1. FPSO in Australia and New Zealand
Status and Future
Yoshihide Shimamura
MODEC Offshore Production System
2009-11-9
WA Oil and Gas Facilities Group Meeting

2. FPSO – Over View
- Floating facility for Offshore Oil Field w/o Pipe Line
- Fit for Marginal Field
- Booming in West Africa, Brazil, S.E. Asia, incl. ANZ
Why?
- Low CAPEX
- Early Development
- Adaptable for Deep Water
- Flexible for Field Characteristics
2

3. GROWTH OF FLOATING PRODUCTION SYSTEMS
Between 1999 and 2009
- Number of FPSO increased from 67 units to 165 units (+ 98 units, + 146%)
- Number of TLP increased from 11 units to 22 units (+ 11 units, + 100%)
FPSO TLP S par S em i
250
44
200 17
22
(Num ber of Ins talled Units )
150
32
100
2 165
11
50
67
0
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
as of end y ear (2009 inc ludes units on order to be delivered during the y ear)
Source: FLOATING PRODUCTION SYSTEMS assessment of the outlook for FPSOs, Semis, TLPs, Spars and FSOs – April 2009 (IMA)
3

4. FLOATING PRODUCTION SYSTEMS IN OPERATION
22 Projects in Operation as of July 2009
151
12
7
2 SEM I
T LP
F PSO
F SO
2
15
North Sea 40
SEM I
T LP
F PSO
F SO
Spar
7 Canada
4 1 1 15 15
88
SEM I
F PSO
T LP
7
F SO
SEM I
F PSO
T LP
F SO
17 3
China 1
Mediterranean 9
SEM I
F PSO
T LP
F SO
Spar
34 1 1 1 1 1 GOM
28
SEM I
SEM I
43
T LP
F PSO
T LP
F PSO
F SO
F SO
Spar
India SE A s ia
18
15 15 22
16
4 4
3
SEM I
SEM I
SEM I
F PSO
F PSO
T LP
T LP
SEM I
F SO
F SO
T LP
F PSO
F PSO
T LP
F SO
F SO
Spar
W es t A f ric a Pac if ic W orld Total Braz il
Source: FLOATING PRODUCTION SYSTEMS assessment of the outlook for FPSOs, Semis, TLPs, Spars and FSOs – July 2009 (IMA)
*Not shown are 9 FPSOs and 3 production semis that are off-field and available for reuse.
4

5. FPSO – In Australia/New Zealand
-18 FPSO are operating or under construction
-Lease (11) vs Operator Own (7) – average (54/46%)
-Lease/Operation period <10 years
-Disconnectable FPSO (13)
-Water Depth – no deep water
-Production rate - average 82,000BOPD/52mmscfd
-Storage Capacity – average 860kBBL
-Conversion case (13), new built case (5)
-Less Operation crew (<30)
5

6. FPSO in Australia/NZ
FPSO Operation in Australia/New Zealand
Laminaria
Buffalo Elang/Kakatua
Jabiru
Challis Skua
Griffin Cossack
Puffin Darwin
Vincent
Montara
Van Gogh Karratha
Mutineer-Exeter
Woolybutt
Pyrenees
Enfield
Stybarrow Perth
Maui-B
Tui
BMG
Maari
6

7. FPSO in Australia/NZ - Statistics
Water Depth Production - Gas
<100m 3 17% <50MMSCFD 7
100m - 300m 10 56% 50-100 5
>300m 5 28% >100MMSCFD 2
total 18 Max 115 Cossack
Max Pyrenees 850m Min 2 Mutineer/Exeter
Min Montara 79m Average 52
Production - Oil Storage
<50KBOPD 5 <1Mil BBL 12
50-100 7 >1Mil BBL 6
>100KBOPD 6 Max 1.4Mil Laminaria
Max 170KBOPD Laminaria Min 42 BMG
Min 40KBOD Average 0.86Mil
Average 82KBOPD
7

8. Disconnectable FPSO – MV11
8

9. Disconnectable FPSO – MV1
MODEC Venture 1
9

10. FPSO ex Buffalo Venture
10

11. Technical Challenges
Last 10 years
- Continuous Challenges to
- More Deep
- Bigger Capacity
Coming 10 years
- New phase of Challenge
- More complex crude
- More efficient
- More eco-friendly
11

12. Historical Change in Water Depth
1 ,6 0 0
1 ,4 0 0
1 ,2 0 0
1 ,0 0 0
W ate r De pth
800
600
400
200
0
1980 1985 1990 1995 2000 2005 2010
12

13. Historical Change in Production Capacity
3 0 0 ,0 0 0
2 5 0 ,0 0 0
Production Rate (BOPD)
2 0 0 ,0 0 0
1 5 0 ,0 0 0
1 0 0 ,0 0 0
5 0 ,0 0 0
0
1970 1975 1980 1985 1990 1995 2000 2005 2010
13

14. Expanding Topside Footprint
80,000BOPD/2007
25,000BOPD/1986
100,000BOPD/2007
31,000BOPD/1996
14

15. Technical Challenges - Gas
Last 10 years
- Continuous Challenges to
- More Gas Handling
- Efficient Use
Coming 10 years
- New phase of Challenge
- More efficient
- More eco-friendly
- New technology – GTL/LNG
15

16. Historical Change in Gas Handling Capacity
700.0
600.0
Gas Handling Capacity (mmscfd)
500.0
400.0
300.0
200.0
100.0
0.0
1970 1980 1990 2000 2010
16

17. Disposition of Produced Gas
Flare
Boiler Turbine
Fuel Gas
Generator
Elect Motor Compressor
Gas Turbine Generator
Gas Turbine Compressor
Gas Lift
Gas Injection
Export Gas
17

18. FLNG
18

19. GTL Plant with Micro Channel Reactor Technology
19

20. FPSO Contractor – Lease Operation
Merit for Operator
- Saving of CAPEX
- Flexible charter period – minimize development risk
- High Oil Price = Extent Lease Period
- Reduce OPEX – salary of crew (time charter case)
Merit for FPSO Contractor
- Constant revenue for long period
- Redeployment of facility
- Pool of resource
20

21. FPSO Lease Operation
Contract Facility Owner O&M
Bare Boat Charter FPSO Contractor Oil Company
Time Charter Contract FPSO Contractor FPSO Provider
Operation Contract Oil Company FPSO Contractor
Multiple Fleet Pool of Human Resource
Synergy Effect Training
Utilize for Multiple Fields Mobilize to Multiple Facilities
Facility Management System
21

22. FPSO/FSO TIME CHARTER / O&M PERIOD
Time Charter Contract O&M Contract
Fixed period Option period Fixed period Option period
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
FPSO Cidade de A ngra dos Reis MV 22 ＊ 15y
Tullow Jubilee FPSO ＊ 7y
FPSO Cidade de Santos MV 20 ＊ 12y
BHP Py renees FPSO － 15y
FPSO Cidade de Niteroi MV 18 ＊ 9y
FSO Rang Dong MV 17 ＊ 9y
FPSO Song Doc Pride MV 19 ＊ 5y
FPSO Sty barrow V enture MV 16 ＊ 10y
FSO Cidade de Mac ae MV 15 ＊ 20y
FPSO Cidade do Rio de Janeiro MV 14 ＊ 8y
FSO Rong Doi MV 12 ＊ 7y
FPSO Baobab Iv oirien MV 10 ＊ 10y
FPSO Jas mine V enture MV 7 ＊ 3y (FPSO Buf f alo V enture) 2.5y
FPSO MODEC V enture 11 ＊ 5y
FPSO Cuulong MV 9 ＊ 5y （ pu rc h ase d by th e c lie n t）
FPSO Fluminens e － 13y
FPSO MV 8 Langs a V enture ＊ 1y 2y
FSO Ta'Kuntah ＊ 10y 5y
FPSO MODEC V enture 1 ＊ 2y
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Oct 2009
* Consolidated Subsidiary Time Charter: 11 FPSO/FSOs, O&M: 2 FPSO
* Affiliates accounted for by the Equity Method
22

23. Leased FPSO
Production Rate
Crude Price
High
Initial Period Option Period
Charter Period
23

24. FPSO - Lease Operation
Before Financial Crisis – Win-Win
- Financial Support from Investor
- Raising Oil Price
- Technical maturity – lower barrier for new comer
- Speculation FPSO fleet
After Financial Crisis
- Conservative investor
- Lower Oil Price
- High Fuel Cost/High Wage
24

25. FPSO Ordered and Crude Oil Price
FPS O O rde re d / C ru de O il Pric e
20 FPS O O rde re d 140
18 120
16 C ru de O il Pric e
14 100
12 80
10
8 60
6 40
4
2 20
0 0
1997/9
1998/9
1999/9
2000/9
2001/9
2002/9
2003/9
2004/9
2005/9
2006/9
2007/9
2008/9
25

26. Re-deployment Project
Timing
Compatibility of Facility
Depreciation of CAPEX
26

27. FPSO Operation
Short Term Issues
- Increased fuel cost
- Higher wage
Long Term Issues
- Aging of operator
- Lack of resources
- Impact to quality of operation (HSE)
- Industrial-wide recruit and training program
27

28. Operation - Complement
A n o a N atu n a
K akap N atu n a
N an H ai S h e n g L i
C u u lo n g M V 9
R u by P rin c e ss
V ie tso vpe tro 0 1
SE Asia
R an D o n g M V 1 2
P ath u m abah a
M V 8 L an gsa V e n tu re
N an H ai S h e n g K ai
F lu m in e n se
B ao bab Ivo rie n M V 1 0
K o m e K ribi
Ta'K u n tah Atlantic
M adie la
S tybarro w
B u ffalo V e n tu re
M o de c V e n tu re 1 1
M O D EC V e n tu re 1 Aus/NZ
W h akaaro pai
0 10 20 30 40 50 60 70 80 90 100 110
28

29. Demographics of Operating Crew
20-29
T o tal
30-39
40-49
T h ailan d 50-59
60+
Vie tn am
In do n e sia
Au stralia
100% 80% 60% 40% 20% 0%
29

30. Thank You and
Any Question?
30