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NOVOTEL LONDON WEST • LONDON, UNITED KINGDOM • 2-4 APRIL 2019 Seabox™ and SWIT™ - Subsea water treatment and injection Extend field life and increase oil recovery using subsea water treatment and injection Torbjørn Hegdal Seabox AS

Seabox™ and SWIT - MCEDD

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NOVOTEL LONDON WEST • LONDON, UNITED KINGDOM • 2-4 APRIL 2019

Seabox™ and SWIT™- Subsea water treatment and injection

Extend field life and increase oil recovery using subsea

water treatment and injection

Torbjørn Hegdal

Seabox AS

© M C E D e e p w a t e r D e v e l o p m e n t a n d G u l f Q u e s t L L C2

Headlines

• Seabox™ extended testing completed June 2018, demonstrating superior performance compared to topside solutions

• Seabox™ in operation since September 2018 at Ekofisk for ConocoPhillips, testing reservoir

• SWIT™ (sulfate removal) system testing ongoing.

• Seabox™ at TRL 6, SWIT™ at TRL 6 second half 2019

• Seabox™, the backbone and enabler for long term and reliable performance of membranes (SRU)

o Clean water a pre-requisite for long term and maintenance-free operations of membranes

• Opens for new ways to develop new fields and optimizing existing fields – all subsea or in combination with topside

© M C E D e e p w a t e r D e v e l o p m e n t a n d G u l f Q u e s t L L C

Seabox™ and SWIT™

Tailored water

• Removing sulfate

• Reducing salinity

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© M C E D e e p w a t e r D e v e l o p m e n t a n d G u l f Q u e s t L L C

Seabox™ and SWIT™ technology

• Water for matrix flooding, sulfate-free water and low-salinity water

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Intervention Intervals (years)

4 2.5 5 2.5

© M C E D e e p w a t e r D e v e l o p m e n t a n d G u l f Q u e s t L L C

Seabox™ - subsea water treatment module

• CFD simulation

• 5 micron particles

• 24 ‘inclined plates’

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© M C E D e e p w a t e r D e v e l o p m e n t a n d G u l f Q u e s t L L C

The value of flexibility in reservoir managementSeabox™ / SWIT™ provides tailored water qualities at the seabed

A ‘distributed’ solution with stand-alone subsea facilities

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‘Normal Treatment’:Disinfect to prevent reservoirsouring and remove particlesto avoid blocking

‘Matrix Flooding’:Remove all suspended solids, with an absolute filtration of 0.1 micron

‘Reduce Salinity’:To alter wettability in reservoir to produce initially non movable oil

‘Sulfate Removal’:To avoid scaling due to injection water not being compatible with formation water

Seabox™ Seabox™, andUltrafiltration

Seabox™, Ultrafiltration, Feed pump, and Nano / RO membranes

Source: Ministry of Petroleum and Energy

© M C E D e e p w a t e r D e v e l o p m e n t a n d G u l f Q u e s t L L C

Water injection options

• Seabox and SWIT can be located on seabed and supply high quality water to local host (Hybrid solution), or

• Can be interfaced with a subsea injection pump and paired directly with injection wells

• Replaces complex topsides system with simplified subsea system enabled by high quality source water in deep water

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© M C E D e e p w a t e r D e v e l o p m e n t a n d G u l f Q u e s t L L C

Seabox™ qualification testing

Extended verification testing of industrial version in Norwegian Fjord, February – May 2018

• Solids removal 99% larger than 8.5 micron

• Bacteria kill in Top Quartile of topsides performance

o ATP 5 – 10 times lower than equivalent topside

o Planktonic GHB and SRB – below detectable level

o qPCR – below detectable limit

• Successful demonstration of Seabox simplicity and reliability over test period

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Installation of Seabox™ February 2018

© M C E D e e p w a t e r D e v e l o p m e n t a n d G u l f Q u e s t L L C

Seabox™ manufacturing and deployment

• Components

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©2018 NOV | Proprietary and confidential. | 12

All electric

© M C E D e e p w a t e r D e v e l o p m e n t a n d G u l f Q u e s t L L C

Seabed seawater processing

• Processed water to host,

or

• Direct to subsea injection pump coupled to injection well

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Seabox™

Seabox™ andUltrafiltration

SWIT™: Seabox™, Ultrafiltration, Feed pump, andNano / RO membranes

or, treated waterto host

Treated water to subsea WI pumpand well

© M C E D e e p w a t e r D e v e l o p m e n t a n d G u l f Q u e s t L L C

Enhance existing WF treatment

• Improves existing WF hardware by providing high quality feed water

• Can enable change from filter spec to membrane spec water with minimal interruption in topsides

o Safer

o Faster

o No PoB issues

• Water sourced from deep water is colder and provides material improvement in topsides compressor efficiencies

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Platform structure

Umbilical

10’’ Flexible hose

Caisson connection

Seabox module

© M C E D e e p w a t e r D e v e l o p m e n t a n d G u l f Q u e s t L L C

ConocoPhillips – Ekofisk, North Sea

Installed August 2018

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Source: ConocoPhillips

© M C E D e e p w a t e r D e v e l o p m e n t a n d G u l f Q u e s t L L C

Seabox™ and SWIT™A ‘significant simplification’ compared to topside

• Removing sulfate

• Reducing salinity

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A DB C

Seabox™

Nano / RO membranes

Ultrafiltration

Feed pump

© M C E D e e p w a t e r D e v e l o p m e n t a n d G u l f Q u e s t L L C

SWIT™

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NOVOTEL LONDON WEST • LONDON, UNITED KINGDOM • 2-4 APRIL 2019

Thank you!