Project Execution and Operation of The World's First FDPSO - Azurite

Project execution and operation of the worlds first FDPSO Azurite
- Claes W. Olsen, Prosafe Production
Content
Introduction
Project overview
FDPSO specifics
Project execution
Operations
Lessons learned
The future
Summary
Company Profile
One of the worlds leading FPSO contractors
Fleet of 11 units, including
Large Gas FPSO (ca 20,000T topside)
Worlds first FDPSO
Harsh weather disconnectable FPSO
Two FSOs
VLCC conversion candidate
Solid project execution and operational

experience built over more than 20 years
Proven proprietary turret/swivel mooring

technologies, including dis-connectable turret
Excellent operational uptime (>99%)
Excellent HSE records
Cost efficiency, innovative solutions and sustainable growth

3
Global Presence
- Vessels
- Offices
Amsterdam
FSO ENDEAVOR
(India)
Cyprus
FSO MADURA JAYA

(Indonesia)
Houston
FPSO ESPOIR IVOIRIEN

(Cote D'Ivoire)
Mumbai
Abidjan
Lagos
Singapore
FPSO CIDADE DE SAO MATEUS

(Brazil)
Pointe Noire
Vittoria
Rio de Janeiro
FPSO NINGALOO VISION

(Australia)
FPSO UMUROA
(New Zealand)
Perth
FPSO POLVO
(Brazil)
New Plymouth
FPSO ABO
(Nigeria)
FPSO PETROLEO NAUTIPA

(Gabon)
FDPSO AZURITE
(Congo)
Safety First Always
Lost Time Incident Frequency

against Million Man-hours
1,6
1,4
1,2
0,8
0,6
0,4
0,2
2006
2007
2008
2009
Prosafe Production Project Safety Statistics 2006 - 2009
The Azurite Field Development delivered without Lost Time Injuries !

5
FDPSO Azurite - A Success
Murphy Oil Corporations President and CEO, David M. Wood:

The Azurite project marks an innovative approach to
minimizing the cost and maximizing the value of a
deepwater development. Production from the field will
continue to ramp up for the remainder of the year as
additional wells are brought on stream.
Source: Press Release , 10 August 2009
Key Project Milestones
Concept definition late 2006
Long lead items placed early 2007
Left shipyard January 2009
Ready for drilling April 2009
First oil August 2009
Fast track project execution in a heated and challenging market environment
FDPSO Specifics
260,000 dwt VLCC conversion
Oil Production:
40,000 BOPD
Gas production:
75 mmscfd
Water injection:
60,000 BWPD
Oil storage:
1.4 mmbbls
Accommodation:
136 POB
12 line active spread mooring solution
Modular drilling derrick capacity:
1,250kip hook load
Top Drive: 500T x 1,150HP

Simultaneous drilling, production and water injection
8
FDPSO Design Process

Prosafe Production
Murphy Oil
Experience
Nabors Drilling
Innovation
Cooperation
Well
intervention
Production
&
Drilling
Integrated
FDPSO
Concept
A unique concept based on proven technology and entrepreneurship

9
Strong Project Partners

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

- Vessel R&LE and conversion + drilling modules integration
Nabors Drilling
- Modular drilling equipment set + drilling services
Kencana, Malaysia
- Provision of topside modules
Det Norske Veritas (DNV)

- Classification and design reviews
Licence partners PA Resources and Socit Nationale des Ptroles du Congo

10
Offshore Installation Phase
Field located in 1,400 m of water depth
80 nautical miles offshore
12 line active spread mooring system
3 flexible risers (2 prod + 1 WI) connected

to subsea manifold
Good planning and close co-operation

between involved parties
Offshore hook-up / installation

management by Prosafe Production
Installation campaign offshore Congo done in record time of 8 days
11
Field Layout
12
Simultaneous Operations
Simultaneous drilling and production
Drilling services by Nabors
All other operations done by Prosafe Production
Coherent HSE philosophy
Operations and maintenance managers in country
Training program for national employees
All support activities managed locally
A strong in-country presence ensuring safe and efficient operations
13
Lessons Learned
The general challenges of a heated market
Interpretation of class rules for new concepts
Optimization of drilling and FPSO yard
integration work
Definition of interfaces drilling/production
Freeze of conceptual designs
Close co-operation between Operations and

Project teams a key to success
Communication over time zones

Optimizations will be realized during the next FDPSO project
14
FPSO - Demand
Pipeline of floating production

projects continue to grow
Drivers for F(D)PSO concept

remains intact
Leading indicators point to

strong long-term demand
Supply side decreasing
No. of FPU projects in planning stage

170
134
141
143
Jul-08
Nov-08
156
160
Mar-09
Jul-09
119
Nov-07
Mar-08
Nov-09
Source: IMA
Bright long-term outlook
15
Leading Indicators
Brent oil price high for several years
Oil price has remained

high for several years
(except of a few
months late 2008/early
2009)
Deepwater drilling
activity is set to remain
high for several years
to come
Deepwater drillers high activity level expected

180
Available
160
Contracted
140
50
120
Rig years
100
97
110
132
80
60
Positive leading indicators
81
40
97
112
101
89
74
62
20
40
0
2009
2010
2011
2012
2013
Source: First Securities
2014
2015
16
FDPSO Drivers
Implications
Main Challenges
Deep
waters
Increased
exploration
in difficult
areas
High cost for production and

drilling units
FDPSO Benefits?
Yes
Lack of infrastructure
Remote
areas
Marginal
fields
High cost for mobilization of

drilling rigs
Short lifetime of fields and need

of well intervention capabilities
Yes
Yes
Marginal
fields
Needs for early production and extended life of fields are important drivers
17
Future Drilling Market
18
18
Commercial Benefits of FDPSO

Dayrate of FDPSO vs. Drilling Unit and FPSO
Lower combined cost of drilling and

production*
Accelerated production
Drilling rig + FPSO
450,000
Dayrate in USD per day
USD 300k/day vs. USD 470k/day

(FDPSO)
(Drilling rig + FPSO)
500,000
400,000
350,000
300,000
FDPSO
250,000
200,000
Topside drilling rig removed from FDPSO
150,000
100,000
50,000
FDPSO production from 1st well

FPSO production from arrival of FPSO
0
Arrival of FPSO
Sample Production Profile

FDPSO vs. Drilling Unit + FPSO
60,000
* Indicative rates for 1,500 m drilling rig, single hull

FPSO with 1.5 mill bbls storage in benign area, 50,000
bopd, 50,000 b/d water inj., Spread moored, 15 year life
50,000
Oil Production b/d
Lower cost of logistics and

consumables
Time
Completion of drilling
40,000
30,000
FDPSO
Drilling Unit + FPSO
20,000
10,000
Benefit from accelerated production depends

on timing of arrival of FPSO
0
0
20
40
60
Months
80
19
100
19
FDPSO Competitiveness
Benefits from fast tracking the field development
Availability and cost of drilling rigs
The length of the drilling program, and need for future wells
The number of wells that can be drilled with active spread mooring
The complexity of the wells and need for future well intervention
Benefits from simultaneous drilling and production
Benefits from a phased field development (EWT period, EPS etc)

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

FDPSO design and project execution
Co-operation with modular drilling package providers
Delivery of different sizes modular rigs
- Well intervention
- Well completions, in-fill drilling/side-tracks

- Full drilling capacity
Simultaneous operations
- Including drilling and well services
Split of responsibilities dependant upon client and contractor team

- Experience and capabilities
Prosafe Production will expand the range of FDPSO services
21
Summary
A unique FDPSO successfully delivered
Exceptional safety performance

World class operational performance
Cost efficient solution

A Catalyst for marginal, remote and deepwater fields
Expanding the range of FDPSO services
Optimizations of the next project execution
FDPSO Azurite An innovative stepping stone for the industry

22
Thank You for Your Attention
23

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Project execution and operation of the worlds first FDPSO Azurite

- Claes W. Olsen, Prosafe Production

One of the worlds leading FPSO contractors

Fleet of 11 units, including

Large Gas FPSO (ca 20,000T topside)

Worlds first FDPSO

Harsh weather disconnectable FPSO

VLCC conversion candidate

Solid project execution and operational

Proven proprietary turret/swivel mooring

Excellent operational uptime (>99%)

Excellent HSE records

Cost efficiency, innovative solutions and sustainable growth

FSO MADURA JAYA

FPSO ESPOIR IVOIRIEN

FPSO CIDADE DE SAO MATEUS

FPSO NINGALOO VISION

FPSO PETROLEO NAUTIPA

Safety First Always

Lost Time Incident Frequency

Prosafe Production Project Safety Statistics 2006 - 2009

The Azurite Field Development delivered without Lost Time Injuries !

FDPSO Azurite - A Success

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

Key Project Milestones

Concept definition late 2006

Long lead items placed early 2007

Left shipyard January 2009

Ready for drilling April 2009

First oil August 2009

Fast track project execution in a heated and challenging market environment

260,000 dwt VLCC conversion

12 line active spread mooring solution

Modular drilling derrick capacity:

1,250kip hook load

Top Drive: 500T x 1,150HP

FDPSO Design Process

A unique concept based on proven technology and entrepreneurship

Strong Project Partners

Keppel Shipyard, Benoi

Det Norske Veritas (DNV)

Licence partners PA Resources and Socit Nationale des Ptroles du Congo

Offshore Installation Phase

Field located in 1,400 m of water depth

80 nautical miles offshore

12 line active spread mooring system

3 flexible risers (2 prod + 1 WI) connected

Good planning and close co-operation

Offshore hook-up / installation

Simultaneous drilling and production

Drilling services by Nabors

All other operations done by Prosafe Production

Coherent HSE philosophy

Operations and maintenance managers in country

Training program for national employees

All support activities managed locally

A strong in-country presence ensuring safe and efficient operations

The general challenges of a heated market