COMPANY PROFILE
2015
Kaombo Project
www.total.com
Total commitment Editorial: Colin Chinery
Falling oil prices and the high cost of drilling offshore are causing energy players around the world to rethink their budgets. But, after a major costreappraisal, Total gave the green light to the massive Ultra Deep Kaombo field off the coast of Angola, a project offering huge rewards for the West African producer and the French oil giant. 1 5 0 k m o ff L u a n d a o n t h e Angolan coast lies a giant oil field estimated to contain s o m e 6 5 0 m i l l i o n b a r re l s o f o i l . This is Kaombo, the name given to six of the 12 fields d i s c o v e re d a t B l o c k 3 2 . I t ’s o n e o f t h e w o r l d ’s b i g g e s t s u b s e a p ro j e c t s a n d i t ’s u l t r a deep, the water depth in the d e v e l o p m e n t a re a e x t e n d i n g f ro m 1 , 4 0 0 m t o 1 , 9 5 0 m . T h e l a t t e r c o r re s p o n d s t o 1.18 miles, which ranks none
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t o o s h a b b i l y w i t h t h e w o r l d ’s d e e p e s t , S h e l l ’s p ro j e c t e d Stones fields, two miles deep 2 0 0 m i l e s o ff L o u i s i a n a i n t h e Gulf of Mexico. Wo r k o n t h e $ 1 6 b n K a o m b o p ro j e c t - t h e b l o c k ’s f i r s t development - is scheduled f o r 2 0 1 7 , t w o y e a r s a f t e r To t a l announced it would move f o r w a rd w i t h p l a n s t o d e v e l o p t h e f i e l d o ff t h e s h o re l i n e o f a c o u n t r y w h e re i t h a s b e e n operating since 1953.
I t ’s a n i n v e s t m e n t p a c k a g e o f w h i c h To t a l ’s p e rc e n t a g e i n t e re s t i s 3 0 % . A n g o l a n state-owned firm Sonangol holds another 30% of Block 32, Angolan-Chinese joint v e n t u re S o n a n g o l S i n o p e c International, 20%, Exxon M o b i l ’s E s s o u n i t 1 5 % a n d P o r t u g a l ’s G a l p 5 % . K a o m b o ’s s u c c e s s i s c r i t i c a l f o r A f r i c a ’s s e c o n d b i g g e s t o i l p ro d u c e r w h e re 3 0 % o f t h e p o p u l a t i o n a re l i v i n g b e l o w t h e
Kaombo Project
poverty line. B u t To t a l ’s g o a h e a d came only after an internal re - a p p r a i s a l t h a t s a w a significant downsizing in c o s t i n g . T h e K a o m b o p ro j e c t h a s s u ff e re d n u m e ro u s d e l a y s in its history due largely to the cost of developing the ultra-deepwater field, t h re a t e n i n g t o a d d i t t o a g ro w i n g l i s t o f l a r g e - s c a l e g l o b a l p ro j e c t s m o t h b a l l e d as oil companies have cut investments. Kaombo is made up of two clusters of widely dispersed, marginal oil discoveries which on their own could not be developed. But, by bringing them together under two separate developments,
p ro j e c t e c o n o m i c s h a v e i m p ro v e d . To t a l ’s i n i t i a l e s t i m a t e s p u t Kaombo on $20 billion to b r i n g i t i n t o p ro d u c t i o n . B u t a f t e r re - e x a m i n i n g i t s f i g u re s t h e F re n c h g i a n t t r i m m e d t h i s down to $16 billion, keeping A f r i c a ’s N o . 2 p ro d u c e r on track to expand its oil i n d u s t r y. A k e y h e re w a s t o s e t t l e for a “just good enough” a p p ro a c h i n s t e a d o f i t s original “the best possible.” The company decided, for example, to build its two 115,000 bpd floating p ro d u c t i o n s t o r a g e a n d o ff l o a d i n g u n i t s b y m a k i n g alterations to two very large crude carriers (VLCCs) instead
o f b u i l d i n g t h e m f ro m s c r a t c h . Using the converted VLCCs and other less bespoke equipment saved $2 billion. To t a l a l s o r a i s e d i t s o u t p u t capacity estimate for the p ro j e c t t o 2 3 0 , 0 0 0 b p d f ro m 200,000.
COST EFFICIENT INNOVATIONS The 50 subsea development plan is based on innovative a n d c o s t e ff i c i e n t “ h y b r i d loop” technology for multiphase pumping and transport of fluids. The concept consists of a number o f p ro d u c t i o n l o o p s w i t h o n e i n s u l a t e d p ro d u c t i o n r i s e r a n d one non-insulated service riser p e r f i e l d . Wa t e r i n j e c t i o n r i s e r s Continues on page 7... PAGE 3
Supplying Mission-Critical Systems for Total’s Kaombo Project:
200 Optical Terminations 242 Optical Wet Mate Connectors
378 Electrical Terminations
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www.teledyneoilandgas.com oilandgas@teledyne.com
Kaombo Project
Teledyne Oil & Gas optical and electrical interconnect systems
148 Optical Harnesses and Jumpers
7,168 Electrical Wet Mate Connectors 1,299 Electrical Harnesses and Jumpers
62 Glass-to-metal sealed penetrators integrated into PT Sensors
The Kaombo project includes over 9,400 interconnect solutions from these Teledyne Oil & Gas product lines: CABLE SOLUTIONS
CORMON
DGO
IMPULSE-PDM
ODI
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Teledyne Oil & Gas With over 9,400 elements enabling the power and data transmission network for the Kaombo project, Teledyne Oil & Gas contributes the mission-critical interconnect technology that keeps the field operational for its lifetime. The product lines of Teledyne Oil & Gas provide the subsea interconnect and electro-optical distribution systems for Total’s Kaombo project through Aker Solutions. Teledyne Oil & Gas comprises seven product lines that offer a wide spectrum of submersible interconnect, from dry mate electrical connectors and penetrators, to wet mate optical and hybrid connectors, to High Pressure/High Temperature (HPHT) connectors and feedthrough systems. This unique organizational structure allows Teledyne Oil & Gas to act as a one-stop-shop for the supply of the complete electrical and optical distribution scope of major projects such as Kaombo, where the alternative solution is for operators to manage multiple suppliers, potentially increasing complexity and management costs. In addition to a diverse product offering, Teledyne Oil & Gas has a long history of supply to Total programs, and has developed a partner relationship with Aker Solutions by integrating the engineering teams. Teledyne Oil & Gas had previously demonstrated successful execution with the team at Aker during recent projects, which culminated in being awarded the 2013 Supplier of the Year from Aker Solutions Subsea UK. The integrated Teledyne Oil & Gas/Aker team focuses on scoping the project requirements from the outset, creating a process to generate the optimal specifications for the required reliability for the anticipated product life cycle. The team also seeks to reduce non-valueadded activities, to ensure that resources are effectively utilized and the project executes on time. Formed in 2009 from a group of Teledyne Technologies companies, Teledyne Oil & Gas has evolved to become a single integrated organization with seven product line entities: AG Geophysical Products, Cormon, DGO, Impulse, ODI, Storm Cable and VariSystems, plus a close association with research partner Teledyne Scientific Corporation. Together, the teams have participated in hundreds of subsea projects with hundreds of thousands of units deployed. Teledyne Oil & Gas leads with a strong reliability program based on understanding all aspects of our systems’ and subsystems’ 25 year performance life capability, from the materials systems to the physics of failure of each material in the system. The latest advanced methods of combined stress analysis and materials certification, along with accelerated aging performance qualification are practiced in association with Teledyne Scientific, a leading materials science research center in Thousand Oaks, California. Working closely with materials scientists at Teledyne Scientific on rigorous test programs, Teledyne Oil & Gas has developed a qualified materials database with over 29,000 analyses and over 200 qualified materials. This database serves as a comprehensive resource to provide guidance to operators on choosing materials systems for challenging operating conditions, including high pressure, high temperature, harsh fluids, or a combination of these. To solidify the company’s focus on new product development for over-the-horizon challenges, a new 52,000 square foot Technology Development Center opened in October 2013 at the Teledyne Oil & Gas headquarters in Daytona Beach, Florida. The Technology Development Center is staffed with over fifty dedicated New Product Development engineers, and serves as the new product development center to design, develop and qualify engineered solutions to resolve complex emerging technical challenges, primarily for the offshore oil and gas production and exploration industries. The integrated product lines of Teledyne Oil & Gas, along with the advanced research capabilities and materials science expertise, all combined with proven project experience, makes evident the value proposition of Teledyne Oil & Gas for subsea projects that call for complex interconnect solutions and require validated reliability processes.
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Kaombo Project ...Continued from page 3 w i l l a l s o b e re q u i re d . The two VLCCs converted i n t o t u r re t m o o re d F l o a t i n g P ro d u c t i o n , S t o r a g e a n d O ff l o a d i n g v e s s e l s a n d connected to one of the biggest subsea networks in t h e w o r l d - m o re t h a n 6 0 0 k m s q – w i l l e a c h b e p ro d u c i n g 1 1 5 , 0 0 0 b a r re l s p e r d a y, t a p p i n g re c o v e r a b l e re s o u rc e s o f a b o u t 3 0 0 m i l l i o n b a r re l s o f crude held in Oligocene and M i o c e n e re s e r v o i r s . The Kaombo North FPSO w i l l p ro d u c e f ro m s o m e 35 subsea wells on the G e n g i b re , G i n d u n g o a n d C a r i l discoveries, while the Kaombo South floater will exploit the M o s t a rd a , L o u ro a n d C a n e l a f i n d s t h ro u g h 2 9 w e l l s . The nearby Salsa accumulation could become a f u t u re s a t e l l i t e p ro d u c e r. S t a r t - u p o f K a o m b o ’s f i r s t FPSO is scheduled for the second half of 2017, with the second FPSO coming on s t re a m a b o u t n i n e m o n t h s l a t e r. O i l w i l l b e l o a d e d i n t o shuttle tankers for export, while gas will be piped to the Angola liquefied natural gas plant at Soyo. A f l a g s h i p p ro j e c t i n a country of strategic i m p o r t a n c e f o r To t a l , K a o m b o w i l l s e c u re t h e s u s t a i n a b l e g ro w t h o f A n g o l a ’s o ff s h o re re s o u rc e s t h ro u g h t h e mastery of state-of-the art technologies. Falling oil prices and the high cost of drilling o ff s h o re a re c a u s i n g e n e r g y p l a y e r s a ro u n d t h e w o r l d t o re t h i n k t h e i r b u d g e t s , a n d a n a l y s t s D o u g l a s - We s t w o o d a re f o re c a s t i n g a d ro p i n deepwater completions in
Angola in 2016. Despite this set-back, A n g o l a ’s d e e p a n d u l t r a - d e e p p ro j e c t s a re k e y t o d r i v i n g o ff s h o re p ro d u c t i o n d u r i n g a p e r i o d o f re d u c e d s p e n d i n g a n d re t re n c h m e n t . “ We d o n o t e x p e c t t o s e e p ro j e c t s t h a t a re p a s t F I D b e i n g c a n c e l l e d a n d m a n y p ro j e c t s h a v e b e e n under construction for a number of years and will start u p i n t h e c o m i n g t h re e y e a r s , ” re p o r t s D o u g l a s - We s t w o o d . To t a l ’s c o n t i n e n t a l a m b i t i o n s c e r t a i n l y re m a i n u n d a u n t e d by the collapse in oil prices. For as well as Kaombo, it is betting on a string of African p ro j e c t s ( E g i n a i n N i g e r i a and Moho in the Republic of Congo among them) to help it boost p ro d u c t i o n t o a target of 2.8 million b a r re l s of oil
equivalent per day in 2017. T h e s e We s t A f r i c a n p ro j e c t s a re i n d e e p a n d u l t r a - d e e p w a t e r - a n a re a w h e re To t a l i s a s e l f - p ro c l a i m e d s p e c i a l i s t , b u t t h a t re q u i re s c o s t l y technologies.
CONTRACTS BONANZA To t a l ’s K a o m b o G re e n L i g h t t r i g g e re d n e a r l y $ 8 b n w o r t h o f c o n t r a c t s . A F re n c h - D u t c h a l l i a n c e b e t w e e n Te c h n i p a n d H e e re m a M a r i n e C o n t r a c t o r s won a $3.5bn engineering, p ro c u re m e n t , c o n s t r u c t i o n , i n s t a l l a t i o n ( E P C I ) a n d p re commissioning contract for the subsea umbilicals, risers and flowlines (SURF) on Kaombo.
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H e e re m a ’s d e e p w a t e r construction vessel, the B a l d e r, w i l l b e d e p l o y e d t o install the STTRs and the p i p e - i n - p i p e p ro d u c t i o n p i p e l i n e s , w h i l e Te c h n i p ’s vessel the Deep Blue will i n s t a l l a l l t h e re m a i n i n g pipelines. Te c h n i p w i l l a l s o d e p l o y o t h e r v e s s e l s f ro m i t s f l e e t to install the flexibles and u m b i l i c a l s , a n d p ro v i d e construction work support for t h e u l t r a - d e e p w a t e r p ro j e c t . T h e j o i n t v e n t u re w i l l a l s o carry out engineering and installation works for 18 rigid single-top-tension risers, large buoyancy tanks measuring 40m by 6m. It will also install flexible top riser jumpers, riser base spools, the rigid pipei n - p i p e p ro d u c t i o n a n d s i n g l e pipe injection pipelines, and
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o t h e r s u b s e a s t r u c t u re s , p i l e s and steel jumpers. The deeper and heavier pipe-in-pipe p ro d u c t i o n p i p e l i n e s r a n g e f ro m 1 2 i n t o 1 8 i n i n d i a m e t e r. Italian oil and gas industry c o n t r a c t o r, S a i p e m , s e c u re d two contracts worth a combined $4 billion. The main c o n t r a c t w o r t h m o re t h a n $3 billion is an EPCI for the e n g i n e e r i n g , p ro c u re m e n t , installation and commissioning o f t h e t w o c o n v e r t e d t u r re t m o o re d f l o a t i n g F P S O s , and Saipem has also been a w a rd e d a s e v e n - y e a r c o n t r a c t worth about $1 billion for the operation and maintenance services of the two vessels. B u m i A r m a d a ’s s u b s i d i a r i e s A r m a d a O ff s h o re O S V a n d Bumi Armada (Labuan) have been contracted to supply their
A r m a d a Tu a h 3 0 6 a n d A r m a d a Tu a h 3 0 2 p l a t f o r m s u p p l y vessels to carry out the drilling works within Block 32. And last month Norwegianh e a d q u a r t e re d A k e r S o l u t i o n s – which has been operating in Angola since 1999, won a c o n t r a c t w o r t h £ 1 . 8 b n f ro m To t a l t o p ro v i d e a s u b s e a p ro d u c t i o n s y s t e m f o r t h e Kaombo development.
JOINT VENTURE Aker Solutions will deliver 20 subsea manifolds and 65 vertical subsea wellsets. The o rd e r a l s o i n c l u d e s a s s o c i a t e d c o n t ro l s a s w e l l a s w o r k over and tie-in systems. The f i r s t d e l i v e r i e s a re s c h e d u l e d for the second quarter of 2015. Aker has formed a joint v e n t u re w i t h A n g o l a n c o m p a n y P ro d i a m a n O i l S e r v i c e s t o f u l f i l
Kaombo Project l o c a l c o n t e n t re q u i re m e n t s f o r t h i s a n d o t h e r s u b s e a p ro j e c t s o ff A n g o l a . In June, Bluewater a n n o u n c e d i t w o u l d p ro v i d e engineering for two complete d e e p w a t e r t u r re t m o o r i n g s y s t e m s a n d t h e re l a t e d p ro c u re m e n t a n d c o n s t r u c t i o n o f t w o t u r re t a n d s w i v e l systems. Kaombo marks a turning p o i n t i n To t a l ’s l o c a l p re s e n c e and industrial partnership with A n g o l a , w i t h a n u n p re c e d e n t e d level of local content. Over 14 million man-hours of fabrication and construction works will be performed locally i n A n g o l a n y a rd s , w h i c h w i l l b e used for equipment fabrication a n d a s s e m b l y. The former Portuguese colony has been among A f r i c a ’s f a s t e s t g ro w i n g
“It will also significantly increase Total’s current Angolan liquid production of 186,000 bpd”
economies over the past d e c a d e a s i t s o u g h t t o re b u i l d following the devastating civil war that ended in 2002. And the ramping up of oil output h e l p e d A n g o l a a c h i e v e s t ro n g g ro w t h — a c h i e v i n g c l o s e t o 23% in 2007 alone. Angola is one of the top o i l p ro d u c e r s a n d l a r g e s t exporters in the world and has long competed with Nigeria for t h e t i t l e o f l a r g e s t o i l p ro d u c e r in sub-Saharan Africa. However the country has yet t o h i t s e l f - i m p o s e d p ro d u c t i o n targets, with older and ageing f i e l d s s u ff e r i n g f ro m d e c l i n i n g p ro d u c t i o n . Oil accounted for 44% of GDP and close to 97% of t o t a l e x p o r t re v e n u e i n 2 0 1 2 a c c o rd i n g t o t h e I n t e r n a t i o n a l Monetary Fund. The US Energy Information Administration
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© FPSO Pazflor | Total PAGE 10
Kaombo Project estimates the country had $24 b i l l i o n i n n e t o i l e x p o r t re v e n u e in 2014 - $3 billion less than i n 2 0 1 3 b e c a u s e o f d e c re a s e d p ro d u c t i o n a n d t h e d e c l i n e in average annual crude oil prices.
VULNERABILITY A n g o l a ’s d e p e n d e n c e o n o i l re v e n u e m a k e s i t v u l n e r a b l e t o a decline in oil prices, whose dramatic fall coupled with A n g o l a ’s s t a g n a n t p ro d u c t i o n h a s c re a t e d a c r i s i s t h a t h a s s e n t i t s c u r re n c y, t h e K w a n z a , t o a n a l l - t i m e l o w. The national Government has slashed its budget for the year by a quarter - about $15bn a f t e r re v i s i n g e x p e n d i t u re a n d halving its assumptions for o i l p r i c e t o $ 4 0 a b a r re l . A n d n o w A f r i c a ’s s e c o n d - l a r g e s t o i l p ro d u c e r i s s e e k i n g t o r a i s e u p t o $ 1 0 b n f ro m f o re i g n c re d i t o r s
“Kaombo is riding to a rescue, poised to arrest the downward trend and conceivably reverse it by contributing 15% to Angola’s oil output”
AP OSJ-0515-A5:AP OSJ-0515-A5 28/04/15 18:42 Page1
as it attempts to push ahead w i t h k e y i n f r a s t r u c t u re p ro j e c t s i n t h e f a c e o f s e v e re h e a d w i n d s t r i g g e re d b y t h e price collapse. But Kaombo is riding t o t h e re s c u e , p o i s e d t o a r re s t t h e d o w n w a rd t re n d a n d c o n c e i v a b l y re v e r s e it by contributing 15% to A n g o l a ’s o i l o u t p u t . I t w i l l a l s o s i g n i f i c a n t l y i n c re a s e To t a l ’s c u r re n t A n g o l a n l i q u i d p ro d u c t i o n o f 1 8 6 , 0 0 0 b p d . “ G l o b a l l y, d e e p w a t e r c o s t s a re r i s i n g - t h i s y e a r b y a l m o s t 2 0 % , s o t h e f a c t t h a t To t a l could find slack in its capex to continue with its Angola p ro j e c t s h o w s h o w i n v e s t o r s v i e w A n g o l a ’s l o n g e r- t e r m o ff s h o re p ro s p e c t s , ” s a y s Rolake Akinkugbe, head of e n e r g y a n d n a t u r a l re s o u rc e s coverage at FBN Capital. “By a n d l a r g e , t h e y a re b u l l i s h . ”
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To t a l i s t h e l a r g e s t p ro d u c e r on the African continent and a t s o m e 6 7 0 , 0 0 0 b a r re l s a d a y m a k i n g u p o n e t h i rd o f i t s p ro d u c t i o n a s o p e r a t o r, and Kaombo will continue t o b e i m p l e m e n t e d n o r m a l l y, re g a rd l e s s o f t h e f a l l o f t h e oil price in the international m a r k e t , a c c o rd i n g t o E x e c u t i v e D i re c t o r P a t r i c k P o u y a n n é .
LONG TERM VISION “Despite the volatility of oil prices, we are keeping a long-term vision and we are maintaining the projects that have been announced, such as Kaombo in Angola. “Whatever the price of crude-oil will be, we’ll keep this project. In our industry we need to have medium and long term visions, and we should not react in a
© Ocean Rig
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“In our industry we need to have medium and long term visions, and we should not react in a drastic way to the price of the barrel”
drastic way to the price of the barrel. “If we are not able to do something about costs as a n i n d u s t r y, n o t o n l y o i l companies but all of the supply chain, we may have to suspend or maybe cancel p r o j e c t s , ” s a y s To t a l ’s President of Exploration and Production, Arnaud Breuillac. “If we start postponing projects, this means this oil will be missing 10 years f r o m n o w. Yo u ’ d g e t i n t o what we’ve had so often in our industry: an increase in oil prices that could be detrimental to the world e c o n o m y. ” “ To t a l h a s t h r e e p a r t i c u l a r strengths,” says Patrick Pouyanné - “ultra-deep w a t e r, l i q u e f i e d n a t u r a l g a s and Africa.”
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Prodiaman Oil Services Lda is the proud partner of Aker Solutions for the Angolan in country work to provide to Total E & P Angola a subsea production system for Kaombo Block 32 development in Angola. Prodiaman Oil Services Lda • A reliable, established , goal oriented, partner knowledgeable about all aspects of the Angolan oil and gas business and doing business in Angola • Maintaining the highest business and ethical standards- and certified by TRACE, the internationally recognized organization working with companies to raise ethical compliance standards worldwide
Prodiaman Oil Services Lda Joint ventures to the offshore oil industry in Angola providing Aker Solutions with subsea design, manufacturing and installation services; with Paragon Angola engineering, process equipment supply and project control services; with TEST Angola design and service of control panels that monitor the production of oil and gas; with Krisalis Angola manpower solutions and with Clariant Angola speciality chemicals.
An Angolan owned and operated company
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+44 (0) 1603 411569 info@totalworldenergy.com East Coast Promotions Ltd, 2 Ardney Rise Norwich, Norfolk NR3 3QH
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