THEOKUME COMPLEX

PROJECT

August 25, 2005

July, 2005 MTS 8-25-05

EQUATORIALGUINEA

CAMEROONMalabo

GABON

NIGERIA

Bata

Ebano

OvengOkume

100

100

100

Elon

Okume Complex

West AfricaPopulation ~ 500,000

Size Maryland

Former Spanish colony –Spanish, tribal languages and English spoken

Major increases in petroleum revenues over last 5 years –ExMo Zafiro, MOC Alba,AHC Ceiba

International spotlight – issues with transparency of budgets and oil revenues

Limited indigenous service infrastructure, but considerable intrest to develop

EQUATORIAL GUINEA

~=

AREA MAP

July, 2005 MTS 8-25-05

EbanoEbano

OvengOvengOkumeOkume

100

100

100

0 KM105

Contours in Meters

ElonElon

SUB SURFACE

• Deepwater turbidites• EUR ~ 200 mmbbls

July, 2005 MTS 8-25-05

Central processing

facility

Satellite 1

Satellite 2

Satellite 3

Sendje CeibaFPSO

Okume/EbanoMini-TLP

Oveng Mini-TLP

Elon

• AHC W.I. : 85%• OPERATOR : AHC• 43 WELLS (26 Prod, 17 Inj), 71 Slots• 60 kbopd, 120 kbfpd• 135 kbswipd, SO4 removal• 10-15 mmscfd gas

injection/disposal/storage• Full field gas lift

FIELD LAYOUT

July, 2005 MTS 8-25-05

PROJECT ORGANIZATIONAL CHART

Devlp. Geol.B. Hay

Devlp. Geol.J. Henson

SS Team Lead S. Guscott

Devlp. Geol.S. Uchytil

Devlp. Geoph.M. Simon

Devlp. Geoph.J. Hewlett

Devlp. Geoph.R. Humphrey

Reservoir Engr. 3

Res. Simul. Engr.J. Spokes

Res. Simul. Engr.J. Bush

Operations Geol.(in country)

Tech. ManagerB. Harrison

Drilling Engr.D. Schwartz

Drilling Engr.G. Marmottin

Compl. Engr.R. Leeth

Compl. Engr.G. Mathews

Drilling Mgr. – WAG. Manry

Project EngineerC. Edel

Installation Coord.C. Willis

C. Whipple (Rep.)Construction Mgr.

Topsides/Interface Engr.S. Brumbaugh

V. CorsoRiser/Tendons Engr.

Naval Arch.S. Bultema

Structural CoordinationD. Payne

Topsides Engr. 2B. Hajdik

Topsides Engr.C. Melancon

Elec./Instr.Engr.K. Strenge

Project EngineerS. Whitaker

Mech. Engr.K. Masson

Comms./AutomationJ. Linehan

Operations Mgr.B. Fowler

Sr. Ops. Eng.J. Pere’

Prod. Supv.G. Collins

Prod. Supv.L. McBride

HSE LeadH. Chapman

Proj.Controls LeadA. Diaz

Project ManagerJ. Simon

SubsurfaceDrilling / Complet. Structures Topsides

Pipelines / Sub-sea Ops

EHS

Current AHC Employee

AHC Employee to be hiredContract Employee now on board

Legend

Global Complt.MgrS. Brown

Construction Coord. M. Blaine

TLP’s

Platforms

Safety ConsultantB. Carpenter

Geol. 4

EngineeringTechnician

Automation Engr.B. Ahlefeld

TLP TopsidesS. Brumbaugh

Mech. Engr. (Rep.)P. Kitchen

Mech. Engr. (Rep.)W.Orzechowski

Procurement Mngr.R. Fessler

Procurement

Proc. SpecialistG. Maskew

Proc. Specialist.M. McKinleyProc. Advisor

C. Eikner

Constr. ForemanG. Wood

Flex. RisersJ. Witz

Proj. Serv. Coord.D. Hurst

Proj. Controls

July, 2005 MTS 8-25-05

ForecastFACILITIES

Project Team , CAR, StudiesElon CPF, SatellitesOveng, Okume/Ebano TLPsSubsea

Total Facilities 653.0

D&C

DrillingCompletion

Total Drilling / Completion 453.4

TOTAL 1106.4

CAPITAL BUDGET

July, 2005 MTS 8-25-05

0

100

200

300

400

500

600

700

800

900

1,000

MM

$

PlannedActual

Planned 0 3 11 14 14 299 440 516 521 536 571 590 661 854 854 854 854 854 854 854

Actual 0 3 3.6 20 23.1 342.5 478.1 509.4 521.8 573.9 580.8 614.4 650.1 909.1

M J J A S O N D J F M A M J J A S O N D

2004 2005

COMMITMENT STATUS

909.1

July, 2005 MTS 8-25-05

COMPONENT FABRICATION LOCATIONS

• CPF & Satellite Deck & Jacket Fabrication

• Facilities Equipment Skids

• TLP Tendon and Pipe Fabrication

Tendon SJs & Pipe

Prod. Risers & Line pipe

TLP Hull & Deck Fabrication

Tendon Pipe & Casing

Line Pipe

Flexible Risers

July, 2005 MTS 8-25-05

Man-Hours Recordable Injuries Lost Time Injuries

Month ITD Month ITD Month ITD

Mustang Eng. 13,266 164,199 0 0 0 0

Intec Eng. 1,103 11,721 0 0 0 0

MODEC 10,586 47,247 0 0 0 0

Gulf Island 32,332 159,520 1 1 0 0

Kiewit 25,467 72,419 0 0 0 0

Samsung H.I. 158,454 720,312 0 0 0 0

Total 241,208 1,175,418 1 1 0 0

Contractor

CONTRACTOR SAFETY PERFORMANCE

July, 2005 MTS 8-25-05

Task Name

FEED and Project ApprovalsPoD ApprovalExecution Phase

FacilitiesDetailed Design Engineering Bid Process

CPF Structural DesignSatellites Structural DesignCPF Process/E & ISatellite Process/E & IEquipment Procurement/DeliveriesSkid & Module FabricationSatellite Fabrication Bid ProcessSatellite Jacket/Piling FabricationSatellite Deck Fabrication & OutfittingCPF Fabrication Bid ProcessCPF Jacket/Piling FabricationCPF Deck Fabrication/Outfitting

TLP Bid ProcessDesign Procure & Fabricate Okume TLPDesign Procure & Fabricate Oveng TLPDesign/Purchase Subsea/SupportInstallation Services Bid ProcessOffshore Installation CPF Jacket & Satellites

Offshore Installation TLPsOffshore Installation of Pipelines & RisersOffshore Installation CPF & Sat 3 Topsides

Offshore Hook-upsDrilling

Drilling & Completions OOEJack-up Drilling Rig Bid ProcessTender Assit Drilling Rig Bid ProcessDrilling & Completions Elon

First Oil

7/29

12/31

M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D2005 2006 2007

PROJECT SCHEDULE

July, 2005 MTS 8-25-05

OVENG & OKUME TLPs

• MODEC (EPC)

• 280, 500 meters• 18 slots, top tensioned risers• 10 initial wells planned at Oveng

13 at Okume/Ebano• Front-end process facility on each

TLPs

UNIQUE CHALLENGES• Two TLPs Concurrently (AHC’s first)• Drill with tender-assist platform rig• High angle (i.e. 60-70o +) wells with

multiple completions, including “Smart Wells”

July, 2005 MTS 8-25-05

TLP HULL FABRICATION

Okume TC 41 Block Okume TS 30 Block

Oveng TS 10 Block Oveng BS showing well slots

July, 2005 MTS 8-25-05

TLP DECK FABRICATION

Oveng Main Deck Okume Main Deck

Oveng Cellar Deck Okume Cellar Deck

July, 2005 MTS 8-25-05

TLP TOPSIDE EQUIPMENT

Disposal Sump Caisson

Gas Flotation Skid Pressure Vessels

Crude Run Tank

July, 2005 MTS 8-25-05

CPF4-Leg Platform w/ Skirt Piles

205 Ft-

Processing

Satellite 24-Leg

Platform206 Ft

15 Slots-

Satellite 1Tripod

Platform 228 Ft 8 Slots

–

Satellite 34-Leg

Platform145 Ft

12 SlotsSeparation

ELON FACILITIES ElonReservoir

July, 2005 MTS 8-25-05

Satellite 2 JacketSatellite 1 Jacket

Satellite 3 Jacket CPF Jacket

ELON JACKET FABRICATION

July, 2005 MTS 8-25-05

ELON DECK FABRICATION

Installation of Well Head Access Platform

CPF main deck framingMain deck float – Sat. 2

CPF cellar deck framing

July, 2005 MTS 8-25-05

MEMBRANECARTRIDGE

SO REMOVAL4

SEAWATERPUMPS

OKUME / EBANO

ELON

OIL &WATER

GAS

OIL

SLOP OILTANK

GASHP

VENT

GASCOMPRESSOR

CRUDE PUMPS60,000 BOPD

INJECTIONPUMPS

MANIFOLD

FLARE

ELON

GAS

GAS LIFTMANIFOLD

CEIBAOIL SALES

60,000 BOPD

WATERINJECTION

WELLS

GAS LIFT

INJECTION

WATER

OVENG

EBANO

PROD.SEPARATOR

30,000 BOPD

OO EBANOOIL SEPARATOR30,000 BOPD

OO EBANOGAS SEPARATOR

OVERBOARDWATER

WETOIL

IGFWATER

OVENG

OKUME

TESTMANIFOLD

PRODMANIFOLD

LPGAS

OVENG

OKUME

FLUIDSFROM

SAT. #3

PROD.WELLS

WATERINJECTIONOO &

TREATEROIL

GAS

FREEWATERKNOCKOUT

SEAWATERMEDIA

FILTERS

ELON CPF

July, 2005 MTS 8-25-05

Oil Treater Vessel

ELON TOPSIDES PACKAGE FABRICATION

Production Manifold Production Skid Fabrication

Pig Launcher Skid Fabrication

July, 2005 MTS 8-25-05

PIPELINES

Installation Vessel - Seaway FalconInduction welding - CORUS

Tamsa pipe in transit to Port GentilPipe coming out of the expander

July, 2005 MTS 8-25-05

DRILLING / COMPLETION

Tender Assist Drilling Rig – Atwood Seahawk• Commence ~ Sept 1, 2006 for ~ 30 months

Jack Up Drilling Rig – Noble Earl Fredrickson• Commence ~ Oct. 1, 2006 for ~ 20 months

Integrated Contract for Drilling & Completion Services/Products• LOIs issued to Schlumberger (Drilling) and Baker Hughes

(Completions) – Ceiba included.• Some services sub-contracted

Wellheads/Trees - FMC

Seahawk

Earl Fredrickson

July, 2005 MTS 8-25-05

OPERATIONAL READINESS PLANNING

• Key production operations resources embedded in project team from day 1

• OC will more than double production and activity levels for AH in EG

• Recruiting efforts ongoing in earnest, including for field supervision and onshore engineering resources

• Procurement process underway for EG-wide O&M contractor

• Formulating preliminary commissioning plans

• Developing plan to hire local services and employees (including training)

July, 2005 MTS 8-25-05

• TLP/TADU interfaces – tandem/relative motions, man-way, weights, space

requirements

• Flex riser pull-ins

– TADU, winch, TLP I-tubes

• Sub-sea install/tie-ins– Installation around Jack-up, TADU

• Pre-commissioning, commissioning– Choreography around rig, pipeline installation, simultaneous

operations

• Remote environment

KEY INTERFACE ISSUES

July, 2005 MTS 8-25-05

LOOKING AHEAD

KEY RISKS / CHALLENGES• Fabrication of TLPs at Samsung is on schedule, but critical path

• Fall 2006 installation choreography (Thialf, Falcon, J/U and TADU)

• Drilling / completions planning and execution (high angle wells, complexgeology, numerous completion drivers, services cost optimization)

• Planning, execution, optimization of pipeline tie-ins

• Managing challenging contractors

OPPORTUNITIES • Early life rate upside (need well productivity)

• Okume SE area

• Extra well slots, prices

July, 2005 MTS 8-25-05

KEY MESSAGES

• The Okume Complex project is one of the most challenging and complex AHC has undertaken, and is critical for us to deliver successfully– fortunately, well positioned for success

• Competent project team, and realistic schedule and budget are an essential foundation– fortunately, we have them on OC

• Q1 Safety performance requires continuous commitment and reinforcement– fortunately, we have that dedication and quality contractors

• Successful project execution also requires constructive production engagement and planning– fortunately, we have that on OC

July, 2005 MTS 8-25-05

Thanks for your attention !

Any questions ?