WA Oil and Gas Facilities Group Meeting

2009-11-9

FPSO in Australia and New ZealandStatus and Future

Yoshihide Shimamura

MODEC Offshore Production System

2

FPSO – Over View

- Floating facility for Offshore Oil Field w/o Pipe Line- Fit for Marginal Field- Booming in West Africa, Brazil, S.E. Asia, incl. ANZ

Why?- Low CAPEX- Early Development- Adaptable for Deep Water- Flexible for Field Characteristics

3

165

67

22

11

17

2

44

32

0

50

100

150

200

250

1977

1978

1979

1980

1981

1982

1983

1984

1985

1986

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

as of end y ear (2009 inc ludes units on order to be delivered during the y ear)

(Num

ber o

f Ins

talle

d U

nits

)

FP S O TLP S par S em i

GROWTH OF FLOATING PRODUCTION SYSTEMSBetween 1999 and 2009- Number of FPSO increased from 67 units to 165 units (+ 98 units, + 146%)- Number of TLP increased from 11 units to 22 units (+ 11 units, + 100%)

Source: FLOATING PRODUCTION SYSTEMS assessment of the outlook for FPSOs, Semis, TLPs, Spars and FSOs – April 2009 (IMA)

4

FLOATING PRODUCTION SYSTEMS IN OPERATION

Projects in Operation as of July 2009

Mediterranean

47

FPSO

FSO

TLP

SEM

I

GOM

31

15 15

7

FPSO

FSO

TLP

Spar

SEM

I

SE A s ia

17

40

1 1 1

FPSO

FSO

TLP

Spar

SEM

IIndia

1

9

1

FPSO

FSO

TLP

SEM

I

W es t A f r ic a

34

15

4

FPSO

FSO

TLP

SEM

I

China

15

1 1

FPSO

FSO

TLP

SEM

I

Pac if ic

15

3

FPSO

FSO

TLP

SEM

I

Braz il

28

4

18

FPSO

FSO

TLP

SEM

I

W or ld Total

88

2216

43

151

FPSO

FSO

TLP

Spar

SEM

I

Nor th Sea

22

7

2

12

FPSO

FSO

TLP

SEM

I

Source: FLOATING PRODUCTION SYSTEMS assessment of the outlook for FPSOs, Semis, TLPs, Spars and FSOs – July 2009 (IMA)*Not shown are 9 FPSOs and 3 production semis that are off-field and available for reuse.

Canada

2

FPSO

FSO

TLP

Spar

SEM

I

5

FPSO – In Australia/New Zealand-18 FPSO are operating or under construction-Lease (11) vs Operator Own (7) – average (54/46%)-Lease/Operation period <10 years-Disconnectable FPSO (13)-Water Depth – no deep water-Production rate - average 82,000BOPD/52mmscfd-Storage Capacity – average 860kBBL-Conversion case (13), new built case (5)-Less Operation crew (<30)

6

FPSO Operation in Australia/New Zealand

Mutineer-Exeter

Buffalo Elang/Kakatua

Maui-B

Perth

Darwin

Karratha

Stybarrow

Maari

Tui

Puffin

Enfield

BMG

Woolybutt

Laminaria

CossackGriffinChallis

JabiruSkua

Pyrenees

Van Gogh

VincentMontara

FPSO in Australia/NZ

7

FPSO in Australia/NZ - Statistics

79mMontaraMin

850mPyreneesMax

18total

28%5>300m

56%10100m - 300m

17%3<100m

Water Depth

0.86MilAverage

BMG42Min

Laminaria1.4MilMax

6>1Mil BBL

12<1Mil BBL

Storage

82KBOPDAverage

40KBODMin

Laminaria170KBOPDMax

6>100KBOPD

750-100

5<50KBOPD

Production - Oil

52Average

Mutineer/Exeter2Min

Cossack115Max

2>100MMSCFD

550-100

7<50MMSCFD

Production - Gas

8

Disconnectable FPSO – MV11

9

MODEC Venture 1

Disconnectable FPSO – MV1

10

FPSO ex Buffalo Venture

11

Last 10 yearsTechnical Challenges

- Continuous Challenges to- More Deep- Bigger Capacity

- New phase of Challenge- More complex crude- More efficient- More eco-friendly

Coming 10 years

12

0

2 0 0

4 0 0

6 0 0

8 0 0

1 ,0 0 0

1 ,2 0 0

1 ,4 0 0

1 ,6 0 0

1980 1985 1990 1995 2000 2005 2010

Wat

er

De

pth

Historical Change in Water Depth

13

0

50 ,0 00

100 ,0 00

150 ,0 00

200 ,0 00

250 ,0 00

300 ,0 00

1970 1975 1980 1985 1990 1995 2000 2005 2010

Pro

duction R

ate (BO

PD)

Historical Change in Production Capacity

14

25,000BOPD/1986

31,000BOPD/1996

80,000BOPD/2007

100,000BOPD/2007

Expanding Topside Footprint

15

Last 10 yearsTechnical Challenges - Gas

- Continuous Challenges to- More Gas Handling- Efficient Use

- New phase of Challenge- More efficient- More eco-friendly- New technology – GTL/LNG

Coming 10 years

16

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

1970 1980 1990 2000 2010

Gas

Handlin

g C

apacit

y (

mm

scfd

)

Historical Change in Gas Handling Capacity

17

Flare

Gas Lift

Export Gas

Gas Turbine Generator

Boiler Turbine Generator

CompressorElect Motor

Gas Turbine

Fuel Gas

Gas Injection

Compressor

Disposition of Produced Gas

18

FLNG

19

GTL Plant with Micro Channel Reactor Technology

20

FPSO Contractor – Lease OperationMerit for Operator- Saving of CAPEX - Flexible charter period – minimize development risk

- High Oil Price = Extent Lease Period- Reduce OPEX – salary of crew (time charter case)

Merit for FPSO Contractor- Constant revenue for long period- Redeployment of facility- Pool of resource

21

FPSO Lease Operation

FPSO ContractorOil CompanyOperation Contract

FPSO ProviderFPSO ContractorTime Charter ContractOil CompanyFPSO ContractorBare Boat Charter

O&MFacility OwnerContract

Synergy EffectUtilize for Multiple Fields

Facility Management System

Multiple Fleet

TrainingMobilize to Multiple Facilities

Pool of Human Resource

22

FPSO/FSO TIME CHARTER / O&M PERIOD

Option periodFixed period

Time Charter Contract

Fixed period Option period

O&M Contract

* Consolidated Subsidiary* Affiliates accounted for by the Equity Method

Oct 2009Time Charter: 11 FPSO/FSOs, O&M: 2 FPSO

1998 1999 20192013 2014 2015 2016 2017 2018 20202012201120102009200820072006200520042003200220012000

15y

7y

12y

9y

9y

5y

10y

20y

8y

7y

10y

5y

5y

10 y

1y

2y

3y

5y

(FPSO Buf f alo V enture)

（pu rc h ase d by th e c lie n t）

2.5y

2y

15y

13y

FPSO Cidade de A ngra dos Reis MV 22

Tullow Jubilee FPSO

FPSO Cidade de Santos MV 20

BHP Py renees FPSO

FPSO Cidade de Niteroi MV 18

FSO Rang Dong MV 17

FPSO Song Doc Pr ide MV 19

FPSO Sty barrow V enture MV 16

FSO Cidade de Mac ae MV 15

FPSO Cidade do Rio de Janeiro MV 14

FSO Rong Doi MV 12

FPSO Baobab Iv oir ien MV 10

FPSO Jas mine V enture MV 7

FPSO MODEC V enture 11

FPSO Cuulong MV 9

FPSO Fluminens e

FPSO MV 8 Langs a V enture

FSO Ta'Kuntah

FPSO MODEC V enture 1

1998 1999 20192013 2014 2015 2016 2017 2018 20202012201120102009200820072006200520042003200220012000

＊

＊

＊

－

＊

＊

＊

＊

＊

＊

＊

＊

＊

＊

＊

－

＊

＊

＊

23

Leased FPSO

Charter Period

Pro

duct

ion

Rat

e

Initial Period Option Period

Crude Price

High

24

FPSO - Lease OperationBefore Financial Crisis – Win-Win- Financial Support from Investor- Raising Oil Price- Technical maturity – lower barrier for new comer- Speculation FPSO fleet

After Financial Crisis- Conservative investor- Lower Oil Price- High Fuel Cost/High Wage

25

FPSO Ordered and Crude Oil PriceFPSO O rde red / C rude O il Pric e

02468

1012141618201997/9

1998/9

1999/9

2000/9

2001/9

2002/9

2003/9

2004/9

2005/9

2006/9

2007/9

2008/9

0

2 0

40

60

80

100

120

140FPSO O rde red

Crude O il Pric e

26

Re-deployment Project

Timing

Compatibility of Facility

Depreciation of CAPEX

27

Short Term IssuesFPSO Operation

- Increased fuel cost- Higher wage

- Aging of operator- Lack of resources- Impact to quality of operation (HSE)- Industrial-wide recruit and training program

Long Term Issues

28

Operation - Complement

0 10 20 30 40 50 60 70 80 90 100 110

Whakaaro pai

MO DEC Ven tu re 1

Mode c Ve n tu re 1 1

Bu ffalo Ve n tu re

S tybarrow

Madie la

Ta'K u n tah

K ome K ribi

Baobab Ivo rie n MV10

Flum in e n se

Nan Hai S h e n g K ai

MV8 Lan gsa Ve n tu re

Path umabah a

Ran Don g MV12

V ie tso vpe tro 0 1

Ruby P rin c e ss

Cuu lo n g MV9

Nan Hai S h e n g L i

K akap Natu n a

Anoa Natu n a

Aus/NZ

SE Asia

Atlantic

29

0%20%40%60%80%100%

Australia

In donesia

Vie tnam

Thailand

Total20-29

30-39

40-49

50-59

60+

Demographics of Operating Crew

30

Thank You and Any Question?