RPSEA Seafloor Technologies Forum

COLLEGE STATION, TX March 9th, 2007

March 9, 2007 Texas A&M University College Station, Texas

Seafloor Technologies Forum

Provide Input on Areas of Greatest Interest for Seafloor Research and Test Facilities in Preparation for a Round of Ultra-Deepwater RFPs Expected Summer 2006

Goals
Identify Technology Gaps and Barriers for Ultra-Deepwater Develop a Description of the Types of Test Facilities Needed Prioritize and Group the Areas in Greatest Need of Research

Format
Speakers will Provide Status Reports in Key Areas and Their Perspective on Research/Test Facilities Needed Breakout Sessions Will Enable Discussion of Priorities Breakout Leaders and A&M Students will Capture Key Topics Breakout Session Results will be Reported Back to the Group
COLLEGE STATION, TX - March 9th, 2007Dr. Stuart L. Scott all rights reserved

RPSEA Seafloor Technologies Forum

COLLEGE STATION, TX March 9th, 2007

COLLEGE STATION, TX - March 9th, 2007Dr. Stuart L. Scott all rights reserved

RPSEA Seafloor Technologies Forum

COLLEGE STATION, TX March 9th, 2007

Research and Test Facilities Needed to Unlock Ultra-Deepwater Discoveries

Dr. Stuart L. Scott Dr. Stuart L. Scott

Associate Professor Associate Professor Petroleum Engineering Dept. Petroleum Engineering Dept. Texas A&M University Texas A&M University

Deepwater/Subsea Production
More Production Capacity from Subsea Wells to FPSOs than Saudi Arabia or Russia 11.9 million bbl/day Deepwater Production to Account for 40% of U.S. Production by 2010 Many Discoveries > 7,000 ft

COLLEGE STATION, TX - March 9th, 2007Dr. Stuart L. Scott all rights reserved

RPSEA Seafloor Technologies Forum

COLLEGE STATION, TX March 9th, 2007

U.S.A. Gulf of Mexico Deepwater Discoveries - 2005

Prospect
Stones Jubilee Extension Mondo NW Extension Q Big Foot Genghis Khan Wrigley Knotty Head Clipper Anduin

Operator

Water Depth (ft)

9,576 8,774 8,340 7,925 5,286 4,300 3,700 3,557 3,452 2,400

BP Anadarko Anadarko Spinnaker Chevron Anadarko Newfield Chevron/Unocal Pioneer Nexen

Current Rig Activity - March 2007

(U.S.A. GOM > 4,000 ft)
Prospect
Spiderman Sognelfjord Blind Faith Fourier Atlantis Bass Lite Neptune Thunderhawk Thunder Horse S. Mensa Ticonderoga Mad Dog Holstein Shenzil Tahiti K2 North ahiti North 8,087 7,270 7,087 6,944 6,933 6,822 6,634 6,248 5,712 5,613 5,298 4,968 4,652 4,427 4,344 4,315 4,292 4,049 4,023

Operator
Anadarko Kerr-McGee Shell Chevron BP BP Mariner BHP Billton Murphy BP Shell Kerr-McGee BP BP BP BHP Billton Chevron Anadarko Chevron

Water Depth (ft)

COLLEGE STATION, TX - March 9th, 2007Dr. Stuart L. Scott all rights reserved

RPSEA Seafloor Technologies Forum

COLLEGE STATION, TX March 9th, 2007

Unique Ultra-Deepwater Issues

One of the most remote areas on earth Massive investments required New technology is essential Limited market size

Subsea Development Scheme

Utilize Multiphase Flowlines to Provide Access Processing is Necessary to Effectively Deplete the Reservoir Seafloor Processing Offloads Equipment from Floating Production Structures Seafloor Processing Provides Easier Access for Intervention than downhole
After Mobbs (MPUR-2002)

COLLEGE STATION, TX - March 9th, 2007Dr. Stuart L. Scott all rights reserved

RPSEA Seafloor Technologies Forum

COLLEGE STATION, TX March 9th, 2007

Classification of Subsea Processing Systems

Classification Characteristic
Multiphase Mixture is Handled Directly

Equipment
Multiphase Pump

Water Disposal

Sand Disposal

Type 1 Type 2

None...Pumped with Other NonePumped with Produced Fluids Other Produced Fluids

Partial Separation of the Production Stream

Separator and Multiphase Possible Re-Injection of None..Pumped with Liquid Pump; possible use of Wet- partial water stream, i.e. Stream Gas Compressor "free" water

Type 3

Separator and Scrubber Complete Separation of the Stages w/ Single or Re-Injection/Disposal of Production Stream at Multiphase Pump; possible Majority of Water Stream Subsea Conditions use of Gas Compressor Multi-Stage Separator and Export Pipeline Quality Oil Re-Injection/Disposal of Fluid Treatment; single-phase & Gas Entire Water Stream pumps and compressors

Must be addressed

Type 4

Must be addressed

Subsea Processing Projects

35 30 25 20 15 10 5 0 1985 1990 1995 2000 2005 2010

Installed/ announced Additional prospective applications

Source: OTC 18261 COLLEGE STATION, TX - March 9th, 2007Dr. Stuart L. Scott all rights reserved

RPSEA Seafloor Technologies Forum

COLLEGE STATION, TX March 9th, 2007

Example: Subsea Multiphase Pumping

Helico-Axial Twin-Screw Piston

Moderate GVFs High Rates Framo

22+ Pumps Installed Significant Accumulated Run Time

High GVFs Nuovo Pignone / GE Leistritz

Curtiss-Wright & Petrobras Marlim Field 3rd QTR 2007

Large Ps Hydril
Conceptual

AkerKvaerner
Demo 2000 Project Lyell Field (CNRL) 12/2005 King Field (BP) 2007 Bornemann MPA Project Wintershall (2004)

Sulzer
Technip & IFP Announced 2004

Flowserve
Subsea7 & Shell (2005)

CAN-K

Subsea TwinScrew Pump (CNRL)

Where:
North Sea Lyell Field

Why:
Improve Recovery Improve Flowrates

Who:
AkerKvaerner Bornemann Pumps

Status:
Deployment Dec. 26, 2005 First Oil January 2006
COLLEGE STATION, TX - March 9th, 2007Dr. Stuart L. Scott all rights reserved

RPSEA Seafloor Technologies Forum

COLLEGE STATION, TX March 9th, 2007

Challenges for Testing and Qualification of Equipment

subsea is an expensive environment for experimentation Options: Do nothing and hope for the best Field Testing .from an offshore platform or structure Pressurized Component Testing
.of individual seals, valves, penetrators, etc.

Testing Using a Pressurized Outer Shell

Pressurized Using An Outer Shell

Used by:
Voith Turbo Bornemann

Difficulties
Not a General Testing Solution Adds Structural Rigidity Does not Capture Heat Transfer (contraction/expansion)

COLLEGE STATION, TX - March 9th, 2007Dr. Stuart L. Scott all rights reserved

RPSEA Seafloor Technologies Forum

COLLEGE STATION, TX March 9th, 2007

Challenges for Testing and Qualification of Equipment

subsea is an expensive environment for experimentation Options: Do nothing and hope for the best Field Testing .from an offshore platform or structure Pressurized Component Testing
.of individual seals, valves, penetrators, etc.

Testing Using a Pressurized Outer Shell Module/Unit Testing

Submerged the current Industry Best Practice
Dynamic Tests of Rotating Equipment

Framo Test Facility

(Norway)

COLLEGE STATION, TX - March 9th, 2007Dr. Stuart L. Scott all rights reserved

RPSEA Seafloor Technologies Forum

COLLEGE STATION, TX March 9th, 2007

Atalaia Test Facility - Brazil

After Dal Porto (2001)

2 Multiphase Pumps for Canadian Application

COLLEGE STATION, TX - March 9th, 2007Dr. Stuart L. Scott all rights reserved

10

RPSEA Seafloor Technologies Forum

COLLEGE STATION, TX March 9th, 2007

Upcoming Ormen Lange Pilot Test - Norway

Ormen Lange Subsea Compressor Pilot 1 x 12.5 MW train in test pit Subsea transformer, switchgear & VSD.

Subsea Compression Train

Anti-surge cooler Scrubber Magnetic bearings control system Compressor Module Compressor VSD

Pump Module

Pump VSD

COLLEGE STATION, TX - March 9th, 2007Dr. Stuart L. Scott all rights reserved

11

RPSEA Seafloor Technologies Forum

COLLEGE STATION, TX March 9th, 2007

Challenges for Testing and Qualification of Equipment

subsea is an expensive environment for experimentation Options: Do nothing and hope for the best Field Testing .from an offshore platform or structure Pressurized Component Testing
.of individual seals, valves, penetrators, etc.

Testing Using a Pressurized Outer Shell Module/Unit Testing

Submerged the current Industry Best Practice
Dynamic Tests of Rotating Equipment

Pressurized the Step Needed for Ultra-Deepwater

Dynamic Tests of Rotating Equipment

Research and Unique Test Facilities are Needed for Ultra-Deepwater Production
Operating rotating equipment in a no-maintenance environment New HP/HT considerations Reduce Environment Risks (flowlines & equipment) New test facilities are needed in the U.S.A. to support GOM development Cost constraints dictate a shared qualification facility rather than facilities operated by individual companies
COLLEGE STATION, TX - March 9th, 2007Dr. Stuart L. Scott all rights reserved

12