Global Offshore Development: Opportunities and Challenges

Panel moderated by Nick Coleman, S&P Global Platts

If as an industry, we don’t make a success of the future projects, we’re going to have a hard time justifying future investment in deepwater. And for this, we need to be cognizant of the fact that there is limited spare capacity in the industry. And the only way to address the future is to be more standardized.

Bruno Chabas, CEO, SBM Offshore

Given the recent drop in oil prices, is there still an attraction to deepwater, and if so, is it still worth the effort?

Mr. Chabas said the deepwater industry has been prepared for moments like this. Since 2014, the industry has focused on decreasing development time and being more proactive to keep up. Mr. Chitangueleca added that he thinks it boils down to flexibility, contractual and legal, and to having a more streamlined approval process. Mr. El Bakly shared that most new discoveries are in deepwater, so he believes it is worth the effort—but the challenge is to find ways to improve economic viability.

Is old-fashioned diplomacy still needed to get deepwater products going?

Mr. Stover said that, although customer and business relationships may be in place, you must engage with governments early to get the support needed to move forward—that getting everybody’s objectives and needs on the table upfront is the key. Although some might call it diplomacy, he just calls it being a good partner to everyone he’s working with.

There is always a story for local content, creating jobs and local wealth. How do you see that that dynamic changing?

Mr. Chabas said the need to develop a field quickly and bring wealth to the nation was a dilemma for which SBM views standardization as the solution. Standardized products make localized training easier, and helps with development time and economics.

Regarding energy transition and the pressure to reduce emissions, is there a difference between a mature field like the North Sea versus Luanda for example? Is it a primary or secondary consideration?

Mr. Chitangueleca said that for a long time, they weren’t banning flaring because they were only interested in oil, but they’ve since realized it was wasting resources. Now they rely on best practices from European IOCs who are committed to lower carbon emissions, and have solutions built into their proposals. For its own part, Angola is now targeting zero flaring. It already has one LNG plant, and is starting a big gas-to-power project. It also approves projects based on how they will manage gas, for which there are two options: injected to increase recovery, or as LNG.

Gas-to power is a key focus in Egypt too, said Mr. El Bakly, as part of its work to control carbon emissions, along with improving the efficiency of its power generation. He said energy transition is part of the country’s daily agenda now.

Global offshore panel

Bruno Chabas

Bruno Chabas joined SBM Offshore as Chief Operating Officer and Member of the Management Board in May 2011 and became CEO in January 2012.

Prior to joining, he worked for 18 years with Acergy S.A. (now Subsea 7 SA). From November 2002 until January 2011, he served as the Chief Operating Officer of Acergy S.A., responsible for all the day...

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Belarmino Chitangueleca

BSc in Engineering Mining , Agostinho Neto University (Angola), and MSc in Petroleum Engineering from Herriot -Watt University, UK. Over 30 years working in oil and gas sector resuming in:

Extensive experience on Oil and Gas Project Management at nacional and international levels
Drilling, reservoir and production operatio...

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Nick Coleman

An editor and analyst of two decades’ experience, Nick writes and speaks on the oil industry and oil markets, with a focus on Europe, the Middle East, Russia and the Caspian. Nick joined S&P Global Platts in 2014 and is a regular contributor to Platts’ online and print publications such as Oilgram News.

Nick has appeared on the BBC...

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Osama El Bakly

Dave Stover

Dave Stover brings 40 years of oil and gas industry experience to his current role as Chairman and Chief Executive Officer of Noble Energy – a member of the S&P 500 and one of the nation's leading independent energy companies. He was appointed Chairman of the Board in April 2015, CEO in October 2014 and elected to the board of directors in A...

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Global Offshore Development: Opportunities and Challenges

Is old-fashioned diplomacy still needed to get deepwater products going?

There is always a story for local content, creating jobs and local wealth. How do you see that that dynamic changing?

Regarding energy transition and the pressure to reduce emissions, is there a difference between a mature field like the North Sea versus Luanda for example? Is it a primary or secondary consideration?

Panelists

Bruno Chabas

Belarmino Chitangueleca

Nick Coleman

Osama El Bakly

Dave Stover