Preferred partner

Floating Facilities in Ice Anchorage, May 27, 2015 Rolf Eide | Senior Director | Hull and Marine Engineering

Public © 2015 Aker Solutions Preferred partner Content

■ Brief introduction of Aker Solutions.

■ Arctic environmental design impact on floating facilities

■ Technology & knowledge to enable Arctic floater operations

■ Aker Solutions References

Public © 2015 Aker Solutions Slide 2 June 5, 2015 Preferred partner Who is Aker Solutions Today?

■ Aker Solutions is a global provider of products, systems and services to the oil and gas industry ■ ■ Built on more than 170 years of industrial experience

■ Employs approximately 17,000 people in 18 countries ■ ■ Built on more than

Public © 2015 Aker Solutions Slide 3 June 5, 2015 Preferred partner Public © 2015 Aker Solutions Slide 4 June 5, 2015 Preferred partner Arctic and near Arctic projects Beaufort Sea Barents Sea Shallow water FD study H6 (Semi) Deep water concepts for Snøhvit (subsea-to-shore) drilling & prod studies Goliat subsea Sea of Okhotsk Sakhalin I (GBS) West Greenland Sakhalin II (GBS) Feasibility study (FD) Sakhalin II LUN-A (GBS)

Kara Sea Drillship development

Northern Caspian Sea Kashagan field development Kashagan topsides (exp. phase)

Norwegian Sea Grand Banks Skarv (FPSO) Hibernia (GBS) Norne (FPSO) White Rose (FPSO, M&O) Haltenbanken (Semi) Terra Nova (FPSO) Hebron (GBS-ongoing)

Public © 2015 Aker Solutions Slide 5 Preferred partner Project track record - covering most of the value chain Shtokman (pre-FEED) White Rose FPSO Onshore: Offloading: Sakhalin I & II Onshore plant design & operation Bow loading H-6 Sub-zero processing equipment Loading towers Heavy oil treatment Operations

Snøhvit - Melkøya Prirazlomnaya Varandey

Haltenbanken Winterized topside designs: Design methodology Heat tracing Enclosing critical areas Dropped ice protection Operations

E.g., Kai Kos Dehseh Floaters (FPSO): Deep water Subsea-to-shore: Gravity Based Sub- Storage capability Subsea compression structures (GBS) Drift ice management Operations Shallow water Quick disconnect Storage capability Operations Resistant to sea-ice Resistant to ice-bergs White Rose Operations Ormen Lange Sakhalin I, II, and LUN-A Hebron (FEED)

NOTE: Terra Nova Includes projects performed by Aker Solutions and Kvaerner. Hibernia Kashagan

Public © 2015 Aker Solutions Slide 6 Preferred partner The Arctic Circle The arctic circle is an imaginary line located at 66°, 30’N latitude, and as a guide defines the southernmost part of the arctic.

Arctic Arctic Alaska Russian Beafourt Sea Barents Sea Chucki Sea Kara Sea

Arctic Greenland

Sub-Arctic Norwegian Sub- Arctic Barents Sea New Foundland

Public © 2015 Aker Solutions Preferred partner Characteristics of Arctic Environment

■ Remote distance from existing infrastructure (compared to other areas like the and Gulf of Mexico)

■ Low air temperature

■ Presence of Sea ice

■ Presence of icebergs

■ Combination of above items are very area dependent

Public © 2015 Aker Solutions Slide 8 June 5, 2015 Preferred partner Different areas - Different knowledge and technology

■ Kara Sea ■ Beafourt Sea ■ Multi-year ice ■ Multi-year ice ■ Risk of icebergs ■ Risk of ice Islands ■ Long ice season ■ Long ice season ■ Low temperatures ■ Low temperatures

■ Norwegian Barents Sea ■ Low risk of sea ice / iceberg interaction ■ Low temperatures (not as low as Kara Sea/Beafourt Sea) ■ Grand Banks ■ Risk of iceberg interaction ■ Very light ice conditions ■ Temperatures as for Norwegian Barents Sea Public © 2015 Aker Solutions Slide 9 June 5, 2015 Preferred partner

Floating Platforms – Building Blocks

■ Topside: ■ Production/Drilling/Both

■ Hull: ■ Carry topside weight/mooring/riser ■ Motions

■ Turret (shipshaped units) ■ Carry riser/mooring

■ Mooring ■ Stationkeeping of floater

■ Riser ■ Transport hydrocarbons from seabed to topside - Import ■ Transport processed well-stream to pipeline at seabed - Export ■ Drilling riser

Public © 2015 Aker Solutions Slide 10 June 5, 2015 Preferred partner Arctic environment. Topside impact

■ Long distance to existing infrastructure ■ Increased topside weight (more functions needed) ■ Increased oil storage in hull → Larger hull (for FPSO)

■ Low temperatures ■ Icing from sea spray on topside→ Larger topside weight ■ Enclosement → Larger topside weight

Public © 2015 Aker Solutions Slide 11 June 5, 2015 Preferred partner Arctic environment. Topside impact

Icy deck structure Harsh environment HSE challenges

Heat tracing HSE challenges

Public © 2015 Aker Solutions Slide 12 June 5, 2015 Preferred partner Arctic environment – Hull/Mooring/Riser impact

■ High local hull loads from ice ■ Clogging of hull water intakes

■ High mooring loads ■ Freezing of ballast water

■ Riser interaction with sea ice ■ Ice thruster interaction

Public © 2015 Aker Solutions Slide 13 June 5, 2015 Preferred partner Status Arctic platforms and ice action design

■ All installed platforms in waters with ice are bottom-founded (Gravity Based Structures-GBS) ■ No floaters (drilling/production) operates in areas with sea ice (the closest is the Sea Rose FPSO)

■ Industry experience with bottom founded structures and artificial Islands goes back to the 80`s ■ For lighthouse design even further

■ Global and local Ice pressure on GBSs and artificial Islands measured and documented (ISO 19906)

■ Today; Ice load concern wrt GBSs mostly related to vibrations of GBS

Public © 2015 Aker Solutions Slide 14 June 5, 2015 Preferred partner Background on floaters operating in ice

■ Several Arctic licenses located in water depths requiring floaters for exploration and production ■ With sea ice often present on an annual basis

■ Industry experience with moored floaters in ice limited to the Kulluk and Canmar drillship operations in the Beafourt Sea (80`s and partly 90`s)

Public © 2015 Aker Solutions Slide 15 June 5, 2015 Preferred partner Industry Floater experience from Arctic operations

■ Kulluk and Canmar drillships ■ Operated in Beafourt Sea in the 80`s ■ Supported by up to 4 ice breakers ■ Operated in severe ice conditions ■ Disconnection capability

■ Sea Rose and Terra Nova FPSO ■ Operating at Grand Banks (New Foundland) ■ Iceberg and very light ice conditions ■ Disconnection capability

Public © 2015 Aker Solutions Slide 16 June 5, 2015 Preferred partner 9~12 6~9 3~6 0~3 500 Rub-depth(m): 400 300 Fym=17550 Fym=17550 kN 200 Fxm=-1180 Fxm=-1180 kN 100 Ice load on floaters Fm=17590 kNFm=17590 [m] E X

■ Correlation between ice action (pressure) on floater 0 and floater responses not fully known and understood

4 x 10 Mooring force 2.5 ■ Today mooring system design for ice-floater -100 Sim Exp interaction is based on 2

■ Ice model testing 1.5 Pitch=-0.1 deg

■ Numerical simulation 1 -200 Force Force [kN] 0.5

0 ■ There exists no full-scale correlation of ice actions on Roll=-1.5 deg Roll=-1.5 -0.5 -300 0 500 1000 1500 2000 2500 3000 3500 4000 moored floating structures for comparison with ice Time (s) model testing or numerical simulations model -400 Yaw=96.0 Yaw=96.0 deg 0 50

-50

-100 -150

E

[m] Y

Public © 2015 Aker Solutions Slide 17 June 5, 2015 Preferred partner Technology projects on buoy shape and ice actions

■ Ice pressure (fixed and moored) ■ Buoy responses ■ 2009 and in 2010 – Ice Model Test JIP – Two model tests ■ Client: Chevron, Statoil, Shell, ExxonMobil ■ Location: HSVA ■ Structure tested: SPAR and shallow draught buoys ■ Fixed to carriage ■ Moored to basin floor

Public © 2015 Aker Solutions Slide 18 June 5, 2015 Preferred partner Spitsbergen Research Floater

■ Arctic Meso Scale Floater ■ Objective: Design floater with purpose of being installed in ice and monitoring of ice conditions, global hull pressure and mooring loads simultaneously

■ Feasibility Study 2010 ■ Clients: Statoil & Chevron ■ Scope: Design of meso-scale floater for monitoring of ice induced responses of moored structures in drift ice at Spitsbergen (Svalbard)

■ Pre-FEED 2012: ■ Clients/Partners: Statoil, Shell, DNV, NTNU and Research Council of ■ Scope: Concept screening, metocean/ice design basis preparation, deployment of ice tracker at relevant location and sizing and engineering of floater concept

Public © 2015 Aker Solutions Slide 19 June 5, 2015 Preferred partner Johan Castberg

■ North Norway – Norwegian Barents Sea ■ Sea ice on field every 2400 year (0.6 m level ice - 4 m deep ridges (average) ■ Pre-Feed study 2012-2014 ■ Client: Statoil ■ Scope of work ■ Pre-Feed study on Semi-submersible unit and FPSO ■ Hull, mooring, turret design ■ Topside design ■ Ice model test of Semi ■ Aker Arctic and HSVA ■ Ice model test of FPSO ■ HSVA

Public © 2015 Aker Solutions Slide 24 June 5, 2015 Preferred partner Aker Solutions Arctic drillship

■ Operating displacement: 89 000 tonnes (13 m draft) ■ Dimensions: ■ LOA: 232 m - LPP: 212 m ■ B: 42 m (reamer 48m) ■ Can operate in 1.5 meter thick ice ■ Mooring system ■ 12 /18 line system designed for 100 / 400 m water depth ■ Thrusters: ■ FWD: Two nozzle retractable thrusters: each 3.5 MW to be retracted in ice ■ AFT: Three open podded thrusters

Public © 2015 Aker Solutions Slide 25 June 5, 2015 Preferred partner Beafourt Sea studies

■ Beafourt Sea shallow water 2013-2014 ■ Client: Major Oil Company ■ Scope of Work: Large field development study (building blocks) ■ Assessment on pre-drilling ■ Substructure and topside (production / drilling) design ■ Tanker loading ■ Marine operations and installation ■ Fabrication ■ Logistics/supply and infrastructure assessment

■ Beafourt Sea deep water 2013-2014 ■ Client: Major Oil Company ■ Scope of work: Field development study including pre-drilling assessment

Public © 2015 Aker Solutions Slide 26 June 5, 2015 Preferred partner Conclusion

■ Arctic areas are in general remote from existing infrastructure ■ Different arctic areas have different knowledge and require different technology ■ Almost all installed platforms in waters with ice are bottom-founded (Gravity Based Structures-GBS) ■ Industry experience with moored floaters in ice is limited and mostly based on model tests and numerical simulations.

Public © 2015 Aker Solutions Slide 27 June 5, 2015 Preferred partner Public © 2015 Aker Solutions Slide 28 June 5, 2015 Preferred partner Copyright and disclaimer

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Public © 2015 Aker Solutions Slide 29 June 5, 2015 Preferred partner