Techbits: Drivers of Deepwater Development in the Asia Pacific Region

Abstract

Ramlan Malek, Petronas General Manager—Petroleum Management Unit, and Ricardo Beltrao, Petrobras General Manager, set the stage for discussion among 78 participants representing numerous countries at the SPE Applied Technology Workshop (ATW) “Managing Deepwater in the Asia Pacific Region.” Held in Bangkok, Thailand, the ATW featured two keynote speakers: Malek on “Challenges in Managing Deepwater Field Development in Malaysia” and Beltrao on “New Technologies for Field Development in 3000-m Water Depths.” Water depth in the Asia Pacific Region is defined as follows. - Shallow water—depth less than 200 m. - Deep water—depth greater than 200 m but less than 1000 m. - Ultradeep water—depth greater than 1000 m. Highlighting some successful deepwater operations/development projects in the region and future projects on the horizon including Unocal’s Gendalo Subsea, Shell’s Gumusut/Kakap and Malikai, and some China Natl. Offshore Oil Corp. (CNOOC) ventures, production in the Asia Pacific Region will increase 60% by 2020, with most of the energy resources coming to production from deepwater assets. The challenge will be to develop these projects reliably, affordably, and in a timely manner, requiring close cooperation among host authorities, oil companies, and service providers. Speakers noted that a paradigm shift in mindset is needed to accommodate current operating experience in shallow water to the new potential deepwater environment. Commentary called for investment portfolios to be reshaped to address the need for technical proficiency and for efficient operations requiring a highly focused group to develop, build, and integrate deepwater business. The topic of “value erosion” in gas-handling projects and the industry’s need to invent and apply novel market solutions were other pertinent topics on which speakers and audience members presented their views. Also, cost reduction in Asia Pacific’s deepwater projects will come from the impact of new technology. While much of the technology is remotely operated, people will have a significant impact on how that technology is leveraged and in combining these technologies to create full-life-cycle savings. In addition to exploring the different corporate strategies for managing deepwater field development and operating experiences of the various regional operators, such as Shell in the Philippines, Unocal in Indonesia, and Petronas in Malaysia, the workshop focused on technical and commercial challenges. Participants conferred on eight technical challenges, from obtaining accurate metocean data for design development to geohazards.