Gas Lift in Subsea Wells Suppliers – what are current activities? Supplier #1 Focus on high rate, high pressure, high value, high risk projects Involvement in Front End Engineering Design Heavily weighted toward risk management Solutions vary with Operating Philosophy Long R&D Process for non-standard equipment

Gas Lift in Subsea Wells Supplier #2 Dealing primarily with single point injection Working to improve reverse-flow valve performance Surface control is focused on hydraulic control because of reliability and track record with hydraulic sleeves, etc.

Gas Lift in Subsea Wells Current applications Single point venturi nozzle injection in subsea wells (also tree lift for kickoff) IPO unloading valves used only in dry tree locations Operators – current and near future needs 3000 psi+ and 3000 Meters water depth Some just beginning subsea applications Riser lift? None yet. Perhaps Total at Girassol.

Gas Lift in Subsea Wells Lift Method selection Heavily based in risk management Barriers to overcome ESP Run life must be > 2 years to be profitable Power availability (deck space and deck load limits) Power delivery through rotating turret on FPSO Gas Lift Additional Compression (deck space and deck load limits) Flow assurance concerns – hydrates Unloading valve pressure limits

Gas Lift in Subsea Wells Operating Concerns Small training requirements for operators due to single point lift Good technical support system is a must for optimisation Supplier support to operations Primarily service support for installation, commissioning and handover to operator.