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

• COSL`s rig status & performance
• Focus areas going forward

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COSL Drilling Europe – Management Team

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

Accommodation units

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COSLRival COSLRigmar

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Drilling units – midwater <750m (DP & mooring)

COSLPioneer (2010) COSLPromoter (2012) COSLInnovator (2011)

Re-Drilling of production wells on the Troll field.

Water depth: 306 – 340 m - DP

Horizontal multi lateral wells with intelligent completions. Horizontal X- mas trees COSLInnovator has been engaged in 12 wells from 13.01.2012 to 30.12.2015. Client: LUNDIN, Norway, from Feb. 18 Re-Drilling of production wells on the Troll field.

Water depth: 306 – 340 m - DP

Horizontal multi lateral wells with intelligent completions Horizontal X-mas trees COSLPromoter has been engaged in 20 wells from 30.07.13 until present Client: STATOIL, firm until 04-2021 3 x Exploration wells in 2011 – 2012

Water depth: 110 – 134,5m moored

1 x Production well in 2012

Water depth: 109 m - Moored

1 x Exploration well in 2012 Faroe Islands (West of Shetland)

Water depth: 460 m – DP

9 x Production wells in 2012 - 2014

Water depth: 291 – 378 m moored Visund oilfield (FMC trees)

Client: NEXEN, UK from April 18

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Drilling unit – midwater / deepwater <1500m

COSLProspector (2014)

South China Sea Client: CNOOC 3 x Exploration wells in 2015 Waterdepth: 1289 – 1368 – 1374 m 2 x Exploration wells in 2017 Waterdepth about 1200m At CCB, Norway, preparing for drilling a 120- days well West of Shetland in June 2018 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 9 ea. Utility stations for 690/230 + 460 voltage. 60 Hz. +++++ Cementing unit (BJ Seahawk 1600 hp El, remote oper)- Installed LWD/MWD/ Directional drilling (BHI)- Prepared Casing services- Prepared, Using Rig Hydraulic Ringline Wireline logging- Prepared Well testing- Prepared Coiled tubing- Prepared Subsea completion- Prepared 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) Deckbox 69,5 x 83,6 m (W x L) Pontoons 105,4 x 16,5 x 10,05 (L x W x H) ROV moonpools 2 ea. 5,5 x 5,5 m

COSL rig status

7 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 COSLInnovator Lundin CCB 7 X 1 Well Options COSLPromoter Statoil-Troll OPTIONS 1 x 8 Years COSLProspector TBA COSLRIVAL COSLRIGMAR CCB 2 Wells Warm lay-up Kristiansand Warm lay-up Kristiansand 1 Well incl DST UK CCB FIRM P&A 8 Years contract Rig-line COSL Drilling Europe AS 2018 2019 2020 2021

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 (Apr) COSLRigmar, off contract (Apr) COSLProspector, off contract 2017 Maintaining crew for 2018 activities 2018 (Mar) COSLPioneer, Nexen UK (Feb) COSLInnovator, Lundin

(May) COSLProspector, Nexn, UK

Onshore 69 (Forus, Mongstad, Aberdeen, Dalian) Offshore 483 (Management & Crew)

• COSLPromoter - 159
• COSLInnovator - 141
• COSLPioneer 98
• COSLProspector - 46
• Accommodation units – 9
• Resource pool – 30

Manning per 28.02.18

Rig technical projects - optimized

COSLPioneer COSLInnovator COSLPromoter 2014 2015 2016 2017 2018

Contr. suspended

04.01.16 29.11.16 21.06.17

Wave incident Contr. Start

Rep 5 yr cert. Suspension Lay-up (max 3 yrs) Slow SPS 5 yr cert. Lay-up (max 3 yrs) Reactivate Reactivate 5 yr cert. 5 yr cert. SPS SPS

Contr. Start

• Ops. prep

COSLProspector

Benefits of identical rigs

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COSLPioneer COSLInnovator COSLPromoter COSLProspector

Benefits of identical rigs

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COSLPioneer COSLInnovator COSLPromoter COSLProspector

• 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

Standardizing operations

COSLInnovator COSLPromoter

Comparing rig performance

Identical rigs allow for performance comparison – optimizing results

What is Operating Performance?

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• 1. No incidents
• Barrier control
• Activities performed correctly
• 2. Maximize Uptime
• Equipment uptime
• Reduce Waiting Time
• 3. Efficient operations
• Crew / Equipment performance
• 3rd party deliveries
• Reduce flat spot activities
• Consistency
• 4. Measure and communicate results

Total Well Delivery / $$$ for CLIENT

=

Strong and consistent drilling performance

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COSLPioneer COSLInnovator COSLPromoter COSLProspector

Statoil Rig of the month (COSLPromoter)

Jan Feb Mar Apr Mai Jun Jul Aug Sep Okt Nov Des 2016 2017

(5) (5)

SPS

Focus on performance

Focus areas going forward:

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• Operational performance focus
• Rig technical project execution
• Strengthening our market position (UK presence etc)
• Integrated Rig Services
• Digitalization

Integrated Rig Services will strengthen the drilling contracts position:

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Drilling Unit

Directional Drilling Cementing Completions Fluids Mudlogging MWD….

Drilling Contractors

Major Service Company

• Schlumberger
• Halliburton
• BHGE

Potential/to be included in contracts:

• Casing Running (TRS)
• Wireline/slickline/e-line unit
• Manage Pressure Drilling
• Downhole drilling tools (Jars etc)
• ROV services
• Cementing unit
• Waste management
• Mooring Services
• Other…..

COSL Innovation Center

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INNOVATION@COSL.NO

We cannot solve our problems with the same thinking we used when we created them.

Albert Einstein

Very conservative business within certain areas!

1970-1980 2017

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Very conservative business within certain areas!

1970-1980 2017

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…while other industries has changed dramatically

1970-1980 2017

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Reaching 50 million users

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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)

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Top barriers to digitalization relate to people and culture!

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No, thanks! We have no time!

INNOVATION@COSL.NO

Thank you!