02 - Subsea Past and Future

Subsea Group Products and
Services
Unit 02 Subsea: past and future
Copyright TECHNIP - All rights reserved
Lecture
Topics
1. History of the sector
2. World records
3. Global Energy Review
4. Industry trends
On successful completion of this unit you will :

• Understand where this industry is coming from
• Have a knowledge of the today industry limitations
• Understand the market drivers
• See where this industry is going in the future
Unit 02 Slide 2 Subsea Group Products and Services 2014
1) History
Topics
2. World records
4. Industry trends
Technology Development History
First Onshore Oil Discovery
On 26 August 1859 an historical event: the first on land oil

discovery by Colonel Drake in Titusville Pennsylvania
(USA) 50m below ground
Early Offshore Developments

Pioneering offshore wells in California in late 1890 early 1900
Beach in Los Angeles in early 1900
Offshore Industry 1900 to 1946
Expansion worldwide :
• Maracaibo lake : hundreds of
platforms built in concrete and later
in steel
• Caspian Sea (Baku)
• United States of America: Lake
Caddo (Louisiana) , Lake Erie ,
expanding in the bayous of
Louisiana and later close to GOM
shore
First Offshore Oil Discovery in 1947
Kerr-McGee discovered oil in the Gulf of Mexico (block 32),17km offshore
on September 9,1947
Oil was encountered at a shallow depth (1500 ft to 1700 ft)
Platform Technical Evolution 1950 to 1970 (1/3)
Platform Technical Evolution 1970 to 2000 (2/3)
This has been the conventional Offshore field development for 40 years
Platform Technical Evolution Summary (3/3)
300‐400m
500‐600m
500m – 1,600m 600m – 3,000m 200m ‐ 3,000m 50m ‐ 3,000m
First Subsea Wells early 1960’s
First Subsea Well installed in 1961 Expansion in Santa Barbara

in the Gulf of Mexico on West Channel (California) and GOM
Cameron Block 192 by 16m water with circa 70 Subsea Wells
depth installed at the end of 1960’s
1970’s to 2000’s: The Growth
World wide expansion :

1971 in North Sea
1974 in Brazil
1978 in Australia…..
From single subsea tie-backs

to multiple wells subsea tie-
backs
From 2000 to today: The Solution
Mature Solution fully

recognized worldwide
Large number of subsea wells
More and more complex
Deeper
Longer tie-back distance
Technically : subsea
processing
From Mobil Beryl (1975) to BP Quad (2014)
BP QUAD-204 UK(West of Shetland)

400m of Water
MOBIL Beryl UK
100m of Water
2) World Records
Topics
2. World records
4. Industry trends
Deep Water and Ultra Deep Water
500m ---------
1,500m -------------------------------------
Ultra Deep Water
3,000m ----------------------------------------------------------------------------
World Record in Drilling today
DP drilling : ONGC-Transocean
Dhirubhai KG1(India) 2012
~3,165m water depth
World Record in Horizontal Drilling today
Longest reservoir drilled :Chayvo well

Exxon Sakhalin (Russia) 2012
Deepest Subsea Wells in service today
Shell Tobago (Gulf of Mexico) , in ~2,925m of water, is the

world’s deepest subsea completion (2010)
Longest Tie-back in service today
Statoil Snovhit (North Sea Norway in 316m WD), is the world’s longest subsea
tie-back with 143km distance to host (2009)
Deepest Floater in service today
Conoco Magnolia Gulf of Mexico in 2003

circa 1,500m Water Depth
Shell Perdido Gulf of

Mexico in 2009 Independance Hub Gulf of Mexico
circa 2,500m Water in 2007
Depth circa 2,500m Water Depth
Petrobras Cascade Chinook Gulf of Mexico in 2009

circa 2,500m Water Depth
Deepest Floater future
- Shell (100% operator) to develop

Stones Field in GOM by 2,900m
wd by 2016
- F.P.S.O. from 2 subsea satellite
wells with additionnal 6 wells+
multi-phase pumping to be
connected later
- Gas piped to shore
- Oil exported by tanker
Longest Pipeline in service today
Blue Stream is the longest pipeline with 2x24” 1,213km (2003-12)

Through Black Sea with deepest part in 2,150m wd
Operated by GAZPROM and ENI
3) Global Energy Review
Topics
2. World records
4. Industry trends
Demand for Oil 2013-2030
Oil demand (1%/year)
40mbd
60mbd
Existing production
(decrease of 4.5%/year)
Acceleration of Upstream Spending
Spending Growth 2013-2030
The Oil Companies
International Oil Companies National Oil Companies
IOC : International Oil

Companies
Chevron, Shell, EXXON, BP,
Total…
Others Oil Companies
NOC : National Oil Companies
Petrochina, Petrobras, Sonangol
Group, Petronas…
Others : AHL, Anadarko, BG,

Apache…..
Balance between IOCs and NOCs
CAPEX Costs Indicator
230 in Q4/2013
- Local content
- QHSE
- Drilling vessel cost
- Access to human resources
- Goods and services costs
- Shipyard cost
- Deepwater technology
Project Costs “Explosion”
Total Girassol Angola 2001
WD Rate Nbr Well Km pipe Km Reserves Costs Innovation

m Kbbl/day umb Mil. bbl Bil. $
1,250 200 39 78 77 700 2.88 Riser Tower
Total Pazflor Angola 2010
WD Rate Nbr Km Km Reserves Costs Innovation

m Kbbl/day Well pipe umb Mil. bbl Bil. $
1,200 220 49 180 84 590 9 Subsea Separation
Project Costs “Explosion”
Total Girassol Angola 2001
WD Rate Nbr Well Km pipe Km Reserves Costs Innovation

m Kbbl/day umb Mil. bbl Bil. $
1,250 200 39 78 77 700 2.88 Riser Tower
Total Pazflor Angola 2010
WD Rate Nbr Km Km Reserves Costs Innovation

m Kbbl/day Well pipe umb Mil. bbl Bil. $
1,200 220 49 180 84 590 9 Subsea Separation
Project Costs: TOTAL Girassol 2001
FPSO
Drilling 600 M$
900 M$
Riser tower
UFL (Umbilicals Flowlines)

500 M$
300 M$
SPS (Subsea Prod Systems)
Project Costs: TOTAL Pazflor 2010

Drilling 1,600 M$
FPSO
2,500 M$
UFL (Umbilicals Flowlines) IPB

2,000 M$
Subsea Process
1,300 M$
M$
SPS (Subsea Prod Systems)
Some Projects cancelled
Major Projects delays announced in 2013
Changing Oil Companies Attitude
Global Exploration and Production spending continue to grow

Slowdown Exploration and Production spendings by Majors(IOC)
offset by National Oil Companies(NOC) and Independants
Capital Discipline , cost cutting and cost control
New way of doing business
Subsea is “the Way to Develop Field”
Unprecedented Growth in Subsea
Circa 500SSWH / year
Circa 400SSWH / year
4) Industry Trends
Topics
2. World records
4. Industry trends
Unit 02 Slide Subsea
43 Subsea Group Products and Services 2014
Group Products and Services
Key Oil & Gas Regions
Deepwater has driven the occurrence of most of the large new discoveries with the golden
triangle
-Pre-Salt Brazil
Gulf of
-Pre-Salt West Africa
Mexico
-East Africa : Oil: 5-7 Bbl
Gas: 10 Tcf**
Mozambique,Tanzania,Kenya
Gulf of
-French Guyana
Guinea
-Israel,Norway Oil: 8-10 Bbl
Gas: 9Tcf**
-Artic.. to come next
Brazil
Oil: 10-15Bbl
Gas: 5-8 Tcf**
Pre-Salt: Brazil / West Africa
Other Significant Discoveries
Anadarko and ENI giant gas field 30Tcf each

in circa 2,000m wd
Fixed Platforms: Some Exceptions
Shell Bullwinkle GOM by wd 412m

77,000tons( 50,000t jacket/2,000t
topsides/10,500t piles/12,500t conductors),
529m high,1988 Statoil Troll Norway by wd 303m
683,000 tons concrete, 472m high,1998
Platforms in Deepwater
4 floating systems have been extensively used worldwide:

- SPAR
- TLP
- Semi Submersible
- FPSO
Floaters in service today
18 SPAR 24 TLP
47 SEMI 156 FPSO

and circa 10,000 fixed platforms
Offshore Programs 2013-2018
260 floating
7 SPAR
11 TLP
13 SEMI
125 FPSO
36 FSO
68 others
and
1,200 fixed
Courtesy of McDermott
Aging Subsea Wells Fleet
Producing Subsea Wells
(Average age of wells in years)
1,745
(11.8)
4,846 wells
752
(8.5)
391
(10 years)
1,040
918 (7.4) (9.4)
(11.2)
Source: Quest Offshore Resources Inc., February 2013
Everything Subsea
FLNG The Game Changer

Typical gas development
Export Pipe+LNG plant onshore
FLNG solution
(no export pipeline , no LNG plant)
Some Incredible Vessels
Dockwise Blue Marlim
Decommissioning: Pieter Schelte
Review of Unit 02
• The World needs low oil prices to have countries growth to

restart
• The World needs high oil prices to produce difficult oil
Go to Unit 03
The cure to high price is high price

02 - Subsea Past and Future

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Subsea Group Products and

Unit 02 Subsea: past and future

Copyright TECHNIP - All rights reserved

On successful completion of this unit you will :

On 26 August 1859 an historical event: the first on land oil

Early Offshore Developments

Offshore Industry 1900 to 1946

Platform Technical Evolution 1950 to 1970 (1/3)

Platform Technical Evolution Summary (3/3)

500m – 1,600m 600m – 3,000m 200m ‐ 3,000m 50m ‐ 3,000m

 First Subsea Well installed in 1961  Expansion in Santa Barbara

1970’s to 2000’s: The Growth

 World wide expansion :

 From single subsea tie-backs

 Mature Solution fully

From Mobil Beryl (1975) to BP Quad (2014)

BP QUAD-204 UK(West of Shetland)

Deep Water and Ultra Deep Water

Ultra Deep Water

World Record in Horizontal Drilling today

Longest reservoir drilled :Chayvo well

Shell Tobago (Gulf of Mexico) , in ~2,925m of water, is the

Longest Tie-back in service today

Conoco Magnolia Gulf of Mexico in 2003

Shell Perdido Gulf of

Petrobras Cascade Chinook Gulf of Mexico in 2009

Deepest Floater future

- Shell (100% operator) to develop

Blue Stream is the longest pipeline with 2x24” 1,213km (2003-12)

3) Global Energy Review

Oil demand (1%/year)

Acceleration of Upstream Spending

The Oil Companies

IOC : International Oil

Others : AHL, Anadarko, BG,

CAPEX Costs Indicator

Total Girassol Angola 2001

WD Rate Nbr Well Km pipe Km Reserves Costs Innovation

Total Pazflor Angola 2010

WD Rate Nbr Km Km Reserves Costs Innovation

Project Costs “Explosion”

Total Girassol Angola 2001

WD Rate Nbr Well Km pipe Km Reserves Costs Innovation

Total Pazflor Angola 2010

WD Rate Nbr Km Km Reserves Costs Innovation

UFL (Umbilicals Flowlines)

Project Costs: TOTAL Pazflor 2010

UFL (Umbilicals Flowlines) IPB

Major Projects delays announced in 2013

 Global Exploration and Production spending continue to grow

Subsea is “the Way to Develop Field”

Circa 400SSWH / year

Key Oil & Gas Regions

Other Significant Discoveries

Anadarko and ENI giant gas field 30Tcf each

Shell Bullwinkle GOM by wd 412m

4 floating systems have been extensively used worldwide:

47 SEMI 156 FPSO

Offshore Programs 2013-2018

Source: Quest Offshore Resources Inc., February 2013

FLNG The Game Changer

Dockwise Blue Marlim

• The World needs low oil prices to have countries growth to

First Subsea Well installed in 1961 Expansion in Santa Barbara

World wide expansion :

From single subsea tie-backs

Mature Solution fully

Global Exploration and Production spending continue to grow