the e&p business of edison group

17 Pages·2017·7.19 MB·English

THE E&P
BUSINESS
OF EDISON
GROUP
THE E&P
BUSINESS
OF EDISON
GROUP
EDISON AND THE E&P BUSINESS 3
ITALY AND THE MEDITERRANEAN BASIN 8
EGYPT, AN INTEGRATED BUSINESS MODEL 16
AREA OF INTEREST:
NORTHERN EUROPE 22
NORTHERN AFRICA AND THE MIDDLE EAST 26

SUSTAINABILITY 28
EDISON AND THE E&P BUSINESS
Edison SpA was founded in 1884 in Milan and is one of continental
Europe’s oldest energy companies. Today, Edison is an active
player in the supply, production and sales of electric power and
hydrocarbon natural gas and crude oil.
Nowadays, Edison, part of the EDF group, is the second largest
integrated energy company in the Italian market. It also operates
abroad in more than 10 countries with a staff of over 3,000 people.
The two main areas of business are electricity and the exploration and
production of hydrocarbons. The Upstream Division is responsible
for Edison activities in oil and natural gas exploration, development
and production. Exploration and Production (E&P) plays a key role in
the Group’s strategy of integration across the gas value chain.
Hydrocarbons will continue to be society’s most important energy
source for many years. Exploration is pivotal to have access to acreage
for discovering oil and gas. The exploration function is responsible
for renewing the resource base through exploration and appraisal,
while the reservoir development function is responsible for the
stewardship of our resources over the life of each field.
The E&P strategy is to have a balanced portfolio in the areas in
which we operate, working safely and reliably while maintaining
a focus on capital discipline and project delivery to maximize value
for our shareholders.
E&P has grown from being an Italian operator to becoming an
established international player through Edison International SpA
and local companies. Edison’s main hydrocarbon activities are in the
Mediterranean Basin in two main core areas represented by Italy
and Egypt. There are also operations in other areas of interest,
which are in Northern Europe, Northern Africa, Middle East. Mediterranean Basin
and East Med are
Edison – at the end of 2016 – holds interests in 110 licenses, of which the core areas of the
it operates 38, with a portfolio of assets in Italy, Egypt, Croatia, Group’s exploration and
Greece, Israel, Algeria, Middle East, the UK and Falklands, Norway production business.
and Denmark. E&P specifically
Geographically, the Mediterranean Basin in Southern Europe aims to continue the
and Northern Africa is the main area of the Group’s exploration development of new
and production business. The E&P business aims to continue the projects in North Africa
development of its projects in the East Med while consolidating its and in the East Med,
position in current areas of production. Edison produced 14.5MM while maintaining its
BOE of hydrocarbon in 2016 with natural gas representing 78% of position in areas of
the total production. current production
2 3
E&P ACTIVITIES 2016 HIGHLIGHTS E&P RESERVE 2016
69% of E&P reserves is natural gas
31
%
OIL
EDISON 263
MMBoe
HAS PRODUCTION
Hydrocarbons Reserves (2P)
COMING FROM
4 COUNTRIES:
110
ITALY, CROATIA, EGYPT
AND THE UNITED KINGDOM. Production and exploration
licenses 69
%
34 44 2 2 7 15
% % % % % %
GAS
EGYPT ITALY CROATIA UK ALGERIA NORWAY
39
EDISON E&P HOLDS
KBoe/day
47
EXPLORATION LICENSES, Hydrocarbons Daily Production
19
OF WHICH ARE OPERATED;
63 14,3
PRODUCTION LICENSES,
MMBoe/year
19
OF WHICH ARE OPERATED.
Hydrocarbons Annual Production
E&P PRODUCTION 2016
Natural gas represents 78% of total production
22
%
OIL
78
%
53 32 6 9
% % % %
EGYPT ITALY CROATIA UK GAS
4 5
OUR CORE REGIONS Kilometers
0 62,5 125 250 375 500
MEDITERRANEAN BASIN NORWAY
Italy, Croatia, Egypt, Greece
AREA OF INTEREST
Norway and Denmark,
United Kingdom and Falkland Islands,
Northern Africa, Middle East
UK
DENMARK
UK
FALKLAND
C O C E AN ISLANDS CROATIA
T I
N
A
L
T
A

H
T
U ITALY
O
S
GREECE
ITALY
IRAN
ISRAEL

kilometers
0 62,5 125 259 375 500 ME
DI
0 62,5 125 259 375 500kilometers TERRANEAN B A S I N
ALGERIA
PRODUCTION EXPLORATION STUDY PHASE
EGYPT
MAIN AREAS OF PRODUCTION
EGYPT
AREAS OF INTEREST IN NORTHERN EUROPE,
NORTHERN AFRICA, MIDDLE EAST
6 7
THE HISTORICAL PRESENCE IN ITALY
VEGA FIELD
m
0
SINCE THE FIFTIES, Since the early 1950s, Edison has constantly played a leading role in Existing FSO 2
the Italian energy sector with discoveries of major importance: the
EDISON HAS
225 m
gas field at Cellino in 1958, Portocannone in 1963, the discovery of
OPERATED WITH
the Vega oilfield in the Sicilian channel in 1981 and the takeover of
A CONSTANT Rospo and Sarago oilfields in the Adriatic Sea in 1998. N
COMMITMENT IN
I
The Italian activities are managed by the Milan office in cooperation PRODUCTION S
THE ACTIVITIES VEGA A
with two regional operations offices: the Pescara district, which
A
OF EXPLORATION
manages activities in the Adriatic offshore and Northern Italy, and DILUENT
AND PRODUCTION, the Siracusa district, which manages the Sicilian channel operations. B
In Italy, Edison is active in the exploration and production of natural
ALWAYS TAKING A
gas and crude oil with 49 concessions and 11 exploration permits. VEGA A
LEADING ROLE IN THE N
Most of Edison’s gas production in Italy comes from the two large gas DECK
COUNTRY’S ENERGY fields of Daria and Clara (both operated by Eni). The oil production m Weight 7200T A
4 Width 35M
INDUSTRY comes from the operated offshore fields of Vega – located in Sicily 2
1
– and Rospo Mare – located in the Adriatic Sea – and the non- Length 60M E
Height 40M
operated onshore field of Tresauro in Sicily (Enimed). In 2016, Edison
N
produced 12,624 KBoe/day in Italy. S
L
L JACKET
E A
W 8 Legs
Major investments have recently been put in place to replace the
Weight 12000T
R
two FSO (Floating Storage Offloading) vessels where the oil is stored
Width 50M
in order to apply the best practices in the industry and comply with
Length 70M R
the latest environmental regulations. In the coming years, Edison
Height 140M
E
will complete an investment plan in Italy to optimize and maximize
oil production and develop new gas resources. T
I
D
ITALIAN FIELD PRODUCTION E
Manned 24/7 surveillance and monitoring M
Vega
The Vega field is located in the Sicilian Channel, 20 km south of

Pozzallo (RG), Italy. In production since 1987, the field is operated D
by Edison with a 60% working interest (Eni is the partner with 40%).
The Vega platform is the largest in Italy and was developed with 24 N
wells and located in 124 meters of water depth. It is designed to Santa Maria a Mare
A
process 60,000 barrels of oil per day and is supported by a floating This oil field was discovered in 1974 and started operation in
storage and offloading tanker (Leonis) with a capacity of 110,000 September 1975. It is located between the towns of Porto Sant’Elpidio
tons to temporarily store production. The crude oil is transported and Porto San Giorgio. It’s an offshore field with an extension to the Y
from the Leonis to refineries by tanker shuttles. adjacent shore Sarago Mare. L
The field was discovered in 1979 and currently has two producing
A
Rospo Mare wells. This oil field is located in the north of the B.C7.LF concession
The Rospo Mare offshore field is located in the Adriatic Sea, about area, about 4 km off the coast between the towns of Porto Civitanova T
20 km off the Abruzzo coast (Italy), in 80 meters of water depth. and Porto Sant’Elpidio in central Italy, at 13 m of water depth. I
8 9
Portocannone N
The Portocannone field was discovered in 1963 with a well and was
I
subsequently developed by drilling 28 additional wells. Production
S
started in June 1966 with two wells; 25 additional wells were
A
added in the following years. The last well was drilled and put into
production in 1992.
B
Fauzia
N
The field is located in the Adriatic Sea, 40 km offshore from Pesaro,
in an intensely developed area. Fauzia is an unmanned platform,
A
in 70 meters of water depth, with 2 wells and 15 km of sealine
connections to existing facilities. The platform was commissioned in E
September 2014.
N
Clara North West / Clara South East
A
The field is located in the Adriatic Sea, 48 km offshore from Ancona.
Clara North West is a new unmanned platform in 77 meters of water R
depth, with 4 wells and the 13 km of sealine connections to existing
R
facilities. The first gas was extracted in 2016. Clara South East is
under development with a new unmanned platform in 78 meters E
of water depth. Two wells are being drilled and 4.1 km of sealine
T
connections to existing facilities are being installed.
I
D
E
M

D
N
A
Accettura
This gas field is located in the Matera district in southern Italy. The
Y
field was discovered in 1967. Production started in 1973 with 4
wells. A fifth one was added in 1975. The gas produced is collected L
by a dedicated flow line network, which delivers the gas to the A
Edison treatment plant in Garaguso where the gas is compressed
T
and measured.
I
San Giorgio Mare
The field is located offshore in the Adriatic Sea, about 10 km off the
town of Porto San Giorgio in central Italy, at a 20 m water depth.
The field was discovered in 1968, and production started in 1973.
In Italy, Edison is active Santo Stefano Mare
in the exploration This field is adjacent to the Adriatic coastline. The field was
and production of discovered in 1967. Production – which started in 1969 – currently
hydrocarbons with 49 takes place through 7 wells located on 5 platforms. Only one well
production licenses and 11 is currently active. Three different sea lines connect the platforms to
exploration licenses the mainland facility which collects all the methane that is extracted.
10 11
IZABELA 50% 38,28%
Edina Eni
IZABELA 50% ROSPO 61,72%
Zagreb Edison Edison
Milan
CROATIA

N
49% 40% SI
Eni
Edison
A
60
CLARA CLARA 51% VEGA % B
Edison
Eni
ITALY A
D N
R
I
T A
Y TI
R C SE A
R A
H Pescara
E E
N
I
A N
N

S
E A
A
Edison Operator
R
PRODUCTION LICENCES
ROSPO EXPLORATION LICENCES
R
E
T
Edison Partner
A GREECE
E PRODUCTION LICENCES I
S EXPLORATION LICENCES D

N
A
I RELINQUISHED E
N
HEADQUARTERS
O
I M

M D
E
D
I
T M N
E
R Siracusa
E
R D A
A
I
N T

E E
Y
A R
R
N L
A
VEGA N
S E A
E A
N
kilometers A SEA T
0 15 30 60 90 120 150
I
12 13
N
I
S
A
B

N
A
E
N
A
R
R
E
T
I
D
E
GREECE
CROATIA M
Edison has the offshore exploration license of Patraikos Gulf (West)
The asset based in Croatia is operated by Edina (Edison International
in Greece in an area of the Eastern Ionian Sea between the Greek D
50%, INA 50%) and consists of two gas fields, Izabela and Irena,
mainland and the islands of Kefallinia and Ithaki. It was awarded
located in the northern part of the Adriatic Sea, about 50 km NW
N
on October 3, 2014 and the exploration rights are held by Hellenic
of Pula, in water depth of around 37 m. The Izabela and Irena fields
Petroleum West Patraikos Exploration & Production of Hydrocarbons
were discovered in 2004 and 2006 respectively. The development A
SA (50%, Operator) and Edison International SpA (50%).
plan was made for the Izabela field, which was completed in 2010.
The main activities included in the approved work program are 3D
Two platforms have been installed, Izabela South and North, and
Y
seismic acquisition and processing (800 km2); 2D seismic acquisition
5 wells have been drilled and put on stream. Gas production is
and processing (300 km); 2D legacy seismic reprocessing (1500 km); L
exported via purposefully built and existing infrastructure both to
and G&G studies. The proceptivity is mainly linked to structural or Italy and Croatia. Production started in July 2014 with a flow rate of A
combined (structural/stratigraphic) plays. The Mesozoic to Paleogene
approximately 2,300 BOED.
T
carbonates are supposed to be the most promising reservoirs and the
main source rocks are envisaged to be of Jurassic and Cretaceous age. I
14 15
EGYPT, AN INTEGRATED
BUSINESS MODEL
EDISON HAS HAD Edison has been present in Egypt since the mid-1990s, actively
participating in the oil and gas exploration and production sector
A SIGNIFICANT
through its affiliate, Edison International. Following a successful
BUSINESS
exploration campaign in joint venture with BG, Edison became one
DEVELOPMENT of the major gas players in the country with the development of the
IN EGYPT SINCE first LNG train of Idku in 2001.
1995. NOW EDISON
In 2002, Edison decided to reduce its exposure in Egypt and sold
HAS 3 OPERATED
to Petronas its integrated E&P and LNG activity. In 2009, Edison re-
PRODUCTION BLOCKS, consolidated its position in the gas sector by acquiring the Abu Qir
concession and added additional new exploration licenses investing
6 EXPLORATIONS
to date (since 2009) close to $3B.
LICENSES AND
The current portfolio includes 9 concessions, of which 6 are operated
A DEVELOPING by Edison, deploying almost 1000 people directly and through its joint
PROJECT OF A ventures. Edison owns 3 production leases and 6 exploration licenses
distributed in all the proven petroleum provinces in Egypt (i.e. Nile
COMBINED-CYCLE
Delta, East Mediterranean offshore, Western Desert and Gulf of Suez).
POWER PLANT, WHICH
With 3 operated exploration blocks in East Mediterranean, Edison has
WILL BE THE FIRST consolidated its dominant position in this new exploration area with a
world-class gas potential confirmed by the recently announced giant
MERCHANT POWER
gas discovery of Zohr (30TCF) in Egypt and the other field previously
PLANT IN EGYPT
discovered in adjacent areas in Israel and Cyprus waters (Tamar, 10
TCF; Leviathan, 22 TCF; Aphrodite 4.5 TCF). Seismic activities on these blocks have been completed with the aim to evaluate the potential
and plan future drilling activities. Edison’s knowledge and position
in the area is also sustained by the participation and operatorship of
one exploration block in Israeli waters.
It is worth mentioning that in 2000 Edison, in joint venture with
Bechtel, participated in the development of the first gas-fired IPP of
Egypt (Sidi Krir 2x340 MW BOOT), which was then sold in 2002. Today,
Edison is working with a local partner to develop a 200MW combined
cycle power plant in vicinity to its Abu Qir onshore receiving gas
terminal. This plant is leveraging Edison’s expertise as well as the
ongoing liberalization of Egypt’s electricity and gas sectors. Once
completed, this will be the first merchant power plant in Egypt.
T
PRODUCTION OF HYDROCARBONS
P
Edison holds a 100% operated participating interest in the Abu Qir Y
concession in the Nile Delta offshore. It also has a 20% participating
G
interest in the Rosetta offshore production license. Edison also
operates with a 60% working interest in the West Wadi El Rayan E
concession.
16 17