COSL Drilling Europe AS

Bringing new rigs to the North SeaBy: Bjørn Angeltveit

Venue: SEMTECH 2018

Agenda

o COSL`s rig status & performance

o Focus areas going forward

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COSL Drilling Europe – Management Team

CFO - Li Baozhong

President/CEO – Jørgen

Arnesen

VP Marketing &

Contracts – Magnar

Fagerbakke

VP Operations – Lage

Nordby

VP Business Development –

Bjørn Angeltveit

R & HR Director –

Osvald Borgen

Assistant to CEO –

Zhou Bingwen

HSE&Q Director – Kjetil

Andrew Tangen

Accommodation units

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COSLRival COSLRigmar

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Drilling units – midwater <750m (DP & mooring)

COSLPioneer (2010) COSLPromoter (2012)COSLInnovator (2011)

Re-Drilling of production wells on the

Troll field.

Water depth: 306 – 340 m - DP

Horizontal multi lateral wells with

intelligent completions. Horizontal X-

mas trees

COSLInnovator has been engaged in 12

wells from 13.01.2012 to 30.12.2015.

Client: LUNDIN, Norway, from Feb. 18

Re-Drilling of production wells on the

Troll field.

Water depth: 306 – 340 m - DP

Horizontal multi lateral wells with

intelligent completions

Horizontal X-mas trees

COSLPromoter has been engaged in 20

wells from 30.07.13 until present

Client: STATOIL, firm until 04-2021

3 x Exploration wells in 2011 – 2012

Water depth: 110 – 134,5m moored

1 x Production well in 2012

Water depth: 109 m - Moored

1 x Exploration well in 2012 Faroe

Islands (West of Shetland)

Water depth: 460 m – DP

9 x Production wells in 2012 - 2014

Water depth: 291 – 378 m moored

Visund oilfield (FMC trees)

Client: NEXEN, UK from April 18

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Drilling unit – midwater / deepwater <1500m

COSLProspector (2014)

South China Sea

Client: CNOOC

3 x Exploration wells in 2015

Waterdepth: 1289 – 1368 – 1374 m

2 x Exploration wells in 2017

Waterdepth about 1200m

At CCB, Norway, preparing for drilling a 120-

days well West of Shetland in June 2018

Design: GG 5000 design

DNV-GL, 1A1 Column-Stabilized Drilling Unit (N)

Clean, Ice (T), Winterized (Basic)

DP 3 & mooring (POSMOOR ATA)

Variable Deck Load 5000 mT

130 persons in single cabins

Norsok S-002 for work environment

9 ea. Utility stations for 690/230 + 460 voltage. 60 Hz. +++++

Cementing unit (BJ Seahawk 1600 hp El, remote oper)- Installed

LWD/MWD/ Directional drilling (BHI)- Prepared

Casing services- Prepared, Using Rig Hydraulic Ringline

Wireline logging- Prepared

Well testing- Prepared

Coiled tubing- Prepared

Subsea completion- Prepared

Technical specifications based on «Statoil Standard Spec.»

Light Ship Weight 26.000 mT

Operational Displacement 40.700 mT

Moonpool 24,2 x 7,2 meter (8,7 in Centre, retrac. rails)

Deckbox 69,5 x 83,6 m (W x L)

Pontoons 105,4 x 16,5 x 10,05 (L x W x H)

ROV moonpools 2 ea. 5,5 x 5,5 m

COSL rig status

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Rig Client Jan Feb Mar Apr MayJuneJuly Aug Sep Oct Nov Dec Jan Feb Mar Apr MayJuneJuly Aug Sep Oct Nov Dec Jan Feb Mar Apr MayJuneJuly Aug Sep Oct Nov Dec Jan Feb Mar Apr MayJuneJuly Aug Sep Oct Nov Dec

COSLPioneer Nexen - UK

COSLInnovator Lundin CCB 7 X 1 Well Options

COSLPromoter Statoil-Troll OPTIONS 1 x 8 Years

COSLProspector TBA

COSLRIVAL

COSLRIGMAR

CCB

2 Wells

Warm lay-up Kristiansand

Warm lay-up Kristiansand

1 Well incl DST UKCCB

FIRM P&A

8 Years contract

Rig-line COSL Drilling Europe AS

2018 2019 2020 2021

Personnel 2008 - 2018

2010 (Apr) COSLRival, COPNO

2011 (Aug) COSLPioneer, Statoil

(Apr) COSLRigmar, COPNO

(Apr) COSLRival to COPUK / BP (UK)

2012 Manning up for Innovator/Promoter

2013 (Jan) COSLInnovator, Statoil

(Apr) COSLPromoter, Statoil

2014 (Nov) COSLRigmar, Hess (DK)

2015 (May) COSLProspector, CNOOC (CHN)

(Aug) COSLPioneer, off contract

(Sep) COSLRigmar, Maersk Oil (DK)

2016 (Mar) COSLInnovator, contract cancellation

(Apr) COSLRigmar, off contract

(Apr) COSLProspector, off contract

2017 Maintaining crew for 2018 activities

2018 (Mar) COSLPioneer, Nexen UK

(Feb) COSLInnovator, Lundin

(May) COSLProspector, Nexn, UK

Onshore 69 (Forus, Mongstad, Aberdeen, Dalian)

Offshore 483 (Management & Crew)� COSLPromoter - 159

� COSLInnovator - 141

� COSLPioneer 98

� COSLProspector - 46

� Accommodation units – 9

� Resource pool – 30Manning per 28.02.18

Rig technical projects - optimized

COSLPioneer

COSLInnovator

COSLPromoter

2014 2015 2016 2017 2018

Contr.

suspended

04.01.16

29.11.16

21.06.17

Wave

incident

Contr.

Start

Rep

5 yr cert.

Suspension

Lay-up (max 3 yrs)

Slow SPS

5 yr cert.

Lay-up (max 3 yrs)

Reactivate

Reactivate 5 yr cert.

5 yr cert.

SPS

SPS

Contr.

Start

Ops. prepCOSLProspector

Benefits of identical rigs

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COSLPioneer COSLInnovator COSLPromoter COSLProspector

Benefits of identical rigs

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COSLPioneer COSLInnovator COSLPromoter COSLProspector

� Same drilling equipment & design

� Personnel - Identical competence requirements - ”One fits all”

� Experience transfer & common operating procedures

� Less spare part stock required

� Measure and compare performance

Standardizing operations

COSLInnovator COSLPromoter

Comparing rig performance

� Identical rigs allow for performance comparison – op timizing results

What is Operating Performance?

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1. No incidents

� Barrier control

� Activities performed correctly

2. Maximize Uptime

� Equipment uptime

� Reduce Waiting Time

3. Efficient operations

� Crew / Equipment performance

� 3rd party deliveries

� Reduce flat spot activities

� Consistency

4. Measure and communicate results

Total Well Delivery / $$$ for CLIENT

=

Strong and consistent drilling performance

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COSLPioneer COSLInnovator COSLPromoter COSLProspector

Statoil Rig of the month (COSLPromoter)

Jan Feb Mar Apr Mai Jun Jul Aug Sep Okt Nov Des

2016

2017

(5)(5)

SPS

Focus on performance

Focus areas going forward:

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o Operational performance focus

o Rig technical project execution

o Strengthening our market position (UK presence etc)

o Integrated Rig Services

o Digitalization

Integrated Rig Services will strengthen the drilling

contracts position:

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Drilling Unit

Directional Drilling

Cementing

Completions

Fluids

Mudlogging

MWD….

Drilling Contractors Major Service Companyo Schlumberger

o Halliburton

o BHGE

Potential/to be

included in contracts: o Casing Running (TRS)

o Wireline/slickline/e-line unit

o Manage Pressure Drilling

o Downhole drilling tools (Jars etc)

o ROV services

o Cementing unit

o Waste management

o Mooring Services

o Other…..

COSL Innovation Center

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INNOVATION@COSL.NOWe cannot solve our problems with the same thinking we used when we created them.

Albert Einstein

Very conservative business within certain areas!

1970-1980 2017����

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Very conservative business within certain areas!

1970-1980 2017����

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…while other industries has changed dramatically

1970-1980 2017����

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Reaching 50 million users

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Digitalization in COSL

Dedicated Innovation/Digitalization group since January 2017 working on optimizing work processes

�Implementing� NOV MMC (facilitate for NOVOS)

� Tablet EX-maintenance system

� E-invoices & app-based approvals

� Workplace by facebook

�Planned� Electronic PTW system

� Barrier monitoring tool (technical/administrative/competency)

� Dashboard

� Software upgrades (OCS, DM, Office, Rig Manager)

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Top barriers to digitalization relate to people and cult ure!

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No, thanks!

We have no time!

INNOVATION@COSL.NO

Thank you!