Remote Hot-tap on Åsgard

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

2. 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

3. Subsea Hot-tap - Typical permanent works

4. 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

5. Statoil Strategy - Remote hot tap technologyStatoil 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

6. 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

7. Statoil Strategy - Remote hot tap technologyCreating 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

8. Qualification Program Outline & TimescaleDevelopment milestones

9. 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

10. Remote Welded Retrofit Tee conceptRetrofit Tee Weld Development & Test Program Mock-up for hyperbaric testing in chamber • 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 API 5L X65 insert pipe with 5mm Inconel 625 cladding Inconel – Alloy 59 welding consumeable API 5L X65 mother Cooling pipes

11. Remote Welded Retrofit Tee Installation EquipmentInstallation 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

12. Remote Welded Retrofit Tee Installation EquipmentInstallation 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

13. 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!

14. Deep Water Trials Nedstrandsfjorden 2012 Launching RTWT in Nedstrandsfjorden The activated and welded Tee recovered to the vessel deck • 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!

15. 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

16. Offshore Installation video Video clip from offshore

17. 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

18. ConclusionsHot 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

19. 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:

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