NOT AN OFFICIAL UNCTAD RECORD
FMC Technologies
Subsea System Solutions
Colin Wilson
FMC Technologies
+34 647 491 783
colin.wilson@fks.fmcti.com
Presentation Overview
• FMC in Africa
• Technology trends in Africa
• The challenges
• The response
• Conclusions
2
Africa
13FMC
of 24In
Deepwater
Projects
Angola
Total Girassol/Jasmin
45 Well Development
Mauritania
Woodside Chinguetti
13 Well Development
Nigeria
Chevron Texaco Agbami
22 Well Development
Total of 24 Projects Since
1997
Angola
BP Greater Plutonia
45 Well Development
Congo
Total Moho
11 Well Development
Angola
Total Rosa
23 Well Development
Ivory Coast
CNR Baobab
13 Well Development
EG
Exxon Mobil Zafiro +
57 Well Development
243 Xmas Tree’s Installed,
delivered or on Order
3
FMC in Africa
Algeria
Libya
Egypt
Mauritania
Ivory Coast
Nigeria
EG
Gabon
Congo
Angola
South Africa
4
Africa Technology Trend
North
•
•
Predominantly Gas Market
–
reservoirs extremely large > 3Trillion
Cubic Feet
–
High Land based and Surface Activity
Subsea gas developments
–
trend to tieback to beach for subsea
•
Technology required: deepwater,
long step out distances and gas
compression
•
Medium to low well count projects
•
Limited requirement for in country
content and execution support
•
Generally ”onshore” mentality
–
Subsea technology not a commodity
5
Africa Technology Trend
West
•
Predominantly Oil market
–
reservoir sizes >500 Million Barrels
•
Offshore developments in excess of
1,000 metres
•
Little existing infrastructure, no
domestic market for gas by product
•
Technology drivers: deepwater,
subsea processing, use of 2nd and
3rd generation rigs, surface BOP
drilling, slender wells, LNG
•
High well count projects
•
Extensive use of FPSO solution
•
High requirement for in country
content and execution support
6
Africa Technology Trend
East & Southern Africa
•
Offshore Market – Gas???
–
Kenya: no proven reserves
–
Tanzania: > 2tcf (onshore Songa Songa & Mnazi
bay)
–
Madagascar: Gas & Oil identified on West Coast
–
Mozambique: Gas pronee (1960s 3 onshore fields
3.2Tcf)
–
SA: small number of producing gas fields
–
Namibia: gas prone (Kudu)
•
Water Depths 0m to 3000m
•
Investment in gas infrastructure
•
Technology drivers: deepwater, subsea
processing, use of 2nd and 3rd generation
rigs, surface BOP drilling, slender wells,
LNG
•
Low & High well count projects
•
Extensive use of FPSO solutions and
subsea to beach
•
Opportunity for in country content and
execution support
7
The Challanges
Industry Challanges
Africa specific Challenges
•
•
Local Content
– Exploring in record water depths
•
Limited Infrastructure
– Extreme reservoir pressures and
temperatures
•
Bidding Legislation
– Heavy Oil
•
General bureaucracy
Technology Challenges
– Subsea processing
– Long distance tiebacks
•
Lack of experienced people
•
Increase in raw material
prices
Generally push up suppliers costs & ultimately price
8
The response – Industry Challanges
Completion System
Production Controls System
Structures Templates & Manifolds
Intervention, Tie In & Connections
9
The response – Industry Challanges
Technical Challanges
•
Standardisation of equipment on worst case scenario
–
Modular designs for 15k psi, 350 degrees C and > 2500m water depths
•
Intelligent completions
•
Designing equipment – minimising requirement for specialist offshore vessels
10
The response – Industry Challanges
CPM Data Flow
Service and Support Center
Sand
Production
Hydraulic
System
Health
Instrument
Status and
Calibration
Electrical
System
Health
Choke
Performance
Multiphase
Flow Meter
Performance
Operator
Corrosion
Monitoring
FSM
Performance
Valve
Operation
Technical
Condition Index
(TCI) Generator
Internet
Data
Validation
Data
Storage
Report Generator
SAP/TCE
Field Model
Research and development
• Identifying technology gaps & investing in joint industry development studies
• System approach to optimising fields – wellhead to sales meter
• Lower CAPEX and OPEX over Life of Field
•LWI reducing intervention costs by 60%
•Seperation technologies & flow management increase field life by 10%
11
The response – Industry Challanges
Angolan
Expat
Total Employed
140
120
100
80
60
40
20
0
1999
2000
2001
2002
2003
EXPATRIATES
Year
2005
•
Onshore
21
Offshore
16
Total (A)
37
2004
2005
ANGOLANS
%
28%
Onshore
82
Offshore
14
Total (B)
96
%
72%
Total (A + B)
133
Commitment
Current Status
•
44 Angolan staff
•
96 Angolan staff
•
60% Angolan to expatriate
ratio
•
72% Angolan to expatriate
ratio
•
93% Angolan to expatriate
target
•
Reset Target of Angolan to
expatriate ratio to 97%
Lack of experienced personnel
–
Apprenticeships – no age restriction
–
Recruitmentment from developing countries
–
Unfortunately – we are source recruitment for operators
–
Training
12
The response – Industry Challanges
•
Increase in raw material
prices
–
Long term supply agreements
–
Risk – price fluctuations
13
The Response – Africa Challanges
Increases with
Min
Current Minimum
Mauritania
EG
Execution support
Ivory Coast
Current Maximum
Libya
Egypt
Congo
Manifold + Suction Anchors + Guidebases + Xmas Tree Assembly
Angola
Nigeria
Industrial Capability
Lead Time
Projects/Well Count
South Africa
Max
14
The Response – Africa Challanges
Protective Structures
Manifolds
PLET
15
The Response – Africa Challanges
Low Well Count
Sporadic Operation
Quayside Facility
Installation
Customer Provided
Facility
High Well Count
Sustained
Operation
Installation
+ LOF
FMC Provided
Facility
16
The Response – Africa Challanges
Bidding Legislation
• 3 bids and lowest cost wins
• Does not allow supply agreements
• Lengthy
General bureaucracy
• Pay representatives / agents / specialists to manage
17
The Response – Africa Challanges
NOC’s
Operators
NOC’s
Major service Companies
Operators
Major service Companies
18
Summary
1.
Operators Work with suppliers to identify technology gaps and invest in applicable
R&D programs
2.
Willingness to implement emerging technologies in fully integrated subsea systems
3.
Work with NOC’s - that cheapest at time of bidding is not always cheapest over the
life of field
4.
Global supply agreements save cost and could achieve early production
5.
Realistic expectations about local content
6.
Sustainable business is not country specific
7.
Making bureaucracy easier
8.
Working together through all levels of supply chain
9.
Its not the high oil price inflating suppliers prices
19
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