Arctic Experiences and Challenges. PTIL seminar 25. mars 2014 Lars Myklebost Business Manager WGK Norge

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1 Arctic Experiences and Challenges PTIL seminar 25. mars 2014 Lars Myklebost Business Manager WGK Norge

2 Wood Group Kenny - A world leader in subsea engineering 45,000 employees 50+ Countries $7 Billion Sales Wood Group Allister Langlands Chairman Bob Keiller CEO Alan Semple CFO Wood Group Engineering Bob Keiller Wood Group PSN Robin Watson Chief Executive Wood Group GTS Mark Dobler Chief Executive o Wood Group Mustang o Wood Group Kenny o Wood Group Frontier o UK o Americas USA, Latin America & Canada o International Australia, Asia Pacific, Africa, Middle East, Europe/Russia/Caspian o Consultancy services o Oil, Gas & Industrial Services o Power Plant Services o Power Solutions 2 - Wood Group Kenny

3 Our People & Global Reach Wood Group Kenny: 2,650 people 17 countries 27 offices worldwide Norway: 75 people Aberdeen Abu Dhabi Baku Beijing Brisbane Chennai Galway Glasgow Gurgaon Hamburg Houston Jakarta Kuala Lumpur Lagos London Luanda Melbourne Newcastle Oslo Paris Perth Portland Pune Rio de Janeiro Stavanger/Oslo Vancouver 3 - Wood Group Kenny

4 Overview of Presentation Introduction Arctic Challenges / Experiences Global Local (NCS-Barents)

5 Introduction Arctic holds 25% of World Hydrocarbon Un-discovered Reserves Development challenges in Arctic Environmentally sensitive area Remote locations Harsh weather Short operational window Ice issues ->New technologies required

6 Arctic Challenges subsea engineering Shallow water / deep water - different challenges Subsea vs floating system solution Ultra Long Distances Flow Assurance / Terrain Slugging Subsea Pumping and compression Power / Distribution Limited weather window when ice conditions are favorable Construction activities Logistics Need to obtain more ice data Strudel Scour Permafrost Ice Gouging (ice-bergs, ice ridges) Advancement in technology for deep trenching

7 Arctic and Sub-Arctic Experience W G Kenny Russian Arctic Projects Uvatski Pipeline & Field Development Sakhalin 2 Offshore Development Piltun-Astokskoye Early Production System (Field Development) Sakhalin to Tokyo Pipeline Baydaratskaya crossing - Feasibility Study Inchke-More Development Shtokman Ph1 Trunkline (FEED) Nord Stream Barents Sea Gas Export Study Canadian/ Alaskan Arctic Projects Polar Gas Project Vancouver Island Gas Pipeline Panarctic F-76 Flowline Bundle Dryden and Thunder Bay Pipeline North Cook Inlet Oil Pipeline Redoubt Shoal Project North Atlantic Pipeline Project Hibernia OLS Replacement Tyonek Deep Project Strait of Canso Dual 8-inch Pipeline Sable Gas Pipeline (Venture Field)

8 Baydaratskaya Crossing Feasibility Study Location: Kara Sea Engineering feasibility assessment on behalf of Intershelf of a 70km marine pipeline crossing Baydaratskaya Gulf in the Kara Sea. Baydaratskaya Gulf

9 Inchke More Development offshore Dagestan Location: Caspian Sea The client plans to develop an oil and gas field at Inchke-More, 75km south of Mahkachala in the Caspian Sea. The development, approximately 6km offshore, will be developed in two locations, totalling 3 platforms and onshore facilities together with offshore and onshore pipeline. Following aspects required special attention: Periodic ice flows Seismic (tectonic) activity Stringent environmental protection constraints Russian materials and technology Transportation constraints

10 Panarctic F-76 Flowline Bundle Location: Melville Island, Canada Engineer and construction supervision of under-ice installation of PANARCTIC OILS experimental flowline bundle from a subsea wellhead to a shore facility on Melville Island. W G Kenny activities included: Onshore fabrication of a 1.2km pipe bundle with 18-inch casing including heating and freezing facilities Bottom pull installation through blasted permafrost and trenched ice (3m thick) into a sea bed ditch cut by a plow Remote diverless connection to subice wellhead. All equipment was air lifted to site. Melville Island

11 Shtokman subsea FEED WGK involved from up to 2011 Gas Field located 610km from Murmansk in the Russian Barents Sea. Shtokman Field The Phase 1 trunkline system transports gas and condensate 560km from the field to the onshore terminal. 2 x 36 Trunklines (34 ID) Design Life 50 years Design Pressure 189 barg Design Temperature 75degC

12 Shtokman subsea FEED Challenges: Long tie-back Terrain slugging Un-even seabed Global buckling Free-spans Remote location transport/logistics Landfall Short Installation season Arctic challenges?

13 Norwegian Arctic - state of the art? Questions? 13 - Wood Group Kenny

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