Remote Hot-tap on Åsgard - First Remote Retrofit Hot-tap operation Kjell Edvard Apeland Project Leader Pipeline Tie-in & Repair Statoil ASA kjedap@statoil.com www.statoil.com

Hot tapping – principle methodology First registered patent in 1909 by plumber O. H Netteberg of Drammen, Norway SO – WHAT’S NEW?... Source: www.furmanite.com

Subsea Hot-tap - Typical permanent works

Statoil’s focused technology efforts Leading in seismic imaging and interpretation – to increase discovery and recovery Step change in well-construction efficiency – to drill more cost-efficient wells Pushing reservoir characterisation and recovery to the next level – to maximise value Taking subsea longer, deeper and colder – to accelerate and increase production

Statoil Strategy - Remote hot tap technology Statoil PRS Pool - Haugesund - Norway Emergency preparedness Pool for subsea pipelines Founded in 1987 First Diver assisted Hot-tap in 1997 First Pre-installed Hot-tap tees installed with Statoil operated pipelines mid 1990’s Initiated Remote Hot-tap development in 1999 Phase 1: Remote cutting system Phase 2: Retrofit Tee technology

Statoil Strategy - Remote hot tap technology Objective: Remote operation / deep water application / high safety standard Why important to develop subsea hot tap technology? Provide full flexibility/independence when selecting tie-in location - cost effectiveness - utilize spare transport capacity in pipeline systems Ensure distinct technology development in due time to capture business opportunities Goals: Increased safety Reduced cost for future infrastructure development Increased depth and pressure capability Offshore training of PRS personnel – improved emergency preparedness for pipeline repair

Statoil Strategy - Remote hot tap technology Creating business opportunities Gas infrastructure Re-inforcement 2016 Åsgard SCP 2012 265 m Ormen Lange x 2 2009 860 m Retrofit Tee hot tap Tampen Link 2008 145 m Gullfaks 2000 Remote hot tapping Jotun 1997 Diver assisted hot tap 7 7

Qualification Program Outline & Timescale Development milestones 1999: Strategic development project initiated at Statoil PRS 2008: Deep water testing to 145 m water depth, first and successful offshore operation, 145 m water depth at Tampen Link, Statfjord 2009: Deep water testing to 940 m water depth in Sognefjorden, World’s deepest remote hot taps (2 off) at 860 m water depth at Ormen Lange field 2011: Deep water testing of Remote Tee Welding Tool to 350 m water depth 2012: Deep water testing and First offshore use of the Retrofit Tee Technology at 255 m water depth: – Åsgard Subsea Compression

Remote Welded Retrofit Tee concept Remote installation of a structural reinforcement clamp containing the branch pipe Pressure barrier made by internal weld inside the branch pipe Welding system contains all functions for making and monitoring the internal weld

Remote Welded Retrofit Tee concept Retrofit Tee Weld Development & Test Program API 5L X65 insert pipe with 5mm Inconel 625 cladding Cooling pipes Inconel – Alloy 59 welding consumeable Mock-up for hyperbaric testing in chamber API 5L X65 mother In total 9 years of hyperbaric welding qualification 2,5 years Åsgard application targeted qualification 6 pass GMAW /MIG fillet weld 22 minutes of arc-on time required to perform the offshore welding

Remote Welded Retrofit Tee Installation Equipment Installation Equipment Retrofit Tee Installation Tool Pipe Handling Frame as carrier for the Tee installation module Tool weight ~35 Te Tee weight for Åsgard ~4 Te Maximum Tee Weight 30 Te Depth rating: 1000 m Upgradeable to at least: 2000 m

Remote Welded Retrofit Tee Installation Equipment Installation Equipment Remote Tee Welding Tool Branch size: 12 inch Tool weight: 17 Te Launching system including Active heave compensation and AHC/CT guide wire winches Integrated umbilical for lifting, power, gas and control Depth rating: 1000 m Upgradeable to at least: 2000 m

Deep Water Trials Sognefjorden 2011 Remote Tee Welding Tool tested to 350 m water depth March 2011 Test umbilical used Software and quality monitoring not completed Produced 2 complete 6 pass welds with excellent results!

Deep Water Trials Nedstrandsfjorden 2012 Performed landing towards test/mock-up pipeline on sea-bed (270 msw) Software and quality monitoring finalised and successfully used Problems related to jammed rotation occured during weld number 3 – recoverd, repaired and successfully completed the subsea welding Produced 4 complete 6 pass welds with excellent results! Launching RTWT in Nedstrandsfjorden The activated and welded Tee recovered to the vessel deck

Åsgard SCP hot tap campaign 2012 Offshore Installation Åsgard Field 2012 Åsgard SCP hot tap campaign 2012 Involved vessel: Skandi Arctic Mobilised 10. of August 2012 Demobilised 11. of Sept 2012 The newly qualified equipment performed 100% Vessel including tools and organisation performed 100% All offshore works successfully completed a few hours ahead of schedule

Offshore Installation video Video clip from offshore

Conclusions Future potential The new Remote Welded Retrofit Hot-tap Tee technology has been successfully qualified and field proven Remote Hot-tap technology provides the most flexible tie-in solution avoiding shut down of transport systems Large cost savings can be expected by the implementation of this technology, essential for marginal fields Enabling sales to new markets by use of existing infrastructure (subsea and onshore facilities) Hot-tap enables re-use or shared use of existing risers, useful where all riser slots/J-tubes are occupied Future potential

Conclusions Hot tap connections – the most flexible development methodology in the future Optimised pipeline routing Avoiding shut-down of critical transport system Improved operational characteristics Enabling new field developments and increased IOR

Acknowledgements The authors acknowledge the invaluable contribution of all the Åsgard Subsea Compression project team and the Åsgard Lisence partners: Statoil acknowledge the vital contributions from the main contractors for the successful Remote Hot-tap testing and operation:

Åsgard Subsea Compression Hot-tap Kjell Edvard Apeland kjedap@statoil.com Tel: +4790603869 www.statoil.com 2013-03-05