Weekly Sales Update

WFS Technologies Subsea Internet of Things

February 2017

Timetable13:30 Registration & Coffee13:45Introductions & safety14:00Subsea Internet of Things14:15Demonstrations15:00Discussions15:30Depart

Introduction to WFS TechnologiesFounded Edinburgh, Scotland in 2003LocationsHead office Edinburgh, ScotlandSales/Projects offices in Houston, SE AsiaWorld leader in radio based subsea wireless automationSeatooth radio technology developed in-house>200 man-years of research >40 US patents granted>7000 Seatooth products delivered since launch in 2008WFS Oil & GasProduction optimisation solutionsAsset integrity monitoring solutionsInterventionWFS DefenseDiver wireless Personal Area Networks (wPAN)AUV comms and dockingSeatooth Wireless Network

WFS Headquarters Edinburgh, Scotland

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WFS Technologies- What is Subsea Internet of Things (SIoT)

Subsea Internet of Things: is a network of smart wireless sensors and devices configured to provide actionable operational intelligence such as performance, condition and diagnostic information.Subsea Internet of Things

What is the Subsea Internet of Things?- Smart DevicesMulti-parameter smart sensorAsset Integrity: Temp, UT, CP, Vibration, CrackFlow Assurance: Temp, Flow, VibrationHybrid comms: wired/wirelessIntelligent bandwidth managementLocal data processing low data densityLocal process model correction fog computingIntelligent power managementLocal power generation

Whats a smart subsea device?At the most basic level, smart devices are compact PLCs with multiple sensorsThe sensor package will change according to the requirement.Typical sensors will include temperature, corrosion, vibration, flow, strain, positionThe device has data storage and onboard algorithms to run basic control and data processingIf the device is wireless, it will have power management technology and perhaps even local power generationBut Smart devices will also have local computing to run data analytics, matching the long term performance of the process plant against predictive models: fatigue, corrosion, flow. It will use this information to characterise the process or equipment and correct the In IoT jargon, these are called Fog nodes5

Reducing Offshore CostsWhy are offshore costs so high?Low levels of automation - production and inspectionHigh cost of interventionOver-designLow extraction efficiency

How Subsea Internet of Things Drives down CostsIncrease production efficiencyReduce inspection costsExtend asset lifeLower field extension costsLower green field CAPEX/OPEX

Source: WSJ, Apr 16 http://graphics.wsj.com/oil-barrel-breakdown/Capital CostsProduction Costs

Demonstrations- Seatooth HybridImpact of water quality on wireless performance

Battery LifeOptimum operating environment of wireless technologies

Radio is not supposed to communicate through water. To an extent, this is true.But light, which is another part of the EM spectrum does go through waterThe attenuation of radio waves in water is pretty aggressive about 55dB/lambda. A practical subsea radio system will communicate over around 2 lambda. So driving down the frequency increases range. The trade-off is bandwidth which reduces with frequencyBut radio also propagates through the water-air boundary and through the seabed.A radio signal will find the path of least resistance. So if a radio is placed near the seabed, the range is extended The attached chart shows the bandwidth/range tradeoff for practical subsea radios7

Subsea Internet of Things- Smart Communications Seatooth Hybrid: Integrated radio, acoustic, opticalAuto channel selectionBattery life: up to 20 years BenefitsSingle solution for all operating environmentsApplicationsAsset integrity managementProduction optimisationGreen field CAPEX/OPEX reduction

Subsea Internet of Things- Asset Integrity AutomationSeatooth PipeLogger-CPIntegrated CP & temperatureLocal data processing Optional: corrosion model correctionBenefitsReduce asset integrity costs: Avoid DSV/ROV spread costsIncrease safetyImproved quality of dataImproved repeatabilityIncreased quantityApplicationsLife extensionReduce CAPEX on green field

Subsea Internet of Things- Wireless Process Automation in complex environments Seatooth WIPS Yokogawa pressure sensorDatalogger/DisplaySeatooth radioBattery: up to 20 yearsBenefitsAutomation without connectors/jumpersIncreased reliability, reduced costOperates in most challenging environmentsApplicationsLife of field extensionGreen field Commissioning

Subsea Internet of Things- Autonomous vehicle data harvesting

Wireless SCADA through water-airDrone-to-ROV 2-way commsDrone-to-subsea sensor networkBenefitsResilient wireless commsLow cost, flexible automation Subsea & buried integrity management using drones ApplicationsAsset integrity management in water & buriedFlow assurance/production optimisationhttps://youtu.be/NkDd25yDIWg

Subsea Internet of Things- Wireless power and data transfer

Seatooth ConnectWireless data+power10Mbps + 100WBenefitsIncreased reliabilityReduced cost: deployable by light class ROV/AUVReduced risk of damage during installationOperational flexibilityApplicationsTurret disconnectsSlip rings AUV docking/recharging

S400 housing with inclinometerMain support beamProfiled sectionAntenna housingS400 support StrutSubsea Internet of Things- Automated Integrity Management

Extend wireless SCADA through splash zoneCompatible will most standard IM sensorsACFM, CP, AO, Vibration, UT Smart Clamps minimise cost of ownershipDeployed by light class ROVMinimal ROV toolingSelf-monitoringStrain sensorsInclinometer

Asset Integrity Solutions- Subsea Crack Management (ACFM)Cracks measured using ACFM probesToday data harvested by diver or ROVSingle data point every 1-3 yearsWFS solution Smart sensor takes reading weekly/monthlyImproved repeatability/reliabilityData harvested wirelessly through water/airBenefitsReduced OPEXImproved quality of informationImproved safetyPayback typically < 1 year

Enhanced Subsea Control Solutions- Hybrid Production ControlReduced CAPEX lower electrical load, reduced installation cost Increased reliability fewer connectors and jumpersIncreased flexibility futureproof control system expansion

Selected References- Oil & Gas/Asset IntegrityDate InstalledOperator/FieldCountrySolutionSensor MakeMeasured ParameterOperational History2013Woodside, N ShelfAustraliaPacking valve video monitoringBowtechVideoUsed during IRM campaign 2014EnQuest, Don SouthwestUKExport line temperatue monitoringRTDTemperatureDeployed under concrete blanket2014Talisman/RepsolUKFlowline upheaval buckling monitoringRTDTemperature20 systems supplied for deployment across UK assets2015Apache, John BrooksAustraliaExport line temperatue monitoringRTDTemperatureSystem installed Oct 152015Petrobras, Santos BasinBrazilCoiled Tubing fatigue monitoringStrainstall, InvensenseStrain, acceleration10 x system deployments Aug - Dec 152015Total, Laggan TormoreUKVideo monitoring of constructionBowtechVideodeployed 3 times furing 20152015Taqa, N CormorantUKCorrosion monitoring networkVoltage Network of 14 nodes2015JAMSTECJapanFlow monitoringFlowQualification trials completed 4Q162015Shell, MalampayaPhilippinesRock dumping monitoringGEPressure Use during commissioning 2016DRDCCanadaSubmarine corrosion monitoringStorkVoltage, CurrentDeployed Oct 162016Quadrant Energy, John BrooksAustraliaExport line temperatue monitoringRTDTemperatureSystem upgrade Dec 162017Shell, ShearwaterUKMonitoringBowtechVideoWireless network; Target commission 2H172017BP/SD2, AzerbijanPipeline Pre-commissioning automationYokogawaPressure, TemperatureTarget commission 2Q172017APO FieldsNigeriaExport line temperatue monitoringRTDTemperatureCommissioned Feb 17

Timetable13:30 Registration & Coffee13:45Introductions & safety14:00Subsea Internet of Things14:15Demonstrations15:00Discussions15:30Depart

DiscussionReducing inspection costs Increasing production through automationThe digital oilfield Internet of ThingsCompliance Operational efficiencySubsea data density

Special Thanks to Delta Subsea

Seatronics

CA Richards

Brendan HylandWFS TechnologiesT: +44 845 862 1560M: +44 78 010 63450Brendan@wfs-tech.com

Christopher CurranWFS TechnologiesM: +1 (832) 858-2732Chris.Curran@wfs-tech.com