MOPSU Brochure

Early Monetisation of Stranded Assets Early Monetisation of Strande ee

BACKGROUND

Offshore oil and gas field developments typically adopt the “satellite principle", where existing pipeline network and production facilities in the vicinity are used to minimize CAPEX The remaining unexploited fields are often located in remote locations with little or no infrastructure and of a size or nature that often makes it impossible to predict with certainty the amount or composition of recoverable hydrocar-bons in place

These fields are often referred to as small, marginal, unconventional reservoirs or stranded assets. It is widely acknowledged that econom-ics of exploiting stranded assets are easily affected by changes in basic economic param-eters such as capital expenditure, time to first oil, operating costs, production levels, recoverable reserves and even abandonment costs which can have a major effect on the profitability of the venture If a field is marginal because of the uncertainty over the level of reserves, a period of pre-production often referred to as extended well testing will give additional reservoir information and will reduce uncertainty thereby leading to improved decision making

Field owners or operators should be able to exploit these so called stranded assets in an incremental, optimal and cost effective manner

There is therefore a need for a solution that offers the following:-

• Minimum CAPEX for the field owner or operator• First oil or gas in weeks to optimise cash flow – Improving IRR• Extended Well Testing (EWT) to deter- mine reservoir profile• Minimum risk & development costs from optimal data evaluation• Operate in water depths of up to 120 metres• Fit-for-purpose to produce small hydro- carbon reserves• Operate with crude oil production rates as low as 2,500 bpd • Economically viable where recoverable reserves are as low as 5 million barrels • Flexible to cater for uncertainties surrounding remote field developments

MOBILE OFFSHORE PRODUCTION AND STORAGE UNIT (MOPSU™)

The International patent pending MOPSU™ offers field owners and operators solutions for all of the above and more. Unlike other systems that rely on drilling rigs, separate wellhead platforms, pipelines or an FSO, the MOPSU™ uses an optional modular drilling rig, integral storage and a MOPSU™ installed detachable wellhead platform with the entire system (with the exception of the wellhead platform) fully recoverable and reusable

This technology, a ‘game changer’, will provide oil and gas industry complete solutions and set new paradigms in the development of offshore oil and gas fields using cost effective systems and facilities. The “Design One, Build Multiple” concept provides significant benefits on delivery times and costs

The MOPSU™ paves the way for future hydrocarbon extraction in remote green fields and to assist in enhanced hydrocarbon recovery from existing brown fields

UNIQUE ADVANTAGES OF THE MOPSUTM

Early Production System (EPS)

Produce As You Explore - During the exploration phase, a Drill Stem Test (DST) string can be deployed and the well completed with a subsurface valve used to flow in or shut the well. Pressure gauges will be installed down hole to measure changes and typically, instead of using a production tree, DST well control equipment will be utilised

Drilling and well appraisal, including extended well testing can be performed with this configuration and production during this period can be stored and offloaded to shuttle tankers. Based on the results from the testing, recoverable reserves can be computed and full scale development strategy can be formulated. This will then determine the number of wells to be drilled and optimal process facilities required, making it a fit-for-purpose solution. If results of the appraisal and testing do not warrant a production facility at the site, the DST string can be retrieved and the MOPSU™, including the drilling template, can be redeployed to another suitable site

Using Reusable Integrated Unit capable of drilling, production, evaluation, storage & offloading in remote locations

Optimal design for production from extended evaluation & interpretation

Operators of small fields can now produce with minimumcapital, minimum risk and optimal facilities

MOPSUTM a driver for incremental fielddevelopment

Produce As You Explore. First Oil in weeks withminimal production facility

Conventional design & thinking won’t work

Development often only possible through early monetisation of reserves and pushing the technology envelope

The size and location require additional up-front anaysis to determine optimal design

Overdesign kills economics

Minimum Capital

Minimum Risk

Extended Well Testing

Fit-for-Purpose

Flexible

If the field is found to produce above initial expectations or if other hydrocarbon deposits are found to be present in close proximity, then the wellhead platform which is an integral part of the MOPSU™ can be detached easily from the MOPSU™ and independently hooked-up to central processing facilities or pipeline network as the field evolves in size

Minimum CAPEX and OPEX

Typically, conventional wellhead platforms are constructed based on assumptions on the likely outcomes of ultimate hydrocarbon recovery. This method has often resulted in over design and sub-optimised platforms resulting in unnecessary capital expenditure for the field owner/operator

Considerable savings can be achieved by deploying the MOPSU™ instead of installing a conventional wellhead platform for operation in conjunction with a MOPU and an FSO. Imme-diate CAPEX savings can be realised as heavy lift vessels or jack-up rigs are not required for the installation of the MOPSU™ and the MOPSU™ site-installed Detachable Wellhead Platform (MDWHPTM)

The integral crude and condensate storage and offloading facilities eliminate the need to install pipelines or deploy an FSO. Savings can also be achieved in OPEX since there are no pipelines or FSO to operate and maintain and less coordina-tion as all the facilities are being accommo-dated on a single platform. At the end of field life, huge savings can be recognised since aban-donment of the production and storage facility involves only jacking and mooring operations

Scalable

For low production rates the MOPSUTM can be used independently. For higher production rates, especially in the initial years, it can be used in conjunction with an FSO which will be demobilised when production declines

EXPECTED RECOVERABLE RESERVES (RR)

& FLOW RATES LOW

MOPSUTM + MDWHPTM

RECOVERABLE VOLUME RELOCATE MOPSUDEPLETE RESERVOIR

RR or FLOW RATE

RELOCATE MOPSUTM

Add FSO

Meets Basic Development Viability Criteria

LowerAs expected

Higher

Flow Rate HigherRR Higher

Phase 1

Phase 2

RR & Flow Rate Higher

Upgrade MDWHPTM to Full Facilities

Install Pipelines to CPPin Vicinty

Add FSO

Drop in FLOW RATE

RELOCATE FSO

SIGNIFICANT BENEFITS

• Immediate CAPEX savings on wellhead platform and pipeline/FSO• Self-installing – No requirement for Heavy Lift Vessels for the installation of substructure and topsides• Facilitates extended well testing and early production • Fully assembled at fabrication yard / quayside and wet-towed to offshore site• Re-locatable, making incremental field development or re-use attractive, with negligible environmental impact• Integral production storage provided in the foundation mat• Drilling can be done with modular drilling rig, tender assisted rig or jack-up • Modular drilling rig is suitable for both exploration and production

• Self-supporting detachable wellhead platform for attachment to conventional platforms or to pipeline network if further development is envisaged• Fixed installation which floats only during mobili- sation and demobilisation, therefore no requirement for marine classification • Packaged equipment philosophy to develop topsides facilities, allowing flexibility to change processes • Removable strand jack system is used to lower the mat and to elevate the deck, eliminating the need for permanent jack-houses, which require periodical maintenance • Platform-deployed mooring hawser and crude transfer system for offloading to shuttle tankers; no subsea offloading connections

MOPSUTM MK1 SpecificationsM E T O C E A N

Water Depth (max.) 80m MSL

Tides HAT = MSL +1.7m LAT = MSL -1.4m

Storm surge +0.6m, -0.3m

Air gap 11.0 m

WAVES, WIND & CURRENT

Operating Extreme

storm Cyclone

Max. Wave Height,

Hmax (m) 8.7 13.0 11.5

Assoc. Wave Period,

Tass (sec) 9.3 11.4 10.7

Significant Wave

Height, Hs (m) 4.7 7.0 6.6

Period, Ts (sec) 7.9 9.6 9.9

Peak Period (sec) 9.2 11.2 10.5

Zero Crossing Period (sec)

6.5 8.0 8.2

Wind Speed (m/s) 17 23 30

Current Speed (m/s) Surface Mid-depth Seabed

0.7 0.5 0.3

0.8 0.6 0.3

1.0 0.7 0.3

F A C I L I T I E S

Function EWT / EPS / Optimal Production

Topsides payload 2500 MT

Hull dimension 40m x 40m x 6m (nominal)

Deck area 1800 sq m

Hull tanks capacity 1435 cu. m for fuel oil, drilling mud, brine, chemicals, lube, seawater & potable water

Processing 12,000 bpd (standard) 45,000 bpd (enhanced)

Crude storage 90,000 - 200,000 barrels

Crude offloading 100,000 – 200,000 barrels per day, via floating hoses & mooring hawser deployed from hull

Cranes 2 nos. - 30 MT and 50 MT

Power 2 x 1.3 MW

S T A B I L I T Y / F O U N D A T I O N C A P A C I T Y

Mat bearing capacity 1 year return (operating) 100 yr return (extreme storm) Cyclone conditions

2359 psf 2752 psf 2517 psf

Factor of Safety - Overturning 1 year return (operating) 100 yr return (extreme storm) Cyclone conditions

> 1.30 (ABS req.) 3.68 2.72 1.82

Factor of Safety - Sliding 16.05

D R I L L I N G / W O R K O V E R

Supports self-contained, tender assisted & jack-up rigs

Self-contained modular rig Working load / push / pull Pipe handling Operating singles Top drive torque / speed Pumping capacity BOP

Norsok and UK regulations 350 - 400 sT hook 2.5” – 20” Up to range 3 (45ft) 42 - 85 kNm / 150 - 190 rpm 4200 l/min 13 5/8”, 5000 - 10,000 psi

L E G S

Number of legs 4, circular

Internals Piping, insulation, access

A C C O M M O D A T I O N / A C C E S S 20-man (standard)

Living Quarters 40-man (enhanced)

Facilities Radio room, offices, galley, dining, hospital, laundry Sikorsky S-76 (standard)

Helideck Sikorsky S-92 (enhanced)

Boatlanding 3-levels

J A C K I N G S Y S T E M Drilling Unit Rack & pinion

Production Unit Strand jacking

APPROVAL IN PRINCIPLEAMERICAS DIVISION

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