© SBM Offshore 2013. All rights reserved. www.sbmoffshore.com

Floating Production Storage and Offloading Technical Challenges – October 21

Kurtz Marketing & Management

2

Presentation by Kurtz Marketing & Management*

on behalf of SBM Offshore

*) KMM is a Dutch-based business development company active in bridging

global high-tech industries and in bringing oil and gas expertise to the

emerging Israeli natural gas industry.

www.kurtzmarketing.com

Agenda

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FPSO • Market

• Drivers for FPSO

• FPSO Overview

• Mooring Solutions

• History

• Local Content

Future • Technical Challenges

• Key Trends

• Local Content

• Conclusion

• 256 floating production units in service • 157 FPSO’s (61%)

• 77 floating production units are on order • 44 FPSO’s (57%)

FPSO Market Presence

35 12

4

24

38 21

14

Source IMA Report March 2013 4

FPSO Market Outlook

Field developments requiring FPSOs over the next 3 years

More than 50 FPSO projects currently expected to be awarded

Source: SBM Offshore - August 2013

Lease

Sale

Lease or Sale

IR - 07/08/2013

5 1

2

Asia

3

0

1

Other

4

0

3

North America

8

4

5

Africa

14

2

2

South America

• Why use an FPSO? • Remote locations

• Storage

• Payload

• Schedule

• Real estate

• Easy to install

• Relocation

• Hurricane/cyclone environments

• Lease and operate option

• FPSOs were first deployed as an economical solution for

marginal fields.

• FPSOs became an essential component in developing

remote offshore fields as Early Production Systems (EPS)

• Increasing production capacity, turret/swivel technology

and riser advances have allowed their utilization as full

field production facilities

Drivers for FPSO

6

FPSO Overview

Fabrication Vessel Conversion

Vessel Types Aframax, Suezmax, VLCC

Length 250-330m

Beam 35-60m

DWT 80,000 to 320,000

Oil

Production

40,000 to 150,000bopd

Water

Production

20,000 to 180,000

Gas

Production

20-600 mil ft3/day

0.5-17 mil m3/day

Storage 500,000 to +2mil Barrels

Persons on

Board (POB)

50-150

Service Life 10-30 years

7

Spread Moored

8

Turret Moored

9

Shell Spain

Castellon Field, Offshore Spain

1976 – 1986

Tanker Size 60,000 DWT

Storage Cap. 420,000 bbls

Water Depth 100m

Production Rate 20,000 bbls/day

Riser Single 4” ID

Mooring System Single

Anchor Leg System (SALS)

Offloading Side by Side

Contract Turnkey

Supply of Mooring System SBM

FPSO Castellon

10

BHP Petroleum

Jabiru Field, Timor Sea

Offshore Australia

1986 - 2010

Tanker Size 160,000 DWT

Storage Cap. 845,000 bbls

Water Depth 125m

Production Rate 27,000 bbls/day

Riser/Mooring Ext. Disconnectable Turret.

Offloading Tandem

Contract SBM

System Turnkey Supply of Disconnectable

Riser Mooring System

FPSO Jabiru Venture

11

Shell Expro

Teal & Guillemot Fields

Offshore UK

1996 - present

Tanker Size 129,500 DWT

Storage Cap. 850,000 bbls

Water Depth 100m

Production Rate 60,500 bbls/day

Riser 12 Flexibles

Mooring System Internal Turret

Offloading Tandem

Contract SBM Turnkey Supply,

tanker, topsides,

mooring & installation

(first such contract by

operator)

FPSO Anasuria

12

Petrobras

Ishabella Field, Offshore Brazil

2014

Tanker Size 265,000 DWT

Storage Cap. 1,600,000 bbls

Water Depth 2140m

Production Rate 150,000 bbls/day

Riser 55

Offloading Tandem

Mooring System Internal Turret

Contract SBM Turnkey Supply,

re-refurbishment,

lease, operate

FPSO Ilhabela

13

Multiple Conversion

FPSO VI

Nigeria, 1986-1998

Espadarte FPSO

Brazil, 2000-2011

Anchieta FPSO

Brazil, 2012-2030

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Technology Challenges

FPSO Complexity (Generation 3) Advanced Mooring Technology

Process Intensification

IR - 07/08/2013

FLNG Turret

15

Ultra Deepwater

Beyond 3000m

Deep Reservoirs

Extreme HP/HT

Surface Processing

Seabed Processing

Analogue Oilfield

Digital Oilfield

LNG Plants Onshore

Floating LNG

+ underlying trends for increased safety & environmental performance, and reduced life cycle costs

Risers, logistics, met-ocean data, frontier areas

Drilling costs, completions, trees, risers , sour fluids

Compressors, power supply, reliability, cost

Recovery, performance, manning levels

Cost, schedule, permits, local content, jobs

From To Factors

Key Technology Trends

Local Content: Competitive Advantage

17 IR - 07/08/2013

Brazil:

In-country presence since 1968

First FPSO in 1997

Brasa yard key asset for SBM

Stake in biggest floating crane in

Latin America

Over 2,700 employees

August 2013 17 IR – 09/09/2013

Local Content: Competitive Advantage

18 IR - 07/08/2013

Angola:

In-country presence since 1968

First FPSO in 1999

Paenal yard key asset for SBM:

biggest crane in West Africa

Over 1,400 employees

August 2013 18 IR – 09/09/2013

• FPSO’s have proven safe and

reliable operation experience since

1976

• They make up +60% of the worlds

total offshore production units

• FPSO’s are development solution of

choice for ultra-deepwater (>1500m)

• Their size and complexity have

increased

• They provide a robust solution for the

Levant basin: • Ultra-deepwater

• Complete gas processing offshore

• Condensate storage

• Schedule

• 30 year life

Conclusions

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• Please contact Kurtz Marketing & Management for any questions you might have:

Kobi Kurtz

kobi@kurtzmarketing.com

Bert van der Heide

bert@kurtzmarketing.com

Tel: +31-10-453.1320

Thank you!

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