Valhall Redevelopment Project VRD Contractor Engagement Road Shows

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Valhall Redevelopment Project (VRD)Contractor
Engagement Road Shows

• 7 11 November 2005

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Contents

• BP Norge Introduction
• VRD Project Introduction
• VRD Project Contracting Strategy
• Wood Group Overview
• Achilles Joint Qualification System

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BP Norge Introduction
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Key facts about the BP Group

• 103 000 employees in more than 100 countries
• Production 4,1 million boe/d) per 2005 (2Q 05)
• Group turn over 285,059 million
• Reserves replacement ratio over 100 every year
  since 1994
• Many new developments across the world

2004
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Key facts about BP in Norway

• 552 employees
• Production 84000 boe/d , BP net
• Turn over NOK. 7.3 billion ( 1.2 billion)
• Profit NOK. 1.3 billion ( 0,2 billion)

Oslo
Stavanger

• 56 staff
• Turn over NOK 226 million

All figures by end of 2004
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Around NOK 25 billion to beinvested in Norway
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Our interests offshore Norway

• Partner in 18 licenses
• Operator of 12 of these
• Producing fields operated by BP Ula,Tambar,
  Valhall,Hod
• Partner in the Draugen field

core areas
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BP operated fields
Valhall
Hod
Tambar
Ula
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VRD Project HSE QDag Løfsgaard
loefsgd_at_bp.com 47 52 01 40 90
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VRD Q HSEGoals

• No injuries
• Risk of injuries and major accidents are
  controlled and minimized in all phases of the
  Project
• A best possible working environment minimizing
  platform personnel exposure to working
  environment risks
• Minimum discharges to air and sea during normal
  operation

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VRD Q HSEWhat do we look for?

• Clear expectations set to everyone involved at
  all levels of the organization
• Focus on technical integrity and quality in all
  phases of the Project
• Implemented systems for hazard identification and
  risk management
• Willingness to share information about incidents
• Lessons learned form incidents are actively used
  to improve performance
• A culture where safety interventions are valued

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VRD Q HSEHigh Level Requirements

• General
• Norwegian regulations and Norsok are minimum
  requirements
• HSE
• Strong focus on HSE Performance
• Openness to HSE initiatives from BP
• HSE Evaluation of Contractors (Norsok S-006)
• Quality
• Quality Assurance Systems according to ISO 9001

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VRD Project TechnicalDag Løfsgaard
loefsgd_at_bp.com 47 52 01 40 90
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Valhall Subsidence
5.3m subsidence Air Gap!
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Valhall Redevelopment VRD

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VRD Selected Concept New Production Hotel (PH)
New Facility Design Life 40 years Hotel 150
single bed cabins Oil production capacity 150
mbopd Gas handling capacity 5 million
Sm³/day Total liquid capacity 250 mbpd (oil
water) Design (Dry) Weight 11,000 tonnes
(topsides process/utility) 1,700 tonnes
(hotel module) 5,000 tonnes
(jacket) Power from Shore 292
km DC cable from Southern Norway Oil
Export Provision for future offshore
loading/EOR
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VRD Topsides Equipment Primary Attributes

• Large single train Oil Gas processing system
• process conditions are well understood (20 years
  operation)
• NGL recovery export
• Solids recovery, processing injection
• Utility systems
• No Drilling Unit or Offshore Power Generation
• Utilisation of retained equipment on IP/WP
• - produced water clean up - water injection
  system
• - air compressors - seawater treatment
• - gas metering

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VRD - Install a power from shore solution

• System to deliver
• 78 MW on the platform to allow delivery of 150mbd
  / 175mmscf/d capacity, offshore loading and EOR
• Main Components
• Onshore Power Supply connect to national power
  grid
• HVDC Converter stations onshore and offshore
  ABB supply
• HVDC Power cable (plus Fiber Optic Cable)
  Nexans supply
• Platform HVDC converter station module
  fabrication contractor - TBD

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VRD Fabrication Strategy

• Complete skid design before fabrication begins
• Skid based methodology 30 to 50 skids
• High proportion of bulks in skids, from a common
  source
• Skids may range in size from 5 tonnes to 800
  tonnes
• Main fabricator erects steel integrates skids
• All facilities will meet or exceed NORSOK
  standards

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VRD Topsides Execution Methodology

• What exactly is a Skidor Pre-Assembled Unit
  (PAU)?

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Test Separator Skid Skid Base
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Test Separator Skid Test Separator Installed
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Test Separator Skid Upper Level and Heater
Installed
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Test Separator Skid Grating and Pipe Supports
Installed
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Test Separator Skid Piping Installed
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Test Separator Skid Instrument/Electrical
Installed
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Test Separator Skid Complete
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Topsides Execution Methodology

• How is the deck constructed and the Skids
  integrated?

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Cellar Deck
Cellar Deck Pancake
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Cellar Deck with Single Skid Added
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Cellar Deck with Multiple Skids Added
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Completed Deck with Power Module LQ
Power Module
Bridges to/from IP
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VRD Contracting StrategyGraeme Hall
hallgr_at_bp.com 47 52 01 33 70
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VRD Design and Execute Strategy

• Template design and skid package build philosophy
  imported from GoM.
• Strategy used successfully on BP Clair.
• Design engineering in one place.
• Designs to 100 AFC status.
• Fabricators and suppliers focus on build, test
  and deliver.

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VRD Contract Strategy 1

• Safe, intelligent, maintenance free and remotely
  operated facility
• FEED contract with optional Engineering
  Procurement and Construction Management (EPcma)
  services.
• Control and Power from Shore providers integrated
  into FEED team
• Contract for control/SAS system awarded in
  parallel to the FEED contract
• Engineering contract includes procurement of
  critical equipment, integration with existing
  facilities and provision of construction
  management services
• Procurement of critical equipment will be to BP
  standards and Company provided to fabricators

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VRD Contract Strategy 2

• Fabrication contracts will be awarded for
• Jacket
• Process Utility Skid Packages
• Deck including installation and hook-up of skids
• Living Quarters
• PFS Module
• Separate contracts for
• Brown-field modifications to existing facilities
• Offshore installation of jacket, topsides and
  living quarters
• Tie-in of subsea pipelines
• BP will be manage commissioning and start up
  activities with resources provided by onshore
  deck fabricator engineering contractor
• More than 130 contracts in total
• ITTs issued from Houston Stavanger

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How to become a supplier to BP Norway

• Identify and connect with customer (BP end user)
• Registered in Achilles as approved supplier with
  updated info
• HSE - Self assesment (NORSOK S-006)
• Products/Services
• Contact details
• Meet minimum HSEQ Req.
• HSEQ System and Processes
• HSE Performance
• HSE matters for allocation of work!

We will not find you if your capabilities are not
registered!
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What we look for in a supplier

• Leadership in HSE
  .
• Documented Track Record of Capabilities
• The right Products / Services
• Life Cycle Costs 40 year field life
• Execution Ability
• Quality and delivery of vendor data
• Desired Attributes
• Better use of technology
• Improved Ops Efficiency
• Value Creation
• Innovative, Creative, Proactive
• Willing to Share Ideas

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Valhall Redevelopment Prelim Schedule
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Wood Group PresentationGordon Stirling
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Achilles Joint Qualification SystemAtle Gjertsen
atle.gjertsen_at_achilles.com 47 51 71 86 66
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Who and Where?

• www.bp.no
• .
• Ewan Drummond Project Director
• Chris Ruthven Topsides Manager
• Terje Iversen Operations Manager
• Graeme Hall Project Services Manager
• Simon Bateson Snr Supply Chain Analyst
• Judith Emms Snr Supply Chain Analyst
• Mark Frary Mustang Procurement Manager
• Gloria Thorarensen Project Administration
• Gorden Stirling Wood Group
• Atle Gjertsen Achilles
• Heather Jack
• Terje Aasen