Use of subsea Multiphase pumps as an alternative

to ESP workover in a mature field developmentKia Katoozi

May 2016 1

Agenda

• The Otter Field

• ESP History

• Otter production & Injection scenarios

• MPP Feasibility study – Objectives

• Production profiles

• MPP Technical feasibility summary

• ESP v MPP in Otter

• Commercial assessment

• Recommendation

May 2016 2

The Otter Field

• Block 210/15a

• 93 miles NE of Shetland in 180meter water depth

• 1st Oil in 2002

• Subsea tie-back to Eider platformvia 21 km pipeline

• 3 ESP lifted production wells

• 2 water injection wells

• Expected field life 4 years!

• 6,000 bopd @ 77% watercut

May 2016 3

The Otter Field – Production & Injection (Current status)

May 2016 4

ESPs

OTTER

Otter Sep.

Pressure: 26bar

0

1

2

3

4

5

P1 P2 P3Ru

n L

ife

(yrs

)

Work over 2

Expected life Primary Back up

0

1

2

3

4

5

P1 P2 P3Ru

n L

ife

(yrs

)Work over 1

Expected life Primary Back up

ESP History

May 2016 5

Primary: Lower ESP

Back-up: Upper ESP

Assumption for the failure date of the current systems:

P1: 01/01/2018 for both systems; primary and back-up.

P2: 01/09/2016 for both systems; primary and back-up. The primary ESP

already has 81 number of starts.

0

1

2

3

4

5

P1 P2 P3Ru

n L

ife

(yrs

)

Original

Expected life Primary Back up

Otter Production & Water Injection

(NFI)

May 2016 66

ESPs

01

/01

/201

8

01

/09

/201

6

01/06/2017 01/06/2018

OTTER

Otter Production & Water Injection

(Base case)

May 2016 7

ESPs

01

/01

/201

8

01

/09

/201

6

WINJ

REPAIR

WINJ

REPAIR

OTTER

WINJ

REPAIR

WINJ

REPAIR

Otter Production & Water Injection

(Base case + ESP)

May 2016 8

ESP

replacement

OTTER

WINJ

REPAIR

WINJ

REPAIR

Otter Production & Water Injection

(Base case + MPP)

May 2016 9

MPP

01/06/2018

OTTER

To demonstrate that multiphase subsea pumping is a feasible technology for

the Otter field to boost production from all 3 wells. The key areas of focus

have been:

- System deliverability and flow assurance

- Pump suitability and expected time to failure

- Electrical power supply

- Subsea installation

- Controls, instrumentation and barrier fluid

- Commercial feasibility

MPP Feasibility study – Objectives

10May 2016

Production Profiles

May 2016 11

P2 ESP failure

P1/P3 Natural flow

P1 ESP failure P1 Natural flow with WI

MPP installation

Assumptions

• ESP failures:

• P1: 01/01/2018

• P2: 01/09/2016

• Separator P: 26bar

• Shaft power: 750kW

• Suction P: ~5bar

• Pump dp: 45bar

• MPP Option: 01/06/2018

• ESP Option:

• P1 w/o: 01/07/2018

• P3 w/o: 01/07/2017

P3 ESP w/o

P1 ESP w/oP3 ESP failure

Modelling shows that MPP can deliver at least 50% more than 2 x ESP workover, based on 5 barg suction, 45 bar head, 750kW power, 26 barg arrival pressure.

There is a type of helico-axial pump available that can perform the required service and has a MTTF of 5-6 years. (anticipated life is 3.5 years)

It is expected that a single VSD (Variable Speed Drive) could deliver 920 kW to a subsea booster pump. Modelling performed during feasibility is based on 750 kW. Pump power to be optimised in next phase of the project- consider risk/reward of pairing VSDs.

Pump can be integrated into existing facilities well and installation is relatively straightforward.

MPP Technical feasibility summary

12May 2016

ESP v MPP in Otter (Pros & Cons)

May 2016 13

ESP

Pros

- Proven technology

- Pumping from deeper depth (system can

be operated with a lower reservoir

pressure)

- There is a redundancy if a pump fails

Cons

- Workover is expensive and time

consuming

- Time to repair is long (rig requirement,

weather dependant)

MPP

Pros

- MPP boost the full field production

- MTTF 5 to 6 years and Repair cost is low

- Time to repair is short (vessel requirement, less weather dependant)

Cons

- Initial installation cost is high

- Need to flush & connect into flowline for installation

- Requires positive wellhead pressure

- Single point failure for the field

Power, cable, umbilical and barrier fluid are already in place for either system

Commercial Assessment

14May 2016

Decision to install

MPP generates

greater NPV, but

requires additional

risked CAPEX

WellESP Failure

Dates

ESP

repairs

MPP

InstallationNPV

PV

CAPEX

Branch

ProbablityEMV

`

OUP1 01/01/2018 No

OUP2 01/09/2016 No 01/07/2018 34.4 50.9 100% 34.4

OUP3 01/09/2013 No

OUP1 01/01/2017 01/07/2017

OUP2 01/09/2016 No No 10.3 49.0 20%

OUP3 01/09/2013 01/09/2017

OUP1 01/01/2018 01/07/2018

OUP2 01/09/2016 No No 21.6 48.1 35%

OUP3 01/09/2013 01/07/2017

OUP1 01/01/2019 01/07/2019

OUP2 01/09/2016 No No 27.2 46.8 20% 27.0

OUP3 01/09/2013 01/07/2017

OUP1 01/01/2019 01/09/2019

OUP2 01/09/2018 No No 41.9 44.0 20%

OUP3 01/09/2013 01/07/2019

OUP1 Never No

OUP2 Never No No 70.7 5.4 5%

OUP3 01/09/2013 01/07/2017

Production ProfilesB

ase

Cas

eB

ase

Fai

lure

Dat

es

Inst

all M

PP

Dec

isio

n

Earl

ier

fail

ure

of

P1

Co

nti

nu

e w

ith

ESP

Dec

isio

n

P1

late

r fa

ilu

re

dat

e

P1

& P

2 la

ter

fail

ure

dat

es

No

Fai

lure

of

ESP

s

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ten

tial

oil

rate

Scenario 1a

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Scenario 1b

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Scenario 2

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Scenario 3

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Scenario 5

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Scenario 6

Multiphase pump technology for Otter is feasible and allows Otter to

continue to produce beyond the failure of the existing ESPs.

Water injection availability is a pre-requisite to longer term production and /

or development of Otter / Eider.

MPP installation takes the uncertainty away and present reasonable NPV.

ESP work over may generate higher NPV but presents high level of

uncertainty. Need to have capability to react to ESP failures.

Recommendation

15May 2016