Preparation for drilling 9 Select best prospects for drilling 9 Conduct site surveys 9 Submit environmental impact assessment (EIA) 9 Gain drilling consents 9 Plan logistics 9 Select and contract rig 2
Location map 3
Prospects 4
Robust prospect economics Excellent fiscal terms corporation tax 26%, Royalty 9% Positive economics with a post tax NPV10 of 8/bbl* A 500 Million barrel discovery could be worth: 14 per share A 3.5 Billion barrel discovery find…
Preparation for drilling Select best prospects for drilling Conduct site surveys Colin More Submit EIA Exploration Director Consent to drill Implement logistical plans Select and contract rig 6
Site surveys Why Safety Risk mitigation and cost control Government requirements Insurance 3 elements: Deployment of wave and current meters Digital site survey & benthic sampling Geotechnical boring 7
Current meters Long term deployment to assess seasonal variations Near surface measurements compliment dataset from 2006-7 seismic survey. Full numerical current models used in EIA Currents measured from sea bed to sea floor…
Digital site survey and benthic sampling A large area of multibeam data was acquired over each site to survey for: anchor locations, sea bed stability, wrecks and debris, habitat mapping High resolution digital seismic to image top…
Geotechnical boring Rig mounted on large dynamically positioned vessel Survey bored, sampled and analysed 200m of sediment below sea bed Provided essential information for design and installation of conductor and riser…
Consent to drill & the critical path to drilling The East Falklands Basin has not been drilled before and a comprehensive EIA will be required. Base line studies: mammal and bird observations, sea bed sampling, multibeam images,…
Preparation for drilling Select best prospects for drilling Conduct site surveys Submit EIA Consent to drill Plan logistics Select and contract rig 12
Logistics Order long lead drilling equipment Wellheads Casing Drill pipe Establish operations base in the Falklands Agree use of facilities Offices Port Airport Storage Access to resources 13
Preparation for drilling Select best prospects for drilling Conduct site surveys Submit EIA Gain drilling consents Logistics Select and contract rig 14
Select and contract a rig Minimum 2 well exploration programme committed to by BHP Billiton By end 2010 (in licence terms and in farmout agreement) Additional exploration &/or appraisal wells under consideration Timing dependent…
Select and contract a rig Rig market & drilling costs Deep water rig market improving in terms of rig availability Deepwater rig rates are starting to fall Drilling service & material costs falling 600 500 Average Day Rate…
Select and contract a rig BHPB are actively seeking a rig Type of rig Either 5th/6th generation semi-submersible or large drillship How many available Up to 35 suitable rigs worldwide, but all currently contracted Where from…
Funding FOGL is not fully funded through the drilling programme Cost of drilling programme still to be defined Variables include mob/de-mob costs & number of wells Funding options under consideration Another farm-out: Approached by…
Summary Multi-billion barrel targets to be tested in initial exploration programme De-risked prospects Drilling programme committed to by BHP Billiton Attractive fiscal terms Drilling preparations well advanced 19
Disclaimer Some statements contained in this presentation or in documents referred to in it are or may be forward-looking statements. Actual results may differ from those expressed in such statements, depending on a variety of…
Loading...
