Print this pageA BG Perspective of Giant Fields, Past Present and Future
According to a 2009 WoodMac report* 80 Giant oil and gas discoveries (>500mmboe) have been made since 1998. BG has been an equity partner in eleven giant discoveries in the period from 1997-2008. Of these, six are within the top fifteen largest discoveries made since 1997 by IOCs. These giant discoveries are located over a wide geographical area and incorporate plays from Devonian to Pliocene in age, from onshore to water depths >2000m. Brazil has provided the most recent success, with the Santos Basin pre-salt discoveries.
BG giant discoveries can be sub-divided into 4 market-led categories based on entry strategies:
Gas export e.g. West Delta Deep LNG, Egypt; Previously inaccessible acreage e.g. Kashagan; Frontier acreage e.g. Tupi; perseverance with new plays in mature basins e.g. Buzzard, North Sea.
Whilst initial positioning is clearly important, the basic principles of regional geology, rigorous technical decision making and being prepared to stay the course have all served BG well.
Where do we look for the next generation of giants? These will continue to come from further improvements in exploration or development technologies, or access to new areas where existing techniques have not been applied. There will, however, be an increased input from unconventional resources, where estimates of global yet-to-find exceed that of conventional resources. Gas supply from unconventional resources has grown rapidly and the reserves associated with these are likely to compete with those from conventional discoveries in the next decade.
Examples of unconventional gas giant fields include: Barnett shale gas play (USA) recoverable volumes >30 Tcf; Pinedale anticline tight gas sands play (USA) has an estimated resource of 27 Tcf: Surat Basin CSG (Australia) multi-Tcf potential now being unlocked by a market-led strategy linking CSG acreage to Asia Pacific LNG, a significant future business for BG.
And how does BG aim to continue its search for new giants? Giant discoveries are few and far between and require a large and varied portfolio to deliver. Constructing this portfolio will require adding both conventional and unconventional plays via a continuation of BG’s successful market led entry strategies. However, the core of this portfolio will be dominated by conventional giant field exploration, where there are few more technically attractive countries than Brazil.
*Leading elephant-hunters of the decade - Wood Mackenzie Exploration Service January 2009
AAPG Search and Discover Article #90100©2009 AAPG International Conference and Exhibition 15-18 November 2009, Rio de Janeiro, Brazil