BritanniaPast, Present, FutureRachel Preece

Adrian Machell

Britannia Overview

2

Britannia

• Discovered: 1975 (by Conoco)

• Online: 1998

• 2015 production: ~200 MMSCF/D

• One of the largest gas-condensate fields

developed on the UK continental shelf

• At plateau production in 2000

contributed 8% of total UK gas

supply

• 4 TCF GIIP

• ~2.6 TCF produced to date

• 200 km North East of Aberdeen

• 140 m water depth

• 2 Platforms

• Main platform - 8 leg jacket

• Bridge Linked Platform – 4 leg jacket

• 47 Platform Wells

• Subsea Facilities

• Britannia subsea centre – 9 wells

• Brodgar – 3 wells

• Callanish – 4 wells

• Enochdhu – 1 well

• Alder – 1 well

Chronology ….

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75

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76

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78

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Gas Rate Condensate Rate

1990 – 1993: Flurry of appraisal wells and 3D acquisition amongst positioning for operatorship

2000: Peak Production contributing 8% of the total UK gas supply

Life of Field

Blo

cks

Aw

ard

ed in

3rd

& 4

th R

ou

nd

(1

97

0 &

72

) w

ith

Bas

em

ent

Hig

h R

ese

rvo

ir T

arge

ts

Rediscovered by 3 different operators between 1976 - 1978 giving field names of Bosun, Lapworth, Kilda & Shirley

Low Well Rate StrategyBrit Sats Development:2008: Brodgar + Callanish2015: Enochdhu

4

Field Development History – Exceeding Expectations

Early Drilling Programme• 4-5 wells a year• 500m drainage circle in platform area

Goal• Managing decline• Maintaining plateau

Well Design Techniques• Fracking• Horizontal drilling

• Slow• Negligible impact to rate

• Basic design• Select target• Avoid inboard wells• Keep constant angle to target

Late Life Rate Strategies• Capillary strings• Batch foam• Re-perforation• Velocity strings• Well cycling with offshore PE• Long Term Compression

Late Life Strategies

3 YearDrilling Hiatus

5 YearDrilling Hiatus

Britsats

Rig Tepid Stacked

Re-wheel

LTC

B11z

B12B13z

B14

B15B16M8

B17

M9B18

B19B20

B21

B22

B23z

B24

B25zB26

B27

B28

B29B30

B31B32

B33

B34

B35

B36B37

B38z

B40zB41zB42

B43B44

B45

B46

B47

No

v/9

8

Mar

/99

Jun

/99

Oct

/99

Feb

/00

Jun

/00

Oct

/00

Feb

/01

Jun

/01

Oct

/01

Feb

/02

Jun

/02

Oct

/02

Feb

/03

Jun

/03

Oct

/03

Feb

/04

Jun

/04

Sep

/04

Jan

/05

May

/05

Sep

/05

Jan

/06

May

/06

Sep

/06

Jan

/07

May

/07

Sep

/07

Jan

/08

May

/08

Sep

/08

Jan

/09

May

/09

Sep

/09

Jan

/10

May

/10

Au

g/1

0

De

c/1

0

Ap

r/1

1

Au

g/1

1

De

c/1

1

Ap

r/1

2

Au

g/1

2

De

c/1

2

Ap

r/1

3

Au

g/1

3

De

c/1

3

Ap

r/1

4

Au

g/1

4

De

c/1

4

Ap

r/1

5

Au

g/1

5

De

c/1

5

Gas Rate Production Profile Britannia Annex B Gas Condensate Rate

The Development Challenge

Lessons

• Reduction in co-venturers• Targeted acquisitions & take overs

• Co-venturers reduced from >30 to 3!

• Subsurface understanding key to upside asset value interpretation

• Formation of Joint Operating Company• Development of Britannia Operator Ltd (BOL)

Challenges

• Lots of co-venturers• Four blocks + sub blocks

• No focus, no single operator

• Cretaceous Gas Condensate development new to UK in 1990

• New play• Lower Cretaceous poorly understood

5

72 3

8

6 11

5

2

4

19

1

76

9

10

3

21

21z

2

5

26

23

9

3

24

6

16

7

4z

3

29

15/29 15/30 16/26

21/4 21/5 22/1 22/2

16/27

Britannia West

Main Subsea Area

Midfield

Area Platform Area

Britannia South

Eastern

Flank

10,000 ft

5,000 ft

15,000 ft

10,000 ft

15,000 ft

20,000 ft

25,000 ftLocation of pinch out approximate

1A

4

Cartoon map only! – not to scale

E & A wells: Condensate, Dry

Britannia Unitary Boundary

Inner Limit of water

Mid-line satellite T junction

Alba Field outline

Legend

Greater Britannia Area Highlights

• Cost Reduction Initiative for the New Era (CRINE)

• Well optimisation through pre-drilling

• Continued appraisal of the outer field regions

• Utilisation of adjacent space for BLP and 3rd party processing• Brit Sats

• Alder

• Largest low-pressure compression module in the North Sea (LTC)

• People Impact …• Partnership

• Performance

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A Change of Operator and Synergy Development

1994 – 2015• Created 1994

• Two shareholders (COP, CVX)

• No employees!

• 370 onshore staff

• 34% ConocoPhillips / Chevron

• 66% Contract (Petrofac, Amec, Lockheed Martin etc.)

• Governed by Board of Directors

• Split Operatorship:

November 2015 and beyond•ConocoPhillips operated asset

•Reducing complexity

•Retain equity model

•Maximising hub value

•Satellite producing fields synergy

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50%

50%

58.65%32.38%

8.97%

ConocoPhillips*

Chevron

Mitsui

Britannia

Brodgar

25%

Chevron75%

ConocoPhillips*

16.5%

Chevron

83.5%

ConocoPhillips*

Callanish

50%

Chevron

50%

ConocoPhillips*

Enochdhu

73.7%

Chevron*

26.3%

ConocoPhillips

Alder

Satellites

*operator

Greater Britannia Area

Evolution of the Britannia Operating Model

• Commitment to efficiency improvements and collaboration

• Single operator• Deliver simplified governance and efficient, effective decision making

• Provide streamlined access to specialist support

• Integrated Operations• Improved focus on production efficiency and safety

• Maximise shared resource synergies• Operating and capital cost savings over time

• 2016 10% opex reduction

• Reservoir management strategy• Production optimisation projects

• Infill drill opportunities

• Near field exploration

• Partnership• Secondees to Operator organisation

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Thanks to Our Coventurers

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