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Centrica Energy Upstream asset book centrica energy upstream
Contents
Introduction 1 Our story so far 3 Our business outlook 5 Regional overview 9 Northern and Central North Sea 11 Southern North Sea 17 East Irish Sea 23 Netherlands 27 Norway 33 Trinidad and Tobago 39 Glossary 42 centrica energy upstream
a real sense of momentum
The Centrica Energy Upstream story is a compelling one. Through the acquisition of Venture Production in 2009 we have forged a company with exceptional strength and resilience. Our teams across six regions draw on their unique blend of expertise and experience to bring fresh thinking to the challenges of exploration and production. This enables us to succeed where others have been unable.
It is this pioneering spirit and dedication to high performance which has seen us mark more than 25 years of gas production in the East Irish Sea, increase our profits in 2010 by over 30% to £566 million, achieve an enviable drilling record in the North Sea, enter the natural gas sector in Trinidad and Tobago, deliver groundbreaking projects such as the self-installing F3-FA platform and be the first to undertake horizontal hydraulic fracturing in North Sea gas wells. We have also significantly “We have great teams in place enhanced our position in Norway through the recent acquisition from Statoil of interests in Kvitebjørn, Heimdal and Valemon. who have a proven track record In 2010 Centrica Energy Upstream was one of the top three producers of gas on the UK Continental Shelf, pumping 650 million cubic feet every day. We contribute a significant proportion of Centrica’s profits and, if we were a stand alone of delivering outstanding results company, would be in the FTSE 100 in our own right.
time and again.” Our commitment to finding and producing gas and oil safely, efficiently and effectively has brought significant achievements and we plan to build on that success. We expect to drill more than 20 exploration wells in the next three years alone and, with ambitious production targets and a strategy to expand our international reach, Centrica Energy Upstream is focused on growth.
As we look to the future, we do so with a sense of purpose and adventure. Our path to long-term success is clear, and we have great teams in place who have a proven track record of delivering outstanding results time and again.
There is a real sense of momentum in Centrica Energy Upstream and with high performance, pioneering spirit and safety at the heart of our business, we will write a new and exciting chapter in our story.
Jonathan Roger Managing Director, Centrica Energy Upstream
1 centrica energy upstream
our story so far
Centrica Energy Upstream has enjoyed another strong year. New wells have performed better than anticipated, helping us achieve a strong production performance. Elsewhere, we have delivered an impressive exploration rate and have become one of the fastest growing new entrants in Norway in the last decade. Since acquiring assets in Trinidad and Tobago last year, we have already expanded our interests with the award of the NCMA-4 block.
Centrica Energy Performance 2010/11
Upstream overview
l 8 developments brought on-stream l 7 out of 14 exploration wells successful Our F3-FA platform, l Resource additions replace production the largest self-installing platform in the North Sea, UK and Netherlands l One of the top three largest gas producers in the UK is on-stream. l Most active E&A drilling programme a real sense of scale l Largest net acreage in 2010 l Awarded 7 blocks in UKCS 26th licensing round l F3-FA came on-stream
Norway
l One of the fastest growing new entrants in Norway in the last ten years l Drilled three operated exploration wells l Licence round application success l Acquired equity from Statoil in Kvitebjørn, Heimdal and Valemon and further equity in Statfjord from Shell
Trinidad and Tobago
l Successfully entered a new region; acquisition completed in 2010 l Progressing Block 22 development options l Success in 2010 licensing round with award of the NCMA-4 block
2 3 centrica energy upstream
our business outlook
Our current portfolio will deliver a sustainable flow of gas and oil from an increasingly international mix. We are achieving this both by maximising value from our existing assets while delivering technically challenging projects, and by focusing exploration activity in known gas and oil basins using our specialist subsurface expertise.
We have investment plans that will deliver over 1.3 billion boe of production over the life of our portfolio of assets. By 2020 we aim to have produced more than 600 mmboe and invested over £7 billion.
Production in the short-term is largely provided by our 2P reserves and is supported by 2C resources and yet to find prospective resources from exploration and business development in the longer-term.
Base
2011-20 Post 2020
Production (mmboe) 345 66 411 mmboe 141 mmboe Investment (£bn) 0.7 0
Current Projects Anticipated total 2011-20 Post 2020 recoverable resources 354 Production (mmboe) 117 24 mmboe
Investment (£bn) 1.5 0
Development Options 450 mmboe 2011-20 Post 2020
Production (mmboe) 137 217 We are continually investing Investment (£bn) 3.6 0.5
in world-class projects Exploration Development Portfolio Unit Costs to build on our successes. 2011-20 Post 2020 2011 Unit Lifting Cost (£/BOE) 10.0 a real sense of direction Production (mmboe) 35 415 2011 DDA rate (£/BOE) 10.0 Investment (£bn) 2.0 4.5
Total CEU 2P Reserves
2011-20 Post 2020 2P reserves (end 2010) 403*
Production (mmboe) 634 722 2P reserves from 2011 acquisitions 117
Investment (£bn) 7.8 5
*Excludes Centrica Storage Limited cushion gas (Rough field = 30.5 mmboe) and North America reserves. Also excludes 2011 production and non-acquisition- related reserves additions.
4 5 centrica energy upstream
Upstream oil and gas production profile
80
70 Exploration
60
50 Development options Current projects 40
30 Volume, mmboe p.a. mmboe Volume,
20 Base 10
0 2012 2013 2014 2015 2016 2017 2018 2019 2020
Current Project 2P Reserves
80
Valemon
60
40 Atla Rhyl Kew Cygnus Seven Seas Reserves, mmboe Reserves, Annabel 20 East
Ensign York
0 2012 2013 2014+ Planned year of first production
6 7 centrica energy upstream
regional overview
Centrica Energy is active across six regions. Each one has a portfolio of producing assets, developments (including current project activity) and exploration potential.
8 9 centrica energy upstream
Northern and Central North Sea
Centrica Energy is the operator of three production hubs in the Northern and Central North Sea area of the United Kingdom Continental Shelf (UKCS): Greater Kittiwake, Trees and Chestnut. It also has non-operated interests in the Armada and Brae complexes and in the Skene and Buckland fields. Overall there are more than 20 producing fields in the region, mainly delivering oil and contributing about 15% of Centrica Energy’s daily production.
Centrica Energy’s focus in the area has been on improving operational performance on these maturing assets, enhancing production efficiency and reservoir performance, and subsequently extending the economic life of the fields. In addition, Centrica Energy has continued to execute an active exploration and appraisal programme, aimed at building on existing production hubs and on developing potential opportunities.
Map of Northern and Central North Sea area
North & Central North Sea key metrics
2012-20 production (mmboe)* 46 Gas % 27 2011 unit lifting cost (£/boe) 13.9 2011 DD&A rate (£/boe) 10.5 *Excludes exploration
Production from Northern and Central North Sea 10 High performance, 9 pioneering spirit and 8 7 safety are at the heart 6 of the way we work. 5 4 a real sense of energy 3 Volume, mmboe p.a. mmboe Volume, 2 1 0 2012 2013 2014 2015 2016 2017 2018 2019 2020
Base Development options
10 11 Northern and Central North Sea Northern and Central North Sea
Producing assets Greater Kittiwake Area Trees
Centrica Energy acquired its interests in the Greater The Trees Area comprises the currently producing Asset CEU % Operator Status Production Reserves Kittiwake Area (GKA) from TotalFinaElf in 2001 and Birch, Larch, Sycamore Central and Sycamore South (Anticipated FY 2011, (End 2010 net mboe) net mboe) Shell in 2003. Centrica Energy now has a 50% fields in which Centrica Energy has a 100% operated operated interest in the five fields which make up interest. Birch, Larch and Sycamore Central are Greater Kittiwake area 2,742 10,300 2P the GKA: Kittiwake, Mallard, Gadwall, Goosander subsea developments tied-back to the Marathon- Kittiwake 50.00 CEU Producing 74 and Grouse. operated Brae platform. Sycamore South has been developed using an extended reach well from the Goosander 50.00 CEU Producing 1,553 When the Kittiwake platform was purchased from Marathon operated Tiffany platform. Grouse 50.00 CEU Producing 833 Shell it was producing less than 5,000 barrels a day and was due to be abandoned in 2005. Since then a Status: Producing oil. Mallard 50.00 CEU Producing 232 concerted campaign of developing satellite fields and Location: 200km north east of Aberdeen. Gadwell 50.00 CEU End of life 0 investing in modernised equipment has increased Production: Currently produces around production and extended field life beyond 2020. 2.7 mboe/d gross. Trees area 956 4,300 2P Status: Producing oil. Future plans: Further development of South Sycamore Birch 100.00 CEU Producing 525 Location: 160km north east of Aberdeen. and potential prospects in the Trees area, including the Cedar prospect which underlies the Birch field. Larch 100.00 CEU Producing 277 Production: Current daily production from the field is 23 mboe/d gross. Production has recently been Sycamore Central 100.00 CEU Producing 135 boosted by the Goosander Crestal well which came Sycamore South 100.00 CEU Producing 19 on-stream in July 2011. Armada
The area has been developed using a fixed steel The Armada area comprises three producing Chestnut area 1,077 4,000 2P platform on the Kittiwake field with the other fields gas/condensate fields: Drake, Fleming and Hawkins. being developed as subsea satellite tie-backs to the Centrica Energy has an 11% non-operated interest. Chestnut 69.88 CEU Producing 1,077 Kittiwake platform. Oil used to be exported using The Armada platform also acts as a hub for a number tanker loading, but since 2007 has been exported of satellite fields, including the Seymour and Maria Armada area 942 8,400 2P via the Forties pipelines system. Any gas not used fields in which Centrica Energy has non-operated for production purposes is exported to St Fergus equity interests ranging between 18 and 35%. Armada 11.05 BG Producing 545 through the Fulmar gas line. Status: Producing gas/condensate. Maria 35.04 BG Producing 170 Future plans: Further satellite prospects continue to be Location: UK Central North Sea. Seymour 18.00 BG Producing 227 pursued, with plans to evaluate and drill prospects such Production: Currently produces around as Mallard South, Gadwall South and Jaeger. In addition, 29.8 mboe/d. Gas is exported through CATS while Skene/Buckland area 1,797 4,400 2P Centrica Energy’s prospective Bligh development could heavier oil and condensates are exported through potentially utilise the GKA facilities as an export route. Skene 33.33 ExxonMobil Producing 624 the Forties pipeline system. Future plans: Further development of the South Buckland 33.33 ExxonMobil Producing 1,173 Seymour field and Seymour Horst is being evaluated Chestnut and further third party business will be secured from Brae area 1,197 2,600 2P Chestnut was discovered in 1986 by Premier Oil but the Gaupe field in Norway. not developed due to its size and the fact that it did Brae West 8.00 Marathon Producing 330 not have access to nearby infrastructure. In 2003 Brae NSC 8.00 Marathon Producing 214 Centrica Energy acquired 70% equity in the field and Brae Brae East 7.32 Marathon Producing 543 became the operator. It was brought on-stream in The Brae complex comprises a number of fields 2008 using the innovative Sevan Marine 300 floating Brae Beinn 8.00 Marathon Producing 29 developed using a combination of fixed platform and production system. A further production well was subsea tie-backs. Gas is exported through the SAGE Braemar 5.00 Marathon Producing 79 drilled in 2009, increasing production and reserves system and back to the SAGE gas plant at St Fergus. SAGE 4.00 Mobil Pipeline & terminal N/A for the field. A sidetrack of the existing water injection Centrica Energy has non-operated interests of 5% to well to increase injectivity and reservoir pressure is 8% in the fields in the area and 4% in the SAGE currently being drilled. Other areas 96 300 2P pipeline. Status: Producing oil. Halley 40.00 Talisman Producing 96 Status: Producing oil and gas. Location: 200km north east of Aberdeen, Goldeneye 3.47 Shell End of life 0 Location: 200km north east of Aberdeen. 10km south of the Britannia field. Production: Currently produces around Acorn 100.00 CEU End of life 0 Production: Currently produces around 5 mboe/d 36.7 mboe/d gross. Acorn 29/8b 77.62 CEU End of life 0 gross. The field was developed using the Sevan Marine 300 floating production vessel, with integrated Future plans: Further development of the Brae fields storage and offloading capability. continues and further third party business continues to be attracted to the SAGE system. Future plans: Evaluate options for a potential 12 third producing well. 13 Northern and Central North Sea Northern and Central North Sea
Development opportunities
Asset CEU % Operator Status Key Milestones P50 Potential (Anticipated year) Resources (Net mboe)
Greater Kittiwake area 6,400 Gadwall South 50.00 CEU Development option Appraisal well 2013 Mallard infill 50.00 CEU Development option Appraisal well 2013 Mallard South 50.00 CEU Development option Appraisal well 2015
Trees area 11,600 Sycamore SP5 100.00 CEU Development option
Chestnut area 2,500 Chestnut infill 69.88 CEU Development option
Brae area TBD Skene and Buckland Brae NSC infill 8.00 Marathon Development option
The Skene and Buckland fields are subsea Armada area TBD developments, tied-back to the ExxonMobil-operated Seymour Horst infill 18.00 BG Development option Beryl complex and on through the SAGE system. Skene is a gas condensate field, while Buckland is an oil producing field. Centrica Energy has a 33.33% Other areas 35,400 non-operated share in both fields and the Bligh 100.00 CEU Development option Appraisal well 2012 surrounding acreage. Christian 100.00 CEU Development option Selkirk 31.50 CEU Development option Status: Producing oil and gas. Location: 230km north east of Aberdeen. Production: Currently produces around 8 mboe/d gross. Future plans: Further development of both fields is Exploration being evaluated, as is the potential of other prospects Centrica Energy continues to look for exploration and appraisal opportunities in acreage close to its operated production hubs in in the surrounding acreage. the North and Central North Sea. Additional acreage was acquired in the 25th and 26th licensing round and opportunities are being matured for potential drilling in the next 1 to 3 years. The table below provides an indicative programme of drilling activity.
Bligh, Selkirk and Christian Asset CEU % Operator Status Location P50 Potential Resources The Bligh field was discovered in 1995 and is a High (Net mboe) Pressure/High Temperature (HP/HT) gas condensate Jaeger 50.00 Dana Exploration prospect Greater Kittiwake area field. Christian was discovered in 1991 and like Bligh 15,000 - 50,000 Cedar 100.00 CEU Exploration prospect Trees area is an HP/HT gas condensate field. Joint production of prospective Marconi 20.00 GdF Exploration prospect Central North Sea both fields via a subsea tie-back to Kittiwake is being evaluated. This would result in the creation of a new HP/HT operated production hub. Selkirk is a potential single well subsea development to be tied-back to the future Bligh and Christian infrastructure.
Status: Bligh and Christian are gas condensate discoveries. Location: 200km north east of Aberdeen, close to the Greater Kittiwake Area fields.
Future plans: A Bligh appraisal well is planned for 2012 to further evaluate the field and determine potential development scenarios.
14 15 centrica energy upstream
Southern North Sea
In 2010 we were the most active The Southern North Sea represents a growing business for Centrica Energy. Three new fields came on-stream in 2010 and significant developments are underway or planned at Seven Seas, Ensign, York and Cygnus. Centrica Energy exploration & appraisal driller in has also made a number of exploration discoveries over the last few years and has been awarded further acreage in recent the North Sea licensing rounds. These will in turn be matured into further development opportunities. Centrica Energy has a broad portfolio of assets in the Southern North Sea, including 15 major producing fields, 50% of a real sense of energy which are operated. The fields have been developed using a combination of normally unattended installations and subsea tie-backs. Centrica Energy’s strategy in the Southern North Sea is to maximise the value of its hubs by developing near-field discoveries and exploring near-field prospectivity.
Map of Southern North Sea area
Southern North Sea key metrics
2012-20 production (mmboe)* 123 Gas % 98 2011 unit lifting cost (£/boe) 12.4 2011 DD&A rate (£/boe) 13.2 *excludes exploration
Production from Southern North Sea
20 18 16 14 12 10 8
Volume, mmboe p.a. mmboe Volume, 6 4 0 2012 2013 2014 2015 2016 2017 2018 2019 2020
Base Current projects Development options
16 17 Southern North Sea Southern North Sea
Producing assets Main production hubs
Asset CEU % Operator Status Production Reserves A Fields Area Cygnus (Anticipated FY 2011, (End 2010, mboe net) net mboe) The area comprises eight fields, four of which are The field was originally discovered in 1988. Centrica operated by Centrica Energy (Ann, Audrey, Alison and Energy has a 48.75% interest. Two successful A Fields area 3,008 9,100 2P Annabel) and four of which are operated by other appraisal wells were drilled in 2009, confirming the Annabel 100.00 CEU Producing 636 parties (Victor, Saturn, Galleon and Mimas). Audrey potential of the eastern field with further appraisal of Audrey 100.00 CEU Producing 367 acts as the main gas processing and export hub for the Western fault blocks undertaken in 2010. These our operated fields, with gas exported via the drilling programmes both increased the recoverable Ann 100.00 CEU Producing 124 LOGGS pipeline. reserves for the field and confirmed Cygnus as one Alison 100.00 CEU Currently shut-in 0 of the largest undeveloped gas discoveries remaining Status: Producing gas fields. Saturn 22.00 ConocoPhillips Producing 864 in the Southern North Sea. Location: 100km north east of the Norfolk coast. Victor 30.00 ConocoPhillips Producing 671 Status: Undergoing appraisal and evaluating Production: Current daily production from the area development options. Galleon 8.40 Shell Producing 262 is 30 mboe/d gross (8 mboe/d net to CEU). Location: 159km north east of the North Norfolk Mimas 15.00 ConocoPhillips Producing 84 Future plans: An infill well at Annabel is planned for coast. 2012. In addition, the Ensign field will be developed through the Audrey facilities. We are also evaluating the Future plans: Centrica Energy is working closely Western area 1,038 13,900 2P potential for further infill drilling at Audrey and Annabel with the development operator GdF on determining Eris 54.00 CEU Producing 91 and potential reinstatement of the Alison well. the optimum development plan for the field. This is
Ceres 90.00 CEU Producing 95 likely to involve a manned platform as a hub, with tie-backs from normally unattended installations. Ravenspurn North 17.75 BP Producing 301 Western Area Once established, Cygnus can act as the export Babbage 13.00 E.ON Ruhrgas Producing 384 and processing hub for the greater Cygnus area. The area comprises six producing fields, two operated There is significant potential upside in Cygnus itself Amethyst 8.95 BP Producing 167 by Centrica Energy (Eris, Ceres) and four operated and the surrounding exploration acreage in which Rose 100.00 CEU End of life 0 by others (Amethyst East and West, Babbage and Centrica Energy has a significant interest. Ravenspurn North). It will also include the Seven Seas project currently under development. Southern area 72 300 2P Status: Mature producing gas fields, with significant Current projects Horne & Wren 50.00 Shell Producing 20 development potential. Davy East 40.00 Perenco Producing 40 Location: 50km off the east coast of England. Thames 10.00 Perenco Producing 12 Production: Current daily production from the area is Thurne 13.04 Tullow End of life 0 20 mboe/d gross (2.8 mboe/d net to CEU). Babbage and Eris/Ceres came on-stream in 2010.
Future plans: Seven Seas is due to come on-stream in 2012 and the York development has now been sanctioned. Both assets are operated by Centrica Energy. York has additional upside potential that will be assessed once the field has come in to production. In addition, the Olympus field was discovered from an exploration well and there is further prospectivity in the area.
Southern Area
The Southern Area comprises five non-operated fields nearing the end of their field life. It is not considered to be a core area.
Status: Mature producing gas fields. Location: 100km east of Great Yarmouth off the Norfolk coast in the UK Continental Shelf. Production: Current daily production from the area is 1 mboe/d gross (0.2 mboe/d net to CEU). Future plans: Extract remaining production and 18 perform field abandonment. 19 Southern North Sea Southern North Sea
North West Core Area Seven Seas Development opportunities
Centrica Energy has built up a significant exploration First discovered in 1991 by Enterprise Oil. Currently Asset CEU % Operator Status Key Milestones P50 Potential portfolio of carboniferous gas opportunities. being developed via a subsea tie-back to the BP (Anticipated year) Resources operated Newsham and West Sole fields, with gas (Net mboe) Status: Exploration acreage surrounding the export to BP Dimlington. Drilling and subsea Pegasus prospect. A Fields area 35,600 (inc 18,200 2P) infrastructure installation has been completed. It is Location: 60km off the coast of Scarborough, now waiting on the completion of BP’s work on Ensign 100.00 CEU Current project First production 2012 Yorkshire. commissioning at West Sole for first production. Annabel East 100.00 CEU Current project First production 2013 Audrey infill 100.00 CEU Development option Future plans: Centrica Energy is currently evaluating Production anticipated in early 2012. Galleon infill 8.40 Shell Development option the area in detail and expects to drill several Status: Gas development underway. exploration wells in the next couple of years. Saturn infill 22.00 Conoco Phillips Development option Location: Block 48/7c, east of Dimlington.
Future plans: Further potential may exist in the field, Western area 40,000 (inc 24,100 2P) Ensign which will be evaluated once the field is in production. Seven Seas 90.00 CEU Current project First production 2012 York 100.00 CEU Current project First production 2013 The opportunity is operated and fully owned by Olympus 100.00 CEU Development option Centrica Energy. Development will be by an unmanned Olympus platform and up to 4 wells that will need to be fractured Eris infill 54.00 CEU Development option to improve flow rates. The platform has already been Olympus was first discovered in 2010 by Centrica Babbage infill 13.00 E.ON Ruhrgas Development option installed and drilling of the production wells is currently Energy which has 100% equity. Development options underway. First production is anticipated in early 2012. are currently being evaluated. Cygnus area 51,900 2P Cygnus 48.75 GdF Current project FID 2012 Status: Tight gas field discovered in 1986 by Shell, Status: Gas discovery. but undeveloped due to the complex nature of the Location: Block 48/12e east of Dimlington, south of reservoir, now under development. Seven Seas. North West Core area 10,000 Pegasus 90.00 CEU Discovery Location: North east of the Centrica Energy-operated Future plans: Further potential may exist in Audrey field. surrounding exploration acreage.
Future plans: Full field evaluation to determine potential upside once first production has commenced. Pegasus Exploration Pegasus was discovered in January 2011 by Centrica York Energy. Discovery currently under evaluation, with Centrica Energy has an active exploration programme in the Southern North Sea, aimed at building on existing production hubs and adding value to recent discoveries. Centrica Energy was successful in the 25th and 26th licensing rounds and anticipates executing further appraisal drilling required. The opportunity is operated and fully owned by a number of exploration wells over the next 3 years. Centrica Energy. Development will be by a normally Status: Gas discovery. unattended installation, with five wells and gas export Location: Block 48/13. via a pipeline directly to the Centrica Storage Limited Asset CEU % Operator Status Location P50 Potential Future plans: Further appraisal drilling is required Resources Easington terminal. Fabrication of the platform is to complete evaluation of the full potential of the (Net mboe) currently underway in Hereema’s construction yard in discovery. Endymion 90.00 CEU Exploration prospect Western area Hartlepool and a rig has been secured for drilling the York area exploration 100/55 CEU Exploration prospect Western area production wells in 2012. First gas is anticipated for 25,500 - 75,000 Cygnus area exploration 48.28 GdF Exploration prospect Cygnus area prospective Q4 2012/Q1 2013. York exploration 90.00 CEU Exploration prospect North West Core area Status: Gas field discovered by Hess in 1993, now under development. Location: Block 47/3, north of the Rough storage facility. Future plans: Further subsurface appraisal and evaluation of the York field is likely to result in incremental drilling opportunities in the licence block. In addition, further potential exists in surround exploration acreage that was applied for in the 26th licence round.
Current projects
20 21 centrica energy upstream
East Irish Sea
The combined fields of the East Irish Sea have been a cornerstone asset for Centrica Energy since the company was formed. The region continues to provide a significant portion of the UK’s gas supply and Centrica Energy’s assets have become a key hub for processing third party volumes. The fields in the region are among the largest in the UK Continental Shelf in terms of remaining reserves and Centrica Energy believes there is still significant upside potential. Morecambe will continue to be a core asset for the company for many years to come.
Map of East Irish Sea area
East Irish Sea key metrics
2012-20 production (mmboe)* 78 Gas % 98 2011 unit lifting cost (£/boe) 6.6 2011 DD&A rate (£/boe) 4.0 *excludes exploration
The pioneering spirit that runs through our business is really paying off a real sense of adventure
Production from East Irish Sea
18
16
14
12
10
8
6 Volume, mmboe p.a. mmboe Volume, 4
2
0 2012 2013 2014 2015 2016 2017 2018 2019 2020
Base Current projects Development options 22 23 East Irish Sea East Irish Sea
Producing assets
Asset CEU % Operator Status Production Reserves (Anticipated (End 2010, FY 2011 mboe net) net mboe)
South Morecambe area 85,300 2P
South Morecambe 100.00 CEU Producing 12,000
Bains 86.80 CEU Producing 0
North Morecambe area 8,200 2P
North Morecambe 100.00 CEU Producing 1,900
Development opportunities
Asset CEU % Operator Status Key Milestones P50 Potential (Anticipated year) Resources (Net mboe)
South Morecambe area 43,000 South Morecambe North Morecambe North West Attic 100.00 CEU Development option Appraisal well 2013 The field was originally discovered in 1974 with first North Morecambe was discovered in 1976, with first gas Illite 100.00 CEU Development option Appraisal well 2014 production in 1985. It is entirely owned and operated in 1994. It is entirely owned and operated by Centrica by Centrica Energy. The field is subject to Petroleum Energy. It also acts as the main producing hub for the North Morecambe area 16,800 (inc. 6,800 2P) Revenue Tax (PRT). area. The ConocoPhilips-operated Millom and Dalton fields are tied-back to the North Morecambe platform Rhyl 100.00 CEU Current project First production 2012 Status: Producing gas. North Rhyl 100.00 CEU Development option Appraisal well 2012 and their Rivers field uses the North Morecambe Location: Situated in Irish Sea, 39km west of Barrow. Whitbeck 70.00 CEU Development option facilities at the Barrow terminal. The Centrica Energy- Production: Current daily production from the field is owned and operated Rhyl field will also be developed Marram 70.00 CEU Development option ~38 mboe/d. The field has been developed using via the platform and there is further potential from other seven fixed jacket platforms. Over 35 development satellite fields. wells have been drilled on the field. Gas is exported Status: Producing gas field and processing hub. via a 39km, 36” dedicated pipeline to the terminal at Westfield Point near Barrow. The Barrow terminal is Location: Situated in Irish Sea 39km west of Barrow, Exploration also operated by Centrica Energy. just north of the main Morecambe South field. Centrica Energy has an inventory of exploration prospects in the acreage around the Morecambe fields which, if successful, will add Future plans: A full subsurface study is being Production: Current daily production from the field incremental field life for the whole region. A rig has been secured for drilling a number of high value exploration and appraisal prospects in undertaken to evaluate the future potential of the field. is ~7 mboe/d. The field has been developed using a 2012 and 2013. The table below provides an indicative programme of exploration drilling activity in the next two to three years. The main focus is on improving recovery from the normally unmanned platform with gas export via illite zone and potential well intervention programmes pipeline to the North Morecambe terminal at Barrow.
Asset CEU % Operator Status Location P50 Potential to improve current production rates. The study will Future plans: The Rhyl field has been approved Resources determine if there are further infill drilling opportunities for development and will be tied-back into the North (Net mboe) in the field. In addition there are a number of near-field Morecambe platform. Further potential satellite Ventnor 100.00 CEU Exploration prospect South Morecambe area exploration opportunities that are being progressed, opportunities will be pursued. 5,000 - 10,000 North West Terrace 100.00 CEU Exploration prospect South Morecambe area prospective including the Ventnor prospect. Whitehaven 100.00 CEU Exploration prospect North Morecambe area Rhyl
Status: Discovered in 2009 by Centrica Energy.
Location: Situated in Irish Sea 39km west of Barrow, north of the North Morecambe field.
Background: Rhyl will be drilled and completed in 2012 and tied-back to North Morecambe.
Future plans: Investigate additional opportunities at North Rhyl and Whitehaven.
24 Current projects 25 centrica energy upstream
The Netherlands
Centrica Energy operates the Greater Markham Area (GMA) and the Northern Fields from its Netherlands office in Hoofddorp. We continue to attract, The GMA straddles the UK and Netherlands continental shelves with the bulk of production coming from the UK side. select and develop It includes the Markham, Chiswick, Grove, Windermere and Stamford fields. The Northern Fields comprise the recently developed F3-FA field and the A15-A and B17-A discoveries. the very best people Centrica Energy’s aim is to continue to sustain its production from the Netherlands region, while executing a number of a real sense of pride development options which will increase the value and extend the field life of the operating hubs. The key to our success has been leveraging maximum value from our regional expertise in carboniferous reservoirs and in project execution.
Map of Netherlands area
Netherlands key metrics
2012-20 production (mmboe)* 60 Gas % 90 2011 unit lifting cost (£/boe) 9.1 2011 DD&A rate (£/boe) 13.0 *excludes exploration
Production from Netherlands
12
10
8
6
4 Volume, mmboe p.a. mmboe Volume, 2
0 2012 2013 2014 2015 2016 2017 2018 2019 2020
26 Base Current projects Development options 27 The Netherlands The Netherlands
Producing assets
Markham Grove Asset CEU % Operator Status Production Reserves (Anticipated FY 2011, (End 2010, mboe net) net mboe) The field was initially discovered in 1987 by Ultramar The field was discovered in 1971 by Shell, but and first production began in 1992. Centrica Energy remained undeveloped as it was considered to be Greater Markham area 8,496 47,200 2P acquired 37.5% equity in the unitised field in 2006 uncommercial. Centrica Energy became the operator Markham UK 27.20 CEU Producing 198 through the Venture transaction. Centrica Energy is when it acquired an 85% stake as part of the the operator of the field and infrastructure. acquisition of Newfield Petroleum in 2007 and then Markham NL 10.33 CEU Producing 75 a further 7.5% from Sjoitz in 2008. The field was Status: Producing gas field and processing hub Chiswick 100.00 CEU Producing 5,362 brought on-stream in 2007. for third party volumes. Grove 92.50 CEU Producing 2,791 Location: 144km east of Cromer off the Norfolk coast, Status: Producing gas field, developed via Markham. Stamford 100.00 CEU Producing 18 the field straddles the UK and Netherlands median line. Location: 133km north east of Great Yarmouth off Windermere 20.00 RWE Dea Producing 21 Production: Current daily production from the field the Norfolk coast on the UK Continental Shelf. J3aC 4.03 Total Producing 31 is 2 mboe/d gross (0.75 mboe/d net). The field has Production: Current daily production from the field been developed using one manned and one is around 8 mboe/d gross (7.5 mboe/d net). The field unmanned platform with 4 current production wells. has been developed using a normally unmanned Northern fields 10,000 2P Gas is exported via the West Gas Transport system installation, with five production wells. The platform is F3-FA 58.00 CEU Producing 1,716 to the NAM-operated Den Helder plant. tied-back to the Markham installation, from where gas Future plans: Markham field life will continue to is exported via the West Gas Transport pipeline to the be extended through exploiting its position as a NAM-operated Den Helder plant. processing and pipeline export route for the area. Future plans: A field study has been undertaken to Development opportunities Future GMA development opportunities include Kew, assess further in-field potential and an infill well is a Fulham, Arrol, and additional developments at Grove, development option for 2013. There is also additional Asset CEU % Operator Status Key Milestones P50 Potential while GMA continues to process volumes from prospectivity in the surrounding area. (Anticipated year) Resources (Net mboe) Chiswick, Grove and Stamford.
Greater Markham area 17,800 (inc. 7,300 2P) Kew 99.00* CEU Current project First production 2013 Chiswick Fulham 90.00 CEU Development option Grove infill 92.50 CEU Development option The field was initially discovered by a BP consortium Arrol infill 90.00 CEU Development option in 1984, but not developed due to the complex nature of the subsurface structure. Centrica Energy acquired 100% equity in the field in 2006 and proceeded to Northern fields 2,500 engineer a technical solution for developing the field, A15-A 27.00 CEU Development option based on the multiple fraccing of long horizontal wells. B17-A 23.53 CEU Development option This process is based on creating fractures in the *Awaiting unitisation - to be confirmed rock using proppants to increase the exposure of the well to the surrounding formation and to make the Exploration gas flow more easily. The field came on-stream in Centrica Energy will continue to build on its existing portfolio by undertaking targeted exploration in acreage around the existing producing 2007 and there are now four wells operational. hubs in the Netherlands region. Exploration activity will follow from the successful award of licences in the 25th and 26th UKCS licensing rounds. Centrica Energy has also been succesful in licensing applications in the Dutch continental shelf and will become operator of Status: Producing gas field with further Blocks E1, 2, 4 & 5. development potential. Location: 144km east of Cromer, off the Norfolk coast on the UK Continental Shelf. Production: Current daily production from the field is 14 mboe/d gross. The field has been developed using a normally unmanned installation, with four horizontal fracced production wells. The platform is tied-back 19km southeast to the Markham installation, from where gas is exported via the West Gas Transport pipeline to the NAM-operated Den Helder plant. Future plans: Further infill drilling opportunities in the northern part of the field continue to be evaluated. The new Kew field development scheduled for 2012 will be tied-back to the Chiswick platform.
28 29 The Netherlands The Netherlands
F3-FA Fulham
The F3-FA field was originally discovered in 1971 The opportunity is operated by Centrica Energy, which by NAM, but not developed due to geological has a 90% interest (subject to unitisation). The likely complexity and challenging economics. Centrica development scenario is a normally unmanned Energy acquired operatorship through Venture’s installation with export to Markham. This would allow acquisition of EDP’s equity in 2007 and now holds a for the possibility to tie-in subsequent developments 58% working interest in the field. such as Arrol.
Status: In production. Status: Discovered by Centrica Energy in 2010. Location: 230km north of Den Helder in the Location: Block 44/28b north west of the Centrica Netherlands Continental Shelf. Energy-operated Chiswick field. Production: The F3-FA field started production in Future plans: Further subsurface appraisal and January 2011 and current production from the field is further evaluation of the Arrol discovery. 9 mboe/d (5 mboe/d net). The field has been developed through a single high angle well via a self-installing movable platform with full separation, Arrol gas drying, processing and compression facilities. The opportunity is operated by Centrica Energy, Gas export is via the NOGAT pipeline system back which has a 90% interest. The likely development to the NAM-operated Den Helder plant. scenario is a combined development with Fulham Future plans: There are potential upside reserves via a normally unmanned installation with export to below the current reservoir. There is also additional Markham. prospectivity in the area. Status: Discovered by Shell in 1987. Location: Block 44/28a 16km North West of the Kew Centrica Energy-operated Chiswick field.
The opportunity is operated by and 99% owned by Future plans: Further subsurface evaluation in Centrica Energy. Development will be via a single well conjunction with the Fulham discovery. subsea tie-back to Chiswick, utilising the original appraisal well for the development.
Status: Discovered by Ultramar in 1998 and appraised by Centrica Energy in May 2009 with the 49/c-7 well. Location: North east of the Centrica Energy- operated Chiswick field. Future plans: Development drilling is planned for 2012, with first production in 2013.
Current projects
30 31 centrica energy upstream
Norway
Centrica Energy sees Norway as one of the key areas for growth and as a source of long-term gas for the UK. The Norwegian business was established in 2006 in Stavanger and since then Centrica Energy has become one of the fastest growing new entrants into the Norwegian Continental Shelf. The business comprises producing assets, development opportunities and exploration potential.
The Centrica Energy business started with the acquisition of producing fields and discoveries in the Heimdal area in 1998. This was then supplemented with the acquisition of equity in the major Statfjord field. In 2011 we secured a groundbreaking deal with Statoil that covered the acquisition of Upstream assets, a long term gas supply contract and a memorandum of understanding for collaboration on future exploration activity. The Upstream assets provided us with interest in the Kvitebjørn producing field, further enhanced our equity in the Heimdal area and increased our development options, including the current Valemon project which is under development.
The Norway office has a strong focus on exploration and currently has equity in 14 exploration licences. In April 2010, Centrica Energy found gas with its first ever operated well in Norway, discovering gas and condensate in the Fogelberg field. It has also made recent discoveries in the Maria and Atla (previously David) fields. The most recent success has been at the operated Butch prospect which was drilled in the second half of 2011 and discovered light oil. Our exploration portfolio and activity will be further enhanced as a result of our collaboration agreement with Statoil.
Map of Norway area
Norway key metrics
2012-20 production (mmboe)* 185 Gas % 53 2011 unit lifting cost (£/boe) 16.0 DD&A rate (£/boe) 17.7 *excludes exploration
Production from Norway
We’re helping satisfy 35
more than 25% of 30 the UK’s demand for gas 25 a real sense of direction 20 15 Volume, mmboe p.a. mmboe Volume, 10
5
0 2012 2013 2014 2015 2016 2017 2018 2019 2020
Base Current projects Development options
32 33 Norway Norway
Producing assets
Statfjord Heimdal Asset CEU % Operator Status Production Reserves (Anticipated FY 2011, (End 2010, The field was discovered by Mobil in 1974 and has Heimdal was discovered in 1972 and production mboe net) net mboe) been producing since 1979. By the end of 2010 the started in 1986. In 2000, the facilities were converted Statfjord area 5,978 49,500 2P field had produced 4,722 mmboe of oil and gas. to enable processing of third party gas and the majority
Statfjord UK 66.66 ConocoPhillips Producing 2,824 Today the field is operated by Statoil. of production now comes from third party fields. Centrica Energy acquired Marathon’s equity in Centrica Energy currently owns a non-operated Statfjord Norway 11.04 Statoil Producing 2,751 Heimdal, Skirne, Vale and Peik in 2008 and further 19.1% share of the main Statfjord field and has Statfjord Øst 5.52 Statoil Producing 172 increased its equity in 2011 through its acquisition interests in the satellite fields Statfjord Nord, from Statoil. Statfjord Nord 11.04 Statoil Producing 213 Statfjord Øst and Sygna. Status: Producing gas mainly from satellite fields. Sygna 6.07 Statoil Producing 18 Status: Producing oil and gas. 64% of current Heimdal area 1,694 15,500 2P* production is liquids. Location: Situated in the central Norwegian North Sea, approximately 80km west of Stavanger. Heimdal 33.80 Statoil Producing 348 Location: Situated in the Tampen area 180km west of
† Sognefjord in Norway, approximately 85% of the field Centrica Energy holds 33.8% equity in Heimdal and Vale 75.80 CEU (Statoil) Producing 0 is in Norwegian waters and the remaining 15% in 75.8% of Vale and 30% of Skirne, both of which are Skirne 30.00 Total Producing 1,346 UK waters. satellites tied-back to Heimdal. Kvitebjørn area 90,000 2P* Production: Current daily production from the field is Production: Heimdal consists of two platforms, with Kvitebjørn 19.00 Statoil Producing 80 mboe/d gross. The field comprises three concrete the satellite fields Vale, Byggve/Skirne and 3rd party based platforms. The UK wet gas is exported from Huldra contributing the majority of current production. *Resources associated with 2011 asset acquisition from Statoil are from 01/01/2012, all others from 31/12/2010 † Statfjord via the SPUR line, into the FLAGS system Centrica Energy to become operator subject to government approval Vale is a gas/condensate field developed with a and on to the St Fergus terminal in the UK where it is single subsea well tied-back by a 16km pipeline to Development opportunities sold. The Norwegian part of the gas is exported via the Heimdal Gas Centre. The field is operated by the Tampen Link and the Segal system to St. Fergus. Asset CEU % Operator Status Key Milestones P50 Potential Statoil, but operatorship is planned to be transferred The oil is lifted using an offshore loading system and (Anticipated year) Resources to Centrica Energy through the acquisition from (Net mboe) is then shipped by tankers. Statoil. Heimdal area 18,700 (inc. 2,500 2P) The Statfjord facilities also process hydrocarbons and Byggve/Skirne is a subsea development comprising Atla 20.00 Total Current project First production 2012 receive tariff income from third party fields (Snorre, two wells tied-back to the Heimdal Gas centre for Peik UK 66.67 CEU* (Enquest) Development option Operatorship TBC Statfjord Nord, Statfjord Øst and Sygna). processing and export. The field is operated by Total. Peik Norway 50.00 CEU* (Lundin) Development option Operatorship TBC Future plans: The Statfjord Late Life project Other areas 88,000 (inc. 16,000 2P) commenced in 2007, with the aim of lowering operating Current net production to Centrica Energy from its Maria 20.00 Wintershall Development option FID 2013 costs and increasing reservoir recoverability. The project various interests in the area is around 5 mboe/d. Fogelberg 28.00 CEU Development option FID 2017 should be completed in 2012 and includes additional The Heimdal Gas Centre is an integral part of the † Butch 40.00 CEU Recent discovery Discovered 2011 compression facilities and upgrades to the drilling Gassled gas export system and is connected to Frigg Gamma Delta 40.00 CEU Development option rigs. As a result the end of field life for Statfjord has landing points both in UK (St. Fergus) and the Fulia 50.00 CEU Development option been extended to at least 2020. continent, which transports dry gas to the Draupner Rind 37.87 Total Development option gas hub. Condensate is exported to Brae and Kvitebjørn area 35,000 (inc. 21,200 2P) onwards via the Forties line to Cruden Bay in the UK. Valemon 13.00 Statoil Current project First production 2014 Future plans: An agreement has been signed to Kvitebjørn Øst 19.00 Statoil Current project First production 2013 tie-in a new field development, Valemon, for the *Centrica Energy to become operator subject to government approval †Butch potential resources not included processing of rich gas at Heimdal. With start-up expected in 2014, the project will extend the life of Exploration Heimdal by up to 20 years, as well as that of some of Centrica Energy will continue to build on its existing portfolio by partaking in a targeted exploration programme in the Norwegian Continental Shelf. the current satellite fields. Centrica Energy acquired CEU currently has equity in 14 different exploration licences, both operated and partner operated, which includes two exploration licences in the equity in the Valemon development from Statoil in 2011. Norwegian Sea that CEU was awarded in the 21st licence round. The first, an operated licence, is close to the Fogelberg discovery and the second is an extension for the Maria discovery. The table below provides an indicative programme of drilling activity in the next two to three years. Further third party processing opportunities exist, not least of which are the Atla and Peik discoveries, Asset CEU % Operator Status Location P50 Potential both of which Centrica Energy has equity interests in. Resources (Net mboe) Further exploration potential exists in the area, which could further enhance Heimdal’s status and value Cooper 40.00 CEU Exploration prospect Norwegian Sea as the key gas export facility in the area. PL475 Exp 20.00 Wintershall Exploration prospect Norwegian Sea 150,000 - 300,000 Batseba 20.00 Total Exploration prospect North Sea prospective Nyk 30.00 Suncor Energy Norge Exploration prospect Norwegian Sea
34 35 Norway Norway
Kvitebjørn Atla (previously David) Maria Butch
The Kvitebjørn High Pressure/High Temperature field Centrica Energy has a 20% interest in Atla which is Light oil discovery made in Maria South in 2010 - The Butch exploration well was drilled in the second was discovered by Statoil in 1994, with production operated by Total (40%) with Det Norske and Petoro net 2P reserves are 16 mmboe net to Centrica half of 2011 by Centrica Energy. Centrica Energy is commencing in 2004. The field is operated by Statoil owning the remaining equity. Development will be Energy. Maria is operated by Wintershall (50%), the operator of the block with 40% equity. and Centrica Energy acquired a 19% non-operated via the Heimdal Gas Centre which is close to Centrica Energy is a partner with 20% along with Status: Light oil discovery made in 2011. interest in 2011. Remaining recoverable reserves are the discovery. Petoro (30%). estimated at over 470 mmboe gross. In addition, the Location: Butch is located 220km offshore Norway Status: Gas condensate field discovered in 2010 Status: Development project is in phase with an Valemon development will utilise Kvitebjørn’s facilities in Block 8/10, approximately 11km to the south east by Total. appraisal well to be drilled on the northern part of for processing condensate. of the BP’s producing Ula Field. the structure in Q1 2012 (Maria North). Location: East of Heimdal in the North Sea. Future plans: Butch is our most recent discovery Status: Producing gas and condensate. Future plans: Fast track development is currently Location: Southeast of Åsgard Field in the and is currently being geologically side-tracked. Location: Situated in the Viking Graben, east of the being undertaken by Total via the Heimdal facility. Norwegian sea. A full technical evaluation of the data acquired is being Gullfaks fields. Future plans: The plan is to make a design concept carried out to evaluate the size of the discovery. Initial Production: Kvitebjørn has been developed using a selection decision in the second half of 2012. Earliest results point to Butch being a commercial discovery. processing, drilling and quarters platform. The platform Fogelberg production start-up is 2016. In addition, part of the 2011 acquisition from Statoil is being modified for additional compression facilities Fogelberg was Centrica Energy’s first operated was the agreement to collaborate in future exploration and for the facilities tie-in requirements for the Valemon exploration well in Norway. It was drilled by the West activity in Norway and the UK. It is anticipated this will development. Alpha rig in April 2010 and was a successful discovery. result in exploration activity in Norway, including in Condensate is exported via a dedicated 16" pipeline Centrica Energy owns 28% of the discovery, alongside the Barents Sea. The scope of this activity has yet to to the Troll Oil pipeline and then to the Mongstad partners E.ON Rhurgas, Faroe Petroleum, North Energy be determined and would supplement the current terminal and rich gas is exported via a dedicated 26" and Suncor Energy Norway. exploration plans. pipeline to Kollsnes for gas and NGL processing. Gas Status: Gas condensate discovery made in 2010. is exported from there to the UK and the continent. Location: 250km North West of Kristiansund in the Future plans: Additional gas compression will come Norwegian Sea. into effect from 2013 and the Valemon development Future plans: The requirement for further appraisal will export condensate to Kvitebjørn from 2014. There drilling activity and conceptual development options are also additional infill drilling opportunities, including are currently being evaluated. Kvitebjørn Øst and the second stage development of the main reservoir itself. Peik
Valemon Peik is an undeveloped gas/condensate field discovered in 1985, that can be developed potentially Valemon is a High Pressure/High Temperature via the Heimdal Gas Centre. Operatorship of the field development operated by Statoil. It will be developed has changed on a number of occasions in recent years, using a normally unmanned steel jacket platform, with Centrica Energy planning to assume the unit remotely controlled from the Kvitebjørn facilities. operatorship in 2011, subject to regulatory consent. Condensate will be exported to Kvitebjørn, while rich gas will be exported via the Huldra/Heimdal system Status: The UK and Norwegian licenses have approved and processed at Heimdal. transfer of operatorship to Centrica Energy and activities to obtain regulatory consent are ongoing. Status: Project PDO approval was received in 2011 Location: West of Heimdal in the North Sea, and the development is currently underway, with first straddling the UK/Norway median line. production anticipated in 2014. Future plans: Work has been ongoing to determine Location: In the Viking Graben, close to the Kvitebjørn an economic development plan for the discovery. and Gullfaks developments. This work can now be re-focused given the recent Future plans: Development is currently being change in operatorship of the development. undertaken by Statoil. All major contracts have been placed.
Current projects
36 37 centrica energy upstream
Trinidad and Tobago
Centrica Energy has built a substantial business in Trinidad and Tobago (T&T) which includes operated equity positions in Block 22, NCMA-4, Blocks 1a and 1b, and a non-operated position in Block 2(ab) and NCMA-1.
Trinidad and Tobago is one of the most established LNG producing areas in the world. The four trains at Atlantic LNG now consume 2,375 million cubic feet per day (mmcfd) out of T&T’s total gas sales of 4,501 mmcfd. Historically the United States has been the predominant market for LNG from T&T, but as LNG has become a globally traded commodity, export to Asia and Europe has increased. Centrica Energy has imported four LNG cargoes from T&T since 2009 and is looking to procure more.
Centrica Energy’s portfolio of assets in T&T secures a significant share of un-contracted gas awaiting development through export by LNG or other routes. In addition, the exploration acreage offers significant and exciting upside potential.
Map of Trinidad and Tobago area
Trinidad and Tobago key metrics 2012-20 entitlement 55 +tax barrel volume (mmboe)*
Gas % 100 2011 unit lifting cost (£/boe) 1.5 DD&A rate (£/boe) 4.6 *excludes exploration
Production from Trinidad and Tobago Our commitment to safety 14
and the wellbeing of our 12
people, communities, 10
partners, customers and the 8
environment is paramount 6
a real sense of responsibility p.a. mmboe Volume, 4
2
0 2012 2013 2014 2015 2016 2017 2018 2019 2020
Base Development options
38 39 Trinidad and Tobago Trinidad and Tobago
NCMA NCMA-4 Producing assets The North Coast Marine Area Block (NCMA-1) NCMA-4 contains two gas discoveries, Orchid and Asset CEU % Operator Status Production Reserves contains four gas fields to the north of the island Iris. Centrica Energy signed a production sharing (Anticipated FY 2011, (End 2010, mboe entitlement mboe entitlement of Trinidad: Hibiscus, Chaconia, Poinsettia and contract as operator of the block in April 2011 + tax barrels) + tax barrels) Poinsettia Southwest. They were discovered in the late following success in the 2010 exploration shallow
North Coast Marine Area 26,300 2P 1970s/early-1980s and Hibiscus was the first field to water bid licensing round. come on-stream in 2002. It was developed to supply Status: Contains two gas discoveries and exploration NCMA 1 17.31 BG Producing 2,620 gas to Atlantic LNG's (ALNG) Trains 2 and 3. Centrica potential, with new block-wide 3D seismic data being Energy has a 17.3% equity interest in NCMA-1. acquired. Status: Gas producing field. Location: 50km West of the island of Trinidad and Development opportunities Location: 60km north of Trinidad in the Caribbean Sea. west of Tobago in the Caribbean Sea.
Asset CEU % Operator Status Key Milestones P50 Potential Resources Production: Centrica Energy’s entitlement share of Future Plans: Evaluation of development options (Anticipated year) (mboe entitlement production from the field is approximately 7 mboe/d. and further appraisal activity is currently underway. + tax barrels) The NCMA fields are developed using two platforms. Block 22 90.00 CEU Development option FEED study 2012 138,800 The gas is very dry and does not require significant Blocks 1a and 1b (Cassra & Sancoche & Iris) processing offshore. A 107-kilometre gas pipeline Block 1a contains three gas discoveries, Iguana, runs from Hibiscus to the Atlantic LNG (ALNG) plant Block 1a & 1b 80.00 CEU Development option 26,900 Zandolie West and East. Block 1b contains the Anole, Iguana, at Point Fortin, where the gas is sold to ALNG's Anole gas discovery. E & W Zandolie Trains 2, 3 and 4.
NCMA4 80.00 CEU Development option 29,400 Status: Contains four gas discoveries, awaiting development of the gas market. Orchid & Iris Block 22 Block 22 contains two gas discoveries. The first Location: 20km west of the island of Trinidad. discovery, Cassra was made in 2007 and the second Future Plans: To continue dialogue with NGC with Sancoche in 2008, both wells being drilled by a view to potentially developing the block. Petro-Canada. Centrica Energy is currently evaluating Exploration development options for monetising the value in Trinidad and Tobago has a significant amount of upside exploration potential, which Centrica Energy is now in an excellent position to these discoveries. exploit. Seismic data has been acquired and interpreted in order to better understand and prioritise the emerging prospect inventory. Status: Contains two gas discoveries and The table below provides an indicative programme of drilling activity. exploration potential. Location: 25km north of the island of Tobago in Asset CEU % Operator Status Location P50 Potential Resources (mboe entitlement the Caribbean Sea. + tax barrels) Future Plans: Front End Engineering & Design will Block 2ab 29.25 Niko 3 Exploration prospects Trinidad East coast 50,000-100,000 prospective commence in 2012 and a further appraisal well is also NCMA4 exploration 80.00 CEU 2-3 Exploration prospects North Coast Marine Area 40,000-80,000 prospective planned. The block also contains a number of other potential exploration prospects which are currently Block 22 exploration 90.00 CEU 1-2 Exploration prospects North of Tobago 20,000-40,000 prospective being evaluated following the acquisition of further seismic data.
40 41 centrica energy upstream
glossary
2C Resources: Already discovered P50 contingent resource
2P Reserves: Proved and probable reserves
ALNG: Atlantic Liquefied Natural Gas terminal in Trindad and Tobago
boe: Barrel of oil equivalent
CEU: Centrica Energy Upstream
DD&A: Depreciation, depletion & amortisation
FEED: Front End Engineering & Design
FID: Final Investment Decision
GMA: Greater Markham Area
Lifting cost: Field operating costs, including tariff
LNG: Liquefied Natural Gas
mboe: Thousands of barrels of oil equivalent
mmboe: Millions of barrels of oil equivalent
mmscf/d: millions of square cubic feet of gas per day
Net: Centrica equity share
NCMA: North Coast Marine Area licence blocks in Trinidad and Tobago
NUI: Normally Unmanned Installation
P50 resources: Best estimated remaining life of field production from a development/opportunity
Prospective resources: Estimated undiscovered resources from exploration
PSC: Production Sharing Contract
Remaining recoverable resources: The total estimated volumes to be produced
T&T: Trinidad and Tobago
WGT: West Gas Transport system in the Netherlands
42 Centrica Energy Upstream asset book
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