Q1 2020 Exploration Task Force meeting · Exploration Task Force meeting 5th March 2020 Task Force Purpose Statement “Maintaining UKCS Exploration and Appraisal activity, making

Q1 2020

Exploration Task Force meeting

5th March 2020

Task Force Purpose Statement

“Maintaining UKCS Exploration and Appraisal activity, making the most of the UK’s own energy resources

in support of the transition towards a net zero carbon future and beyond”

Exploration Task Force

Next Meeting – Q2 XTF meeting 3rd June 2020

Agenda1:30pm – Start• Introduction & Safety Brief

• XTF overview

• Updated membership

• XTF priorities 2020

• Energy Transition

• Opportunity Maturation

Break• Licencing

• Data

• Technology

• AOB

4:30pm – Close

XTF Membership

The XTF provides leadership and support to UKCS exploration & appraisal activity

Nick TerrellManaging Director,

Azinor Catalyst

Jenny MorrisHead of Exploration,

Chrysaor

John UnderhillChief Scientist & Professor,

Heriot-Watt University

John ColleranUK Expl & Dev Director,

Neptune

Graham GoffeyFounder/Direct

Soliton Resources Ltd.

Nick RichardsonHead of Exploration & New

Ventures, OGA

Colin PercivalTechnical Director,

Athena Exploration

Andy AlexanderChief Geophysicist,

Siccar Point Energy

Chrysanthe MunnExploration Manager,

BP

Katy HeidenreichOperations Director,

Oil & Gas UK

TBCIAGC Representative

Ben HillierExploration Manager UK,

Shell

Mohamed-Amine SoudaniNorth Sea Area Exploration

Manager, Total

Rod CrawfordTechnical Director,

Zennor Petroleum

Anne-Sophie CytevalUK Exploration Manager,

Spirit Energy

Gillian WhiteSolution Centre Manager -

Subsurface, OGTC

https://www.google.co.uk/url?sa=i&url=http://rocketreach.co/john-colleran-cgeol-email_96776226&psig=AOvVaw1JzWKpucvcgw-xx1UfgsfG&ust=1583437441967000&source=images&cd=vfe&ved=0CAIQjRxqFwoTCMDrj6fKgegCFQAAAAAdAAAAABAD

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Making the most of the UK’s own energy resources towards a net zero carbon future and beyond.

exploration

task forceEnergy Transition

Ensuring the case for continued UKCS exploration is made

• Advise on & promote ‘case for continued exploration’ through Roadmap 2035

o Requirement to meet UK Energy needs through ET

o Net Carbon benefit of domestic production vs imported energy

• Attract and retain transferrable skills, expertise and data

• Securing Social Licence to Operate through the ET and beyond

exploration

task force2020 MER UK Priorities & Initiatives

Endorsed & ranked by Industry at recent MER UK Exploration Forum

PRIORITIES

1. Licensing 2. Data 3. Technology 4. Opportunity Maturation

Initiatives

1.Promote & encourage

collaborative commercial

behaviours

2.Advise on & ensure fit for purpose

licensing regime

3.Promote alignment with the OGA’s

Stewardship Expectations

1.Facilitate data release

2.Support development of best in

class National Data Repository

3.Promote digital initiatives and

improved ways of working

1.Support OGTC exploration

projects

2.Champion new technologies

3.Work collaboratively to deliver our

four TLB challenges

1.Support sustainable hubs and

implemented area plans

2.Promote cross-border collaboration

3.Support collaborative regional

exploration projects

4.Leverage UKCS Yet-To-Find data to

identify new focus area

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The XTF provides leadership and support to UKCS exploration & appraisal activity

5th March 2020

Energy Transition

Q1 XTF meeting

Katy Heidenreich (OGUK)

Jenny Morris (Chrysaor)

John Underhill (Heriot-Watt University)

Making the most of the UK’s own energy resources towards a net zero carbon future and beyond

exploration

task force

Priorities• Advise on & promote ‘case for continued exploration’ through Roadmap 2035

o Requirement to meet UK Energy needs through ET

o Net Carbon benefit of domestic production vs imported energy

• Attract and retain transferrable skills, expertise and data

• Securing Social Licence to Operate through the ET and beyond

XTF Leads

Jenny Morris (Chrysaor)

Katy Heidenreich (OGUK)

John Underhill (Heriot-Watt University)

Energy TransitionEnsuring the case for continued UKCS exploration is made

5th March 2020

Opportunity Maturation Priority

Q1 XTF meeting

John Colleran (Neptune)

Anne-Sophie Cyteval (Spirit)

Graham Goffey (Soliton)

• Where are the existing hubs and

area plans located?

• What has worked well so far and

what hasn’t? – learn and plan

ahead accordingly

• Encourage new hub or play

based Special Interest Groups

eg a SNS Zechstein play group

could include current interested

parties – progress/share

technical/business issues & build

collaborative approach

within and between licence groups

Opportunity Maturation PriorityTask Delivery Group

Key Initiative

1.Support sustainable hubs and implemented area plans

2.Support collaborative regional exploration projects

Tasks

Promote OGUK Reserves Progression Self Verification Tool to explorers

Work with Asset Stewardship Task Force to identify data sharing improvement

opportunities on infrastructure and hosts

Launch scaled-down version of Phase 2 of Petroleum System Project, following industry

commitment of c.£500k industry

Key Stakeholders

OGA, OGUK, OGIA, MER UK Asset Stewardship Task Force, MER UK Wells Task Force

XTF Leads

John Colleran (Neptune)

Anne-Sophie Cyteval (Spirit)

Graham Goffey (Soliton)

Supporting sustainable hubs, implementation area plans & collaborative regional exploration projects

Opportunity Maturation PriorityPreferred characteristics of industry-funded regional projects:

• Standalone utility: deliverable via one or more widely available, easily accessed and used platforms; no need for

bespoke software to facilitate use

• Data aggregation: consolidation and compilation of disparate data spread through the NDR, in databases OGA has

purchased, BGS archive data, etc. Ideally also capable of facilitating access to additional data extracted from oil company

archives

• Facilitates interpretation: industry has not been keen on interpreted products, although interpretive clean-up or

categorisation of data seems helpful

• Machine-readable: ideally facilitates machine reading (digital data, machine readable text, etc.)

• No commercial overlap: not duplicating or competing with 3rd party commercial databases

• Ability to attract industry funding from wide range of companies

• Wider utility: e.g. of value for future CCS projects


Opportunity Maturation Priority


Project Idea Description Pros Cons“Crowd sourced” well failure

analysis for released exploration

wells

Industry provide data into single UKCS

well failure database that could be

released via the OGA’s digital platform

• Fulfils industry request

• Collaborative project that

benefits wide cross section of

industry

• Petroleum & potential CCS

application

• No funding required

• Some companies may not

participate

Compilation of regional

subsurface databases

Effectively a continuation of the UKCS

Petroleum Systems model, focused on

key data types e.g. reservoir quality,

pressure, stratigraphic data

• Builds on initial pilot of UKCS

geochemical database

• Consolidation of disparate

data spread through the

NDR, OGA databases, BGS

archive data etc.

• Additional access to data

extracted from oil company

archives

• Expensive – needs

significant industry

funding

• Scaled down version

may not realise sufficient

value for participating

companies

Semi-regional collaboration

around exploration

uncertainties and understanding

Encourage licence groups with similar or

complementary initial term work

programmes to work together to increase

regional understanding through

collaborative approach to studies, seismic

acquisition/reprocessing etc

• Increased value for money for

work programme commitments

• Collaborative approach to

exploration activity

• “Competitive edge” used

as an excuse not to

collaborate

• Relative value of work

programme items not

equal

5th March 2020

Licencing Priority

Q1 XTF meeting

Colin Percival (Athena Exploration)

Ben Hillier (Shell)

Objective:

• Make the UKCS a great place to do

business for Oil & Gas

– Ease of acquiring licences

– Ease of delivering success

Issues:

• Licence Award

– LARRY update and training

– Ensuring collaboration is rewarded

• Licence Ownership

– Standard Agreements e.g. JOA

– Interaction with other users e.g.

Offshore Wind

– Ensuring collaboration is rewarded

Licensing PriorityTask Delivery Group

Key Initiative

1.Promote & encourage collaborative commercial behaviours

Tasks

Review JOA Standard Agreement and revise if required

Review and recommend improvements to LARRY. Facilitate training on

LARRY system for all users

Licensing of offshore Wind vs Oil & Gas - establish the Industry issues

Licence award and Stewardship process – ensure collaboration is a

key part of the process

Key Stakeholders

OGA, OGUK (including Commercial Managers and Legal Forum),

OGIA, Crown Estate, BEIS

XTF Leads

Ben Hillier (Shell)

Colin Percival (Athena Exploration)

Promote & encourage collaborative commercial behaviours

Licensing Status

• Innovate Licence working well

• LARRY working well

• Award process – quicker but would like to improve

• Appendix C – lots of wasted effort/money

• Marks scheme not clearly aligned with MER

• Standard Agreements e.g. JOA developed prior to Innovate Licence

Licensing Priority – UKCS Status• UKCS historically a big project basin

• In mature areas (North Sea) it needs to become a small project basin

– 350 undeveloped discoveries (small pools) with ca. 2.5 billion boe. All worked individually and cannot

be made commercial. Issues are:

• Size

• Fluids

• Reservoir

– Collective solutions i.e. cluster development – geographic or technology required to deliver at least

some of these

– Delivering success will help unlock exploration drilling in mature areas – mainly small prospects left

which in a success case will often just add to inventory. Risk is not the main issue – volume is – only

finding ca. 40% of predicted volume

– Upside is in stratigraphic traps – mainly found by drilling smaller features

• Collaboration needs to be rewarded in licence awards and ownership

– Key to unlocking much of contingent and prospective resource base


Licensing Priority - Tasks• Review Standard JOA and revise

– Current Standard JOA put in place prior to Innovate Licence

– Needs update to align with Innovate Licence:

• Initial Term can now be divided into 3 phases

• Licence Administrator vs. Operator

– OGUK to set up call with all interested parties in next few weeks.

– Make it mandatory?

• LARRY

– Review and recommend improvements

– Implement improvements and training

• Licensing of Offshore Wind vs. Oil and Gas

– Discuss with key stakeholders and establish the issues

• Licence Award

– Review the Marks Scheme and update to reward collaboration


5th March 2020

Data Priority

Q1 XTF meeting

Rod Crawford (Zennor Petroleum)

Data PriorityTask Delivery Group

Key Initiative

1. Facilitate data release

2. Support development of best in class National Data Repository

Tasks

Support improvements to how seismic field data can be accessed

Support creation of NDR Roadmap and promotion to all stakeholder

Support the business case for release of well production data (by

well/by reservoir)

Key Stakeholders

OGA, OGUK, OGIA, NDR Steering Committee, IAGC, MER UK Asset

Stewardship Task Force

XTF Leads

Rod Crawford (Zennor)

TBC (IAGC)

Facilitate data release & support development of best in class NDR

Data Priority

• Status

– CDA database adopted in early 2019

– Through the published Guidelines OGA are• Expanding the scope of database

• Expanding the volume of data

• Schedule

– NDR 2 is being planned for 2021

– Definition of the nature of NDR 2 will continue through 2020

• How does the XTF want to influence NDR 2


Data Priority

• Would the XTF prefer NDR 2 to be

– Merely online storage ?• Copies of data (wells / seismic)

• Copies of static and dynamic models of abandoned fields

• Copies of 4D seismic

• Copies of reports (end of well, drilling reports etc.)

• Site surveys, geotechnical, pipeline route survey etc.

• Available for download and re-storage

– Or an active database in the cloud ?• Searchable reports

• Automatic links to well logs

• Active viewing of seismic

– Or somewhere in between ?


Data Priority

• There is the future

– MER …. Minimising re-inventing the wheel

– Decommissioning

– Wind farm development

– Environmental assessments

– Re-use of the marine environment.

• The choice is ours

– we will end up paying for it


5th March 2020

Technology Priority

Q1 XTF meeting

Mohamed-Amine Soudani (Total)

Gillian White (OGTC)

AGENDA

• NNS Machine Learning Project

• Call For Ideas Projects

• Progress TLB Challenges

Technology PriorityTask Delivery Group

Key Initiative

1. Support OGTC exploration projects

Tasks

Support OGTC in delivery of NNS Machine Learning Project, ensuring

results are published to industry as soon as possible

Support progression of OGTC Exploration Call for Ideas projects

Ensure progression of TLB Challenge – short and medium term

priorities

Key Stakeholders

OGTC, TLB, OGA, OGUK, OGIA

XTF Leads

Mohamed-Amine Soudani (Total)

Gillian White (OGTC)

Support OGTC exploration projects

Technology Priority: NNS Machine Learning Portfolio Project


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Technology Priority

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Technology Priority:

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Technology Priority: MER alignment

NNS Portfolio

NNS Portfolio

DataCo – Moveout

Rockflow


Optic Earth (BP)

S-Cube

Seismic Image

Processing

ARL



5th March 2020

AOB

Q1 XTF meeting

Documents

Q1 2020 Exploration Task Force meeting · Exploration Task Force meeting 5th March 2020 Task Force Purpose Statement “Maintaining UKCS Exploration and Appraisal activity, making