Exploration Forum Burlington House, London - Oil and Gas Authority
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MER UK EXPLORATION TASK FORCE
Exploration Forum
Burlington House, London Monday 9th July 2018
Room hire sponsored by: Refreshments sponsored by:
© OGA 2018
This presentation is for illustrative purposes only. The OGA makes no representations or warranties, express or implied, regarding the quality, completeness or accuracy of the information contained herein. All and any such
responsibility and liability is expressly disclaimed. The OGA does not provide endorsements or investment recommendations. Oi l and Gas Authority is a limited company registered in England and Wales with registered number
09666504 and VAT registered number 249433979. Our registered office is at 21 Bloomsbury Street, London, United Kingdom, WC1B 3HF
exploration
Exploration Forum task force
Agenda
1pm Start
• Safety Brief and Introduction
• Exploration Task Force Review (Nick Terrell, Azinor)
• Licence Rounds (Nick Richardson, OGA)
• Petroleum Systems Project (Jo Bagguley, OGA)
2:30pm Break
• E&A Lookback & Stewardship (Matt Farris, OGA)
• Open Floor Discussion (chaired by Nick Terrell)
~4:30 pm Close
Next Exploration Forum Meeting - PROSPEX December 2018
exploration
task force
Exploration Task
Force Review
exploration
Exploration Task Force task force
Role: To revitalise exploration on the UKCS in order to add reserves to
replace production and secure longevity of the UK Petroleum Industry.
Attracting Investment – Promote inward investment and raise the
Priorities:
profile of UK Exploration and Production.
Delivering Future Activity – Define the Yet-to-find Potential of the UKCS
and deliver resources and value through appropriate activity.
Licensing Rounds – Support the OGA’s Licensing Activity and ensure fit
for purpose supporting data is published.
Geophysical Technologies – Encourage the adoption of geophysical
technologies and best practice. Support R&D activities, including
application of data analytics, machine learning and AI techniques.
Membership – Andy Alexander (Siccar Point), Ian Edwards (Spectrum/IAGC), Graham Goffey (Soliton
Resources), Chuck Guderjahn (BP), Katy Heidenreich (OGUK), Ben Hillier (Shell), Dave Lewis (Chevron),
Jenny Morris (Statoil), Jon Parry, Colin Percival (Parkmead Group), Nick Richardson (OGA, Regulator Chair),
Nick Terrell (Industry Chair; Azinor), John Underhill (HWU/Academia)
The XTF provides input on key strategic issues such as UK Industrial Strategy and collaboration
exploration
Exploration Task Force Members task force
Jenny Morris John Underhill Dave Lewis Graham Goffey Nick Richardson Colin Percival
VP Exploration Chief Scientist & Prof. Team Lead UKCS Founder/Direct Soliton Head of Exploration & Technical Director,
UK, Equinor Heriot-Watt University Chevron Resources Ltd. New Ventures, OGA Parkmead Group plc
Jon Parry Nick Terrell Andy Alexander Chuck Guderjahn Katy Heidenreich
Industry Professional Managing Director, Chief Geophysicist, Exploration Chief Upstream Ops Optimisation
(former Head of Azinor Catalyst Siccar Point Energy Geoscientist, BP Mgr, Oil & Gas UK
Exploration, DONG)
Please contact XTF Members to raise Issues or to Volunteer for Sub-Groups
Exploration Forum
Burlington House, London
Monday 9th July 2018
© OGA 2018
This presentation is for illustrative purposes only. The OGA makes no representations or warranties, express or implied, regarding the quality, completeness or accuracy of the information contained herein. All and any such
responsibility and liability is expressly disclaimed. The OGA does not provide endorsements or investment recommendations. Oi l and Gas Authority is a limited company registered in England and Wales with registered number
09666504 and VAT registered number 249433979. Our registered office is at 21 Bloomsbury Street, London, United Kingdom, WC1B 3HF
Offshore Licence Rounds
Exploration Forum
Burlington House, London
Monday 9th July 2018
© OGA 2018
This presentation is for illustrative purposes only. The OGA makes no representations or warranties, express or implied, regarding the quality, completeness or accuracy of the information contained herein. All and any such
responsibility and liability is expressly disclaimed. The OGA does not provide endorsements or investment recommendations. Oi l and Gas Authority is a limited company registered in England and Wales with registered number
09666504 and VAT registered number 249433979. Our registered office is at 21 Bloomsbury Street, London, United Kingdom, WC1B 3HF
Mitigating Barriers to Investment
Assets in Access to Cost JV Asset Licensing
Right Hands Infrastructure Lack of Capital Fiscal Regime
Reduction Misalignment Packages Regime
Working with Area hub or
OGA flexible and Infrastructure Contracting Facilitation and
finance strategy More Flexible
enforcing Code of Practice Strategies, standardised
community to synergies to help Licences with Low Improvements to
MER UK underpinned by Standardisation agreements and
understand new optimise asset Entry Levels Fiscal Terms
Strategy powers processes
& Simplification models available packages
Above-Ground Measures
Below-Ground Measures
Application of Open-Access, Machine Post-Well
Digital Learning, Well Cost Portfolio Skills Retention Low-Carbon
Geophysical Analysis, Play-
Subsurface Quantum Reduction Discipline & Development Synergies,
Technologies Based
Datasets, Computing & Exploration, CCS
NDR Big Data Basic Science
All Actions Underpinned by Improved Collaboration
OGA Exploration Actions and Initiatives
Government-Funded Seismic
• 29th Frontier Licence Round (2016)
~40,000 km 2D Seismic Data in Rockall Trough and Mid
North Sea High
• 31st Frontier Licence Round (2018)
~ 40,000 km 2D Seismic Data in SW Britain & East Shetland
Platform (New & Reprocessed)
Open Data Release
• Seismic & Well Data, plus Reports released publicly
through CDA and OGA Websites.
Stewardship/Good Practice
• Expectation that Industry uses Optimal Datasets
and Workflows.
• OGA Engagement to aid Risk Mitigation.
(Digital) Technology
• Working with OGTC, CDA, NPD and Industry on
Machine Learning Pilot Project in NNS
• Building on Data Delivery Capability through NDR
Licensing Stimulus
Licence Round Schedule
• Annual Rounds
• Frontier/Mature Alternation
Flexible Licences
• Innovate Concept
• Stage-gate approach
• Requirements to be tested at
appropriate phase
Low Entry-Level Costs
• Very low acreage rental rates
• New lower levy category created for
micro-businesses
OGA will issue
New Licensing Systema 5devised
year licensing plan in 3Qwith
in Collaboration 2017Industry30th Licence Round Awards
31st Offshore Licensing Round Launch
The Round is scheduled to open on:
Tuesday 10th July 2018
The Round closes for applications at:
14:00 GMT on the 7th November 2018
• The Round will be open for 120 days.
• A full list of the blocks on offer, and maps, will be available
on the OGA licensing rounds webpage:
https://www.ogauthority.co.uk/licensing-consents/licensing-rounds/
Round Closes Wednesday 7th November 201831st Offshore Licensing Round 1766 blocks on offer 370,000 km2 area (approx.) OGA also offering opportunity for industry to propose additional blocks in more mature areas, for possible inclusion where applicants intend to commit to a substantial firm work programme Block Nominations should be made in writing to Offshore.Exploration@ogauthority.co.uk before 16:00 BST on Wednesday 18th July 2018 Specifying i) the blocks of interest, ii) the rationale for requiring access in this round, iii) work already performed, iv) data available for analysis and v) an indication of the nature and timing of the intended firm work programme. The OGA expects work programmes in mature areas to be substantial (e.g. firm wells) with a commitment to rapid execution of operational activities. The OGA makes no guarantee that nominated blocks will be added to the 31st Round offering, and reserves the right to make nominated blocks available through subsequent licence rounds and out-of-round procedures. Additional block nominations may be added by OGA within next 30 days, only if requested in next 7 days
31st Offshore Licensing Round
Guidance Documentation will be available on the OGA Website31st Offshore Licensing Round
Seaward Marks Scheme
Unchanged since 30th Round:
Pay particular attention to
• Hydrocarbon Systems
Analysis (Play Elements)
• Risk & Resource Evaluation
• Process and
Methodology
• Phase Timing Marks
Marks Scheme available within Technical Guidance31st Offshore Licensing Round
Rentals Schedule, Levy & Fees
Rentals Schedule Levy
Application Fee
The licence application fee is
£2,100 for Seaward Production
Licences
Information on other OGA Fees & Charges is Online31st Offshore Licensing Round
Supporting Data
Supporting Data Available on ukoilandgasdata.com and ogauthority.co.ukNew Financial Guidance
OGA will announce any changes to guidance on OGA WebsiteExploration Forum
Burlington House, London
Monday 9th July 2018
© OGA 2018
This presentation is for illustrative purposes only. The OGA makes no representations or warranties, express or implied, regarding the quality, completeness or accuracy of the information contained herein. All and any such
responsibility and liability is expressly disclaimed. The OGA does not provide endorsements or investment recommendations. Oi l and Gas Authority is a limited company registered in England and Wales with registered number
09666504 and VAT registered number 249433979. Our registered office is at 21 Bloomsbury Street, London, United Kingdom, WC1B 3HFPetroleum Systems Update
Exploration Forum
Burlington House, London
Monday 9th July 2018
© OGA 2018
This presentation is for illustrative purposes only. The OGA makes no representations or warranties, express or implied, regarding the quality, completeness or accuracy of the information contained herein. All and any such
responsibility and liability is expressly disclaimed. The OGA does not provide endorsements or investment recommendations. Oi l and Gas Authority is a limited company registered in England and Wales with registered number
09666504 and VAT registered number 249433979. Our registered office is at 21 Bloomsbury Street, London, United Kingdom, WC1B 3HFRegional Projects: Industry & Academic Collaboration
Today
2015 - 2017 2018 onwards
21CXRM Supporting Government
Holistic UKCS Project
Regional & Thematic Focus Seismic Programmes
Data & Technology Focus
Frontier Basins 21CXRM
21CXRM Phase 1
Research Programme Phase 231st Round Exploration Data Release
Seismic and well data plus reports already released
Regional Geological Maps
• Northern North Sea & East Shetland Platform
• SW Approaches (interim delivery)
Well logs & Reports
• Hypo-Lias Project UK Appendix
• Additional joined digital well logs
Frontier Basins Research Projects
• Full deliverables from SW Approaches project
• Interim results from Rockall & MNSH
Data will be released on OGA WebsiteFrontier Basins Research Programme
3 x two year post-doctoral research projects
focused around OGA 2D seismic data
• Projects introduced at PETEX 2016
• New interpretations & insights in frontier basins
• Open publication of project findings and results
- publications, conferences
- delivery via OGA and/or University websites
• All projects completed by November 2018
- SW Approaches July 2016 to June 2018
- MNSH & Rockall November 2016 to November 2018
• Direct relevance to 31st Frontier Licence Round
Final Full Stack
Post-doctoral Research Projects to further understanding of Frontier BasinsMachine Learning – NNS Pilot Project
• Collaborative Partnership, initiated by TLB, sponsored by
the Exploration Task Force, supported by the OGTC
• Initial Project to identify overlooked pay opportunities
using digital log data
• Will make use of >7000 wells on both sides of Median
Line
• Future Machine Learning Projects in other areas using
well and seismic data
AOIMachine Learning: Courses & Hackathons
• Free training courses
- expectation that skills gained will be
used towards MER UK through
licence activity
• Free boot camp & hackathon events
16th to 18th November - Aberdeen
23rd to 25th November - Olympia
• Sponsorship opportunities for hackathons, including
opportunity to judge projects2018/19 Treasury Funded Projects • £5 Million Treasury funds to be made available to OGA for UKCS Exploration - funds available for 2018/19 financial year only • Funds are to Promote Exploration & Enhance Data Access • OGA, Steering Committee & Exploration Task Force Prioritisation of Projects • Tendering during Q1 2018 Projects • Largest share in support of UK Petroleum Systems Project • Additional Data Access Projects - improving access to existing legacy datasets - database of core analysis properties from scanned core photos - database of high resolution photos from thin sections - background work to maximise NDR data availability on go-live day • Publication of Unlicensed Prospects • Machine Learning Training Courses for Industry • Seismic Amplitude Calibration Study
UKCS Petroleum Systems Project Survey Results
Regional Maps
Producing licensees - 4 Producing licensees - 16
Time & depth surfaces, isopachs
Non-producing Non-producing Paleogeographic maps
licensees - 1 licensees - 9 Reservoir quality maps
Withheld - 1 Non-licence holders - 4 Data, Formats & Tools
Python code to automate analytical tasks.
Maps expressed in terms of risk, critical
= data driven factors
GIS products plus platform-independent
inputs
Provision of all key wells and data
Other Aspects
Inclusion of onshore data & knowledge
Tectonic overview - context for
migration/generation
Seep map analysis
Biostratigraphy & chemostratigraphy
• Estimated response rate ~40% Water salinity database
Interpreted estimates of uplift and erosion
- positive, but incomplete picture Source Kitchens & Fluids
Expulsion & capture efficiencies
Prediction of biodegradation and heavy oils
• Responses indicate need for wider remit than just source Mapped mud gas indicators
rock aspects of petroleum systems Compositional analysis of hydrocarbon data
Fluid phase discrimination
Migration and overpressure cells
• Key messages around data & databasesUKCS Petroleum Systems Project
Best levels of collaboration are those focused around data and database provision
Project should not generate detailed interpretations of the subsurface
– Operators are responsible for (and often prefer) generating their own detailed interpretation.
Purpose is to deliver high quality datasets of geoscientific data in modern, easily accessible formats with
minimum level of interpretation applied to allow data QC & expression regional trends
Datasets can be leveraged by Operators and other 3rd party organisations to provide enhanced interpretations
of the subsurface at both a play and prospect scale
Project also intends to allow the development of machine learning/ AI in the geoscience sector
- extraction of regional datasets from legacy databases (e.g. CDA)
- implementation of AI to analyse new comprehensive databases resulting from the projectUKCS Petroleum Systems Project: Year 1
Build a comprehensive, consistent geochemical database, plus supporting geological data, and deliver it
out to industry and academia for future use
Extraction and compilation of legacy geochemical data
- CDA, onshore, previous data releases
- onshore and offshore well sampling database in collaboration with BGS
QA/QC of data and identify data gaps
Requests to data owners for missing samples, reports and/or analysis
New samples will focus on fluid analysis
~ 100 oil samples available in storage via IGI
- will be making requests to Operators/data owners to help plug gapsUKCS Petroleum Systems Project: Year 1
Geochemical data assigned within consistent stratigraphic framework
- UKCS Regional Geological Maps stratigraphic framework
- QC’d well tops
- updated & merged depth grids
High level interpretation only
- regional geochemical trends
- spatial QC of data availability, type & quality
Industry domain expertise to provide technical steer & reviewUKCS Petroleum Systems Project: Proposed Model
• Annual delivery of thematic datasets
- Geochemistry, Pressure, Stratigraphy & Reservoir Properties, Seal Analysis & Field Analogues
• Designed to enable development & implementation of machine learning / artificial intelligence in the
Geoscience sector, through both data extraction and subsequent data analysisWhy should industry come on board?
Access to high quality geoscience datasets at a UKCS scale that would be extremely
costly to generate in-house
Datasets only available to participants for agreed period of exclusivity (3 years per
phase?), thus giving the participant a competitive edge
Datasets can feed directly into regional studies implemented by Operators to support
licence applications or fulfil work commitments
Access to UKCS datasets can reduce the cost of future projects
- likely eliminates net cost of participating in the UKCS Petroleum Systems Project.Proposed Next Steps
Industry check–in to gauge level of support & commitment
Continued dialogue to ensure alignment with NDR vision for next 4 years
Aiming for £1MM industry funding per year
- call for cash at PROSPEX 2018
- annual contribution £40K – £20K - £10K*
- 3 year commitment
*£40,000 - licensees with production
£20,000 - licensees with no production
£10,000 - non-UKCS licence holders, micro-businesses, onshore licences onlyData Reporting, Retention and Release
New NDR a first for the UK
OGA Open Data Centre
• Backed by Industry
• Huge Value from access
to timely, transparent
petroleum data
• Launch early 2019
• High demand for data
Unlocking Value through Data and AnalysisInformation & Samples Regulations
Information & Samples Regulations
Guidance
• Once all regulations are in
force, OGA will draft
Guidance explaining how
regulations will be applied
• OGA will populate the
NDR using data requests
underpinned by these new
powers
• OGA will start press-
releasing basic well
results
http://www.legislation.gov.uk/uksi/2018/514/made http://www.legislation.gov.uk/ukdsi/2018/9780111170342/contentsExploration Forum
Burlington House, London
Monday 9th July 2018
© OGA 2018
This presentation is for illustrative purposes only. The OGA makes no representations or warranties, express or implied, regarding the quality, completeness or accuracy of the information contained herein. All and any such
responsibility and liability is expressly disclaimed. The OGA does not provide endorsements or investment recommendations. Oi l and Gas Authority is a limited company registered in England and Wales with registered number
09666504 and VAT registered number 249433979. Our registered office is at 21 Bloomsbury Street, London, United Kingdom, WC1B 3HFE&A Lookback & Stewardship
Exploration Forum
Burlington House, London
Monday 9th July 2018
© OGA 2018
This presentation is for illustrative purposes only. The OGA makes no representations or warranties, express or implied, regarding the quality, completeness or accuracy of the information contained herein. All and any such
responsibility and liability is expressly disclaimed. The OGA does not provide endorsements or investment recommendations. Oi l and Gas Authority is a limited company registered in England and Wales with registered number
09666504 and VAT registered number 249433979. Our registered office is at 21 Bloomsbury Street, London, United Kingdom, WC1B 3HFOutline of Presentation
• Asset Stewardship Expectations and Revitalising Exploration
• 2017-20 Rig Programme
• A Word on COS
• Volume Prediction - Look-back on recent performance;
recalibration of the UK portfolio and ground truthing the mature
basins expectation.
• The Role of Stewardship and Way Forward
• The Stewardship Expectations in practice
• Conclusions and RecommendationsAsset Stewardship Expectations • For over a decade, average production efficiency in the UKCS basin fell to reach a low of around 60% in 2012. This was lower than many comparable basins around the world. While it increased in 2014 and 2015, further improvements in production efficiency are essential to Maximise Economic Recovery. • In 2017, that production efficiency has been improved to 74%. • The OGA’s Asset Stewardship Strategy recognises the value of improved asset stewardship across the whole oil and gas lifecycle, including stewardship of licences, exploration and appraisal, developments and decommissioning. • Here we are going to take a look at Exploration results and where improvements can be made; the Exploration Stewardship Expectations and their role in that journey.
Asset Stewardship
1. Joint Venture Hub Strategy
2. Exploration and Appraisal
Subsurface Work Programmes
3. Optimum Use of Subsurface
Data
4. Licence Activity, Decision
Points and Milestones
5. Robust Project Delivery
PE RF 6. Production Optimisation
7. Information Management
8. Technology Plans
9. Collaboration
10. Planning for Decommissioning
OPEX Decom cost
Proactive, structured and prioritised Single, annual UKCS Stewardship Survey
tiered reviews with operators to replaced 9 previous surveys; reduces
evaluate stewardship; priority given complexity, time, effort and burden on
to the greatest MER UK impact operators and the OGA
Structured data rich approach founded on clear expectationsRevitalising Exploration
Current State of Play Revitalising Exploration Activity
Introduced regular annual alternation of Frontier and
Number of wells has declined Mature rounds.
Only 20-25 E&A wells per year
Implemented “innovate” licence framework; very low
Average volumes discovered are entry barriers, designed by bidders to best meet
declining as the basin matures requirements of their exploration work programme.
Publishing free geoscience data, including seismic,
Exploration efficiency is currently maps, prospects and discoveries.
inadequate & facility life is time-limited
Introducing a National Data Repository (NDR) of well
UK Exploration is competing against and seismic information in 2019.
a global investment portfolioRevitalising Exploration Current State of Play Revitalising Exploration Activity Number of wells has declined Targeting Yet-to-Find Potential of Basin & Promote New Only 20-25 E&A wells per year Prospects & Plays Average volumes discovered are Improving Performance through Technical declining as the basin matures Stewardship and application of Quality, Modern Data Exploration efficiency is currently Integrating exploration into infrastructure Area Plans. inadequate & facility life is time-limited OGA in a unique position to support. UK Exploration is competing against Focussing on Value not Volume. UK has an attractive a global investment portfolio fiscal regime.
What is the Potential Impact from
Improved Future Exploration?
• Are our volume predictions
realistic?
• Can the right exploration be
brought forward to make the
greatest impact?
• Can we ensure better
delivery against the term of
the licence - greater And we can go further with potential combination from …
certainty in forecasting and Up to
planning (area plans)? 0.9 bn 4 bn 2-6-9 bn
From recovery factor From Area Plans Yet to findThe Current State • “Exploration is disappointing. The government quite rightly spent a lot of money on investigating new areas and we’ve had quite a good licensing round but we’re still vastly short in terms of exploration…” (Sir Ian Wood, 2018). • ‘Industry KPI’ set out in the OGA Corporate Plan 200mmboe / year through exploration.
E&A Drilling Look-Ahead Q1
2018 2019 2020
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
WoS
NNS
CNS
SNS / EIS
Well intent: Exploration AppraisalE&A Drilling Look-Ahead Q3
2018 2019 2020
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
WoS
NNS
CNS
SNS / EIS
Well intent: Exploration AppraisalChance of Success • Historical success rates across all plays tested 2015-17 45.3% • Industry predicted COS 44.9% • Actual success rate 45.2% • Although individual prospects not necessarily risked correctly. • Some success using common tools to enable more structured and consistent risking between partners (e.g. Milkov).
2017 Exploration Drilling
Provisional Results
Craster Achmelvich
Sween
Rona Ridge* Titan
S. Maclure x 2
• To date 15 wells concluded at an average well Jock Scott
cost of £22.4mm – halved since 2014 Partridge
Sturgeon
Ranger
• 181 mmboe potentially commercial recoverable Verbier Temple Wood
resources in 7 discoveries
Capercaillie
• 33% commercial, 48% technical success rate Shearwater
• COS risking accurate, discovered volumes in
line with OGA expectations
• Finding cost $2.5/boe @ $/£ 1.25
Sean Q
* Rona Ridge under evaluationSeismic Benchmarking
Seismic Acquisition: Initial Term Licenses – Exploration
Using Old Data
SE-03 Guidelines
Exploration
Phase:
“Acquire new
seismic every 8-10
years”
Company
20 % of licenses >15 year
old acquisitionSeismic Benchmarking
Seismic (re)Processing: Initial Term Licenses – Exploration
Guidelines on
processing
“Consider
reprocessing
seismic data
every 4-5 years” Good compliance - 83% of
licensesPortfolio Team
Gemma
Operations Director
• Prospects + Unsanct. discoveries Gunther Newcombe
Milne
PA
• Delivery E&A work programmes
• Technical assurance EXP & NV
CNS AM SNS/EIS AM WOS/NNS AM
Manager
Scott Robertson Eric Marston Brenda Wyllie
Nick Richardson
• Portfolio Analysis & YtF
• Licence round support Regional
Portfolio Exploration Licensing
Joanne
Paul Herrington Jen Brzozowska
• Stewardship Bagguley
Licensing
Admin Support
Geoscientist
Kim Moss
Andy Upton
NNS / WoS Exploration
CNS SNS / EIS Geophysics Technical
Alana Geologist
Matt Farris John Gordon Sven Larsson Analyst
Finlayson Malcolm
Claire Black
Gall
SE-02 SE-03 SE-04Stewardship Expectations
The Stewardship Expectations are one element of
the OGA’s Asset Stewardship Strategy, which
support the Maximising Economic Recovery (MER)
Strategy for the UK.
• If a Stewardship Expectation is not followed, OGA may
consider whether the operator/licensees comply with
their obligations under MER UK.
• Guidance on the Expectations is provided by the OGA.
• If the Expectations have not been adhered to, the OGA
may find it difficult to provide (timely) support to the
operator.
The Asset
Expectations are aligned
owners consistently with
do the the
right MER
things UK Strategy.
to identify & then exploit opportunitiesE&A Stewardship
Annual Survey
Focussed on drilling activity, 3-year look-ahead + prior year actuals
1 JV Hub Strategy 6 Production Optimisation
2 E&A Work Programme 7 Information Management
3 Optimal Subsurface Data 8 Technology Plan
4 Licence Activity 9 Collaboration
5 Robust Project Delivery 10 Decommissioning
Reviews
Tier 2 annual overview E&A activity linked to Survey; technical & building on
Fallow Reviews; emphasis on work programme (SE-02). Optimum use of
subsurface data (SE-03) & licence activity/plans (SE-04).
Tier 3 reviews linked to Expectations (OGA agenda, as required).
Guidance on theconsistently
Asset owners Expectationsdo theisright
published
things toby the OGA.
identify & then exploit opportunitiesUpdated
Guidelines Published
June 2017
https://www.ogauthority.co.uk/news-publications/news/2017/asset-stewardship-implementation-guides-now-available/
Please Read the Guidance Documentation.SE-02 (Why)
Expectation
• To ensure licensees study and exploit …the full suite of
leads and prospects on a licence.
• To enable the OGA to manage the full portfolio of
resources.
• To ensure the licence holder actively advances the
committed work programme.
• To identify opportunities for early relinquishment or
potential commercial stratigraphic block/licence splits.
• To directly support MER UK Strategy.SE-02, 03 & 04 Objectives
• To ensure that licensees deliver work programmes on a timely basis;
• and that they identify and exploit the full suite of prospectivity on all licences;
• provide the OGA with sufficient information to allow the performance of the UK’s
SE-02 exploration and appraisal (E&A) portfolio to be evaluated;
• and allow forecasting of activity that will inform the national budget;
• To assist with assessments of remaining resources;
• and enable recommendations to improve E&A performance and technical
evaluations to be shared with industry.
• To ensure that business decisions throughout the E&A lifecycle are informed by the
SE-03 most appropriate sub-surface datasets so that decision making is as robust as
possible.
• To enable OGA to support licensees with timely work programme execution;
SE-04 • To enable the OGA to facilitate licensee/joint venture alignment;
• To advise licensees on good practice including in relation to commercial activity.
Asset owners consistently do the right things to identify & then exploit opportunitiesSE-02 / 04 Integration
If the business process delivers on plan, then by design SE02/3/4 integrate easily and
utilise mainly existing material from technical assurance and business processes.
Integrate SE-02 into Plans/Business Cycle – Standard Deliverables Apply.SE-02 / 04 Integration
The innovate timetable is designed by the Licensee.
Integrate SE-02 into Plans/Business Cycle – Standard Deliverables Apply.We Want to Avoid This….
MER-UK not demonstrated.
Late licence requests may prove difficult to meet without prior engagements.OGA JV Meeting Attendance Reminder
Meetings: Statutory Notice
• There is statutory obligation to inform the OGA of certain joint
venture meetings Under Part 2, Chapter 4 (Meetings) Of The
Energy Act 2016.
• Exploration and Appraisal Well Pre-Investment Meetings:
‘Meetings where there is technical peer review on prospects
and undeveloped discoveries, with the intent that this will
lead to an investment decision regarding Exploration and
Appraisal (E&A) wells’.
• Written Notice >14 days Prior to Meeting
• OGA may choose to attend; all materials and meeting
summary must be sent to OGA.
OGA Powers to Attend Meetings if NecessaryConclusions
• Improvements in Industry performance have been demonstrated through Asset
Stewardship in other areas.
• Exploration has suffered through slippage of Well Investment decisions on licences;
despite a successful 30th Round with firm well commitments, an increase in activity
and investment decisions is required to avoid a decline in drilling beyond 2020.
• Industry prospect volume prediction requires attention if investment decisions are to
be achieved on the right prospects. Reputational.
• OGA are starting to capture pre- and post drill information. Benchmarking through
Stewardship allows us to now hold up a mirror to the industry, identify best practice
and will allow OGA to publish out in guidelines to the industry.
• Successful licensees build in the OGA Stewardship Engagements into their project
delivery; they deliver the technical work programme in a timely manner and support
MER UK.
Integrate SE-02to
Industry Needs into Plans/Business
Step up to Deliver Cycle – Standard Deliverables
on its Exploration Targets Apply.Recommendations
• Engage early with the OGA; engage on Area Plans.
• Empower exploration teams to build in SE-02 and 04 engagements into the project
plan. It will ensure timely delivery of the work programme. Use the Expectations to
support you in making recommendations to your investors/head office.
• Where the work programme cannot be delivered to schedule - recycle acreage into
next Round.
• Use common tools to structure communication of risk and volume – it can increase
success in farm outs or partner investment discussions. Note OGA recommend using
methods compliant with Rose (2001) and do already assess against this on
licence applications. Calibration of the P-small is essential.
• OGA aims to deliver performance-benchmarking reports based on pre-/post-drill
assessments that addresses COS and Volumetric assessments and makes broad
recommendations to industry regarding how to better calibrate evaluations.
Integrate SE-02 into Plans/Business Cycle – Standard Deliverables Apply.Questions?
?Reminder - Post-well analysis themes
(Pitfalls Conf. 2018)
Have your teams read the work by Christian Mathieu?
• Missing regional play-based work, including charge
• Data/Knowledge limitations; postage stamps, acqn, management, continuity
• Improved peer review, performance tracking and continuous learning
• External impacts - corporate/NV, Firm wells [schedule, rigs, oil price]
• Over-reliance on geophysics / DHI & lack of geological model
Christian Mathieu Dec’15, 98 wells, 24 companies, 2003-2013 https://www.ogauthority.co.uk/exploration-production/exploration/21st-century-roadmap/exploration
task force
Open Floor DiscussionExploration Forum
Burlington House, London
Monday 9th July 2018
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