Ecosse Subsea Systems. Cost Effective Pipeline Fabrication and Lay in Remote Locations. Australia Oil and Gas Exhibiton and Conference 2015

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1 Ecosse Subsea Systems Cost Effective Pipeline Fabrication and Lay in Remote Locations Australia Oil and Gas Exhibiton and Conference 2015

2 Presentation Overview Typical Pipelay Operations ESS s alternative pipelay philosophy Fabrication and Storage Lay Operations What this means for Operators

3 Typical Pipelay Operations Pipelay is typically conducted from specialist, heavy construction vessels or Pipelay Barges using J or S Lay. Pipes are fabricated in stalks of up to 4km at Tier 1 Contractor owned and operated spoolbases located around the world such as Evanton, Wick and Mobile. These spoolbases are not local to the work location and availability comes at a premium. As spooling operations can only be progressed in 4km steps, this leads to expensive dead-time where the vessel is on hire but not achieving meaningful work or is in transit to site. This is not sustainable long-term.

4 ESS Alternatively Pipelay Philosophy ESS understand the concerns of the Pipeline Owners around the current risks and cost associated with pipelay. ESS innovative technologies follow the same principles: safe, simple, robust and cost-effective: If a modular spoolbase can be constructed, following these principles, near to the pipeline location, owned by the Operator or Pipeline Owner, the scheduling risks are significantly reduced and windows of opportunity widened. If this can be coupled with a modular lay system that can be run by a greatly reduced crew off of almost any vessel of opportunity, the combined cost and time savings can be revolutionary. ESS have patented two technologies that fulfil both of these criteria: Olympic Spoolbase and PREP.

5 Fabrication and Storage Olympic Spoolbase (OS) is a patented modular system designed to harness the elastic property of pipelines and so is independent of linearity. The system allows longer stalks of pipe to be pre-fabricated and stored in a cassette-type arrangement well in advance of vessel arrival. These longer lengths are conducive to a much shorter spooling time and decreasing the standby cost of the vessel overall. The system supports reeled lay and bundle tow and can be set up in almost any nearshore location. Successfully trialled in Oklahoma by CRC Evans in 2009.

6 ESS Olympic Spoolbase Trials

7 ESS Alternative Pipelay Operations ESS also holds a patent for PREP: Plastic Reeled, Elastic Pipelay system. PREP further exploits the inherent elastic properties of the pipe, replicating the sag bend between the top tensioner and the bottom tensioner. This reduces the number of strain cycles in the pipeline, increasing integrity and allowing a lower grade of pipe to be used. PREP is fully modular and follows the ESS principle of rapid mobilisation onto most spot market AHTS or larger PSV s. PREP has been specifically designed to be supported by a crew of persons.

8 PREP Configurations: Deep and Shallow Lay

9 What does this mean for Operators? Freedom of availability allows Operators to optimise their own schedules. Location is selected to reduce transit times to and from spoolbase/field. Modular design of OS allows for wide range of pipeline lengths, diameters and coatings to be accommodated. Wide vessel choice to support PREP allows selection of vessel from local spot market, with a reduced mobilisation fee and reduced day rate. Spooling time is greatly reduced, again reducing significant mobilisation costs as all welding can be completed in advance. These factors combine to greatly reduce the financial and operational risks and costs of the pipelay operation, returning control to the Pipeline Owner and Operator.

10 Thank You Mike Wilson Managing Director Ecosse Subsea Systems Ltd

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