Giuseppe Coronella

Executive Vice President Offshore Business Unit

2nd Drillships Conference Seoul, October 2013 1

Introduction

Next Generation of Drillship

Innovative Design Approach Ship Designed around the Drilling System

A Double Derrick Drillship with:

Lowest Downtime
Highest Payload
2nd Drillships Conference Seoul, October 2013 2

The steps of evolution of the drilling rig unit

Technology development

DS

SSDR

Jackup

Phase 2

Phase 1
Today

Time
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The next generation of drillship

Brand new overall concept
next-G DS

(e.g. drilling without tower)

Partial Modification of the concept

(e.g. new type of drilling tower which requires new practices to operate)

Overtaking dualism between Hull and Drilling System

CONSOLIDATE ABILITY TO PERFORM IN UDW HIGHEST PAYLOAD & LOWEST DOWNTIME

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2nd Drillships Conference Seoul, October 2013

The dilemma of choice

RISK CONTAINMENT

NEW NEEDS

CONSERVATISM

INNOVATION

STANDARDIZATION
.

CUSTOMIZATION
SPECIALIZATION

COST REDUCTION

2nd Drillships Conference Seoul, October 2013

Figuring out product categories

INNOVATION

Driven by the changing of the boundary conditions

STANDARDIZATION

Big volumes, wide market

Stable boundary conditions

Granted market, low risk
CONSERVATISM

Mainly building new rigs when supported by a multy-years contract

CUSTOMIZATION

Specialized rigs designed for given environment, performances, operative regions, rules, local policy
(1) Jack ups are not considered; fleet includes confirmed new orders Companies data processed by Fincantieri

2nd Drillships Conference Seoul, October 2013

The choice

Innovation

INTEGRATION
Conservatism

DRILLING PROCESSES

Customization

CONFIGURATION
DRILLING EQUIPMENT

Standardization

2nd Drillships Conference Seoul, October 2013

The needs of the Market

Major recorded Market needs
To reduce weather downtime. To reduce operative downtime. To improve on-board logistics. Focus on safety. To increase rig operability. To enlarge crew facilities. To reduce no productive time. To increase to comfort for the personnel. To reduce risks of accidents. To simplify maintenance activities. To reduce operational costs.

Drivers SAFETY AUTOMATION ENVIRONMENT PERFORMANCES MAINTAINABILITY COMFORT ERGONOMICS

Design Inputs
Higher live loads Higher variable deck load High margins for future upgrades Optimization of vessel dimensions Large open deck areas Designer choices

SAFETY

AUTOMATION
COMFORT
DESIGN INPUTS

PERFORMANCES

MAINTAINALBILITY
ERGONOMICS ENVIRONMENT

2nd Drillships Conference Seoul, October 2013

The most conditioning design input

lb lb lb lb

40,000 ft

50,000 ft

2nd Drillships Conference Seoul, October 2013

Outlining the design inputs

HIGHER LIVE LOADS Max. Hook Loads 1,500 sh.t

50,000 ft TDD

20,000 psi BOP

Combined Loads
Setback Riser Tensioners

2,200 sh.t
2,200 sh.t 4,560 kips

More VDL Higher Live Loads

HEAVIER DRILLING EQUIPMENT MORE VDL: Mud & Cement + 800 mt + 7,000 mt +2,000 mt

Heavier drilling Equipment

Misc. Tanks Capacities

METHOD

+1,600 mt
+500 mt +1,000 mt +900 mt +1,000 mt

Marine Drilling Riser Tubular BOPs & X-mas Trees Contribution of Live Loads

Customization

Innovation
Standardization
Conservatism

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The design approach

Method = f (integration )3
Int. product (Volume Integration ) x Int. process (PE, function ) x Int. skill (co-design, cross fertilization )
12,000 ft of riser located into a riser hold (abt. 4,200 mt lowered by 19m/62ft)

Mud pumps room Liquid mud tanks Sack store Mud mixing room (abt. 9,000mt lowered by 16m/52ft)

2nd Drillships Conference Seoul, October 2013

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The result on the hull

2m
(6,6 ft)
Ratio VDL/CN = 0,11 Operative draught 10,8m (35,4ft)

Ref. Ship
Ratio VDL/CN = 0,23

2.5 m
(8,2 ft)

SMALLER OVERALL SIZE BUT

OVER DRILL
Variable Deck Load/Volume Index
TRANSVERSAL SECTION Ref. Ship

LARGE OPEN DECK AREAS: Aft Decks Fwd Deck Well Test 2,230 m2 (24,000 ft2) 800 m2 ( 8,600 ft2) 500 m2 ( 5,400 ft2)

OVERDRILL
LONGITUDINAL SECTION

20 m
(65,6 ft) 2nd Drillships Conference Seoul, October 2013 12

Lean body, large capability

VARIABLE DECK LOAD

+ 7,000 mt

(15,400 lb)

WATER BALLAST
DISPLACEMENT

- 27,000 mt

(59,500 lb)

abt. -27 %

OPTIMIZED VESSEL DIMENSIONS FOR UDW NEEDS OPTIMUM RATIO CAPEX/OPEX

2nd Drillships Conference Seoul, October 2013

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The ship efficiency

Single Derrick
[VDL/(LxBxD]

Ship Efficiency

Design Trend
Last Orders based on new designs

Market Reference Existing Vessels

Dual Derrick
Compact vessel Optimized vessel Large vessel

Vessel Dimensions [LxBxD]

2nd Drillships Conference Seoul, October 2013
Companies data processed by Fincantieri

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The main distinctive vessel characteristics

POWER & PROPULSION
Power Production: 6 x abt. 7,600 kW (45,600kW) splitted in three engine rooms Thrusters Configuration: Aft 3 x 5,500 kW azimuthal Fwd 3 x 5,500 kW azimuthal rectractable

DRILLING EQUIPMENT CONFIGURATION

Lifting capacity: 1,500/1,250 sh.t Setback: 2,200 sh.t Top Drives 2x1,500 sh.t Drawworks 1x1500-11000hp, 1x1150-9000hp Crown Motion Compensator with AHC on both riig Riser Tensioning: 4,560,000 lbs Mud pumps: n6 rated 10,000 psi BOP: 2 full stacks BOP, 7rams, 20kpsi Risers: 12,000 ft into the Riser Hold OD62

CREW & SAFETY

Accommodation designed for 230 people 42 single cabins

94 double cabin with private toilet

Public areas abt. 3800 m2 Life saving appliances: 2 gravity lifeboats 105 people each side 1 free fall lifeboat 30 people aft Helideck for Sirkosky S61N with extra parking area

Deck cranes configuration:

3 x 100 mt knuckle boom cranes 1 x 165 mt Active Heave Compensated Crane Handling Systems: Fully Automated Riser Handling System 1 x triple knuckle boom on pipe deck 1 x BOP Overhead Crane 650 mt 1 x BOP Trolley 1,000 mt 1 x Xmas Trees Trolley 150 mt Deck Areas: Aft Deck Fwd Deck Well Test 2,230 m2 (24,000 ft2) 800 m2 ( 8,600 ft2) 500 m2 ( 5,400 ft2)

CAPACITIES
Diesel Oil 7,000 m3 (44,000 bbl) Drill Water 4,300 m3 (27,000 bbl) Liquid Mud 3,700 m3 (23,000 bbl) Sack material 12,000 sacks

2nd Drillships Conference Seoul, October 2013

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How the product categories are balanced in the Overdrill

Ship designed around the drilling system Emergency Management System, Condition Based Maintenance Riser Handling System , Enclosed escape ring, Patented Bow Bulb, Double Hull. Traditional ship shaped solution Lattice dual derrick structure Proven drilling processes focused on the personel safety and the environment protection.

Innovation

Conservatism Customization

Flexibility to choose different drilling equipment configurations Wide margins for future improvements Accommodation designed for 230 people

Standardization

Installation of standard equipment

2nd Drillships Conference Seoul, October 2013

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Recapping the major distinctive items

Area Drilling 1. Systems & 2. Performaces 3. 4. 5. 6. 7. 8. 9. Efficiency and Safety Working Areas Green Rig Main Items Enhanced Drilling capabilities High Payload Capacity Large deck areas 20k Well Control System & space for two BOPs 20kpsi Upgradable Mud System Dynamic Positioning DP3 Hull Design improving Seakeeping and operability Higher degree of automation Enhanced Material Handling Equipment The next offshore frontier for Ultra Deep Water

Water

12,000 ft

Max. Water Depth

10. Increased efficiency, Lowest downtime 11. Enclosed main escape route 12. Double Hull & technical trunks 13. Crew-friendly environment 14. Designed for NOx reduction system (Tier-III compliance) 15. Optimized HVAC design
40,000 ft

Earth Soil
Present Max. Drilling Depth

50,000 ft

New frontier of drilling depth

Reservoir

2nd Drillships Conference Seoul, October 2013

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Thanks for your kind attention

2nd Drillships Conference Seoul, October 2013

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