Pierre Girard Area Development Manager Exploration and Production GDF SUEZ E&P UK Ltd SNS: Current developments and future activities EEEGR SNS2013 QHSE Our goal is to protect our employees, contractors, communities, stakeholders and the environment. Our vision is to be the leading QHSE performer amongst our peer UK E&P companies. Our mission is to meet the highest standards of QHSE protection through our core values. Drive Daring Commitment Cohesion We believe that all incidents are preventable. 3 GDF SUEZ group: a global leader in energy A presence on every continent 4 GDF SUEZ group: a global leader in energy A presence across the energy value chain Oil & gas exploration & production Supply and infrastructures Electricity generation Trading and portfolio management Sales and energy services Distribution 5 GDF SUEZ group GDF SUEZ Energy Europe GDF SUEZ Energy International GDF SUEZ Global Gas & LNG GDF SUEZ Infrastructures GDF SUEZ Energy Services SUEZ Environment 27,200 10,750 1,750 17,700 77,350 79,500 EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES EMPLOYEES Energy management and trading 6 business areas Exploration & Production Natural-gas transmission network Management of urban networks in and outside France Water and sanitation services Power generation Supply of natural gas to major clients in Europe Marketing and sales The United Kingdom-Europe North America Latin America Middle East: Turkey & Africa Asia Australia Liquid natural gas portfolio management LNG terminals in France Power production Storage activities in and outside France Supply of natural gas and electricity Gas distribution networks in France Management of industrial and tertiary electrical installations Water-treatment engineering Waste management Global multitechnical offers 6 GDF SUEZ E&P: a global player to support group strategy E&P activity E&P main assets or projects Participation in liquefaction plant GDF SUEZ E&P worldwide: key figures 441Mboe 2P reserves: discovered from 2007 to 2011 789 Mboe in 2011 40 discoveries out of 85 exploration and appraisal wells from 2007 to 2011 Activities in 16 countries 1,619 employees Production: 57.8 Mboe in 2011 8 GDF SUEZ E&P: 2012 HIGHLIGHTS Netherlands K12-Blubell: discovery The United Kingdom Faraday: HPHT gas discovery confirmed 27th Round: 9 licences awarded E17a-A field: over 2bcm gas produced since production start-up (50% above forecast) Norway Gudrun: construction of the platform Juliet: project sanction Gjøa: drilling completed Cygnus: project sanction Production: 100 Mboe total production reached in August since establishment Qatar Algeria Block 4: agreement GDF SUEZ / PetroChina Touat: drilling of first production well and main EPC tender launched South-East Illizi: discovery in first exploration well Ivory Coast Foxtrot: drilling of 2 production wells Indonesia Katak Biru: exploration well (Muara Bakau licence) Jangkrik North East field: appraisal well 9- Management Team - UK GDF SUEZ E&P UK employs over 300 staff and contractors in London and Aberdeen offices. Jean-Claude Perdigues Managing Director Steve Thomson QHSE Manager Andy Spencer Subsurface Manager Andy Hirsch Finance, Supply Chain & IS Manager Ian Conacher Cygnus Project Manager Mike Robertson Development and Operations Manager; Aberdeen GM Delphine Cherel-Sparham Strategy & Business Manager 10 GDF SUEZ: E&P UK assets Interest in over 50 licences 10th largest UK Operator of acreage holder 18 licences 61 Mboe 2P reserves 9 new licences awarded in 27th UK bid round Partner in 2 pipeline systems (ETS and CMS) Near-term development projects, including Cygnus and Juliet 11 Exploration & Development Core areas in the UK Strong commitment to chosen regions West of Shetland: first exploration well, drilled in 2012-2013 Central North Sea: Faraday and Austen discoveries and ongoing exploration program Southern North Sea: Cygnus, Juliet, Orca, developments 12 Cygnus and Juliet: Flagship projects Cygnus Largest discovery in the Southern Gas Basin in the last 25 years. Gross 2P reserves ~ 18 billion cubic metres At peak production, it will contribute 5% of UK gas production, equivalent of supplying ~1.5 million UK homes Project partners GDF SUEZ E&P UK, Centrica and Bayerngas Juliet GDF SUEZ E&P UK exploration discovery in 2008 First gas by the end of 2013 Project partners GDF SUEZ E&P UK, First Oil and Hansa Hydrocarbons 13 Cygnus: Background Challenges: Large areal extent, Challenging reservoir quality Shallow water Key success factors: Subsurface vision and skills Continuous management support Securing export route GDF SUEZ E&P UK picked up licence in 2002 and drilled 5 appraisal wells Key achievements: Successful appraisal campaign Project sanction in August 2012 Key success factors to develop: Detailed engineering progress to keep pace with construction schedule Development of ‘one team, one goal’ spirit with key contractor 14 14 Cygnus: Field development and layout Schedule to First Gas: Q4 2015 Gross Capex £1.4 billion 10 wells: 5 at each drill centre One main hub with 3 bridge linked platforms providing accommodation, processing and export; Additional Well Head Platform (WHP) in West (Bravo) Export via Esmond Transport System (ETS) pipeline into Bacton Terminal. 15 Cygnus: Current status Significant opportunities for the supply chain, working with major project partners Contract Who’s doing it? Platform Construction, Jackets and Topsides Modifications Heerema & BiFab Detailed Design and Platform Procurement AMEC Subsea Export Pipeline Installation Saipem Drilling ENSCO Subsea Detailed Design Genesis Platform and Subsea Structure Installation Seaway Heavy Lifting Subsea structure fabrication ISLEBURN Hook Up and commissioning Tender under evaluation Infield Pipeline installation Saipem Next major opportunity is the future operating phase of the asset 16 16 Juliet: Background Located in Block 47/14b in the Southern North Sea gas basin, approximately 37km east-north-east of the nearest landfall at Theddlethorpe The structure was discovered in 2008 by the 47/14b-10 well First gas scheduled for Q4 2013 Peak production expected to be 80 mmscfd/5mmboe GDF SUEZ E&P UK (51.56%), First Oil Expro Limited (29.44%), Hansa Hydrocarbons Limited (19.00%) 17 17 Juliet: Field development Schedule to First Gas: Q4 2013 Majority of contracts awarded to UK based suppliers Two horizontal subsea wells tied back by a 22km 12-inch diameter export pipeline and control umbilical to the Pickerill A platform Existing infrastructure will transport the Juliet gas from Pickerill A to the Theddlethorpe terminal Drilling has started in February 2013 with topsides and subsea construction taking place throughout 2013 18 18 Juliet: Current Contracts Contract Who’s doing it? Topsides Detailed design Fabricom (Newcastle, England) Subsea Detailed design Xodus (Aberdeen, Scotland) Onshore design WGE PSN (Aberdeen, Scotland) Umbilical Oceaneering (Rosyth, Scotland) Linepipe Sumitomo (Wakayama, Tokyo) Valves (Subsea) Pacson (Dundee, Scotland) Subsea controls Proserv (Great Yarmouth, England) Subsea construction tender Technip Accommodation Vessel Seafox 19 19 Future SNS opportunities: Clear Focus and Specific Challenges Preferences • Leverage large investments in Cygnus & Juliet • Operated satellites • Operated hub Specific challenges • • • • Size of future discoveries Access to infrastructure Quad 44 specific issues: Gas quality, Halite Future abandonment liabilities 20 Future SNS opportunities: Specific challenges – CAN YOU HELP SOLVE ANY? Size of remaining SNS opportunities likely to be modest • Need to adopt ingenious solutions to make these opportunities more resilient, e.g. ‒ low cost option, standardisation of design, short cycle time, economies of scope via simultaneous development of several discoveries. • Learning from past successes and close collaboration with key industry partners is expected to be a critical success factor Access to infrastructure • Anticipated reduction of potential hubs with a risk of stranded gas Quad 44 specific issues: Gas quality, Halite • Innovative solutions required to provide cost effective solutions Life of field mind set • Development decisions should be made with sufficient consideration for efficient decommissioning and removal where applicable. 21 Summary GDF SUEZ E&P UK LTD Committed to the UKCS Investing Growing Recruiting Operating 22 GDF SUEZ E&P: a global player to support group strategy Contacts Martin Bruce Procurement and Supply Chain Manager Martin.Bruce@gdfsuezep.co.uk Keith Murphy Operations Manager Keith.Murphy@gdfsuezep.co.uk Pierre Girard SNS Development Manager Pierre.Girard@gdfsuezep.co.uk 23