Higher Level Development Issues

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Possible Issues for Development Project Strategy

Strategy Requirement Objective

Capture Total InfrastructureLow Cost/ Minimal CAPEX Minimize capital development costs Lowest CAPEX to produce economic reserves

Green Solution Environmentally Optimized Development

Earliest Oil Early oil to market solution.

Maximise Recovery

No New Technology Reduce technology and schedule risk

Lookalike for existing Exploration success similar to existing development

Key Development IssuesOptions

Full Field Development

Reservoir Pressure Mainte Gas Injection Natural Depletion

Number of Drill Sites Single MultipleDevelopment Options Dry Trees Wet Tress Combination

Flexibility to Process

Host Facility Option TLP/Spar/TPG3300 FPSO Semi

Liquid Export System New Build Pipeline

Gas Management OptionsGas to Liquids

Gas Pipeline System Loop existing line Standalone

Lease/Purchase Option Purchase Lease PHA Lease to Own Build to Sell

Appraisal Program

Resource Appraisal Focus None Confirm downside

Additional Drilling

Seismic ProgrammeAcquire new data None

Testing Flow Test Transient None

Early Production

EPS Concept Subsea Tieback FPS None

EPS Capability Fit for purpose Expendable N/A

FPS Solution for EPS Lease Purchase Lease to Own N/A

Major owner in regional infrastructure for full-field developments, existing COMPANY's and 3rd party production

Influence regional development and reduce COMPANYs $/bbl of total lifting on new and existing developments.

Minimize emissions, risk of pollution and environmental impact. Enhance corporate image to the public/industry.Earliest possible delivery of sustained production to market that enhances full-field development

Development provides maximum recovery of resources through the life of the field

Maximize reserves from the field(s) in full-field development while meeting hurdles

Full field development to take place using proven technology for that met-ocean environment

Optimize development assuming a full-field, stand-alone development

Water Injection

Combination of Gas & Water

Tightly design for capacity (fit for purpose)

Build for expansion (Equity)

Build for future growth (expansion capability)

Subsea Tie-Back to Host Facility

Tie Back to Infrastructure

Offshore Local

Through existing Host Facility

Store in alternate horizon

Export via Pipeline

Offshore Utilisation (Electric power)

Through existing host facility

Tie back to infrastructure

Non pipeline solution

Confirm Upside

combined multiple exploration prospects/appraisal of existing discovery

appraise existing discovery

re-process existing data

Fits any field

Company build-outsource/sell

Revised Key Aspects

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Concept ReviewKey Aspects for Consideration

Aspect Description Comments

HSE

Design SafetyDecommissioning

Long Term Integrity/IMR

Environmental Impact Construction, installation, decommissioning influences

Emissions/Spills

TechnicalRange of application

Maturity of Application

Overall Reliability

Commercial/PoliticalCompetitive Sourcing

ConstructionTransportation

Installation

CostPSA may dictate

Low sensitivity to change

ScheduleLow sensitivity to change Flattest rate of change of development schedule

Interface IssuesInterface complexity Minimisation of installation complexity and cost

Integration Issues

Key Risks

Layouts, explosion and fire resistance, escape and overall integrity

partly relates to technical maturity and overall

reliabilityThis may be a public affairs issue

Significance of concept in terms of risks of spills and consequences and inherent emmission levels

Flexibility/Robustness to Uncertainty

Suitability of concept for easy expansion/changeout of facilities with minimal cost impact

flexibility to well count, water depth, motion performance, topsides weight capacity, mooring system, wellstream

import/tiebacks and exportExperience of concept by COMPANY's or others - novel

technology contentFull life assessment including availability and operating

costs (especially sustaining capex)

more than one source of materials, fabrication and installation

Political/partner involvement

influence of partners and countries on sourcing and selection

Construction/Installation Construction/Installation

risk

Minimum Capex and Opex

Significance of the balance of Capex versus Opex in full life business case

Flattest rate of cost change with production rate, topsides, well numbers or water depth

Minimum time to First Production

Significance of concept in the development timescale - including rampup impact

needs to account for seasonal step changes

Minimised design sensitivity to interfaces

Regional/expansion issues

Flexibility of concept to additions/modifications to enable expansion or incorporation into wider development

Higher Level Development IssuesRevised Key Aspects