GASTECH 2002

1. ene F shipyard GASTECH 2002 “GTL Offshore: The Marine Perspective” 13th- 16th OCTOBER 2002 Sheraton Hotel & Qatar International Exhibition Centre, Doha IZAR Abel Méndez, Joaquín López-Cortijo, Fernando Lago FW Steve Spicer, Simon C. Clarke

2. Foster Wheeler experience and capabilities • Considerable experience in gas processing • Technology optimisation • Studies • FEEDs • EPC • Project Management Consultancy • Executed FEEDs for • Sasol/Qatar Petroleum QGTL Project at Ras Laffan • Sasol/Chevron Nigeria Ltd EGTL Project at Escravos, Nigeria • Extensive feasibility study work over last six years • Onshore plants • Offshore plants - barge or ship mounted • Assistance with Starchem methanol technology • Engineering contractor for OTM Alliance • Supplier of SMR units and proven technology Gastech 2002 - GTL Offshore: The Marine Perspective

3. Agenda • The offshore gas debate • The challenge of offshore GTL • The way forward • IZAR/FW: potential contribution to GTL projects • Summary and conclusions Gastech 2002 - GTL Offshore: The Marine Perspective

4. The Offshore Gas Debate Gastech 2002 - GTL Offshore: The Marine Perspective

5. Offshore Associated Gas • Current FPSOs are targeted at oil production • Many deepwater fields have a large associated gas component • Associated gas has to be handled • Power generation - usually not for export • Re-injection - high cost, longer-term issues such as gas breakthrough • Flaring - generally not a long-term solution • Associated gas can be a valuable resource • However, can we afford to use it? Gastech 2002 - GTL Offshore: The Marine Perspective

6. Stranded gas utilisation alternatives Source: DEMO 2000, Statoil, Shell Gastech 2002 - GTL Offshore: The Marine Perspective

7. The gas-to-liquids solution • Physical processes • LNG • Chemical processes • Fischer-Tropsch, methanol and derivatives • Gas-to-liquids: a general term covering ..... A process that converts natural gas into a transportable form Gastech 2002 - GTL Offshore: The Marine Perspective

8. Physical Process New Terminal / Phase Change User T = Transport (Special) T = Transport (Normal) T Low Temp Fischer- Tropsch Hydro- Processing Gasoline / Naphtha T T T Middle Distillates T Existing Terminal Water Air Lubes / Waxes Steam O2 T Wellhead Pipeline Gas Processing Syngas Generation T Syncrude POX SMR ATR OTM/ITM GHR Hybrids Plasma High Temp Fischer- Tropsch Olefins Poly Conversion Poly-Olefins etc T HC Liquids Solids MTG MTO LPG Condensate Methanol (chem grade) T Methanol New Terminal Power T Large Scale Market DME New Terminal Diesel Substitute T Existing Infrastructure Other Chemical Routes New Terminal Chemicals T Gas utilisation options Gastech 2002 - GTL Offshore: The Marine Perspective

9. By- Products Natural Gas Liquid Products Syngas Production Product Workup Synthesis Power Steam Fuel Utilities Integration Offsites / Infrastructure The generic GTL chemical conversion flowscheme Gastech 2002 - GTL Offshore: The Marine Perspective

10. General GTL characteristics • Syngas production • Steam methane reforming - need to control H:CO ratio • Partial oxidation - oxygen fired or air blown • Autothermal reforming - combination of O2 and steam • Synthesis • Fixed bed vs slurry bed reactors • Product workup • Fischer-Tropsch - hydrocracking to diesel or hydrotreating to syncrude • Methanol - distillation • Methanol derivatives - further chemical conversion step e.g. to DME • By-products • Offgas disposal • Waste water • Infrastructure, offsites and utilities Gastech 2002 - GTL Offshore: The Marine Perspective

11. The Challenge of Offshore GTL Gastech 2002 - GTL Offshore: The Marine Perspective

12. Marine motion effects - process specific • Natural gas treatment • Liquid removal - standard FPSO application • Sulphur removal - absorption, not solvents • CO2 removal - economic, rather than technical, decision • Oxygen production • Safety implications - prime focus area • Most issues largely resolved • Syngas production • Gas phase process • Mechanical stress is only concern • Fischer-Tropsch synthesis • Impact dependent on reactor type - fixed bed vs slurry bed • Slurry bed - large vessels, heat removal via coils, liquid-liquid separation • Considerable challenges, but solutions available Source: IZAR FENE Gastech 2002 - GTL Offshore: The Marine Perspective

13. Marine motion effects • Product workup • No reactor impacts • Product quality issues • Unit not always required • Other units • Liquid inventory slopping • Mechanical stresses from movement • Tall columns • Air separation - able to tolerate variable quality O2 for short periods • Water treatment - impact on discharge quality • Product workup - significant impact on naphtha/diesel quality • General • Significant advances in internals design for motion effects • More work on seakeeping behaviour • Locate impacted equipment near centre of gravity • Passive and active motion reduction or compensation Source: GREENLAB Software - MARIN Gastech 2002 - GTL Offshore: The Marine Perspective

14. Safety • New safety challenges • Large process equipment - impact on ship stability and structural integrity • O2 production • Hazardous materials • High process temperatures and pressures • Fugitive emissions and leaks • Corrosion • Steam systems and rotating equipment • Other specific marine issues • Hull integrity • Deck sealing • Void spaces Gastech 2002 - GTL Offshore: The Marine Perspective

15. - Break - Launching of the EXMAR’s OFFSHORE FPSO ‘FARWAH’ IZAR FENE Shipyard 07-Oct-2002 Gastech 2002 - GTL Offshore: The Marine Perspective

16. Hull type alternatives Concrete Structure Steel Structure - Conversion - New built Gastech 2002 - GTL Offshore: The Marine Perspective

17. One single unit: ULFPS (Ultra Large Floating Production System) • Two Combined Units connected by an Articulated Arm: CFPSO (Combined Floating Production Storage and Offloading unit) Hull size For combined offshore production GAS + OIL two solutions are proposed: Gastech 2002 - GTL Offshore: The Marine Perspective

18. Reserve of Buoyancy - ILLC • Damaged Stability • Weight distribution (CoG) • Deck reinforcement • Individual Module Weight Compactness of design • High density of equipment is required • Special attention should be given to: Source: IZAR FENE • Footprint • Topsides Weight • Hull+Topsides Height Gastech 2002 - GTL Offshore: The Marine Perspective

19. Fabrication and Class Approval • Very complex projects (management, technical, fabrication, etc) • Require the combied effort of a number of representatives of the offhore industry (interfaces) Source: IZAR FENE • Limited number of shipyard due to the dimension of the units • Lack of specific regulations (a combination of existing ones should be used instead) • A special effort from Regulatory Bodies and Classification Societies is required Gastech 2002 - GTL Offshore: The Marine Perspective

20. The way forward Gastech 2002 - GTL Offshore: The Marine Perspective

21. Combined production GTL FPSOs • Appropriate for benign environmental conditions combined with large oil reserves • One single unit: ULFPSR • Working example for a West African field (GOR 700) • Oil production : 200,000BOPD / 2 MBBLS FPSOstorage capacity • GTL Production about 10,500 BPD (7,900 BPD Diesel and 2,600 BPD Naphtha. Net Gas Feed: 98 MMSCFD) • Two alternatives are proposed: • Two Combined Units connected by an Articulated Arm: CFPSOR Gastech 2002 - GTL Offshore: The Marine Perspective

22. ULFPSR : Ultra Large Floating Production System • MAIN DIMENSIONS: • 350 m x 100 m x 32 m • 4.5 MBBLS Storage Capacity • PROCESS PLANT: • 60,000 ton Topsides Weight • 30,000 m2 Available Deck Area Gastech 2002 - GTL Offshore: The Marine Perspective

23. ULFPSR : Ultra Large Floating Production System • Takes advantage of the economies of scale: Compact Solution • High Flexibility: Bow External Turret • Research is performed in cooperation with MARIN in order to investigate: • Roll Motion • Weathervaning capabilities • Drift Forces • Mooring Gastech 2002 - GTL Offshore: The Marine Perspective

24. CFPSOR : The Standard-Size Solution • MAIN DIMENSIONS: • Two units (300 m x 58 m x 32 m) • 4.5 MBBLS Storage Capacity • PROCESS PLANT: • 60,000 ton Topsides Weight • 30,000 m2 Available Deck Area Gastech 2002 - GTL Offshore: The Marine Perspective

25. CFPSOR - The Articulated Spring Arm (ASL) • Resembles the mooring hawsers used for tandem offloading • Undesired degrees of freedom are released by means of hinged joints • Tension/ Compression capability is incorporated to limit the clearance between the Units • The spring-damper element provides adequate dynamic behaviour to the system • Piping / Cabling routing. Enclosed gangway for personnel access • Gas Transfer: Conventional Floating hose Gastech 2002 - GTL Offshore: The Marine Perspective

26. CFPSOR - Combined FPSO • Research is performed in co-operation with in order to investigate: • Diffraction calculation for both vessels • Numerical time domain simulation with 2 bodies • Modelling of ASL element as a spring-damper combination dependent on the relative distance in 3D between the connections • Operational Limits • Model testing Gastech 2002 - GTL Offshore: The Marine Perspective

27. CFPSOR - Combined FPSO Work in progress... Gastech 2002 - GTL Offshore: The Marine Perspective

28. Seakeeping aspects • Turret Moored vs. Spread Moored • Critical Motions: - Pitch - Roll • Auxiliary Thrusters Source: GREENLAB Software - MARIN • Process Plant Layout • Offloading • Green Waters Source: FLOW-JIP - MARIN

29. The SEAGAS JIP Gastech 2002 - GTL Offshore: The Marine Perspective

30. Objectives A recently established Joint Industry Project to INVESTIGATE SOLUTIONS for the exploitation of Stranded and Associated Gas offshore ... ... through chemical gas conversion processes Initially focus will be on Associated Gas in Benign Waters Gastech 2002 - GTL Offshore: The Marine Perspective

31. Leading Partners IZAR FENE (Marine Leader) FOSTER WHEELER (Topsides Leader) Partners Marine Engineering Company Participants Topsides Engineering Company Classification Society Operator Structure Group I: Suppliers,Consultants, Learning & Regulatory Bodies, Research Institutes & Universities Group II: Oil & Gas Cos, Energy Cos, and Ship Owners Group III: Governmental Bodies, National Institutes, Banks, etc Gastech 2002 - GTL Offshore: The Marine Perspective

32. Main Show Stoppers The JIP will result in a basis for design for GTL FPSOs • Suitability for Ship Installation • Safety / hazard potential • Potential environmental non-compliance • Ease of modularization • Energy and hydrocarbon conversion efficiency • Ease of start-up and operation • Installation difficulties, e.g. heavy-lifts • Topsides / Ship’s systems integration Gastech 2002 - GTL Offshore: The Marine Perspective

33. Budget: Duration: 1.4 MMeuro Man-Hours: 23 MONTHS 10,000 Participation Fees (EURO): Participation Gastech 2002 - GTL Offshore: The Marine Perspective

34. IZAR experience and capabilities • Result of the Merger of and in 2001 • 2nd biggest marine group in Europe and 9th in the world • 19 business centres. IZAR Fene is the former ASTANO • Izar Fene is fully dedicated to Offshore construction since 1987 • FSU and FPSOs (Alba, Gryphon A, Texaco Captain, Petrojarl Foinaven, Farwah) • Drilling Units (Drillmar, Discoverer Enterprise, Spirit and Deep Seas) • Topsides (Texaco Captain, Discoverer Enterprise, Spirit and Deep Seas) • Other Offshore facilities and Various civil works • Deeply involved in research activities • SEAGAS JIP - Sponsored by Marin: • DP FPSO - Safeflow • CFPSO - Roll JIP • ULFPS - DP JIP • FPSO Research Forum • Boil-Off Relicuefaction Gastech 2002 - GTL Offshore: The Marine Perspective

35. Summary and conclusions • Environmenal and Regulatory concerns will force Oil Companies and Operators to provide integrated solutions for processing offshore oil and gas in order to avoid flaring • GTL Technologies may be a solution in some instances • IZAR and FW have skills to deliver in the field of design and construction of floating GTL facilties • The SEAGAS JIP is aimed in the development of a ‘basis for design’ for such type of units Gastech 2002 - GTL Offshore: The Marine Perspective

36. Questions and answers For further information, please contact: Foster Wheeler Simon_Clarke@fwuk.fwc.com Steve_Spicer@fwuk.fwc.com Don_Harris@fwuk.fwc.com Tel: +44 (0) 118 913 1234 IZAR amendezd@izar.es jlcortijo@izar.es flago@izar.es Tel: +34 981 338 563 Gastech 2002 - GTL Offshore: The Marine Perspective