NUS National University of Singapore PROFESSIONAL ACTIVITIES CENTRE FACULTY OF ENGINEERING 4-DAY SHORT COURSE ON SUBSEA SYSTEMS ENGINEERING 2374 ~ 26tk November 2010 EA-06-04 National University of Singapore By Dr .Bil Loth Ceng,FIMerEst © A/Prof.Loh Wai Lam Ceng,MRAeS,SPE WD Loth & Company Ltd Department of Mechanical Engineering Unnited kingdom National University of Singapore Another KY IN UI S inivictive ‘Tel: 6516 5113 « Fax : 0874 5097 « Email: engey@nus.edu.seSubsea Systems Engineering 23" — 26% November, 2010 Copyright® 2010 by Professional Activities Centre, National University of Singapore. All rights reserved. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written permission of the publisher. El diets aesIntroduction to Subsea Systems * Course Objective and Contents * System definition + Differences in system requirements * Cost/schedule/quality relationships + Interface Management + Project Execution Course Objectives + To define the various pieces of equipment and engineering disciplines which, when properly combined, yield a subsea production system. + To outline the relationships of various components and procedures and how they interact to generate a coherrent production systemWhere the Money Goes Equipment. Why be concerned with the “System” ?Subsea Production Systems are no different than anything else — different needs and different circumstances require different designs — there is no single right, or best, answer 440 kg 20 HP 1024 kg 50 HP 2435 kg 562 HP What is a System? a group of independent but interrelated elements comprising a unified whole (OED) (Not just the bits and pieces of hardware) a complex of methods or rules governing behavior (OED) (Behavior of fluids, materials, reservoirs, people etc.) a procedure or process for obtaining an objective (OED) (Various objectives - making money, avoiding pollution etc)Objective of Subsea System Design * Is NOT to optimize the design of individual elements of the subsea system. Is NOT to minimize the cost or maximize reliability of the subsea equipment IS to ensure that the overall subsea design, when installed, can be operated in a manner gptimizing production ~ Ultimate Recovery (2) ~ Cost per BOE (?) — Maximizing PV Profit (?)Production System as generally viewed by subsea engineer } Flow Assurance Hydraulic Pressures Fluid Characteristios Temperature Controls Functional perspective of system Production E> tion Gathering E> Dota collection | “Production Prossure Control) \ Controt (Corning y Transpo esr. | \ Completion Tuigs to seafloor oyMechanical perspective of system RelationshipsField Development | Development Life Cycle [ Communication ‘among —— these groups is ‘Operate Define (poor Requirements, Specify ‘unetion: JD & Tratalaton 8 ese] [ama] [eed [commiesonn These groups do not have the same economic drivers and one of the problems in development planning is to try and project events that will happen well in the future + Why do different operators end up with different systems for similar fields? — Priorities — Inertia/tradition — Resources + How do you figure out what drives system design in terms of operator preferences? ~ Identified requirements (needs) ~ Unidentified requirements (expectations)Objective of this Section To explore elements other than the physical prospect which drive system selection and design - economic factors - personnel factors To incidentally touch upon the interface problem The “Scope” or “Quality” Triangle Cost, Schedule, Resources, Quality, Scope Normally, one factor is fixed or dominant and the other two vary in inverse proportion “FASTER, BETTER, CHEAPER - PICK TWO” Attributed to NASAPriorities ‘Why would you think like this? Promises to stock analysts ro earnings? More probably requirement to meet production expectation. ]What are drivers ? Stock vatus, production score SCHEDULE (@uaity) ‘What doos it means for the system designer? Little emphasia on optimizing system configuration (scope). Use Stdesign one ~ bulla two" approsch Now tachnology utlized but soon as schedule rick isjor omphasie on firt production Priorities ‘Why would you think ike thie? Resource limitations, credit unavailability ‘What is driver 2 Minimum cash impairment SCOPE (Quality) SCHEDULE [What does means for the system designer? [Emphasis on minimizing costs ~ scope ollen fixed at expense of schedul [Some chanee for cost reduction through naw technology Inevitable push for high class rogults with low cost angineoring (trouble)Game A Game B “losing hurs twice as bad as winning feels good" ~ Sparky Anderson Priorities Why would you think ike this? High level of risk adversity ‘What Is driver 2 Foar of falure with attendant financial loss. score SCHEDULE (Quality) What doas it moans for the system designer? ity Little opportunity for newer fechnolos Propensity to stick with designs used previously Often complex designs with multiple redundancies (not always bes!) 10Tn real life will paver be quite ae clear cut. Remember “chose two", ‘The point will actually float a litle Closer to one side than the other There is no single “bast” anwor for all occasions ‘The economic drivers change from development to development It pays to sort between “needs” and “expectations” Small operator tieing back to facility of major — procedures for equipment selection driven by norms of host operator Major operator developing marginal prospect which will not sustain investment associated with “normally” selected equipment Big Fields get bigger, Small Fields get Smaller Big fields generate the revenue for additional data retrieval, more wells, and additional capital investment ‘When things go wrong in a small field operators has to walk away ‘Small fields are more risky and cannot sustain same level of investment 11The Prospect & Economic Factors Gana) Cd — ce oo Total Production Cost(Sibb)) ‘Source: Petroleum Review, Apil 2009, ag 19 Social Factors Cost per BOE —a traditional measure but one which limits “Sovelopment poseiblities fo larger, conventional, prospects Maximizing PV Profit (IRR etc) — some variant of this is probably the most common measure used by large Sperators ~ requires some moral fortitude since measures can be distorted by low preinvestment with Consequential loss of tallend reserves ‘Maximizing Social benefits — governments can alter development economics, through subsidies and tax concessions to achieve social goals such as greater employment, food and fuel subsidies, etc, Most pronounced differences between IOC and NOC. economic goals, Environmental — environmental protection is high on all ‘operators list but it can go a lot farther than simply pollution avoidance with attendant escalation of costs 12Why development planning should consider [OR and EOR + World average recovery rate ~ 22%" + Primary Methods recovery ~ Liquid and Rock expansion — 5% ~ Solution gas drive — 20% ~ Gas cap expansion ~ 30% ~ Gravity drainage — 40% = Water Influx 60% + Secondary Methods (OR) — water and gas injection — can yield 80% + Tertiary Methods (EOR) - thermal, gases, chemicals — can yield 70% * Statford 68% with IOR, Prudhoe Bay 47% with IOR & Social Factors Ultimate Recovery —with a finite resource this seems like a laudable approach but it does cost money 13,2010 Completed Field, Completed Terminal - no way to connect them Priorities + Priorities are operator, not job, specific + Priorities change slowly. Think like an economist: short run — one factor changes, long run — all factors change. Beware out of character rapid changes. » Attitudes and experience of one operator are not readily transferableTransient Factors ¢ Strong individuals often have undue influence on operator designs — technical veracity is not the only answer « Heritage designs ¢ Comfort factors Operator personnel resources © Proprietary designs * Corporate culture changes very slowly but individual elements can change more rapidly Failure to appreciate the underlying drivers of the customer, whether it be your bosses boss or an operating company client will almost certainly lead to costly delays and sometimes to a “near death” experience for the prospect Balancing and managing the primary elements of any development, cost, time, and scope (quality) is as important in the design stage as during project execution,How do you know what the client wants? Look and see what they | [Production Profile Sid the astime Availability targets Agree a design philosophy at the Failure Mode outset Contract Strategy Agree an operating philosophy at the Export Arrangements outset Drilling/completion Hope for sound design preferences basis. Criteria for stage process (definitions) Hurdles for System Design Real Life + Change is pretty much guaranteed ~ Reservoirs are complex things ~ Tachnolagy changes + Understanding what is likely to change and the impact it will have on the subsea system is invaluable in getting the design right. but — do not let contingency engineering mask the cardinal rule of field development — DEVELOP THE PROSPECT YOU HAVE NOT THE ONE YOU WISH TO HAVE + Risk management is essential. Do not confuse with risk avoidance 16Interfaces Interface Management An integral part of system engineering An integral part of system execution + Ranked by some operators, especially those with large EPC projects, as most important element of project execution + Must be integrated with scheduling * Must incorporate operations and installation + Must be integrated with management of change + Must have high level involvementInterface: a common boundary or interconnection between systems, equipment, concepts, organizations, or people. Objectives of interface management Identify technical, execution and organization interfaces Create a clear understanding of obligations and roles in information transfer Define, implement, monitor, document, and closeout interfaces Ensure timely execution within project constraints Resolve problems Work Elements + Use a structured process to define interfaces as an initial step + Document the expectations (in terms of i n required and when it is required) us parties + Ensure agreement between involved parties + Establish clear and effective channels for interface information transmission + Identify critical interfaces and prompt concerned parties to minimize impact 18Internal Interfaces Between the project team and parent company Between elements of the project team Between the project team and prime contractors Between prime contractors and subcontractors External Interfaces | Between prime contractors Between project and coventurer, regulatory bodies, media, interest groups etc. Between the prime contractors and regulatory bodies, host communities etc. Interface Register A way to document and keep track of things Typical elements for each interface an interface “name” and reference number requesting (need) party responsible (supplier) party description of the expectedirequired deli date that information is required agreedicontracted delivery date “closeout” date comments, qualifiers, etc status Often started with a simple matrix approach to identify prime interfaces which are then detailed, and agreed, by involved parties and then modified by all to meet 19Identification and Definition of Interfaces Premised on fact that designer, manufacturer, or contractor know what is required, and when it is, required, from others to complete their work First step to identify what and when and agree with other parties Delivery expectations must be related to project schedule — failure to marry interfaces and project schedule will lead to unrealistic delivery schedule or costly rework Until some point, interface and overall project scheduling will be interactive but, these schedules must be frozen at the earliest possible time to avoid completion slippage Once schedules ( and preliminary designs) are frozen, a management of change procedure is activated. Management of Change Timely completion of the project is intimately related to successful implementation of management of change Design should be frozen with completion of a preliminary design basis at the end of pre-FEED ~ design detail will be slim and interface matrix will reflect this FEED work should be an extension of the preliminary design consisting primarily of additional detail — interface matrix will reflect this addition detai At the completion of FEED a firm design basis is available Minor changes in reservoir details, fluid properties, etc are expected 20Management of Change (cont) Major changes such as number of wells, host facility designation, etc are subject to management of change Procedure includes estimation of cost and schedule impact and risk assessment. Interface holders should be aware of impending changes and must estimate impact on their deliverables Changes to be formally agreed by project management before being implemented When changes are approved, design basis can be modified and supplied to interface holders to ensure all parties are working towards a common objective The interface matrix should remain unchanged but the interface register needs to be updated to incorporate any revised delivery dates Distributed, or Dispersed, Interface Control Interface managers ‘communicate on a common Maximizes input of supplier technical interface ‘Some compromise of central authorly 21Centralized Interface Control Interface managers at ail fevels have two way communication with project interface manager Maximizes influence of ‘project interface manager Integrity Management 22Integrity Management The objective is to keep any asset running safely and with a minimum of downtime Incorporates management of change, competence evaluation, learning, risk management, standards + Covers life cycle of facility — starts at outset of design to ensure maximum risk reduction + Requires definition of facility physical boundaries, operating envelopes, and establishment of key performance indicators Integrity Management * Key Performance Indicators ~, Linked to corporate objectives — Meet industry norms to facilitate benchmarking — Feature lagging and leading indicators + Special emphasis on reservoir and well integrity measures — Continuously changing = Technical, operational, and organizational measures to reduce the risk of uncontrolled release of formation fluids 23Field Development Process Stage Gate Project Management Selection Pro-FEED Often tested against “disaster” scenario i A Feasibility Gate definitions will vary considerably ‘among operators: Financial | [Reservoir 24Coarse Screening Not a bad idea to document.why certain options were not. pursued but also not a good idea to work problem by exhaustive search Option | Drillex | Capex | Opex | UR Direct Tieback TLP Spar FPSO Intermediate Platform. What Happens at Various Stages Preliminary Engineering, ‘Specifications, Preparation of Tender Documents, Cost Estimates S oe _ Foasibility | Pre-FEED FEED Execution | Operation Van roush cost Bidding, Contract estimates to see ‘Award, Detailed ifthe Design, Fabrication, development can Testing, Installation be profitable & Commissioning FEED « Front End Engineering Design 25Completing the projection Production profile from reservoir engineering Drilling cost from drilling department — at early stages can be approximated by multiplying along hole well depth by a cost per foot = $2500/ft Estimate OPEX = $10/bbl Select price/bbl - varies with time and operator $25 -$60 / bbl Select economic criterion — NPV, IRR etc Main Upset Points Selection Feasibility | pre-FEED Cost —_Detalied Design & Estimating Manufacturing Maintenance 26Summary There are real difference: \e which operators select the developmen . option Designs change with time, personnel, and technology Change is usually iniotivated by necessity The system must be tailored to operator preferences — it helps to know these’ preferences 27Summary ‘Subsea is a Subset of a production system The boundaries between the reservoir and. export facility are blurred - Optimal designs can not result from “pigeon hole” engineering Flow assurance is the broadest link throughout the production system Interface control requires considerable attention Acronyms & Definitions [BOE Bart ol equvalnt (90) 2 auf mearre ured by of and o32companie inthe rarer Se S vay of etneag of a as eagnos 8a pueson io 8 {gis meaaure. Spoedealy« BOL sibs bara ot oa er me (ook (CAPEX = Copal Epes DDRULEX~ Bing xg OR emcee Ot Rasover eben ef etal gs, Thi ved by valing an met es Snanng Soe of te onday sare a bretig EPC Engnebing possrement srsruten Type of coast FEED ~ Front End Engnenng Oesgn F5u-Feren Sve en mses Rate of tum or itera ate of Rtn {06 Imaraton’ Gb Company [NASA hnal ronan Space Adinstton PU prcnet value Sart tenn and ong tern. Eoonorsteme Neti lat, Sho tam ans ono We Imgotan astro chon: an re mans ol purine tacos ane. ‘Tipe Tensan sg Pattee kN ~ Unies Kenge ey Se ‘UR Utinate Resoreny 28Reservoirs * Oil & Gas Reservoirs * Exploration * Seismic Why do oil and gas come from? * Many theories exist as to the origin of petroleum and natural gas — but yet it is not possible to determine the exact place or material from which any particular reservoir originated. There are two accepted theories — — Organic InorganicInorganic Theory * Inorganic theory of the origin of petroleum states that hydrogen and carbon came together under great temperature and pressure far below the earths surface and formed oil and gas. This then seeped through porous rocks to collect in various natural underground traps. Organic Theory Organic theory is the one most widely accepted by today’s scientist, based on evidence ancient seas left on underground rocks. Oil and natural gas are formed from remains of prehistoric plants and animals. Hundreds of millions of years ago, prehistoric plant and animal settled into the seas along with sand, silt, and rocks. As the rocks and silt settled, layer upon layer piled into rivers, along coastlines, and on the sea bottom.Organic Theory (con’t) Geologic shifts resulted in some of these layers being buried deep in the earth. Over time, the layers of organic material were compressed under the weight of the sediment above them and the increasing pressure an temperature changed the mud, sand and silt into rock and organic matter in petroleum. The rock containing the organic matter that turned into petroleum is referred as sedimentary or source rock, The oil and natural gas is contained in the tiny pores spaces in these source or reservoir rock.Oil and Gas Reservoirs Over the millions of years, the oil and gas that formed in the source rock deep within the earth moved upward through tiny, connected pore spaces in the rock. Some seeped out at the surface of the earth. But most the petroleum hydrocarbons were trapped by nonporous rocks and other barriers that would not allow it the migrate any further. These underground traps of oil and gas are called reservoirs. When reservoir rock is magnified, the tiny pores that contain trapped oil droplets can be seenOil and Gas Reservoirs * A trap is a geologic structure that prevents oil and gas from escaping from a reservoir rock. + There are two general types of reservoir trap: — Structural trap formed by deformation of the reservoir formation — two cornmon types are: + Anticiine ~ an upward folding in the layer ofthe rock, much lke an arch + Faull traps ~ results when a rock of each side ofa fracture shifts its postion, — Stratigraphic traps that results from an existing updip termination of porosity or permeability — types include: + Lens trep ~ caused by abrupt changes in the amount of Connect pore space + Combination trap — formed by combination of folding, faulting, porosity change end other conditions + Unconformity Be 138, Se rncarion wipe Source: Gerding, Fundamentals of Petroleum, 3 Ed4,121, Ot eral Shstigel saan) Sourea: Gerding, Fundamentals of Petroleum, 9 Ea.Fe. 1.25. A pore wpentne ps ferme sree wn Fe by brine io noe porom earoundg fora Source: Gerding, Fundamentals of Petroleum, 9 Ed, ig, 326 Diconinions elope fom arnt Epeecenet st dome, ‘Source: Gerding, Fundamentals of Petroleum, 9 Ed227, Conmen ech ‘Sader Ollis trapped under an unconformity Source: Gerding, Fundamentals of Petroleum, 34 4.Lenticular traps are often formed in buried river sandbars ‘Source: Gerding, Fundamentals of Petroleum, 34 Ed. Impervious rocks like shale trap oil and gas in crests or upwarps of rock layers. Azanticline trap. Rereef trap. S=stratigraphic trapOil and Gas Reservoirs Reservoirs are not underground “lakes” of oil. Reservoirs are made up of porous and permeable rocks that can hold significant amount of oil and gas within their pore spaces. The properties of these rock allow the oil and natural gas within them to flow through the pore spaces to a producing well. Most reservoir contain oil, gas and water which are layered with gas on top, oil middle and water on bottom Oil and Gas Reservoirs Reservoir rock is subsurface rock capable of containing gas, oil, water and other fluids. To be a productive petroleum reservoir — the rock body must be large enough and porous to contain an appreciable volume of hydrocarbon. It must also be permeable enough to give up the contained fluids at a satisfactory rate when the reservoir is penetrated by a well. Sandstones and carbonates (i.e. limestone and dolomite) are generally the most porous of rock and also the most common reservoir rocks. 10Oil and Gas Reservoirs Some reservoirs are only hundreds of feet below the surface. But other are thousands and sometimes tens of thousands of feet underground. Reservoirs have been discovered at depths greater than 30,000 feet (9.15km). Many offshore wells are drilled in thousands of feet of water and penetrate tens of thousands of feet into the sendiments below the sea floor. Oil and Gas Reservoirs Not all petroleum reservoirs are commercially viable. To be commercially viable, the well must posses the following characteristics: — A formation of rock in which the porosity is sufficient to contain the fluids ~ Gas or oil must be present in large enough quantities to make exploitation economically viable ~ Anatural driving force, usually gas or water, must be present in the reservoirExploration * In modern day exploration, oil and gas discoveries are generally credited to surface and subsurface geology studies based on data gathered from aerial photographs, satellite images and various geophysical instruments which in turn determines where an exploratory well should be drilled. + Note: the earth has a total surface area of 509,600,000 km?, 70.8% ‘covered in water. Exploration The search for oil begins with geologist and geophysicists using their knowledge of the earth to locate geographic areas that are likely to contain reservoir rocks. Ina relatively unexplored area, the explorationists studies the surface topography and near surface structures, as well as geographic features such as drainage and development. Sometimes the character of the underground formations and structures can be deduced largely from what appears on the surface 12Exploration — Geophysical Surveys + Geophysical exploration depends on a few fundamental variables in the earth's physical conditions — gravitational change, magnetic field change and electrical resistance change. ~ Gravitational survey — geologist makes use of the earth's gravitational field and the way it varies according to differences in mass distribution near the earth surface, — Magnetic and electromagnetic surveys — enables geologists to compare slight differences in the magnetism generated by the mineral in rocks. Exploration — Seismic Survey Seismic survey — this is biggest breakthrough and usually the last exploration step before a prospective site is actually drilled. Seismic survey give the explorationist precise details on the structures and stratigraphy beneath the surface. Data is collected by creating vibrations, detecting them with a seismometer, recording them with a seismograph, and depicting them on a seismogram. Seismograms are used to generate a seismic section, which is much like a cross-sectional view of the subsurface.Seismology - Theory + The earth's crust is composed of different layers which vary in density and thickness. Each layer has its own properties. Energy (in the form of seismic waves) traveling underground interacts differently with each of these layers. + When an energy, e.g. explosion, dropping of heavy weights or sound wave, is released on the surface, it will travel through the earth. + As the energy strikes each of the layers, part of itis, refracted and part of itis reflected back to the surface. + The reflected sound waves are then detected and recorded by the sensitive geophones (for land and hydrophone (for sea). + Each layer of formation exhibited different characteristics. Onshore Seismic Exploration + Seismic exploration onshore involves artificially creating seismic waves. — In the past - shot holes are drilled and explosives charges are fired in the holes — Now — heavy weights are being dropped ~ Now ~ man-made vibrations or waves are generated (developed by VIBROSEIS). + Reflection of seismic waves is picked by sensitive geophones and then transmitted to seismic recording truck which records the data for further interpretation by geophysicist and petroleum reservoir engineers. 14ea ‘Seismic exploration on land using a seismic vibrator truck Seismic Exploration Offshore + Instead of explosives or impacts on the seabed floor, the seismic ship uses a large air gun, which releases bursts of compressed air under the water, creating seismic waves that can travel through the earth's crust and generate the seismic reflections that are necessary. Towed behind the seismic ship, hydrophones are being used to pick up seismic waves underwater. The hydrophones may be arranged in various configuration depending on the need of the geophysicist.There are up to 3000 hydrophones On a 300m cable Seismic exploration offshore Iydophones- there are up to 3000, hytophones on a 2000m cable Offshore Seismic Survey 162-D and 3-D Seismic + 2:D Seismic — Up till the 1980's — reflection seismic acquisition carried out by arranging the source and received in a line for a shot and then advancing the equipment along a linear transit as necessary to complete the survey. + 3-D Seismic invented by Exxon. First 3-D Seismic survey was shot by Exxon over the Friendswood field near Houston in 1967. + 3-D Seismic successfully evaluated in the Bell Lake Field in 1972 with the support of six oil companies ~ Chevron, Amoco, Texaco, Mobil, Phillips, and Unocal. Acquisition phase took about 1 month, but processing the half million input traces required another 2 years. 3-D Seismic * 3-D Seismic - One of the most important technological breakthrough in an industry where profitability is closely tied to innovation and technology. — Allows the subsurface to be depicted on a rectangular grid that provide the interpreter with detailed information about the full 3-D subsurface volume. — Allows lateral detail to be enhanced — Allows comprehensive overview of subsurface ‘structural features, particularly faulting — Allow attributes to be mapped and displayed along curved reflector surfaces. — Accurate positioning of events made possible through 3-D migration also improved subsurface imaging of flatter-lying stratigraphic targets. 17Advance 3-D imaging Advance 3-D imagingAdvance 3-D Visualization * One of the most exciting in advancement in 3-D interpretation is 3-D visualisation. — in a special theater at the ExxonMobil Upstream Research Centre in Houston, geologists can gather for a virtual tour of potential new reservoir, as well as older fields — when viewed through high-téch glasses, $°D seismic images representing as much as 76 mile® of rock seem to float in space. ~ The Texaco has visionariums, 8 fo 10 ft tall screen that curve horizontally through 160 degrees with data projected by use of three projectors that each covers one-third of the screen. — Arco and Norck Hydro use immersive visualization room based on the virtual reality interface CAVE, invented by U, linois at Chicago. In the CAVE, three walls and the floor are used as projection surfaces, and the images on the walls are backprojected, while the image on the floor is projected from the top down. 4-D Seismic + 4-D Seismic ~ An enhancement of 3-D Seismic. Also know as time-lapse by adding the dimension of time. It is accomplished by making several 3-D seismic survey of the same area over a period time. + 4-D Seismic can also track movement of oil and gas over time. + Moving pictures shows how the oil reservoir has changed during production and how it will likely to change in the future. 194 Gas injection NOt 4.D Image Interpretation Exploratory Wells The best way to gain a full understanding of ‘subsurface geology and the potential for oil and gas deposits is to drill an exploratory well. Involves actually drilling and digging into the earth’s crust to look for natural oil and gas deposits. Geologist will also examine the drill cuttings and fluids to gain a better understanding of the geologic features of the area. But drilling an exploratory well is an expensive and time consuming effort. 20Oifshore Oli & Gas rechnology Specialisation ECE Mek) Offshore Drilling * Offshore Drilling Rigs + Well Control — BOP, Risers & Casing * Straight and directional wells * Casings * Well Completions + Workovers + Smart WellsOffshore Drilling + Offshore operation in the petroleum industry began as extensions to land operations. + The first offshore well in the USA was drill in 1897 off the coast of southern California — a wooden pier that extended 300 ft into the Pacific Ocean was built from the shore. Near the end of the pier a drilling rig was erected, and a well was drilled to tap oil and gas that lay in a sub-surface reservoir below the water. + In the 1930s, offshore drilling of exploratory wells (or wildcats) in coastal marshlands, bayous, and shallow bays in the Coast of Mexico involved first dredging a channel of 4 to 8 ft deep in the marshes and bays and then towing a barge into the channel. The barge was then submerged and secured in place by wooden pilings, and a rig was erected on the deck of the barge, which remained above the waterline. Drilling barge ‘Source: Berger, Anderson, Modern Petroleum ~ A Basie Primer ofthe industry, Ed.Mobile Drilling Rigs * Drilling barges are useful for shallow protected water such as lagoons and canals up to about 25 ft. Barges differ from ship in that they are not self-propelled, but must be towed to and from the well location by a tug. They are not suitable for deep water or for areas where: high waves might occur. Barges also house supplies and provide quarters for the crew. + There are four main types of mobile offshore driling rigs used to drill wildcats or exploration wells: Submersibles, Jackups, Semi-submersibles and Drillships. + Submersibles and Jackups are bottom-supported rigs. * Offshore drilling operations and equipment are similar to those on land. The major difference is a top drive and the platform upon which the rig is mounted. Offshore dil rigsJack-up Drill Rigs Jack-up rigs are more widely used than submersibles, suitable for use in a large lake where many sites are to be drilled, or in shallow offshore areas. Jack-up rigs have watertight barge hulls that can float on the surface of the water while the unit is being towed to the drill site. Once the site is reached, three or four legs are jacked down until they rest on the sea bottom, leaving the working platform well above the sea level. With a sufficient air gap between the hull and the surface of the water, operations can be carried out unhampered by tides and waves. Jack-up rigs can also have two barge-like hulls, the bottom hull sits on the seabed and is floated with water. Jack-up rigs are generally used to drill in water depths up to 600 ff. A jack-up diiling rig Source: Dave, Modem Petcleum Technology. Vol, UpstearJackeup rig Semi-submersible + For deeper water drilling, a floater, i. drill ship, and semi-submersible, is used. + A semi-submersible is a floating, rectangular-shaped drilling platform, also known as a columa-stabilized unit, + Semi-submersibles consists of two of more pontoon shaped hulls to which are attached several vertical columns. The deck is laid across the top of the columns, where the derrick and other drilling equipment are placed. + The pontoons are partially flooded so that some buoyancy remains such that the pontoons are below the water surface and drill deck is above the water. + Because most of the flotation is below sea level in the pontoons, the rig is very stable even during high seas and winds. They can drill to water depth up to 70,000 ft. + In relatively shallow water, the semi-submersible is anchored on station with a mooring pattern of anchors and chain radiating out of the rig. In deeper waters, it uses dynamic positioning to keep itn station,‘Semi-Submersible driling tig CS Me Sout: Dane, Modern Petia Teshrelay, Volt, Upstea Drill ship Essentially, a drill ship is a ship with a drilling rig mounted in the centre and drills through a hole in the hull called the moon pool. The ship floated over the drill site. A rill ship is differs from a ship-shaped barge in that the drill ship is self-propelled and uses dynamic positioning to stop it from drifting off the drill site by constantly recalculating the drill ship's location via navigational satellites or GPS. Some drill ships have the capability of drilling in water depth of 10,000 ft. Drill ships are very expensive. For efficiency, some modern drill ships have the equipment and ability to drill ‘two wells at the same time from the derrick — the derrick contain two traveling blocks and top drives, and the ship has two independent driller’s and driller’s assistance stations and two set-back areas to rack the pipe.Arilship, Source: Dave, eioloum Technology. Volt, Upstream Drill ship— Deepwater DiscoveryRotary Drilling Rig + A rotary rig have five major system essential to the operation: — The drill string and bit ~The fluid circulation system ~The hoisting system — The power plant — The blowout prevention system _ Rotary Drilling Rig ‘Source: Dawe, Modem Petoleum Technology, Vo, Usstear|Drilling Rig Components 5 Gone ee " 2 ue See, ' ia 1 ta © hens & Beata So thee ees 2 pee 3 gears sisi 1% diamante ieee Fr BIE Bron ‘Baeimete Seeee ‘ge gaeuait Bais 2 Bees iS te hitpviwiyw. osha, gov/SL TCletools/oilandgasiilustrated_clossary htm! Drill string and bit Source: Ghllano, introduction to Oil and Gas TechnotoayFluid circulating system omecormes ue wenn | Source: Giulano,Itoduton lo OH and Gas Toshrolo sve. ELK HOSE rovanyonwe [sel \ relLyeushiia ° ROTARY TADLE a Rotary System sor Sack Y ORL PPE DmLcouan: jeg Source: Berger, Anderson, Modern Petoleum ~A Basle Primer of the industry, 34 Ed. 10‘Soutoe: Gerting, Fundamentals of Petroleum, 9 Ed Blowout Prevention System A blowout can be defined as an uncontrolled influx of formation fluid which has sufficient pressure to cause damage to rig equipment and injury fo rig personnel. A kick is an unwanted flow of formation fluids into the well bore hole which may (if not controlled) develop into a blowout. Well kick occurs when the hydrostatic pressure exerted by the mud in the hole is below the formation pressure exerted by the well fluids in the formation. A blowout preventer (BOP) is a device placed on top of a well fo prevent high pressure fluids from flowing out of the well in the event of a well kick, BOPs must be installed on the top of the well before drilling commences 1Blowout Prevention System + ABOP is basically high pressure valves which seal off the top of the well in the event of an influx. + There are two types of BOP — — Annular preventer — made up of rubber elements, which, when compressed vertically, will seal off the annular space between the preventer and the drill string. ~ Ram-type preventer — made of hydraulic rams, which, when required, are driven across the wellbore to seal off the annular space. + Normally, both types of preventers are used on a well and are stacked up, one on top of the other, to form a BOP stack. Annular surface blowout preventer Source: Berger. Anderson, Modern Petoloun - A Basic Primes of te industry, 94 Ee 12Annular blowout preventer et Head eerie Pack wat Openingeamter bat iting sce Cpsagehamter hosing hander Comat toa Source: Dawe, Modem Petroleum Tecnology. Vol 1, Upsteam| Ram-type blowout preventer 8: Load Hinge, 8. Mules 8: Flag Grooves: Centguraions! 3, Bonnet Boars 20, Side Ouilote 15, Bonnet Bon” Sour: Spar, Andeeon, Madam Petlaum -A Bei Pimar ofthe indus, 9° EdRam-type blowout preventer Sead ing roe ‘Source: Dawe, Modem Petroleum Technology, Vol, Upsteam| BOP Stack ANNULAR PREVENTER CLOSING FORCE 8 S BLIND RAMS, aa S a PIPE RAMS tHe ‘CLOSING = TO CHOKE MANIFOLD FORCE DRILL PIPE _Soutbe: Gulano, invoduction to il and Gas TechnologySpuding an Offshore Well + Ona well drilled by a jack-up rig: — several hundred feet of large diameter conductor casing is set into the sea bottom. The conductor casing extends above sea level to just below the drilling deck. — Asmaller diameter hole is then drilled into the conductor casing. ~ Surface casing is then run into the hole and cemented. — Next, a BOP stack is bolted to the top of the surface casing — The rest of the well is then drilled and cased similar to a well on land. Drilt ship, 16Spuding an Offshore Well + Another feature with floaters is the riser which is a large heavy steel pipe used to connect the BOP with the drill ship. Risers are typically two or three ft in diameter and large enough to allow the drill pipe and bit to pass through them. With the riser in place, drilling operations can be conducted as if there were a continuous wellbore from the top to bottom. The drilling mud is pumped down the inside of the drill pipe and returns through the annular space between the drill pipe and the riser. * The riser often includes a telescoping joint to allow for vertical motion together with a bail joint to the BOP at the sea floor for lateral motion. + Control lines are run down the outer side of the riser from the surface and are used to actuate the BOP. Offshore drilling in Floaters + In offshore drilling using floaters, two important modifications, which differs from land-based drilling operations, are made on the floats: ~ The BOPs are mounted on the sea floor, instead of directly beneath the rig floor as on a land rig. The BOPS are positioned 6n the sea floor to enable the floater to abandon the location uring a storm. The BOP can be left behind to seal the well and prevent an uncontrolled discharge of well fluid into the ocean. ~ Risers, a large heavy steel pipe (2 to 3 ftin dlameter), are used to connect the BOP withthe floater. The risers are large enough to allow the dri pipe and bit to pass through them. Dring mud is pumped down the inside of the dil pipe and return through ‘the annular space between the dri pipe and the riser. Control lines are run down the outside of the riser from the surface, and 2 used fo actuate the BOP. The riser includes a telescoping Joint to allow for vertical motion of the floater, together with a ball joint atthe sea floor to alow the lateral motion. Some motion of the floater can also be tolerated, since the dril pipe is flexible. 17Ona well drilled on a floater: — aweighted femporary guide base or drilling template, with four steel guidelines running from the sides from the floater, is lowered into position by the drill string. ~ With the aid of a guide frame, lowered at a later stage by the drill string, a large diameter hole (30 to 36”) is drilled through the centre of the temporary guide base to about 100 ft below the seafloor. = The guide frame is then raised back to the floater. itis then attached to the lowest joint of the foundlation pile, the first teasing string run into the well. A foundation pile housing and permanent guide structure is attached to the top foundation: pile joint. The foundation pile is then run into the hole and cemented. The permanent guide structure is then attached to the temporary guide base on the sea bottom. The hole is then drilled deeper and a string of conductor casing is run and cemented into the hole. = A subsea BOP stack is then lowered and locked onto the wellhead with a hydraulic wellhead connector. (sa=saT ‘Subsea template Source: Beraer, Anderson, Modérn Pettolgum - A Basic Primer ofthe industry, Ed, 18Directional Drilling + In drilling, there are reasons where the drill rig cannot be placed directly on top of the well to be drilled: — Offshore — where muttiple wells must be drilled from the same platform or floater. ~ Inaccessible location- an area where a rig cannot be set up, I.e. swamp or heavily populated area. * Directional drilling is required for other reasons: — Shoreline drilling — Avoid drilling along a fault line — Multiple zones — Drilling a relief well, — Horizontal well drillin — Sidetracking and straightening — Salt dome drilling Multiple directional well drilling ‘Soufes Giuliano, riroducon o Olland Gas Technology 19Applications of controlled direction drilling an Se oe rae ‘Source: Garding, Fundamentals of Petoleum. 34 Es. Fault diiling and inaccessible location ‘Multiple zones. | Multiple well nd inaccessible ding ‘Horizontal driing ‘Source: Dawe, Modem Petileum Tecnology, Vol, Upstream 20Well Completion Once the well is drilled to the desired depth, the formation must be tested and evaluated to determine whether the well will be completed for production, or plugged and abandoned. If the decision is made to go ahead to complete the well, the production casing is run by the drilling crew, using the drilling rig for the purpose. A.wellis always cased (set pipe) to complete the well. Casing is relatively thin-walled, steel pipe. Numerous. joints of the same size casing are screwed together to form a long length of casing, called a casing string. the casing has an outer diameter of at least 2" less then the wellbore diameter, The casing sting is run into the well and cemented to the sides of the well in a cement job. Casing stabilizes the well and prevents the sides form caving into the well. It protects fresh water reservoir from the oll, gas and salt water brought up the well during production. Casing also prevents the production from being diluted by waters from other formations in the well. Casing Many wells requires four concentric strings of large pipe: = Conductor pipe ~ Surface casing, = Intermediate casing = Production casing (often call the of! string or long string in the oll patch) ‘The production casing is the last and deepest string of casing run in the well, Size of the production cesing, which provides a conduit fom the surface to the producing formation, Is determined principally by subsurface considerations, such as: = Subsurface artificial ft equioment required — Muttiple-zone completions requiring several diferent strings of rubing isolated from each other by packers. — Types of completion method to be used: open hole, perforated casing, screened open hole, or screened perforated casing. ~ Prospects of deepening the wall at a later date. 21Conductor, surfac Tntorgodiate & produciin casing cemented nthe wel i ivreeneoare pean rpoaueron erdng, Fundamentals of Petroleum, 9° Ed Casing + There are many reason to having fo casing off formations: ~ To prevent unstable formations from caving in. — To protect weak formation from the high mud-weights that may be required in subsequent hole section — these high mud weights may fracture the weaker zones. = To isolate zones with abnormally high pressure from deeper or shallower zones which may be lower pressured. — To seal off lost circulation zones. + And when set across the production interval: — To allow selective access for productionvinjection/control of the flow of fluids from, or into the reservoir(s). + One of the casing strings will also be required to provide structural support for the wellhead and BOP. 22Well Completion + Another type of string/pipe that is not common in wells over 10,000 ft is called a finer. Liners are sometimes set in a hole as a protective serving the same function as an intermediate string. A liner is usually tun only from the bottom of the previous string to the bottom of the open hole. Liners are suspended from a previous string with a hanger. They ‘may suspend in the wel either with our without cementing. + The final string of pipe usually run in a producing well is the tubing. Tubing is nearly freely suspended in the well from the tubing head. In a flowing wel, its smail diameter production more efficient results than casing. Also, tubing is considerably easier to remove than casing when it becomes plugged or damaged. Tubing, when used in conjunction with a packer, keeps well fluids away from the casing because the packer seals the space between the tubing and the casing. Well fluids corrode the casing and thus cause costly repair job later. Well Completion + The packer consists of a pipe-iike device through which well fluids can flow, a rubber sealing element that forms a fluid-tight seal, and gripping elements (called slips) that hold the packer in the tubing-casing annulus just above the producing zone. Since the packer seals off the space between the tubing and the casing, formation fluids flowing into the well are forced into and up the tubing. + Another device frequently installed in the tubing string near the surface is a subsurface safety valve. The valve remains open as long as fluid flow is normal. When the valve senses something amiss with the surface equipment of the well, it closes, preventing the flow of fuids. 23Completed well ‘Soures: Dane, Modem Patoloum Techrolgy. Vol 1, Upsream| Well ready to produce Source: Berger Anderson, Modem Petaleum = A Bade Primer oft industry, 3¥E4 24Completion Methods + Open-hole completion - An open-hole, or barefoot, completion has no production casing or liner set opposite the production formation. Instead, reservoir fluids flow unrestricted into the open wellbore. This type of completion, which is rarely used and us generally restricted to limestone reservoirs, is useful where only ‘one production zone and low-pressure formations exist. {nan open-hole completion, casing is set just above the pay zone, and drilling proceeds into the production zone as far as necessary to complete the well. Open-hole completed wells are usually stimulated by Hydraulic or acid fracturing, Operrhole completion LUNGASED < Penetration through reservoir set by reservoir engineering ~ may vary from 0° to 90° 22Factors effecting well geometry The dayrate is s not the cost per =| day —thatis the spread rate which will be substantially greater ea Drilling Cost Formation characteristics Existing exploration or delineation wells Well Location Factors 7 * Overall field layout — congestion * Mooring Patterns * Shallow gas, water, hydrates * Thermal impact * Hydraulics * Chemical requirements + Field construction scheduling * Drilling risks 23z let 24S000 feet ve Ay \ Fa ‘5000 fet 255000 fee MAXIMUM DEVIATIONS + Long deviated wells ~ Land -Wytch Farm M16 - 37,100 ft measured depth — Land - Sakhalin Z-12 - 38,822 ft measured depth ~ Platform - Sacate SA-15 ~ 33,435 ft measured depth — Jackup - Maersk Oil Qatar Well BD-04A - 40,320 ft measured depth + The reason most subsea wells are not as long is because the dayrate for the floater is 3-5+ times that of a platform rig + Objective when laying out subsea field is to minimize the total cost of drilling and subsea facilities — minimizing either one at the cost of the other is counterproductive aT8 downhole gauges 6 swellable packers 4 Interval control valves Distributed temperature monitoring system Ss aaa a = Logo Br Maximum Reservoir Contact (MRC) Well 28“SEES telat come Geohazards 29Geohazards Shallow gas, hydrates, boulders, mudslides, faults, scarps, general bathymetry, wrecks etc. Sidescan sonar, shallow seismic Required to finalize field layout. Placement of foundations, well spud locations, and routing of flowlines. Usually have original seismic — which will give basic bathymetry, reprocess for shallow hazards Costs money ~ desire to wait until project is sanctioned — field layout not firmed up ~ late surprises - cost money. Classic chicken and egg dilemma. Operator usually elects for late surprises. Not usually possible for drilling. Need soil borings as well. Usually less critical. Hydrates more likely problem in Deep Water Hydrate Phase 7 Poundary Mudline ‘Temperature ——+ 30Distribution of Deep Water Gas Hydrates ‘Additional locations are identifed as exploration reaches deep water prospects previously unexplored Hydrate Related Problems + Soil failure as warming occurs during production. Probably compaction although some folks worry about expansion.. + TLP foundations and closely spaced well conductors require particular attention. Can be worked with well construction similar to that used in permafrost — costly + Can result in surface conductor failure 31Bathymetry + Flowline routing to avoid excessive spans and ensure on bottom stability « Positioning to provide advantageous profile for flowline blowdown and hydraulics. In a ideal world everything would run uphill. 32Pipeline rerouting with increased definition of bathymetry Red areas indication steepest gradients 3334,"Shallow gas forces relocation of western drill centers, 5 Well Count halved 35Flowline Routing * Rational for flowline design and whether or not dual flowlines are required developed in subsequent lectures. * Flowline routing highly constrained by installation considerations — Provision of suitable “corridors” for flowlines and umbilicals to avoid, or at least minimize, crossings ~ Minimum radii set by bottom conditions and other installation constraints Constraints + Riser Location — larger ines located amidships due to fatigue considerations ~ fanning — offloading or export destination ~ latger diameter tines might best be routed first + Topography — constraints set by flow assurance ~ greater impact possible if system is to be blown down for hydrate mitigation ~ shott ‘adverse" slopes generally acceptable = slugging introduced by terrain slugging often abated in subsequent sections of evel ine 36Constraints + Mooring problems can set extended export route — given your choice, let the export line route wait a bit since fluids will often be stabilized and some of the constraints for import lines mitigated + Often a desire to keep one side of the floater “free” to provide loading zone. Can lead to very awkward export line routing. Not really necessary in most cases, Prudent to avoid handing heavy objects over riser and seafloor lines. Problem alleviated by interfacing with topsides, design to eliminated possibilty of handling heavy loads over risers etc by design and placement of cranes. Interface between topsides design and riser location No possibility of handling loads keep one side of vss iar 37Constraints + Minimum radii for flowline curvature can become very large in deep water with poor soils, think 1000's of feet. This can lead to very long flowline runs. A possible answer is inline FLETS to facilitate abrupt direction changes. Switch from 1000’s of feet to 5D pipe bends. Minimum pipeline curvature Violates minimum bend 38Routing to comply with ‘minimum curvature Minimum pipeline curvature constraint Illustration of end of field life considerations driving design Implications for Subsea System + Flowline, pipeline and riser designs (hydraulic losses v slugging etc) + Potential tree designs ( differing tubing sizes although the tree bore is often smaller than the production tubing diameter) + Manifold designs (multiple pressure regimes) + Field layout (expandability/flexibility) 39tustration of end of field life considerations driving design Pressure Depletion Curve Gas Field Flowing Bottom Hole Pressure psig (Withdrawal at constant rate) IWustration of end of field life considerations driving design Flowrate and Cumulative Production Gas Field aw 360 500 § & 300 3 B 250 400 3 E 200 w0 EE 3 19 ge # 100 3 a 100 3 1 ge 2700 days = 0 to 8 0 2000 4000» 6000 | Time (days) ‘This curve is a function ofthe production rate 40Flowing Bottom Hole Pressure IMlustration of end of field life considerations driving design Pressure Depletion Curve Gas Field 0 100020003000 4000» 5000-6000, 3500 psig 2700 days, Days: Ilustration of en \d of field life considerations driving design meter / FBHP Relationship Pipeline 5 000 500 £6000 4 5 aso 4000 $5 sxco Z 2000 2 2500 pom 10 12 14 16 18 20 22 24 26 28 30 Line Diameter - (inches) 41Illustration of end of field life considerations driving design Flowrate and Cumulative Production Gas Field 500 400 300, 7A 200 100 2700 dats o 2000 4000» 6000 Time (days) a e & a = & 2 é @ 6 Cumulative Production o8 Ilustration of end of field life considerations driving design Pressure Depletion Curve Gas Field 3500 psig 2700 6898 Sapo nah 4000 days Bottom Hole Pressure psig ge s8 lowing Fl 42lustration of end of field life considerations driving design Pipeline Diameter / FBHP Relationship 10 12 14 18 18 20 22 28 26 28 30 Line Diameter - (inches) Jumpers Used to connect wells to manifolds, flowlines to wells, flowlines to PLEMs, FLETs etc. Often smaller diameter which leads to thermal problems Well jumpers usually can’t be circulated Carbon steel jumpers often require corrosion inhibition which requires additional metering and displacement Flexible jumpers address thermal and corrosion problems Flexible jumpers address minor misalignment problems but minimum bend radius make require consideration of connection location/orientation Jumpers installed with MSV, workboat, MODU 43.Connections ( & Jumpers) ‘Tradeoff with directional deiling Al Z f Jumeet goon AS “Design igs ($150K spreader bar + $200K hubs) “Fabrication ($300K ~insulated) RaW Joneer “Transport Vessel time jengti= 80 =.6-1.2$M feet ‘While an individual jumper may not be prohibitively expansive - a large 30 ~ 40 well field may contain 70-90 jumpers - something to think out when template systems are discussed. Host Facility Issues + Access for risers — may not get optimal route + Process capacity, availability of space + Capacity for slowdown + Priority — flare, circulation fluids, etc. + Electrical compatibility + Chemical storage + Control system interfacing + Training and operational preferences + Well cleanup + Fiscal metering and well test + TariffsSummary * Positioning of development components is a tradeoff between reservoir requirements and environmental factors + Metocean drives location of floating elements * Geohazards drive location of bottom founded elements * Combination can materially impact selection of field development concept ‘Summary of Overall field Architecture Design + Establish well targets and set tophole location; If used, set drill center locations + If moored rig is used set anchor pattern * Set functional requirements for flowlines + Select preliminary host location * Set flowline configuration and preliminary routing + Select routing for umbilicals and service lines 45Acronyms & definitions {2CF ~ Bitton (standard) cuble feet Misc mon standard cubic feet per dey (confusing, Sluts are Mscfo) FFGHP ~ foning botom hole pressure MODU- mode offshore cing uit FPSO — floating reduction, storage, and ofeading IOR~ increased O¥ Recovery EOR ~ Enhanced Ol Recovery SCR sel catenary riser SLORsingle log ofa sor APEX capil expendiure LET flowtne end termina (termination) PLEM- ppeline ond menifold MSV —muli-sonice vessel OV —remoely operated vehicle SSIMOPS ~ simvteneous operaone Batch ling & completon ~ drial the walle and then come back and complete all iol as opposed toa cil snd complete operation whore wel ls dled and Vien mediately completes 46Control Systems Types of control systems Hydraulic cleanliness Chemical injection systems Umbilicals HIPPS Functions of Subsea Control System + Hydraulic control — valve actuators, chokes, chemical injection valves + Chemical Injection * Telemetry — temperatures and pressure, valve positions, differential pressures (to measure flowrates), sand detection, corrosion monitoring, pig detection + Electrical Power supply — piloted valves, metering devices, pumps etcWhat gets Controlled and Monitored Types of Control Systems . ‘ “These have all been used but * Direct Hydraulic ‘are uncommon now ~ piloted hydraulic til used for BOP * Piloted hydraulic control * Sequenced here * Electrically piloted . hydraulic E + Multiplexed electrohydraulic ° “AIP Electric smarterDirect Hydraulic Control System Lower capital cost Valve closure times increase with offset, = milgated by quick dump valves ~ data retroval by alternative means = mostly used with imited offsets but systems in place at 20+ mile offsets Open loop system Valve exhausts crectly to sea = Saves cost of return core in umbilical ~ Environmentally suspect = Better closing times Closed loop system ~ Return fuids back to HPU = Lower operating costs — Higher inal cost; environmentally more flendly Umbilical gets unwieldy with too many wells Direct Hydraulic Control System = 7 a Resevake =p Lee “The tree valve is opened by setting the Control panel valve te the open positon directing high pressure hydraulic fluid from the HPU to the tree valve actuatorDirect Hydraulic Control System ‘The tree valve is closed by setting the Control panel valve to the close position allowing the hydraulic fd in the actuator to be displaced back to the reservoir (HPU) Electrohydraulic Control System + Most common choice for deep water multi- well developments « Numerous wells controls through modest umbilical + Provides comprehensive telemetryTopsides Components of Electrohydraulic Subsea Control System PU wes EPS aster Contet tation Eloi Power SupplySubsea Control Module (SCM) £32 control functions 24 extemal 4-20mA) electrical Sers6P tabu Fa 1200 t2bom SOEs rte wt rdw 1/990 at ote vio en Convers Brea. ben Suheea Electronics Module (SEM) Distribution Control Valves “oe ean our en ibeessueseo P= Hydraulic Supply Preseurs: ‘A= To Hydraulic Actuator ReHydraulie ReturnHydraulic Cleanliness TTR RTT glace Commonly specified |anlevel fr clfeld equipment Go| [ie on ten on ee eo "ile 2. te APC es alin cient Hod How Big are Micronic Particles? Nesisr@opacincst Gon) td Red Blood cel 8 White Blood Cells 250 ‘Smallest thing seen orkn by naked eye 40y of Salt Hunan Hair Particle of Fog 100u 70 50Hydraulic Coupling Male end female fitings sealed with poppet valves to Prevent seawater ingress ‘and leakage ‘As coupling laves mate, poppets are unseated to create flowpath Engagement maintained by external means Fibre Optic Connector Tronic controlled environment connector used for signal and power connectionsSubsea Sensors Pressure Temperature Differential pressure Valve Position Sand detection Corrosion Detection Pig Detection Flow Normely 4-20mA interface Subsea Control Module Mounting and Connection Electric} HydraulicChemical Injection Hydrate Suppression Methanol Monoethylene Glycol (MEG) Low Dose Hydrate Inhibitors Paraffin Inhibitor Corrosion Inhibitor Asphaltene Inhibitor Emulsion breakers Scale Inhibitor 10Scale Paraffin Corrosion Chemical InjectionChemical Injection MEG, Corrosion Methanol inhibitor ete | Work Stations ‘Sagbond Touchdown Point =< 11/22/2010J-lay System 2000 ton capacity ~ adjustable 45°- 95° 1o accommodate various weter depths. 4°= 36° pipe capability. 65m tal, 14m wide 11/22/2010Reeled Pipe Installation of Flexible Pipe Installation Is a rapid process, Installation can be accomplished with a variety of vessels Pipe transported on reels or carousel [Need to balance tensioner forses ~ too litle and ‘excessive bending develops ~ possibilty of siopage between outer sheaths and carcass ~ too much and pipe can be crushes 11/22/2010Surface Tow Used for riser towers (Girassol, Plutonio) Complex bundles... production risers and chemical injection lines...insulated using syntactic foam Riser assembled, tested at fabrication yard Launched and towed to the field Mid-Depth Tow Used for installing flowline bundles Fabricated onshore ... up to 6kms long but basically a function of yard length Bundle protected by carrier pipe, provides buoyancy Tugs control configuration Carrier pipe flooded - on-bottom stability = mechanical protectio1 11/22/2010 otBottom Tow + Used to install to install production fiowlines and flowline bundles — to 20+ miles in length + Bundles are fabricated on the beach and either pulled over the beach or launched sideways + Route survey major consideration, ensure bundles safely towe + Limitations: submerged weight, seabed friction, tug bollard pull, bundle stability, obstructions, curvature 11/22/2010 4211/22/2010 On-bottom Stability —- Trenching Design Codes Pipotines ‘API RP 1111 "Design, Construction, Operation, and Maintenance of Offshore Hydracarson Pipelines (Limit State Design), 3° Ed. 1999 (includes plosiine risers) ASME BS1.4 Pipeline Transport Systens fo Liquid Hygrorarbons and Other Liquides, Chapier ik ore Liquid Pipeline Systems," 1908 ASME 831.8 ‘Gag Transmission and Distribution Piping Systems," Chapter Vill "Offshore Gas Transmission’ 1998 PD8010:2004 Code of Practice for Pipelines DNV-OS-F101 Submarine Pipeline Systems Stool Risers APLERP 280 (1998) “Dosin of Riso fr Floating Produfion Systems (PSs) and Tension-Leg Platforms (TLPs), 1" Editon, 1888) ASME B31.4 & B31.8 (see ites above) ‘API RP 1111 (see tile above) DNV-0S-F201 Offshore Standard "Dynamic Risers” Flexible Pipelines and Risers ‘API Spec 17J Specifications for Unbonded Flexible Pipe (ISO 13628-2) [API RP 417B Recoomended Practice for Flexible Pipe (SO 13828-11) 13Risers Types Design Issues Riser Design and Decision Factors Fluid Compesition ( may drive selection of CRA materials, clad pipe etc — requires isolation of steel armour from bore fluids) Fluid Temperature ( can pose limit on use of flexibles = 130 °C) Internal and external pressures (ie 16” flexible limit = 300 bar) Achievable fatigue life Installation difficulty/time Timing and level of preinvestment required System complexity Synergies between flowline and riser installation vessels Potential for local content 11/22/2010 14Basic Riser Types ~ Single Log Offeot Flexible T Riser (SLOR) 1 “Decoupled from “High pressure, ‘Readily installable pled rom Hah pressur,wrge ‘good fatigue [deep water performance Low preinvestment in ‘Relatively easy to | | materiale “Some thermal design for good Mechanically simple benefits thermal “High local content performance : stise can bo uimitea | | “Possibtfy hich | |*Signifeant toad on by combinations of | | local content veseet yo Can be difficultto achiove required depth, diameter and | | “Complex aii femperature Costly eee a i ‘Relatively costly Harder toinstallas. | | costiyjinstallatir water dept at “on Iheeasee Harder to achieve [900d thermal performance Flexible Risers All North Sea FPSO risers are flexible. Good Fatigue resistance Relatively easy and rapid installation variety of configurations to suit various water depths and environments Limitations on diameter/pressure combinations 11/22/2010 15,SLOR Single Leg Offset Riser 11/22/2010Hybrid Riser Tower Steel Catenary Riser Used Extensively in deep water Inexpensive materials — expensive construction Elexdoint or tress Joint Either stee! or titanium 11/22/2010 17Vortex Induced Vibration problem wherever a cylindrical objectes is submerged in ‘fluid — (8 roason why excessive pipelin spans must be avoided) but especially severe in risr, TLP tendons etc. ‘Adiressed by accion of farings or strakes: Pipeline Expansion Function of pipe, temperatures, pressure profiles, soil friction Complicated problem, most of the expansion jill be absorbed by pipeline movement along it’s length - movement of the ends can be predicted but not with certainty EXAMPLE ~ 8"4 mile long infield line — 1* end 1.74”, 24 end 92° = 15 mile 10" - 1% end 1.76’, second end .64° ~ 22” 60 miles long 1* end .82° 11/22/2010 18PLEM Assembly Approximately 110,000Ibs. ‘After —p Markings every 3inches. Max. movernent today ~20 inches 11/22/2010Subsea Expansion Spool Piece Flange [Flange Jumpers + Used to connect wells to manifolds, flowlines to wells, flowlines to PLEMs, FLETs etc. * Often smaller diameter which leads to thermal problems. + Well jumpers usually can’t be circulated * Carbon steel jumpers often require corrosion inhibition which requires. additional metering and displacement 11/22/2010 2011/22/2010 Jumpers Flexible jumpers address thermal and corrosion problems Flexible jumpers address minor misalignment problems but minimum bend radius make require consideration of connection location/orientation iumpers installed with MSV, workboat, MODU The number of connections ( 70+ in a 40 well field) tends to focus attention on a $50 - $80 US$ millions expense 241Lift and Lower Jumper Tien Vessel Manifold with Difac Porch, Mac Connector in Placo 10 YoarsHorizontal Connection Makeup Large Cylinders on Toot orees alignment | Tooling places putlhead into capture zone of alignment Trunnion Flowline ConnectionHorizontal Clamp | Connection 1 Hydraulic Motor Jackserow Seat Plate Vertical ConnectionTypical Collet Connector MakeupSystem Configuration Satellite versus manifolded wells Template versus cluster wells Manifolding systems Manifold Functionality Inline wells Setting System Configuration Field Construction Delays in the engineering phase cost lttle real money Delays in field construction cost much more because of the investment already made in equipment Additional money spent to save time during field construction may only be justified if the probability of effective utilization Is high The installation of pipelines and manifolds will probably be on the critical path 14/22/2010Satellite or Manifolded Wells ¢ OO 2.9 mile teback in 885 ft water depth. First GOM 15k tree (1999). 6" steel flowline rated at 12,200 psi (WHSIP), flexible riser rated at 12,200 psi. Direct hydraulic control. 11/22/2010Satellite & Manifolded Wells Satellite Wells Tied back individually Usually straight holes Rig moves time consuming and costly Utilization of exploration and delineation wells, Smaller flowlines cool faster - may facilitate use of flexibles Might utlize simple control systems Manifolded wells + Reduced riser requirement + Ease flow assurance problems + Offer circulation and “communat" service, bulk chemical, and test line possibilities Template versus cluster wells Cluster Wells Wells Drilled Through Template Wells Drilled Around Manifold 11/22/2010Background of Templates * Earliest template designs addressed contemporary technology shortfalls in intervention and connection capability Early template designs reflected historical differences in philosophy concerning utilization of exploration (or delineation) wells ~ Drill good exploration or delineation wells and keep - supports satellite well design — Drill cheap wells and abandon - supports template wells Background of Templates Early installation techniques (inexpensive) abandoned as being overly risky — Exxon SPS using swing under drill vessel method ~ Shell “hydrodynamic cushion” installation of Lockheed Manifold center Heavy lift methods of installation proved costly Early designs ill-suited for deepwater application Enduring legacy of desire for MODU installed systems 11/22/2010SPS Template 1500 t Installed with Drillship Captain Template 11/22/2010Orman Lange 143'x107'x49"_ 1150 Te 11/22/2010VEGA 4 Run Through Moonpool 11/22/2010Statoil Lufeng Template Considerations Lower cost, faster, wal connections Protection against fishing, icebergs, etc Larger piping and close couipling assists flow assurance Reduces complexity of field architecture “Preassembled” system saves time in field construction, facilitates system testing 11/22/2010Cluster Well System Background of cluster well systems Fundamental drivers were flexibility — Less investment required initially allowed phased investment in face of uncertain oil prices — Smaller manifolds eased installation constraints At the outset, cluster well systems cost more but the perceived flexibility warranted the cost — much of the expected advantage never materialized 11/22/201011/22/2010 BP Thunderhorse 1011/22/2010Cluster Well Considerations + Smaller structure eases installation problems + May ease foundation problems + Wells can be pre-drilled and completed before manifold is fabricated + Wells can be dispersed to mitigate geohazard problems Decision Points for Selection + Number of connections to be made ( the greater number of connections as well count increases may be a factor) + Design Life + Flow assurance (thermal) + Locationiwork vessels available ( mobilization of HLV may be prohibitively expensive) + Schedule + Cost + Type of surface structure ( there may be an incentive for a subsea template to reduce riser loads) + Potential for external damage loads Multiple clusters systems are the dominant deep approach 11/22/2010 12Inline Wells 29° Inline Wells Inline wells are sometimes called “daisy chained”. If two lines are run by each well, the system is sometimes called “looped”. Inline systems eliminate the need for manifolds and accommodate lower cost straight holes. (but this doesn't capture any saving, such as rig moves, which might be achieved with deviated drilling) A dual line system can provide all the flexibility in operations that a manifold can provide plus flowlines that are piggable 11/22/2010Inline Wells It can be very difficult to lay out flowlines past. each well especially in deeper water — mooring spread ~ large radius of curvature (flowlines are sized larger) Larger flowlines may cause tumdown problems Installation of inline tees can be a problem with short interconnecting flowlines and in curved sections Can be a low cost solution for a limited number of wells in shallow water Flowbase for Daisy Chained Wells i 11/22/2010Setting the Field Configuration ‘There are many constraints on where wells can be spudded, where pipeline/umbilcal corridors can be established, operably, etc but a major ‘object of subsea system engineering is fo minimize the cost of the installed system ‘Subsea Faupnest ut the development io minimize the total of diling end SURF (Subsee Umbilials Risers & Flowlines) is an essontial element of system design ‘Soet breakdownts nominal nd wi vary widely among projects Deviated Well Location Mudtine Kickoff depth can vary ~ 800 ~ 3000 ft bevaton atuecan vary from= 100 ft upwards, Larger radil ‘generally favored ~~ Penetration through reservoir set by reservoir engineering ~ may vary from OF to 90" 11/22/2010 1541/22/2010 $648,000,00 Manifold Systems * Functionality * Alternative ApproachesManifold Systems Functionality Alternative Approaches Manifold Design + Manifolds can be either integral designs with all necessary functionality combined in a single unit or dispersed designed where functionality is split either between several smaller units or PLEMS. * DO NOT develop manifold design without consideration of installation — installation with MODU = 50t — installation with pipelay vessel variable but 200t+ 11/22/2010Manifold Functionality Collect produced fluids from individual sub sea wells Distribute fluids (water and gas) and chemicals, istribute the electrical and hydraulic control system elements Provide flow control for produced and injected fluids ‘Support and protect all pipe work and valves Provide an interface (connection provisions) for production pipeline, injection (water or gas) pipelines, well flowlines, chemical supply and test lines, and the control umbilical Provide support for ROV activities Manifold Functionality The peril in manifold specification is addition of “nice to have” features which cause escalation in weight with attendant installation problems In general, it would be desirable to keep manifold weight to a level where it can be installed by pipeline installation vessel without it driving selection of PLV 11/22/2010 18Well Testing Wells are tested for different purposes — understand the need before selecting method ~ Detection of water often important ~ qualitative and ‘quantitative not always required = Pressure buildups may be required in compartmented reservoirs ~ Chemical dosage may be adjusted — Mass flowrate often requested Wellireservoir monitoring Well testing = By difference — lost production - may suffer from liquid holdup problems ~ Permutation — requires dual flowlines - defeats object of reducing lines ~ Difficult for long distance tiebacks due to time required for stabilization Well Testing (cont) Test line often justified by alternative uses = Circulation = Turn down production (phased startup) = Bringing wells on ~ Facilitates production in different pressure regimes Multiphase meters — Manifolded wells ~ saves motors but may prove more expensive winen more compiex manifolding ad requirement tor remote valve control considered "o Individual meters ~ reduces failure impact ~ unit cost should ude calibration costs, Wall testing Software — One system with multiple commercial operations ~ Idun-P, roquires temperature and pressure measurements downhole and both sides of choke. = Uncertainty of + 15% Instrumentation drifts ~ Requires perioic fuid sampling to develop composition to Provide accurato phase donsitice 11/22/2010 19Fluid Sampling Roxar Multiphase Meter Multiple Flowlines + Possible reasons for multiple pipelines — Pigging — Well test Turndown ~ Dual pressure regime — Depressurization ~ Installation considerations — Circulation in thermally managed systems, * Design manifold for required functionality not to maximize use of dual lines 11/22/2010 20Manifold Functionality Inescapable function is to collect fluids Inescapable function is to isolate those fluids from the environment. Pressure cap. Isolation valve to create second barrier 4] . second isolation valve so there are two barriers when connecting Actuator added for flowtine isolation Manifold Functionality Turndown, Multiple Pressure,& Depressurization + Turndown doesn’t necessarily require very rapid switching of wells from one header to the other. Ifa long term affair (depletion) valves could be ROV operated. Multiple pressure — unlikely to require rapid or repeated changes Depressurization ~ reducing pressure behind hydrate plug — consider using ROV bleed from pressure caps or similar as a contingency measure 11/22/2010 21Manifold Functionality Pigging and Circulation Inspection, liquit corrosion inhi removal Pigging better done frequently than on ad hoc basis Circulation ~ on as needed basis ~ Planned or unplanned — Time is of the essence ~ Decision required on failure mode igging crossover valve ( open, eee orstabley (ope is removal, ion, deposition Pigging Crossover Valve + Normal function is to isolate headers * Matches header diameter leading to large size and very large actuator if other than fail stable + Failing closed may not be optimal if requirement is to circulate after unplanned shutdown * Normally possible t to equalize through pipelines — parallel bleed probably not a good investment 11/22/2010 2211/22/2010 Manifold Configuration EPH Pigging Crossover Valve + Normal function is to isolate headers + Matches header diameter leading to large size and very large actuator if other than fail stable + Failing closed may not be optimal if requirement is to circulate after unplanned shutdown + Normally possible to equalize through pipelines — parallel bleed probably not a good investment 23Isolating Headers Slab Gate Valve Wedge Gate Valve Split Gate Valve 11/22/201011/22/2010 2511/22/2010 26Manifold Control and Instrumentation Pressure and temperature useful for monitoring temperature (thermal management) and input to leak detection Control — Location of SCM depends on number of functions to be controlled / monitored — Flying leads from trees for few functions — Manifold mounted for multiple functions — argument about single point failure may be spurious Big Fields Get Bigger ~Big fields generate the revenue for additional data retrieval, more wells, and additional capital investment + When things go wrong in a small field operators has to walk away + Small fields are more risky and cannot sustain same level of investment 11/22/2010 27Expected Value + Expected value is the benefit, or cost, of something times the probability it will actually come about + In the National Lottery, 6 numbers are chosen from 49. You win if the 6 balls you pice match the six balls selected by the machine. What is the probability of winning the National Lotiery? + The number of ways of choosing 6 numbers from 49 is 4906 = 13 983 81 * Therefor the probabiliy of wiring the lottery is 1/13983816 = 0.000 000 071 5 ,which is about a 1 in 14 million chance. + The expected value of your E lottery ticket (assuming the pot is ‘million £) = 1,000,000 x .6000000715 = 7.15 pence. + With 2 draws each week, if you a buy a ticket for each draw, you will, on average, win the jackpot every 140 thousand years. Possible Way to View Pre-investment + Adgatamietempic! + purtadén anh pesspenminemanie —¢ Dota Rovppisteuerahig, | soledayscost + $4,000,000 today’s cost tite, 38,000,000 + Cost of operation i910 yoars —— time-'38,000,000 + Eapecte value o savings = 0 $2,000,000 = $200,000 Ovif vou use a 15% discount rate a: = * Present cost of operation = + Present cost of operation = $tassoo0 $1,938,000 + Expected value of operation = * FxBected cast of operation = Gapecrermegloneetons, ” iSRerSiS88 0007 818% too * Expected value of savings = $48,000 ‘You need to decide if epending the $1,000,000 fora ‘Brobable savings ot $£0,000 - 200,000 Is a good Investment. 11/22/2010 28icielemiratarstor Adding Equipment “just in ‘Sheewieedocse case” is not necessarily the empty eteleiot most effective manner in which fenenlinhcla, ore to deal with possible (as ‘Simone le opposed to probable) future Seen, . requirements Sitesi east = front end CAPEX increases TStpieleregrioatete which could endanger project amine t economi Sommansenagets - contingency additions Sect ettrecut ite design and may ‘Saini poaasaysotcamaan house failure modes which can ‘ccerguntbopecttie threaten production ‘ino eor tsps pee Scotto (Offshore Enginoer Nov 2007 Summary + Uncertainty during design phase can lead to demand for many contingency provisions + Contingency provisions can run counter to desire for simple, reliable, low cost system * Contingency provisions can compromise operability + Minimal preinvestment is a nebulous term — may be best to incorporate minimal provision and work out details when need arises. + Preinvestment in controls usually easier to justify than for gathering systems and pipelines 11/22/2010 29Acronyms GIGO ~ garbage in- garbage out ‘SCM — subsea control module HLV — heavy lift vessel MODU - mobile offshore drilling unit To ~ metric ton — tonne - 2254 pounds t= short ton - 2000 pounds. WI} water injection PLY ~ pipe lay vessel BOP - blowout preventor HIPPS — high integrity pipeline protection system HP — high pressure FLET —flowline end terminal (or termination) PLEM pipeline end manifold VG—Vetco Grey 11/22/2010 30Installation, Commissioning, and Intervention Installation 11/22/2010Installation - General Field construction scheduling has to be integrated with cling. The first problem is vessel interference especialy when moored vessels ate utlized. \Various approaches used — Batch diling and comaletion with field construction intervening ( Jong gap may alow favorable contracting stratogy) ~ SIMOPS (risk implications require dedicated study and SIMOPS ‘may nat lead to most efficient! ullization of vessels ~ can seve ‘mobizations) ~ Early completions (tree and contro foks don't realy ike having Lunutlized, or even unconnected, equipment on seaffocr for ‘extended periods) = Suspension of driling activity (costly uniess rig can be aivertod te dill exploration well in nearby location ~ tends to be absence ‘9 substantial durations unless rg is just ited — In largo folds ig ‘may move from location to location but this can be costly peration- moving off location and back on can consumo a Weeks rg time in deep water) Installation - General “The second problem is matching the equipment selection to the Installation vessels ‘Mobilization costs are most significant in greenfield areas but ‘scheduling can be difficult in areas of substantial activity Fipgline selection, especially in deepwater, and manifold sizing may be driven by installation vessel availabilty. ‘Costs saved by focusing only on dayrates can be lost by mobilization or adverse contracting position if only one or two vessels are capable of doing the work. Installation personnel should be involved from the outset of field architecture work and should be involved in equipment selection Interfaces, especialy those todo with field work are rarely straightforward. Classical dilemmas are who should build the PLEMs, what materials should be selected to ensure quality field welds, and what vessel ( MODU or dedicated installation vessels) should be used to install smalleritems. Installation vessel selection is a classical problem in risk ‘management; savings on dayrates can be lost i the vessel is unable to workin severe weather. 11/22/2010Installation — Manifolds and Jumpers + Up to some point, the pipeline installation vessel provides a useful vessel for manifold installation — check capacity of abandonment winch — capabilities in 400T range not uncommon for deepwater vessels + Avariety of methods, other than classical lift and lower, are available for installation of deepwater structures + Jumpers can be run from MODU or MSV but can just as readily be run from a workboat with a suitable winch and work class ROV. Problem is less one of comparability than cost + The number of connections (70+ in a 40 well field ) tends to focus attention on a $50 - $80 millions expense Lift and Lower Installation = J ‘Heavy Lif Vesse * Leveling System * Piled foundation o “Multiple, expensive, vessels Involved Cost +++ ‘impractical in very deep water because of length and weight of lowering line although utilization of synthetic rope 14/22/2010Abandonment/Recovery Winches The problom probably won't be winch capacity —it wll be rigging 11/22/2010SPS Template 1500 t Installed with Drillship 11/22/2010 SPS Installation Bis remanal vaoer 415 fps. é + Structure Leveled with Vessel Heave + Piles Installed Same as Surface Conductor Drill Vessel only major installation equipment requiredHeave Compensated Landing System (HCLS) 130,000Ibs in 7600ft of water on the Coloumb field Projected capable of up to 400,000Ibs in 10,000ft of water. “Swing Under” with Sheave 11/22/2010Pendulum Installation Structural Foundation ‘Manifolis, templates, skids ote founded to resist settlement, installation, and damage loads “sMudmats with shear skits or piles used depending on ‘magnitude of loads and soll characteristics 11/22/2010Jumper Installation Manifold with DMac Perch Mac Connector in Place 10 Years. ‘Jumper Te-n Vessel 11/22/2010inders on ‘Toolforee Alignment [EGR Mtonmene ins Engage weh Porch Vertical Jumper system with VG Clamp Connecters (ROV Torque) 11/22/2010VG Vertical connection tool for collet style connecter Spreader Bar 11/22/2010 4011/22/2010 ai11/22/2010 12Jumper Installation 11/22/2010Commissioning Objectives of Subsea System Commissioning Ready the system for transfer of responsibility from the project development team to the operator Verify that the system operates as designed Verify that the system has been assembled properly Compare system performance against preset standards Complete all necessary preparations for start up of the subsea system 11/22/2010Handover of Well ‘The exact order of operations will depend on overall field construction scheduling but in al cases the well be isolated during commissioning to prevent inadvertent operation of components by other than the ‘commissioning team Connect the well flowiine (could be jumper or direct connection to manifold) and controls connections (usually fying leads often with ‘Separate electrical and hycraulic connections) Isolate the well until the flowline connection and flowine have been hydrotested Power up and function test controls, Tree, SCSSV, and any associated ‘manifold valves function tested. Test ESD (Emergency Shut Down) system in all modes Dispiace trees and jumpers with hydrate inhibitor Dewater flowiines — production fowines dewatered to surface facilities, injection (water and gas) ines normally displaced to sea Commissioning of Subsea Hydraulic System The subsea hydraulic system will be powered up after the flowline, flowline jumper, and riser connection nave been completed and hydrotested Hydraulic system (systems if high and low pressure conduits are installed) pressure (leak) tested for several jours Valve operation will be verified — often by observing position indicators with ROV Operate valves from surface facility ~ check valve opening and closing times and pressure “dips” in hydraulic supply pressure Verify ROV operation of valves (torque tests) Leak test valves (various pressures and differential pressures) These tests wil replicate previously Conducted FAT (Factory Acceptance Tests and SIT (System Integration Test) tests Visually inspect assembled system 11/22/2010 15Commissioning of Flowlines and Risers Production and, if incorporated, gas injection lines will be dewatered — water injection lines which will have been hydrotested with inhibited seawater, will be displaced with treated water Risers will be hydrotested ~ any injection systems, such as riser base gas injection, are tested and any riser monitoring systems tested Flowline will have 24 hour hydrotest Flowlines will normally be pigged — not always with a gauge pig but usually for construction debris removal Valving on subsea system will be “aligned” for production start-up and any other preparations completed for handover to operating personnel Intervention 11/22/2010 16Well Intervention ‘A major element of production efficiency is the completions Subsea generally see as leading to lower ultimate recoveries ~ Theory is that workovers are delayed by rig mobilization times and costs (compared to surface wells ~ Cost argument should account for Initial investment and Inainienanes of surface well support and driling spread ime argument probably oval planning and procurement of consumables aid reassembly of el crew can take 66 month Economics somewhat dependant on development size ~ ‘small developments where wells are drilled and completed at Sulset are exposed @ greater potential economic penalty ~ Large developments where driling extends for years surfer lass singe MODU ean move over faled well quickly and there are no mmobiitzation costs ~ Project economics are heavly Influenced by production in early years Well Intervention [The only way to conduction major ‘workover operations ~ such as gravel Pack repair, sidetracking, recompletion Requires time for planning, procurement, and tig mobilization ‘Armajor workover might typically tako 60-90 days “Spread rate is much higher than fg ‘charter rate — day rate of $460,000/day ‘might escalate to $800,000+ by the time f [al other costs are included ‘These costs are a major driver for development of lower cost rigloss interventions ~ these cannot address all well problems but can be used for ‘minor (those where the tubing can remain Inthe well) workavers 11/22/2010 17What gets done in a subsea well 11/22/2010Conventional Workover Arrangement Horizontal Tree Well Intervention ‘The systematic appraisal of ‘equipment extends through the life of the eld Projection of wel intervention ‘requirements requires cooperation with reservoir and preduction ‘engineering ‘Troe selections impacts costs throughout the project Intervention costs impact fold life and ultimate recover 11/22/2010Subsea Riserless Well Intervention + Lower cost method for wireline and, potentially, coiled tubing intervention Major utilization to date for well abandonment and completion work + Should impa ‘equipment selection + Technology 30+ years old -fakeup has been slow buts beginning to show more widespread acceptance Wireline Tool String / \ \, : Fishing } iW } & Overshot Jar Knuckle Joint Weight Bar mites 11/22/2010 20Wireline Tools Spear Logging Toot Gas Lift Gas Lin Valve 11/22/2010 21Tubing Retrievable Surface Controlled Subsurface ‘Safety Valve 11/22/2010 22Helix Seawall Island Weltserver Light well intervention for StatoilHydro Light Well Intervention Vessels Subsea Squeeze Treatment “Dedicated package for offloading from support vessel ‘Injection package run on top of well or in tree access portal with deticated controls ‘Lowering system ypoalyeonsisting of strength member, conizol umbilical and 2 © 2" lines for chemical transport and ciculation 11/22/2010 23Intervention Pipelines and Wells IMR. Inspection, Maintenance, & Repair Remote Component Intervention 11/22/2010 24ROV Tooling Pipeline Intervention Non-routine sol tap Repair Routine sInspection Pigging Remotely operated Hol Tap ~ 860m ~ Ormen Lange fo te in new subsea template to existing , pressurized, infrastructure 23 11/22/2010 25Deepwater Pipeline Repair Damaged section removed and replaced with spool ‘Specialized tooling developed to meet particular pipetine requirements Equipment developed and tested 2s, ‘contigency measure to minimize system downtime Summary + Field construction (installation) requires well planned execution to minimize idle equipment and the gap between expenditure and revenue + Subsea well intervention is critical for production availability and costly « Evolving technology has the potential to reduce intervention costs and enhance the subsea alternative 11/22/2010 26SUBSEA PROCESSING — Game-Chenging the Way in which Oil & Gas Are being Produced in Offshore Deepwaters SUBSEA PROCESSING Oil & Gas exploration and production is venturing into deeper and deeper waters offshore —currently up to 3000 metres Subsea Eros expected to be one of the biggest areas of offshore technology growth in coming years. Atleast US$3.4 billion is likely to be spent of subsea processing systems. In most favourable condition could increase to US$5 billion.* Previously quoted as “one of most potentially promising technology development in the Offshore industry”, Subsea teces eit has now emerged as a game-changing technology, * + The Subsea Processing Gamachanger Report 2006 -2015, published by Douglas-Westwood and OTM, 2003 & 2006 11/22/2010Offshore - Oil and Gas Processing Topside Processing involves * Oil, water & gas separation + Single phase pumping + Multiphase pumping + Flow metering + Produced water treatment + Produced water re-injection + Gas compression + Gas re-injection 11/22/2010SUBSEA PROCESSING Subsea Processing involves: + Oil, water & gas separation + Single phase pumping + Multiphase pumping + Multiphase flow meter Produced water re-injection * Gas compression + Gas re-injection CCunsiicaion __Charactadate ___Equpnent__WatorDieporal__SandDisporal Type _|Hunietiwcts" | _tutonserae | Srurbediaetze | dam veasea haa Typea _[ftmasimes™ | "Emeeaee (tm | “OSES Types | SRR | eeraste,, |S | cae fom Sewers types |ercugrmeonw | ERE (nets | msm Subsea Separation + Subsea separation allows produced water and gas to be separated and re-injected back into the reservoir - free up space in flowlines and risers and eliminate the need for bulky topside separation equipment. + For new field development, it can provide very cost-efficient and environmentally friendly platform-less solutions, where the field is tied in to an existing offshore facility or directly to shore. + For maturing fields, subsea separation prolongs the use of existing infrastructures. 11/22/2010Subsea Gravity Separator FMC Techrologies Subsea Separator Subsea Compact Separation ie 11/22/2010 xo" Se sfSubsea Pumping Subsea multiphase pumping allows the well to produce at a much lower wellhead pressure - this allows increase productivity and recovery Boosting is applied to overcome pressure losses stemming from long pipelines and lifting levels and to enable flow regimes outside the slugging envelop Subsea multiphase pumps have been in successfully operation in different parts of the world for several years, providing increase oil recovery and production rate to their users. ‘Subsea pumping also allows produced waters (and sand) to be re-injected back into the reservoir without the need for water treatment 11/22/2010Oy (obtasy) 11/22/2010AkerKnaerver Subsea Pump Module Trae ay 8 ZiRhacs 0S torplate wih uses toaster pumps Inicgrated wth each 00 11/22/2010Hydril Subsea Multiphase Pump Module FRANO Brenda Manifold 1 MultiField Applicable ‘e Multivvell ‘¢ Multiphase Pumping Multiphase Metering ‘» MultiFinnction Control 11/22/2010Subsea Multiphase Flow Metering * Subsea multiphase flow metering improves flow assurance and flow management. It allows the operators to monitor accurately the rate of oil, water and gas produced and predict accurately subsequently production rates. Framo Subsea Multiphase Meter Roxar Subsea Meter 41/22/2010Subsea Compression + Subsea gas compression can help gas fields recover the remaining reserves. + For offshore deepwater fields where export of gas through conventional means is not viable, subsea compression allows the gas to be re-injected back into the reservoir for storage. This also eliminates the need to flare the gases make it more environmentally friendly. Subsea Compressor (currently being developed by FMC and Siemens <= 11/22/2010Framo Wet Gas Compressor einer Gemptetar Main Drivers for Subsea Processing Increased productivity Increased recovery — reduced wellhead pressure Improved flow assurance Reduced CAPEX and OPEX- reduce or eliminate topside processing requirements for well fluids, especially produced water, sand and surplus gas Zero environmental emission, e.g. instead of flaring, surplus gas can be re-injected back in the well to meintain pressure Longer tie-back distances - through better flow assurance and addition of energy fo pump the fluid over longer distances 11/22/2010 14Troll Pilot Station — for subsea bulk separation, boosting and water injection 11/221201011/22/2010 Tordis SSBI Module tgs FMC Subsea Processing SystemSchematic of FMC Subsea Processing System sa 2 Total’s Pacflor project, offshore South Africa 11/22/2010 14Benefits of Subsea Processing No need te lift all the well fluids, i.e. oil, water and gas up to the surface ‘or processing Increase production of oil & gas Improved recovery lower cost - No need to process and clean produced water atthe topside and then re-inject into the reservoir or discharge them overboar¢ Re-injection of produced water, sand and surplus gas can be done can be done at the seabed Environment frienclier — less power consumption and no flaring of surplus gas Massively reduce expenditure on offshore platforms WHAT NEXT ? 11/22/2010 15WHAT NEXT 2 DOWNHOLE PROCESSING | 11/22/2010UNDERBALANCE DRILLING Underbalanced Drilling + Conventional drilling practice has long been regarded as the safest method to dril a well. It calls for maintaining the hydrostatic pressure of the drilling fluid between the formation’s core pressure and fracture pressure. The Grilling fluid is continuously circulated within the wellbore to control the formation fluids and transport cuttings from the bottom of the hole to the surface. + However, conventional drilling practice has its drawbacks. As the drilling fluid pressure is higher than the natural formation pressure, fiuid invasion frequently happens, causing permeability damage to the formation. This damage is mainly caused by washout or physical blockage by the intrusion of the fluids and/or solids into the formation structure. 11/22/2010Conventional Drilling Mudceke, Underbalanced Drilling + Underbalanced drilling (UBD) is defined as the practice of drilling a well with the wellbore fluid gradient less than the natural formation gradient. It differs from conventional drilling in that the bottomhole circulating pressure is lower than the formation pressure, thereby permitting the well to flow while drilling proceeds. + Besides minimizing lost circulation and increasing the penetration rate, this technique has a widely recognized benefit of minimizing the damage caused by invasion of drilling fluid into the formation. In many UBD applications, additional benefits are seen due to reduction in driling time, increased bit life, and early detection and dynamic testing of productive intervals while drilling. It is critical to keep the well underbelanced at all times, if formation damage is to be minimized. 11/22/2010Underbalanced Drilling + Underbalanced drilling technology is a valuable method for minimizing formation invasion related problems. Because the majority of hydrocarbons today are found in existing fields with depleting pressures, or in complex and low quality reservoirs, the economical use of UBD becomes more and more popular. Most of the underbalanced drilling applications today are conducted through the use of coiled tubing systems. Forty percent of all the onshore wells drilled in the year 2000 were conducted through underbalanced conditions. Joint industry projects currently underway off the coast of Brazil will likely change the conventional driling practices in offshore applications. Underbalanced Drilling Underbalanced drilling techniques are classified according to density of the fluids used in the process. Typical fluid densities range from near 0 to 7 pounds per gallon. (Conventional cling fuid which is either a water-based or oil-based liquid varies from 7.8 to 19 pounds per gallon, contains a variety of solid and liquid products to impart density, fluid loss characteristics and rheological properties). In fresh-water applications, the density of the circulating fluid can be reduced by nitrogen gas injection. This, reduced density helps to achieve a bottom hole circulating pressure that is less than that of the formation pressure. Even conventional liquids can provide underbalanced conditions with proper density control of the driling fluid. On the other hand, itis also possible for a low-density fluid to cause overbalance due to the frictional pressure drop. 11/22/2010Underbalanced Drilling + Underbalanced driling has proved to be an economical method for driling in depleted/iow pressure reservoirs. + Since itis possible to record production during driling, operators can easily and accurately identify inflow mechanisms and pay intervals, and cease drilling ‘operation as soon as the target zones are identified. “Underbalanced driling technology can save the industry millions of dollars by increasing the amount of recoverable oil within a shorter time frame". Underbalanced Drilling + One method of controlling the bottomhole pressure (BHP) is to use a choke at the surface. BHP is controlled by opening or closing the choke to lower or raise the standpipe pressure. + Since the speed of a pressure wave through a static fluid column is equal to the speed of sound in the same medium, a lag time is experienced until the choking action at the surfaces reaches bottomhole. + Estimating the lag time in a single-phase system is relatively easy, whereas the same calculation in multi- phase systems can be quite complicated. 14/22/2010Underbalanced Drilling + Instead of using a choke, the BHP can also be controlled by adjusting the Equivalent Circulating Density (ECD). + This technique essentially creates an increasing fluid density gradient between the surface and the bottomhole. If the casing is set at a shallower depth, ECD is preferred over choke pressure control. Since ECD is a function of flow, underbalanced conditions should be preserved by controlling the hydrostatic head when flow siops during connections. + The greater the flow resistance, the higher ECD will be, On the other hand, it can also create an opposing condition when pipe is pulled out of the hole, causing a swabbing effect. Underbalanced Drilling + There are three primary types of fluids used in underbaianced drilling operations: — Gaseous (Compressible) — Two-phase — Liquid (incompressible) + The fluid type is dictated by the boundary conditions of the drilling system. Typically, the boundary conditions are defined by bottomhole flowing pressure, formation fracture pressure, borehole collapse pressure and formation pore pressure. The density range of various driling fluids is summarized in the following diagram. 11/22/2010Density range of various fluids for UBD ‘URL: hitovvaaisazone.cominewsinsiahvinsight 592i Wd=26. Underbalanced Drilling + Gaseous drilling fluids — — The oldest and most basic technique is dry air drilling, which involves pumping air down the drill string and up through the annulus. A rotating wellhead between the BOP and rotary table is used to divert the returns. The cuttings are sent away from the rig via a discharge pipe, and a water spray is used to kill dust at the outlet. A flame is used fo burn any returning hydrocarbons. ~— Nitrogen is another common drilling fluid. Other inert gases are too expensive to be used in this process. — Natural gas is also a drilling fluid option, since itis easily available from pipelines. — 3000 ft/min is the minimum velocity for effective cutting transport. 11/22/2010Underbalanced Drilling + Two-phase drilling fluids: — Two-phase drilling fluids, or lightened drilling fluids, consist of either foam-type fluids or aerated drilling mud. Liquids are mixed with gas to achieve a required circulating fluid density. — A pump is used {0 inject liquid into a gas stream before it enters the well. The small liquid droplets effect the behavior of the circulating gas. If more liquids (2.5% - 25%) are introduced, then a foam phase is generated in which the liquid forms a continuous structure, entrapping the gas bubbles inside. ~ Onee the liquid volume exceeds 25%, itis no tong a foam structure. This next level comprises aerated. drilling muds (fresh water, brine, diesel or crude Underbalanced Drilling * Liquid drilling fluids: ~ Since formation pressure is usually larger than the hydrostatic pressure of fresh water or saline water, conventional drilin underbalanced conditions. Even ifthe drilling fluid density exceeds the formation pore gradient, fluid loss into @ formation can cause reduced pressure regions within the wellbore, thus allowing formation fluids to flow in. 11/22/2010Underbalanced Drilling + Advantages of underbalanced drilling: ~ Maintaining wellbore pressure below the reservoir pressure allows reservoir fluids to enter the wellbore, thus avoiding formation damage. Since significant formation damage is avoided, the stimulation requirements during well completion are also reduced, leading to considerable savings. — During underbalanced drilling there is no physical mechanism to force drilling fluid into the formation drilled, Therefore, lost circulation is kept to a minimum when fractured or high permeability zones are encountered. ~ Drilling underbalanced can help in detecting potential hydrocarbon zones, even identifying zones that would have been bypassed with conventional drilling methods Underbalanced Drilling + Advantages of underbalanced driling (con't): — Due to the decreased pressure at the bit head, UBD operations demonstrate superior penetration rates compared to conventional drilling techniques. Along with reduced driling times, an increase in bit lfe is typically reported. ~ Since there is no filter cake around the wellbore wall, the chances of differential sticking are also reduced. — Since conventional drilling fluids are not used in underbalanced drilling applications, there is no need to worry about disposing potentially hazardous drilling mud. + Acombination of all these factors can significantly improve the economies of driling a well, UBD is often preferred if it reduces formation damage and hole problems, and reduces the cost of stimulation in fractured or moderate/high permeability formations. Moreover, with good mud logging and drilling records, UBD can provide valuable Formation Evaluation data. 11/22/2010Underbalanced Drilling + Disadvantages of underbalanced drilling can prove detrimental fo the outcome of the drilling process: = There is a higher risk of blowout, fire or explosion. — Underbalanced driling is still an expensive technology. Depending on the driling uid used, the cost can be significant, particularly for extended’ reach horizontal wells, ~ Itig not always possible to maintain a continuously underbalanced co Since there is not a filter cake around the wellbore, any instantaneous pulse of overbalance might cause severe damage to the unprotected formation. — UBD has its own unique damage mechanisms, such as surface damage of the formation due the lack of heat conduction capacity of underbalanced ailing lids, ~ Itis more complicated to model and predict the behavior of compressible drilling fluids. 8 Underbalanced Drilling + There are several major technical factors that restrict the application of underbalanced drilling techniques: — Reduced wellbore pressure gradients can cause hole stability problems ~ Formation of mud rings can block air flow, leading to downhole fires — Water causes cuttings to accumulate, possibly causing the drill string to stick. If aerated mud is used rather than air, differential underbalance can be reduced. — Hydrocarbons and air often mix to achieve a flammable range. With a small spark, which can be generated by the contact between the drill string and. hard minerals, the risk of fire increases. ~ Stable foam condition is not easy to achieve. 11/22/2010DUAL GRADIENT DRILLING Dual Gradient Drilling + A solution to water depth related challenges + A form of managed pressure drilling + Removes the impact of water depth + Fewer strings of casing to reach total depth us Gasent Daag Casha Progr 11/22/201011/22/2010 Dual Gradient \\ | eee tired || Seawater Above ree If i i nin AAD Een Tete Fou 226508 Why Does It Work? RKB Conventional wud Hydrostatic Dual Gradient Mud Hydrostatic Hydrostatic Pressure, pst ———> 1Seafloor Depth Casing Points ~ Conventional seo Hydrostatic 5 Casing Points ‘Single Gradient Density at TD Fracture Pressure Pore Pressure Pressure ———+ Snip Abe Enea Teas Fon 2-08 Seattoor Casing Points - Dual Gradient oeaifeter Hysrostete 4 Casing Points uel Gredient Density at TD Pore Pressure Pressure ———> sin ADE cre Taseoges Fons, 228008 11/22/2010 12Casing Points - Dual Gradient 3 Casing Points Seatloor ual Gradient Density at 7 Depth seasfeter Hydrostatle Pressure Application of Dual Gradient Drilling: Potential for Elimination of Casing Strings in Complex Wells Potential Well Plan Actual Casing Program with DGD Application ‘seasny ga rey code (es enates tat 200 ‘ecrnlogy bean Saale 11/22/2010 13,rll eting Vaive (OSV) ‘SubSea Mua Driting (S10) Fld test system show here uaderging facary aecept- ance esting will soon bain itll ial nth Gulf of Maven i aout 1,00 eof water. 11/22/2010THROUGH TUBING ROTARY DRILLING Through-Tubing Rotary Drilling A cost effective technology to increase tail production and particularly attractive for improving oil recovery from ‘subsea fields Permits offshoot wells (sidetracks) to be drilled sideways: from a parent well by cutting through the production liners and sometimes through the production casing. As sidetracks are drilled below the production packer, and with the drill pipe conducted through the tubing, neither the tubing nor christmas tree need to be removed Useful for accessing pockets of isolated oil and gas in mature fields approaching tail production Also possible to minimise borehole lengths and avoil drilling problems in overlying formation by sidetracking in reservoir intervals. Potential cost benefits of US$1.5 to 3M compared with conventional sidetracking. 11/22/2010 15,Through Tubing Rotary Drilling + The application of ‘slimhole’ Through Tubing Rotary Drilling (TTRD) and Subsea Through Tubing Rotary Drilling (SSTTRD) can be an extremely cost effective method of accessing reserve which otherwise might have been uneconomically to develop. By utilising existing wells in mature reservoirs, infill wells, stranded or near well bore, reserves can be accessed through the existing completion tubing, which is particularly attractive in a high cost subsea environment. Through Tubing Rotary Drilling Advantages and Benefits + Save time and cost — no pulling of tubing or subsea tree + Safer operation Save drilling and completion cost ~ deep kick off point Lower cost compared to convention drilling operation Increase income from each well Extends the life of the well Enable production from marginal fields Maximizes production from marginal fields Decreases operational time 11/22/2010New Technology » New Technology can take a long time to become commercially successful + New technology isn’t always gigantic leaps forward + New technology can sometimes be based on traditional ideas + New developments can create many openings for advanced technology Why some oilfield technologies are adopted more readily than others 11/22/201011/22/201011/22/2010 "280-~ 343 m water cepth 143 km pipeline ‘Subsea gas compression ‘considered for 2013-2021,11/22/2010 StatoilHydro Ormen Lange ‘850 ~ 1000 m water depth 100 km pipeline Very rough seabed ‘Compression 2013 - 2021 Technology developed to meet ch A Subsea Wet Gas CompressionDownhole fluid conditioning, Gas compression Gas dewatering Downhole gas compression ‘O11 Water Separation Downhole pumping has an ‘extended history on land and is gradually being lized subsea — there Is substantial incentive downhole fuic conditioning in deepwater ‘developments to enhance recoverable reserves Downhole Oil Water Separation Marginal Fields Any prospect which isn’t “economic” to produce — much of most operators portfolio falls into this category Field size isn’t the determinator — it’s the development cost and the price of oil As any province matures consideration of these prospects becomes more intense Adoption of lower cost, albeit perhaps not as flexible, technology can enable some of these prospects 11/22/201011/22/2010 Typical Conventional Well Casing Program "A annul completion ‘id technelogy being rediscovered” ‘Smaller holes —faster less ‘expensive driling = ‘Savings on‘consumables ‘Well cost reduced 80-50% Significant reduction of contingency possiblities Significant reduction of ‘workover possibilty Knock-on effect in terms of ree design 4) Great tecinology for marginal, especially short Ife, evelopmentBasic Equipment Industry “standard” horizontal ree Basic Concentric Tree with universal hanger Use of very basic equipment *Does less ‘Costs less *Most importantly ~ saves rig time Back to Basics Tree Simple tree which ‘doesn't pretend to do everything but meets indusby standards Run ondill pipe Costs sbout half of what 2 “conventional” tree does Well completed through Gril pipe which saves days of rig time Total savings are millions of dollars 11/22/201011/22/2010 Cascade and Chinook Helix ProducerLife of Field Seismic Monitoring f Life of field Seismic Monitoring Monitoring long-term performance and development of subsea field Facilitates periodic (one year or less) 40 seismic survey of reservoir to monitor fluid movernents ~ more frequently than, conventional towed array seismic Permanent array on seafloor connected to topsides recording system - remote monitoring readily possible F770) Sensors spaced 50m apart on seafoor, all connected by optical fore. trenched of ii at anchored to ensure solid contact ‘Shooting from standby vessel with airgun array designed to radiate energy in all directions a 11/22/2010Ballgrab (First Subsea Ltd) Mooring Connectors to 2500te Autonomous Subsea Control + Arelatively old idea which has resent been icented as @ priority development area Previously addressed in saver ways SPARCS 2 Kvaerer Soveopmert eater See er Guaton and aossc orci = Aaytem montored ret natisnenlon by an AO = Aetevatst eee eytan corte oy 2 uapencatr Featured eater hyareus) Plagued by enduring need for_ Spica Lop ad ators of acoustic telemetry. 11/22/2010 10Brinker Technology Leaks sealed by Piatelets® which ‘are custom designed for various applications Used for sealing pipaline and umbtlical tube leaks, leaks in well casing, tubing, valves and Jconnections. Facilitates diagnostics for leak location, size and shape Expediient repairs with minimal kit | Addresses a serious problem, either as a temporary or Permanent fix which would Jotherwise require a major subsea operation. ‘echnology Removal of diesel and {richlorosthane from soll~ BP North Stope ~ 60-90% reduction Wang fs 107 + Nearer applicatons Enhanced cil recovery Improved separation Passive coatings for extreme condllione = Nano-enhanced materials ~ flexible ceramics [Near welfare logging Welbore sensing and control water shutoft = Filters: = Weight reduction + Longer term applications ‘Active coatings - leak detection - repair Reservoir monitering fluid tracking 11/22/2010 4Autonomous Intervention Reconfigurable AUV for Intervention Missions (RAL!) Lower Gost intervention Elimination of tether and garage systems (deep water advantage) Potential to reduce control system costs Synergism ofinspacton, maintenance, and repair functions Seml-Autonomous Underwater Vehicle for Intervention Missions (SAUVIN) Radio Frequency Identification (RFID) Technology has been available for many years but slow uptake in offshore business Tracking of components for quality and inventory control Tracking of rental tools Identification of subsea components Monitoring drill pipe location and utilization 11/22/2010 12AGR Field Operations and Flexlife Lt Subsea Water cleanup + Works at depths over 6,000 ft + Ensures compliance + Flexible and portable * Treats a number of constituents since it can be operated with different cleansing media + ROV installable with replaceable cannister + Treats water to standerd it can be released subsea Subsea production Allocation + Most marginal fields will be tied back to existing infrastructure with multiple owners and multiple fields. The different tax positions require accurate allocation. + Ifthe third parly entrant can measure and allocate his ‘own fluids he will protect his own volumes and will also be ina betier position ta manage his reservoir. + The older JOA's allow up to 10% accuracy in the reallocation of well fluids. It soon adds ups, + Subsea metering becomes a necessity 11/22/2010 13,Balmoral FPY Bclnoral/Beauly POlsmais and Stiringallovatianby well ests Brena and Nicel Combinsd by topsides WPFIA Nicol Brandaavoratianby ‘subsea MPFI Brends-ouners: sOlexce soosuy, ‘Dilexes—7080% “Conacophilips 42.00% ‘Bn 2.00% Flexible Pipe Condition Monitoring *ROV deployable ultrasonic scan over entire pipe *Annulus gas monitoring 11/22/2010Summary + It is need, rather than novelty, which ensures adaptation of new technology + Adaptation of technology, from surface operations or other fields, may yield useful subsea products * Changing circumstances can warrant review of older technologies +» Low risk, money saving, technologies can be adopted readily 11/22/2010 15