Cott Feasibility Study Presentation Final Issued

Page:1 www.wison.com | www.wison-offshore.com

Pandora FLNG Wison Offshore & Marine

Cott O&G representatives on the

Caribbean FLNG vessel, Nantong.


Project Background

Wison Capability

FLNG Solution

Capital Cost

Operational Expenditure

Development Pathway

Construction Schedule

Financial Viability

Contents

Cott O&G representatives Andrew Dimsey, MD, and Alistair Jobling,

Commercial Manager, in the Nantong fabrication yard board room.


Pandora FLNG Project Background Wison Offshore & Marine was asked to

undertake high level concept study for the

development of the Pandora gas field

using floating LNG technology based on

the following criteria:

800 bcf recoverable resource of lean gas

Production rate up to 200 mmscfd

Acid/sour gas removal and disposal

The study included:

Identification of location-specific parameters for developing concept including:

Hull design

LNG containment system and capacity

Pre-treatment

Mooring and offloading

Description of technically feasible concepts and indicative capital costs

High level operating estimates

Pathway for evaluation and development of preferred FLNG solution.


Business Segments Focusing on the Energy Industry and Hi-tech Sectors

Using coal as feed

stock, Wison Energy

provides high quality

industrial gases via

clean coal technology.

Wison Group

Specializing in

petrochemicals, coal

chemicals and refining

industries

Development of

emerging chemical and

LNG related businesses.

A word-class EPC

Contactor focused

providing solutions on

international oil and gas

EPC Projects.

Clean Energy Emerging Business Offshore & Marine Engineering Services

The Wison Group employs approximately 3,000 people worldwide


Wison Offshore & Marine International oil and gas EPC contractor and fabricator.

Services cover the full life cycle of project delivery, from facility design and engineering

to project management, construction and commissioning.

Proven expertise with fixed platforms and modules, LNG systems, floating production

and drilling systems, offshore support vessels and offshore lifting equipment.

Page:5 www.wison.com


Current Projects Caribbean FLNG

FLNG storage and process requirements are:

- Storage - 16,000 m3

- Liquefaction - 0.5mmtpa

- Alongside FLNG is 140,000 m3 LNG Floating Storage Unit (FSU)

Gas source is Pacific Rubiales Energys (PRE) La Creciente field

PRE will build an 18 inch pipeline to transport gas from the field to the coast (88 Km)

Caribbean FLNG barge scheduled for operation early 2015

Project is on schedule and budget. FLNG is to be located 4 Km

offshore in 14m water depth


Wison has signed contracts for the

development of 2 LNG regasification barges

Newbuild barge-based

Regasification capacity of 4.47 MTA

750MMscf/d nominal

1,000MMscf/d maximum

Designed to accommodate future regasification expansion to 8.94 MTA with addition of another

750MMscf/d module

Storage either on board or a separate unit (FSU)

Moored via dolphin mooring system in 20m of water

Floating Regasification Unit Projects

Wison - EPCIC contractor

Overall project management

E-P-C-I-C

Transportation

Start-up

Major subcontractors:

Regasification - Black & Veatch and Hammworthy


Nantong Yard

Covers an area of 640,000m2

Coast line of 735m Water depth 15m Peak Staffing 3,500

Dry dock: 290m(L) x 68m(W)

Skid way: 60T/m2: 600m x 42m

Operational Since 2006


Zhoushan Yard

Total investment $200 million US Covers an area of 1,500,000 m2

Coast line of 2,300m Water depth 15m Facing international sea route

Dry dock: 400m(L)x120m(W)

Skidway: 30,000 ton

Skidway Operational: 2013

Under Construction


Partnerships and Technology Wison would be the primary EPCIC

contractor for the fabrication and design of

the FLNG vessel, Wisons scope:

- FLNG Project Management, Engineering, Procurement, Construction,

Commissioning, Transportation,

Installation and Start-up of the Facility

Wison will engage major subcontractors:

- Black & Veatch: Topside LNG Equipment Design, Procurement & Commissioning

- Liquefaction technology is Black & Veatch PRICO Single Mixed Refrigerant (SMR)

- SPB Tank manufacturer: Cargo Tanks & Cargo Handling Systems

EPCIC contract structure to be finalised based on ownership structure of vessel and

key infrastructure

LNG Storage and Handling

System

Infrastructure

subcontractor

Client/Owner

EPCIC Contractor

Process Design

Potential Build Own Operators


PRICO SMR Liquefaction Technology

Black & Veatchs patented PRICO Single Mixed Refrigerant technology

is the simplest form of mixed

refrigerant cycle.

B&V has considerable experience in the field:

- 30 global LNG plants in operation

- 18 plants under engineering or construction

Process is scalable over wide capacity range but core process

remains the same.

Compact layout with modular philosophy lends itself to use

offshore.

Simplicity of process results in relatively low cost.

Simplified operations lead to quick startup.


FLNG vessel with 170,000m3 SPB tank storage to eliminate sloshing

2 x 0.5 MTPA water-cooled liquefaction trains (Black & Veatch PRICO)

Gas Turbine

Heavy hydrocarbons used in Fuel Gas

Onboard gas treatment (amine tower, mercury bed) and reinjection of sour gas stream into reservoir

External turret mooring vessel can weathervane

Side-by-side or turret offloading to be determined - subject to review of the metocean conditions and suitability of offloading solutions

Accommodation and utilities

Vessel construction estimated to take 38 months

Concept 1 Offshore FLNG


Concept 2 Near Shore LNG Field production via a Buoyant Tower.

- Dry completions on board

- Gas pre-treatment and sour gas re-injection

Clean gas pipeline to near-shore location (approx 160km)

170,000m3 storage barge jetty/dolphin moored in min 14m depth or Gravity Based Structure (GBS)

1 MTPA liquefaction capacity via 2 x 0.5 MTPA Liquefaction trains

Side-by-side offloading

Vessel construction estimated to take 36 months


Near Shore Schematic


Near-shore Solution Offshore field production using a Wison Horton designed Buoyant

Tower

Cost effective solution for the water depth and soil conditions

- Dry-trees

- Quick installation

- Wison installed the BPZ BT offshore Peru in 2012

Buoyant Tower topsides include production trees, gas pre-treatment for sour gas removal and cleanup, sour gas reinjection, and

compression for the subsea pipeline to a near-shore location

Sub sea pipeline will run approximately 160km to an inshore location that provides protection from harsh weather and seastates

LNG barge will be located in shallow water (at least 14m) allowing LNG carriers to berth alongside whilst eliminating or minimising the

amount of dredging required

Barge can be jetty moored or part of a Gravity Based Structure


Horton Wison Buoyant Tower

Current Status


Buoyant Tower Installation CX 15

Topside and Hull on one Vessel


Advantages

Near shore LNG barge is considerably simpler and less expensive

Reduced infrastructure compared to traditional onshore LNG plants

Can monetise onshore and/or offshore gas

Easier LNG transfer conditions, reduced impact of weather windows

Easier to develop a generic design for expansions

Easier logistics Logistics hub can be located nearby on land

- Support vessels should be more readily available and cheaper

- Shared utilities

- Accommodation

Safety

Located closer to local communities and businesses

Disadvantages

Total solution is more costly and has greater proportion of non-relocatable capex (eg pipeline)

Increased staff costs due to dual platform. Near shore LNG barge is considerably simpler and less expensive than an onshore facility

Advantages of a near shore solution


Project Capital Cost Estimates Concept 1 Offshore FLNG

- 1 MTPA FLNG vessel, inclusive of pre-treatment, 170,000m3 SPB LNG

storage, turret moored with tandem offloading.

- Estimated CAPEX of $US 900 - $1,100 / tonne LNG throughput

Concept 2 Near-shore LNG

- 1 MTPA FLNG barge, 170,000m3 SPB LNG storage, jetty / dolphin

moored with side-by-side offloading

- Near-shore solution includes the cost of:

- Buoyant Tower, estimated at $US 360M; and

- 160km sub-sea pipeline, estimated at $US 418M

- $US 600 -$700 / tonne of LNG throughput for LNG vessel

- Total estimated CAPEX of $1.3 1.4Bn


Operating Expenses and Project Viability Operating Costs

Deepwater solution - Higher operational expense due to the remoteness, increased staffing costs, impact of weather conditions and sea-state on

production and offloading, gas pre-treatment and sour gas reinjection

Liquefaction operational expense of between $1.50/ mmbtu to $2/ mmbtu

Near shore solution Lower liquefaction operational expense, however additional costs or tariffs for the Buoyant Tower and subsea line operation

Overall near shore LNG operational expense of between $2/ mmbtu and $2.5/ mmbtu

Operational expenses for both scenarios include maintenance, refrigerant makeup, staff, chemicals and consumables.

Total cost to produce LNG from the Pandora field are in the region of $6.5/ mmbtu to $8.10 /mmbtu including recent LNG carrier day rates

Project Viability

Based on the information analysed by Wison and the capex and opex assumptions, the Pandora FLNG project is appears technically and

commercially viable and should progress to the next stage of development


Development Pathway Concept Selection

Pre-FEED +/- 20% Capital cost estimates development cost.

- The field development components to be included are the Buoyant

Tower with topsides, subsea pipeline (in the case of near-shore

development) and FLNG facility

FEED to develop a definitive design and a +/- 10% cost estimation. This stage will result in a lump sum EPC price for the delivery of an

FLNG vessel, Buoyant Tower and pipeline (if near-shore

development)

FID

EPC Construction contract with Wison Offshore & Marine

Installation and Commissioning

Hand over and on going support


Pre-FEED The next steps are further engineering studies to develop a basis of

design used during the pre-FEED design of the LNG barge, buoyant

tower, sour gas reinjection and subsea pipeline

Pre-FEED stage will determine the facilities required and identify all major technical challenges and issues

The end result of the pre-FEED study is an initial engineering design with a cost estimate of increased accuracy to evaluate project

economics

Wison Offshore & Marine will provide a pre-FEED project CAPEX and OPEX with a cost accuracy of (20%) for a lump sum turnkey near-shore LNG barge and Buoyant Tower

Environmental and government regulations and approvals to be identified by the owner and addressed will require ongoing

engineering input in the approval processes as the project proceeds


Construction Schedule

Preliminary schedule based on WOMs experience with a near-shore FLNG

Total construction timeframe from award of EPCIC contract until first gas is approximately 36 months


www.wison-offshore.com

THANK YOU

Wison Offshore & Marine (Hong Kong) Ltd. Australian Office Level 24, Allendale Square

77 St Georges Terrace

Perth, WA, 6000

Wison Offshore & Marine (USA), Inc. 1400 Broadfield Boulevard, Suite 150, Houston, Texas, USA

Tel+1 281 676 2650 Fax: +1 281 676 2086

Wison Offshore & Marine, Ltd. 699 Zhongke Road, Zhangjiang Hi-tech Park, Shanghai, China

Tel+86 21 2030 6789 Fax: +86 21 5855 7211

www.wison-offshore .com

Cott Feasibility Study Presentation Final Issued

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