1. An Operator’s View on Deepwater Floating Systems and Technology Development
Ming-Yao Lee Manager of Offshore & Marine Engineering Chevron Energy Technology Company
SMART 100
Symposium on MArine Resource & Technology
Taipei, Taiwan
October 16, 2011
Notes go here.
2011 Chevron U.S.A., Inc.  All rights reserved.

2. Presentation Outline Why Deep Water?
Overview of Floating System Concepts
Concept Selection Process and Criteria
Deepwater Design Challenges
Chevron’s Deepwater Project Experiences
New and Emerging Floating System Concepts
Concluding Remarks
2011 Chevron U.S.A., Inc.  All rights reserved.

3. Why Deep Water? – Easy Oil is Gone!
What does it mean:
Harsher environments
Deeper waters
Lack of infrastructures
What can we do about it:
Courtesy of Bluewater
Opportunities of floating system technologies for enabling solutions
Mitigation of risks associated with use of new technology
Building collaborative & productive partnerships to leverage project experience and accelerate technology deployment
2011 Chevron U.S.A., Inc.  All rights reserved.

4. Deepwater Resource is Significant
7500 ft
5000 ft
1000 ft
1500ft
Reserves
MMBOE
Water Depth ft
1 – 49
5 – 249
250+
1,000 – 1,499
1,500 – 4,999
5,000 – 7,499
>7,500
More bubbles and bigger bubbles, e.g. CVX will drill an average of 4-5 exploration wildcat wells per year, with a focus on Lower Tertiary prospects, and maintain an impact Exploration Factory.
Estimated Volume of Gulf of Mexico Deepwater Fields
OCS Report: MMS
2011 Chevron U.S.A., Inc.  All rights reserved.

5. Chevron and the Worldwide Portfolio
Long-term global deepwater offshore growth expected
2011–2015 deepwater expenditures estimated to be over $200 B, ~75% increase over the previous five years
The “Golden Triangle” still dominate, growth in Asia Pacific will be significant
Worldwide Producing Deepwater (DW) Basins
Global Forecast of FPS Spending
The “Golden Triangle” of deepwater, namely Africa, the Gulf of Mexico, and Brazilian areas, still will account for nearly 75% of global deepwater expenditure over the forecast period, but the emergence of Asia as a significant deepwater region should not be overlooked. Asian deepwater expenditure over the period will increase by 90% compared to spend. Much of this growth will be driven by the development of the Kebabangan cluster in Malaysia as well as the MA-6 development offshore India.
Chevron Participation
Other DW Basins
2011 Chevron U.S.A., Inc.  All rights reserved.

6. What Concepts Are in Use?
FPSOs continue to dominate concept selection primarily from lack of pipeline infrastructure.
Driven by drilling, completion and well intervention costs, other concepts have become more important such as:
Semi-submersibles
Tension leg platforms (TLPs)
Spars
Global Forecast of FPS Hull Type
Despite the near-term slowdown due to global financial crisis in and oscillating crude oil prices, the global deepwater offshore market is expected to be both healthy and with robust growth.
2011 Chevron U.S.A., Inc.  All rights reserved.

7. Proven Floating Concepts
Dry- or Wet-Tree Solutions
Wet-Tree Solutions
Developments in deepwater environments can be characterized by the type of access to the development wells; direct vertical access (DVA) systems from surface (e.g. dry-tree solutions), non-DVA systems at seabed (i.e. wet-tree solutions), or combination systems.
Given the relatively short history of production in deep waters, operators need to have more confidence that the chosen floating system concept will perform as planned and produce competitive economics.
Technical attributes (pros & cons) associated with the existing tool-kit concepts are shown on this slide. This does NOT preclude operators from considering other more innovative development concepts and/or extending these tool-kit concepts to reduce cost and risk.
Spar
 Good heave motions
▬ Vortex-induced motion (VIM)
▬ Size-limited
TLP
Minimum heave
Weight-sensitive
Depth-limited
Semi-Submersible
 Quayside integration
Riser fatigue
FPSO
Storage capacity
Quayside integration
Riser interface
Riser fatigue
2011 Chevron U.S.A., Inc.  All rights reserved.

8. Looking at Water Depth
TLPs: Depth-limited due to conventional tendon design restrictions.
Semis: Increasingly popular due to depth insensitive and quayside integration and might soon be used for dry-tree applications.
Cascade/Chinook: Soon to be the first GOM FPSO
One of the key factors that affect the selection of a floating system concept is “water depth”.
This slide shows the relative water depths of floating system concepts that are either installed or under construction. The perceived water depth capability of each concept is also illustrated.
As shown, the main limitation for TLP is due to the weight of its tethers. For water depth beyond 1,500 – 2,000 meters, the tether weight tends to penalize the hull size and the economics of a TLP concept.
2011 Chevron U.S.A., Inc.  All rights reserved.

9. Multiple Concepts Needed for Opportunities
Water Depth vs. Production Capacity
Large overlaps reinforce the need for concept evaluation and selection during early phase of a project.
There are a number of opportunities where only a single concept is practical.
Water Depth (ft)
9,000 -
7,000 -
Spar
TLP
Semi
FPSO
5,000 -
3,000 -
FPSO Boundaries
Abalone –A petrobras development in 6500 feet and bopd
Spar Boundaries
7,800 feet and bopd
TLP Boundaries
feet and 250,000 bopd Nb. Snorre A is an outlier in todays market. It would not be an economic choice today.
Semi Boundaries
Independence 7,900 feet and Thunder 290,000 bopd
Platform Name Water Depth(ft) Production Capacity (Mboe/day)
SPAR
Neptune
Medusa
Genesis
Gunnison
Front Runner
Boomvang
Nansen
Tahiti
Holstein
Mad Dog
Hoover/Diana
Constitution
Red Hawk
Horn Mountain
Devils Tower
Perdido
TLP
Hutton
Snorre A
Heidrum
Prince
Morpeth
Jolliet
Matterhorn
Auger
Mars
Brutus
Ram/Powell
Marlin
Ursa
Neptune
Marco Polo
Shenzi
Magnolia
SEMI
Innovator P P
Thunder Hawk P
Na Kika
Thunder Horse
Blind Faith
Atlantis
Independence Hub
FPSO
Abalone
Agbami
Aker Smart
Akpo
Baobab Ivoirien
Berge Helene
Bonga
Brasil
Capixaba
Captain
Cidade Janiero
Dalia
Erha
Espadarte
Firenze
Fluminense FPSO
Frade
Gimboa
Girassol
Golfinho II
Greater Plutonio
Kikeh FPSO
Kizomba A
Kizomba B
Kizomba C #
Marlim Sul
Mondo
Opportunity Oil P P P P P P P P
P-53 FPSO
P-54 Roncador
Piranema
Sao Mateus
Seillean
Sendje Ceiba
Stybarrow
Xikomba
1,000 -
100
200
300
400
Production Capacity (Mboe/day)
2011 Chevron U.S.A., Inc.  All rights reserved.

10. Concept Selection Process
Cost
Hull motion characteristics
Export options or storage requirements
Hull Technical
Commercial
Riser system
Production rate and
reservoir
aerial extent
Hull Concept Selection
Water depth
Direct vertical
access of wells
Understanding the advantages/disadvantages
Minimizing the risks, especially subsurface & drilling (~> 50% cost)
Ranking based on project/company criteria
Metocean
Production only?
Drilling?
Region and Location
Reservoir Management
2011 Chevron U.S.A., Inc.  All rights reserved.

11. Motion Characteristics of Floating Hulls
Natural Periods of Motion
Vertical motions are controlled by tendons
Vertically moored
Spread moored
Vertical motions are controlled by hull configuration
Sea Energy
TLP
Spar
Semi
Ship Beam
To minimize vessel motions, it is desirable to ensure that the frequency of the waves (period) does not coincide with a resonant frequency of the vessel (the frequency at which the vessel ‘sings’ and so motions are significantly worse). The slide shows the typical wave period together with typical heave motion periods for the primary floating concepts.
The TLP, semi-submersible, and spar will not suffer resonant response since their natural heave periods are far away from the period with maximum sea energy. However, ship-shaped FPSO in beam sea configuration may suffer significant motion. Therefore, the aforementioned design of weathervaning or turret moored FPSO’s are deployed in regions where storms are likely to occur equally from all headings, in order to maintain the FPSO in head seas. Spread moored FPSO’s are acceptable in West Africa since severe weather is predominantly from the south or southwest.
Ship Bow 5
Wave Period (Seconds) 20
Note: Hull motions are minimized by keeping outside the area of wave energy.
2011 Chevron U.S.A., Inc.  All rights reserved.

12. Summary of Basic Concept Features
Spar
TLP
Deep-Draft Semi
FPSO
Turret
Spread Moored
Export Alternatives
Pipeline
Pipeline/ Tanker
Water Depth
Up to 8,000 ft
400 to 6,000 ft
800 to 8,000 ft
50 to 8,000 ft
Topside Weight Requirements
Up to 20,000t
Up to 40,000t
Metocean Characteristics by Region
All
Not harsh conditions
Riser System
Top-tensioned, SCR*, Flexible, Tower
Top-tensioned, SCR, Flexible, Tower
SCR, Flexible, Tower
Flexible, SCR, Tower
Dry or Wet Trees
Dry or Wet
Wet
(eg. FPSO for GoM)
Concept selection for floating production systems has a complex number of parameters to consider.
FPSO’s are the most common concept selected because of storage or export capabilities.
Local regulations and local content may impact concepts.
*Steel catenary riser (SCR)
2011 Chevron U.S.A., Inc.  All rights reserved.

13. Key Concept Selection Criteria
Technical Feasibility; support all equipment for operations while meeting all performance criteria
Maturity of Design
Technical robustness
Historical performance
Experience of people involved
Costs and Risks
CAPEX / OPEX
Project Execution Plan
After stepping through the selection process, these are some of the key criteria that affect the final selection.
The ultimate goal is to select an optimum hull concept which:
Supports all necessary equipment for production while meet all performance criteria
Provides sufficient robustness to fulfill its intended purpose
Built, installed and operated at minimum risks and costs
2011 Chevron U.S.A., Inc.  All rights reserved.

14. Ultra-Deep Water Has Other Challenges
Design Challenges
Capability to predict and verify response behavior of entire floating system
Testing facilities cannot model floating systems with complete mooring lines and risers
Key Questions*
To what extent can the truncated test be done?
Can the numerical analysis reproduce the test results?
Can the full-depth extrapolation capture the coupling effects, e.g., “tail wagging the dog”?
1:100 model in a 10m deep wave basin for 1500m full water depth
Compromise
Wave basins are not big nor deep enough!!
e.g., 1:100 model scale in a 10-m deep basin for 1,500-m WD
Typical Range
1:50 – 1:100
Numerical Interpretation
Physical
Testing
Uncertainties
Model Scale (- Water Depth)
2011 Chevron U.S.A., Inc.  All rights reserved.
*Ref: Lee & Ma, DOT 2008

15. How do we handle uncertainty in this area?
Ever-Changing Environment:100-year Hs Contours Based on Passage of More Large Storms
How do we handle uncertainty in this area?
Hot spot
???
JSM
(7,000’)
BGF
(5,200’)
Point to note: in the Central GOM “hot spot”, the new API RP 2MET has the revised criteria in place. Recent major hurricanes in the GOM like Ivan (2004)/Katrina (2005) tracking would feed into increased design statistics.
However, there’s still significant upside potential outside of Central GOM, e.g. Gustav & IKE of 2008.
Several large storms passing west of central GOM could change platform design statistics further, widen perceived intense area of Gulf*
Hs (m)
2011 Chevron U.S.A., Inc.  All rights reserved.
*Ref: OTC & 19602 15

16. Example Changes: Central GOM
Add large storms, eliminate early data…
Example, 100-year Hs, Central GOM:
2003 was 13.5 m
2008 now m
Example Changes:
Central Gulf site 100-year Hs:
2003 was 13.5 m
2008 now m
Have adjusted JSM, BGF sites for historical record and Ike, but…
Statistics still vulnerable to change from big storms 16
2011 Chevron U.S.A., Inc.  All rights reserved. 16

17. Chevron Installations and Constructions
FSU/FPSO
Alba/Captain
Rosebank
FPSO
*Terra Nova
FPSO
*Hai Yang Shi You
*Nan Hai Fa Zian
*Bohai Shi Ji
Spar
Genesis
Tahiti
*Mad Dog
*Perdido
Semi-Submersible
Blind Faith
Jack/St. Malo
Compliant Tower
Petronius
TLP
Big Foot
FPSO
Tantawan
Benchamas Explorer
Pattani Spirit
FPSO
Frade
*Papa Terra
FPSO/FSO
Agbami
Escravos LPG
*Usan
FPSO
*Cossack Pioneer
FPSO/FSO
Kuito
Sanha
*Kome Kribi
*Moho-Bilondo
*N’Kossa
Negage
Lucapa
FPSO
*Intan
*PBS&J San Jacinto
Gendalo-Geham
TLP
West Seno
Compliant Tower
BBLT
Tombua-Landana
* Non-Operated Joint Venture
In Design
2011 Chevron U.S.A., Inc.  All rights reserved.

18. Recent Chevron Floating Projects
The Chevron Way at its best: people, partnership and performance – health, environment and safety
Used a system approach in concept selection – coupled hull, mooring and riser solutions
Integrated operations and project teams early in the process
Aligned company and contractor – contracting strategy
Guard unknowns in deepwater operations, especially contingency of vessel and equipment – crane limit, vessel breakdown
OTC 19857
OTC 20249
Agbami 3Q 2008
Blind Faith 4Q 2008
Frade 1Q 2009
Tahiti 2Q 2009
Agbami – 3Q08 (The world’s largest FPSO; A worldwide partnership/teamwork – “One Project, One Team”)
Blind Faith – 4Q08 (Reached full production within 2 months of first oil)
Frade – 1Q09 (CVX’s first operating asset in one of the most promising deepwater regions)
Right to hold facility in yard to achieve planned sailaway completion?
Use Separate integration contactor?
Tahiti – 2Q09 (Reached full production within 2 months of first oil)
2011 Chevron U.S.A., Inc.  All rights reserved.

19. Current Floating Systems Projects in Design
Jack & St Malo semi
Big Foot TLP
Papa Terra TLWP
2011 Chevron U.S.A., Inc.  All rights reserved.

20. Dry Tree Facilities for Ultra-Deep and Large Payload
No proven dry-tree concepts
TLP limited by Water Depth
For ultra-deepwater Wilcox reservoirs, our additional challenges:
WD is deep; the drilling (reservoir) depth is even deeper.
High tension and large stroke for the riser tensioning systems.
Spar limited by Payload
2011 Chevron U.S.A., Inc.  All rights reserved.

21. New Enabling or Enhancing Concepts
FPSO with drilling capability
Reduce development drilling cost
Increase oil recovery
Circular-shaped FPSOs to reduce CAPEX
Better hull steel efficiency
Simplified constructability
No turret (even in harsh conditions)
Dry-tree semis to reduce CAPEX and increase flexibility
Higher topsides weight
Deeper dry-tree developments
Quayside integration
Octabuoy
MinDOC
Azurite FDPSO
Sevan
SSP
Pair-C Semi
Aker Dry Tree Semi
2011 Chevron U.S.A., Inc.  All rights reserved.
Azurite FPSO photo courtesy of Murphy Oil Company

22. Chevron Technology Qualification Process
“All new technologies that will, by the end of Select (i.e. prior to FEED), have been proven either through field trials, extensive testing, or successful application in a parallel industry, shall be considered.”
Example: Dry-Tree Semi Issues
Hull motions to accommodate proven riser tensioning systems
Constructability of new hull forms and/or critical components
Minimize risks of new technologies
2011 Chevron U.S.A., Inc.  All rights reserved.

23. Concluding Remarks
Deep water will require a large portfolio of projects to be developed with floating production systems.
Development opportunities often call for floating system concept evaluation and selection.
A more standardized concept selection process is needed.
Focus on new developments of enabling/ enhancing concepts, and be open to new technologies.
Dry trees and/or platform drilling are likely to become more important, to increase recovery and reduce cost.
Operation’s input early and throughout the floating system project will pay significant dividends.
A standardized concept selection process is needed to:
not re-inventing the wheels.
Leverage best practices & lessons learned to improve project results.
Integrated operations and design will lead to a more reliable floating facility, which is easier to operate & maintain.
2011 Chevron U.S.A., Inc.  All rights reserved.

24. Thank You!
New floating system technologies are required to address ever increasing water depth and large topside challenges
Experience, technology and perseverance enable us to overcome challenges and deliver value
Collaborative and productive partnership will accelerate technology development and deployment
Questions?
New concept from inception to installation ~10 years.
2011 Chevron U.S.A., Inc.  All rights reserved.