NORTH SEA REGION Richard Stark Paul Williams

Apache Subsea Projects

Presenters Richard Stark, Project Services Manager, Apache North Sea Paul Williams, Subsea Projects Manager, Apache North Sea

Itinerary

Apache and Apache North Sea 2011 Subsea Campaigns

Lunch

In progress projects Upcoming projects Apache North Sea – The Future Procurement Questions

INTRODUCTION TO APACHE

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20 mins

20 mins

APACHE – A GLOBAL COMPANY

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North Sea

Egypt

Australia

Central

Canada

Argentina

Gulf of Mexico Shelf

Julimar – tie back to platform Wheatstone - LNG plant Balnaves – FPSO Conniston – Tie back to FPSO Macedon - Onshore

Kittimat pipeline

Deepwater

FASP

1Q 2012 Results 769 MBOE/D net Up 7% YOY (50% liquids) $1.2 BN adjusted earnings up 4% YOY $2.6 BN cash flow up 18% YOY 3 BN boe in 2011 YE reserves at all‐time high (46% liquids)

2011 Financial Results 748 MBOE/D net +14 % YOY

(50% liquids) $10.2 BN* cash flow +39 % YOY $4.5 BN earnings +50 % YOY

APACHE – A GROWTH COMPANY

APACHE – GROWTH THROUGH EXPLORATION

APACHE – LARGEST INDEPENDENT

6 % OF PRODUCTION OUTSIDE NORTH AMERICA

2011

PPR

ODU

CTIO

N (M

boe/

d)

0

100

200

300

400

500

600

700

800

900

1,000

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Richard Stark

APACHE IN THE NORTH SEA

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Acquired Mobil North Sea Limited (Beryl) and a non‐operated interest in the Nelson field

Q1 2012 production up 67% YoY, 41% sequentially with plans for continued ramp up

Bacchus well 1 online April 2012 @ ~6,000 Bbls/d gross

Zero to 40 subsea wells 15 to 80+ pipelines 0% to 20% production from subsea

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

100,000

110,000

Oct‐11 Dec‐11 Feb‐12 Apr‐12 Jun‐12 Aug‐12 Oct‐12 Dec‐12

Net

Rat

e (b

oe/d

) Nelson IMSBacchus IMSBeryl IMSForties + Maule IMSTelford BPFScott BPFNelson BPFBeryl BPFForties + Maule BPF

APACHE – LOCAL GROWTH AND ASSETS

NNS – BERYL PLATFORMS

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Beryl Alpha • Condeep structure • RAT and flare tower • 2 x drilling rigs • Tanker export (oil) • SAGE export pipeline (gas) • Buckland / Skene / Nevis / Ness / Lewis • Gryphon

Beryl Bravo • Steel jacket • Oil and gas export to Beryl Alpha • 1 x drilling rig • Nevis / Ness / Linnhe

NNS – SUBSEA BERYL AREA

SAGE GAS PLANT

CNS – FORTIES PLATFORMS

• 5 x platforms + FASP • Oil export through Forties Charlie via FPS • Limited gas (power)

CNS – SUBSEA FORTIES AREA

• 14 x infield pipelines • 1 (+) x subsea well (Bacchus) • Impressed Current Cathodic Protection (ICCP)

APACHE NORTH SEA – NEW LOCATION

Paul Williams

IN PROGRESS PROJECTS

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2011 CAMPAIGNS

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2011 VESSEL CAMPAIGNS ‐ FORTIES

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Survey and ROV Inspection – 21 Days Subsea Construction (Non Diving) – 22 Days Diving Support Vessel Works (DSV) – 110 Days Pipelay & Trenching – 30 Days

2011 VESSEL CAMPAIGNS ‐ BERYLS

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Survey and ROV Inspection – 20 Days Subsea Construction (Non Diving) – 0 Days Diving Support Vessel Works (DSV) – 34 Days Pipelay & Trenching – 0 Days

Seven Atlantic Hydrotest of Riser D1. Switch Skene Power B to C. Riser base spool UT 12th Feb to 22nd Feb 10Ernest Shackleton Beryl Survey (UK portion) 1st July to 14th Aug 20

Bibby Topaz N11 riser re-route and leaking N12 grease nipple repair. N12 AMV visual inspection 8th Aug to 20th Aug 12Bibby Topaz Skene IR investigation and S48 greasing 27th Sept to 1st Oct 4Bibby Topaz N13 (N1y) SCM changeout. Nevis IR investigation and repairs. Attempt at skene caisson 15th Oct to 23rd Oct 8

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FORTIES ALPHA SATELITTE MANHOURS ENGINEERING 331,532hrs CONSTRUCTION 1,453,303hrs WEIGHT STRUCTURAL WEIGHT (tons) 16,647 EQUIPMENT WEIGHT 1,550 PIPING LENGTH (Miles) 10.5 No. OF VALVES 2107 ELECTRICAL , INSTRUMENT & TELECOMMS ELEC. CABLE (Miles) 31.9 ELEC. BULKS (Lights etc.) No. 18435 INST. CABLE (Miles) 86.9 INST. BULKS (Gland/Term etc.) No. 21388

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BACCHUS SUBSEA TIE‐BACK

FORTIES CHARLIE SSIV

FORTIES CHARLIE SSIV

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Completion Status Design 100% complete Valves 100% complete

Structures 50% complete Umbilical 100% complete Flange manufacture 80% complete Pipe manufacture 80% complete Conduit 40% complete

3D Visualisation of SSIV Layout (Brae Import) Valve and Actuator Post Testing

Man

FORTIES CHARLIE SSIV

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3D Model of SSIV & Structure

Base Frame (shows scale)

36” Pipe Weld Qualification Tests

36” Concrete Coated Pipes

Schedule to Completion All manufacturing complete, Sept 2012 Final items into storage, Oct 2012 Site integration tests, Feb 2013

Phase 1 installation, June 2013 Phase 2 installation, Aug 2013

FORTIES D TO C PIPELINE REPLACEMENT

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Completion Status Design 100% complete Pipelay 100% complete

Trenching 100% complete Riser manufacture 90% complete Clamp manufacture 90% complete

GAS RINGMAIN REPAIR

1ST BERYL CAMPAIGN – NEVIS SOUTH REPAIR

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Well N13 leaking hydraulic fluid

165 Litres per day being discharged Decision taken to mobilise DSV Original schedule was 3 days for Nevis works SCM changed out in 10 hours All Nevis works completed in 1.5 days Well now back online, no leaks reported

Leak at N13 (greenish fluid)

Airbag change out of SCM

Around 500 unsupported pipeline lengths, freespans, have been identified on the SAGE pipeline (lengths 10m‐57m/ gaps 0.1‐2.0m)

5 of these were addressed in detail as the spans fail the pre‐determined criteria

1 freespan was rectified in March 2012 at the Beryl Alpha SSIV (44m) to prevent any potential for further growth and requirement for annual monitoring

4 remaining critical spans will be re‐inspected in 2012

1ST BERYL CAMPAIGN – SAGE FREESPAN

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2012 Freespan Repair

Freespan Prior to Repair

UPCOMING PROJECTS

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NNS – SUBSEA BERYL AREA

LORISTON SOUTH WEST

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LORISTON SOUTH WEST

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Currently based on using an existing and available tree

Use of PL893 2.5km flexible flowline extension required

Flexible flowline is available and under Apache control

Controls & chemicals, new umbilical required

Umbilical chemical hoses to directly tie into the new tree

FEED engineering starting

NESS SOUTH

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NESS SOUTH

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Currently based on using an existing and available tree

Flexible jumper from N7 flowbase to tree

Injection gas also from N7 or other local flowbase

Controls & chemicals, new umbilical required

Jumpers (6” and 8”) are available in the market

New umbilical required Umbilical chemical hoses to

directly tie into the new tree FEED engineering starting

NEVIS CENTRAL LEWIS 4

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NEVIS CENTRAL LEWIS 4

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Currently based on using an existing and available tree

New flowline required, longest lead item currently 12 months

Controls & chemicals, new umbilical required, or alternately put enough cores in Loriston South umbilical

Umbilical chemical hoses to directly tie into the new tree

FEED engineering will start in the next quarter

Aviat (WI 100%)

power demand

diesel

Forties gas

2006

2020

Aviat‐1 was drilled in 3Q 2010 and successfully tested A fuel gas resource for Forties Field 26kM from Forties Alpha Two well tie back A final appraisal well currently being planned Project delivery planned for 2014 Engineering works will commence Q3 2012

AVIAT

FORTIES

NELSON

Richard Stark

APACHE NORTH SEA – THE FUTURE

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NORTH SEA REGION – EXPLORATION, DRILLING AND APPRAISAL

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Forties & Nelson

Beryl

◤ FASP ◤ Forties Echo ◤ Isabella 3D Wide

Azimuth Seismic ◤ Tryfan well ◤ Seagull North Well ◤ Seagull Well ◤ 27th License Round

Tryfan

Seagull & Seagull North Isabella

UK Norway

Richard Stark

PROCUREMENT

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Qualification for work FPAL

Offshore Construction ‐ Currently Petrofac Onshore Engineering / Offshore Construction – Award Pending

Subsea Project Management Flexlife

Subsea Engineering Detailed Design Award Pending

Subsea Construction ITT being prepared

PROCUREMENT

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Apache have been in the North Sea for almost a decade

Forties has been a great success for Apache The plan is that the Beryls will be too Questions

SUMMARY

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