NOVOTEL LONDON WEST • LONDON, UNITED KINGDOM • 2-4 APRIL 2019Schlumberger-Private

Reaping the Benefits of New Contract Models and Proven Technology

Jostein TvedtOneSubsea

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Agenda

• Introduction to Dalmatian• Development Strategy• Proven Technology• Benefits of Contract Model• Project Execution Success• Conclusions

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Dalmatian Field

• Gulf of Mexico - Desoto Canyon Field Development

• 260 kilometers SE New Orleans, 2 well Tieback

• Daisy chained developmento Phase 1 – 35 km PIP oil well tieback & 38 km gas

well tiebacko Phase 2 – 18 km extension PIP ‘bolt-on’ to Phase 1o Future well opportunities

• Studies undertaken to look at IORo Water Injectiono Artificial Lift

DC4 #1DC48 #1

Subsea Pump• Lowers Wellhead Pressure• Increases Near-Term Production• Captures Additional Reserves

Petronius(Chevron)

DC134 #2

DC134 #1Future

DC91Future

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Development Strategy• Integrated Asset Modeling performed

o GAP, OLGA

• Subsea multiphase boosting yielded best economic benefits and the lowest overall risk

• Sanctioned on existing 2 well production• EPCIC contract

o Contractor to manage interface riskso Functional specificationso Fit for Purpose designo Reduced operator project team organization

• Several business models evaluatedo Milestone paymentso Performance Basedo Deferred payments

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Proven Technology

Statoil, Troll Hess, Ceiba C3/C4 Hess, Ceiba FFD Santos, Mutineer & Exeter CNR, Columba E BP, Schiehallion

Oilexco, Brenda Statoil, Tordis Woodside, Vincent Murphy, Azurite Total, Pazflor Petrobras, Albacora Repsol, Mont. & Lubina Petrobras, Barracuda

CNR Int., Lyell Total, CLOV Chevron, JSM Shell, Draugen Total, GirRI Statoil, Gullfaks ExxonMobil, JuliaPetrobras, Marlim

Total, MoHo

Statoil, Lufeng ExxonMobil, Topacio

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Proven Technology

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Accumulated operation experience of more than million hours

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Reaping the benefits of new contract model – EPCIC

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Completion

Separate milestones

Time

Delayed SURF award

Degree of misalignment

TraditionalCompletion

Project gates(Better interfacing)

Time

AllianceCompletion

SPC execution

SIC execution

Degree of misalignment

Alignment pre-award

Subsea Integration

Alliance award

Client ready to award contract SPC execution

SIC execution

SPC = Subsea Processing ContractorSIC = Subsea Installation Contract

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Team Involvement– EPCIC

Contract award

System engineering

Product engineering and fabrication Testing Transport Site receive

testTopside

installationSubsea

installationPre-

commissioning Commissioning Field Start-up

Subsea Installation Contractor*Subsea Processing Contractor**Team Involvement

Project Schedule

Transport Subsea Installation

Alignment pre-award

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Project Execution Success

• Great benefit seen from the EPCIC contracto Reduced cost and risko Fully integrated project teams from day oneo Fully Integrated Scheduleo Fully aligned from concept to executeo Less Interface management for operator and

contractor

• A small integrated team has provided an efficient execution with open communication

• Negligible variation orders

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Client requirement based on functional specifications

Further optimized by the integrated project team

Typical 2500 documents issued to operator 400 documents issued to operator

EPC Client Standard Specifications

EPCIC Functional Specification

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Project Execution Highlights - Product optimizationDesigned For InstallationDesigned prior to have SIC onboard

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Project Execution Highlights - Product optimizationDesigned For InstallationDesigned prior to have SIC onboard

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• System delivered in 23 months, from contract award to system start up.

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Project Success

• At system start-up more than 250% production increase

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Conclusions

• Subsea processing technology is a game changer for both green field and brownfield developments

• Our industry needs to be open to work differently from what’s been done in the past

• This story shows the great success with a new contract model, that benefit both operators and contractors.

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