Culzean Update - 3rd September 2019 1

Stuart McAuley, Engineering Manager25th Febrauary 2020, SPE Conference Paris

THE CULZEAN FIELD:THE SUCCESSFUL EXECUTION OF AN HP/HT MEGA PROJECT

WELCOME TO CULZEAN

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INTRODUCTION

32,00% 18,01%49,99% 3

EXPLORATION AND APPRAISAL

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22/25a-1 (1986) : 1100ft below crest. Based on 2D data. Reached Pentland. No logs run, no reservoir evaluation or pressures. Multiple sidetracks attempted. NO DATA

22/25a-11 (2010 – 2011) : Encountered both Pentland and Joanne. Very limited HC column

22/25a-9 & 9Z (2008): Culzean Exploration Well. Drilled 300ft below crest. Original 9 well side-tracked due to wellbore stability issues in the Tertiary (preventing the running of the 13 5/8” casing)

9Z sidetracked below 20”. Drilled Pentland and Joanne reservoir sections. Discovered significant HC column. Fully logged reservoir section and acquired pressures and samples.

Very challenging well. GDT in Joanne & Pentland

22/25a-10Y (2010) : Down dip appraisal sidetrack with 1250m step out. Penetrated both Pentland and Joanne; confirming contacts

22/25a-10 & 10Z (2010) : Culzean appraisal. Revised ‘deep set” casing architecture. 10 penetrated both Pentland & Joanne. Twist off and non-recoverable fish across the reservoir interval required sidetrack.

10Z sidetrack “twinned” the original well path and was successfully logged and tested. Penland GDT and Joanne GWC

Top Joanne

Licence P111 – originated as BP licence in 1970. Unsuccessful drilling in 1986 left the field undeveloped until Kerr McGee offered a novel deal for entry into the block. This lead to the exploration drilling and success in 2008.

SPE Conférence 25/02/2020

Smith Bank Judy

Joanne

Pentland

PESGB Evening Lecture 18/02/2020 5

REGIONAL CONTEXT: SEISMIC SECTION

● Trap similar to other Triassic HPHT fields

● Extensional fault block modified by salt movement

● Block dips North east and is bound by faults to the north and west/southwest

● Structural closure to the South where BCU cuts into reservoir

● A number of data sets cover the Culzean area with the key ones being:● Cornerstones towed streamer pre-stack depth migration survey (2011)● Culzean specific High Density Ocean Bottom Cable (HDOBC) (2011)

WELLS

● The Culzean wells are drilled into a sandstone reservoir dating over 200 million years back to the Jurassic and Triassic periods.

● Fluvial (Rivers, Marine environment).

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RESERVOIRS – THE HP/HT CHALLENGE

● 5x pressure and 2x temperature of normal reservoirs● Complex, high integrity safety systems required to

mitigate risks● Design challenge + specialist equipment = extra time

and cost

Estimated resources (boe)

Culzean Update – 31 May 2018 7

CULZEAN WHP AND HIGHLANDER

Title of presentation | page 8

Maersk Highlander, new build HDJU completed in Singapore and 1st well spudded on schedule in September 2016 despite original drilling contractor going into administration

WELL DELIVERY TODAY?

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C2Joanne

C6 Joanne

C4 Joanne

C5 Joanne

C7Joanne

C3 (EJ-03)Pentland

● 4 Joanne wells successfully delivered and producing

● Wells were delivered ahead of schedule, with limited issues

● Currently drilling C7 –most crestal Joanne well and first development well drilled post production

● C3 Pentland drilled to 13 5/8” casing.

● PWRI well drilled and awaiting completion

Drilling status in traffic lightFDP Sanction Q3 2015

PESGB Evening Lecture 18/02/2020

1 2 3 4

C4

C6C7

C2

C5

C1

GWC

10Y

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C39Z

WELL ARCHITECTURE

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● Key challenge to Culzean delivery is narrow drilling window at the top of the structure

● Deep set casing strategy used to navigate complexity of narrow drilling window

● Section TD very close to top reservoir

● Lookahead VSP used in order to reduce uncertainty

● Get within 100ft of top reservoir

PESGB Evening Lecture 18/02/2020

FACILITIES

● Three bridge-linked-platforms:

1. The wellhead platform where drilling and production takes place

2. The central processing platform where the produced gas and condensate are processed and exported

3. The utilities and living quarters platform, providing accommodation, living space and services for the crew.

● 30,000 tons of topsides modules in total

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FSO AILSA

● High wax content of condensate ruled out using existing export pipelines

● Condensate exported from Culzean via short pipeline to new FSO

● Can store over 430,000 barrels of condensate

● FSO can then offload to tanker

SUBSEA

● Pipelines- Gas will be exported via the CATS pipeline,

coming onshore at Teesside.- 57km of pipelines will connect the Culzean

installation to the FSO and the CATS pipeline. - This includes a 6” pipeline inside a 10” carrier

pipe with aerogel in the gap to insulate the condensate as it moves from the fixed facilities to the FSO. This stops any wax deposits from forming.

● Other subsea structures- Four main subsea structures.- A 350 tonne pipeline end manifold providing a

connection between the Culzean gas export pipeline and the CATS pipeline.

- A 175 tonne subsea isolation valve station, a safety feature isolating the central processing facilities from the export pipeline.

- Two 125 tonne riser bases, one for condensate and one for fuel gas.Culzean Update – 31 May 2018 13

HUC COMMISSIONING, THE FINAL HURDLE

● Key challenge to the project delivery● Over 1 million manhours of work to be liquidated● 600+ offshore workforce to manage● Innovative contracting strategy worked well● Scope executed in 10 months and with no LTI’s

CULZEAN FIRST GAS

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INNOVATION: 21ST CENTURY PLATFORM

● Walkinside- Walkinside software has been used through FEED and

Detailed Design to bring the Culzean topsides to life. An avatar is used to explore the topsides making sure that human factors are effectively incorporated into the design: a key feature in designing a safe and efficient facility.

● RFID tags- Radio Frequency Identification (RFID) tags, when scanned

using a handheld device, provide the operator with all the information associated with that piece of equipment in real time.

● Fibre optic cables- The volume of data the Culzean platform will generate

demands a subsea fibre optic cable, allowing for instant distribution of critical data from offshore operations.

● Real time data- Towards the end of construction, the entire facility will be

laser scanned with an image point cloud which will be merged with its 3D model, enabling Total to do offshore surveys onshore. 16

4.5 million data points collected and populated from the design and vendors

SOME FACTS

● The project was delivered with a good safety record, with a TRIF of 1.0

● Culzean required 40,000,000 man hours to complete

● This covered….- 250,000 inches of piping fabrication- 30,000 pipe spools- 21,600 valves- 400 equipment packages

● Which also required 10,000 instrument loop checks

Culzean Update – 31 May 2018 17

AND FINALLY…. SOME MORE NUMBERS

7,000 people working on the project at its peak, the same number as the Terracotta Army in China

100,000 tonnes of facilities fabricated, which is the same weight as the latest US aircraft carriers

If you laid all the cables from Culzean end to end they would reach 1,000km, from here to the entrance to the Channel TunnelCulzean Update – 31 May 2018 18

TIMELINE

1st gas achieved 7th June 2019, ahead of schedule

Culzean Update - 3rd September 2019 19

CONTRACTING STRATEGY

PESGB Evening Lecture 18/02/2020 20

● Facilities contracting strategy based around fixed price, lump sum awards.● Working with our contractors to a common goal, one team.● Outturn was virtually no variations on lump sums (<1%), no legal disputes, no contractual

letters exchanged, on time delivery

Working collaboratively with our contractors was key

FRONT END LOADING WORKED WELL

PESGB Evening Lecture 18/02/2020 21

● FEED on Culzean was 14 months, EPC bidders were given full access● Focus was on fixing key issues rather than progressing detail● This meant limited changed in detailed design and construction● Key to completing on time and on budget

Weight Report

Module NTEWDry 

WeightExpected Weight

CPF Integrated Deck 10,400 9,069 9,564

ULQ 8,900 7,751 8,207

WHP (note:  excluding WAD) 5,500 4,947 5,220

Gas Compression Module 3,000 2,568 2,703

Power Generation Module 2,000 1,691 1,792

Total Expected Weight (incl Bridges and Flare) 29,930

B23 (Apr 17)

WORKING WITH HP/HT MATERIALS

● A significant challenge in HP/HT facilities is welding thick pipe wall sections● SMOP qualified and trained specialist welders for 12 months prior to piping construction● Developed a proven and repeatable weld procedures and a trained welding team ● Extremely low weld failure rate………Front end loading works!

CULZEAN: UK PROJECT, GLOBAL FOOTPRINT

FSO: MODEC/Sembcorp Marine (SCM) Singapore Tuas Shipyard

CPF incl. Gas Compression Module & Flare, ULQ and WHP Topsides: SMOPSingapore, Admiralty Shipyard

WAD and 6 Pile Clusters: Heerema Fabrication Group, Hartlepool

Power Generation Module , 2 Bridges: SembCorp Marine SLP, Lowestoft

WHP, CPF and ULQ Jackets: Hereema Fabrication Group, Vlissingen and Zwijndrecht

Subsea 7 – Pipelines, Moorings and StructuresABZ and Invergordon

Topsides ULQ pan-cakes, carbon steel piping and pipe support fabrication: SMOP Pte Batam

Grillage and sea-fastening: Heerema Fabrication Group, Opole

52% of project content in UK by value

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PROJECT SCORE CARD

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