Deepwater Development - An Industry Perspective Juju Mathew 23rd & 24th May, 2013 India Drilling & Exploration Conference (IDEC) 2013, Mumbai, India

Context Setting Building Blocks System Integration Where do we stand Agenda Context Setting Building Blocks System Integration Where do we stand

Key Features of Subsea Development Context Setting Key Features of Subsea Development Technology Centric. Long Gestation period Reliability / Availability Robustness in Design Operability Host Facility

Context Setting (Contd…) Technology Centric Specialist Vendors / Manufacturers Large investments in R&D / Product Development. Narrow / Limited portfolio spread Changing Standards Gestation Periods Product Development Rigorous Testing Process Compatibility Reliability / Provenness.

Context Setting (Contd…) Lessons Learnt……. BP Macondo Well, 20 April 2010, 11 dead Usumacinta jack-up fire, 23 October 2007, 21 dead Piper Alpha accident, 06 July 1988, 167 dead “Good judgment comes from experience, and a lot of that comes from bad judgment.” Will Rogers

Context Setting (Contd…) Reliability / Availability Proven Application Maintenance free Compatibility Design Life Robustness in Design Reservoir Characteristics Flexibility / Future Technology Adaptation Safety Features – Fail Safe The Unknown

Context Setting (Contd…) Operability Remote operation Response time Tooling Subsea Intervention Host Facility Offshore – FPSO / TLP / SPAR Onshore Terminal Long Step out Subsea System Requirements

Context Setting Building Blocks System Integration Where do we stand Agenda Context Setting Building Blocks System Integration Where do we stand

Building Blocks SPS Subsea X’mas Tree Subsea Control Modules HIPPS Hardware – TUTU/UTA/DCS Umbilical / EFL / HFL Topside Controls SURF Installation centric Umbilical Riser Flowlines – Rigid / Flexible Jumpers – Rigid / Flexible PLET Manifolds / PLEM Riser Bases Tie-in Tooling Protection Structures

Context Setting Building Blocks System Integration Where do we stand Agenda Context Setting Building Blocks System Integration Where do we stand

System Integration Factors Who will perform Contracting Methodology Cross Liabilities & Limitations Interface Management Indigenization Local Infrastructure Response System

Context Setting Building Blocks System Integration Where do we stand Agenda Context Setting Building Blocks System Integration Where do we stand

Total sedimentary Area 3,140,000 sq km Where Do We Stand Onland 1.39 M.Sq.Km Deepwater 1.35 M.Sq.Km Shallow Offshore 0.40 M.Sq.Km Total sedimentary Area 3,140,000 sq km

Where Do We Stand (Contd…) Brazil

Where Do We Stand (Contd…) Norway The government worked deliberately to Norwegianize the oil sector US and French domination in the first decade Labour relations were built on strong trade union influence Worked in favour of domestic firms relative to foreign firms But did not jeopardize economic efficiency Ownership no issue Environmental friendly – take care of the resources The Ministry monitored the tendering process and bid evaluations Norwegian based firm got early access to all tendering information Source : INTSOK Report 2011

Where Do We Stand (Contd…) What Needs to be Done Formal policy, backed by Govt., with realistic targets & schedule Regulatory body like OSO/OSS/ANP for monitoring & compliance Competent & qualified local vendors to facilitate JV’s /cooperation Plan to educate & train personnel, support business development Promotion of technology development of local industry Strategy to identify the most likely areas for domestic capability Adopt structured systems for Quality and Safety Source : Goldwyn International Strategies, Columbia University

Q & A Thank you