FPSO Decommissioning - · PDF fileBrownfield Services September 2016 FPSO Decommissioning From last oil to last steel. Rafael Torres – Director of Projects. [email protected]

Brownfield ServicesSeptember 2016

FPSO DecommissioningFrom last oil to last steel.

Rafael Torres – Director of [email protected]

© SBM Offshore 2016. All rights reserved. www.sbmoffshore.com 2

Company Overview

Track Record

Decommissioning Context

How SBM Delivers Decommissioning Projects

FPSO Decommissioning Key Information

Why SBM?

Contents

Presenter

Presentation Notes

Agenda

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Company Overview

Presenter

Presentation Notes

Divider

© SBM Offshore 2015. All rights reserved. www.sbmoffshore.com 49/20/2016

BROWNFIELD SERVICESProduct Life Extension

UpgradesModifications

RelocationDecommissioning

Operations270+ years of FPSO experience

99%+ production uptimeLargest international FPSO fleet

InstallationDedicated fleetUnparalleled experienceExtensive project capability

ConstructionStrategic partnerships Unrivalled project experience

ProcurementIntegrated supply chainGlobal efficienciesLocal sourcing

Engineering55 years of industry firstsLeading edge technology

SAFE

Delivery Along Full Product Lifecycle


SBM Lease Fleet Portfolio

CANADA End date of LeaseExcluding extension options

MOPU – Deep Panuke Up to 2021

USA End date of LeaseExcluding extension options

Semi-Sub –Thunder Hawk Up to 2025

FPSO – Turritela Up to 2025

BRAZIL End date of LeaseExcluding extension options

FPSO – Espírito Santo Up to 2024

FPSO – Capixaba Up to 2022

FPSO – Cidade de Anchieta Up to 2030

FPSO – Cidade de Paraty Up to 2033

FPSO – Cidade de Ilhabela Up to 2034

FPSO – Cidade de Maricá Up to 2035

FPSO – Cidade de Saquarema Up to 2035

FPSO – Frade Turn-key

FPSO – P-57 Turn-key

FPSO – OSX-2 Turn-key

MYANMAR End date of LeaseExcluding extension options

FSO – Yetagun Up to 2018

MALAYSIA End date of LeaseExcluding extension options

FPSO – Kikeh Up to 2022

EQUATORIAL GUINEA End date of LeaseExcluding extension options

FPSO – Aseng Up to 2026

CONGO End date of LeaseExcluding extension options

LPG – Nkossa II Up to 2018

ANGOLA End date of LeaseExcluding extension options

FPSO – Mondo Up to 2022

FPSO – Saxi Batuque Up to 2023

FPSO – N’Goma Up tp 2026

Under Construction Lease in Operation Turn-Key (Brazil only)

FPSO – Falcon

FPSO – Brasil

Turn-key projects (Brazil only)

13 FPSOs, 2 FSOs, 1 Semi-Sub, 1 MOPU – 272 years of operationsAverage remaining lease duration: 13.9 years

Laid Up


FPSO / FSO FLNG Semi / TLP Turret Mooring Systems

Brownfield Services 3rd Party O&M Offshore Installation Terminals (Imodco)

SBM Offshore Group:8 Focused Product Lines

Presenter

Presentation Notes

Refresh audience where Brownfield Services fit into the overall SBMO product offerings.


Condition Assessments

Small Studies, Pre-FEED, FEED

Major Repairs & Upgrades

De-Bottlenecking & Capacity Increase

Tie-Backs

Life Extension

Decommissioning

1

2

3

4

5

6

7

Detailed assessment to evaluate overall condition of unit, incl. topsides, hull & moorings.

Full range of engineering services across all aspects of Floating Productions Systems (FPS)

EPC(I) for any equipment/system requiring repair, replacement or upgrade.

EPC(I) for FPSs to provide max. efficiency, throughput and increased handling capacity.

EPC(I) solutions to connect additional wells and risers to an existing unit.

EPC(I) solutions to extend original Asset Design Life, incl. regulatory and class approvals.

EPC(D) solutions to safely and sustainably disconnect, tow and dispose of an asset.

Our 7 Segments of Brownfield Services:…from Moorings to Flare Tip…

Presenter

Presentation Notes

Highlight where Decommissioning fits into the overall SBMO Brownfield Product Line


Condition Assessments

Small Studies, Pre-FEED, FEED

Major Repair & Upgrades

De-Bottlenecking & Capacity Increase

Tie-Backs

Life Extension

Decommissioning

1

2

3

4

5

6

7

Detailed assessment to evaluate overall condition of unit, incl. topsides, hull & moorings.

Full range of engineering services across all aspects of Floating Productions Systems (FPS)

EPC(I) for any equipment/system requiring repair, replacement or upgrade.

EPC(I) for FPSs to provide max. efficiency, throughput and increased handling capacity.

EPC(I) solutions to connect additional wells and risers to an existing unit.

EPC(I) solutions to extend original Asset Design Life, incl. regulatory and class approvals.

EPC(D) solution to safely and sustainably disconnect, tow and dispose of an asset.

Decommissioning:…last but not least…

Presenter

Presentation Notes

Isolate Decommissioning to emphasize that it is the main focus of this presentation.

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Track Record

Presenter

Presentation Notes

Divider


ASSET NAME TYPE FIELD OPERATOR LOCATION END of FIELD LIFE ASSESSMENTS CLEANING VOYAGE PREP DISCONNECTION ASSET DISPOSAL

XV DOMY FSO Elf Nigeria 2002 N/A – Relocated

Jamestown FPSO Agip Italy 2003 Sold to 3rd Party

Falcon FPSO ExxonMobil Nigeria 2006 Green Recycled

Firenze FPSO Agip Italy 2006 Sold to 3rd Party

Rang Dong I FPSO JVPC Vietnam 2008 Green Recycled

Capixaba FPSO Petrobras Brazil 2009 N/A – Relocated

Escravos LPG FSO Chevron Nigeria 2009

Espadarte FPSO Petrobras Brazil 2010 N/A – Relocated

Xikomba FPSO ExxonMobil Angola 2011 N/A – Relocated

Kuito FPSO Chevron Angola 2013 Green Recycled

Schiehallion FPSO BP Scotland 2013

Brasil FPSO Petrobras Brazil 2014 Green Recycled

Marlim Sul FPSO Petrobras Brazil 2014 N/A – Laid-up

Floater Decommissioning SBM Track Record

12 years

13 FPSOs Successful Decommissioned in 12 years

Presenter

Presentation Notes

Rang Dong


DecommissioningLatest Experiences

FPSO Kuito

FPSO BRASIL

FPSO MARLIM

SUL

3 years

3 FPSOs Successful Decommissioned in 3 years

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Decommissioning Context

Presenter

Presentation Notes

Divider


Decommissioning:Market Drivers

MARGINAL / DECLINING FIELDS AGING FACILITIES

LOWER THROUGHPUT HIGHER OPEX

LOWER PROFITABILITY

…making matters worse…

Presenter

Presentation Notes

Explain how companies will inevitably have to consider/face decommissioning of their units at some point.

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How SBM Delivers Decommissioning Projects

Presenter

Presentation Notes

Divider


Steps not shown:Final production shutdown and riser flushingAll required licenses to be obtained prior to commencing any workCleaning scope includes non-regulated and regulated waste (e.g. NORM)

SBM Execution ModelHow we deliver decommissioning projects

ASSESSMENTS

Reg. Compliance Licenses (Local & International + Class Agencies)

Pre-Clean Survey (NORM & HazMat)

Pre-Disconnection

Survey

Seaworthiness Survey

CLEANING

Cargo Tanks Demucking

Process Vessels

Topsides Pipework

Engine Room

VOYAGE PREP

Structural Reinforcements

Equipment Repairs/Upgrades

Voyage Management

(incl. tow contracting)

Out/Inward Clearances (at

origin & destination)

DISCONNECTION

Risers

Umbilicals

Mooring Lines

Final Shutdown & De-manning

ASSET DISPOSAL

Unit Sale RFQ

Sale Contract Negotiations

Recycle Yard Auditing / Selection

Site Supervision at Recycle Yard

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FPSO Decommissioning Key Information

Presenter

Presentation Notes

Divider


Duration of Decommissioning: 6-12 monthsDuration of Green Recycle: 8-10 MonthsUnit Lightweight (LDT): ≈47,000 - 56,680 metric tons

Scope of Work:• Inventory of Hazardous Materials /

NORM Survey / Marine Growth Survey• Preservation Procedures• Cleaning: NORM & non-NORM• Disconnection of Risers, Umbilicals,

Mooring Lines

• Refurbishment/Repair of Voyage-Critical Equipment & Systems

• Access Ladders Fabrication and Installation

• Towing• Mooring Lines Exportation or Destruction

Key Information:FPSO Decommissioning

Presenter

Presentation Notes

Execution Challenges: (to be developed)


Decommissioning:Key Risks & Challenges

Delays in getting licenses → cleaning, exportation etc.Increasing regulation / legislation → liability exposure.Reactivation/refurbishment of decade-old systems/equipment → delayed departure from site.Several subcontractors → several technical interfaces (specially in deepwater).Several interdependent scopes → schedule

misalignment.Scope of Work increase → Not well identifiedPoor estimate of project budget → cost overruns during executionLocation → planning work offshore vs work onshore.

Presenter

Presentation Notes

Explain what the typical risks are so that the audience understands what’s a stake (i.e. what-can-go-wrong type of message).


Decommissioning:Points of Attention

Brazil lacks CNEN approved facilities to receive NORM material

Very small chance to have an FPSO authorized to enter Brazilian waters if it´s identified presence of Sun Coral

Difficult to find a local company able to perform Inventory of Hazardous Materials (IHM survey)

Lacks green recycling yards in Brazil / South America


1. Every dollar counts – benefit from our EPCIOD know-how to optimize your decommissioning costs.

2. No surprises – our robust execution model ensures avoidance of typical decommissioning project pitfalls.

3. No fines – SBM’s solid risk management strategy minimizes exposure to potential regulatory liabilities.

4. Synergies – ability to seamlessly execute simultaneous decommissioning of several units.

5. Established partnerships with key players – including regulatory bodies in the O&G industry.

6. Relocation experience – 4 relocations in last 5 years.

Why SBM:Main Reasons

Presenter

Presentation Notes

Main takeaways. Use these points to emphasize SBM’s value proposition for Decommissioning projects.

Documents

FPSO Decommissioning - · PDF fileBrownfield Services September 2016 FPSO Decommissioning From last oil to last steel. Rafael Torres – Director of Projects. [email protected]