Abstract

The rise in global energy demand is pushing major resource holders to urgently develop and monetise their hydrocarbon reserves in the context of evermore challenging scenarios. This paper will describe how this can be done in a way that optimises recovery and creates most value.

It will highlight how, as we extend these physical and commercial frontiers, it is increasingly important to marry new thinking that builds on, and integrates in new ways, established technologies and expertise with a strong culture of ‘best in class’ project delivery. This is all in pursuit of concepts, technologies and techniques that lead to lower development and operating costs in a safe and socially responsible manner.

To illustrate how innovative technology, engineering, commercial acumen, and partnerships unlock value from gas plays, the paper will focus primarily on Floating LNG (FLNG) but will also touch on key elements of a Gas to Liquids (GTL) project to reinforce the argument.

Monetising gas from fields far offshore whilst removing the need for long-distance pipelines and extensive onshore infrastructure is an attractive proposition in theory, but presents immense practical challenges. Potential solutions will be discussed in the context of Shell's FLNG concept for the Prelude gas field offshore Australia. The speaker will highlight how material gains would be expected to accrue in the design and construction phases of the FLNG solution, thanks to the repeatability.

On the GTL front, the paper will briefly discuss how this solution unlocks the opportunity to arbitrage between the oil price and that of natural gas, creating increased commercial viability of gas molecules. The focus of this section of the presentation will be on the necessary alignment in innovative solutions and world class project delivery performance required to create value through this channel.

To conclude, the paper will re-emphasise how innovation and technology, underpinned by world-class project execution, are essential in creating development optionality and thus unlocking optimal monetisation of the resources.

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