Sea to Sand: Marine Transportation of Very Large Modules to the Athabasca Oil Sands

Presented for SNAME Arctic Section Calgary, AB October 17, 2007 Tri Ocean’s Credentials

Tri Ocean is a full service EPCM contractor specialising in design and construction of modularised onshore and offshore facilities for the oil and gas industry. The company’s experience in designing and building major projects for remote, cold weather locations such as Arctic Russia, Norway, the Mackenzie Delta, Northern Alberta, North-eastern B.C. and Alaska, together with the expertise in transportation and logistics built around these projects, makes it uniquely qualified to undertake this study. Further information on Tri Ocean’s expertise and capabilities can be found at www.tri-ocean.com National Quality Institute recognizes Tri Ocean with Award for Excellence

Tri Ocean’s unflagging efforts to continually improve service delivery standards have been recognised by the National Quality Institute. Tri Ocean has received the 2007 Canada Awards for Excellence Bronze Award. Objective

„ Discuss integration of marine transportation planning and engineering design of very large modules (1,000MT and greater) for future developments in the Athabasca Oil Sands

„ Discuss the key parameters of the marine route, the typical marine equipment available for such an operation and the affect of these parameters on engineering design and project capital cost Presentation Overview

ƒ Marine Transportation Overview ƒ Review design constraints associated with the marine transportation route ƒ Overview of applicable marine equipment ƒ Possible transportation scenario ƒ Discussion of module design considerations ƒ Next Steps Why Large Module Design? Optimization Considerations

5000 tonne Example Module Sizes IV 1000 tonne III 500 tonne II 50 tonne I

D Ice Road/ Transport

C Permanent Road / Example Rail Transport Transport from Fabrication Sites B River / Ocean Barges

Heavy Lift A Vessel

5 4 Module 3 2 Shop/Yard Fab/ 1 Transport / Infrastructure Local/ Site Construction Module Size Schedule Requirements/Regional Productivities & Weight, Logistics Content & Costs Constraints Design & Layout Project Elements Developing the Athabasca Oil Sands

„ The current construction scenario for Athabasca Oil Sands projects relies on a combination of module assembly on site or transportation of southerly constructed small modules by road and rail „ These methods have some of the following drawbacks: „ high labour rates during the fabrication and on-site hook-up „ limited labor market „ module size is limited by transportation restrictions Developing the Athabasca Oil Sands – Marine Transport Option

„ Access to marine transportation allows Oil Sands Projects to: „ Take advantage of international fabrication market rates „ Reduce reliance on the stressed Canadian labor market „ Potential capital cost savings and improved project schedule through application of Very Large Module Design Marine Transportation for Athabasca Oil Sands Projects

1. Pacific Transportation 2. Arctic Transportation 3. River Transportation Pacific Transportation

Far East Fabrication Pacific Transportation

Gulf of Mexico Fabrication Pacific Transportation Design Parameters

„ Environmental criteria „ Design sea state (ie. wind speed, wave height, wave period) „ Tropical storms „ Arctic ice-free season „ Voyage route „ Panama canal restrictions „ Draft limitations „ Marine equipment „ Transportation loads / accelerations „ Transit speed and duration „ Cargo capacity „ Stability „ Availability Arctic Transportation: Point Barrow to Mackenzie Bay Arctic Transit Design Parameters

„ Environmental criteria „ Less severe design sea state (ie. wind speed, wave height, wave period) „ Arctic ice-free season „ Marine equipment „ Ice Breaker / Ice Management Vessel „ Air ice reconnaissance and surveillance program „ Ice monitoring and forecasting program „ Equipment selection and availability „ Inside passage „ Draft limitations (shallow water) „ 6 weeks long, typically starting August 1st „ 6 days dependent on ice concentration „ Outside passage „ No draft limitation (deeper water) „ 5 weeks long, typically starting August 15th „ 6 days dependent on ice concentration River Transportation

River Voyage Stage 1: „ Beaufort Sea to Bell Rock, NWT

River Voyage Stage 2: „ Slave River rapids portage

River Voyage Stage 3: „ Fort Fitzgerald, AB to Athabasca Oil Sands River Voyage Stage 1: Mackenzie River

Design Considerations „ Ramparts and Sans Sault rapids „ Fort Providence rapids „ Deh Cho Bridge restrictions „ Marine equipment selection and availability River Voyage Stage 1: Great Slave Lake / Lower Slave River

Design Considerations „ Possible dredging requirements in Res. Delta Channel River Voyage Stage 2: Slave River Rapids Portage

Design Considerations „ Infrastructure development at Bell Rock and Fort Fitzgerald „ development of put-in and take-out locations „ upgrade of portage road „ Availability of land transportation equipment „ Availability of marine equipment on both sides of portage Bell Rock to Fort Fitzgerald Portage Typical Land Transportation

900 TONNE MODULE ON ALL-SEASON 1,200 TONNE MODULE ON ICEROAD ROAD River Voyage Stage 3: Upper Slave River River Voyage Stage 3: Peace River and Quatre Fourche Channel to Athabasca Delta

Design Considerations „ Quatre Fourches Channel to Fort Chipewyan „ Possible dredging requirements in Athabasca Delta River Voyage Stage 3: Athabasca River

Design Considerations „ Peter Lougheed Bridge at Fort Mackay „ Take out location and land transportation to site Transportation Durations

Days

Pacific Voyage: 15 – 30 Dependent on fabrication yard selection and marine equipment selection Arctic Voyage: 6 Point Barrow to Mackenzie Bay Area

River Voyage Stage 1: 17 Mackenzie River Delta to Bell Rock

Stage 2: 4 Slave River Rapids Portage

Stage 3: 4 Fort Fitzgerald to Athabasca Oil Sands (Fort Mackay)

„ River durations may be conservative, but are meant to account for expected delays along route due to weather and river conditions. Conventional Marine Equipment

Pacific Transportation „ Ocean Tugs „ Ocean Barges (ex. semi-submersible, deck cargo) „ Heavy Transportation Vessel Arctic Transportation „ Ice Breaker / Ice Management Vessel River Transportation „ River Tugs „ Inland Barges „ Purpose Built Barge (PBB) Heavy Transport Vessels Heavy Transport Vessels Heavy Transport Vessels “Float-on”, “Float-off” Semi - submersible Barges Ocean Deck Cargo Barges Inland Deck Cargo Barges Tugs Ice Management Vessels Why Large Module Design? Next Steps Optimization Study

„ Logistics Scope: „ Identify logistics options and transport routes „ Determine associated maximum module weights, dimensions, and allowable COG „ Modularization / Engineering Scope: „ Equipment list „ Grouping of equipment for different module size options „ Module density selection/equipment spacing requirements „ Conceptual level layouts „ Module weight prediction „ Preliminary structural design „ Weight and COG verification „ Cost, schedule, and execution risk evaluation Questions?

Thanks…!