Challenges in Setting Up Drilling Operations by MURPHY

Report
DEEPWATER DRILLING
CHALLENGES
BENJAMIN CHOO
GM, DRILLING – MURPHY MALAYSIA
MURPHY OIL CORPORATION
www.murphyoilcorp.com
NYSE: MUR
1
Introduction
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In search for oil and gas, operators have moved further
offshore and into deeper waters.
Deepwater is generally described as water depths >
1000 ft or 300 m.
Deepwater is the ‘final
frontier’ of oil and gas
exploration.
Deepwater fields have
large commercial
upside, hence
justifying the technical
and financial risks.
MURPHY OIL CORPORATION
www.murphyoilcorp.com
NYSE: MUR
2
Offshore Sabah Water Depths
Kinabalu
Field: 55m
Deepwater
Block K:
1,320m
Petronas
Towers:
452m
MURPHY OIL CORPORATION
www.murphyoilcorp.com
NYSE: MUR
3
Deepwater Drilling Challenges
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Deepwater drilling provides the greatest challenges in
scope and opportunity.
Drilling costs typically make up 50% to 60% of
deepwater development costs.
Overcoming deepwater drilling challenges is key to
unlocking deepwater oil and gas fields as they
represent the majority of the development risks and
costs.
Key aspects of deepwater drilling are the deepwater
drilling rig, support vessels, shore base, specialized
well planning, well control equipment and emergency
response.
MURPHY OIL CORPORATION
www.murphyoilcorp.com
NYSE: MUR
4
Deepwater Drilling Rig
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Deepwater drilling rigs are
floating rigs.
Semi-submersible or drill ship
design.
They are either moored or
anchored at location or are
dynamically positioned (DP).
High load capacity, large
storage capability and capable
of handling high wellbore
pressures (15,000 psi).
High day rates (>$500k/day).
MURPHY OIL CORPORATION
www.murphyoilcorp.com
NYSE: MUR
5
Deepwater Drilling Support Vessels
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Large support vessels for
deepwater drilling rigs
function as:
 Towing and anchor
handlers for moored rigs.
 Supplies fuel, tools,
material and equipment to
the drill rig.
 Remotely Operated
Underwater Vehicle (ROV)
support.
MURPHY OIL CORPORATION
www.murphyoilcorp.com
NYSE: MUR
6
Subsea Well Control Equipment
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Deepwater drilling rigs
utilize subsea blowout
preventers (BOPs) located
at the sea floor.
Subsea BOPs are designed
to operate in high external
pressures caused by water
depth and up to 15,000 psi
internal pressure.
Operated by electrohydraulic multiplex (MUX)
systems to achieve fast
response.
MURPHY OIL CORPORATION
www.murphyoilcorp.com
NYSE: MUR
7
Deepwater Well Construction
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Deepwater wells construction is unique
as it is based on a subsea wellhead
system.
Deepwater wells are challenging due to
the narrow window between the
formation pressure and the rock
strength.
Other challenges
include gas
hydrates and cold
seabed
temperature.
MURPHY OIL CORPORATION
www.murphyoilcorp.com
NYSE: MUR
8
Shorebase Support for Deepwater Drilling
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Good setup of a shore base
helps to efficiently support
deepwater drilling operations
and prevent expensive
shutdown of the drilling rig
The shore base needs to have
good infrastructure access,
ample yard space and sufficient
water depth at the quay for
large deepwater drilling support
vessels to berth.
MURPHY OIL CORPORATION
www.murphyoilcorp.com
NYSE: MUR
9
Deepwater Emergency Response
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Emergency well control
and blowout response plan
need to be developed.
Emergency response based
on ICS structure.
Access to subsea well
containment package.
 Subsea capping stack.
 Subsea dispersant
system and dispersants.
 Debris removal.
Ability to drill relief well.
MURPHY OIL CORPORATION
www.murphyoilcorp.com
NYSE: MUR
10
Other Challenges
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Escalating costs, i.e. rigs, vessels, third party services,
etc.
Finding and retaining competent key personnel.
Increasingly stringent regulatory requirements for
deepwater drilling post Macondo.
Long lead times for tools and equipment.
MURPHY OIL CORPORATION
www.murphyoilcorp.com
NYSE: MUR
11
Murphy’s Deepwater Operations in Malaysia
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Drilled over 120 deepwater wells in
Malaysia since 2002.
Global top quartile deepwater
drilling performance.
Held world record for deepest water
depth for mooring a semisubmersible rig for Ocean Rover in
8,430 ft (2,570m) of water depth.
Developed and producing from Kikeh
since Aug 2007 which is the first
deepwater field in Malaysia.
Production from subsea tieback of
Gumusut Kakap deepwater field.
First oil achieved from Siakap North
Petai deepwater project in Feb 2014.
MURPHY OIL CORPORATION
www.murphyoilcorp.com
Ocean Rover
SKD Menang, Kikeh DTU and Kikeh FPSO
NYSE: MUR
12
Deepwater Drilling Performance – Murphy Malaysia vs Global
Murphy Malaysia v Global - Sub Sea DBML (1000ft) - 2011 to 2013
9
8
107 New Development Wells, Drilled between 2011 and 2013, using a Semi Submersible,
or Drill Ship in water depths of between 503m and 1807m with 3 or 4 casing strings, using
Rotary Top Drive, Mud Motor and Rotary Steerable drilling methods
7.89
8.02
7.24
7
6.60
6.27
6
5
5.60
5.68
Murphy
4.41
4.46
4.59
4.20
3.84
4
3
2
2.70
1.98
2.13
1
0
MURPHY OIL CORPORATION
www.murphyoilcorp.com
NYSE: MUR
13
QUESTIONS?
MURPHY OIL CORPORATION
www.murphyoilcorp.com
NYSE: MUR
14

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