The Sevan Cylindrical hull Concept for FPSOs in deepwater locations PEMEX-INTSOK Deepwater Technology Seminar May 9-10, 2013 | Hotel Hacienda Real | Ciudad del Carmen Presentation by Fredrik Major, Vice President Business Development/ R&D, Sevan Marine

1 Contents

• Introduction to Sevan Marine

• Previous and ongoing Projects

• Operational Experience

• Sevan Marine’s expertise and novel concepts

2 Company structure

Diversified through OSX

~60% ~40%

100%

33 Management System Certified by DNV to ISO 9001 and 14001

5 Contents

• Introduction to Sevan Marine

• Previous and ongoing Projects

• Operational Experience

• Sevan Marine’s expertise and novel concepts

6 World’s Growing Fleet of Cylindrical Floaters: Sevan Cylindrical FPSOs (7 units so far)

Sevan Cylindrical MODUs (4 units so far)

7 Clients and services

Oil Companies Own/ Own/ Own operate operate

Design and technology

Studies

License contracts

Project execution

Drilling Unit Fleet FPSO Fleet

8 Geo-stationary hull

• Hull facing environment with same shape in all directions – no need to rotate • Even in the harshest environmental conditions • Iso-symetric hull – no weathervaning -> Eliminating turret and swivel • Capex savings: Cost of turret /swivel as well as thrusters avoided • Opex savings: Reducing requirement for marine crew and fuel consumption • Increased flexibility:Spare capacity for tie ins simply by spare riser guide tubes • Power transfer: Facilitates high electric power transfer

Ship

Sevan

9 Insignificant bending stresses due to global loads on the hull

• Eliminating typical wave induced fatigue loads

• Minimal hull deflections (sag/ hog) simplifying topside design

10 Favourable Motions compared to shipshaped FSU/ FPSO

11 Field operator: FPSO Piranema Spirit Contract type: Build own and operate (ex Sevan Piranema) FPSO operator: Teekay Petrojarl In operation since October 2007 Yard: Yantai Raffles/Keppel Verolme Location: Offshore Aracaju, Brasil Water depth: 1000m

Oil processing: 30 000 bod Gas processing/injection: 3.6 mill Sm3/day-130 mill scfd @ 280 bar

12 Field operator: Contract type: Build own and operate FPSO Hummingbird Spirit FPSO operator: Teekay Petrojarl Yard: Yantai Raffles/Keppel Verolme (ex Sevan Hummingbird) Location: UK Central North Sea In production since September 2008 at Water depth: 120m Centrica Operated Chestnut field Hull size: Sevan300

UK CNS Oil processing: 20 000 bod Water injection: 20 000 bwd Liquid combined: 30 000 bld

Redeployment options currently evaluated

13 FPSO Sevan Voyageur at the Premier Oil Shelley field In operation from August 2009 – July 2010

Field operator: Premier Oil Contract type: Build own and operate FPSO operator: Sevan Marine Yard: Yantai Raffles/Keppel Verolme Location: UK Central North Sea Water depth: 95m Hull size: Sevan300

Oil processing: 20 000 bod Water injection: 20 000 bwd Liquid combined: 30 000 bld Power feed to two ESPs 2*800kW

Contract for re-deployment to E.ON operated Huntington field

14 FPSO Voyageur Spirit (ex Sevan Voyageur) Upgrade for service at the E.ON operated Huntington field in UK CNS Yard: Nymo,

SHELLEY: HUNTINGTON:

Design capacity - oil: 20,000 BOPD Design capacity - oil: 30,000 BOPD

Design capacity - produced water: 20,000 BWPD Design capacity - produced water: 42,000 BWPD

Design capacity – liquid: 30,000 BLPD Design capacity – liquid: 60,000 BLPD Design capacity – export gas: - Design capacity – export gas: 27 MMSCFD

Design capacity lift gas - Design capacity lift gas 16 MMSCFD Design capacity total gas compression - Design capacity total gas compression 38 MMSCFD Design capacity - sea water: 20,000 BWPD Design capacity - sea water: 48,000 BWPD

15 FPSO Voyageur Spirit Towout from Arendal to Huntington field

16 Sevan 300 No:4 and 5 COSCO Nantong Available for Projects

17 FPSO Sevan 1000 for the ENI operated Goliat field Contract type: Technology license Location: Norwegian Barents Sea Water depth: 400m (Harsh and sub-arctic) Yard: Hyundai Heavy Industries Hull size: Sevan1000 Oil processing: 100 000 bod Water injection: 125 000 bwd Gas compression: 140 Mill Scfd Oil storage: 1 000 000 bbls Power feed from shore 60 MW

18 Sevan 1000 for Goliat - Construction sequence

19 Sevan 1000 for Goliat - HHI April, 2012

20 Sevan 400 for Dana Operated– Western Western Isles Development Isles Fields

Contract type: Technology license Location: UK Nortern North Sea Water depth: 165m Yard: COSCO Qidong Yard Hull size: Sevan 400 Oil processing: 40 000 bod Oil storage: 400 000 bbls

21 Sevan FPSO for Statoil– Skrugard/ Havis development Concept Study performed Location: Norwegian Barents Sea Water depth: 400m (Harsh and sub-arctic) Hull size: Sevan 1400 Oil processing: 190 000 bod Water injection: 430 000 bwd Gas compression: 495 Mill Scfd Oil storage: 1 400 000 bbls

22 Sevan Driller(owner/ operator Sevan Drilling)

Ultra deep water drilling in Brasil Contracted by Petrobras (6 years fixed) Yard: COSCO, China

23 Sevan Brasil (owner/ operator Sevan Drilling) Second Ultra deepwater MODU Contracted by Petrobras (6 years fixed) Yard: COSCO, China

24 Sevan Drillers 3/4 (owner/ operator Sevan Drilling) Third / fourth Ultra deepwater MODUs In construction, COSCO, China

Sevan Louisiana – in operation early 2014 Three-year charter contract signed for the US Gulf of Mexico with LLOG Bluewater Holdings LLC, expected start-up early 2014

25 Contents

• Introduction to Sevan Marine

• Previous and ongoing Projects

• Sevan Marine’s expertise and novel concepts

• Operational Experience

26 Sevan core competence and experience: Summary of core technology and competence required during design, construction, operation and redeployment

• Project execution • Hydrodynamics, wave loads and motions • Riser and mooring analysis • Stability and load capacity • Structural design, analysis and hull integrity • Marine systems • Process system design and simulation • Electric and control system • Arrangement and layout • Technical safety and regulatory compliance • Offloading to shuttle tankers • Marine operations, installation, re-location, redeployment

27

27 Technology – Considerable investments in development of unique concepts

Icebreaking hull for Arctic FPSO with steel risers FLNG Concept

Accommodation / Logistics hub FPSO bridge-linked to WHP Floating Powerplant

28 Sevan ICE Hull - Model test in 100 year ice ridge condition (Shtokman)

35 Sevan ICE Hull - Disconnect system for iceberg escape

36 ENABLING SCRs FOR HARSH ENVIRONMENT FPSOs Sevan Hull Tuned for Optimized Motion Pattern Statoil study for Luva field development resulting in qualification of the technology

Steel Catenary Risers (SCRs) features: - Lower cost - Higher and more predictable durability - Higher capacity for top tension, temperature and pressure - More flexibility for corrosion protection and thermal insulation

37 37 SEVAN FLNG

38 Sevan FLNG Concept Tank Arrangement and Capacity LNG storage (6 tanks): 180 000 m3 LPG storage (1 tank): 30 000 m3 Condensate storage (6 tanks): 28 000 m3 Ballast tanks (24 tanks): 80 000 m3

LPG/LNG Tank Hold Space

LNG Tanks

Chain Lockers

Condensate Tanks

Ballast Tanks

With no LPG storage : LNG storage (7 tanks): 210 000 m3

39 LNG Offloading systems

Side-by-side Offloading Sea states Hs = 2.0 / 2.5 m

Tandem Offloading Sea states Hs = 3.5 / 4.5 m

Offset Side-by-side Offloading Sea states Hs = 2.5 / 3.5 m

40 Kanfa Aragon’s Optimised Dual N2 Expander Cycle

INTER COOLER

• KANFA Aragon’s patented liquefaction AFTER COOLER technology

CYCLE • Based on the well-proven Dual Nitrogen COMPRESSOR

Expander Cycle and optimised for FEED GAS

LIQUEFACTION

offshore liquefaction applications HEAT EXCHANGER

• Up to 15 % lower energy consumption HC REMOVAL compared to similar Dual Expander COOLER AFTER Cycles WARM EXPANDER BOOSTER • Simple and safe to operate with COMPRESSOR optimised uptime and production • Fully marinised COLD EXPANDER BOOSTER COMPRESSOR

LNG

41 Aragon FLNG train Production Capacity

PARALLEL TRAINS LNG PRODUCT FEED GAS

1 LNG TRAIN UP TO 1.2 MTPA UP TO 167 MMSCFD UP TO 4.7 MSm3/d

2 LNG TRAINS UP TO 2.4 MTPA UP TO 333 MMSCFD UP TO 9.3 MSm3/d

3 LNG TRAINS UP TO 3.6 MTPA UP TO 500 MMSCFD UP TO 14 MSm3/d

4 LNG TRAINS UP TO 4.8 MTPA UP TO 667 MMSCFD UP TO 18.7 MSm3/d

42 Sevan GTW 600MW Powerplant – Main Characteristics

• Power production from locally produced gas • Transmission lines to platform cluster and/or shore • Combined cycle (gas/ steam turbines) • The Sevan GTW 600 consists of – 8 Siemens SGT800 Gas Turbine generator sets – Heat Recovery Steam Generators (HRSG) 4 Steam Turbine generator sets • Plant power capacity is 600 MWe net • Power output can be tailored in steps of 150 MW (relevant plant output 150, 300, 450, 600, 750, 900 MW) • Plant efficiency is 55% (Air/ Seawater temp 15/7 degC) • Estimated gas consumption for the GTW 600MW is 2,5 MM SM3/day (88MMScfd) (for other plant outputs, the gas consumption would be proportional) • Onboard gas preprocessing

43 Sevan GTW 600 General Arrangement

CO2 extraction/ compression plant integrated in hull

• 90% CO2 capture feasible (ref study with SINTEF) • Net power capacity after CO2 removal is 490 MW • Net efficiency after CO2 removal is 45% • CO2 compression to liquid stage for injection into subsea reservoir

44 Bridge linked FSU/ FPSO

45 FPSO/FSU with Dry Tree Completions Conservative approach: Most unfavourable mooring cluster (4 lines) broken in 100 year storm in worst direction.

Sketch of FSU Movement - Run D3501004 - Cluster 2 Broken - Sample Rate 0.2 Hz

PDQ Outline 100 Forward PDQ legs FSU Anchors FSU Initial Condition 50 FSU PD Contour Path FSU BB Contour Path Mooring Lines 0

-50

Northting (Rel to FSU [m](Rel center) Northting -100

-150

-300 -250 -200 -150 -100 -50 0 50 Easting (Rel to FSU center) [m]

Tested in Marintek Ocean Basin 2011 - 100year HS 13.5 m

46 Offloading Principle – DP tankers

• No hawser between FPSO and shuttle tanker • Increased distance to shuttle tanker • Shuttle tanker not heading towards FPSO • DP2 shuttle tankers with bow loading equipment • Shuttle tanker operates in an “Elongated offloading Sector” • Collision risk significantly reduced compared to traditional tandem loading

47 Offloading principle - Standard Trading Tankers

48 Contents

• Introduction to Sevan Marine

• Previous and ongoing Projects

• Sevan Marine’s expertise and novel concepts

• Operational Experience

49 Sevan Hummingbird in Hs=6m – No significant motion response (video)

50 PROVEN MOTION CHRACTERISTICS Severe storm event (assumed close to 100 year condition) Nov 27th, 2011 Max recorded: Heave 14 m, Roll/ Pitch +-3.5 deg. (Video)

51 Tuning of hull shape for motion optimisation

52 Permanent mooring in Cyclone exposed areas JIP including model tests with Sevan Platforms

Demonstrated feasibility of safe permanent mooring through cyclone condition

Significant increase in production uptime based on avoiding disconnection

Mooring in fixed orientation eliminates problem with rapid change of wind direction forcing a shipshaped FPSO to get waves beam on and exsessive roll

53 Cyclonic 10.000 year return – ALS Cyclonic 100 year return – ULS Seastates in full scale and scale model tests Sevan 1000 Goliat 10.000 year return – ALS Scaled to Sevan 1000 hull size In Construction Sevan 1000 Goliat 100 year return – ULS

Sevan 300 Hummingbird 100 year return – ULS In Operation Sevan 300 Voyageur 100 year return – ULS Sevan 400 WIDP 100 year return – ULS

Goliat 100 year contour

54 Mooring Line Failures, PROVEN MOTION CHRACTERISTICS Evacuation at Gryphon Alpha FPSO

Fra: Hummingbird MCRO (WG) [[email protected]] > Sendt: 5. februar 2011 17:34 > Til: Erling Ronglan > Kopi: Hummingbird OIM (WG) > Emne: RE: Emailing: Workers evacuated from North Sea FPSO - Upstream > > Good afternoon Erling >  We have had nothing remarkable over the last few days,  The instillation has been very stable even in some heavy sea conditions. > Accident summary:  The peak of the recent weather was Friday morning between 0001 and 0600, • The initiating event was failure of windward mooring line 7  with steady wind speeds of up to 50 knts, Gusting approx 65 knt. • The PM system then drove the vessel beam on to > > Since we are almost at full load draft, we are very steady in the the prevailing weather. > water, our heave being around 6m at this time and roll/ pitch around 4 • This resulted in three further windward mooring lines failing > degrees at the max. Wave heights at a guess being 7-8m, ( we do not as the vessel heading turned beam on the environment. > have a wave rider) • The mooring lines failed due to the high environmental forces > they were subjected to, which exceeded the design criteria. > Any more info just ask • The subsequent loss of position resulted in significant damage > to the subsea infrastructure. > Regards > > William Campbell > Marine CRO Hummingbird FPSO > Wood Group Engineering (North Sea) Ltd > +44 (0) 1224-340904 (Hummingbird)

55 David Wilson, FPSO Sevan Hummingbird Regional Director - Central / Northern North Sea Field operator’s overall evaluation: Centrica Energy Upstream:

“The Performance of the Sevan Hummingbird on the Chestnut field has been excellent since production operations started in September 2008 to date. The cylindrical FPSO concept has been effectively proven over five North Sea winters with excellent vessel stability and production uptime.”

56 FPSO Sevan Voyageur Field operator’s overall evaluation: John Tickell, Manager Development and None-Operated Assets, Premier Oil PLC: “Although the Shelley reservoir performance was lower than in the Field Development plan the operational performance of the vessel processing facilities was impressive with high production uptime coupled with good offloading statistics. The Sevan 300 geostationary concept with reel offloading and lack of a swivel considerably simplifies the design allowing for lower build costs / potential lease rates.”

57 FPSO Sevan Voyageur at the Premier Oil Shelley field Operational Experience

58 Operational Experience As expressed by crew on FPSO Sevan Voyageur Barry Laing, OIM and Douglas Southerland, Marine Control Room Operator «Motions for FPSO Sevan Voyegeur is far better than the ship-shaped FPSO we have been working on, production can be kept going and no motion sickness is experienced even in the wost storms»

59 Operational Experience Douglas Southerland, Marine Control Room Operator: «Marine system operation is greatly simplified as we do not have to worry about vessel heading control or any turret/ swivel related functions»

60 Operational Experience Barry Laing, OIM: «We have never had to shut down helicopter traffic due to FPSO motions even on a day where all other UK floaters had to cancel their flights»

61 Operational Experience Barry Laing, OIM: «Hawserless tanker mooring provides faster and less complicated tanker hookup»

64 Operational Experience Barry Laing, OIM: «Modification of the riser system and additional seawater intake is greatly simplified without a turret and swivel system»

65 «We make the (FPSO) world go round»

66