COSL Drilling Europe AS Bringing new rigs to the North Sea By: Bjrn - PowerPoint PPT Presentation

COSL Drilling Europe AS Bringing new rigs to the North Sea By: Bjørn Angeltveit Venue: SEMTECH 2018

Agenda o COSL`s rig status & performance o Focus areas going forward

COSL Drilling Europe – Management Team Assistant to CEO – President/CEO – Jørgen Zhou Bingwen Arnesen HSE&Q Director – Kjetil CFO - Li Baozhong Andrew Tangen VP Marketing & R & HR Director – Contracts – Magnar Osvald Borgen Fagerbakke VP Operations – Lage VP Business Development – Nordby Bjørn Angeltveit 3

Accommodation units COSLRival COSLRigmar 4

Drilling units – midwater <750m (DP & mooring) COSLPioneer (2010) COSLInnovator (2011) COSLPromoter (2012) 3 x Exploration wells in 2011 – 2012 Re-Drilling of production wells on the Re-Drilling of production wells on the Water depth: 110 – 134,5m moored Troll field. Troll field. Water depth: 306 – 340 m - DP Water depth: 306 – 340 m - DP 1 x Production well in 2012 Water depth: 109 m - Moored Horizontal multi lateral wells with Horizontal multi lateral wells with intelligent completions. Horizontal X- intelligent completions 1 x Exploration well in 2012 Faroe mas trees Islands (West of Shetland) Horizontal X-mas trees Water depth: 460 m – DP COSLInnovator has been engaged in 12 COSLPromoter has been engaged in 20 9 x Production wells in 2012 - 2014 wells from 13.01.2012 to 30.12.2015. wells from 30.07.13 until present Water depth: 291 – 378 m moored Visund oilfield (FMC trees) Client: STATOIL, firm until 04-2021 Client: LUNDIN, Norway, from Feb. 18 Client: NEXEN, UK from April 18 5

Drilling unit – midwater / deepwater <1500m COSLProspector (2014) Design: GG 5000 design DNV-GL, 1A1 Column-Stabilized Drilling Unit (N) Clean, Ice (T), Winterized (Basic) DP 3 & mooring (POSMOOR ATA) Variable Deck Load 5000 mT 130 persons in single cabins Norsok S-002 for work environment Technical specifications based on «Statoil Standard Spec.» Light Ship Weight 26.000 mT Operational Displacement 40.700 mT Moonpool 24,2 x 7,2 meter (8,7 in Centre, retrac. rails) South China Sea Deckbox 69,5 x 83,6 m (W x L) Pontoons 105,4 x 16,5 x 10,05 (L x W x H) Client: CNOOC ROV moonpools 2 ea. 5,5 x 5,5 m 3 x Exploration wells in 2015 9 ea. Utility stations for 690/230 + 460 voltage. 60 Hz. +++++ Waterdepth: 1289 – 1368 – 1374 m Cementing unit (BJ Seahawk 1600 hp El, remote oper)- Installed LWD/MWD/ Directional drilling (BHI)- Prepared 2 x Exploration wells in 2017 Casing services- Prepared, Using Rig Hydraulic Ringline Waterdepth about 1200m Wireline logging- Prepared Well testing- Prepared Coiled tubing- Prepared At CCB, Norway, preparing for drilling a 120- Subsea completion- Prepared days well West of Shetland in June 2018 6

COSL rig status Rig-line COSL Drilling Europe AS 2018 2019 2020 2021 Rig Client Jan Feb Mar Apr MayJuneJuly Aug Sep Oct Nov Dec Jan Feb Mar Apr MayJuneJuly Aug Sep Oct Nov Dec Jan Feb Mar Apr MayJuneJuly Aug Sep Oct Nov Dec Jan Feb Mar Apr MayJuneJuly Aug Sep Oct Nov Dec COSLPioneer Nexen - UK CCB FIRM P&A COSLInnovator Lundin CCB 2 Wells 7 X 1 Well Options COSLPromoter Statoil-Troll 8 Years contract OPTIONS 1 x 8 Years COSLProspector TBA CCB 1 Well incl DST UK COSLRIVAL Warm lay-up Kristiansand COSLRIGMAR Warm lay-up Kristiansand 7

Personnel 2008 - 2018 2010 (Apr) COSLRival, COPNO 2011 (Aug) COSLPioneer, Statoil (Apr) COSLRigmar, COPNO (Apr) COSLRival to COPUK / BP (UK) 2012 Manning up for Innovator/Promoter 2013 (Jan) COSLInnovator, Statoil (Apr) COSLPromoter, Statoil 2014 (Nov) COSLRigmar, Hess (DK) 2015 (May) COSLProspector, CNOOC (CHN) (Aug) COSLPioneer, off contract (Sep) COSLRigmar, Maersk Oil (DK) 2016 (Mar) COSLInnovator, contract cancellation Onshore 69 (Forus, Mongstad, Aberdeen, Dalian) (Apr) COSLRigmar, off contract Offshore 483 (Management & Crew) (Apr) COSLProspector, off contract COSLPromoter - 159 � COSLInnovator - 141 � 2017 Maintaining crew for 2018 activities COSLPioneer 98 � COSLProspector - 46 � 2018 (Mar) COSLPioneer, Nexen UK Accommodation units – 9 (Feb) COSLInnovator, Lundin � Resource pool – 30 (May) COSLProspector, Nexn, UK � Manning per 28.02.18

Rig technical projects - optimized 2014 2015 2016 2017 2018 Contr. Contr. suspended Start COSLPioneer 5 yr cert. Suspension 04.01.16 Reactivate Slow SPS Lay-up (max 3 yrs) Wave Contr. incident Start COSLInnovator 5 yr cert. Rep 29.11.16 Reactivate SPS 5 yr cert. Lay-up (max 3 yrs) COSLPromoter 21.06.17 5 yr cert. SPS COSLProspector Ops. prep

Benefits of identical rigs COSLPioneer COSLPromoter COSLInnovator COSLProspector 10

Benefits of identical rigs COSLPioneer COSLPromoter COSLInnovator COSLProspector Standardizing operations Same drilling equipment & design � � Personnel - Identical competence requirements - ”One fits all” Experience transfer & common operating procedures � � Less spare part stock required Measure and compare performance � 11

Comparing rig performance � Identical rigs allow for performance comparison – optimizing results COSLInnovator COSLPromoter

What is Operating Performance? Total Well Delivery / $$$ for CLIENT = 1. No incidents Barrier control � Activities performed correctly � 2. Maximize Uptime Equipment uptime � Reduce Waiting Time � 3. Efficient operations Crew / Equipment performance � 3 rd party deliveries � Reduce flat spot activities � Consistency � 4. Measure and communicate results 13

Strong and consistent drilling performance COSLPioneer COSLPromoter COSLInnovator COSLProspector Statoil Rig of the month (COSLPromoter) Jan Feb Mar Apr Mai Jun Jul Aug Sep Okt Nov Des (5) (5) 2016 2017 SPS 14

Focus on performance

Focus areas going forward: o Operational performance focus o Rig technical project execution o Strengthening our market position (UK presence etc) o Integrated Rig Services o Digitalization 16

Integrated Rig Services will strengthen the drilling contracts position: Drilling Contractors Major Service Company o Schlumberger o Halliburton o BHGE Directional Drilling Cementing Drilling Unit Completions Fluids Mudlogging MWD…. Potential/to be included in contracts: o Casing Running (TRS) o Wireline/slickline/e-line unit o Manage Pressure Drilling o Downhole drilling tools (Jars etc) o ROV services o Cementing unit o Waste management o Mooring Services o Other….. 17

COSL Innovation Center INNOVATION@COSL.NO We cannot solve our problems with the same thinking we used when we created them. 18 Albert Einstein

Very conservative business within certain areas! 2017 � � � � 1970-1980 19

Very conservative business within certain areas! 2017 � � � � 1970-1980 20

…while other industries has changed dramatically 2017 � � � � 1970-1980 21

Reaching 50 million users 22

Digitalization in COSL Dedicated Innovation/Digitalization group since January 2017 working on optimizing work processes � Implementing � NOV MMC (facilitate for NOVOS) � Tablet EX-maintenance system � E-invoices & app-based approvals � Workplace by facebook � Planned � Electronic PTW system � Barrier monitoring tool (technical/administrative/competency) � Dashboard � Software upgrades (OCS, DM, Office, Rig Manager) 23

Top barriers to digitalization relate to people and culture! No, thanks! We have no time! 24

Thank you! INNOVATION@COSL.NO