

006

Sep-2

006

May-2

007

Jan-2

008

Sep-2

008

May-2

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Jan-2

010

Sep-2

010

May-2

011

Jan-2

012

Sep-2

012

May-2

013

Brent Oil Price

Brent Oil Price


Increasing Activity

• In addition, capital investment continues to rise as the associated costs of

exploration and development rise.

Forecast capital investment in UK continental shelf. Oil & Gas UK Activity Survey 2013


1853

21982307

2700

2934 2953

0

500

1000

1500

2000

2500

3000

3500

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Average Water Depth (m)

Maximum Water Depth (m)

Moving Towards Deepwater

• Most ‘easy oil’ has been found, operators are now moving to more difficult regions

providing a variety of challenges

• The average water depth of developments has doubled in the last 13 years and is likely

to double again by 2018.


Water Depth increases per region

Water Depth(m) 2000 – 2010

Water Depth(m) 2011 -2020

Latin America

Australasia

North West Europe

North America

East Asia

Middle East

North Africa

South East Asia

West Africa

South and East Africa

Europe

371

1,122

1,313

366

192 105

364 52

151 550

401

952

98

612

694

64

54 203

81

589

116 333


Development Well changes per region

Wells 2000 - 2010

Wells 2011 -2020

Latin America

Australasia

North West Europe

North America

East Asia Middle East

North Africa

South East Asia

West Africa

South and East Africa

Europe 734

1138

1,199 781

994 1149

104 151

164 206

1328 1073

93 21

419 318

108

1070

630

1463

549 182


86%

96%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

50

100

150

200

250

300

350

400

450

3Q03 3Q05 3Q07 3Q09 3Q11 3Q13 3Q15 3Q17

UtilisationRigs

Marketed Supply Marketed Utilisation

© 2012 IHS© 2013 IHS

169

287

Supply & Demand of Global Floating Rigs


Newbuild Floating Rig Water Depth


Offshore Rig Day Rates

• High utilisation rates continue to push rig day rates.

• As a result of high rig day rates, the selection for provision of rig

ancillary services (including ROV’s) has never been more critical.


Harsher Environments

In addition to increasingly harsh environments offered by frontier areas,

operator acceptance to system downtime due to weather is naturally

decreasing. ROV’s are required to work in harsher environments.


Deepwater Horizon

April 20th 2010 – The Deepwater Horizon suffers a blowout. ROV’s initially try to activate the BOP

shear rams and to cap the well but are unsuccessful.


Technical Requirements post Macondo

API std 53,

Bureau of Ocean Energy Management NTL-2010-N06

• Maintain an ROV & trained crew on floating drill rig

• ROV intervention testing on subsea BOP stump test as well as auto-shear

and deadman

• Containment options

• Consideration to dual-BOP designs. • Increased maintenance requirements of BOP’s. To save time, money and allow maintenance

during ‘critical path’ operations, dual BOP’s are being introduced.

• Drilling Safety Rules – BOP’s & Control Systems

• Minimum requirements for ROV intervention plus testing

• Importance of ROV’s in drilling support has significantly increased


The role of the ROV – Tooling improvements

• Historically the ROV would require upwards of three hours cycle time to

change tool and redeploy (within North Sea water depths)

• As the result of improvements in tooling, both the torque’s and interfaces can

be changed subsea to significantly reduce the cycle time to minutes.


The role of the ROV – technical improvements

• Improved reliability through design and preventative maintenance system

• Aligning ROV capability to rigs (Depth to 4,000m)

• Increase vehicle thrust capability (1200Kgf lateral, 900Kgf vertical)

• Multiple-class torque tools to save time

• Alignment with API std 53 requirements, Automatic Selective Flow Skids for

BOP Intervention

• Station Keeping

• Fly by Wire

• Improvements in video such

that HD is now standard


Conclusions

• Exploration and Development is venturing into more remote and deeper

locations

• High investment costs are met by a high per barrel price of oil

• Rig Supply is continuing to grow and demand remains very high at 90+%

utilisation

• ROV’s are expected to operate more

efficiently and to do so in harsh

environments

• New regulations are increasing the

importance of the ROV in well

intervention operations

• Technical innovations in both the ROV

system and associated tooling are

allowing ROV’s to respond to deeper

challenges over wider horizons.


Deeper Challenges, Wider Horizons

www.interventiontechnology.com

Documents

Brian Reid - Championing the UK subsea sector reid itech...612 694 64 54 203 81 589 116 333 . ... • Alignment with API std 53 requirements, Automatic Selective Flow Skids for BOP