Subsea System for Deepwater

SUBSEA SYSTEMS FOR DEEPWATERNeil SmithBusiness Manager, Field Development Mustang Engineering / J P Kenny

Deepwater Seminar, Perth, Australia

22 February 2005

Contents

Systems integration the key to success Deepwater design process Thermal management of subsea and pipeline systems Recent and current projects

Examples of J P Kennys Deepwater ProjectsAsia PacificKikeh Murphy Oil Malaysia (1,300m) Stybarrow BHPBilliton (800m) Scott Reef / Brecknock Woodside Energy (500m) Enfield Woodside Energy (550m) West Seno Pipelines Unocal Indonesia (1,000m) Malampaya Flowlines Shell Philippines (850m) Laminaria/Corallina Woodside Energy (400m)

Gulf of MexicoRed Hawk, Gunnison and Boomvang Kerr McGee (up to 2,000m) Seventeen Hands Murphy Oil (1,700m) Durango, Navajo East, West Kerr McGee ( 900m) Neptune BHPBilliton/Marathon ( 1,890m) Shenzi BHPBilliton ( 1,310m) Llano Shell(Enterprise) ( 793m) Marlin BP ( 990m-1,585m) NaKika Export Pipelines Shell (1,585m 2,400m) Magnolia Export Pipelines Shell (1,341m) Madison, Diana/Hoover ExxonMobil ( 1,426m) Mica ExxonMobil ( 1,326m) Aspen Subsea Development BP (1,000m) Atlantis Project BP (1,900m) Holstein Project BP (1,200m) Mad Dog BP (1,800m)

Africa/Middle EastAngola Block 31NE BP (2,000m) Bonga Shell (1,100m) Tiof Early Production System Woodside (1,100m) Deepwater Gas Development - BP Egypt (800m) Dalia - TotalFinaElf (1,500m) Shah Deniz BP Caspian (650m)

Systems Integration The Key to Success

Monocoque Construction

Radial Piston Engine

Flaps

Retractable Wheels

Variable Pitch Propellers

What Happened To The Boeing 247?

Systems Integration Comparative Outcomes

Boeing 247First Flight Component Technologies 1933

Douglas DC31935

Monocoque Construction Radial Piston Engine Variable Pitch Propellers Retractable Wheels Flaps > more engine power > economic viability Number Made Still Flying Today

o o o o

o o o o o 10,655 >1,000

76 none

Why Is This Relevant to Deepwater?

The clear and deliberate consensus of producers, service companies and deepwater technologists is that 50 to 80 percent of the potential reduction .. lies in the business of integrating technologies together rather than applying individual technologies themselves.Offshore Technology Roadmap for the Ultra Deepwater Gulf of Mexico, US DoE , Nov 2000

Individual technologies are important, but its about how well you put it all together holistically.Richard Sears, VP Shell Deepwater Services, SPE Deepwater Workshop, September 2003

The Subsea Design Process for Deepwater

Conventional Design Process

Well target locations Field layout Functional requirements Process and control architecture Define components Procure components Install components Transient hydraulics Operating procedures Operate system

Steady state hydraulics

Deepwater Design Process Example 1Well target locations Functional requirements

Field layout Process and control architecture Define componentsNeed more insulation

Steady state hydraulics

Procure components Install components Transient hydraulics

Different installation spread

Hydrates risk in steady state operation

Operate system

Operating procedures

Deepwater Design Process Example 2Well target locations Functional requirements

Field layout Process and control architecture

Increase insulation

Define components Procure components Transient hydraulicsImpact on installation

Revisit chemical distribution, add hot oil circulation

Steady state hydraulics

Install components Operate system

Operating proceduresImpractical Pigging frequency For wax removal

Thermal Management of Subsea Pipelines and Risers

Thermal Management

JIP established by the Energy Institute in UK steering committee includes BP, ChevronTexaco, ConocoPhillips, Shell, Statoil and TotalFinaElf. J P Kenny commissioned to prepare a Guideline for Thermal Management of Subsea Pipelines and Risers (draft issued March 2004) Quote from Guideline summary:Despite extensive and time-consuming full-scale testing prior to installation, the thermal performance of some systems installed to date has not met design expectations

Recent Thermal Management FailuresRoot CauseIncorrect weld design of pipein-pipe field joint Failure of novel gel insulation in flowline bundle during operation

ConsequenceFatigue failure leading to rupture High convective heat transfer in bundle annulus

Outcome for ProjectReplacement of 30km of 16/22 PiP flowline Significant reduction in thermal performance Significant reduction in thermal performance Loss of WI system functionality and bundle carrier integrity Expensive remedial alterations to component design while manufacturing in progress

Seawater flooding of flexible Seawater ingress to foam pipe carcass during operation insulation layer Bottom-of-line corrosion failure Burst of bundle carrier pipe of WI flowline in encased bundle Cold spots in subsea system Unacceptable reduction in discovered after procurement system cooldown time of affected components compared to design transient analysis

Thermal Management Principal conflict is between a Flow Assurance preference to maintain a high flowing temperature, and a Mechanical Design preference to reduce it Mechanical design issues exacerbated by high operating temperatures and thermal cycling include: Expansion forces and displacements Fatigue Corrosion Lateral/upheaval buckling Detailing of field joints, waterstops and bulkheads for pipe-in-pipe and bundled systems

An integrated cross-discipline approach is needed to achieve a balanced design solution

Recent and Current Deepwater Subsea Projects

Client: Murphy Sabah Oil Co Ltd Project: Kikeh Field Development Location: Malaysia

400m+ bbl recoverable field in 1,300m water depth New deepwater province Sabah, Malaysia J P Kenny/Mustang team performed concept screening, pre-FEED and FEED, encompassing FPSO, Dry Tree Units and subsea wells and gas export pipeline. Subsea scope: Field architecture layout and cost optimisation Detailed subsea cost estimates Definition engineering and specifications for all subsea equipment ITT preparation and bid evaluation for EPC contracts

Scope managed between Perth, KL and Houston offices Fast track schedule was achieved with less than one year between concepts evaluation and award of EPC contracts

Client: Shell Deepwater Services Project: Bonga Field Development Location: Nigeria

FPSO/subsea oil development in 1,100m water depth. Individual insulated pipe-in-pipe production flowlines, steel catenary risers, polyethylene lined pipes for water injection and bundled flexible gas lift risers. Subsea system scope included: Conceptual design of field architecture Conceptual review of flow assurance issues and development of hydrate mitigation Detailed estimates for subsea hardware expenditure and field development schedule ITTs for Trees, Manifolds, Control Systems, Connection Systems, Flowlines and Risers Tender evaluation, contract negotiation and management of pipeline and riser EPIC contract

Achievements Developed economic evaluation model (FOCUS) integrating reservoir, drilling, completion and pipeline issues Attributed by Shell to have removed months from development schedule due to excellence of conceptual engineering and study management

Client: Shell Deepwater Services Project: Bonga Field Development Location: Nigeria

J P Kenny developed the FOCUS service to deliver integrated layout optimisation by linking GIS model to economic model Rapid evaluation of options for field architecture on NPV basis (well deviations, number of drill centres, flowline concepts) Optimisation of selected layout Major contributor to value optimisation phase of project

Client: Samedan Oil Corp Project: Lost Ark Subsea Development Location: Gulf of Mexico

26-mile subsea tie-back to a host platform on the shelf. Lost Ark field located in East Breaks 421 and 464 in 825 m water depth. Single flowline scheme engineered to minimise CAPEX without compromising operability Complex flow assurance analysis defined chemical injection requirements J P Kenny was responsible for all facets of the project, including detail design, procurement, installation coordination and project services

Project management support enabled project to be completed within 12 month schedule

Client: Kerr-McGee Oil and Gas Corp Project: Gunnison Subsea Development Location: Gulf of Mexico

Durango/West Gunnison : 2-mile subsea tie-back of two wells East Gunnison : 1-mile tie-back of one well. Both utilise the Gunnison Spar as the host platform. Located in Garden Banks 667 and 668 blocks in approx. 1,000 m water depth. Subsea scope: Verification of field architecture conceptual design by performing flow assurance simulations and system engineering. Procurement and installation support

As their subsea partner, we have helped our client to achieve upper quartile performance in all their developments Project savings achieved by efficient procurement of key components

Client: BP Indonesia Project: Terang Sirasun Batur Development Location: North Bali Basin

FPU/subsea gas field development located in North Bali Basin approximately 1 tcf recoverable in four accumulations Integrated geohazards engineering programme during project pre-FEED phase led by J P Kenny Geophysical survey, hazards mapping and engineering impact assessment performed in parallel Quantitative risk analysis (facilities, wells and completions) Scope expanded to include FPU conceptual design and transient flow assurance analysis Field layout and facility concept reconfigured to improve risk / operability profile Innovative use of 3D visualisation technology

Client: BP Angola Project: Block 31 NE Development Location: Angola, West Africa

Development of four adjacent oil reservoirs over 15 x 30km area in approximately 2,000m water depth J P Kenny currently performing Pre-FEED Study of SURF system Options under evaluation include Integrated, Grouped and Phased development schemes Technical issues:Single vs looped production flowlines Flowline lateral buckling and pipe walking Flowline materials vs topsides chemical injection requirements Well deviation vs subsea layout Gas disposal Value assessment of pumping at riser baseVnus

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gas expo rt pro ductio n w ater in jectio n gas in jectio n

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Field layout being developed in GIS format to enable later optimisation using J P Kenny FOCUS system

SUBSEA SYSTEMS FOR DEEPWATERNeil SmithBusiness Manager, Field Development Mustang Engineering / J P Kenny

Deepwater Seminar, Perth, Australia

22 February 2005