Project execution and operation of the worlds first FDPSO Azurite

- Claes W. Olsen, Prosafe Production

Content

Introduction

Project overview

FDPSO specifics

Project execution

Operations

Lessons learned

The future

Summary

Company Profile

One of the worlds leading FPSO contractors

Fleet of 11 units, including

Large Gas FPSO (ca 20,000T topside)

Worlds first FDPSO

Harsh weather disconnectable FPSO

Two FSOs

VLCC conversion candidate

Solid project execution and operational

experience built over more than 20 years

Proven proprietary turret/swivel mooring

technologies, including dis-connectable turret

Excellent operational uptime (>99%)

Excellent HSE records

Cost efficiency, innovative solutions and sustainable growth

3

Global Presence
- Vessels
- Offices

Amsterdam

FSO ENDEAVOR
(India)
Cyprus

FSO MADURA JAYA

(Indonesia)

Houston

FPSO ESPOIR IVOIRIEN

(Cote D'Ivoire)

Mumbai
Abidjan

Lagos
Singapore

FPSO CIDADE DE SAO MATEUS

(Brazil)

Pointe Noire
Vittoria
Rio de Janeiro

FPSO NINGALOO VISION

(Australia)

FPSO UMUROA
(New Zealand)
Perth

FPSO POLVO
(Brazil)

New Plymouth

FPSO ABO
(Nigeria)

FPSO PETROLEO NAUTIPA

(Gabon)

FDPSO AZURITE
(Congo)

Safety First Always

Lost Time Incident Frequency

against Million Man-hours

1,6

1,4

1,2

0,8

0,6

0,4

0,2

2006

2007

2008

2009

Prosafe Production Project Safety Statistics 2006 - 2009

The Azurite Field Development delivered without Lost Time Injuries !

5

FDPSO Azurite - A Success

Murphy Oil Corporations President and CEO, David M. Wood:

The Azurite project marks an innovative approach to
minimizing the cost and maximizing the value of a
deepwater development. Production from the field will
continue to ramp up for the remainder of the year as
additional wells are brought on stream.
Source: Press Release , 10 August 2009

Key Project Milestones

Concept definition late 2006

Long lead items placed early 2007

Left shipyard January 2009

Ready for drilling April 2009

First oil August 2009

Fast track project execution in a heated and challenging market environment

FDPSO Specifics

260,000 dwt VLCC conversion

Oil Production:

40,000 BOPD

Gas production:

75 mmscfd

Water injection:

60,000 BWPD

Oil storage:

1.4 mmbbls

Accommodation:

136 POB

12 line active spread mooring solution

Modular drilling derrick capacity:

1,250kip hook load

Top Drive: 500T x 1,150HP

Simultaneous drilling, production and water injection
8

FDPSO Design Process

Prosafe Production

Murphy Oil

Experience

Nabors Drilling

Innovation

Cooperation

Well
intervention

Production

&
Drilling
Integrated
FDPSO
Concept

A unique concept based on proven technology and entrepreneurship

9

Strong Project Partners

Murphy Oil supported by Doris and WJM
- operatorship, functional specifications and follow-up

Keppel Shipyard, Benoi

- Vessel R&LE and conversion + drilling modules integration

Nabors Drilling
- Modular drilling equipment set + drilling services

Kencana, Malaysia
- Provision of topside modules

Det Norske Veritas (DNV)

- Classification and design reviews

Licence partners PA Resources and Socit Nationale des Ptroles du Congo

10

Offshore Installation Phase

Field located in 1,400 m of water depth

80 nautical miles offshore

12 line active spread mooring system

3 flexible risers (2 prod + 1 WI) connected

to subsea manifold

Good planning and close co-operation

between involved parties

Offshore hook-up / installation

management by Prosafe Production
Installation campaign offshore Congo done in record time of 8 days
11

Field Layout

12

Simultaneous Operations

Simultaneous drilling and production

Drilling services by Nabors

All other operations done by Prosafe Production

Coherent HSE philosophy

Operations and maintenance managers in country

Training program for national employees

All support activities managed locally

A strong in-country presence ensuring safe and efficient operations

13

Lessons Learned

The general challenges of a heated market

Interpretation of class rules for new concepts

Optimization of drilling and FPSO yard

integration work

Definition of interfaces drilling/production

Freeze of conceptual designs

Close co-operation between Operations and

Project teams a key to success

Communication over time zones

Optimizations will be realized during the next FDPSO project
14

FPSO - Demand

Pipeline of floating production

projects continue to grow

Drivers for F(D)PSO concept

remains intact

Leading indicators point to

strong long-term demand

Supply side decreasing

No. of FPU projects in planning stage

170

134

141

143

Jul-08

Nov-08

156

160

Mar-09

Jul-09

119

Nov-07

Mar-08

Nov-09

Source: IMA

Bright long-term outlook

15

Leading Indicators
Brent oil price high for several years

Oil price has remained

high for several years
(except of a few
months late 2008/early
2009)

Deepwater drilling
activity is set to remain
high for several years
to come

Deepwater drillers high activity level expected

180

Available

160

Contracted

140
50

120
Rig years

100

97

110

132

80
60

Positive leading indicators

81

40

97

112

101

89

74

62

20

40

0
2009

2010

2011

2012

2013

Source: First Securities

2014

2015

16

FDPSO Drivers
Implications

Main Challenges

Deep
waters

Increased
exploration
in difficult
areas

High cost for production and

drilling units

FDPSO Benefits?

Yes

Lack of infrastructure
Remote
areas

Marginal
fields

High cost for mobilization of

drilling rigs

Short lifetime of fields and need

of well intervention capabilities

Yes

Yes

Marginal
fields

Needs for early production and extended life of fields are important drivers

17

Future Drilling Market

18

18

Commercial Benefits of FDPSO

Dayrate of FDPSO vs. Drilling Unit and FPSO

Lower combined cost of drilling and

production*

Accelerated production

Drilling rig + FPSO

450,000
Dayrate in USD per day

USD 300k/day vs. USD 470k/day

(FDPSO)
(Drilling rig + FPSO)

500,000

400,000
350,000
300,000
FDPSO

250,000
200,000

Topside drilling rig removed from FDPSO

150,000
100,000
50,000

FDPSO production from 1st well

FPSO production from arrival of FPSO

0
Arrival of FPSO

Sample Production Profile

FDPSO vs. Drilling Unit + FPSO

60,000

* Indicative rates for 1,500 m drilling rig, single hull

FPSO with 1.5 mill bbls storage in benign area, 50,000
bopd, 50,000 b/d water inj., Spread moored, 15 year life

50,000

Oil Production b/d

Lower cost of logistics and

consumables

Time

Completion of drilling

40,000
30,000
FDPSO
Drilling Unit + FPSO

20,000
10,000

Benefit from accelerated production depends

on timing of arrival of FPSO

0
0

20

40

60
Months

80

19

100

19

FDPSO Competitiveness
Benefits from fast tracking the field development
Availability and cost of drilling rigs
The length of the drilling program, and need for future wells
The number of wells that can be drilled with active spread mooring
The complexity of the wells and need for future well intervention
Benefits from simultaneous drilling and production

Benefits from a phased field development (EWT period, EPS etc)

Re-deployment on future fields
The environmental conditions at the field
Competitiveness is determined by a range of factors
20

Offering a Range of Services

FDPSO design and project execution
Co-operation with modular drilling package providers
Delivery of different sizes modular rigs
- Well intervention

- Well completions, in-fill drilling/side-tracks

- Full drilling capacity

Simultaneous operations
- Including drilling and well services

Split of responsibilities dependant upon client and contractor team

- Experience and capabilities
Prosafe Production will expand the range of FDPSO services
21

Summary
A unique FDPSO successfully delivered

Exceptional safety performance

World class operational performance

Cost efficient solution

A Catalyst for marginal, remote and deepwater fields
Expanding the range of FDPSO services
Optimizations of the next project execution

FDPSO Azurite An innovative stepping stone for the industry

22

Thank You for Your Attention

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