10 November 2017
Where do you see the greatest opportunity in today’s global oil and gas markets and how are you positioned to capture this opportunity?
The fall in commodity prices has required the industry to challenge and reduce the costs of every aspect of the energy sector. While some of that reduction has to come from basic changes in equipment costs there is a real opportunity from working differently by taking an objective look at why delays and cost growth has been a fact of life. We are encouraged by how constructively the service sector has responded to new commercial structures in the current commodity price environment.
A simple example is our approach to the subsea equipment for the Cheviot development. Rather than have contractors bid to a rigorously defined company specification, that would increase the costs and time of a tendering process, we provided a functional specification and had contractors provide solutions based on their standard equipment. We also want contractors as part of the integration of services to limit the cost growth and time delays that mostly result from misalignment at the technical interface of project services. A little more work for Alpha Petroleum in comparing bids but a simpler, quicker and cheaper solution that also better aligns and integrates the contractors into the project. It also requires Alpha Petroleum to fully understand the aspects of the project where it can add most value.
What are the strategic priorities for your company in the next 12 months?
Alpha Petroleum is on course to get the Cheviot oil field sanctioned in the second quarter of 2017 and that will be our main focus. A simplified development with a re-deployed FPSO will result in first oil by the middle of 2019 and a plateau rate of 30,000 bopd that is economically robust at current oil prices. We believe the project will show how the industry can work together in the low oil price environment to economically develop new oil and gas fields.
We also see opportunities to invest more in the remainder of our portfolio and are exploring with our partners and infrastructure providers how best to fully exploit the additional potential.
What takeaways would you like attendees at World Oil & Gas Week to go home with regarding your company and your work?
Alpha Petroleum is an experienced, forward looking development and production Operator that has the flexibility in its thinking and approach to be successful in the current market conditions. We understand that success will be based on solutions that may be different from historical processes or precedent. However, the greater involvement of all stakeholders and service providers in simplifying and aligning project definition will lead to more projects being sanctioned.
About Andy Crouch
Andy has over 30 years' international oil and gas industry experience acquired through senior management positions in operating companies and running one of the preeminent global advisory firms.