Overview of Liwan 3-1 Deepwater

Subsea Tieback Gas

Development

Weiqiang Liu, Chief Engineer South China Sea Deep Water Gas Development PMT

CNOOC Limited

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CONTENTS

Introduction to Liwan 3-1 Deepwater Gas Development Selection of Deepwater Development Concepts Liwan 3-1 Development Progress Report

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The Geographical Location of LW3-1 Gas Field

Pan Yu 34-1/35-2/35-1 Water Depth 200-378m

Li Wan 3-1 Water Depth 1500m

Pan Yu 30-1 & Hui Zhou 21-1 (Existing) Water Depth 200m

Liu Hua 34-2 Future Tieback Water Depth 1146m

Liu Hua 29-1 Future Tieback Water Depth 720m

LW3-1 deepwater field subsea tieback to a shallow water central production platform; A large processing capacity reserved for future tieback developments in the vicinity.

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The Geographical Location of LW3-1 Gas Field

The Continental Shelf o Approximately 250km

distance from shore to the water depth of 200m, small slope;

o Less than 100km from the water depth of 200m to 1500m, deep slope.

Gas Resources o Li Wan 3-1 Deepwater Field o Pan Yu34-1/35-1/35-2 Shallow

Water Fields o Liu Hua 29-1/34-2 Deepwater

Fields o Short Tieback Distance

between all the fields above

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Introduction to Liwan 3-1 Gas Development

The Liwan 3-1 Gas Field located in South China Sea, the first deepwater development in China

CNOOC & Husky Production Sharing Contract (PSC) for Block 29/26 signed in 2004

The Gas Field discovered in 2006 and located approximately 310 km Southeast of Hong Kong

The subsea facilities lie in water depths ranging from 1,350 to 1,500 meters and subsea tie-back 79km to a shallow-water central production platform located in 189.5m water depth then further tieback 261km to an onshore gas plant

The deepwater subsea facilities operated by Husky China while the shallow water and onshore facilities operated by CNOOC

The First Gas Production targeted for 4th Quarter 2013 for Liwan 3-1 Gas Field and 3rd Quarter 2014 for Panyu 34-1/35-1/35-2 Gas Fields

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Potential Resources in the Vicinity of LW3-1 Field

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Phase Developments & Process Capacity

LW3-1 Subsea

LW3-1 Central Platform

PY35-1 Subsea

PY34-1 Central Platform

LH29-1 Future

LH34-2 Future

Operator - Husky

Operator - CNOOC

Facilities Design Process Capacity

LW3-1 Central

Platform

Phase 1 Process: 8.0 BCM/Year Boosting: 10.0BCM/Year

Phase 2 Process: 12.0 BCM/Year

Export Pipeline

Shallow Water

Export: 12.0 BCM/Year (BCM = Billions Cubic Meters)

Onshore Gas Plant

Phase 1 Process: 8.0 BCM/Year

Phase 2 Process: 12.0 BCM/Year

Future Process: 20.0 BCM/Year

Gaolan Onshore Terminal in Zhuhai

Operator-CNOOC

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Liwan 3-1 Subsea Tieback Gas Development

10 ×Subsea wells in water depth ranging from 1,350 to 1,500 meters 2×Manifolds and 1×PLEM 2 ×ø22” ×79 km Main Deepwater Flowlines and 79 km Subsea Umbilical & MEG Supply Line from PLEM to Platform 1 ×ø30” ×261km shallow-water export pipeline to onshore gas plant 1 ×Central Production Platform w/Separation, Gas Dehydration, Compression & MEG Systems, 200 Person Living Quarters, located in water depth of 189.5m 1 ×Onshore Gas Plant with an area of 1.45 millions m2 located at the Gaolan Island in Zhuhai next to Macao

West Manifold

Pipeline End Manifold (PLEM)

Central Platform (CEP)

Main Flowlines

East Manifold

Liuhua 34-2

Onshore Gas Plant

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PY34-1/35-1/35-2 Subsea Tieback Gas Development

The Pan Yu 34-1 Central Production Platform located in water depth of 190.2m 14ˮ×31.3 km shallow water subsea pipeline to receive mixed fluids consisting of dry gas and dewatering condensate from PY34-1 Platform Panyu 35-1 and 35-2 with 7 subsea wells tied back to PY34-1 Platform LW3-1 Platform receives and boost dry gas from PY34-1 Platform.

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Typical Deepwater Gas Development Scenarios in GOM

The Subsea Mensa Field in 1610m water depth tie-back 109km to a platform at West Delta 143 in 112m water depth; The Red Hawk Cell Spar in 1615m water depth tie-back 96km to Baldpate Platform, designed as a floating alternative to a long-distance tieback; The Canyon Express Fields, TLP Ram-Powell tieback to Platform Virgo, Neptune Spar & TLP Marlin tieback to Canyon Express Pipeline.

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Deepwater Development Scenarios for LW3-1 Gas Field

Scenario A: Spar/TLP/SEMI to Shallow Water Platform then export

to Onshore Gas Plant

Scenario B: Subsea Facilities tieback to Shallow Water Platform

then export to Onshore Gas Plant

Scenario C: Spar/TLP/SEMI directly export to Onshore Gas Plant

Scenario D: Subsea Facilities directly tie-back to Onshore Gas

Plant

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Criteria for Selection of Scenarios

Gas Sale Market and Production Rate

Location Selection for Shallow Water Platform

Location Selection for Onshore Gas Plant

Flow Assurance from Subsea Wells to Surface Facilities

Investment and Development Schedule

Future Developments in the vicinity

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Options of Floating Production Units (FPU)

TLP –Tension Leg Platform

SEMI – Semisubmersible Platform

Spar – Deep Draft Caisson Vessel

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Main Driving Factors for LW3-1 Gas Development

Avoid a long distance tie back, therefore subsea tieback to a shallow water platform Use mature and reliable technology of subsea facilities and shallow water jacket platform A short development period about 3 years An easy tieback to future developments of the gas fields in the vicinity.

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Final Selection of Liwan 3-1 Subsea Tieback Gas Development

LW 3-1 Field: 10×Subsea Wells, 1×PLEM, 2×Manifolds, etc. Central Production Platform: o Located in Water Depth of 190m; o Phase I: 8.0 billion m3/a o Phase II: 12.0 billion m3/a

Deepwater Tieback: o 2×22” ×79km main flowlines o 1×7” ×79km umbilical o 1×6” ×79km MEG supply line

Shallow Water Export: o 1×30”×261km export line o 12.0 billion m3/a including future

developments

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Gaolan Onshore Gas Plant Under Construction

Mechanical Completion: September 2013 Commissioning with Gas: October 2013 Gas Commercial Sale: End of 2013

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Gaolan Onshore Gas Plant Under Construction

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Anchorage

Gas Processing Area / Spherical Tanks Main Process Area

Condensate (30,000m3) / Firewater Tanks (10,000m3)

Slug Catcher (175m x 85m); 7,000m3

Jetty (415m Long) Seawall (1km) Enclosing EL+6.0m Platform

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Completion of Laying ø30×261km Shallow Water Export Pipeline

COOEC’s Shallow Water Pipe-Lay Vessel HYSY202

Global’s Newbuilt Shallow Water Pipe-Lay Vessel G1201

Slope Section at Gaolan Landfall at EL+50m Platform

Normand Clough to Complete SSIV and SP on Jul 28, 2013

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Marine Spread for Deepwater Pipelay & Construction

FDS2 to lay 2nd 22” Main Flowline, CRA Infield Lines. PLEM, Manifolds, etc.

HYSY 201 to lay 6” MEG Line

Normand Cutter to Lay Umbilical, Jumpers, Flying Leads, etc.

Normand Baltic to Perform Pipeline Testing & Commissioning, etc.

FDS1 to lay 1st 22” Main Flowline & CRA Infield Lines, etc.

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32,000Te LW3-1 CEP Jacket Construction & Installation

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Anchorage

Jacket Fabrication from Dec 2010 to Jul 2012

HYSY229 w/ CEP Jacket Sailaway July 27, 2012 Jacket Launch August 30, 2012

Loadout onto T-Shaped Launch Barge HYSY229 July 18, 2012

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Anchorage

26,000Te LW3-1 CEP Topsides Construction & Floatover Installation with 4,888Te Deck Support Frame (DSF)

Topsides Fabrication from Jun 2011 to April 2013

HYSY229 w/ CEP Topsides Sailaway on May 5, 2013 The Most Challenging Floatover Installation May 23, 2013

Loadout onto T-Shaped Launch Barge HYSY229 April 10, 2013

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Concluding Remark

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Anchorage

OSHA incident rate: 0.042

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Near Miss

6341

Safety Observations

5 Lost time accidents

0 Death

Safety: 28 Millions manhours so

far;

Schedule: Gas Commercial Sale by

end of 2013;

Cost: within ODP Budget;

Quality: No major quality issues.

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Anchorage

Thank You! Any Question?

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