Mar 1, 2012 - on management's current expectations and assumptions and involve known and unknown .... 'ONEgas' is Shell'
Shell ONEgas Projects Overview
S 7 6
EEEGR SNS Conference. 1st March 2012 by Oliver Kleyn
Shell UK Limited
1 March 2012
1
Cautionary Statement This presentation contains forward-looking statements concerning the financial condition, results of operations and businesses of Royal Dutch Shell. All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements. Forward-looking statements are statements of future expectations that are based on management’s current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. Forward-looking statements include, among other things, statements concerning the potential exposure of Royal Dutch Shell to market risks and statements expressing management’s expectations, beliefs, estimates, forecasts, projections and assumptions. These forward-looking statements are identified by their use of terms and phrases such as ‘‘anticipate’’, ‘‘believe’’, ‘‘could’’, ‘‘estimate’’, ‘‘expect’’, ‘‘intend’’, ‘‘may’’, ‘‘plan’’, ‘‘objectives’’, ‘‘outlook’’, ‘‘probably’’, ‘‘project’’, ‘‘will’’, ‘‘seek’’, ‘‘target’’, ‘‘risks’’, ‘‘goals’’, ‘‘should’’ and similar terms and phrases. Also included as a forward looking statement is our disclosure of reserves, proved oil and gas reserves, proven mining reserves, organic reserves, net reserves and resources. There are a number of factors that could affect the future operations of Royal Dutch Shell and could cause those results to differ materially from those expressed in the forward-looking statements included in this presentation, including (without limitation): (a) price fluctuations in crude oil and natural gas; (b) changes in demand for the Group’s products; (c) currency fluctuations; (d) drilling and production results; (e) reserve estimates; (f) loss of market and industry competition; (g) environmental and physical risks; (h) risks associated with the identification of suitable potential acquisition properties and targets, and successful negotiation and completion of such transactions; (i) the risk of doing business in developing countries and countries subject to international sanctions; (j) legislative, fiscal and regulatory developments including potential litigation and regulatory effects arising from recategorisation of reserves; (k) economic and financial market conditions in various countries and regions; (l) political risks, including the risks of expropriation and renegotiation of the terms of contracts with governmental entities, delays or advancements in the approval of projects and delays in the reimbursement for shared costs; and (m) changes in trading conditions. All forward-looking statements contained in this presentation are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Readers should not place undue reliance on forward-looking statements. Additional factors that may affect future results are contained in Royal Dutch Shell’s 20-F for the year ended December 31, 2010 (available at www.shell.com/investor and www.sec.gov ). These factors also should be considered by the reader. Each forward-looking statement speaks only as of 15th November 2011. Neither Royal Dutch Shell nor any of its subsidiaries undertake any obligation to publicly update or revise any forward-looking statement as a result of new information, future events or other information. In light of these risks, results could differ materially from those stated, implied or inferred from the forward-looking statements contained in this presentation. Shell Uk Limited
1 March 2012
2
Shell ONEgas Projects Overview Shell is making significant capital investments in the SNS assets to ensure integrity of the facilities for the remaining lifetime of the producing fields: Clipper
Living Quarters
Bacton
Rejuvenation
Leman
Compression
Inde
Shell Uk Limited
Decommissioning
1 March 2012
3
Shell ONEgas Projects Overview ONEgas Facilities and Pipelines
B4 Pi
Tyra Pipe line
A6 /
‘ONEgas’ is Shell’s business unit managing the assets in the SNS both in the UK and NL
e pelin
26" 100 km
20"
Gas Terminals (at Bacton and Den Helder)
34" trunk line 470 km
2
F3-FB (Gaz de France - Suez)
gas fields
~50
Cutter QC
"
D15-FA-1 (Gaz de France)
platforms
"/2
Carrack West (2009)
16
Seal Pipe line
~90
Carrack QA
SHAMROCK
CLEAVER BANK HIGH
People
BR
BRIGANTINE
L5-FA-1 (Gaz de France - Suez)
Markham (CH4)
L2-FA-1 F15 (TotalFinaElf)
K5 -P (TotalFinaElf)
BG
OW BRIST
20" 5.4km
~550
" 24 km 7 10
OW BRIST
CARAVEL
M
K7-FA-1 K8-FA-3
PB Barque
" 12 m k 3.4
AQ/AC/AT (Perenco) PL Barque
K7-FB
12/14" and 2"
L9-FA-1
16 3.3k " m 30 " .8k m
LEMAN 'C' COMPLEX Indefatigable Export to Perenco Bacton
CP 14" m 2.7k
K14-FA-1P/1C
CD AK
K15-FB-1
SEAN FIELD
(4" mot 3.5k hbal m led)
BT 24" 4" (m
m othba lled)
10"
K14-FB-1
11"
10"
) ed
L13-FE-1
6"
16"/2"
20" 3.0k m
10 "
24" 8.1km
n cto n Ba ma t to Le xpor E
BT (Perenco)
BD
K17-FA-1
L13-FH
ne
L15-FA-1 (Gaz de France - Suez)
36" 178 km
AME-2
AWG-1
10 "
36" 130 km 24" 85 km
WG Loc al P
D
Shell Bacton
" 6.8
L13-FD-1
K15-FC-1
K15-FK
E
BRIST OW
NGT Pip eli
L13-FC-1 K15-FA-1
30" 7.6km (mothballed)
Pip
2 No
ll ba oth " (m 30 m ne .8k ali 57 Se
BP
0.7k
BH
" d4
PP
3 10 0" 7k m
and 4"
K15-FG-1 PD South
e
AP
8" km 2.2
20" 4.7km
eli n
Leman to Bacton Export
AD1
LEMAN 'B' COMPLEX
k 2.1
Se an
30"
RD
" 24 m
AD2
N
K13-A (Wintershall)
LEMAN FIELD
LEMAN 'A' COMPLEX
an 0" e3 lin m Sea 5.7k 5 o1
L10-A (Gaz de France)
North
ne
G
20 4.7 " km
K12-BD (Gaz de France)
Corvette
20" 36.5km
F
L9-FB-1 3 15 6" 9 km
L
35
SOLE PIT
N
n
K
10 2.5 " km
PR Clipper
io ns
PT Clipper
Skiff
12" 11km
te Ex
d 3" e an klin 73km
PM Clipper
10"
10"
T
trun
l
K8-FA-2
12"
NG
24"
co Gly
K8-FA-1AP
INDEFATIGABLE FIELD
12 km
L9-FF-1
12"
JD
24" 9.2k m
Glycol
K7-FD-1
NO GA TP ipe li
12/1 2" Gl4" and ycol 15.5 km
16" 23 km
PC Clipper PW Clipper
K8-FA-1
JP
20" 3.7km
PN Galleon
M7 (Cirrus)
12"
PG Galleon 14"
N-7 T Pip elin e
AME-1 ipel ine
BBL line
Gas Plant Den Helder
Q16
Assen
Please note that the situation as shown is not geographical correct ! EP200810214239001 December 2008
Shell Uk Limited
1 March 2012
4
Production Rate
Mature Assets - End of field life considerations new project uneconomic due to limited lifetime
Min. Flow
Time In late field life: - Wells, platforms, fields all have minimum flow or longetivity constrai - Production decline (uneconomic to produce tail end) - Uneconomic projects due to curtailed lifetime….
Shell Uk Limited
1 March 2012
5
Mature Assets - End of field life considerations
Lower costs for remaining small field developments
Reduce Operating Costs Min. Flow
Time Improve minimum flow (eg ‘deliquification’)
Better management of late field life (‘slow gas’)
Extension of asset life requires and integrated and multi-faceted approach 1 March 2012 Shell Uk Limited
6
The Evolution of Offshore Platform projects 2007 Platform costs typically halved with each new generation of design
1999
1994 1985
Monotower Trident 2013+ Reduced functionality Normally unattended Shell Uk Limited
Subsea 1 March 2012
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Clipper Living Quarters Project
Current LQ on Clipper platform
New accommodation helideck and crane
New 50m “Rectangular” Link Bridge
New 18m x 23.6m LQ jacket Shell Uk Limited
1 March 2012
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Clipper Living Quarters Project
Shell Uk Limited
1 March 2012
9
Bacton Rejuvenation Project
Shell Uk Limited
1 March 2012
10
Leman Compression Project
Current export compression system near end of useful technical life. Project aims to safeguard the production of Leman and other tied in fields.
Mainly replacement of one of two LP/HP trains (36 MW) whilst production continues.
Offshore work to start in Q2 2013, finishing by end 2014.
Currently deciding between a Brownfield and Greenfield concept. Shell Uk Limited
1 March 2012
11
Inde Decommissioning Project
Time lapse photography of the Decommissioning of the Inde Juliet Platform ...
Shell Uk Limited
1 March 2012
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Shell Uk Limited
1 March 2012
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