Offshore Oil and Gas Facilities

Offshore and subsea projects are complex. Risk can occur at anytime, anywhere – from politics to public relations to procurement and construction. External market factors can cause capital expenditures and operating costs to escalate without warning. These threats raise questions:
• Is the project timeline realistic and feasible to predict revenue streams?
• How will you confidently balance logistics, safety and sustainability?
• Which issues are likely to become challenges to project success? Many companies recognize the issues that create risk. Few anticipate and avert them. KBR has over 70 years experience designing, building and managing a broad array of technically complex offshore projects around the world. This means that our clients can come to one place for the services they require to make their offshore project a success. From wellhead to downstream facilities, KBR provides expertise for subsea and pipelines, FPSOs, fixed platforms, topsides and semisubmersibles.

Overcoming an Array of Challenges in Deepwater As drillers announce some of the biggest discoveries in recent years in depths approaching 10,000 feet, KBR is creating solutions that overcome the logistical, technological and environmental challenges of ultra-deepwater and remote frontier regions. To support these discoveries, our engineers and project managers have access to high-performance software and information technology services, an extensive library of data and lessons learned from previous projects. Solving your deepwater challenges takes an expert with global experience in deepwater facilities selection, floating systems, risers and pipelines and subsea systems.

FEASIBILITY CONCEPTUAL DESIGN FRONT END ENGINEERING AND DESIGN

Early involvement allows us to identify potential cost savings during the concept “select” phase Refining conceptual solutions during the definition stage helps ensure maximum value PROGRAM/ PROJECT MANAGEMENT Engineering, procurement and construction management, together with risk assessment and project management DETAILED DESIGN Fit-for-purpose designs, with full optimization including materials engineering and procurement support PROCUREMENT, LOGISTICS AND SUPPORT ENGINEERING Cost effective solutions that optimize both CAPEX and OPEX and deliver projects to schedule CONSTRUCTION MANAGEMENT Develop and manage construction execution programs to ensure the lowest project costs with the least risk Our services include project management (PM), engineering, procurement and construction management (EPCm) plus segmented services, such as front end engineering and design (FEED), detailed EPCm and overall technology systems integration.

Designing more than 35 percent of the world’s offshore production capacity, KBR’s experience and expertise comprise upstream projects ranging from fixed structures and floating production facilities to subsea developments, semisubmersibles, umbilicals, risers, pipelines and flowlines. Offshore Oil and Gas Facilities Managing Projects Globally Deploying tools, systems and procedures globally combined with our advanced project management software allows for borderless work sharing and increases the success of your project. Ensuring that standards and project requirements are aligned with your vision, our experts communicate and monitor progress using business execution tools such as IPMS, project portals, 3D conceptual engineering, project dashboards, geographic information systems and object engineering.

Extensive experience implementing innovative design and execution tools prompted BP to enlist KBR to design the Greater Plutonio development of Block 18 located in deepwater offshore Angola. Maintaining Cost and Schedule Risking a massive offshore project by contracting with an inexperienced EPC company could cost your reputation. The fact is that the criteria affecting your ability to achieve monthly objectives depends on getting systems and a strong EPC team aligned with your vision and focused on your goals. Assembling the right team to meet your production targets and local requirements is an area where KBR excels. Proactively trending construction materials and equipment occurs early in our projects and continues during design through procurement, shipping and installation with our proprietary Integrated Project Management System (IPMS). That’s the reason Shell EA turned to KBR for engineering, procurement, integration and construction (EPIC) when needing to ensure their new-build FPSO in Nigeria stayed on track.

The project team delivered the FPSO topsides and mooring system one month ahead of schedule, including receipt of first oil. As the search for hydrocarbons heads into depths approaching 10,000 feet, KBR develops solutions from concept to project delivery that help integrated and national oil companies drive down development costs and reduce cycle times. The Malampaya topside facility was installed ahead of schedule with an installation weight of 11,500 tonnes, making it, at time of installation, the largest integrated deck in Asia Pacific and the largest in the world using the float over method. This method, pioneered by KBR, allows a complete integrated deck to be installed as one unit thereby maximizing the fabrication and testing work that can be completed onshore.

Averting risk during concept, feasibility, front-end engineering and design (FEED), detailed design, construction and commissioning is an area in which we are well equipped. One area critical to the successful execution of offshore platforms, especially compliant and floating facilities in deep water, is accurate weight management and control. Miscalculations made in the design process can result in costly changes during fabrication and installation. To ensure calculations remained on target, Cabinda Gulf Oil Offshore Oil and Gas Facilities Managing Execution Risks Company turned to KBR for their TombuaLandana project. To manage the weight on this project’s sensitive compliant piled tower (CPT) facility located offshore Angola, while preventing pricey rework, KBR engineers used an extensive in-house historical weight database to benchmark the design.

They then worked jointly with the client to implement value-improving practices that included fine-tuning the numbers and sizes of major equipment items and the corresponding deck area needed to satisfy the specific project requirements. Making Safety First Creating an organizational climate that practices safe behavior, rewards safety performance, records lost time incidents (LTI) and minimizes environmental and social impact is a differentiator when choosing an EPC contractor. Each year our commitment to health, safety and the environment is evident as we implement proven standards and processes, hold ISO 9001, ISO 14001 and OHSAS 18001 certifications, and continue our worldclass record of training. Achieving project success means continuously improving safety records and removing health and environmental hazards that could stall production.

Having one of the best safety records in the industry, and a solid reputation of managing resources well explains why Shell Malampaya chose KBR for the FEED and EPIC of their concrete gravity structure and topsides located in the Philippines. Using the floatover method pioneered by KBR, one of the many achievements on this project included seven million hours worked without a lost time incident. An integral part our success at KBR can be attributed to our continual commitment to safety, evident in achieving one of the best safety records in the industry. The BP Atlantis semisubmersible platform in the deepwater Gulf of Mexico is one of the deepest moored floating oil and gas production facilities in the world. 8 Offshore Oil and Gas Facilities Proposals Built on Proven Expertise Loss of production from just one missed project milestone easily outweighs the perceived savings promised by a low-bid contractor.

Bids from KBR are competitive, so when you evaluate and weigh our quality personnel, expertise, training, logistics, execution and exceptionally high safety record, there is really no comparison. With KBR, there are no surprises. This is why Offshore Energy Association rated our detailed engineering and design of Benguela-Belize Block 14 Topsides as the “Project of the Year” after receiving a 4.7 client rating out of 5.0. GVA – Turnkey Support for Marine and Offshore Design With experience from over 100 projects in more than 20 countries, GVA is a worldleading marine and offshore design company for semi-submersibles and other floating units. GVA is a subsidiary of KBR, but operates as a fully independent company, providing customers with highly skilled and specialized design services.

With more than 100 engineers deployed within conceptual design, naval architecture, structural design, marine and drilling systems, we provide high-value design solutions to each and every project. GVA products and services allow us to support our customers with turnkey support from the earliest stages, throughout the project’s duration and during operation or even later when upgrade or conversion work is required. We are accustomed to following our designs through all phases and have considerable experience in major vessel conversion projects where semi-submersibles or FPSOs have been successfully delivered. Our reputation has been built upon our ability to provide cost-efficient, state-of-the-art, safe and environmentally sound design solutions.

Balancing logistics, reducing emissions and focusing on sustainability is how we operate on a daily basis High Value Services with Granherne Consulting Besides providing EPCm services, KBR offers consulting services to the oil and gas industry through its Granherne business unit. Operating as a fully independent company with offices in the UK, Perth, Houston and Moscow, Granherne provides high-value consulting solutions in development planning, project assurance and asset optimization. With experience on over 3,000 projects in more than 20 countries, Granherne is the foremost frontend engineering consultancy for onshore, offshore and deepwater oil and gas development. KBR’s consulting subsidiary, Granherne is a leading front-end engineering consultancy for onshore, offshore and deepwater oil and gas developments. Granherne has provided services for more than 100 subsea developments, including step out expansions, marginal fields and major subsea projects.

Agbami’s topsides generate 70 megawatts, weigh over 34,000 metric tons and the design was executed and completed under budget and on schedule. 10 Offshore Oil and Gas Facilities Besides earning an impressive list of “firsts” in design and installation of fixed offshore platforms, KBR has experience with many of the largest FPSOs in the world Largest FPSO in the World: Agbami Confidence in engineering and execution abilities led Star Deep Water Petroleum Limited, a Chevron affiliate, to enlist KBR when needing topsides for the world’s largest FPSO, Agbami, located offshore Nigeria. The Agbami field ranks among the largest single finds in deepwater West Africa and is one of the world’s ten largest discoveries of the past decade. Using Stage Methodology and other tools to manage the project, KBR engineers designed 13 topside modules containing the FPSO’s main process and utility systems.

The project team designed Agbami to deliver 250,000 barrels of oil per day (bopd), 450 million square cubic feet of gas (scfg) and 450,000 barrels of water per day (bowd). With a storage capacity of roughly 2.2 million barrels of oil, the operator moored the vessel in a water depth of about 4,800 feet offshore Nigeria. Deepwater Project Execution: Greater Plutonio Located in deepwater offshore Angola, the Greater Plutonio development at Block 18 is another FPSO that BP chose KBR to execute. Initially, the project team performed the FEED for all technical aspects of the offshore development including subsea production systems, umbilicals, risers and flowlines and hull and topside. Next, the team delivered the detailed design and procurement of the topside facilities.

The Greater Plutonio FPSO acts as a production hub for 24 subsea wells located over the field and carries over 24,000tonnes of topside facilities which process over 220,000barrels/day of oil and operates in water depths of over 1000m. Many expect the FPSO to bring considerable long-term oil tax revenues to Angola as well as significant employment opportunities to local technicians and engineers. BP announced the beginning of production of Greater Plutonio on October 1, 2007. Implementing innovative design execution tools such as object engineering, stage build approach and PDMS, enabled KBR to support rigorous project management and engineering schedules.

 Designing, building and managing every type of onshore oil and gas development project in any environment has enabled KBR to deliver complex logistics and resolve risks that impede revenue streams.  Offshore Oil and Gas Facilities Managing Environmentally Sensitive Projects: Kashagan When Agip KCO needed a major EPC company to provide project management services for the first (experimental) phase and conceptual design for phases 2 and 3, they turned to KBR. The project is in very shallow and environmentally sensitive water that is icebound in winter. Project activities needed to develop this very sour gas field require over 20 major contractors working in various locations around the globe.

Global information management systems have been developed and deployed to provide consistency in standards, plans, processes and procedures. Throughout the project, KBR teams verify that contractors comply with project procedures and requirements. Achieving a String of Firsts with Terra Nova When Petro-Canada needed EPC and expert logistics to build an ice-strengthened FPSO in offshore Canada they turned to KBR. Terra Nova was the most extensive project scope undertaken by a single alliance in the industry at the time. The project team was responsible for project management and design of the topsides uses a subsea system tieback to an FPSO. Terra Nova operates in approximately 100 meters of water in Grand Banks of Newfoundland in one of the harshest environments in the world.

The project achieved a string of achievements including the first FPSO to operate on the Grand Banks; ice-strengthened to withstand a 100,000 ton iceberg and a large diameter quick connect/ disconnect turret and riser system. As one the largest discoveries in the past 30 years, analysts expect the Kashagan development to produce more than 30 billion barrels of oil over its lifespan. Managing Execution Risks with Tombua Landana ChevronTexaco and Cabinda Gulf Oil Company enlisted KBR when needing FEED, engineering and project management for their topsides production facility located in Angola, West Africa. The project scope challenged KBR engineers to design a compliant piled tower (CPT) substructure and risers for the pipeline and subsea drilling center flowlines, situated in 1200 feet of water.

Because of benchmarking and diligent weight monitoring, KBR engineers kept the total topsides operating weight within +/- 5% of the FEED weight throughout the design process. This resulted in a final weight and center of gravity within the targets established by the project, satisfying the sensitive design constraints for the CPT. 13 By providing a full complement of engineering, procurement, construction and commissioning/start-up (EPC-CS) services, we continue to develop innovative technologies and project execution methods, enabling us to deliver facilities in some of the most challenging environments on earth. 14 Offshore Oil and Gas Facilities Largest Float-Over Installation in South East Asia Thailand’s PTT Exploration & Production PLC (PTTEP) relied on KBR’s experienced team members when they needed the FEED, bid package preparation, engineering and project management for Arthit A and B in Thailand. Out of a team of nearly 150 personnel who worked on these projects in engineering and procurement services, nearly 95 percent had an average of 15 years experience in offshore facility design.

Lead designers and engineers as well as the project director and engineers had an average of 20 years of offshore design experience. Facilities in Arthit A include a central processing platform (CPP), LQ platform, flare platform, bridges and pipelines. The facilities can process 363 million scfd of gas, 22,950 bopd of condensate and 26,400 bopd of produced water. Arthit B consists of six wellhead platforms (5 remote). Throughput is 120 million scfd of gas, 5,000 bopd of condensate and 4,800 bopd of produced water. Logistically Complex and Massive: ACG Few offshore projects match the scale and complexity of the Azeri-Chirag-Gunashli (ACG) fields in the Azerbaijan sector of the Caspian Sea. The program, led by BP in the AIOC operating consortium, started in 1997, targeting estimated recoverable reserves of 5.8 billion barrels of oil, and is being executed in three overlapping phases.

At peak the three fields will deliver one million barrels of oil per day through the new $3.4 billion, 1768km-long Baku-Tbilisi-Ceyhan export pipeline to world markets. To manage the complex schedule of the massive phased development project, KBR evolved a tightly coordinated “production line” approach for the six platforms. By coordinating the design, fabrication and installation schedules and interfaces and incorporating lessons learned, we achieved significant reduced cycle time and delivered predictable outcomes of CAPEX, schedule and ongoing operability. KBR is an industry leader in the development of floating production solutions for all environments including West Africa, Australia and Asia. 15 KBR is recognized for building reliable, cost-effective, technically superior liquefied natural gas (LNG) facilities in challenging locations.

We have built or are currently building LNG liquefaction projects in eight countries, often in areas where it has been necessary to create infrastructure and train the local workforce. 16 Reducing cost and shortening the supply chain from well to liquefaction facility is a common concern. Floating LNG is often a solution when gas is so far offshore that the economics of piping it onshore become prohibitive. KBR has actively participated in over 20 key studies dealing with floating liquefaction and regasification designs. These studies include GURF (Gas Utilization Research Forum), Statoil (Hammerfest LNG Plant) and Project Azure, the “Full Floating LNG Chain. ” Unlike other EPC companies, we have extensive engineering, procurement and construction management (EPCm) experience in FPSOs spanning decades Offshore Oil and Gas Facilities Floating LNG including Terra Nova, Agbami, Plutonio and others.

In addition, we have been a member of the Azure consortium, a program funded by the European Union to advance the development of floating LNG supply chains. Reducing risk in offshore LNG concepts is an area in which KBR has a great deal of expertise. Whether designing and installing fixed offshore platforms, FPSOs or semisubmersibles, KBR has a wide range of versatility. As a result, KBR has a large upstream portfolio including numerous gravity-based structures such as Malampaya, Hibernia, South Arne, Wandoo and Ravenspurn among others. KBR’s experience in offshore and LNG make us better positioned to integrate LNG with the design and construction of FPSOs. 17 The Benguela Belize tower is approximately 1,680 feet (512 meters) in height, and it is one of the tallest structures in the world. 18 Benguela Belize is part of the BBLT Development, located approximately 50 miles (80 kilometers) offshore in approximately 1,300 feet (396 meters) of water.

It combines an integrated drilling and production platform hub facility supported by a compliant piled tower and is the first application of this structural technology outside the U.S. Gulf of Mexico. The detail design was completed in 12 months, with the first handovers to the fabrication contractor occurring 8 months after contract award. Daewoo Shipbuilding and Marine Engineering (DSME) and KBR used KBR’s stage methodology to successfully execute the handover. Weight and center of gravity control were key factors in maintaining schedule and controlling costs.

The Offshore Oil and Gas Facilities Maintaining Schedule and Controlling Costs: Benguela Belize relatively small cross section of the tower tends to make the tower weight and the foundation design more sensitive to weight increases and center of gravity shifts than conventional jacket structures. The project design team was able to improve the center of gravity position significantly and control the design weight so that the platform could be fabricated and installed on schedule. Compliant piled towers can be installed at costs appreciably less than conventional structures due to reduced steel requirements and are compliant (flexible) to the changing wind, wave and current conditions around the facility. The Benguela Belize tower is approximately 1,680 feet (512 meters) in height, and it is one of the tallest structures in the world. Generate Revenue Stream. Manage Logistics. Deliver Sustainability. Maintain Schedule.

Experience delivering revenue streams quickly following construction of complex facilities in harsh, remote environments is a benefit that KBR brings to every project. Mitigating risk on your multi-billion dollar offshore project is how we help customers around the world derive the greatest value from their assets. Ingenuity in designs, flexibility in approach and confidence in execution are three reasons so many companies turn to the industry expert for safe, environmentally friendly EPC: KBR. KBR met an aggressive, demanding agenda for the Shell EA project, with a schedule of 20 months from start of topsides fabrication to sailaway of an integrated FPSO topsides and hull. This was the first offshore oil and gas facility commissioned by SPDC.

To learn more, visit: offshore.kbr.com or email [email protected] 19 www.kbr.com www.kbr.com ©2008 KBR, Inc. ©2008 KBR, Inc. All Rights Reserved All Rights Reserved Printed in U.S.A. . 070274 2/08 K08086 4/08 Rev. 07/09 www.kbr.com