Bringing our experience in offshore modularisation,transport and installation to meet shallow water oiland gas field global requirements

Artificial islands - Surface facilities

Engineering and technologies

The concept of ArtificialIslands was considered andhas been introduced in asmall number of projects

Artificial islands as an alternative towellhead platform field developments

One globally known technology for the shallow water fields development is based on fixed wellhead platforms.In some instances, further development with traditional platforms has proven complicated and not economicallyviable due to the number of facilities and subsea pipelines involved in a congested area and the multiple number ofwells. The concept of Artificial Islands was considered and has been introduced in a small number of projects ofvarious sizes (Alaska, Arabian Gulf, Beaufort Sea and North Caspian regions).

Technip’s involvement in surface facilities design As an Engineering, Procurement and Construction contractor of choice, we are able to propose and implement modularand structural design for artificial islands, in a wide variety of marine environments, be they the shallow waters of warmerclimates, or the harsh environment of Arctic regions.

Our teams have built up experience in the modularisation and specific foundation concepts (pile types, pile caps,shallow foundations) through a number of projects successfully delivered in the Middle East and the Caspian Sea:

Kashaghan Concept Phase: feasibility studies to progress concept optimisation and to carry out full fielddevelopment planning

ADMA OPCO Sarb project: pre-FEED studies to determine the economic viability of the Sarb facilities on Zirku Island,as well as the proposed location of the Sarb processing facilities

Zakum 750 Island Project: FEED for islands facilities up to 100,000 tonnes modules and structures

Our knowledge of the offshore and shallow waters projects leads us to include at earliest design stage the marine andlay-out constraints and specific transport / installation methodologies. Furthermore, our involvement in Arcticdevelopment allows us to transfer our experience in designing artificial islands in the Middle East to ice harsh regions.

Its development so far has been done from as many as100 wellhead steel platforms with an intricate network ofsubsea pipelines. Further expansion through a steelwellhead platform-driven development plan would provehighly complex and costly. After careful analysis, fieldoperator ZADCO made the decision to have four artificialislands built, which will allow the use of extended reachand horizontal drilling for optimal reservoir contact andlong horizontal completions, thus resulting in a significantincrease in field plateau rate and production reliability.

Technip as the main actor of thistechnological prowess In March 2010, ZADCO awarded Technip an engineeringservices contract for the following:

Front-End Engineering Design, scheduled to becompleted in the second half of 2011 for process unitson four artificial islands, including gas separation, gas liftcompression, booster gas compression, as well aspower generation, utilities, interconnecting pipelinesand modification of existing facilities.

Procurement of long lead items.

ABU DHABI

Persian Gulf

OmanGulf

Dubai SharjahAjman

Al Fujayrah

OMAN

OMANSAUDIARABIA UNITED ARAB EMIRATES

UpperZakum

Ra’s al Khaymah

Umm al Qaywayn

Key informationOperator: ZADCO (ADNOC: 60%, ExxonMobil: 28%,JODCO: 12%)

Location: 84 km offshore Abu Dhabi in the ArabianGulf

Water depth: between 5 to 15 meters

4 artificial islands: Central Complex and South, Northand West satellite platforms

Reserves estimated at 50 billion barrels of oil.Currently producing 500,000 bopd, with target ofincreasing production to 750,000 bopd by 2015

Production target for at least 25 years with ultimaterecovery of 70% of proven reserves

Upper Zakum 750K project: a turning point in field development strategy

The Upper Zakum oil field covers1,200 km² and was discovered in the early1960’s. It is the world’s fourth-largest oilfield with a very long expectedoperating life, almost 100 years. It is alsoone of the major offshore fielddevelopment projects in the UAE.

Artificial islands - Surface facilities

Kashagan Field Development: full field development planning

The Kashagan oil field was discovered in 2000 and is oneof the largest discoveries in this decade. It is estimatedthat the Kashagan Field has commercial reservesbetween 9 billion barrels and 16 billion barrels of oil.

The challenges were many:Shallow water and harsh environment, with winter seaice and frequent temperatures of -35°C to -40°C

Protected marine habitat conditioning pipeline routeto shore, shore approach and onshore plant locationto ensure minimum disturbance to the seabed

Limited infrastructure for export of significantquantities of oil

Sour gas

Offshore developmentIn 2003, on behalf of Agip KCO, we proceeded with a study to carry out field development planning for the fullKashagan field development. Issues addressed covered:

Stragegy location: plateau production rate, transition from early production plant to full field development, exportroute and specifications, gas disposal

Island facilities optimisation: number and location of drilling centres, processing requirements and equipment sizingand costing

Specific technical studies: multi-phase flow, acid gas injection

Key informationOperator: Agip KCO

Shareholders: international consortium underthe North Caspian Sea Production SharingAgreement: Eni (16.81%), Shell (16.81%), Total(16.81%), ExxonMobil (16.81%), KazMunayGas(16.81%), ConocoPhillips (8.4%), Inpex (7.56%)

Location: Northern Caspian Sea, 80 kmsouth-east of Atyrau (Kazakhstan)

ATYRAU

Caspian Sea

Volga River

KASHAGAN

0 50 100 km

KAZAKHSTAN

RUSSIA

The first phase of the Kashagan FieldDevelopment will involve producing up to450,000 bopd from 3 blocks. The nextphase will provide production increase upto 120,000 bopd by the end of 2014.

The island and surface facilities concept offer significant advantages

The overall end benefits in

terms of CAPEX and OPEX of

the surface facilities on artificial

islands make it a viable solution

to answer the requirements for

development or brownfield

expansion of extended wells

fields.

Client benefits

The concept of artificial island baseddrilling and production facilities canbe evaluated relative todevelopment of field or expansionof traditional steel piled structure.

Client advantages:

Footprint much larger than aplatform, thus allowing phasedstructures installation, space forfuture industrial requirements,and greater flexibility inequipment change / maintenanceand also for well monitoring

Field development strategy basedon a few drilling / productioncentres (i.e. artificial islands)instead of numerous newwellhead platforms

Cost-effective for shallow waterdepths construction

Flexibility to capture up-sidepotentials during field life cycle

Enhanced field operability atlower OPEX

The sound combination of valueengineering and constructionmanagement competencies allowsus to propose full turnkeyprogrammes to achieve clientobjectives in term of production,QHSE and offshore operations andmaintenance.

This document is the property of Technip and is not intended to be a binding contractual document. Any information contained herein shall not result in any binding obligation on the part of Technip, or any of its affiliates,and is provided for information purposes only.Technip - Group Communications - September 2012 - Photo credits: Technip

HEADQUARTERSTechnip89 avenue de la Grande Armée75773 Paris Cedex 16 France Phone: +33 (0)1 47 78 24 00

Offshore Product LineBrian ROBERTSPhone: +33 1 47 78 25 37E-mail: baroberts@technip.com

Sébastien CLAEYSPhone : +33 1 47 78 28 77E-mail : sclaeys@technip.com

www.technip.com

When considering an Artificial Islanddevelopment, the following criteria areto be considered to minimise impact onthe environment

The environment

Island location

Island construction methodto reduce the impact ofdredging activity

Assessment of the bestroutes and islandconfiguration to optimisefuture vessel traffic andlogistics

Assessment of impact onbiodiversity: marine faunaand flora, absence of coralreefs or protected species,reclaimed land / unusedformer equipment providingnestling opportunities etc.