Subsea Technology Challenges in the CaspianSubtech07 –”Mind the Gap”

Alan Edwards – Lead Subsea EngineerShah Deniz Stage 2 Project

Agenda

• Caspian overview

• Shah Deniz field

• Subsea technology challenges

• Approach to addressing technology gaps

• Longer term Caspian needs

Caspian overview

SCP Pipeline Route

0 300 km200100

Caspian Sea

Turkey

Iran

IraqSyria

Russia

Georgia

Baku

Ceyhan

Erzurum

KazakhstanBlack Sea

Tbilisi

Med.

Sea

AzerbaijanTurkmenistan

SCP

WER Pipeline

BTC

NER Pipeline

Supsa

Grozny

Novorossiysk

Batumi

0 300 km200100

Caspian Sea

Turkey

Iran

IraqSyria

Russia

Georgia

Baku

Ceyhan

Erzurum

KazakhstanBlack Sea

Tbilisi

Med.

Sea

AzerbaijanTurkmenistan

SCP

WER Pipeline

BTC

NER Pipeline

Supsa

Grozny

Novorossiysk

Batumi

• BP in Azerbaijan since 1992

• ACG oil production since 1997

• Shah Deniz gas production since 2006

• BTC pipeline – 1760km to Med Coast

• SCP pipeline – to Erzurum, Turkey

• Sangachal – world-scale onshore terminal

• Geographically isolated

− Caspian landlocked region

− Limited access via river/canals

• Water injection facilities on ACG field, first subsea facilities in the Caspian

Shah Deniz - field overview

• High-pressure gas-condensate reservoirs

• 100km from Sangachal

• Water depths vary from 50m to 550m

• Major geo-hazards to negotiate

• Stage 1 operating since Dec 06

− Jack-up platform dry-tree concept

SD PSASangachal

Baku

SD-A sail-away 2006

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Shah Deniz Stage 2 development concept

• Develop remainder of appraised field

• ALL SUBSEA DEVELOPMENT

− Additional 16-32 production wells

− Fully diver-less system

− Shallow water production platform

• Project feasibility demonstrated

• Early front-end engineering commenced

• First gas circa 2013

• Major subsea challenges

− Large-scale subsea development

− First subsea production system in Caspian

− 15k subsea technology

− Flow assurance

− Limited regional infrastructure

− In-country vendor support

21km

10km

21km

10km

Subsea development concept

• Focus on

− “No industry firsts”

− Long term equipment reliability

− Field standardisation

• 15k subsea trees

− Reviewing rig capabilities

• Subsea pressure protection systems (HIPPS) for flowlines

− 15k experience limited to North Sea developments

• Cluster manifolds (4 slot)

− Flexibility to drilling uncertainty

• Multiple manifolds on a piggable flowline loop

Subsea reliability – “it must work”

• Key concern for subsea systems

• Limited in-country support elevates the issue in the Caspian

• Long-term gas contracts increases emphasis on field-life reliability and availability

• Application of BP Reliability Strategy to systematically and rigorously address key issues:

Reliability stretch Technology Architecture Environment Resources

Technology Plan

Enabling Technologies

• 15k tree systems

• Pressure Protection Systems (HIPPS)

• Wet-Gas meters

• HP chemical injection

• HP diver-less connectors

Value improving technologies

• Direct Electrical Heating (DEH)

Qualification

• BP defines “Technology Readiness Level” (TRL) requirements for each project stage

− Subsea technologies “field proven” at system level

− Developing detailed plan for early front-end engineering to ensure requirements satisfied at component level.

Equipment selection

• Technology gap assessment being performed across vendors in conjunction with other BP Projects – determine TRL

• Qualification plans to be developed with interested vendors to determine development and qualification activities required to satisfy Shah Deniz project needs

• Early collaborative qualification work with selected vendors focussed on closing key technology gaps.

• Early commitment on key technologies

Future developments

• Exciting major new gas-condensate discovery in the Shah Deniz field announced by BP in Nov 07

• Deeper horizons with very high reservoir pressures

• Likely requirement for 20k subsea technology

• Subsea technology development programme required

Summary

• Caspian Sea set to be a major subsea region

• Current projects pushing the boundaries of existing technology capabilities

• Regional issues further emphasise the need for long-term reliability for subsea equipment

• Collaborative approach with vendors proposed to qualify technology

• Further exciting major future development likely to require 20k subsea technology