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UKCS Technology Insights

April 2019 Unless identified elsewhere, all data is from the OGA UKSS 2017 and 2018 Cover photos: High frequency FWI image – courtesy of DownUnder Geosolutions using Capreolus 3D data from TGS Ocean bottom nodes – courtesy of Magseis Fairfield Riserless mud recovery – courtesy of Enhanced Drilling Carbon composite pipe – courtesy of Magma Global Contents

Foreword 5 1. Seismic and exploration 22 Executive summary 6 2. Well drilling and completions 28 Operators’ technology plans 8 3. Subsea systems 34 Existing technologies for MER UK 12 4. Installations and topsides 40 Emerging technologies – MER UK priorities 14 5. Reservoir and well management 46 OGA’s technology stewardship 16 6. Facilities management 52 The Oil & Gas Technology Centre (OGTC) 18 7. Well plugging and abandonment 58 Technology plan feedback 21 8. Facilities decommissioning 64 Conclusions 70 Appendix - Technology spend 72 Image courtesy of Airbourne Oil & Gas Foreword

I am pleased to see constant progress in the way our industry is OGTC, MER UK Taskforces and industry sponsors. A small maturing and deploying new technologies for the UK Continental technical team will be established to measure progress on all key Shelf (UKCS). This important effort is being supported by the objectives. Ultimately, these objectives will be followed up and coordinated work of the Oil and Gas Authority (OGA), the monitored through the OGA stewardship to further encourage Technology Leadership Board (TLB) and the Oil & Gas Technology uptake and share best practice. Centre (OGTC). There are huge prizes in reserves growth, production value and, This year’s Technology Insights summarises the rich content of most importantly, safe asset operation and life extension from the UKCS operators’ technology plans, submitted through the OGA use of current and new technologies. annual Stewardship Survey in 2018. This gives the industry a very useful tool to share experience on available technologies to We shall also implement an extensive industry and public maximise economic recovery (MER UK) from the UKCS, and to communication plan to further promote engagement, awareness collaborate on the development of new ones. and uptake of technology to sustain the UKCS.

2018 was also a year of definition for the TLB. We engaged with I am really looking forward to continuing industry through the MER UK Taskforces to identify challenges our work through the TLB to support the and value opportunities which technology can unlock to achieve cross-industry uptake and realisation of MER UK objectives in the next five years. This has been done. the potential of technology for MER UK. We are in the process of appointing sponsors for each of the key opportunities, and working with the OGTC to define development plans for technologies which shall require new projects and investment.

2019 is a year of delivery and uptake of technology across Bill Dunnett industry. The TLB shall support collaborative working between Chairman, UKCS Technology Leadership Board

Foreword 5 Executive summary

This report provides a unique insight into companies’ technology portfolios, including strategies to access further Technology stages required technologies to maximise economic recovery. Are in This study is based on the technology plans which operators development submit to the OGA.

In 2018 UKCS operators spent £241m on developing and 26% Of technologies deploying technologies, an increase of 30% since 2016, but in the plans have still below the pre-industry downturn levels of 2014. The OGTC been deployed is adding financial resources and capabilities, including driving 17% Are still 57% more industry match-funding. at concept UKCS operators’ technology spend per annum stage

400 Innovation is very important to the future of the UK Rebound Continental Shelf (UKCS). 57% of technologies in 300 +30% Total technology -35% spend operators’ plans leverage existing solutions, whilst 26% of 200 Research & technologies are still under development with a further 17% development of opportunities at an initial concept stage. -43% (R&D) spend 100 Flatline

0 2014 2015 2016 2017 2018 2019 2020 2021

6 UKCS Technology Insights UKCS Technology mix (operators’ plans) Technology Stewardship Expectations

Facilities decommissioning cilities ecoissioning Expectation driven by

Well P&A Seismic and ell exploration

cilities ngeent Available operators’ Proven value added Large scope for wider Well drilling experience UKCS deployment Facilities and completions management eseoi n ell ngeent

Subsea systems Instlltions n tosies

Reservoir and well management Sse systes 41% Seismic & Well drilling Subsea systems Installations Asset Management Installations exploration & completions & topsides and topsides ell illing n coletions

Operators’ plans cover the full asset lifecycle, with an Seisic n elotion emphasis on asset management. Reservoir & well Facilities Well plugging Facilities management management & abandonment decommissioning Based on operators’ experience, the OGA has identified a shortlist of 30+ existing technologies which are critical for The OGA continues to engage with operators to ensure the UKCS. that, where feasible, these technologies are deployed.

Executive summary 7 Operators' technology plans

Good compliance with the Technology Operators’ survey submissions Stewardship Expectation (introduced in 2016) 2017 Survey • 74 operators have formulated technology plans for their 74 Operators UKCS assets and have submitted these to the OGA 2016 Survey No plan 7 63 Operators1 These plans show: Limited plan 12

• A rich basket of existing technologies, deployment of No plan 18 which should be more widespread • Common UKCS needs addressed through new Limited plan 8 Good summary plan 31 technology, with opportunity to share development and Good summary plan 16 piloting Operators reported that the technology plan submissions have also proved beneficial internally Comprehensive plan 21 Comprehensive plan 24 • A more systematic engagement of the different asset Source: OGA 2016 and 2017 UKCS Stewardship Survey teams on technology objectives, priorities and deployment Note 1: out of 68 eligible, 5 did not submit experience • 2017 survey 100% response rate • Significant improvement to previous year • 74% of submissions were of particular high quality • Evidence new entrants embracing technology

8 UKCS Technology Insights Technology delivery

Technology delivery

Undefined 20%

Vendors 65% direct solutions investment by 56% supply chain

Vendors partnerships, 9% Technology transfer spend (£ million) JIPs, 9% R&D spend (£ million) In-house, 6%

Note: JIPs include 40 OGTC projects • Operators’ technology spend is increasing and forecast to continue

• Over ten years, with £180m funding from the Aberdeen City Region • The supply chain is fundamental to the supply of Deal, the OGTC will co-invest with matched funding from industry technology solutions • To date the OGTC has directly invested £38m, and co-invested • Vendor-operator partnerships and joint industry partnerships play an important role £95m with industry • The OGTC has approved more than 165 projects • The supply chain contribution is considerable, with 65% of since October 2016 and has 68 trials in planning technology delivery coming from direct investment by the or completed supply chain

Operators’ technology plans 9 Technology maturity

Analysis of the technology plans show: Technology maturity • Predominant focus on technologies ready to deploy with Scoping phase, 17% 57% of total entries at the ‘existing’ stage Development, 12% • Importance of innovation; emerging technologies Emerging Testing/Piloting, 14% represent a healthy 26% of the plans • A ‘gap’ of 17% of asset needs are to be addressed by Early adoption, 11% technologies still in ‘scoping phase’ Existing Proven 46% Critical factors for delivery: • Operators sharing their experience in the deployment of recent technologies Total number of technologies from plans • Collaboration in development and piloting of new technologies, reducing cycle-time and risks • Proactive engagement with the supply chain, as most • 57% technologies ‘existing’, however usage not widespread technologies are developed and deployed by vendors • 26% technologies under development

10 UKCS Technology Insights Image courtesy of ASA

Operators' technology plans 11 Existing technologies for MER UK

Seismic and exploration​ Drilling and completions​ • 3D broadband​ • Modelling and simulation • Wide and multi-azimuth​ • Reduced casing string designs • Ocean-bottom acquisition​ and slim-hole • Latest inversion techniques​ • Measurement while drilling (MWD) and geo-steering • Time-lapse (4D) seismic • Technologies for efficient operations and non-productive time (NPT) reduction

Reservoir and well Facilities management​ management​ • Offshore wireless data devices • Data analytics for reservoir • Asset digitalisation and management integration with the shore • Monitoring, tracers, • Hard-to-reach inspection​ optical fibre • Non-intrusive inspections (NII)​ • (e.g. long life • Predictive maintenance electric submersible (ESP), and ESP management) • Flow assurance (e.g. wax and scale treatments)

12 UKCS Technology Insights Subsea systems​ Installations and topsides​ • Mechanically connected pipes​ • Low-cost, reusable normally • Spoolable pipelines unmanned installations (NUI) • Subsea boosting • Remote monitoring and automation​ • Multiphase flowmeters • Compact/modular processing • Smart and remote inspections equipment (e.g. oil, gas, water)

Well plugging and Facilities decommissioning​ abandonment​ • Digital and remote surveying​ • Well data management and • Technologies for efficient campaign planning ‘light-house’ operations • Cement-bond logging • Cutting and removal • Thru-tubing barrier placing technologies​ • Efficient section milling • Bundle sealing and cutting

Existing technologies for MER UK 13 Emerging technologies – MER UK priorities

Seismic and exploration​ Drilling and completions​ • Low-cost ocean bottom • Drilling automation nodes (OBN), permanent • Multilateral well design and sea-bottom sources • Smart completions • Artificial intelligence (AI) for • Alternative reservoir (real-time) processing stimulation technologies • Advanced interpretation integrating rock-physics and multiple surveys

Reservoir and well Facilities management​ management​ • Autonomous robotic inspections • Permanent wireless sensors ​ • Hard-to-reach area inspections • Sand controls (e.g. ceramic (e.g. under insulations and screens) trunnions) • Flow assurance solutions • Corrosion detection and (e.g. localised heat) prevention (e.g. self-healing • Alternative enhanced coatings) oil recovery (EOR) (e.g. • Health and usage monitoring microbial, foam)​

14 UKCS Technology Insights Subsea systems​ Installations and topsides​ • All-electric subsea controls • Versatile floating units • Local chemical injection • Unmanned loading buoys • Local power generation/storage • Advanced (e.g. self-calibrating, • Umbilical-less systems non-intrusive) multiphase meters • Subsea processing and storage • Heavy oil equipment • Un-manned loading buoys • Nano filtration, membrane • Reusable, standardised, technologies tie-back bundle

systems (HUMS) natural barriers) Well plugging and Facilities decommissioning abandonment • Alternative cutting • Bond-logging through technologies (e.g. laser, multiple casing strings corrosive fluids) • Alternative casing removal • Subsea removals techniques (e.g. laser, • Efficient site monitoring plasma) (e.g. autonomous • Alternative barriers (e.g. underwater vehicles (AUV), thermite, bismuth, and passive sensors)

Emerging technologies – MER UK priorities 15 OGA’s technology stewardship

Industry engagement​ Stewardship Expectation​ • Operators’ technology plan submission • ​Deployment of key existing technologies expected​ (annual UKCS Stewardship Survey)​ • Operators to demonstrate use of technologies –– priorities matching needs of operators’ portfolios​ matching their assets’ types and maturities: –– covering asset lifecycle​ –– by asset​ • Summary of findings –– by future project​

Technology Insights –– annual publication​ April 2018 –– on-line knowledge​ • Constant stream of –– existing technologies​ innovation is vital for MER UK​ –– emerging technologies (under development)​ • Industry priorities defined from plans and work with • Constant dialogue with the TLB​ technology managers (UKCS Technology • OGA works with the OGTC and Network)​ industry to deliver innovation​

16 UKCS Technology Insights Image courtesy of Tracerco Ltd

OGA’s technology stewardship 17 The Oil & Gas Technology Centre

Technology innovation

The Oil & Gas Technology Centre’s goals are to help maximise economic recovery from the UK Continental Shelf, anchor the supply chain and create a culture of innovation.

18 UKCS Technology Insights OGTC technology roadmaps

Driving change and unlocking £10 billion of value for the UK

Digital Marginal Subsurface Decommissioning Wells Asset Integrity Transformation Developments 10% increase in MER UK up to 35% cost reduction 50% lower well 50% under 50% cost reduction production efficiency 20bn bbls construction costs development

Digitally enabled Discover more Late life management Optimise design Tieback of the Future Risk based inspection supply chain and data analytics Develop more Post cessation of Flawless delivery Facility of the Future Digital and data production (CoP) Detection and architecture Recover more operaring expediture Maximise production Integrated energy condition based (OPEX) reduction monitoring Smart facilities Optimise Innovative removal abandonment Enhanced inspection Digitally enabled techniques worker Optimise abandonment Repair and mitigation Production solutions optimisation

The OIl & Gas Technology Centre 19 Image courtesy of Ecosse IP

20 UKCS Technology Insights Technology plan feedback

Technology domains Technology plans’ contents by domain

g Ex ionin plo 1. Seismic and exploration iss rat m ion om ec 11% D 14%

2. Well drilling and completions Facilities decom Seismic and exploration

3. Subsea systems Well P&A

s Well drilling t

and completions n

Facilities e

4. Installations and topsides management m Subsea p 34% o systems l e

v

e A Installations D 5. Reservoir and well management s s Reservoir and and topsides d l e well management e t i M F a 41% n 6. Facilities management a g e m e nt 7. Well plug and abandonment

• 41% technology applications are concerned with 8. Facilities decommissioning (mature) asset management • Decommissioning is an area of growing interest

Technology plan feedback 21 1. Seismic and exploration

Technology categories Industry insights • Combining high-resolution 3D broadband and the latest eohysicl cisition inversion techniques enables to better illuminate and de- risk UKCS targets (e.g. Pre-Zechstein, and injectites)

ocessing n iging • OBNs are useful for sub-basalt imaging and near- infrastructure shoots (e.g. 4D), however this technology is still expensive Ssce oelling • Majority of these technologies are provided by the supply

chain and the primary drive should be to ensure a more widespread usage of what is available Technologies eote in technology lns

Technology maturity • Key areas of technology developments aim at reducing the cost and footprint of survey equipment (low cost, and Emerging Existing permanent ocean bottom acquisition) • In addition, artificial intelligence (AI) promises to deliver significant reduction in seismic analysis cycle-time (e.g. potentially allowing real-time, simultaneous modelling) • Combination of different types of surveys to improve Technologies eote in technology lns subsurface imaging is not widespread on the UKCS, and Scoing eeloent ilot ly otion oen this may be an opportunity further enabled by AI

22 UKCS Technology Insights 1.1 Operators’ technology map Geophysical acquisition Processing and imaging Subsurface modelling Operator Geophysical acquisition Processing and imaging Subsurface modelling Operator Alpha Ithaca Energy Apache JTXG Ardent Oil UK Azinor Petroleum National Iranian Oil BP Exploration Neptune Energy Bridge Petroleum NSNR Burgate E&P Parkmead Group Pharis Energy Chrysaor Reach Oil & Gas Cluff Natural Resources CNOOC Shell UK Comtrack Ventures Siccar Point Energy ConocoPhillips Sumitomo Corallian Energy TAQA Europa Total Upstream UK Decipher Energy Whalsay Energy Draupner Energy EnQuest Equinor ExxonMobil Number of UKCS technology priorities reported by operators in their plans Hurricane Energy 0 1-3 4-8 9-13 14-17 Independent Oil & Gas

1. Seismic and exploration 23 1.2 Existing technologies

Seismic and exploration

Areas Technologies

• 3D broadband, e.g. Geostreamer, Isometrix, Broadseis, P-Cable (Azinor, Marathon, Chrysaor, Equinor) Geophysical acquisition • Multi-azimuth and multi-source (CDG, BP) • Ocean bottom nodes (Equinor, CNOOC, Chevron, Corallian, Dana) • Electro-magnetic survey (Bridge Petroleum)

• 3D seismic reprocessing (Cairn, Corallian, Repsol Sinopec, ExxonMobil, Hurricane, Shell) • Pre-stack inversion to discriminate lithology and fluid and improve imaging of injectites (Apache) Imaging and Processing • Migration algorithms: Least square (Apache), Generalised radon transform (Zennor) • Advanced amplitude variation with offset (AVO) and full-waveform inversion (FWI) (Apache, Equinor, BP, CNOOC)

• Steerable streamers and repeatability criteria for high-quality 4D (Apache) 4D • Deep-tow high-res 4D acquisition and processing (BP) • 4D acquisition using ocean bottom cables (Premier) • 4D processing (Dana, CNOOC, Repsol Sinopec, TAQA Total)

Logging • Formation pressure log (Total) • Isotopic analyser of mud gases for overburden characterisation (Total)

24 UKCS Technology Insights Exemplars Combining 3D broadband and latest 4D technology • 4D provides key benefits • 3D broadband, multi-azimuth –– improve reservoir and multi-source to increase management definition and reach –– optimise infill drilling • Integrated geoscience- –– maximise recovery processing techniques for greater accuracy and contrast • Use of 4D seismic has helped extend the field life –– velocity modelling of Apache’s Forties field, –– combined with gravity identifying remaining oil targets and improving data (e.g. sub-salt) reservoir management –– targeted multiple • Shell has successfully utilised 4D to derisk infill attenuation drilling in the Gannet cluster –– AVO –– FWI and high frequency FWI • Critical to illuminate difficult UKCS targets (e.g. Pre-Zechstein, sub-salt, and injectites)

1. Seismic and exploration 25 1.3 Emerging technologies

Seismic and exploration

Technologies Value • Low-cost ocean bottom nodes and robotics for installation (CNOOC) • Permanent and semi-permanent OBNs for reservoir area surveys (CNOOC) and ocean bottom sources (Total) • High-density and ultra high-density OBNs (BP) • Vertical seismic profiling, using distributed acoustic sensing (DAS) fibre in logging tools or embedded in wells Surveys (Total) • Combined use of Electromagnetic (EM) and high-resolution gravity data (experience from other basins, e.g. Norway) • Geochemical surveys using AUVs

• Deep-learning artificial intelligence for fast pre-stack 3D volume interpretation (Neptune) • Machine learning applied to well and seismic data (OGTC) Imaging and processing • Joint facies and impedance inversion (Tullow, Sumitomo) • Discrete fracture network modelling (Hurricane)

• Sand injectite modelling (JXTG Holdings, Equinor, TAQA) Subsurface modelling • Modelling of tight reservoirs (IOG, CNOOC) • Integration of deep-resistivity data sets into reservoir modelling (EnQuest)

26 UKCS Technology Insights Exemplars

Ocean bottom acquisition Structural modelling • The use of ocean bottom cables or • Structural validation can result in nodes provides: better understanding of gross rock volume (GRV) –– enhanced detail and data quality –– broader bandwidth acquisition/ • Many cases where traps are full-azimuth potentially larger than previously thought • Total used OBNs on Alwyn North resulting in the sanction of • Fracture modelling can result in the field life extension drilling better placed wells and higher well programme productivity • BP is using them at Clair Ridge • UK is home to a number of global for its baseline survey leading subsurface consultancies • A reduction in the cost of ocean bottom seismic, and the use of AI to process seismic data efficiently have the potential to unlock significant new opportunities in new exploration and old asset life extensions

1. Seismic and exploration 27 2. Well drilling and completions

Industry insights Sub-domains • Delivering more value from their wells is a key objective for operators esign n lnning • Advances in , casing, completions and illing eient n oetions stimulation are helping to reduce risk

Csing n coletions • Technology can deliver wells that are longer, multi-lateral, better targeted, at higher pressures and temperatures Stiltion • Many of these technologies are readily available from the supply chain but there is the opportunity for wider operator utilisation Technologies eote in technology lns Maturity • Further knowledge and technology developments have widened the opportunity for operators to utilise managed Emerging Existing pressure drilling, extended reach drilling (ERD) and slim- hole drilling techniques • Technology can contribute to a reduction in NPT, for example better understanding and management of borehole stability Technologies eote in technology lns

Scoing eeloent ilot ly otion oen

28 UKCS Technology Insights 2.1 Operators’ technology map

Well drilling and completions Design & planning Drilling equipment and operations Casing completions Stimulation Operator Design & planning Drilling equipment and operations Casing completions Stimulation Operator Alpha Petroleum Marathon Oil UK Apache North Sea National Iranian Oil BP Exploration OK Energy Burgate E&P Parkmead Group Cairn Energy Chevron Corporation Pharis Energy Chrysaor Premier Oil CNOOC Repsol Sinopec CNR Serica Energy ConocoPhillips Shell UK Corallian Energy Siccar Point Energy Dana Petroleum Spirit Energy Decipher Energy TAQA Europa Draupner Energy Third Energy Offshore EnQuest Total Upstream UK Equinor Whalsay Energy Hansa Hydrocarbons Hurricane Energy I3 Energy Independent Oil & Gas Number of UKCS technology priorities reported by operators in their plans INEOS 0 1-3 4-8 9-13 14-17 Ithaca Energy

2. Well drilling and completions 29 2.2 Existing technologies

Well drilling and completions

Areas Technologies • Advanced modelling/simulation for well planning (BP) using FullStream and PreDIX (Chrysaor) Design and • Execution efficiency platform for decision making (ConocoPhillips) • ERD (Cairn, Burgate, Chrysaor, Corallian, Marathon) working to extend its range (Total, ConocoPhillips) planning • Slim-hole wells (TAQA, Chrysaor, Shell) • Reduced casing string design (Whalsay Energy) • Remotely operated pipe handling, drilling monitoring and automation (Equinor, BP, EnQuest) • Real time pressure prediction (Equinor, BP, EnQuest) and managed pressure drilling (ConocoPhillips, TAQA) • ‘Rigid-lock’ well head system to overcome structural challenges (Dana) Drilling • Offshore treatment of mud and drill cuttings (Equinor, EnQuest, Dana) equipment and • Drilling fluids optimisation (CNR). Designer muds for well interventions (EnQuest) operations • Riser-less mud recovery (EnQuest) • Experience with advanced drilling bits and tools (Apache, Chevron) • Thin reservoir contact maximisation (BP, Premier, ConocoPhillips, Decipher, Hurricane) • MWD, logging while drilling (LWD), ‘ahead of the bit’ reservoir imaging using ultra-deep resistivity (EnQuest, Marathon, Whalsay Energy, RepsolSinopec) • High torque tubing and casing (Apache) • High pressure, high temperature (HPHT) ceramic sand screens (Shell) Casing and • Hydraulic submersible pumps (HSP) for heavy oil, ESP late life upgrades, reliability and high water cut (Apache, EnQuest) completions • Simultaneous water/ (SWAGL) design (Equinor) • Downhole diluent injection (Equinor) • Multi-laterals (Ithaca, CNR, Whalsay Energy, Premier)

Stimulation • Cost effective, optimised multi-stage hydraulic fracking (Spirit Energy, INEOS, ConocoPhillips) • Dissolvable plugs for multistage fracking in long-reach wells and chalk formations (ConocoPhillips)

30 UKCS Technology Insights Exemplars Technologies for efficient drilling operations Geosteering • EnQuest deployed four key technologies to de-risk the • Geosteering technologies Kracken development: allow operators to –– a riser less mud optimise targeting and recovery system landing of their wellbores which provided a (e.g. in thin reservoir build capability in developments) unconsolidated sand • Premier and Equinor have –– offshore thermal had success deploying cuttings processing steerable drilling systems resulted in logistical efficiencies due to not waiting during new and asset life on weather extension field developments –– an innovative reversible oil based mud for water • EnQuest successfully used injection reducing equipment levels advanced reservoir imaging –– real time pressure prediction was used to optimise while drilling to interpret drilling performance and increasing assurance reservoir up to 100ft from wellbore​ –– reduced well placement uncertainty​ –– increased confidence for side tracks​ –– improved reserve estimates and geological models​

2. Well drilling and completions 31 2.3 Emerging technologies

Well drilling and completions

Areas Technologies

• Automated drilling control systems (Equinor) • Wired drill pipe for high speed telemetry (Equinor) Drilling equipment, • Nuclear magnetic resonance (NMR) tools to define viscosity and permeability (Whalsay Energy) operations and data • Designer muds for ERD (Serica) gathering • Surface preventer (BOP) for deep water mobile offshore drilling units (MODU) (Chevron) • Coiled tubing drilling (Spirit Energy, Premier, Total) • Self healing cement (Bridge) • Suction pile conductor for unconsolidated seabeds (Siccar Point, CNOOC, ConocoPhillips, Total) • Stabbed-in cementing system for subsea (Chevron) Casing and • Well life cementing for ultra high pressure, high temperature (UHPHT) (Total) • Steam injection – High temperature (HT) completion components (Pharis) completions • Multi lateral gravel pack solutions (Whalsay Energy) • Subsea well head solids removal (Spirit Energy) • High frequency (HF) localised electric heating for flow assurance (Tullow) • Alternative retrofit pumps for wells end of life recovery (Apache)

• Stimulation techniques alternative to hydraulic fracking BlueSpark, Fishbone, Perf guns (IOG, CNOOC, Repsol Sinopec, Total, Shell) Stimulation • Dissolving perforating guns (no need to be retrieved) (Shell) • Stimulation opportunity for infill wells (BP) • Cost-efficient fracking/re-fracking of non productive wells (Perenco)

32 UKCS Technology Insights Exemplars

Automation Stimulation • Advances in analytics, sensors • Alternative technologies to and control systems allows for (e.g. greater automation of drilling pulsed stimulation and needle processes lateral systems) could improve recovery and operational • Equinor deployed wired drill efficiencies pipe to help unlock the complex Mariner development. • Equinor and AkerBP have invested in an unconventional needle jetting stimulation technology • High speed telemetry has enabled greater use of analytics thereby –– utilising erosion and chemical dissolution, formation improving drilling mechanics, penetration is made by an array of laterals hydraulics control, and –– provides bespoke and specialised stimulation petrophysical understanding solutions

2. Well drilling and completions 33 3. Subsea systems

Technology categories Industry insights Sse esign n concets • Advances in subsea inspection and monitoring Sse esign technologies and improved corrosion resistant ielinesn n concets ises materials are helping to maintain and extend the life

niolsielines ilicls n ises of vital subsea infrastructure n contols niols ilicls • Novel pipeline materials, alternative jointing eteingn contols n technology and innovations in flow assurance can flow assurance eteing n support efficient tie-backs and low cost marginal ocessingflow assuranceoosting n stoge developments ocessing oosting Insectionn stoge n • The majority of technologies are developed by inteention Insection n vendors, or in partnership with vendors and should inteention be considered for wider utilisation and concept select Technologies eote in technology lns TechnologyEmerging maturity Existing • Technology development is critical for operators Technologies eote in technology lns to maximise on current developments and future Emerging Existing opportunities. Many will have harsh and challenging

conditions (e.g. deep water, HPHT, H2S) • Future cost and operational benefits will be delivered by emerging technology developments (e.g. electric Technologies reported in technology plans subsea systems, local hydraulic and/or chemical Scoing eeloent ilot ly otion oen storage and local power supply and generation) T SecUhnolog Sies srepoer tUed in ilitecchnolsl ogiys eplans s lowlines Scoing eeloent ilot ly otion oen SU Sse Uilicls ises lowlines 34 UKCS Technology Insights 3.1 Operators’ technology map

Subsea systems

Operator Operator Subsea design and concepts Pipelines and risers Manifolds, umbilicals and controls Metering and flow assurance boosting Processing, and storage Inspection and Intervention Subsea design and concepts Pipelines and risers Manifolds, umbilicals and controls Metering and flow assurance boosting Processing, and storage Inspection and Intervention Alpha Petroleum UK Holdings Premier Oil Anasuria Operating Repsol Sinopec Apache North Sea Serica Energy BP Exploration Shell UK Cairn Energy Siccar Point Energy Chrysaor Spirit Energy CNOOC Sumitomo ConocoPhillips TAQA Europa Corallian Energy Total Upstream UK Dana Petroleum Wintershall Draupner Energy EOG Resources Inc Hansa Hydrocarbons I3 Energy Independent Oil & Gas INEOS Industries Ithaca Energy Marathon Oil UK National Iranian Oil OK Energy Number of UKCS technology priorities reported by operators in their plans Perenco 0 1-3 4-8 9-13 14-17

3. Subsea systems 35 3.2 Existing technologies

Subsea systems

Areas Technologies

• Mechanically connected pipe systems (Perenco, Wintershall) • Low cost pipelines (Premier, Wintershall) • Low cost subsea tiebacks and platforms for small discoveries (5+ operators) Low cost subsea options • Long/deep water subsea tiebacks (Siccar Point) • Standardisation and optimised design of subsea systems (Total) • Subsea hot tap technology (NSMP) • Thermoplastic composite pipe (TCP) flowlines and jumpers (Anasuria, Dana) • Low cost subsea concepts (5+ operators)

• Small scale compression and local power generation (Total) Subsea boosting • Increased oil recovery through subsea separation and pumping • Subsea pumping systems (5+ operators)

Flow assurance • Multiphase subsea flowmeter (Alpha, Marathon) and metering

• Efficient subsea inspections and monitoring systems (5+ operators) Subsea inspection • Intelligent pigging systems (5+ operators) • Pipeline wax removal (Total, EOG Resources) and maintenance • AUVs for subsea inspection and monitoring (Shell, Repsol Sinopec) • Marinising more inspection and detection tools (Total, Repsol Sinopec)

36 UKCS Technology Insights Exemplars Multiphase flowmeters Low cost subsea options • Subsea MPFMs are in use by a large • Chevron, Equinor, Shell, Total and number of operators worldwide e.g. BP, Apache have experience of long Shell, , ExxonMobil and Equinor subsea tiebacks (up to 190km) • Individual metering subsea has the including deep water applications potential to identify underperforming wells • Lower cost pipelines (mechanically and improve production optimisation connected pipe and composite Multiphase boosting/pumping pipe) could provide CAPEX efficiencies, enabling marginal • Shell, Equinor, Total, Chevron and discoveries and remote fields ExxonMobil have experience of multiphase boosting and pumping • Grouted tee and mechanical hot systems taps have been used extensively in the Gulf of but not in the • Subsea multiphase boosting UKCS provides increased recovery, topsides simplification and long tie-back applications

3. Subsea systems 37 3.3 Emerging technologies

Subsea systems

Areas Technologies

• Lighter over-trawlable systems or remove need for (Total) • Small scale unmanned solutions for deep-water applications (Siccar Point) Low cost subsea options • Deepwater subsea tieback technologies for West of Shetland (WoS) (Siccar Point) • Long subsea tieback technologies (Siccar Point, BP)

• All electric subsea control systems (Total) ‘Local’ subsea systems • Alternative local energy systems (Shell, Total) • Subsea storage of chemicals and hydraulics (Shell, Total)

• Subsea HPHT and UHPHT (Total) • All electric trees for small stranded UHPHT applications (Total) HPHT • HT reservoirs WoS (Total) • Technologies for small HPHT reservoirs (Total) • Advanced flow assurance and simulation technologies (Total, Wintershall) Flow assurance and • Subsea multiphase flowmeters without need for intervention (Alpha) • Pipeline drag reducers (multiple Operators) metering • Alternatives to intelligent pigging (pulsed eddy current technology) • HF localised electric heating for flow assurance (Tullow)

Subsea separation • Multiphase subsea pumping systems (multiple operators) • Multiphase boosting, pumping and metering systems (5+ operators) processing and boosting • Subsea processing (5+ operators) • Small scale compression and local power systems (Total, Premier)

38 UKCS Technology Insights Exemplars All electric subsea systems Low cost subsea options • Total has piloted the use of an • The OGTC ‘Tie Back of the Future’ all electric subsea XTree and initiative aims to unlock the large well, electric downhole safety volume of marginal discoveries valve (eDHSV) following a ten through: year R&D programme –– rapid tie backs • Results in simplified umbilical, enabling longer tie-backs –– 50% cost reduction –– no marginal development Alternative local power and storage systems stranded due to associated • The OGTC has supported the technology gap wet trail of a subsea power hub. This provides local power from seabed currents and local subsea power storage • Developing local hydraulic and chemical storage systems is a step towards minimising or eliminating umbilical systems that could be an enabler for longer tiebacks

3. Subsea systems 39 4. Installations and topsides

Technology categories Industry insights • Technologies that support standardisation and enable ie ltos lighter, smaller processing, treatment and compression Ss n Ss systems are important for retrofit and future marginal Setion tetent developments n coession eteing n onitoing • Increasing levels of automation can unlock lower cost platform solutions and reduce OPEX on existing assets Contol systes n totion • Accurate and reliable metering is required to address Inection systes ongoing monitoring and optimisation challenges Power and utilities • New membrane technologies alongside plant

modifications and enhanced procedures are being used Technologies eote in technology lns to improve and manage water treatment Technology maturity • The majority of technologies are developed by vendors Emerging Existing and are available ‘off the shelf’ or ready to be deployed • There are a number of capable technologies under development to support field development (particularly compact floating facilities, unmanned production buoys and non-intrusive flow measurement) Technologies eote in technology lns Scoing eeloent ilot ly otion oen

40 UKCS Technology Insights 4.1 Operators’ technology map

Installations and topsides

Operator Fixed platforms FPSOs and FSOs Separation, treatment and compresssion Metering and monitoring systems Control and automation Injection systems Power and utilities Apache North Sea Bridge Petroleum Cairn Energy CATS Management Storage Chevron Corporation Chrysaor CNOOC Corallian Energy Equinor Hansa Hydrocarbons Independent Oil & Gas INEOS National Iranian Oil OK Energy Oranje-Nassau Energie Parkmead Group Perenco Pharis Energy Premier Oil Sumitomo Number of UKCS technology priorities reported by operators in their plans Total Upstream UK 0 1-3 4-8 9-13 14-17 Whalsay Energy

4. Installations and topsides 41 4.1 Existing technologies

Installations and topsides

Areas Technologies

• Small scale separation process for out of specification water (Spirit Energy) • Efficient gas/oil separation prior to transporting oil in pipelines (Total) • Simplified separation and dehydration scheme on Bentley (Whalsay Energy) Fluids treatment • Separation technology for high water cut application (Perenco) • Multiphase booster compressor for gas and liquids to minimise system complexity (ONE) and processing • Naphthenate control using wash tanks (Pharis) • Produced water treatment and handling (Alpha Petroleum, INEOS, Chrysaor) and using silicon carbide membrane (Shell) online analyser (Equinor)

• H2S treatment technologies (Parkmead, CNOOC)

Control and automation • Full remote control and automation capability via satellite on Solan field (Premier) • Platform automation, remote monitoring and control (Apache, Total, Spirit Energy)

Flow measurement • Virtual metering (Apache) • Upgrade of existing meters to ultrasonic meters (Dana) and metering • Enhanced water treatment using centrifuge technology (Perenco)

• Low cost NUI facility in Southern North Sea (SNS) (IOG) • Automation and remote monitoring to enable conversion of existing facilities towards NUI status in SNS NUI technology (Premier) • Suction pile mono pod NUI application (Repsol Sinopec) • Cost effective NUI operations (Apache)

42 UKCS Technology Insights Exemplars Low cost platforms Compact water treatment • Efficient NUI concept used by • Alpha Petroleum’s SNS Kilmar ONE in Dutch Sector of SNS platform utilised a compact • Modular re-usable system water treatment package provides low cost platform option following greater than for water depths up to 55m expected water production • Platform generates local power through platform • Lack of deck space, platform weight and crane lifting mounted wind turbines and solar panels demonstrating a restriction required a novel solution novel approach that could be used for UK SNS gas fields • The technology demonstrated that compact low cost water treatment solutions can be installed on Facilities upgrades unmanned platforms • Existing facilities are often challenged by limitations on deck space and weight to accommodate upgrades • Repsol Sinopec used a suction pile monopod as a low cost alternative to an adjacent standalone platform • This technology offers opportunities for efficient upgrade for other UKCS platforms

4. Installations and topsides 43 4.2 Emerging technologies

Installations and Topsides

Areas Technologies

Heavy oil • Offshore steam to improve recovery of heavy oil discoveries (Pharis) • High temperature safety valve, flow control devices and non condensable solvent injection with steam (Pharis) • Compact processing technologies for heavy oil streams (Equinor)

• Non intrusive flow measurement devices (CNOOC) Metering • Accurate multiphase heavy oil metering (Equinor) • High accuracy gas metering (Spirit Energy) • Testing of new topsides and downhole metering concepts (Equinor) • Naphthenate control using wash tanks (Total, Pharis) Flow assurance • Inlet and outlet gas quality specification through use of advanced algorithms (CATS management) • Reduce topsides back pressures (Total), CAPEX-efficient and power-efficient solutions (SNS operators) • Unmanned developments for small fields (Parkmead) • Mini floating production storage and offloading (FPSO) solutions (Sumitomo) • Enhanced turret systems and polyester mooring lines (Chevron) Facilities • Low cost HPHT wellhead platforms (Total) • Low cost subsea systems and platforms for shallow water (Premier, OK Energy) • Reusable suction pile jackets (OK Energy) • Gas to liquids technologies (Spirit Energy) • Technology for extracting energy from waste water (Centrica Storage) Processing • Inefficient condensate recovery through continuous separation and automation (Spirit Energy) • New membrane technologies (Equinor, Wintershall)

44 UKCS Technology Insights Exemplars Metering Novel floating facilities • Non-intrusive flowmeter using piezo- electric transducers. Trialled onshore • Range of novel floating with view to offshore field trial concepts are being progressed • Non-intrusive multiphase flow measurement device using laser • OGTC ‘Facility of the future’ technology and machine learning. initiative is underway to OGTC supported project undergoing explore how to push the calibration trials to ready system for boundary of unmanned commercial deployment facilities (e.g. unmanned production buoys) Heavy oil • Such novel concepts could • Key technologies are being developed potentially enable marginal discovery development by industry to address operators’ heavy through cluster type developments oil technology needs • High temperature downhole safety valve to enable offshore steam flooding project being supported by OGTC • 3 in 1 heavy oil flowmeter with real time flowrate, density and viscosity capability. Currently at development stage with OGTC support

4. Installations and topsides 45 5. Reservoir and well management

Technology categories Industry insights

Seillnce • Advances in well and reservoir monitoring technologies n insection enable recovery optimisation, supporting asset and field life extension. These technologies could be used more t nlytics widespread

Artifical lift and • A range of technologies, including foam and rigid pigs, flow assurance ice slurry, heating systems and chemical treatments have ell inteentions been deployed to target ongoing wax and scale flow assurance challenges I n • Operators work with an established supply chain which provides the majority of technology solutions, most of Technologies eote in technology lns which are proven or at a stage of early commercialisation Technology maturity • Digital technologies and supporting data analytics could advance real time monitoring, advancing production and Emerging Existing increasing flow rates • There is a continued investment in cost effective EOR technologies, in particular polymer EOR and low salinity, with alternative methods receiving interest (e.g. microbial and thermal treatments) Technologies eote in technology lns Scoing eeloent ilot ly otion oen

46 UKCS Technology Insights 5.1 Operators’ technology map

Reservoir and well management

Operator Surveillance and inspection Data analytics Artificial lift and flow assurance Well interventions IOR and EOR Operator Surveillance and inspection Data analytics Artificial lift and flow assurance Well interventions IOR and EOR Alpha Petroleum Premier Oil Anasuria Operating Company Repsol Sinopec Apache North Sea Shell UK BP Exploration TAQA Europa Bridge Petroleum Total Upstream UK Centrica Storage Whalsay Energy Chevron Corporation Wintershall Chrysaor Zennor Petroleum CNOOC Corallian Energy Decipher Energy EOG Resources Equinor Faroe Petroleum Hurricane Energy I3 Energy Independent Oil & Gas Marathon Oil UK National Iranian Oil

Neptune Energy Number of UKCS technology priorities reported by operators in their plans Perenco Pharis Energy 0 1-3 4-8 9-13 14-17

5. Reservoir and well management 47 5.2 Existing technologies

Reservoir and well management

Areas Technologies

• Natural tracers and introduced tracers for production • Saturation logging tool pulsed neutron log (PNL) in chalk monitoring, also phase-specific applications to oil, gas, formations (BP) water and HPHT (Apache, Total, Bridge, Alpha) • Permanent downhole pressure gauges for suspended wells Surveillance • Fibre DAS, distributed temperature sensing (DTS) (BP, (Apache, Hurricane) and inspection Apache, Wintershall, Equinor) retrofit in mature wells (Repsol • Subsea B-annulus pressure monitoring (Total) Sinopec, Spirit Energy) • Anuli non intrusive inspections (Total) and leak detection • Carbon fibre rods for DTS DAS (TAQA) temp/acoustic sensing (Apache) • Cost effective production logging tool (PLT) (Total) • Monitoring casing strings conditions (Total)

• Automatic production optimisation and water injection • Analytics for distributed sensing (BP, CNOOC) Data analytics systems (Equinor) • Data mining efficiencies (Anasuria) • Cycling wells optimisation (Total)

• Automated gas lift optimisation (Apache, Alpha) • Capillary strings retrofit (Chrysaor) • CBM and control algorithms for ESP reliability and long life • Scaling - acid treatment downhole screens (Spirit Energy), Artificial lift and flow (Equinor, Perenco, Corallian, Decipher, Chevron, EnQuest) acoustic break up (Total) • Foam applications for liquid loading (Wintershall) automated • Waxing – removal methods e.g. foam pigs, bidirectional assurance foaming operations (Spirit Energy) rigid pigs, pressure jets, ice slurry, and heating systems • Surfactants and demulsifiers to enhance water injection (Chrysaor) rates (Apache, Spirit Energy) • Autonomous inflow control devices (Alpha, Apache)

• Coiled tubing (CT) interventions (Apache, Total) • Leak remediation, expandable tubing, resins (Chrysaor) • Artificial lift (AL) retrofit (EnQuest, Apache) • Wellbore sand CT vacuum removal (Perenco) • Water shut offs, flow conformance chemicals (Apache)

• Polymer EOR (Bridge, Equinor, Chevron, BP, Premier) IOR / EOR • Microbial EOR (CNOOC) • Low-Sal EOR (BP)

48 UKCS Technology Insights Exemplars Surveillance Data analyitcs • Fibre optic monitoring utilising • Apache UK utilises a reservoir simulator that takes full distributed acoustic and distributed advantage of parallel and multi-core processing temperature sensors provide valuable • The system can process information on: large data volumes of –– production zones varied types at speed –– cross flow –– seismic –– production and injection profiles –– rock properties • Permanent installation allows for –– well history dynamic flow conditions supporting effective • Supports a range of decision making simulations including • A disposable, low cost fibre line well monitoring system compositional, thermal and black oil models has been successfully trialled onshore in the US and • The system has since been deployed in another basin the UK. The system has been commercially deployed where Apache has interests onshore United States and South America. It is currently involved in offshore trials for different operators in the UKCS

5. Reservoir and well management 49 5.3 Emerging technologies

Reservoir and well management

Areas Technologies

• HT logging tools (CNOOC) Production surveillance • Downhole flow meters and gauges (Whalsay Energy) • Fibre, permanent sensors, wireless (Total) • Retrofit gas lift (BP) • Capillary string in subsea wells (Shell) • Sand control alternatives, bullhead (Spirit Energy) • Wireline deployed ESPs (Perenco) Artificial lift and flow • ESP new design for improved reliability and life (Equinor) assurance • Twin screw pumps for heavy oil (Whalsay Energy) • Water shut off, advanced methods using nanotechnology (CNOOC, OGTC) • Scale prevention / inhibition (Marathon) prevention of subsurface safety valve (SSSV) issues (Total) • Wax prevention and remediation (Apache, Chrysaor, Hurricane, EnQuest) • HF localised electric heating for flow assurance (Tullow) • Overburden monitoring and permanent 4D using fibre DAS and vertical seismic profiles (Total) Well integrity • Detection and repair of parted conductors (Total) • Autonomous inflow control devices (Alpha, Apache) • Water injection, voidage replacement optimisation (CNOOC, Apache, Spirit Energy) • Subsea raw water injection (i3, Apache, Chrysaor) IOR / EOR • Low-cost, non damaging polymers (Chevron) • Foam EOR (Neptune) • Next generation designer water (BP) • Reservoir recovery parameters, Improved oil recovery (IOR)/EOR screening and pilots programmes (Apache, Anasuria, EnQuest)

50 UKCS Technology Insights Exemplars EOR

Advances in flow assurance • There are EOR technologies that could deliver value for the UKCS • Flow assurance is an ongoing challenges –– polymer • Technology and mitigation –– low salinity processes are under –– miscible gas development (e.g. chemical, • BP’s low salinity Clair ridge ultrasonic disruption and localised heat treatment) development is expected to • Using a lightweight intervention vessel (LWIV), Shell deliver an additional 35 million barrels of oil cost effectively deployed ceramic sand screens in its • Chevron plan to use Gannet field polymer EOR for the • These are been assessed by Shell for HPHT applications Captain development with several new field developments being made polymer ready • Other EOR methods are demonstrating potential (e.g.

microbial, steam, foam and CO2)

5. Reservoir and well management 51 6. Facilities management

Technology categories Industry insights • Technology investment has allowed assets to operate etions n intennce beyond their design life, delivering additional production and field development opportunities onitoing eliility n otiistion • Remotely operated inspection technologies for hazardous or hard to reach areas deliver cost, safety Integity onitoing and efficiency benefits n insections • There should be a wider uptake of NII technologies for vessel inspection Integity eis • Exploiting digital based technologies has increased across the UKCS. The use of wearable and wireless Technologies eote in technology lns technologies, integrated with ATEX tablets provides Technology maturity efficient workflows

Emerging Existing • Integrated operation centres, digital twins and virtual machines have improved production efficiency, optimising real time asset management • Most technologies are developed by, or in partnership

with, vendors. Many solutions are available ‘off the shelf’ Technologies eote in technology lns but there are opportunities for operators to pilot and trial Scoing eeloent ilot ly otion oen new and emerging technologies

52 UKCS Technology Insights 6.1 Operators’ technology map

Facilities management Operations and maintenance Monitoring, reliability and optimisation Integrity, monitoring and inspections Integrity repairs Operator Operator Operations and maintenance Monitoring, reliability and optimisation Integrity, monitoring and inspections Integrity repairs Anasuria Serica Energy Apache North Sea Shell UK BP Exploration TAQA Europa CATS Management Total Upstream UK Centrica Storage Whalsay Energy Chevron Corporation Wintershall Chrysaor CNOOC CNR ConocoPhillips Dana Petroleum EnQuest EOG Resources Faroe Petroleum Marathon Oil UK NSMP Oranje-Nassau Energie B.V. Perenco

Premier Oil Number of UKCS technology priorities reported by operators in their plans Repsol Sinopec 0 1-3 4-8 9-13 14-17

6. Facilities management 53 6.2 Existing technologies

Areas Technologies

Wearable and wireless • Wider 4G coverage • More devices ATEX rated technologies • Body-mounted cameras, mobile data/communication (5+ operators))

Hard-to-reach area • Drones (10+ operators), splash zone and subsea crawlers (Chrysaor, Shell, Dana, Repsol Sinopec, CNR) • Visual (10+ operators), forward looking infrared (FLIR) (Repsol Sinopec, BP, EnQuest, Shell, Spirit Energy), CT inspections pipeline scanner (Shell, Repsol Sinopec)

• Fabric repairs (10+ operators) Composite repairs • Structural repairs (Repsol Sinopec, CNOOC, ConocoPhillips, Shell) • Repairs in splash zone and other very harsh areas (Shell)

Corrosion detection • Detection - ultrasound (thickness), pulse-eddy current (flaws), x-rays (internal) (10+ operators) and monitoring • Monitoring (Shell, Chevron)

Real-time • Condition based maintenance (CBM) rotating equipment (5+ operators) • Subsea electrical fault finding (BP, Marathon, Shell, Total) asset monitoring • Onshore virtual centres (5+ operators)

Asset digitisation • 3D asset surveying – photogrammetry and laser scanning (10+ operators), including subsea (Shell), point and shoot survey (Shell)

54 UKCS Technology Insights Exemplars • New sensors are multiplying Wearable cameras and communication capability (e.g. FLIR, laser (voice/visual/data) imaging, detection and • Mobile working reduces inspection ranging (LiDAR) cycle time delivering operational –– OPEX efficiencies efficiencies –– safety improvements • Operators Repsol Sinopec and –– asset life extension Chrysaor have deployed wearable technology on their brownfield • The supply chain is delivering more value, integrating assets improving reporting and data collection and analysis processes enabling data trending Integrated operating centres • Technology enables service level • Operators (Chevron, Repsol operations from supply chain Sinopec, ConocoPhillips and Drones for hard to reach areas BP) have deployed integrated operating centres (IOC) on their • Anasuria and Total have asset portfolio deployed on FPSOs and large complex assets • Integrated with vendors’ fault finding systems • The Montrose and Arbroath IOCs (Repsol Sinopec) have increased uptime, aided production optimisation, enhanced safety and reduced OPEX 6. Facilities management 55 6.3 Emerging technologies

Facilities management

Technologies Value

• On-line vessel/tank inspection without entry - ultrasonic corrosion mapping, time of flight diffraction (5+ operators, OGTC) Non intrusive inspections • Corrosion detection without insulation removal, enhanced/pulse-eddy current (Repsol Sinopec, CNOOC, Chrysaor, CATs, Taqa, OGTC)

Autonomous and • Beyond line of sight drones (Spirit Energy) • Robotic arms, autonomous multitasking robots (Total, Shell, Chevron, OGTC) robotic systems • Autonomous drone external corrosion survey (BP) • Live-line and surface tolerant coatings, protective and self healing coatings, hydrophobic and free draining Corrosion prevention coatings (CATs, Centrica Storage, Chevron, Repsol Sinopec, Shell) • Flange and bolt protection (Shell, Chevron, CNOOC, CATs) • HUMS, digital analytics (5+ operators) Predictive maintenance • Vibration analysis cameras (Apache)

Additive manufacturing • Offshore component manufacture (Shell, Total)

56 UKCS Technology Insights Exemplars

Non-intrusive inspection –– safety and cost benefits • Total and the OGTC completed on- –– supports alternative facility line field trials on the Elgin Franklin designs platform • Development has transferred • Repsol Sinopec have widely from academia to real world adopted NII trialling

–– results correlate with traditional Corrosion prevention techniques • New coating technology –– no downtime or safety challenges advances corrosion monitoring –– in many cases NII is being seen as more effective to prevention than an internal visual inspection • Total and CNOOC Autonomous and robotic systems have trialled a self healing ceramic phosphate • Total and the OGTC are trailing an autonomous coating on aging assets inspection robot at the Shetland Gas Plant. An offshore trial is planned on the Alwyn platform • Shell have successfully used hydrophobic barriers on Shearwater and Nelson • System performs visual inspections, reading dials, gauges and valves • Supply chain transferring technology from other sectors (e.g. downstream)

6. Facilities management 57 7. Well plugging and abandonment

Technology categories Industry insights

t n lnning • To achieve the target of a 35% reduction in decommissioning costs, operators must reduce ell insection n the overall cost of well plugging and abandonment ceent conition (P&A)​

Inteention eient • Rig-less operations, improved casing milling tools alongside alternative cutting technologies (e.g. laser, Ting n plasma, water jet) could reduce costs ​ csing eol • Alternatives barriers to cement (e.g. bismuth alloys, ie teils resin, thermite, natural barriers) are under trail n lceent and assessment ​ Technologies eote in technology lns • The majority of technology needs are looking to Technology maturity emerging solutions, but existing and enhanced technologies are delivering real benefits​ Emerging Existing • Through tubing logging remains a challenge, but advances in tools (e.g. pulsed neutron, x-ray, ultrasonic) and data processing techniques are improving imaging​ Technologies eote in technology lns • Collaborative initiatives can provide an essential Scoing eeloent ilot ly otion oen contribution to technology development

58 UKCS Technology Insights 7.1 Operators’ technology maps

Well plugging and abandonment

Operator Data and planning inspection and Well cement condition Intervention equipment and Tubing casing removal Barrier materials and placement Operator Data and planning inspection and Well cement condition Intervention equipment and Tubing casing removal Barrier materials and placement Alpha Petroleum TAQA Europa Anasuria Total Upstream UK BP Exploration Centrica Storage Chevron Corporation Chrysaor CNOOC CNR ConocoPhillips Endeavour Energy EnQuest Fairfield Energy INEOS Ithaca Energy Marathon Oil UK Parkmead Perenco Premier Oil

Repsol Sinopec Number of UKCS technology priorities reported by operators in their plans Shell UK Spirit Energy 0 1-3 4-8 9-13 14-17

7. Well plugging and abandonment 59 7.2 Existing technologies

Well plugging and abandonment

Areas Technologies

Data and planning • Multi-well campaign planning (Tullow, ConocoPhillips, Spirit Energy)

Well inspection and • Efficient logs and surveys in the planning phase with preparation for intervention (Anasuria, Premier) cement conditions • Use of cement bond logging and data modelling (Marathon, Shell)

Intervention equipment • Efficient clean up tools (Total) • CT deployed perforating guns and isolation tools (Tullow)

• Tubing agitator technology (ConocoPhillips) Tubing and casing • Optimised section milling (CNR) One trip section milling (ConocoPhillips) • Abrasive water jetting for well head removal (Total, Marathon) section removal • Downhole pulling technologies (Fairfield) • Hydraulic mast / heavy duty workover for P&A (CNR)

Barrier materials • Anulus perf / wash / cement (ConocoPhillips, Chrysaor, Shell, Endeavour) and placement • Thru-tubing abandonment technologies, including perf, expanding slurries, agitators, pressure testing (Shell)

60 UKCS Technology Insights Exemplars Tubing and casing removal Multi well campaigns • Innovations in existing cutting techniques and technologies have • Multi-operator and multi- reduced cutting times and support well campaigns can help one trip operations de-risk well abandonments, delivering cost and • Shell, CNR, Total and Marathon programme efficiencies have deployed enhanced cutting tools in P&A (e.g. improved section • Enabling technologies (e.g. AI, data mining) can milling, abrasive water jet) assist the abandonment planning process • ConocoPhillips and Spirit Energy realised Barrier deployment significant savings by collaborating on a joint SNS • Perf, wash and cement technology well P&A campaign, sharing knowledge, expertise could potentially reduce the costs and bespoke equipment of plugging across multiple annuli without milling • This technique is used in other basins, but it has not been deployed extensively in the UKCS • It is under assessment by a number of UK operators

7. Well plugging and abandonment 61 7.3 Emerging technologies

Well plugging and abandonment

Technologies Value

Well inspection and • Advanced cement bond logging interpretation (BP) • Advanced bond logging, e.g. pulsed neutron (Premier) cement conditions • Bond logging through multiple casing strings (ConocoPhillips)

• LWIV riserless P&A subsea wells (Ithaca, Spirit Energy) Intervention equipment • Casing punch tool to intervene in HPHT anulus (Shell)

• Next generation tubing casing removal solutions (ConocoPhillips) Tubing and casing • Improved section milling tooling (Fairfield) section removal • Innovative casing removal methods (Fairfield) laser technology (Total, Shell, ConocoPhillips) • Plasma bit (Repsol Sinopec)

• Swelling shale and swelling clay barrier (BP, ConocoPhillips) • Squeezing salt barrier (ConocoPhillips) Barrier materials • Scale formation barrier (Repsol Sinopec, Spirit Energy) and placement • Thermite plug (6+ operators) • Bismuth alloy plug (Repsol Sinopec, Shell, ConocoPhillips, BP • Resin barrier (ConocoPhillips)

62 UKCS Technology Insights Exemplars • Shell and ConocoPhillips have undertaken trails of a conductor Cement and multiple casing logging laser cutting system • Effective cement logging through –– capability to sever multistring multiple casing strings would casings provide cost and time benefits, but remains challenging –– fast and accurate • The OGTC are supporting a tier Barriers (alternatives to cement) one supplier on an early stage • Alternatives to cement, multiple casing logging tool could result in significant • The wider supply chain is working operational and cost benefits​ to develop a range of additional • In 2019 Spirit Energy and the technologies (e.g. enhanced OGTC targeted an offshore test of a ultrasonic, x-ray, advanced thermite based technology​ algorithms) • Resin has been used as a Casing removal temporary barrier. Use as a permanent barrier is under • To improve work flows and reduce costs further, assessment​ alternatives to section milling are being sought • To reduce the need for remedial cementing there are ongoing studies on the functional use of natural barriers (e.g. swelling shales, squeezing salt)​

7. Well plugging and abandonment 63 8. Facilities decommissioning

Technology categories Industry insights Seying lnning • Technology has focused on subsea and surface structure removal (e.g. topside one piece/single lift removal, te lie sset ngeent flotation lift systems, leg cutting). Ongoing developments will provide further efficiencies Tosies cet etion n eol • Ancillary technologies (e.g. modelling, use of alternative/ Sse ecoissioning temporary energy sources and infrastructure) will provide for more effective decommissioning workflows Site onitoing • Utilising existing technologies to their optimum effect is an industry priority, with opportunities to learn from other Technologies eote in technology lns industry sectors (e.g. salvage, nuclear) Technology maturity • The engaged supply chain provides most of the Emerging Existing technology solutions. Operators’ experience has provided some in-house developments • Decommissioning has environmental challenges. Technologies to analysis drill cutting piles, site monitoring and cell isolation have been identified and present

collaboration opportunities Technologies eote in technology lns Scoing eeloent ilot ly otion oen

64 UKCS Technology Insights 8.1 Operators’ technology map

Facilities decommissioning

Operator Surveying and planning Late life asset management and jacket Topside removal preparation Subsea decommissioning Site monitoring Alpha Petroleum Apache North Sea Chevron Corporation Chrysaor CNOOC CNR Endeavour Energy EnQuest Fairfield Energy Ithaca Energy NSMP Perenco Premier Oil Shell UK TAQA Europa Total Upstream UK Tullow Oil

Number of UKCS technology priorities reported by operators in their plans

0 1-3 4-8 9-13 14-17

8. Facilities decommissioning 65 8.2 Existing technologies

Areas Technologies

Surveying and planning • 3D printing – complete scale model of platform for planning of module removal sequence (CNR)

Late life • Low-power lighting for ‘light house mode’ (Perenco) asset management

• Gravity-based structures content sampling (Shell, Apache) • Jacket lifting clamps (CNR) Topsides and jacket • Remotely operated latching pins for jackets (CNR) • Supersizing diamond wire cutting (CNR) preparation and removal • Remotely operated vehicles (ROV) and cutting tooling (Fairfield) • Single lift for topsides and jackets (Shell, Apache, Chrysaor, EnQuest) • Shear keys for gravity based legs (Shell) • Pipeline decommissioning (NSMP) Subsea • Long-term subsea substrate modelling (Perenco) • Tool to cut, seal and lift bundles (CNR) decommissioning • Methods to hot tap, flush and grout subsea pipelines (CNR) • Anchor handling vessel and reverse reel for riser removal (Ithaca)

66 UKCS Technology Insights Exemplars Late life facilities Structure removal • Digital technologies and asset • To maintain efficiency gains management tools utilised on innovative for surface and subsea producing assets will provide structure removal is necessary future CoP efficiency benefits –– enhance current techniques –– detailed asset and material (e.g. hydraulic grapple tools) knowledge –– alternative technologies (e.g. –– support planning/selection of buoyancy barges) decommissioning processes • Shell’s Brent decommissioning • To support decommissioning of the Murchison platform, programme has delivered CNR utilised an interactive 3D topsides model. Premier ongoing technology innovation have built a virtual walk through model of the Balmoral –– attic oil sonar survey floating production vessel (FPV) –– oil recovery from topsides • Like the nuclear industry, operators should consider how –– conductor laser cutting to use additive manufacturing for use in facilities in late life stage –– use of shear keys and single lift interface system

8. Facilities decommissioning 67 8.3 Emerging technologies

Areas Technologies

Surveying and planning • Decommissioning planning (CNOOC, OGTC)

Topsides and jacket • Alternative, more cost-effective cutting and removal techniques for jacket and topsides (Perenco, Apache, TAQA) preparation and removal • External hydraulic lifting tools (CNR)

Subsea decommissioning • Leaving mattresses in place, potential rock dumping for ‘trawlability’ (Alpha) • Drill cutting analysis vacuum tool (Total)

Site monitoring • Ocean power technologies for site monitoring and guard buoys (Premier) • AUV technologies for site monitoring (Shell)

68 UKCS Technology Insights Exemplars Site monitoring technologies Cutting and removal • Technologies to validate and monitor • Cost effective alternatives to the decommissioned sites when required cutting and removal of steel could are under assessment provide economic and operational benefits • Challenged by remote location and lack of supporting infrastructure, • Accelerated corrosion through linking local power generation, electrochemical dissolution is one communication buoy technology or potential technology passive sensors may provide –– OGTC have supported a feasibility study, inclusive a solution of proving the technique on workshop-scale steel • Industry efficiencies could result from components a campaign or joint operator approach –– follow-up preparations are underway for larger- scale trials

8. Facilities decommissioning 69 Conclusions

Findings Expectations • Operators’ technology plans represent a broad • The OGA expects that operators deploy spectrum of UKCS technology priorities over existing technologies where these can the whole asset life cycle add value • Individual operators have technical strengths as • Operators should share lessons learned well as opportunities to learn from their peers to support others successfully deploying • Only a minority of operators invest directly in technologies technology development • Operators need to maintain a close dialogue • The majority of them source technology with the supply chain to consider the latest solutions straight from vendors innovation • Further emerging technologies are critical for MER UK, and the industry is expected to engage with the work by the TLB and OGTC

70 UKCS Technology Insights Conclusions

Image courtesy of Tenzor Geo

Conclusions 71 Appendix - Technology spend

UKCS operators’ technology spend (actuals and forecast, £m) Total technology spend by operator (anonymised)

ctls oecst 14% 11% 90% Seismic and exploration Well P&A

Well drilling -35% and completions Facilities +30% management Subsea 34% systems Technology Sen illion Technology Sen in illion Technology Installations Reservoir and and topsides well management Sen o Totl Cltie ecentge 41%

eto nonyise Technology transfer spend (£ million) R&D spend (£ million)

Following a 35% decline from peak (2014) to 2016, the Ten operators, of 74 in total, account for 90% of the operators’ technology spend has started to grow again technology spend. This includes companies that have (+30% from 2016 to 2018). located international research programmes in the UK.

72 UKCS Technology Insights Seisic n lotion

ell illing n Coletions

Technology spend by category (£) eseoiNumber n ell of ngeent technologies in the plans

Sse Systes

Instlltions n Tosies

Seisic n lotion cilities ngeent 4% 4% 12% 4% ell illingSeisic n n Coletions lotion 19% ell lg n nonent 10% ell illing n Coletions Seisic lotion Sen 35% 5% eseoi n ell ngeent cility ecoissioning ell illing Coletion Sen eseoi n ell ngeent 5% Sse Systes itionl Sse Systes 15% eseoi ngeent Sen Instlltions n Tosies Instlltions n Tosies Sse Systes Sen 9% cilities ngeent 23% Instlltions Tosies Sen 12% cilities ngeent 45% 34% ell lg n nonent ell lg n nonent cilities ngeent Sen cility ecoissioning ell lg nonent Sen cility ecoissioning 5% itionl 55% itionl 18% cility ecoissioning Sen 8% 37% 65% 10%

Direct operators’ spend is only part of overall industry R&D In contrast, technologies to deliver and manage investment. It is supplemented by supply chain investment. facilities and infrastructure have a strong demand. The survey data shows that operators’ spend has a strong These are in areas where operators source developed focus on subsurface, wells and reservoir technology where solutions from the supply chain. operators can achieve a strategic advantage.

Appendix - Technology spend 73 Photo credits:

3M RepsolSinopec 3-Sci Sentinel Subsea Airborne Oil & Gas Shell UK Amplus Energy Sky Futures Apache UK TAAP BP Tenzor Geo Chevron Total UK Claxton Tracerco Darkvision Technologies Well Sense DownUnder Geosolutions Whalsay Energy EC-OG Ecosse IP Enhanced Drilling Equinor ASA EverSea NV Exnics Fishbones Flexlife Foro Energy Hydrawell Interwell Ocean Power Technologies OGTC Magma Global Magseis Fairfield Organic Oil Recovery Precision Impluse

74 UKCS Technology Insights

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