eni angola wh dc performance overview_end of project

eni Angola S.p.A. WEST HUB Field D&C performance overview

Luanda, August 05 th, 2016

Agenda

West Hub Project Overview

HSE Statistics

Overall Time & Costs Analysis

NPT and KPI Analysis

Eni Angola Vs OBO

East Hub outlook

2

Map

3

Scope of this presentation is to deliver a performance report at the end of West Hub Field development campaign comparing Actual time with FID.

West Hub Field is the first deep-water offshore development project operated by eni Angola S.p.A (eni share 36,84%, SNG P&P 36.84% and SSI

26.32%). Field is located in Block 15/06 extended in a WD ranging from 1100m to 1300m, 150km from Soyo and 380 Km from Luanda. First part of development Project, commenced on Q3/2013 and ended on Q3/2016 consists of total 23 SS wells delivered to PROD:

9 Sangos

3 Cinguvu

9 Mpungi

2 Mpungi North

Note: all wells defined as critical (WD over 460m)

FO was achieved in Nov 2014 (as per schedule). The nowadays production is counting total 90,000BOEPD (equity 30,000 BOEPD) thru FPSO NGOMA.

The D&C campaign was conducted successfully with Rig unit OR Poseidon and SAIMPEM Scarabeo-9 without any HSE major incidents.

eni Angola is keening to apply important LL acquired in West Hub to forthcoming East Hub Project (9 wells) and future ones, with the target to diffuse to all eni worldwide BU.

4

WEST HUB Project Overview

5

HSE Statistics TRIR and LTIF – West Hub Project

Total Recordable Incident Rate (TRIR)

Lost Time Injury Frequency (LTIF)

HSE performance related to West Hub Project only (PM, FPSO, SPS, R&F, Umbilicals, Installations D&C)

4,249

12,030

5,337

3,852

319 226 168 135 107 136

0.18

0.28

0.24 0.23 0.23 0.23 0.23 0.23 0.23

0

0.1

0.2

0.3

0.4

0.5

0.6

0.7

0.8

0.9

1

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Thousands

Project monthly manhours LTIF

4,249

12,030

5,337 3,852

319 226 168 135 107 136

0.79

1.11

1.14 1.12

1.11 1.11 1.10 1.10 1.09 1.02

0.89 1.03

0.56 0.56 0.56 0.56 0.56 0.56

-

0.20

0.40

0.60

0.80

1.00

1.20

1.40

1.60

1.80

2.00

-

2,000

4,000

6,000

8,000

10,000

12,000

14,000

Thousands

Project monthly manhours TRIR TRIR Target

HSE Statistics TRIR and LTIF – West Hub Project D&C

6

Incidents 2013 2014 2015 Jan-16 Feb-16 Mar-

16 Apr-16

May-

16 Jun-16 ITD

Lost time injuries -

1.0 - - - - - - -

1.0

Restricted work cases -

1.0

1.0 - - - - - -

2.0

Medical treatment cases

3.0

2.0

1.0 - - - - - -

6.0

First aid cases 12.0 13.0

5.0

2.0

1.0 - -

1.0 34.0

Non Injuries/property damage -

1.0 - - - - - - -

1.0

Near miss incidents

21.0 38.0

9.0

1.0 -

1.0

1.0 - - 71.0

Environmental incidents -

1.0 - - - - - - -

1.0

Security Incidents - - - - - - - - - -

Fatalities - - - - - - - - - -

Total reportable incidents

3.0

4.0

2.0 - - - - - -

9.0

Year MHR No. TRI No. LTI TRIR LTIF

2013 1,062,348 3 0 2.82 0

2014 1,150,200 4 1 3.47 0.87

2015 779,810 2 0 2.56 0

Q2/2016 400,848 0 0 0 0

WOP eni Angola HSE performance

7

WH D&C Performance overview

AFE Current [day] [%] [day] [%] AFE Current [USD] [%]

CIN-101 67.00 74.50 7.50 11.19% 8.54 11.47% 95,546,132 92,046,391 (3,499,741) -3.66%

CIN-201 67.20 82.50 15.30 22.77% 8.29 10.05% 96,657,793 99,778,344 3,120,551 3.23%

Cinguvu-2 ST1 45.10 97.54 52.44 116.28% 43.98 45.09% 63,909,632 113,813,005 49,903,373 78.08%

MPU-101 55.60 59.33 3.73 6.71% 5.25 8.85% 71,431,736 72,596,494 1,164,758 1.63%

MPU-201 62.70 37.90 (24.80) -39.55% 0.55 1.45% 77,114,516 46,405,278 (30,709,238) -39.82%

MPU-301 57.10 67.92 10.82 18.94% 14.83 21.84% 74,517,007 84,927,236 10,410,229 13.97%

MPU-302 55.60 52.21 (3.39) -6.10% 5.50 10.53% 71,690,448 65,410,855 (6,279,593) -8.76%

MPU-401 57.00 69.75 12.75 22.37% 13.02 18.67% 73,320,617 81,987,209 8,666,592 11.82%

MPU-501 ST1 55.00 58.48 3.48 6.33% 15.10 25.83% 70,940,343 69,050,139 (1,890,204) -2.66%

MPU-601 55.70 50.04 (5.66) -10.16% 4.46 8.91% 71,715,232 59,881,795 (11,833,437) -16.50%

MPU-801 63.20 51.21 (11.99) -18.97% 4.25 8.30% 83,145,762 66,453,438 (16,692,324) -20.1%

Mpungi-3 ST1 49.80 76.00 26.20 52.61% 24.63 32.40% 65,888,334 90,773,082 24,884,748 37.77%

MPN-201** 68.30 47.58 -20.72 -30% 0.96 2.02% 88,741,731 58,553,143 (30,188,587) -34.0%

Mpungi-4 ST1** 49.73 39.00 (10.73) -21.58% 1.42 3.63% 61,229,506 41,373,690 (19,855,816) -32.43%

SAN-101 ST1* 33.90 70.83 36.93 108.95% 28.29 39.94% 43,619,657 70,903,291 27,283,634 62.55%

SAN-102 51.50 70.46 18.96 36.81% 6.33 8.99% 63,670,843 80,439,090 16,768,247 26.34%

SAN-104 ST2*** 53.90 54.56 0.66 1.23% 5.96 10.92% 62,594,160 55,656,314 (6,937,846) -11.08%

SAN-201 66.30 63.25 (3.05) -4.60% 2.83 4.48% 78,957,423 73,555,094 (5,402,329) -6.84%

SAN-202 61.10 70.00 8.90 14.57% 9.04 12.92% 73,882,222 80,605,069 6,722,847 9.10%

SAN-301 53.50 97.40 43.90 82.05% 35.10 36.04% 65,581,190 109,641,952 44,060,762 67.19%

SAN-302 ST1 46.20 76.46 30.26 65.49% 18.54 24.25% 58,491,887 83,315,982 24,824,095 42.44%

SAN-303 65.40 79.50 14.10 21.56% 11.75 14.78% 77,701,964 89,505,217 11,803,253 15.19%

SAN-401 57.00 76.50 19.50 34.21% 13.88 18.14% 68,168,086 81,167,689 12,999,603 19.07%

SAN-402 58.80 69.21 10.41 17.70% 12.34 17.84% 73,888,344 71,775,610 (2,112,734) -2.86%

SCA-9 BOP Maintenance 2015 35.00 30.00 (5.00) -14.29% 1.02 3.40% 29,643,950 28,312,552 (1,331,398) -4.49%

SCA-9 BOP Maintenance 2016 30.00 23.00 (7.00) -23.33% 0.48 2.06% 30,000,000 20,630,282 (9,369,718) -31.23%

TOT 1421.63 1645.12 223.49 15.72% 296.35 18.01% 1,792,048,515 1,888,558,241 96,509,728 5.39%

Note: Legend:

NPT < 10 % 11 wells

*** SAN-104 ST2 out of GDPP SoW (well replacing SAN-101 ST1) 10%< NPT < 35 % 10 wells

NPT > 35 % 3 wells

24 wells

* Wells with UC installed (SAN-101ST1 well abandoned replaced by SAN-104 ST2)

** MPUNGI-4ST1 and MPN-201 (Mpungi North Project)

a) AFE Planned are costs from GDPP (P50 - Mpungi 1st Phase P30)

b) ACTUAL are considered as technical costs (from DDR)

c) GDPP Rig POSEIDON Spread Rate = 1.273 MUSD/Day - Rig SCARABEO-9 Spread Rate = 1.273 MUSD/Day

-

NoteTime [day]

Sangos

Mpungi North

Mpungi

Cinguvu

WellFieldΔC-A N.P.T. Cost [USD] ΔC-A

8

WH D&C Performance overview

* Including SAN-104 ST2 (replacement of SAN-101 ST1)

1645.1

1395

+54 +2

+137 -34

+75 1628

+18 (+1.1%)

-0.8 (-0.05%)

1645 (+1.05%)

vs. Revised SOW (+17.9% vs. OSOW)

1,000

1,100

1,200

1,300

1,400

1,500

1,600

1,700

1,800

1,900

2,000

OSOW GDPP

Annex 1

(SAN-CIN-MPU-MPN)

SAN-104ST2 Pilot Hole

SAN-201

UC Extra

Ops

(Re-entry+N2displ.+WT)

X-Tree

Installation

by Vessel

BOP's

Maintenance

SC9 & O.R.P.+ Moving

Revised SOW GE N.P.T. UC Extra time Actual

[day]

GDPP WEST HUB Annex 1 & Mungi North (Annex 2) SANGOS (P50) 10* wells CINGUVU (P50) 3 wells MPUNGI (P30) 9 wells MPUNGI NORTH (P50) 2 wells TOT 24 wells

Re-entry BO/N2 displ. Well Testing

n.18 XMT installed by Vessel

NPT +278.4 +17.2%

Tech. Perf.

-279.2 -17.2%

9

Time Analysis West Hub Project – Completed Wells handover to PROD

0

20

40

60

80

100

120

140

WEST HUB Time (Planned Vs Actual)

1st (Pre-drill+LC)+ 2nd Phase (UC)

Planned Actual (days)

Planned time Ave/well = 56.7 days Actual time Ave/well = 66.0 days

Actual time Ave/well (w/out SAN-301, CINGUVU2-ST1 and SAN-101ST) = 63.0 days

2016

10

Time Analysis West Hub Project – PRE-DRILL+LC Phase

0

10

20

30

40

50

60

70

80

90

100

WEST HUB Time

1st PHASE (Pre-drill+LC)

Planned Actual


11

Time Analysis West Hub Project – UC Phase

Note: cut-off Q2/2016

(*) well handovered to PROD (***) out of GDPP

AFE Planned time is NOT including: BOP maint. (30 days/y), Well re-entry (4 days/well), BO and N2 (for PROD) displacement

(2 days/well), Well testing (+1/2 days/well)

24.00 21.00

24.00 24.00

17.40

24.00 20.33 19.02

16.00

0

20

40

60

80

100

Days

WEST HUB Time (Planned vs Actual)

2nd Phase (UC)

Planned Actual Linear (Actual)


Actual time Ave/well (w/out SAN-301, CINGUVU2-ST1 and SAN-101ST) = 26.5 days

2016

12

WEST HUB UPPER COMPLETION SUMMARY OF THE OPTIMIZATION TIME SAVING

PERFORMED OPTIMIZATION WEST HUB EVENTS

TIME SAVING FOR WELL

TOTAL TIME SAVING DAYS

CEMENT PLUGS VS MECHANICAL PLUG

1 3.6 3.6

COMPLETION STRING PRESSURE TEST

14 1 14

ANNULUS NITROGEN DISPLACEMENT

2 0.75 1.5

CASING LANDING STRING CLEANING OPTIMIZATION

7 0.5* 3.5**

NEW TH LANDING PROCEDURES 12 1.6* 19.2***

INTERMEDIATE COMPLETION 6 2.4 14.4

INJECTION TEST IN THE WI AND WAG WELLS ELIMINATED

4 0.5 2.0

CROWN PLUGS PREINSTALLED IN THE TUBING HANGER

1 2.0 2.0

WEST HUB ESTIMATED OPTIMIZATED TIME 60.2

* Total NPT recored before the optimization/number of wells ** Total saving on the last 7 wells after cleaning optimization procedures *** Total saving on the last 12 wells after new TH landing procedures

13

OCEAN RIG POSEIDON (since June 2013): 27 Wells (EH+WH) SAIPEM SC-9 (since July 2013): 23 Wells (WH)

WH D&C NPT Rig Performance

Note: cut-off Q2/2016

3.8% 3.2%

0.7% 0.9%

0%

1%

2%

3%

4%

5%

6%

2013 2014 2015 2016

Ocean Rig Poseidon

Average N.P.T./Year

5.1%

4.0% 3.6%

1.2%

0%

1%

2%

3%

4%

5%

6%

2013 2014 2015 2016

Saipem Scarabeo-9

Average N.P.T./Year

Drilling & completion Performance Improvement

14

34.5

22

0

5

10

15

20

25

30

35

40

2015 2016

Days

Efficient lower completion strategy: no skin induced at reservoir face

Excellent well deliverability

No clean-up or acid job required on producers

No injection test for injectors

Optimization of upper completion installation

No string intermediate testing

15.0%

11.5%

8.2%

0.0%

5.0%

10.0%

15.0%

20.0%

2014 2015 2016

DRILLING NPT (WH + EH)

UPPER COMPLETION AVERAGE DAYS (WH)

WH D&C NPT Trend

15

+29 days SAN-301

+36 days CINGUVU-2ST1 +14.5 Days SAN-101 ST1

20.56% 17.05%

25.22%

7.22%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2013 2014 2015 2016YTD

NPT% WEST HUB (Pre-drill+LC+UC)

(24 wells) NPT%

NPT trend/ave =17.5%

+23 days MPUNGI-3ST1 +12 day MPU-501 ST1 +12 day SAN-401

KPI PERF 2015 – 2016 (update @ 1st Quarter)

Year 2015 Meters/day Eni

worldwide

Cost/Meter Eni

worldwide

Meters/day Eni Angola

Cost/Meter Eni Angola

USD

Onshore 54,51 1.927 - -

Offshore 32,01 7.037 - -

SSWH 52,32 14.387 71,56 15.326

16

Year 2016

Meters/day Eni

worldwide

Cost/Meter Eni

worldwide

Meters/day Eni Angola

Cost/Meter Eni Angola

USD

Onshore 67,90 1.534 - -

Offshore 38,29 4.416 - -

SSWH 72,17 11.412 84,44 13.554

+18% vs 2015

-11.5% vs 2015

71,56

84,44

15,326

13,554

17

eni Angola vs OBO NPTs Analysis 2015

20.0%

27.0% 28.1%

32.2%

37.9%

163.8

820.5

383.5

1419.6

256.0

910.3

352.1

1094.8

181.2

477.9

0

200

400

600

800

1,000

1,200

1,400

1,600

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

[d

ays]

[%

] N.P.T. 2015

eni Angola vs. OBO

NPT % NPT Days Operated Days

Note: including DEV and EXPL. Activities Data source Well View

18

eni Angola vs OBO NPTs Analysis 2016 (update @ 1st Quarter)

7.7%

13.0%

8.8%

15.9%

0.0% 14.1

182.0

34.3

264.9

10.8

122.5

42.7

268.8

0.0

40.1

0

50

100

150

200

250

300

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

[d

ays]

[%

]

N.P.T. Q1/2016

eni Angola vs. OBO

NPT % NPT Days Operated Days


19

Comparison performed for completed wells (D&C), similar well design/complexity Exxon is not performing TP&A (saving -7 days), not using swage profile (+ 7days)

UC with SLS and pre-installed CP in TH (saving -7 days)

(*) well handovered to PROD (***) out of GDPP

Eni Angola vs Exxon – D&C Performance

Note: Data source Well View

0.0

50.0

100.0

150.0

200.0

250.0

PLANNED vs ACTUAL TIME

EXXON vs Eni Angola - 2015 - Q2/2016

AFE ACTUAL TIME

Drilling & Completion Actual Time/well ave = 66,0 days

Actual Cost/well ave= 78,0 M$ NPT ave/well = 16.0%

Drilling & Completion Actual Time/well ave = 67,3 days

Actual Cost/well ave= 90,0 M$ NPT ave/well = 20.7%

Costs/well + 12,0M$/well

NPT + 4,7%

20

WEST HUB UPPER COMPLETION TIME OPTIMIZATION FOR EAST HUB PROJECT

OPTIMIZATION ON UPPER COMPLETION WELLS OPERATION TIME (DAYS)

P50

WEST HUB AVERAGE WELL DURATION* 22.0

WELL RE-ENTRY, RBP INSTEAD OF CEMENT PLUGS -1.5

SEMPLIFIED LANDING STRING -1.0

UPPER AND LOWER CROWN PLUGS PRE INSTALLED -1.0

WELL CLEAN UP AND INJECTION TEST PERFORMED BY FPSO -1.0

EAST HUB EXPECTED WELL DURATION 17.5

EAST HUB PROJECT SAVING/WELL -4.5

EAST HUB PROJECT TOTAL SAVING FOR 9 WELLS 40.5

• The West Hub project upper completion optimization procedures will be implemented for the East Hub project activities.

• The estimated upper completion operative time will be the following:

* Trend of wells during Q2-2016 (best case with full LL implemented)

NPTs Analysis 2015 – Q1 2016

22

35%

10%

5% 2%

49%

163.8 NPT days out of 820.5 Operating days

Downhole Equipment Failures Rig Failures

Surface Equipment Failures Waiting

Well Problems

Note: including DEV and EXPL. activities

38%

17% 6%

3%

36%


Downhole Equipment Failures Rig Failures

Surface Equipment Failures Waiting

Well Problems

Q1/2016 7.75 % 2015 19.96 %

Major event 2015: CSE-104 ST2 (+28 days): losses, attempt to pack-

off, unable to run 9 5/8”csg (RIH liner 11 ¾”)

CSE-202ST1 (+14 days) : HALCO Versaflex failure Cinguvu-2 ST1 (+34days) : failure during TH

landing and installation LCP & UCP

SAN-101ST1 (+17days) : 8 ½”x9 ½” cement plug drilling BHA stuck

Major event Q1-2016: MPU-601 (+1 day): Saipem personnel strike (+1.8 days) : Flapper leaking, losses CSE-202 ST1(+0.8 day) : troubleshooting milling

window (ST) (+0.7 day) : POOH drilling BHA, MWD

failure

23

OBO NPTs Analysis 2015


Downhole Equipment

Failures 17%

Rig Failures 14%

Surface Equipment

Failures 12%

Waiting 29%

Well Problems 28%

Chevron Block 0 2015 (27.01% NPT)

383.5 NPT days out of 1,420 Operating days

DownholeEquipmentFailuresRig Failures

SurfaceEquipmentFailuresWaiting

Well Problems

Downhole Equipment

Failures 22%

Rig Failures 22%

Surface Equipment

Failures 16%

Waiting 3%

Well Problems 38%

Chevron Block 14 2015 (28.12% NPT)




Well Problems

Downhole Equipment

Failures 23%

Rig Failures 23% Surface

Equipment Failures

7%

Waiting 1%

Well Problems 46%

Exxon Block 15 2015 (32.16% NPT)

352.1 NPT days out of 1,095 Operating days



WellProblems

Downhole Equipment

Failures 7%

Rig Failures 52%

Surface Equipment

Failures 2%

Waiting 0%

Well Problems 38%

Sonangol Block 3/05 2015 (37.92% NPT)

181.2 NPT days out of 478 Operating days



Well Problems

24

OBO NPTs Analysis 2016 (update @ 1st Quarter)


Downhole Equipment

Failures 38%

Rig Failures 13%

Surface Equipment

Failures 16%

Waiting 9%

Well Problems 24%

Chevron Block 0 Q1-2016 (12.96% NPT)


Downhole EquipmentFailures

Rig Failures

Surface EquipmentFailures

Waiting

Well ProblemsDownhole Equipment

Failures 53% Rig Failures

2%

Surface Equipment

Failures 38%

Waiting 5%

Well Problems

2%

Chevron Block 14 Q1-2016 (8.79% NPT)

11 NPT days out of 122.5 Operating days

DownholeEquipmentFailures

Rig Failures

SurfaceEquipmentFailures

Waiting

Downhole Equipment

Failures 20%

Rig Failures 9%

Surface Equipment

Failures 47%

Waiting 1%

Well Problems 23%

Exxon Block 15 Q1-2016 (15.88% NPT)


DownholeEquipment Failures

Rig Failures

Surface EquipmentFailures

Waiting

Well Problems

eni angola wh dc performance overview_end of project

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