Early Monetisation of Stranded Strande Assets e

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 hydrocarbons in place These fields are often referred to as small, marginal, unconventional reservoirs or stranded assets. It is widely acknowledged that economics of exploiting stranded assets are easily affected by changes in basic economic parameters 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 determine 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 hydrocarbon 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

MOPSUTM a driver for incremental field development

Conventional design & thinking wont 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 Using Reusable Integrated Unit capable of drilling, production, evaluation, storage & offloading in remote locations Minimum Risk Produce As You Explore. First Oil in weeks with minimal production facility Extended Well Testing Optimal design for production from extended evaluation & interpretation Fit-for-Purpose

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

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. Immediate 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 coordination as all the facilities are being accommodated on a single platform. At the end of field life, huge savings can be recognised since abandonment of the production and storage facility involves only jacking and mooring operations

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
EXPECTED RECOVERABLE RESERVES (RR) & FLOW RATES LOW
Meets Basic Development Viability Criteria

MOPSUTM + MDWHPTM

As expected

Lower

DEPLETE RESERVOIR

RECOVERABLE VOLUME

RELOCATE MOPSU

Higher Flow Rate Higher

RR Higher

RR or FLOW RATE

Add FSO

RR & Flow Rate Higher

Phase 1

Add FSO Drop in FLOW RATE Upgrade MDWHPTM to Full Facilities

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
Phase 2

Install Pipelines to CPP in Vicinty RELOCATE MOPSUTM 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 mobilisation 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 Specifications

METOCEAN
Water Depth (max.) Tides Storm surge Air gap WAVES, WIND & CURRENT Max. Wave Height, Hmax (m) Assoc. Wave Period, Tass (sec) Signicant Wave Height, Hs (m) Period, Ts (sec) Peak Period (sec) Zero Crossing Period (sec) Wind Speed (m/s) Current Speed (m/s) Surface Mid-depth Seabed 80m MSL HAT = MSL +1.7m LAT = MSL -1.4m +0.6m, -0.3m 11.0 m Operating 8.7 9.3 4.7 7.9 9.2 6.5 17 0.7 0.5 0.3 Extreme storm 13.0 11.4 7.0 9.6 11.2 8.0 23 0.8 0.6 0.3 Cyclone 11.5 10.7 Factor of Safety - Overturning 1 year return (operating) 100 yr return (extreme storm) Cyclone conditions Factor of Safety - Sliding > 1.30 (ABS req.) 3.68 2.72 1.82 16.05

STABILITY / FOUNDATION CAPACITY

Mat bearing capacity 1 year return (operating) 100 yr return (extreme storm) Cyclone conditions 2359 psf 2752 psf 2517 psf

DRILLING / WORKOVER
6.6 9.9 10.5 8.2 30 1.0 0.7 0.3 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 Supports self-contained, tender assisted & jack-up rigs

LEGS
Number of legs 4, circular Piping, insulation, access

FACILITIES
Function Topsides payload Hull dimension Deck area Hull tanks capacity Processing Crude storage Crude ooading Cranes Power EWT / EPS / Optimal Production 2500 MT 40m x 40m x 6m (nominal) 1800 sq m 1435 cu. m for fuel oil, drilling mud, brine, chemicals, lube, seawater & potable water 12,000 bpd (standard) 45,000 bpd (enhanced) 90,000 - 200,000 barrels 100,000 200,000 barrels per day, via oating hoses & mooring hawser deployed from hull 2 nos. - 30 MT and 50 MT 2 x 1.3 MW

Internals

ACCOMMODATION / ACCESS
Living Quarters Facilities Helideck Boatlanding 20-man (standard) 40-man (enhanced) Radio room, oces, galley, dining, hospital, laundry Sikorsky S-76 (standard) Sikorsky S-92 (enhanced) 3-levels

JACKING SYSTEM
Drilling Unit Production Unit Rack & pinion Strand jacking

AMERICAS DIVISION

APPROVAL IN PRINCIPLE