first oil - Premier Oil

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towed out and installed along with the mid-water arches and gravity based structures. Tie-in of the. Catcher wells was a
FIRST OIL

December 2017

01

Catcher field partners

50%

(operator)

20%

20%

10%

Contents Foreword from Robin Allan, Director, North Sea and Exploration

02

Project Timeline

03

Catcher Development Overview

05

The Catcher Team

07

Integration Yard HSE

08

BW Catcher FPSO

09

Subsea Operations

11

Development Drilling

13

Premier Oil plc // Catcher Project

02

The making of Catcher Successful delivery of a full-cycle project As Operator of the Catcher Development in the North Sea, Premier Oil is delighted to have reached the milestone of first oil as scheduled and below budget. This is a significant achievement, not just for Premier Oil, but for our joint venture partners Cairn Energy, MOL and Dyas, for the UK, and for our contractors who have worked with us shoulder to shoulder from start to finish. I am particularly proud of my colleagues at Premier Oil, all of whom have worked tirelessly to reach this important milestone. I thank them and all those involved for their hard work, expertise and dedication to this project from discovery through to first oil. Catcher is another example of Premier Oil’s ability to deliver full cycle projects from exploration through to production and follows in the footsteps of Chim Sáo in Vietnam and Gajah Baru, Pelican and Naga in Indonesia.

The successful delivery of first oil on this Floating Production, Storage and Offloading (“FPSO”) vessel centred project demonstrates operational excellence and collaboration between joint venture partners, Government, and the supply chain in the UK and overseas. The development has been delivered at total capital investment of $1.6 billion, around 30% lower than the sanctioned estimate. First oil from Catcher also highlights that there is much remaining potential in the UK North Sea. Premier Oil, along with our joint venture partners, will continue to work with all stakeholders to maximise the value of the Catcher area for the benefit of our shareholders, our joint venture partners and the UK. Robin Allan Director, North Sea and Exploration

The history of the Catcher Development began with a successful exploration well in 2010. Following further exploration drilling and engineering studies, the development concept was formally agreed by partners in December 2013 and UK Government approval was received in June 2014.

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03

Project Timeline 2014

June UK Government approved Catcher Field Development Plan September Diver inspection of gas export tie-in

2015

January FPSO construction started June Catcher and Burgman templates installed July Development drilling activities started

2016

June Bundles installed July Riser and umbilical installation August Hull arrives at Keppel Benoi shipyard in Singapore August Module lifts commence November Last topsides module lift

2017

April Last heavy lift on to FPSO (Helideck) April FPSO naming ceremony in Singapore August 12th well completed August FPSO departed from Singapore October FPSO arrived in UK North Sea December First Oil from the Catcher area

2018

1Q Final commissioning of gas facilities and phased production ramp up 2Q Plateau production reached and gas export started Premier Oil plc // Catcher Project

04

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05

Catcher Development Overview The Catcher Development lies in the UK Central North Sea approximately 180 km off the North East coast of Scotland. The development comprises three separate fields which are Catcher, Burgman and Varadero. The reservoirs lie in a water depth of around 93 metres.

The Catcher Field was discovered in 2010 and further exploration drilling confirmed the presence of hydrocarbons at both Varadero and Burgman in 2011. Following the approval by the Catcher joint venture the field development plan was approved in 2014 by the UK Government. It is intended that the fields will be produced from 19 subsea wells.

Premier Oil plc // Catcher Project

These will be a combination of production and water injection wells tied back via subsea infrastructure to the newly built Catcher FPSO. In Phase 1 a total of 12 wells have already been drilled, completed and tied back to the FPSO. These will all be available for first oil. Phase 2 drilling is ongoing and will be completed in early 2019.

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The vessel owner BW Offshore awarded the hull, topsides and integration contracts to IHI, Dyna-Mac, ProFab, AOS and Keppel. The build of the FPSO commenced in Japan with first steel for the hull being cut in January 2015. In August 2016 the hull was towed to Singapore to Keppel’s Benoi shipyard for mating with the topsides equipment. Upon mechanical

completion in August 2017 the vessel was towed to the North Sea and installed on location in October. Following hook-up to the buoy and commissioning activities, first oil was achieved in December 2017 with the outturn costs being 29% lower than the sanction estimate.

Key facts Oil Processing Capacity

Gas Processing Capacity

Liquid Processing Capacity

bopd

mmscf/d

blpd

60,000

60

125,000

Water Injection

Storage Capacity

Gas Export to SEGAL

bwpd

barrels of oil

pipeline

125,000

650,000

via 63 km

Total Reserves

Wells

Topsides Weight (dry/operating)

mmboe

up to 19 wells for full field development

metric tonnes

96

12 at first oil

13,400/16,600

Main contractors FPSO Construction

Christmas Trees & Manifolds

Subsea Production Equipment

Development Drilling

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07

The Catcher Team

Catcher UK Project Team

The Catcher project was managed by a team spread across Asia, Europe and the United States of America. The project was centrally managed from Premier Oil’s Aberdeen office with satellite offices in Singapore and Japan. The core project team involved up to 80 people at different stages of the project. At the peak of the project there were 2,800 people per day working on the integration of the topsides and marine systems in Benoi. For the topsides in Dyna-Mac 1,700 people per day were employed and on the hull up 1,800 people were engaged on a daily basis.

Catcher Offshore Wells Team on the Ensco 100 Rig Premier Oil plc // Catcher Project

Premier FPSO Team in Singapore

l-r: Craig Matthew (Catcher Development Manager 2016-2018) Tammie Sebire (Catcher Development Manager 2014-2016) Stuart Wheaton (UK Business Manager)

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Integration Yard HSE The integration phase saw the largest most complex part of the development come together over a period of 14 months. It required three different organisations (BW Offshore, IHI and Keppel) to effectively work together to establish an integrated safety management system. At the peak of the project over 2,800 people per day worked in the yard workshops, aboard the vessel, in design offices and support functions. Prior to the commencement of work at Benoi, a consistent clear message was developed through a combined HSE Charter. Regular consistent reinforcement of these principles was provided throughout, resulting in excellent project safety performance.

across the multiple worksites in addition to those delivered as standard by the site owners. On a weekly basis the entire workforce at Keppel would assemble for a mass toolbox talk covering key safety topics and any lessons learnt in the period, and those who exemplified best practice were recognised and rewarded. Safety walkrounds were performed on a weekly basis providing additional safety leadership. In terms of safety measures and statistics the project delivered an outstanding performance in Singapore. This combined and consistent approach to safety from PMO, BWO, IHI and the major construction contractors led by Keppel delivered an industry leading outcome for HSE on Catcher.

A ‘Catcher specific’ yard induction process was introduced to ensure consistency of application

Yard Safety Statistics Weekly site inspections

60 Mass toolbox talks

50 Joint Senior Management Safety Tours

27 Man hours completed with no lost time incidents

7,000,000 www.premier-oil.com

09

BW Catcher FPSO The BW Catcher FPSO will receive, process and store the crude oil from the Catcher area and export the associated gas to the SEGAL pipeline. The vessel is a new build FPSO which was commissioned by BW Offshore. The hull was built by IHI and the topsides constructed by Dyna-Mac in Singapore. Following mating of the hull and topsides in Keppel’s Benoi shipyard, the vessel was officially named in April 2017 by Mrs Josephine Teo, Senior Minister of State, Prime Minister’s Office, Ministry of Foreign Affairs & Ministry of Transport at a ceremony held in the Benoi shipyard in Singapore.

Key Facts

Premier Oil plc // Catcher Project

Length

240.9 metres

Breadth

50 metres

Height

27 metres

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The vessel left Singapore in August 2017 arriving at Global Energy’s Nigg quayside in October 2017. A total of 7 million man hours were required to integrate the FPSO in Singapore. On 18th October 2017 the vessel arrived on location in Block 28/9a in the Central North Sea and proceeded to pull in the submerged turret production buoy. The risers and umbilicals required to produce the reservoir fluids and export the produced gas were pulled in and permanently hung off inside the turret by the end of October. Successful commissioning activities during November and December resulted in the start-up of the Catcher Field in December 2017.

Crude Oil Storage

650,000 barrels

Hull construction

Double hulled and bottomed

Accommodation

120 people

No. of risers/ umbilicals

13

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11

Subsea Operations The subsea installation campaign, undertaken by Subsea 7, has taken place over 3 years. It commenced in 2014 with divers testing the tie-in point to SEGAL and in 2015 the gas export line was laid and the first drilling templates for Catcher and Burgman were installed. In 2016 the three pipeline bundles which connect the fields to their respective riser bases, were towed out and installed along with the mid-water arches and gravity based structures. Tie-in of the Catcher wells was also completed together with the installation of the umbilicals and risers. At the end of 2016 the risers were pulled into the submerged turret buoy. In 2017 the Burgman and Varadero wells were tied-in to their manifolds ahead of the arrival of the FPSO. The subsea vessels have more recently been involved in the commissioning of the subsea systems since the arrival of the FPSO in the field.

Premier Oil plc // Catcher Project

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Key Facts

Water Depth

90 metres Risers

10

Umbilicals

3 Drilling templates

6 Manifolds

3 Bundles

3

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13

Development Drilling The Catcher area reservoir is made up two main sands. The deeper, Cromarty, reservoir is the source of the sands for the Tay injectite reservoirs. These sands were injected during the dewatering of the overlying shale millions of years ago. To effectively develop these reservoirs the development wells have been drilled using a technique known as geosteering. Premier’s team has been assisted in this endeavour by the use of a drilling tool called Geosphere© which has been developed by Schlumberger. This allowed for the precise placement of wells using all available information which was integrated together in real-time while drilling. The data from Geosphere© which can determine rock properties up to 60 feet away, provided information that enabled the team to steer the well optimally in the reservoir to find the oil and gas. The wells have proven to be very successful in encountering the required sand quantity and

Key Facts Phase 1 Wells Catcher: 2 producers & 2 injectors Varadero: 3 producers & 1 injector Burgman: 3 producers & 1 injector Phase 2 Wells Catcher: 4 producers Varadero: 1 producer Burgman: 2 producers Phase 1 Drilling Net pay: 16,000 feet Tons of gravel pumped: 258 Total distance drilled: 33,429 metres Premier Oil plc // Catcher Project

quality in the reservoir, which has been found to be above the predictions made at the time of sanction. The wells are completed using a technique known as gravel packing. This method ensures that the loose sand encountered in the wells is prevented from being produced back to the FPSO, with the gravel acting as a sieve when fluids flow from the reservoir into the wellbore. Twelve Phase 1 wells have been drilled, completed and tested. These are now tied into the FPSO via the manifolds and subsea pipelines and have been handed over to operations to achieve first oil. The drilling of these wells has been undertaken by the Ensco 100 jack-up drilling rig. Initial production is from the Catcher Field. The production rates will be ramped up to 60,000 bopd by adding production from Varadero and then followed by Burgman, reaching peak rates during the first half of 2018.

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Burgman B2 pre-drill seismic well plan showing possible different trajectories dependent on precise reservoir depth uncertain before drilling

First reliable geosteering station Decision points on setting 9 5/8” casing Key Decision points in geosteering the well

Geosphere plot with Burgman B2 well data

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Head Office Premier Oil plc 23 Lower Belgrave Street London SW1W 0NR Tel: +44 (0)20 7730 1111 Email: [email protected] Registered Office Premier Oil plc 4th Floor Saltire Court 20 Castle Terrace Edinburgh EH1 2EN Registered No. SC234781

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