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Flexible Subsea StorageFlexible Subsea Storage UnitUnitFlexible Subsea Storage Flexible Subsea Storage Unit Unit An Enhancing Technology for Remote An Enhancing Technology for Remote and and Marginal Marginal Fields in Fields in Any Any Water DepthWater Depth

KONGSBERG PROPRIETARY: This document contains KONGSBERG information which is proprietary and confidential. Any disclosure, copying, distribution or use is prohibited if not otherwise explicitly agreed with KONGSBERG in writing. Any authorised reproduction in whole or in part, must include this legend. © 2014 KONGSBERG – All rights reserved.

Jens P. Kaalstad, Kongsberg Oil and Gas Technologies Inc.

Industrial pioneer established in 1814

05.03.2014 WORLD CLASS - through people, technology and dedication Page 2

KONGSBERG has a unique history and a strong culture

Today: International high-tech solutions,y gfrom deep sea to outer space

Advanced solutions and applications for the maritime, oil & gas, defence and space industry.

- Extreme Performance for Extreme Conditions -

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Focus on technology leadership forms the gy pbasis for our international growth

Merchant Shipping

10 %

Other: Space, Fishery,

Research, Public 8 %

Defence(Norway and international)

Offshore / Oil and Gas

32 %

More than 10% of revenue is spent on Innovation and Product DevelopmentMore than 10% of revenue is spent on Innovation and Product Development

international) 50 %32 %

More than 10% of revenue is spent on Innovation and Product DevelopmentMore than 10% of revenue is spent on Innovation and Product Development

Flexible Subsea Storage Unit g

Introduction Video

Flexible Subsea Storage Unit g

Introduction Video

Flexible Subsea Storage Unit Development g psupported by Norwegian Research Council, Statoil, Lundin & Det Norske.

Subsea Storage Concept Oil / Water physical fluid barrier

Patented

• Not affected by severe weather diti

• Flexible Bag – no emulsion l i kconditions

• Low OPEX• Flexible• High Cash flow

layer risk• Double barrier against Oil spill• Integrated Leak detection

systemg Cas o syste• No need to design against

seabed pressure

Flexible Subsea Storage Unit - SSUBasic Principles

Oil

Seawater

Empty Half full Full

► Discharging by hydrostatic pressure

► No personnel required

► No or little energy used for heating, transport, ballasting etc.

► Submerged and protected from collisions and bad weather

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► No VOC* emission (No ventilation to air)

* VOC – Volatile Organic Compound;

Flexible Storage Capacityg p yFlexibility and Scalability throughout Life of Field

SSU - Loading and OffloadingSystem description - topside processing

Production/process

RiserManifold Instrumentation

Protection structureHatchFlexible bag

1,5 – 3 km

Metering Booster pump if requiredOffloading Instrumentation g

Instrumentationg

Instrumentation

Riser for loading Offloading SystemSSU system

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y

Operation Managementp g

SSU - Base Case Design

Hatch with Protection Structure

Base Case Size: • 125,000 barrels• 42m diameter• 30m height • Hatch is replaceable and integral with the

flexible bag• Sensors and valves placed in the hatch• Any leaks are captured in hatch annulus,

emptied by recovery line and drain valve.

Inspection Access Seawater Intake

Integrity Monitoring and Control g y gThermal Management, Loading and Offloading

Well Proven monitoring is utilised

Flexible Bag Suppliersg pp

Both Trelleborg in UK and Contitech in Germany has long experience in equivalent products and strong R&D departments.

Flexible tanks has been used as fuel storage for the US army under harsh environment in Afghanistan for 9 years. According to Contitech the bags are still in good condition.

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Leakage test - tank for fuel storage to US army

Subsea Storage Unit Installation

One alternative installation method is: • Tow-out the SSU in floating mode• Lower to seabed with buoyancy control• Lower to seabed with buoyancy control,

combining: compressed air in the structure buoyancy elements and “pen buoy”.

• Final positioning with DP Tugs and dowels• Final positioning with DP Tugs and dowels

Emissions and energy consumptionComparison FSO - SSU

CO2

125 500

GWh

100

751000

400

30075

50

VOC

Ton

x 1

GW

h

300

200

25

0

CO2

VOC

100

0

GWh

0 0

FSO/FSU SSU

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Energy consumption and CO2 emission based on diesel or gas turbines with 25% efficiency.Conversion; 1l diesel = 10 kwhFSO numbers based on average diesel consumption 5 000 liters per day

Conclusions and ApplicationsE t P f f E t C ditiExtreme Performance for Extreme Conditions

Subsea Factory illustration: Statoil

Th k YThank You

kongsberg.com

Acknowledgement

Kongsberg Oil and Gas Technologies wish to thank the Norwegian Research Council under the Demo 2000 program with Statoil, Lundin and Det Norske Oljeselskap as partners for ongoing

contribution and support.

Th l f th d l t i t lif th SSU f ff h i t ll ti dThe goal of the development program is to qualify the SSU for offshore installation and laboratory tests are planned to demonstrate the performance of the product.