Ceduna Sub ‐ Basin, Great Australian Bight, South Australia EPP37, EPP38, EPP39, EPP40 Eyre Peninsula Mineral & Energy Resources Community Development Taskforce March 2015 BP Confidential
Disclaimer The content of this presentation is derived from forward- looking statements and opinions based on many assumptions and contingencies and should not be relied upon for any purpose. 2
Great Australian Bight Permits Awarded permits in January • 2011 Work program commitment • including 3D seismic survey and Ceduna four exploratory wells. 2011-12 seismic survey • completed 2013 geotechnical site • EPP 43 investigation completed EPP 37 EPP 44 Permit extension granted • Port Lincoln EPP 38 Environment Plan to be • EPP 39 prepared under OPGGS Act EPP 40 EPP 45 Intention to commence drilling • in 2016 Statoil 30% equity interest Murphy/Santos acreage • Chevron acreage BP/Statoil acreage $20M Great Australian Bight • Research Program commenced 3
Logistics • Marine support in Port Adelaide – Dedicated berths for marine support to remote offshore locations – Liquid and dry bulk materials plant facility established near quayside – Capability to expand as needed to support multiple simultaneous offshore campaigns • Support provided via Ceduna and an alternate landing strip on the Eyre Peninsula – Provision for aviation base at Ceduna Airport – Contract awarded to Bristow – Alternate landing and refuelling capability at Coorabie 4
Rig Construction • Moss CS60E Harsh Environment Rig selected • Contract signed with Diamond • Being constructed by Hyundai Heavy Industries 5
Contracting Tier One contractors for BP are: • – Diamond Offshore Drilling - rig contractor, rig manning, drilling services, well construction, surveys, measurement and testing, rig equipment maintenance – Bristow which includes Fixed Wing and Helicopter Services, hangar, maintenance facilities and passenger handling Examples of services which could possibly be provided by locally based suppliers include: • – Logistics and warehousing – Machine shop – Environmental – Medical – Catering BP has opened an Industry Capability Network (ICN) portal with over 500 businesses registering their interest and South • Australian firms are already engaged. http://gateway.icn.org.au/project/3552/bp-great-australian-bight-exploration?psid=1410321935 • 6
GAB Exploration Drilling – Environment Plan Environment Plan (EP) prepared under Offshore Petroleum and Greenhouse Gas Storage (Environment) Regulations 2009. The EP addresses offshore drilling, and: Will include an Oil Pollution Emergency Plan • (OPEP) Must demonstrate that risks are ‘ As low as • reasonably practicable’ (ALARP) and ‘acceptable’ Must include objectives and standards to • measure performance Must be accepted by the National Offshore • Petroleum Safety and Environmental Management Authority (NOPSEMA) prior to drilling 7
Proposed Consultation Process • Preliminary briefing to identify stakeholder Initial EP concerns, potential data sources, particular consultation sensitivities so that we can address these during preparation of the EP EP preparation • BP will follow up initial briefings to discuss how issues will be addressed. This will be conducted before EP is submitted. Follow up feedback & consultation • During operations, consultation will be ongoing and will focus on operational EP submission matters Ongoing consultation during operations 8
GAB Development Challenges - Gas Gas Development Key Drivers • Gas volumes – small discoveries may struggle to be commercially viable, large volumes essential to economically develop an LNG scheme • Metocean conditions – very challenging during construction & operation, impact on development options still to be understood • Water depth > 1000m • Gas quality & fluid properties – can impact development complexity & cost • Gas market – demand & competition • Concept selection driven by safety, environmental, social, technical and economic considerations Offshore gas processing – FLNG Remote greenfield onshore site somewhere along the GAB coastline Onshore site close to existing industrial area & infrastructure 9
GAB Development Challenges - Oil Oil Development Key Drivers • Oil volumes – small discoveries may struggle to be commercially viable, medium sized fields would likely result in a standalone offshore development & multiple large discoveries could lead to some onshore processing • Metocean conditions – very challenging during construction & operation, impact on development options still to be understood • Water depth > 1000m • Associated gas – major challenge for remote oil developments is cost effective export route for limited volumes of associated gas • Oil quality & fluid properties – can determine need for new technology such as subsea separation & subsea pumping • Concept selection driven by safety, environmental, social, technical and economic considerations Offshore oil processing – FPSO or alternate floating structure Remote greenfield onshore site somewhere along the GAB coastline Onshore site close to existing industrial area & infrastructure 10
Patience is Required We are still in the early stages of exploration • Any development is subject to: • Hydrocarbons being discovered Type of hydrocarbons Volumes of hydrocarbons External factors will influence our • ability to commercialise any discoveries An enabling regulatory environment • is crucial Government and community • support is crucial There will be many opportunities in • South Australia if we find technical and commercial quantities of hydrocarbons 11
Exploration Timeline 2014 4Q - Logistics approvals • completed 4Q - Environment Plan • Consultation commences 2015 1Q - Commence construction • works on aviation and marine supply bases 2Q - Environment Plan • submitted 4Q - Aviation and marine • supply bases completed 4Q - Rig delivered • 2016 Commence exploration • drilling 12
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