Indonesia - Gajah Baru development update 23 June 2010 Forward - - PowerPoint PPT Presentation

23 June 2010 Indonesia - Gajah Baru development update

June 2010 | Page 1

Forward looking statements

This presentation may contain forward-looking statements and information that both represents management's current expectations or beliefs concerning future events and are subject to known and unknown risks and uncertainties. A number of factors could cause actual results, performance or events to differ materially from those expressed or implied by these forward-looking statements.

June 2010 | Page 2

Gajah Baru project update

Contents

• Natuna Sea Block A development overview
• Gajah Baru development
• Project Metrics
• Accomplishments and Key Achievements
• Key Dates and Overall Level 1 Schedule
• Execution highlights
• Project Graphics & Progress Photographs
• Project Management Team (PMT)
• Key Events for 2H 2010

June 2010 | Page 3

Natuna A Block development plan

Anoa / AGX Complex Gajah Baru Hub Domestic Gas Delivery – Batam (GSA3&4) International Gas Delivery – Singapore (GSA2) Gajah Puteri (future) Pelikan, Naga, Iguana & Bison (future)

June 2010 | Page 4

Gajah Baru development overview

June 2010 | Page 5

EPCI summary and split in scope of work

Engineer, Procure, Construct & Install (EPCI) Contract is a joint venture between Saipem* and SMOE

• Saipem responsible for:
• Engineering and procurement of materials and packaged equipment
• Load out, transportation and installation of all components
• SMOE responsible for:
• CPP Topsides, living quarters, flare boom & bridge
• Offshore hook-up of all components and pre-commissioning
• Nippon Steel Batam (NSB) responsible for:
• Wellhead Deck
• Wellhead Jacket, Piles & Conductors
• CPP Jacket & Piles
• Premier Oil responsible for commissioning with Contractor’s assistance

* Saipem consortium leader

June 2010 | Page 6

Project metrics

• Design Life – 20 years for Facilities, 50 Years for Pipeline
• Integrated Float-over Deck design, minimal Hook-Up
• Fabrication Durations
• CPP Topsides = 18 months
• Living Quarters = 13 months
• Component Weight
• CPP Topsides – 8,000 tonnes (including 800 tonne LQ module)
• Design Output
• 2 Turbocompressor packages supplied each with initially HP stage only and plinth for

future supplied LP stage – Initial HP stage sized to export MR at 1750 psia ( i.e. 2x100% versus MR).

– Between 2012 / 2015 LP Stage added to plinth and capacity of combined HP/LP train reduced to 50% of MR

• 1 No. Turbocompressor package supplied initially with both HP and LP stages and

train sized to export 50% of MR at 1750 psia from a suction pressure of 255 psia

June 2010 | Page 7

Key schedule dates

KEY MILESTONES CONTRACTUAL MILESTONES

2009 2010 2011

Install WHP Jacket & Deck 3Q Delivery of CPP Compressors 2Q Install Export Pipeline 2Q Install CPP Jacket & Deck 2Q Delivery of CPP Vessels 1Q 4Q 4Q 3Q FIRST GAS 01 Oct 2011 WHP Facility Ready for Drilling 01 Oct 2010 Mechanical Acceptance 15 Sep 2011

June 2010 | Page 8

Execution plan highlights

• Long Lead Item (LLI) procurement
• Premier pre-purchased and then transferred nine orders including WHP Steel and CPP Compressors and Generators

and large Pressure Vessels

• Initially bid project at peak steel price and an overheated market
• Re-bid as prices in excess of AFE limit, relaxed single yard requirement
• Revised final price ~US$ 100 million lower
• Managing delay of award of contract
• Maintained engineering with short listed bidders through final negotiations
• Close Government liaison on project approvals
• GOI maintains certification process, bi-annual work plan & budget reviews, quarterly progress meetings at yards
• Highest local content – new benchmark >30%
• Independent verification body audits underway
• Early installation of Wellhead Platform to allow early development drilling
• Premier has extensive experience working with NSB yard, viz.

– AGX Compression Platform (2000-2001) and West Lobe WHP (2005-2006) – Both facilities delivered and installed on schedule

June 2010 | Page 9

Execution plan highlights

• Export Pipeline Tie-In to WNTS
• To be undertaken to avoid interruption of gas export from Anoa
• PMT influenced EPCI contractors’ decision to proceed with Integrated Deck Float-over

design as opposed to conventional module design

• Maximizes onshore pre-commissioning and consequently greatly reduces offshore Hook-Up duration
• PMT actively involved in initial equipment layout concepts
• Including positioning of major pieces of equipment on Cellar and Mezzanine Decks
• PMT planning efforts have included the following:
• Sequence of equipment erection including early identification of critical pieces required to be delivered before stacking
• f deck panels
• Thorough reviews of planned construction and outfitting of Technical Buildings
• Providing assistance in defining pipe spool erection sequence on an area basis
• Premier stationed a Living Quarters specialist in Singapore to liaise with SM0E on 60 man

LQ design

• Also reviewed procurement recommendations and
• Ensured clash free interfaces between LQ and CPP Topsides

June 2010 | Page 10

Wellhead platform (WHP) 3D CADD model

Cellar Deck Main Deck Wellhead Control Panel Well Bay

June 2010 | Page 11

Wellhead platform (WHP) 3D CADD model

Well Bay Area (Plan) Well Bay Area (Elevation looking South)

June 2010 | Page 12

Gajah Baru – Wellhead platform (WHP)

Wellhead Deck ~800 tonnes Wellhead Jacket ~1,500 tonnes Piles & Conductors ~1,200 tonnes

June 2010 | Page 13

Gajah Baru – Central processing platform (CPP)

CPP Topsides - ~8,000 tonnes

• 3 x MAN Turbo Gas Compressors c/w Solar

Turbine drivers (GTCs)

• 2 x Solar Gas Turbine Generators (GTGs)
• 60 man Living Quarters
• Bridge linked to Wellhead Platform

Cellar Deck Main Deck Flare Boom Bridge to WHP GTGs GTCs ACHEs

June 2010 | Page 14

Gajah Baru – Central processing platform (CPP)

Main Deck frame (to be stacked on Cellar Deck July 2010) CPP Topsides ~8,000 tonnes Cellar Deck frame and support columns

June 2010 | Page 15

Gajah Baru – Central processing platform (CPP)

CPP Jacket ~4,800 tonnes Piles ~1,200 tonnes

June 2010 | Page 16

Gajah Baru – Central processing platform (CPP)

60 man living quarters

June 2010 | Page 17

Gajah Baru – Central processing platform (CPP)

60 man living quarters (~800 tonnes)

June 2010 | Page 18

Asian Hercules II heavy lift derrick barge

Lifting Capacity: 3,200 tonnes

June 2010 | Page 19

“West Callisto” drill rig in Keppel FELS, Singapore

June 2010 | Page 20

Jack-Up rig drilling through wellhead platform

June 2010 | Page 21

Onshore receiving facilities (ORF) modifications status

• COPI supervised FEED with PT. WorleyParsons Indonesia (WPI)

complete

• Long Lead Item (LLI) procurement orders ready to place
• Two sole source vendors, Cameron & Mokveld for various valve & control

requirements (on hold - pending to results of SDP discussion)

• EPCI Execution
• EPCI contract for the implementation of the ORF modification has been

awarded to Punj Lloyd

• Surveillance Plan
• Premier Oil has established a surveillance team to over view COPI progress,

cost control and schedule

June 2010 | Page 22

Incoming gas

June 2010 | Page 23

Overall ORF process facility

June 2010 | Page 24

Key events on Gajah Baru for 2H 2010

• Engineering will reach 90% in August
• Procurement
• All WHP equipment & materials to be delivered by end of June
• Majority of CPP major equipment will be delivered by July/August
• Fabrication
• WHP Jacket will load out in July and sail away early September
• WHP Deck will load out in August and sail away mid September
• CPP Jacket fabrication – start Elevation Panel assembly/erection 25 June
• CPP Topsides Main Deck stack 01 July
• Transport and stacking of 60 man LQ on 15 December
• Installation
• WHP Jacket installed 10 September and piled with conductors by 24 September
• WHP Deck installed and ready for drilling 30 September
• Drilling – West Callisto drill rig mobilizing to field in October
• Development drilling of five wells will take place over the monsoon season

June 2010 | Page 25 www.premier-oil.com

June 2010