SubseaLight Well Intervention

Light Well Intervention

World wide there are more than 6000 SS wells, and the number is growing.The recovery rate from SS wells is most often less than 40 % vs 50 – 60 % on dry wells. Increased Oils Recovery from SS wells by use of Light Well Intervention Vessels is extremely cost effective vs Semi Submersible Rigs.

Strong growth in subsea wells drives demand for subsea services from advanced and versatile offshore vessels

Development in global subsea wells Global subsea wells by customer (2014-2017)

700

0

650

600

550

500

450

400

350

300

250

200

150

100

50

2016e

638

2015e

618

2017e

519

2013e

583

2012

416

2011

311

2010

374

2009

318

679

2008

432

2007

452

2006

462

2014e

550

500

450

300

350

0

100

400

200

150

50

250

ENI

64

Anadarko

Chevron

124

Total

134

Shell

58

156

BP

139

Petrobras

530

90

Premier Oil

Exxon

Mobil

58

Statoil

206

Exploration Drilling

Top hole drilling

Installation & Construction

Subsea & IMR

Production

IOR and IMR

De-commissioningPlug & Abandonment

Source: Quest Offshore Resources Inc. (November 2013)

Ageing Subsea fields need well intervention and maintenance

NWECS1: 11.8 years

North America: 8.9 years

Brazil: 11.2 years

West Africa: 6.1 years

South East Asia: 11.2 years

Source: Infield, 2014; Infield, 20131) Northwest Europe Continental Shelf

Average age of producing subsea wells Subsea wells producing for more than 5 years

4,500

500

0

1,500

1,000

2,500

2,000

3,000

3,500

4,000

5,000

2016e

2015e

2014e

2013e

+9%

2012

Exploration Drilling

Top hole drilling

Installation & Construction

Subsea & IMR

Production

IOR and IMR

De-commissioningPlug & Abandonment

Background

• FMC`s Subsea Lubricator used on Regalia in 2003. 3 successful interventions

• Island Frontier delivered in 2004

• Alliance between Island Offshore, FMC and Aker established in 2004

• 2005 Performed Well Intervention on

Chevron Stathspey project Awarded the long term contact with

Statoil (6+3 years) Intervention on two Nexen UK Wells

• 2006 awarded the BP contract 3 + 2 years for West of Shetland primarily, commencing May 2009

The VesselsIsland Frontier Island Wellserver

Island Constructor Island Performer

Wireline Services

Most common RLWI services

• Well integrity

• Caliper logging of wells

• Data collection (oil, water, gas)

• Mechanical repairs (e.g. DHSV replacement)

• Water shut off (plug setting)

• Zonal isolation (plug or straddle)

• Perforation - Re-perforation

Wireline Services

Most common RLWI services

• Mechanical scale removal (milling)

• Mechanical hydrate removal (milling)

• X-mas tree interventions

• Tubing cutting –explosive or mechanical cutting

• Sand or debris removal

• Honing and refurbishing of seal areas

• Manipulation of sleeves and side pocket mandrels

Challenging work

Vigdis C-5 Well

Installation of Straddle to Isolate a non producingzone

•280 m water depth

•Straddle length 53 m

•Well bore length 3850 m

•Depth at end of well 2250 m

•Horizontal climb 117 deg.

•Duration of job 45 days

Track Record

• More than 270 Light Well Interventions since 2005

• More than 95 % of the jobs were successful

• Jobs lasting 10 – 45 days

• Increased revenues for clients – billions

Main focus from Authorities (PSA & NMD)

To maintain barriers in every form

•Pressure control

•Technical barriers

•Human barriers

•System barriers

Security

•Integrity

Division of Responsibility

• Client takes over responsibility when the tool-string enters the well

• IO resumes responsibility when the tool-string leaves the well

• Client is responsible for all cost related to damage to the well

• Client is responsible for all cost related to blow-outs or similar accidents

• All except for gross misconduct

People

The LWI-segment employs more than 400 people in Island Offshore

•All recruited internally

•Operating as vessels

•Focus on cross-training and multi-skilling

•Retention rate 95 %

•High level of competence

•First class safety records

•Shore staff with engineering support

The future

Thank You for your attention!