Remote Hottap on sgard First Remote Retrofit Hottap

Remote Hot-tap on Åsgard - First Remote Retrofit Hot-tap operation Kjell Edvard Apeland Project Leader Pipeline Tie-in & Repair Statoil ASA kjedap@statoil. com www. statoil. com 1

Hot tapping – principle methodology . O r e b m u l p ay y b orw 9 90 n, N 1 in me t. . . n m e ra ? t a W p of D E N d e rg S r ’ e T t e s A b i e H g t e et W r t – N s H r i F SO Source: www. furmanite. com

Subsea Hot-tap - Typical permanent works 3

Statoil’s focused technology efforts Leading in seismic imaging and interpretation – to increase discovery and recovery Step change in well-construction efficiency – to drill more costefficient wells Pushing reservoir characterisation and recovery to the next level – to maximise value Taking subsea longer, deeper and colder – to accelerate and increase production 4

Statoil Strategy - Remote hot tap technology Statoil PRS Pool - Haugesund - Norway • • • Emergency preparedness Pool for subsea pipelines Founded in 1987 First Diver assisted Hot -tap in 1997 First Pre-installed Hottap tees installed with Statoil operated pipelines mid 1990’s Initiated Remote Hottap development in 1999 • Phase 1: Remote cutting system • Phase 2: Retrofit Tee technology 5

Statoil Strategy - Remote hot tap technology Objective: • Remote operation / deep water application / high safety standard Why important to develop subsea hot tap technology? • Provide full flexibility/independence when selecting tie-in location - cost effectiveness - utilize spare transport capacity in pipeline systems • Ensure distinct technology development in due time to capture business opportunities Goals: • • Increased safety Reduced cost for future infrastructure development Increased depth and pressure capability Offshore training of PRS personnel – improved emergency preparedness for pipeline repair

Statoil Strategy - Remote hot tap technology Creating business opportunities Gas infrastructure Re-inforcement Åsgard SCP 2016 2012 Ormen Lange x 2 2009 Tampen Link 860 m 2008 Gullfaks Jotun 2000 1997 Diver assisted hot tap 145 m Remote hot tapping 265 m Retrofit Tee hot tap

Qualification Program Outline & Timescale Development milestones 1999: Strategic development project initiated at Statoil PRS 2008: Deep water testing to 145 m water depth, first and successful offshore operation, 145 m water depth at Tampen Link, Statfjord 2009: Deep water testing to 940 m water depth in Sognefjorden, World’s deepest remote hot taps (2 off) at 860 m water depth at Ormen Lange field 2011: Deep water testing of Remote Tee Welding Tool to 350 m water depth 2012: Deep water testing and First offshore use of the Retrofit Tee Technology at 255 m water depth: – Åsgard Subsea Compression

Remote Welded Retrofit Tee concept • Remote installation of a structural reinforcement clamp containing the branch pipe • Pressure barrier made by internal weld inside the branch pipe • Welding system contains all functions for making and monitoring the internal weld

Remote Welded Retrofit Tee concept Retrofit Tee Weld Development & Test Program q In total 9 years of hyperbaric welding qualification q 2, 5 years Åsgard application targeted qualification q 6 pass GMAW /MIG fillet weld q 22 minutes of arc-on time required to perform the offshore welding 10 Mock-up for hyperbaric testing in chamber API 5 L X 65 insert pipe with 5 mm Inconel 625 cladding Inconel – Alloy 59 welding consumeable API 5 L X 65 mother Cooling pipes

Remote Welded Retrofit Tee Installation Equipment • Retrofit Tee Installation Tool • Pipe Handling Frame as carrier for the Tee installation module • Tool weight ~35 Te • Tee weight for Åsgard ~4 Te • Maximum Tee Weight 30 Te • Depth rating: 1000 m • Upgradeable to at least: 2000 m 11

Remote Welded Retrofit Tee Installation Equipment • Remote Tee Welding Tool • Branch size: 12 inch • Tool weight: 17 Te • Launching system including Active heave compensation and AHC/CT guide wire winches • Integrated umbilical for lifting, power, gas and control • Depth rating: 1000 m • Upgradeable to at least: 2000 m 12

Deep Water Trials Sognefjorden 2011 • Remote Tee Welding Tool tested to 350 m water depth March 2011 • Test umbilical used • Software and quality monitoring not completed • Produced 2 complete 6 pass welds with excellent results! 13

Deep Water Trials Nedstrandsfjorden 2012 • Performed landing towards test/mock-up pipeline on sea-bed (270 msw) • Software and quality monitoring finalised and successfully used • Problems related to jammed rotation occured during weld number 3 – recoverd, repaired and successfully completed the subsea welding • Produced 4 complete 6 pass welds with excellent results! Launching RTWT in Nedstrandsfjorden The activated and welded Tee recovered to the vessel deck 14

Offshore Installation Åsgard Field. SCP 2012 hot tap campaign 2012 • • • Involved vessel: Skandi Arctic • The newly qualified equipment performed 100% • Vessel including tools and organisation performed 100% • All offshore works successfully completed a few hours ahead of schedule Mobilised 10. of August 2012 Demobilised 11. of Sept 2012

Offshore Installation video Video clip from offsh 16

Conclusions • The new Remote Welded Retrofit Hot-tap Tee technology has been successfully qualified and field proven • Remote Hot-tap technology provides the most flexible tie-in solution avoiding shut down of transport systems • Large cost savings can be expected by the implementation of this technology, essential for marginal fields • Enabling sales to new markets by use of existing infrastructure (subsea and onshore facilities) • Hot-tap enables re-use or shared use of existing risers, useful where all riser slots/J-tubes are occupied Future potential

Conclusions Hot tap connections – the most flexible development methodology in the future • Optimised pipeline routing • Avoiding shut-down of critical transport system • Improved operational characteristics • Enabling new field developments and increased IOR

Acknowledgements The authors acknowledge the invaluable contribution of all the Åsgard Subsea Compression project team and the Åsgard Lisence partners: Statoil acknowledge the vital contributions from the main contractors for the successful Remote Hot-tap testing and operation:

Åsgard Subsea Compression Hot-tap Kjell Edvard Apeland kjedap@statoil. com Tel: +4790603869 www. statoil. com 20 2013 -03 -05