BP Andy Inglis Overview 2009

8/7/2019 BP Andy Inglis Overview 2009

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Andy InglisChief Executive, Exploration & ProductionHouston, 27 th May 2009


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Cautionary StatementForward Looking Statements - Cautionary StatementThis presentation and the associated slides and discussion contain forward looking statements, particularly thoseregarding capital expenditure, production growth and costs. By their nature, forward-looking statements involverisks and uncertainties because they relate to events and depend on circumstances that will or may occur in thefuture. Actual results may differ from those expressed in such statements, depending on a variety of factors,including the timing of bringing new fields on stream; future levels of industry product supply; demand and pricing;operational problems; general economic conditions; political stability and economic growth in relevant areas of theworld; changes in laws and governmental regulations; exchange rate fluctuations; development and use of newtechnology; changes in public expectations and other changes in business conditions; the actions of competitors;natural disasters and adverse weather conditions; wars and acts of terrorism or sabotage; and other factorsdiscussed elsewhere in this presentation.

Reconciliations to GAAP - This presentation may also contain financial information which is not presented inaccordance with generally accepted accounting principles (GAAP). A quantitative reconciliation of any suchinformation to the most directly comparable financial measure calculated and presented in accordance with GAAPcan be found on our website at www.bp.com

Cautionary Note to US Investors - The United States Securities and Exchange Commission permits oil and gascompanies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated byactual production or formation tests to be economically and legally producible under existing economic andoperating conditions. We use certain terms in this presentation, such as resources and non-proved reserves,that the SECs guidelines strictly prohibit us from including in our filings with the SEC. U.S. investors are urged toconsider closely the disclosures in our Form 20-F, SEC File No. 1-06262, available from us at 1 St Jamess Square,London SW1Y 4PD. You can also obtain this form from the SEC by calling 1-800-SEC-0330.

May 2009


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Alaska

Canada

NorthAmerica Gas

Gulf of

MexicoTrinidad &TobagoAndean

Angola

NorthAfrica

North Sea

Russia

Azerbaijan

Egypt

Middle East

& Pakistan

Asia Pacific

Southern Cone

(1) Resources at end-2008 on a combined basis of subsidiaries and equity-accounted entities, excluding TNK-BP

Conventional oil

Deepwater oil

Water flood viscousand heavy oil

Conventional gas

LNG gas

Unconventional gas

Global organisation and resource base

Non-proved: 28.0 bn boe

Proved: 14.6 bn boe

Excluding TNK-BP (1)

13 years

26 years

Proved: 3.6 bn boe

Non-proved: 15.4 bn boe

TNK-BP

45 years

10years


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Resource and reserve growth model:

The Hopper

Resources and reserves on a combined basis of subsidiaries and equity-accounted entities.

43.4 bn boe

End 2008

18.1bn boe

1.4bn boeTotal resources : production 44 yrs

25.9 bn boe

Start 2001

15.2 bn boe

1.2bn boeTotal resources: production 34 yrs

Non-proved resources

Proved reserves

PRODUCTION

Prospect

Inventory

ExplorationDiscoveries

DiscoveredResource Access

Field Extensions andImproved Recovery

Exploration Access


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Technology flagshipsEach has potential to deliver 1billion+ boe increase in reserves

Inherently Reliable FacilitiesMonitor, predict and managecorrosion to increase operatingefficiency

Pushing Reservoir LimitsAdvanced gas injection andwaterflood technologies

Field of the Future TMDeliver 100mboed through real timereservoir, wells and facility management

Effective Reservoir AccessFour-fold increase in reservoircontact area per well

Unconventional GasProve 12tcf tight gasresource

Beyond Sand ControlDeliver capital expendituresavings and incrementalproduction / resources

Unconventional OilProgress 2 billion boe heavyoil resource

Gulf of Mexico PaleogeneProgress 2 billion boe viasustained high pressurewell tests

Advanced Seismic ImagingLocate and enable access tonew resources

Subsea Well Intervention/Deepwater FacilitiesImprove subsea recoveryfactors


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ProduceDevelop

Driving excellence at each stage of the

lifecycle

Production

Time

EXPLORE DEVELOP PRODUCE

Explore

Identify Test Leadership Leverage


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Exploration: identifying the right basin


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Exploration: consistent delivery

0

10

20

30

4050

60

70

80

90

100

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Number of wells

0

10

20

30

40

50

60

70

80

E xpl or at i on s uc c es s r at e ( %

)

Total wells Play test wells Exploration success


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Exploration: Gulf of Mexico Deepwater

Basin mastery

Basin

Mississippi Fan

F l o r i d a E s c a r p m

e n t

Shelf

Mississippi Delta

Slope

0

10

20

30

40

Gulf of Mexico Shelf

Gulf of Mexico Deepwater

C

umulative Resources Billion boe

200 80060040001985

2000

1996

1000

Industry Cumulative Finding Curve

Number of Discoveries


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lifecycle

ProduceDevelop

Production

Time


Explore

Select Define Execute


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Targeting capital efficiency

Cost Structure Unit x Efficiency x Price=

# Wells

Complexity of wells

$ / mboed

Manhours

Unit of Activity Reservoir

understanding Cross discipline

integration

Days / 10k

Non productive Time

Manhour / ton

# of days execution

Manhour / ton

Efficiency Centralised organisation

(Spars, D&C, Subsea) FEL (Front End Loading) Systems and processes Standardisation

Rig rate ($ / day)$ / service

$ / ton materials

$ / ton materials

$ / day vessel

$ / manhour

Supply Chain Global leverage Competitive bidding Global relationships ->

performance and quality

20

40

60

80

100

0

D&C costs usingSpar Rig

D&C costs(Drilling &

Completions) using

Mobile OffshoreDrilling Unit

Subsea

Engineering andProject Mgmt

Spar

Costs (%)


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Standardisation: Design one Build many

Dorado 2009Gulf of

Mexico

King South 2009 Isabella - 2011Atlantis North Flank 2009

Egypt

Train 1 Supply 2008 Train 2 Supply Ph1 2010+ Train 2 Supply Ph2 2010+

Trinidad

Cannonball 2006 Cashima 2008Red Mango 2007 Savonette -2009

Angola

G. Plutonio - 2007 Bk31 PSVM 2010+ Bk31 Central 2010+ Bk31 South 2010+ Bk18 West 2010+

Azerbaijan

Central Azeri - 2004 West Azeri - 2005 East Azeri 2006 Deepwater Guneshli - 2008


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lifecycle

ProduceDevelop

Production

Time


Explore

Safe Reliable Efficient


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Produce: safe and reliable operations

Operating

ManagementSystem

Gulf of Mexico Personnel Safety

Recordable Injury Frequency (12 month rollin

g)

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

3Q08

4Q08

1Q09

0.20

0.40

0.60

0.80

Apr 2009 0.36

Jan 2008 0.69


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Produce: improving operating efficiency

RESERVOIR

Wells Facilities Export

IPC (Installed Production Capacity) =Entire system fully optimized at full rate

with no planned or unplanned losses

Actual ProductionIPC

Ops Efficiency =

$

Gulf of Mexico Choke Model

97.4% 97.8% 99.8% 95.1%

Ops Efficiency

Gulf of Mexico Operating Efficiency(excl weather and planned outages)

90

91

92

93

94

95

96

92.8

2006

92.6

2007

94.0

2008Operating Efficiency (%) 95.1

2009 - YTD

93.1

Thunder HorseGulf of Mexico SPU


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Agenda

Andy InglisChief Executive, Exploration & Production

Summary, questions and feedback5:15pm

Advanced Collaborative Environment (ACE)3:30pm

Mini Deep Dives Advanced Seismic Unconventional Gas Pushing Reservoir Limits Paleogene

2:00pm

Jackie MutschlerTechnology Vice President, Research &Technology

Technology1:00pm

Afternoon 1:00pm 6:15pm

Andy HopwoodStrategic Performance Unit Leader,North America Gas

North America Gas11:15am

Neil ShawStrategic Performance Unit Leader,Gulf of Mexico

Deep Water Gulf of Mexico10:15am

Mike Daly

Head of Exploration & Access

Exploration8:45am

Andy InglisChief Executive, Exploration & Production

Introduction7:45am

Morning 7:45am 12:15pm


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Todays presenters

Jackie Mutschler

Technology Vice PresidentResearch & Technology

Andy Inglis

Chief ExecutiveExploration & Production

Neil Shaw

Strategic PerformanceUnit LeaderGulf of Mexico

Mike Daly

Head of Exploration& Access

Andy Hopwood

Strategic PerformanceUnit LeaderNorth America Gas

BP Andy Inglis Overview 2009

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Transcript of BP Andy Inglis Overview 2009