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Released December 12, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--BP plc (NYSE:BP) (London, England) is wrapping up a highly productive 2017, as the Oil & Gas Industry leader puts the finishing touches on a series of investment-heavy projects that represent its shift from oil toward natural gas development--and next year's slate of project completions depends just as much on the cheaper, cleaner-burning fuel. Industrial Info is tracking more than $35 billion in active projects involving BP, including nearly $11.5 billion worth that are set to finish construction in 2018.
In a media presentation last week in Houston, BP executives noted that the company's portfolio averaged 60% oil for many years, but was expected to be 60% natural gas by 2020. BP completed six major projects on five continents this year, only one of which--an expansion of the Quad 204 oilfield in the North Sea--is focused on extracting crude oil. BP is at work on a years-long, $130 million second phase of the Schiehallion Oil & Natural Gas Offshore Field Redevelopment Project in Quad 204, in which 12 more wells are expected to be drilled to explore an area with an estimated 600 million barrels of recoverable oil. For more information, see Industrial Info's project report.
BP also expects to finish up another key project in its shift toward natural gas before the end of 2017: the Zohr development offshore Egypt (in which BP has a 10% stake), which will include a $600 million gas field development that will drill six wells to produce 1.4 billion standard cubic feet per day; the $200 million first phase of an onshore processing plant; and a $400 million natural gas pipeline and a $300 million monoethylene glycol pipeline, both connecting the field to the processing plant. For more information, see Industrial Info's project reports on the gas field, processing plant, gas pipeline and monoethylene glycol pipeline.
Early next year, BP expects to wrap up one of its highest-valued projects worldwide: the $3.5 billion crude oil and natural gas production platform in the Clair Ridge Field of the North Sea. It will include two bridge-linked platforms--one for drilling and production, another for quarters and utilities. For more information, see Industrial Info's project report and September 15, 2017, article - BP and Shell Commit to North Sea Investment.
Most of the other major completions set for 2018 focus fully on natural gas development. In the Mediterranean Sea offshore Egypt, the Giza and Atoll fields are ripe for exploration, including a $40 million field development, $40 million production platform, $50 million export pipeline and $38 million captive power station in Giza, which will drill four wells to produce 1.2 billion cubic feet per day of gas, to be shipped 51 kilometers from a platform powered by the 27.2-megawatt (MW) station. For more information, see Industrial Info's project reports on the field, platform, pipeline and power station.
In the Atoll field, BP is at work on a $10 million field development, a $25 million export pipeline and $20 million worth of subsea tiebacks and facilities, which will drill two wells to produce 100 million standard cubic feet per day of gas, to be shipped 10 kilometers and supported by subsea trees structures, wellheads, three manifolds and other installations. For more information, see Industrial Info's project reports on the field, pipeline and subsea equipment.
Later in 2018, BP expects to complete much of its work at the Shah Deniz II development in the Caspian Sea, offshore Azerbaijan. Under construction since early 2015, the project includes $1.5 billion in jackets, $1.25 billion in accommodation quarters and $900 million in topsides for the drilling platform, which is expected to have an annual production capacity of 24 billion cubic meters of natural gas and 150,000 barrels of gas condensates from the field's 30 trillion to 40 trillion cubic feet of estimated reserves. For more information, see Industrial Info's project reports on the jackets, accommodation quarters and topsides.
In an earnings-related conference call at the end of October, BP executives said the company expects to maintain organic capital expenditures of between $15 billion and $17 billion each year through 2021, with 2018 at the lower end of the range, assuming oil prices of roughly $50 per barrel.
During last week's media presentation, BP executives pointed to the $9 billion Mad Dog 2 Crude Oil Production Platform in the Gulf of Mexico as an example of its renewed fiscal discipline. The project, which is expected to produce 140,000 barrels per day (BBL/d) from 14 wells, had been estimated in 2012 to cost as much as $20 billion. Other companies involved include Chevron Corporation (NYSE:CVX) (San Ramon, California) and BHP Billiton plc (NYSE:BHP) (Melbourne, Australia). For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
In a media presentation last week in Houston, BP executives noted that the company's portfolio averaged 60% oil for many years, but was expected to be 60% natural gas by 2020. BP completed six major projects on five continents this year, only one of which--an expansion of the Quad 204 oilfield in the North Sea--is focused on extracting crude oil. BP is at work on a years-long, $130 million second phase of the Schiehallion Oil & Natural Gas Offshore Field Redevelopment Project in Quad 204, in which 12 more wells are expected to be drilled to explore an area with an estimated 600 million barrels of recoverable oil. For more information, see Industrial Info's project report.
BP also expects to finish up another key project in its shift toward natural gas before the end of 2017: the Zohr development offshore Egypt (in which BP has a 10% stake), which will include a $600 million gas field development that will drill six wells to produce 1.4 billion standard cubic feet per day; the $200 million first phase of an onshore processing plant; and a $400 million natural gas pipeline and a $300 million monoethylene glycol pipeline, both connecting the field to the processing plant. For more information, see Industrial Info's project reports on the gas field, processing plant, gas pipeline and monoethylene glycol pipeline.
Early next year, BP expects to wrap up one of its highest-valued projects worldwide: the $3.5 billion crude oil and natural gas production platform in the Clair Ridge Field of the North Sea. It will include two bridge-linked platforms--one for drilling and production, another for quarters and utilities. For more information, see Industrial Info's project report and September 15, 2017, article - BP and Shell Commit to North Sea Investment.
Most of the other major completions set for 2018 focus fully on natural gas development. In the Mediterranean Sea offshore Egypt, the Giza and Atoll fields are ripe for exploration, including a $40 million field development, $40 million production platform, $50 million export pipeline and $38 million captive power station in Giza, which will drill four wells to produce 1.2 billion cubic feet per day of gas, to be shipped 51 kilometers from a platform powered by the 27.2-megawatt (MW) station. For more information, see Industrial Info's project reports on the field, platform, pipeline and power station.
In the Atoll field, BP is at work on a $10 million field development, a $25 million export pipeline and $20 million worth of subsea tiebacks and facilities, which will drill two wells to produce 100 million standard cubic feet per day of gas, to be shipped 10 kilometers and supported by subsea trees structures, wellheads, three manifolds and other installations. For more information, see Industrial Info's project reports on the field, pipeline and subsea equipment.
Later in 2018, BP expects to complete much of its work at the Shah Deniz II development in the Caspian Sea, offshore Azerbaijan. Under construction since early 2015, the project includes $1.5 billion in jackets, $1.25 billion in accommodation quarters and $900 million in topsides for the drilling platform, which is expected to have an annual production capacity of 24 billion cubic meters of natural gas and 150,000 barrels of gas condensates from the field's 30 trillion to 40 trillion cubic feet of estimated reserves. For more information, see Industrial Info's project reports on the jackets, accommodation quarters and topsides.
In an earnings-related conference call at the end of October, BP executives said the company expects to maintain organic capital expenditures of between $15 billion and $17 billion each year through 2021, with 2018 at the lower end of the range, assuming oil prices of roughly $50 per barrel.
During last week's media presentation, BP executives pointed to the $9 billion Mad Dog 2 Crude Oil Production Platform in the Gulf of Mexico as an example of its renewed fiscal discipline. The project, which is expected to produce 140,000 barrels per day (BBL/d) from 14 wells, had been estimated in 2012 to cost as much as $20 billion. Other companies involved include Chevron Corporation (NYSE:CVX) (San Ramon, California) and BHP Billiton plc (NYSE:BHP) (Melbourne, Australia). For more information, see Industrial Info's project report.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
