Subsea Light Well Intervention

Light Well Intervention World wide there are more than 6000 SS wells, and the number is growing. The recovery rate from SS wells is most often less than 40 % vs 50 – 60 % on dry wells. Increased Oils Recovery from SS wells by use of Light Well Intervention Vessels is extremely cost effective vs Semi Submersible Rigs.

Installation & Construction Strong growth in subsea wells drives demand for subsea services from advanced and versatile offshore vessels Development in global subsea wells Global subsea wells by customer (2014-2017) 700 679 550 530 650 638 618 500 600 583 450 550 519 500 400 462 452 450 432 416 350 400 374 300 350 318 311 250 300 206 250 200 156 200 150 139 134 124 150 100 90 100 64 58 58 50 50 20062006 20072007 20082008 20092009 20102010 20112011 20122012 2013e2013e 2014e2014e 2015e2015e 2016e2016e 2017e2017e PetrobrasPetrobras StatoilStatoil BP ShellShell TotalTotal ChevronChevron AnadarkoAnadarko ENIENI Exxon MobilExxon MobilExxon Mobil Premier OilPremier Oil Exploration Drilling Top hole drilling Installation & Construction Subsea & IMR Production IOR and IMR De-commissioning Plug & Abandonment Source: Quest Offshore Resources Inc. (November 2013)

Ageing Subsea fields need well intervention and maintenance Average age of producing subsea wells Subsea wells producing for more than 5 years 5,000 NWECS1: 11.8 years +9% 4,500 4,000 3,500 3,000 2,500 North America: 8.9 years 2,000 1,500 West Africa: 6.1 years 1,000 South East Asia: 11.2 years 500 Brazil: 11.2 years 20122012 2013e2013e 2014e2014e 2015e2015e 2016e2016e Exploration Drilling Top hole drilling Installation & Construction Subsea & IMR Production IOR and IMR De-commissioning Plug & Abandonment Source: Infield, 2014; Infield, 2013 1) Northwest Europe Continental Shelf

Background FMC`s Subsea Lubricator used on Regalia in 2003. 3 successful interventions Island Frontier delivered in 2004 Alliance between Island Offshore, FMC and Aker established in 2004 2005 Performed Well Intervention on Chevron Stathspey project Awarded the long term contact with Statoil (6+3 years) Intervention on two Nexen UK Wells 2006 awarded the BP contract 3 + 2 years for West of Shetland primarily, commencing May 2009

The Vessels Island Frontier Island Wellserver Island Performer Island Constructor Island Performer

Wireline Services Most common RLWI services Well integrity Caliper logging of wells Data collection (oil, water, gas) Mechanical repairs (e.g. DHSV replacement) Water shut off (plug setting) Zonal isolation (plug or straddle) Perforation - Re-perforation 8 8

Wireline Services Most common RLWI services Mechanical scale removal (milling) Mechanical hydrate removal (milling) X-mas tree interventions Tubing cutting –explosive or mechanical cutting Sand or debris removal Honing and refurbishing of seal areas Manipulation of sleeves and side pocket mandrels 9 9

Challenging work Vigdis C-5 Well Installation of Straddle to Isolate a non producing zone 280 m water depth Straddle length 53 m Well bore length 3850 m Depth at end of well 2250 m Horizontal climb 117 deg. Duration of job 45 days

Track Record More than 270 Light Well Interventions since 2005 More than 95 % of the jobs were successful Jobs lasting 10 – 45 days Increased revenues for clients – billions

Main focus from Authorities (PSA & NMD) To maintain barriers in every form Pressure control Technical barriers Human barriers System barriers Security Integrity

Division of Responsibility Client takes over responsibility when the tool-string enters the well IO resumes responsibility when the tool-string leaves the well Client is responsible for all cost related to damage to the well Client is responsible for all cost related to blow-outs or similar accidents All except for gross misconduct

People The LWI-segment employs more than 400 people in Island Offshore All recruited internally Operating as vessels Focus on cross-training and multi-skilling Retention rate 95 % High level of competence First class safety records Shore staff with engineering support

The future

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