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The Callater Project

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Lunch and Learn

• Apache North Sea Limited

• Apache Projects Group

• The Callater Project

• Application of Mission Command

Project Management

Apache North Sea Limited

Apache Acreage

Apache Operated

Non Operated

Beryl

Buckland

Skene

Maclure

Nevis South

Nevis & Ness Complexes

Bacchus

Maule

Sage Gas Plant

Forties

Nelson

Oil Field

Gas Field

Tonto

Aberdeen

Central North Sea

Northern North Sea

10 Operated and 2 Non-Op Fields

8 Operated and 1 Non-Op Platform

SAGE Pipeline and Gas Plant

Callater

Corona

Seagull Discovery

North Sea Region

Apache Projects Group

Projects Group Mission

The mission of the Projects Group is

to provide Apache North Sea with safe

world class project delivery in order to

maximize the return on investment for

the Corporation.

Projects Group Culture

Pace, Innovation and Excellence

Unity of effort, focus and momentum whilst empowering

individuals to use their own discretion and initiative within the

implementation process

Delivery through Mission Command principles by maximising the

employment of:

• Leadership

• Sense of urgency

• Competence and capability

• Devolved decision making

• Accountability, authority and autonomy

• Best answers win

• Respect, integrity and trust

Mission Command Project Management

Mission Command is a philosophy of command,

with centralised intent and decentralised

execution, that is particularly suitable for complex,

dynamic and adversarial situations. It demands a

philosophy of command that promotes freedom of

action and initiative. Mission Command focuses

on outcomes, as it stresses the importance of

understanding what effect is to be achieved, rather

than specifying the ways by which it should be

achieved.

Mission Command Project ManagementMission Command Traditional Project Management

Assumes a project isProbabilistic Deterministic

Unpredictable Predicable

AcceptsDisorder Order

Uncertainty Certainty

Leads to

Decentralisation Centralisation

Spontaneity Coercion

Informality Formality

Loose Rein Tight Rein

Self-Discipline Imposed Discipline

Initiative Obedience

Cooperation Compliance

Acceptable Decisions Faster Optimal Decisions but Later

Ability at all Levels Ability Focused at the Top

Communication used

Implicit Explicit

Vertical and Horizontal Vertical

Interactive Linear

Organisation typeOrganic Hierarchic

Ad Hoc Bureaucratic

Leadership stylesDelegating Directing

Transformational Transactional

Appropriate forArt of Delivery Science of Delivery

Conduct of Operations Technical and Procedural Tasks

Outcomes

Cost $MM per Well

Bacchus $22m

Cost $MM per Well

Aviat $19m

Bacchus

Aviat

FNT $14m

FNT

The Callater Project

Callater Discovery

Buckland

NevisNess

Skene

Beryl

Callater

discovery

• First Apache drilled exploration well in the Beryl area (Apache 55%, Shell 45%)

• Risked mean reserve estimate of 45 mmboe

• Field can be produced via a short subsea tie-back to existing Beryl infrastructure

• Infrastructure design is focused on quick delivery for initial production while maintaining flexibility for further development in the area

Callater Reservoir

• Pay proven in 3 fault blocks, 4th to be drilled

• Formation pressures in range 7020-7500 psi (1750 psi overpressure)

• 40 - 430 API high GOR (3000 scf/bbl)

BERYL DEPTH MAP

9/19b-18Z

9/19b-18X

9/19b-18

1km416000 418000 420000 422000 424000 426000 428000 430000

416000 418000 420000 422000 424000 426000 428000 430000

65

84

00

06

58

60

00

65

88

00

06

59

00

00

65

92

00

06

59

40

00

65

96

00

0

65

84

00

06

58

60

00

65

88

00

06

59

00

00

65

92

00

06

59

40

00

65

96

00

0

0 500 1000 1500 2000 2500m

1:50000

BUCKLAND

SKENEK

Callater Facilities

Chemicals and

Hydraulics via Skene

13km Umbilical –

Electrical

Process and Export

via BA System

Transported via

Existing BA Bridge

Pipework

3.85km Bundle

Trailhead Manifold

3 Development Wells

Oil via Existing Skene

Bundle

Accesses RAT via

Existing Caisson

Bellmouth at Foot of

Riser A7

6 Slot Manifold with

Expansion

Callater Schedule

Callater Costs

Application of Mission

Command in Callater

Apply The Principles

• Leadership

• Sense of urgency

• Competence and capability

• Devolved decision making

• Accountability, authority and autonomy

• Best answers win

• Respect, integrity and trust

High

Low

Low HighEffort

Reward/Risk Cost/Time/Resource

£ £ £ £ £ £ £ £

Lean Teams

Risk Reward Contracting

Recommended Reading

Thank YouImage courtesy of Subsea 7

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Sector across the World