Decommissioning & Re-use in NL: A Joint Effort

Transcription

1 Oil & Gas Industry Forecast 2017 Decommissioning & Re-use in NL: A Joint Effort 28 March 2017

2 Agenda About EBN & NOGEPA Dutch decommissioning challenge NL Masterplan Joint Industry Project H Summary 2

3 about EBN (Data: NLOG, July 2015) Co-investor in E&P of natural gas and oil Non-operating partner (40%) for oil & gas companies Shares held by Dutch State 2015 results: 21 bln Nm3 (incl. Groningen) 2,6 mln bbl 2,1 bln State revenues Exploration >> Production >> Gas storage >> Distribution (wholesale) Distribution (private) EBN's influence and responsibilities 3

4 Represents the interests of the companies licensed to explore for and produce oil and gas in the Netherlands Vision: Contribute to an open and transparent energy transition towards a fully sustainable energy supply in 2050 Current projects: Code of Conduct, Decommissioning, NOx, NOGEPA Standards, Onsaardgas.nl, North Sea Integration 4

5 External and internal challenges CLIMATE CHANGE END OF FIELD LIFE PUBLIC ACCEPTANCE ACTIVITY LEVEL CAPEX EFFICIENCY STAKEHOLDER ENGAGEMENT SEISMICITY DECOMMISSIONING GAS PRICES 5

6 A changing environment Source: WEC NL

7 Staying in control of our costs 1. Based on reservation of ~ 3 mln per well based on 27 wells decommissioned to date as at January 2017 Source: Operator and EBN estimates total Netherlands (onshore + offshore) 7

8 North Sea Offshore E&P infrastructure UK N NL DK Total 4, , ,2 2, >10, , , , , , >35, Wells (#) Platforms (#) Subsea (#) Pipelines (km) Total future decom costs ( b) Decom expenditures 2015 ( b) Source: WEC NL

9 Urgency: COP approaching rapidly 12 ct with reserves only 12 ct 25 ct 25 ct with all resources Source: Operator data and EBN Infrasim, Netherlands offshore gas installations only 9

10 NL Masterplan Decommissioning & Re-use Objective: to provide clarity what needs to be done (by whom) to jointly and successfully decommission and re-use the Dutch E&P infrastructure: Safe Sustainable Cost effective Within regulations Continually minimizing residual footprint and reducing costs Developing NL capabilities will have positive impact on the international Decom market 10

11 NL Masterplan Roadmaps developed in Sep-Oct Quantification of work scope Formation of a National Platform International experiences Regulation Innovation 11 Implementation plan 2 Industry collaboration 4 Stakeholder mapping 6 Shared learnings 8 Standardisation 10 Transparent communication 11

12 Clear priorities in H NL Decom Database Industry collaboration Formation of National Platform National Platform to drive the Masterplan forward Stakeholder mapping International experiences Shared learnings Regulatory Standardisation NL Decom Database Regulatory to lay the foundation for industry collaboration determine topics and define dialogue strategy, start dialogue with regulator(s) Innovation Transparent communication Implementation Plan Shared learnings define scope and mechanisms of sharing learnings 12

13 Planning & execution conform Masterplan Example: 13

14 Priority deliverable H The National Platform (and website) established. The National Platform will drive the agenda of the Masterplan forward: - New effective and efficient regulation - Cost effective standardization and innovation - Execution of pilot projects - Re-use and re-purposing - Joint decommissioning campaigns National Platform: NOGEPA members + other industry + Government + NGO s 14

15 Collaboration is key Wind operators EZ 15

16 Resourcing setup to execute the JIP (H1 2017) Role descriptions sent to operators for team contribution Steering Committee Decommissioning Program Manager 100% dedicated Meets every 2 weeks Composed of former SC + BoR members Drives effort and ensures coordination Accountable for end result Supported by Communications Manager (0.5 FTE) and Legal Expert Competition Law (0.5 FTE) Dedicated team of 5 people to focus on the 4 key priorities + Plus resource commitment required from operators "Champions" committing part of their time every week to 1 topic Plus participation to larger group workshops when relevant National Platform 1 FTE project manager 50% support IT product owner 3 x 20% (1d/wk) Senior resources, with deep understanding of NL ecosystem NL Decom Database Regulatory Shared learnings 1 FTE project manager 50% data analyst once data received 5 x 10% (0.5d/wk) with knowledge of assets and existing datasets 1 FTE project manager 50% financial analyst to assess impact(s) 3 x 20 % (1d/wk) Senior resources, mix of ops, legal, financial backgrounds 0.5 FTE project manager (Might finish earlier than 100 days) 3 x 10% (0.5d/wk) With real life decom project experience 3 operators + 2 EBN 6 operators + 2 EBN 4 operators + 2 EBN 4 operators + 1 EBN 16

17 JIP kick-off 6 March 2017 Team representing EBN, operators and BCG Successful kickoff on Monday Process and logistics in place Typical two-week cadence Mon Tue Wed Thu Fri Sat / Sun Mon Tue Wed Thu Fri Sat / Sun Working sessions DB Reg NP SL DB Reg NP SL To stay connected WS Leads (Call / Mtng) WS Leads (Call / Mtng) Newsletter Newsletter Steerco WS input SC Steerco Draft for discussion only Bi-weekly working rhythm Sharepoint for communication and data-sharing 17

18 Success Factors to achieve the H goals Rigorous project management: Deliver on time what is planned for all 4 work streams Careful stakeholder and team management: Enlarge the group but preserve alignment High quality deliverables: Position EBN and NOGEPA as the driving forces on Decom Sustained pace: Keep every one onboard and motivated Impactful and visible launch of the National Platform: Will be the symbol of the project Tight control over the legal aspects: allowing to build database and to push on "regulations" topic Support from operators: need commitment in terms of resources and participation 18

19 Parallel ongoing initiatives NOGEPA, MEA and EBN work on financial security model for decommissioning (2017) WEC Netherlands to publish on North Sea opportunities (May 2017) EBN will benchmark decommissioning cost estimates (H2 2017) EBN study on decommissioning optimization (H1 2017) JIP on electrification of offshore installations (2017) Several initatives for Pilot projects on re-use / re-purposing: Road project - CO2 storage (Rotterdam) Platforms Naturally - ENGIE & EBN 19

20 Summary Oct 2016: NL Masterplan for Decommissioning & Re-use developed H1 2017: Operators (11) and EBN to execute the Masterplan 4 priority topics including communication plan National Platform (and website) as main deliverable H2 2017: Execution of Masterplan through National Platform International alignment on Decommissioning & Re-use 20

21 Thank you! 21