A Global Perspective on the Future of
Subsea Technology – SUT Subsea Technical
Conference
February 2009

Agenda
• Future Demand
• What Environment Are We Working In
• Current Status Of Subsea Developments
• Subsea Systems Update
• Engineering Developments
• Message To The Industry

Energy Resource Update
• The IEA warn that reserves will need to be exploited faster than at
present if an energy ‘Crunch’ is to be avoided in the future
• $1 Trillion needs to be invested annually up to 2030
• Even if demand remains flat until 2030, an additional 45 mbl/day
needed to offset the effect of oilfield decline

Current Environment
• Enhanced Environment and Safety Performance
• Large Demand in SE Asia for Oil & Gas
• Driven to Deeper Waters – 1000m+
• Hostile Environments
• Innovative Engineering Solutions
• Gradual Elimination of Surface Facilities
• Enhanced Recovery
• Remote Field Management
• Total Acceptance of Subsea Solutions

Current Status of Subsea Developments
• Deepwater to 2500m +
• 15K systems in operation
• One major Operator has gone from <10 subsea projects in the
90’s to a projected 50 in 2013
• Tie back distances already exceed 100 km
• Subsea Processing
– Multiphase Pumping now accepted technology
– Compression by 2010 – Ormen Lange + others proposed
– Separation/Boosting/WI – Tordis 2007
– RWI – Tryihans, Columba, Albacora
• Risers –SCR’s, Flexibles, Towers
• Subsea Wells – Worldwide
– Operational - >3400
– Under development - >600

SUBSEA PROCESSING SYSTEMS
Why Do We Need Subsea Processing?
• Oil & gas fields being discovered in deeper, more remote places
• Fields further away from host facilities or shore
• Increased recovery factors
• Improved flowrates
• Improved flow assurance
• Potential cost savings over use of conventional technology, eg
second pipeline
• Improved project economics

Res.Pres.Gradient
Subsea WellsDry Wells
Tieback Distance6 - 8 km 10 - 100 km
Lift, Boost and Separation Options
Flow Assurance
Wax
Hydrates
Scale
SUBSEA DEVELOPMENT CHALLENGE
WaterDepth

• Access to difficult reserves
• Accelerated production
• Improved flow assurance
• Reduced capex and opex
• Improved reservoir recovery
• Shorter time to first oil
TECHNOLOGY DRIVERS ……

• Maturity / Limits of technology ?
• Demonstration of reliability ?
• Sufficient priority and focus ?
• Business risk ?
• Mental barriers – perceptions ?
• Long field life
………AND CHALLENGES TO BE RESOLVED

TIME
CAPABILITY/COMPLEXITY
2002
2004
2006
2008
2010
2012
Multiphase
& Injection
Pumping
Water Removal &
Debottlenecking
Full Subsea
Processing
Key features of evolution
• Stepwise in capability and complexity
• Small steps to manage risk
• Modular system approach
SUBSEA PROCESSING EVOLUTION
Subsea Gas
Compression
3 Phase Separation
Subsea Water Removal
Boosting & Injection

System Development
• Multiphase Pump
• Injection Pump
• Gas Compressor
• Integrated Prod. Umbilical
• Separators – Compact / Downhole
• Power Distribution & Power Connector Technology
• All Electric Products
• Multiphase Pumping System
• Raw Water Injection System
• Subsea Separation System
• Subsea Cooling or Heating System
• All Electric Systems
FOCUS AREAS
Equipment Development
2000 2005 2010 2012

SUBSEA PROCESSING EQUIPMENT
MULTI PHASE PUMP
Application:
• Well stream energy enhancement
Advantages:
• Drawdown of wellhead pressure
• Increased production rates
• Increase reservoir recovery
• Increased tie-back distance
• Separated liquids evacuation
Status:
• Helico-axial pumps in operation subsea
• Twinscrew pumps qualified – pilot subsea application 2005

SUBSEA PROCESSING EQUIPMENT
INJECTION PUMP
Application
• Water injection pressure boosting
Advantages
• Increased injection rates
• Increased tie-back distance
• Ability to inject produced water or sea water
subsea
Status
• Pump designs well proven topside
• Critical parts qualified in MPP programme
• Detail design of production version complete

SUBSEA PROCESSING EQUIPMENT
SUBSEA GAS COMPRESSOR
Application:
• Subsea gas compression
Advantages:
• Drawdown of wellhead pressure
• Increased production rates
• Increase reservoir recovery
• Increased tie-back distance
• Separated gas evacuation
• High tolerance for liquid droplets
Status:
• In development by various specialist
companies

SUBSEA PROCESSING EQUIPMENT
COMPACT SEPARATION TECHNOLOGY
Application:
• Compact gas, oil and water 2 or 3 phase
separation
Advantages:
• Small size and weight
Status:
• Separation performance qualified
topside
• Gas/Liquid 2 phase unit in operation
offshore
• Concept design for subsea unit
complete

SUBSEA PROCESSING EQUIPMENT
COMPACT ELECTROSTATIC COALESCER
Application:
• Removal of water from oil after separation
Advantages:
• Small size and weight
• Oil polishing to 0.5% water in oil
Status:
• Topside pilot unit on Petrojarl FPSO
• Design for subsea unit complete
• Subsea equipment components
qualified
• Next step subsea pilot testing

HSP
Power
Fluid
X-over
Injection Zone
Oil to
surface
Production Zone
H-Sep
Application:
• Remove water from well stream
and re-inject into reservoir
Advantages:
• Improvement on production rate
• Improves reservoir recovery
• Produces export-quality oil
• Good quality injection water
Status:
• Land base testing complete
• Offshore pilot testing next step
DOWNHOLE SEPARATION
SUBSEA PROCESSING EQUIPMENT

SUBSEA PROCESSING EQUIPMENT
INTEGRATED PRODUCTION UMBILICAL
Application:
• Integrated flowline, control umbilical and
power cable
Advantages:
• Simplified subsea architecture
• Cheaper faster installation
• Can be used as production flowline or
service line
• Trace heating and monitoring possible
Status:
• 8 and 10 inch prototype test completed
• Next step 10 inch IPU system test
Disadvantages – installation vessel size /
jointing of superduplex offshore

SUBSEA PROCESSING SYSTEMS
Subsea Power Distribution
Electric - Ability to handle the power requirements
of a subsea processing system, particularly subsea
pumps
More efficient than hydraulic, particularly over
longer distances due to hydraulic losses. However
AC systems become inefficient on long step outs
and may drive to DC systems or subsea power
generation technology.
Hydraulic - Able to utilise existing water injection
system
Simpler system
May compromise water injection system
Limited distances

System Development
• Multiphase Pump
• Injection Pump
• Gas Compressor
• Integrated Prod. Umbilical
• Compact Separator
• Downhole Separator
• Power Distribution System
• Multiphase Pumping System
• Raw Water Injection System
• Subsea Separation System
• Subsea Cooling or Heating System
FOCUS AREAS - SYSTEMS
Equipment Development
2000 2005 2010

FOCUS AREAS - SYSTEMS
System Development
• Multiphase Pump
• Injection Pump
• Gas Compressor
• Integrated Prod. Umbilical
• Compact Separator
• Compact Coalescer
• Downhole Separator
• Multiphase Pumping System
• Raw Water Injection System
• Subsea Separation System
Equipment Development
2000 2005 2010MULTI PHASE PUMPING SYSTEM
• IPU functionality
• Production pipe
• Power supply and
umbilical functions
• Heating for hydrate
mitigation for
production and shut-
down
• IPU functionality
• Production pipe
• Power supply and
umbilical functions
• Heating for hydrate
mitigation for
production and shut-
down
• Pump functionality
• Well stream pressure boosting
• Optimization of gas lift in artificially lifted wells
• Pump functionality
• Well stream pressure boosting
• Optimization of gas lift in artificially lifted wells
Subsea Production
Trees
Subsea Production
Trees

SUBSEA PROCESSING SYSTEM
System Development
• Multiphase Pump
• Injection Pump
• Gas Compressor
• Integrated Prod. Umbilical
• Compact Separator
• Compact Coalescer
• Downhole Separator
• Multiphase Pumping System
• Raw Water Injection System
• Subsea Separation System
Equipment Development
2000 2005 2010RAW SEAWATER INJECTION SYSTEM
• Injection Pump and Filter System functionality
• Filtering raw water to injection quality
• Water injection for pressure maintenance
• Injection Pump and Filter System functionality
• Filtering raw water to injection quality
• Water injection for pressure maintenance
Water Injection TreeWater Injection Tree
Power, Control & Chemical
Injection Umbilical
Power, Control & Chemical
Injection Umbilical

SUBSEA PROCESSING SYSTEM
SUBSEA SEPARATION SYSTEM
• Separation System
functionality
• 2 or 3 phase separation of
wellstream
• Increase production
• Increase reservoir
recovery
• Improve flow assurance
• Debottleneck flowlines,
riser and topside systems.
• Re-inject produced water
• Separation System
functionality
• 2 or 3 phase separation of
wellstream
• Increase production
• Increase reservoir
recovery
• Improve flow assurance
• Debottleneck flowlines,
riser and topside systems.
• Re-inject produced water
Gas CompressorGas Compressor
SeparatorSeparator
Water Injection
Trees
Water Injection
Trees
Oil and Gas Export
Lines
Oil and Gas Export
Lines
Power and Control
Umbilicals
Power and Control
Umbilicals
Subsea Production
Trees
Subsea Production
Trees
Booster PumpBooster Pump

SUBSEA PROCESSING SYSTEMS
Subsea Cooling and Heating
Can provide an effective
mitigation against
hydrates and wax by
increasing cooldown time
Can provide a solution to
upheaval buckling
concerns
Able to utilise certain
flowline materials, e.g.
flexible lines and certain
insulation coatings, which
have a lower design
temperature threshold

Geological Surveys
• 3D Software Fledermaus
• Pipeline Routing
• Integrate with ABAQUS
• Significant Financial Savings

Lateral Buckling on 3D Seabed

MESSAGE
• The subsea industry has met its challenges over the years with some
catastrophes but many successes
• Considerable R&D spend on subsea technology
• Greater emphasis on testing before full field implementation
• Reliability Standards being set – Structured Approach
• Incorporation of lessons learnt
• Improve Quality Management to ensure second and third tier suppliers
testing / documentation traceability is visible
• Standardisation is key to cost containment and reliability
• Programme approach bring major benefits in schedule & cost
• December 2007 – the worlds first seabed separation facility installed on
Tordis
Subsea Systems Will Facilitate Australia’s Development Of Its Oil
& Gas Reserves

Remember – this is not rocket science –
It’s much harder than that!
MESSAGE