© 2016 SMT

New Subsea Architecture: - Enabling long-distance subsea tie-backs to cut costs & speed delivery

- Platform for enabling brownfield EOR

SUT-SES; 1st General meetingSeptember 21, 2016University of Houston

Speaker: Art J. Schroeder, Jr. Principal, Safe Marine Transfer, LLC

2

SMT © 2016

The prize

Very large number of smaller resource pools that in aggregate

represent a significant resource

3

SMT © 2016

The challenges

Technical;

production blockage

well bore integrity

Financial;

rising costs

low product price

4 SMT © 2016

Project objective

Develop a qualified design for a 3,000 bbl subsea chemical storage and injection system suitable up to 10,000 fsw

SMT - The SMarT Solution™

Enabling long-distance subsea tie-backs

- 3000 BBL chemical storage & injection (eliminate chemical umbilical)

- Subsea pig launcher (eliminate 2nd flowline)

Platform for enabling brownfield EOR

- Seafloor placement of ‘kit’ enabling shuttle to – from surface for IRM

Video link -animation

5

SMT © 2016

System differentiators

o Large volume (3000 bbls) vs multiple small (30 - 200 bbls)

o Low-cost vessels of opportunity vs massive derrick barge

o Safe & environmentally friendlyo SIGNIFICANTLY less marine ops

(comparable volumes)o Dual barrier containment

6

SMT © 2016

System differentiators

Most common offshore practice

o Chemicals carried in “Tote Tanks”, as deck cargo

o Tote Tanks generally are 1 to 5 tons set up to be moved with fork lifts or lifted crane

o Chemical stored on platform

o Chemicals pumped via umbilical to point of use.

SMT system

o Seal chemicals in a pressure compensated dual barrier bladder system at dockside

o Deliver to point of use in re-usable double hull shuttle

o Eliminate need for expensive & complex chemical umbilical

o Re-usable shuttle facilitates rigorous inspection, maintenance, repair and up-grades to system on a routine & cost effective basis

7

SMT © 2016

Team

RPSEA Champion

Tom Gay

RPSEA President

James PappasNETL PM

Dave Cercone

SMTProject Mgmt

Integration

Regulatory (USCG (ABS) &

BSEE)

Reporting

Oceanworks

Process Systems

Hardware Interface Mgmt

Sensors & Logic

Chemical injection

Controls

Power

Aquarium World

Scale Model Test Apparatus

Avon

Design

Fab

Analysis &

Modeling

Trelleborg

Bladder material

Argen

3rd party Material Testing

lab

Legal -Corpora

te & Transact

ionalMiller, Egan,

Molter & Nelson, LLP

Legal -IP

Osha Liang

Alan McClure

Assoc.

Naval Architects

CFD Modeling

Ballast & Buoyancy Systems

Structural design & Analysis

Fugro

Foundations

(costshare)

Lincoln Composites

Buoyancy

ABSAiP

Back Office

Services

Growth Force, LLP

Helix Canyon

Marine Ops

Ops Simulation

DSA

Dynamic Operational Simulation

GRI

Simulation Modeling

and Analysis

Acct / taxJ. Reed Jordan,

LLP

Finance /

Banking

Chase JP Morgan

SMT

Advisory Committee

~ 45 SME across multiple

disciplines

UH

Analysis

(Costshare)

Baker Hughes

Chemical & data

(Costshare)

AIREDesign,

Fab, Analysis

& Modelling

Seaman

Bladder material

Oil Companies

Working Project Group

8 SMT © 2016

58

’

110’

15

’

35

’

Shuttle System

Design Features:Re-usable / re-deployable across very wide range of water depths – to 10,000 fsw

Chemical storage in hull (3 x 1100 bbls)

Space and capacity on deck to handle additional payload (shown with SCIU)

Buoyancy columns, re-purposed U.S. DOT approved CNG storage units

Shuttle structure is designed to applicable ABS and USCG CFR Rules and Regulations (AiP)

9

SMT © 2016

Hull Compartmentation & Structure Design

o Shuttle structure is designed to applicable

ABS Rules and CFR Regulations:

Codes, Guides, Rules & Regulations

1. ABS Rules for Building and Classing Steel

Barges, 2015

2. ABS Guide For Buckling And Ultimate Strength

Assessment For Offshore Structures - 2004

(Revised 2006)'

3. ABS Rules for Building and Classing Steel

Vessels under 90 meters, 2015

4. Code of Federal Regulations: 46CFR & 33CFR

10

SMT © 2016

o Steel Hull Structure

o Ballasting/De-ballasting System (water)

o Tank Vents

o Double Containment Pressure Compensation System *

o Weight Compensation Ballast Blocks (solid)

o Buoyancy Cylinders *o Chain Storage and Handling (winch)

o Containment System

o Hydraulic Valve Control System

o Bottom Water Jetting

Shuttle System

11

SMT © 2016

CFD Analysis – 4 Stage Process

Phase CFD Setup CFD Results Picture

1 Steady Flow

Analysis

Overturning

Forces

2 Forced

Shuttle

Motions

Damping of Shuttle

Motions

3 Free Rotation

of Shuttle

Evolution of

Shuttle Forces

4 Full Ascent Full System w/

Lowering Lines

12

SMT © 2016

CFD Results – Key Findings

Will shuttle remain stable?

o Yes• Remains upright when submerged and subjected to currents

• Does not require lowering lines to remain upright

Will shuttle rotate? If so, how much?

o Negligible rotation

• Lowering lines only control position

• Shuttle stays upright during transit to/from seabed

13

SMT © 2016

ABS Approval in Principle (AiP)

ABS Total Comments: 44

6 Closed

18 Site Specific

20 Phase III Fabrication

•

14

SUBSEA CHEMICAL STORAGE SYSTEM (SCSS)

Subsea Chemical Storage System (SCSS)

15

SMT © 2016

Engineer fabric; 1000’s of uses over decades

Abrasion resistantTear resistantTremendous tensile strengthWet environment propertiesMaterial – matched to chemical use10-year + life expectancy in many

applications

16

SMT © 2016

Chemical Bladder

Topsides Connection

Wing

Tank

Vent

Expansion

Bladder

Sea chest valve

For

Containment

System

CS

Contamination Sensor

Double Bottom Wing

Tank

Ballast

Inlet

Wing Tank

Subsea Chemical Storage System (SCSS)

Pressure compensated:

No high differential pressures – depth independent

Double isolation of chemicals:

Lower chance of leakage

Annulus space – filled with sea water

HOLD (contains

bladder)

17

SMT © 2016

Shuttle and Subsea Chemical Injection Unit

(SCIU) on seafloor

SCIU – yellow ‘cubes’ on Shuttle deck

18

SMT © 2016

Subsea Chemical Injection Unit (SCIU)

Pump/Battery Manifold

Bladder Tank Skid

OceanWorks Leverages and Costshares MWCC Experience with Subsea Dispersant Injection

19

SMT © 2016

Marine operations

Deploy and recover the shuttle payload through the use of a catenary connection method

to a pair of topside vessels.

o Minimal marine exposure + well within operational boundaries = safe

o Small vessels + short exposure = low cost

METHOD 5

STEP #4

TRANSISTION FROM

POSITIVE TO NEGATIVE

BUOYANT

REVSHEETSIZE DRAWING NUMBER

D CH104718 A41 OF 49

Operations:• Deploy to Seafloor• In-Situ Chemical Refill• Recover to Surface

20

SMT © 2016

System integration

Surface interface umbilical (power and comms)

SCIU Master Control Assembly

SCIUSupplemental

subsea chemical storage tank

Well

Shuttle

Shuttle deployment control assembly

Surface asset

21

SMT © 2016

CONOPS

Concept of operations developed and documented at level of detail of O&M

manual headings for all of the following modes of operation:

• Testing

• Storage

• Transport

• Deployment & connection

• Operation

• Surface refill

• Subsea maintenance

• Recovery

One of many RPSEA WPG review session

22

SMT © 2016

SCIU - DFMECA summary

“Yellow” risks:• Green Water Damage, mitigate by design

• ROV friendly design, mitigate by API 17H / best practices

• Pump fails, mitigate by EFAT testing and redundancy

• Pump leaks, mitigate by detection and redundancy

• Fluid connectors fail, mitigate buy using TRL 7 subsea connectors

• Ball valves fail open, mitigate by TRL 7 components, zero-leak connectors

• Control compromised, mitigate by TRL 7 components, A/B system redundancy

• Medium voltage converter failure, mitigate by TRL 7 components, redundancy

Published results available: Peer reviewed with 2 dozen SMEs in full day sessions

23

SMT © 2016

TRL - TRC

o A Bill Of Materials (BOM) for the entire system has been created

o A TRL analysis in accordance with the Shell TRL/TRC process has been performed

o All items that are not already at TRL 7 have a defined method to bring them to at

least TRL 4

24

VALIDATION Models, Simulations, CFD, Testing,

DFMECA Reviews, etc.

All identifiable risks were determined to be manageable and achieved overall TRL 4 with most components Commercial Off The Shelf (COTS)

Cargo Hold 1/5th Scale

Combined velocity & pressure

Simulation domain

Bladder 1/5th Scale

Video output of model simulation

Validation

25

SMT © 2016

Chemical / fabric compatibility; 3rd party validation

Chemical / fabric tests –leverage earlier work by

Stress

1. MeOH2. LDHI3. Scale Inhibitor4. Corrosion Inhibitor5. Asphaltene Inhibitor6. Dispersant7. Seawater

26

SMT © 2016

1/5th Scale Model of HOLD and Bladder

The bladders tested were attached with links at the levels with the HOLD.

Fluid densities were safely simulating using salt brine and fresh water

Over 30 SME participants during model demonstration

27

SMT © 2016

Results – operational performance

o The bladder behavior was consistent and repeatable; especially with

greater Sg differences.

o There was no observed detrimental bladder material behavior.

Bladder nearly full Bladder depleting with bottom doming upward

28

SMT © 2016

GRi Simulator

GRi and DSA have built a project simulator with analysis capability.

o GRi developed the simulator for project operational scenarios

• Operational planning tool

• Operational training tool

• Site specific met ocean data

• Job specific details

• Custom scenarios

o DSA developed the analysis module to operate within the GRi

simulator – ProteusDS

• Real-time line loads

• Real-time stresses Video link -simulation

29

SMT © 2016

Conclusions

The Shuttle System, utilizing industry standard kit, interfaces,

procedures, processes, and SMT patented technologies

provides:

- Safe, reliable and cost effective solution to long distance

tie-backs in up to 10,000 fsw

- Platform enabling a new architecture for subsea

development (particularly EOR)

30

SMT © 2016

Final report

Final report is a 130 page summary of work done. www.SafeMarineTransfer.com

Details are contained within the hundreds of appendices - selectively available for review w/ NDA

31

COLLABORATION & COOPERATION

Collaboration & Cooperation

32

World Marine of Mississippi Facilities

Management Systems & Statistics

Safety, Quality, Engineering,

Project Management / Project Controls

Extensive Project Experience

August 22, 2016

33

Acknowledgements / Thank You / Questions

Major Funding:

National Energy Technology Laboratory (NETL), United States Department of Energy through the Research Partnership to Secure Energy for America (RPSEA)

Additional funding & costshare contributions:

• DeepStar®• Baker Hughes Inc.• One Subsea• University of Houston• Alan C. McClure Associates• Fugro Geo-Consulting, Inc.• Energy Valley, Inc. • Chitwood Engineers• Canyon Offshore• GRi• OceanWorks, International

Acknowledgements / Thank You / Questions