NHDA 2005

1
NHDA 2005National Hydrocarbons Data
ArchiveDTI, London5th April 2005
2
Meeting Agenda

• 1. Welcome Introduction
• 2. Overview
• 2.1 Why Archive
• 2.2 What is the NHDA
• 2.3 Who should archive
• 2.4 The Benefits of Archiving
• 2.5 What Data Types
• 2.6 When to Archive
• 3. How to Archive
• 3.1 Phase Overview
• 3.2 Exploring the Option
• 3.3 An Annual Cycle?
• 4. 2005/06 Programme
• 5. Next Steps

3
Meeting Agenda

• 1. Welcome Introduction
• 2. Overview
• 2.1 Why Archive
• 2.2 What is the NHDA
• 2.3 Who should archive
• 2.4 The Benefits of Archiving
• 2.5 What Data Types
• 2.6 When to Archive
• 3. How to Archive
• 3.1 Phase Overview
• 3.2 Exploring the Option
• 3.3 An Annual Cycle?
• 4. 2005/06 Programme
• 5. Next Steps

4
2.1 Why Archive?

• Overview
• Licensees are jointly and severally obliged to
  retain Licence Data in an accurate andusable
  form in perpetuity
• This obligation survives
• data release
• licence relinquishment
• decommissioning and
• licence equity/asset sales (some uncertainty in
  this area)
• Archiving is the only certain way to escape

Licence Group
Letter of Relief
Licence Agreement
5
(No Transcript)
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2.2 What is the NHDA?

• NERC Designated Data Centres
• Antarctic Environmental Data Centre
• British Atmospheric Data Centre
• British Oceanographic Data Centre
• Environmental Information Centre
• National Geoscience Data Centre
• National Water Archive
• NERC Earth Observation Data Centre

• NGDC
• National Hydrocarbons Data Archive (2003)
• National Geoscience Records Centre
• National Geoscience Materials Collection
• BGS Geoscience Integrated Database System

Onshore Data
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2.3 Who Should Archive?

• Must be a recognized Licensed Feature
• Fully relinquished licence
• Relinquished block/contiguous blocks within a
  licence
• Decommissioned/COPd Field
• Licence Groups
• Shared obligations and shared benefits
• Act through current operator or last active
  operator
• Currently an optional process
• Communications - company focal points

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2.4 The Benefits of Archiving

• Stakeholder Business Driver
• DTI Maximise UKCS economic recovery
• Regulate current licensees
• Attract new licensees
• Facilitate licence turnover
• BGS Preserve key geoscience data as a
  national asset
• Current Licensees Minimise data management
  costs
• Limit/remove (data) liabilities
• Improve access to data
• Comply with regulations
• New Entrants Inexpensive simple access to
  data
• Service Companies Opportunities for profitable
  business
• All Knowledge of what data exists
• Data quality improvements

• PILOT 2010 Vision
• Production 3mm boe/d
• Investment 3bn pa
• 100,000 jobs preserved
• Prolong self-sufficiency

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2.5 What Data Types?

• Geoscientific data
• Digital data only (NHDA)
• Well Data
• Well reports and logs
• Seismic Data
• Field seismic
• Processed seismic
• Navigation data
• Interpreted Maps Reports
• Field Data

• Archiving to Gilmerton
• Cores Samples
• Seismic Data
• 2D, pre-1992 hardcopy

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2.6 When to Archive?

• Overview
• Point-forward
• Block relinquishment
• Full licence relinquishment
• COP ahead of field decommissioning
• Legacy
• COPd/Decommissioned fields
• Surrendered licences/blocks

635 licences have been fully relinquished to date
Prior to COP the operator should create a
catalogue of relevant information. When
production ceases, the operator may either (a)
elect to retain the data and maintain it in
perpetuity or (b) place the relevant data in
the NHDA. http//www.og.dti.gov.uk/regulation/guid
ance/reg_offshore/part6.htmsix

• New Regulations
• Produce a catalogue at COP
• ...and on licence relinquishment

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The Business Case

• Total Archive Costs
• Baseline Costs
• Cost recovery period (years)
• Accelerated Payback when Licence Group acts
  together
• Cost to explore option is low (phase 1-4)
• Full Project 1 cost analysis is pending

Payback (in years) (Phase 1 to 4 Costs)
(Phase 5 Archiving Costs) Annual Baseline
Costs
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Progress So Far
Group Project 1 Operator Licence(s) Wells Surveys
Phase/Status BG Group P869, P870
943 1 3 5 Archived? BP P551
P557 6 4 5 Q1/2005 ChevronTexaco P868 3 1 5
Q1/2005 ConocoPhillips Maureen Field 44 6 4 Sus
pended Shell P987 1 1 5 Q1/2005 Total P871 3
3 5 Q1/2005 Assisted Projects BP NW Hutton
Field Kerr McGee Hutton Field 62 2 5 Q1/2005
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Meeting Agenda

• 1. Welcome Introduction
• 2. Overview
• 2.1 Why Archive
• 2.2 What is the NHDA
• 2.3 Who should archive
• 2.4 The Benefits of Archiving
• 2.5 What Data Types
• 2.6 When to Archive
• 3. How to Archive
• 3.1 Phase Overview
• 3.2 Exploring the Option
• 3.3 An Annual Cycle?
• 4. 2005/06 Programme
• 5. Next Steps

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3.1 Phase Overview (Project 1)
Total Cost to Archive Payback (Years)
Baseline Cost
1
Explore Archive Option
2
Information Gathering
Decision to Proceed
3
Archiving
Data Selection Categorization
4
Compare BaselineCost and Total Cost to Archive
Cost Evaluation
5
Implementation
Evaluation of the Option to Archive (Phases 1 to
4)
Disposal
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3.2 Exploring the Archive Option

• Phase 1 First things First
• Confirmation of Eligibility from the DTI
• Nominated Licensed Feature is eligible for Relief
  of Obligation for the Licensees identified
• A clear definition of the Licensed Feature to be
  archived
• Agreed geographical boundaries for the Licensed
  Feature (as co-ordinates and as a map)
• Agreed time boundaries for the Licensed Feature
• Agreed list of wells associated with the Licensed
  Feature
• Agreed list of seismic surveys that the licensee
  owns and which were acquired under the Licensed
  Feature
• Agreed list of fields in the Licensed Feature (if
  any)
• Identified Licence Partners, with known current
  status and
• Licence Operator history for the Licensed
  Feature.
• An established position with respect to sharing
  the costs of archiving between Licence Partners.

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Nominated Licences

• Company Licence/Feature Blocks Wells 2D 3D
• BG P857
• BG P858
• BG P939
• BP NW Hutton
• ChevTex P940
• GDF 5 licences
• Murphy P386 73/13 1 1 0
• Murphy P387 73/14 1 0
• Murphy P388 86/17 1 1 0
• Murphy P438 16 blocks 1 1 0
• Murphy P948 38/9 10 1 1 0
• Nexen 2 to 4 licences
• Noble 2 licences
• RWE Dea 2 or 3 licences
• Statoil P949 - Tranche 2 38/14 38/15 0 1 1
• Statoil P965 - Tranche 58 158/15, 19, 20, 24
  25 0 1 0
• 159/11, 13, 16, 17, 18, 21, 22 23
• Statoil P971 - Tranche 66 219/21 to 23 0 1 0

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Murphy Candidates
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Murphy P386, P387 P388
M86-81
M73-81
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Murphy P438
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Murphy P948
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Statoil P949 Tranche 2

• P949 Tranche 2 (38/14 /15)
• 17R Award to Statoil, BG, Saga (
• Saga interest taken over by Norsk Hydro, and
  subsequently sold to Conoco
• 1997 acquired 267 km. 2D
• 1998 acquired 310 km2 3D (ST9803)
• 180 km2 in P949,
• 130 km2 in Murphys P948(as pre-trade for well)
• Relinquished in April 2003

Not on DEAL
Murphy P948
Statoil P949
ST9803
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Statoil P965 Tranche 58 (Rockall Area)

• 158/15, /19, /20, /24, /25
• 159/11, /13, /16, /17, /18, /21, /22, /23
• Statoil, ExxonMobil, Enterprise
• 1999 acquired 1041km. 2D (ST9806)
• 935km within licence
• 106km outside licence
• Grav/mag
• Geochemical study
• Relinquished April 2002

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Statoil P972 Tranche 67
Not on DEAL

• 219/26, /27, /28
• Statoil, ExxonMobil, Enterprise
• 1998 acquired 60km 2D Vibroseis
• 1999 acquired 330km2 3D (ST9805)
• 200km2 on P972
• 130km2 to the west
• Relinquished April 2002
• 4 wells under earlierlicence (Sands/Talisman)
• 219/27- 1
• 219/28- 1
• 219/28- 2 2Z

ST9805
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Statoil P971 Tranche 66

• 219/21, /22, /23
• Statoil, ExxonMobil, Enterprise (Summit joined
  2003)
• In 1998 and 1999 Shell on behalf of Tr65 and
  Tr66 acquired a large 3D survey over the Ben
  Nevis prospect. The Tr66 group paid for 399km2
  (240km2 on the licence and 159km2 to the west).
• In 1998 we also acquired 60km 2D Vibroseis data
  and 40km normal 2D data for comparison
• 2000 Site Survey and Environmental Survey close
  to the Tr66/Tr65 licence boundary.
• Relinquished April 2004
• 219/21- 1 drilled by Shell in 2003 (different
  licence)

Not on DEAL
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Statoil P971 Tranche 66
980077 (Shell)
Brendan (Shell 1997)
Shell P970
Statoil P971
Statoil P972
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Phase 1 - Traps

• Sub-optimum licensed area
• Archive the maximum
• Identity of past licensees
• Are the wells truly associated?
• Survey ownership
• Proof of association
• Provenance
• Group shoots
• Field/Processed data rights

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Seismic Spatial Relationships

• A seismic survey over a specific geographical
  area could have been obtained by several means
  and must be understood before any licence
  obligation can be assumed.
• Means of Acquisition Obligation to DTI?
• Under a Production Licence, aseither operator or
  licence partner Yes
• As open access proprietary dataunder an
  Exploration Licence Yes
• As licensed spec. seismic data No
• As courtesy data No
• As a seismic trade No
• As part of a Group Shoot ?
• Other means ?

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NW Hutton Example

• Wells
• 77 in 211/27
• 211/27- 1, 1A, 2, 3, 4, 4A, 5, 5A, 6, 7, 8, 9,
  10, 11, 11Y, 11Z
• 211/27A1 TO A52 (60 wells)
• 211/27c- 12
• How many wells are associated with 211/27a?
• 3D Surveys
• NW Hutton, 1979
• NW Hutton Tail, 1984
• 2D Surveys
• Which are associatedwith the licensedfeature?

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Broken Associations
LICENSEES
OPERATINGLICENSEE
LICENCE
BLOCK/PART-BLOCK
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Maintaining Associations
LICENSEES
LICENSEES
OPERATINGLICENSEE
LICENCE
SEISMIC SURVEY
WELL BORE
BLOCK/PART-BLOCK
SEISMIC DATA
SEISMIC DATA CATALOGUE
WELL LICENCE DATA
WELL DATA CATALOGUE
STORAGE LOCATION
STORAGE LOCATION
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3.3 Annual Archiving Cycle

• Timing Constraints
• Milestones 1 to 4 could be achieved within the
  first half of the year?
• Budget approval at year-end?
• Earliest start is January?
• Depends on scale

• Milestones
• Operator and partners reach in-principle
  agreement to archive a licensed feature that the
  DTI considers to be eligible
• Operator identifies all locations for licence
  data for each feature and calculates baseline
  costs
• Operator estimates the cost to archive cost
• Operator obtains partner consent to archive
  (subject to budget)
• 5. Operator and partners obtain budget approval
  to archive
• 6. Operator and BGS complete data review and
  final selection
• 7. Archiving implementation starts
• 8. Archiving completed

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3.3 Annual Archiving Cycle
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Meeting Agenda

• 1. Welcome Introduction
• 2. Overview
• 2.1 Why Archive
• 2.2 What is the NHDA
• 2.3 Who should archive
• 2.4 The Benefits of Archiving
• 2.5 What Data Types
• 2.6 When to Archive
• 3. How to Archive
• 3.1 Phase Overview
• 3.2 Exploring the Option
• 3.3 An Annual Cycle?
• 4. 2005/06 Programme
• 5. Next Steps

34
2005/2006 Programme

• Lead a group of licensees to a successful
  archiving conclusion (quickly)
• Improve/extend the archiving process
• Archiving fields and field data
• Seismic Redundancy
• Spec. Seismic and Group Shoots
• Simplification, not complication
• Explore feasibility of an annual archiving cycle
• Simplify phase 3 (Data Selection)
• Adapt and adopt Hutton data screening tools
• Reconcile short-term (redevelopment) and long
  term (preservation) objectives
• Improve the business case for archiving

35
Meeting Agenda

• 1. Welcome Introduction
• 2. Overview
• 2.1 Why Archive
• 2.2 What is the NHDA
• 2.3 Who should archive
• 2.4 The Benefits of Archiving
• 2.5 What Data Types
• 2.6 When to Archive
• 3. How to Archive
• 3.1 Phase Overview
• 3.2 Exploring the Option
• 3.3 An Annual Cycle?
• 4. 2005/06 Programme
• 5. Next Steps

36
5. Next Steps

• Support for Project 2?
• Support for Objectives?
• Participation rules?
• Project target dates
• First meeting date