THIS is an interesting time to be actively progressing an upstream oil and gas project given the downturn in the market with depressed oil prices, says Twinza Oil Ltd managing director Huw Evans.
Twinza is the operator of first off-shore petroleum development in Gulf.
On why Tiwnza had pursued the development of the project when the economy was being suppressed by the low oil prices, Evans said Twinza had been counter-cyclical and had challenged the way in which the business was conducted at higher oil prices.
“We reacted to the oil price decline by making a complete re-assessment of our development plans for the Pasca project and consequently further simplified our development concept focusing on what was becoming available in the downturn. Our approach include optimising hydrocarbon processing efficiency, taking advantage of increased availabilities in equipment, yard space and service contractor appetite,” he said.
“Our approach has brought to the cusp of development a previously uneconomic field which has been stranded for 50 years.
“We have responded quickly to rapidly changing commercial realities by developing an integrated and collaborative culture.”
He said there were many examples to reflect the company’s approach. They include:
- Numerous adjustments to the development concepts (including innovation in facility and process design) resulting in aapital large cost reductions;
- Embracing standardisation and what we call appropriate design and scope which has a laser focus on the application of pre-existing industrial equipment standards;
- Introducing significant changes to the supply chain and logistics required for work in remote offshore locations – this enabled us to significantly reduce our drilling costs and increase the amount of evaluation we will do with the current Pasca A4 well;
- Commercial focus on cost efficiency such as “break-even” costs;
- Transitioning to the digitalisation of our entire business, including our offshore processing facilities to measure performance, efficiency, schedule maintenance, and ensuring safety; and,
- Application of data analytics to our entire business, e.g. seismic, drilling, production performance and offtake.