Time to Think DifferentTime to Act Different

Greater Dunlin Area decommissioning and beyond

Greater Dunlin AreaA Brief History

• 195km NE of Lerwick, Shetland

• 4 fields

• Concrete Gravity Based platform in 150m water

• CGBS weight ~ 320,000 tonnes

• Topsides weight ~ 20,000 tonnes

• 45 platform and 16 subsea wells

• First oil 1978

1978 – What was going on?!

Dunlin Area – Life of Field ProductionA Long and Productive Operating Life Producing 522 mmboe over 37 Years

Fairfield & MCX take ownership

The Dunlin Alpha Platform

2100 x

Dunlin AlphaConcrete Base Footprint

Dunlin Area – Field Layout

Osprey

DunlinMerlin

Dunlin Decommissioning Project

Decommissioning Programme

• 4 decommissioning programmes approved & closed out with 1 pending (derogation case)

Plug & Abandonment

• Subsea wells – 16 fully plugged and abandoned

• Platform wells – 45 wells Phase 2 completed and 28 wells phase 3 completed to date

Subsea

• Recovered 13.6km of flexible WI pipelines, 3.5km of rigid pipelines, 6.9km umbilcals and cables

• Recovered 4 manifolds, 3 riser protection structures, 2 dummy wellhead and guide bases

• Recovered 4 bundle towheads and 1 intermediate towhead

• Disconnected 5 subsea spools on pipelines and removed to shore for recycling

• Recovered 580 concrete mattresses & 13,000 grout bags for recycling onshore

Topsides

• Preparations ongoing for removal of 20,000t topsides on reverse installation basis

Wells DecommissioningCase Study

Programme comprises the P&A of 45 platform wells and 16 subsea

wells.

• Age and complexity of wells, Fairfield faced a number of issues:

o Condition of completions on some platform wells

o Legacy subsea equipment was designed for diver intervention

o Programme crossing multiple winter seasons

• Fairfield took a collaborative “one team” approach and actively encouraged

everyone to produce innovative ideas and challenge conventional thinking

• Application of new technology where it gave real advantage e.g. reduced

milling operations through the use of cut and pull decreased well

abandonment time and development of ROV tooling eliminated need for diver

intervention

• Real time application of lessons learned from one well to the next enabled

continuous improvement

• Subsea work completed with an average cost per well below the OGA P10

and with exemplary HSE performance (no LTI’s)

Dunlin A - Platform Wells

• 45 platform wells and 3

Caissons in 48 Slots

• Includes >100 wellbores

Osprey - Subsea Wells

• 8 production wells

• 4 water injection wells

• 7km NNW of Dunlin

Merlin - Subsea Wells

• 3 production wells

• 1 water injection well

• 7km NW of Dunlin

Subsea Interface

• 3 different wellhead and

Xmas tree combinations

between16 wells

A crucial part of a multi-year decommissioning programme has involved the pulling of the installation’s 48 well conductors.(2018 – 2021)

• Due to age and condition many of the conductors had been supported over the years by temporary braces, clamps and sleeves (appurtenances)

• Removal of the conductors was more complicated as there was insufficient clearance for various appurtenances to pass through the modular support frame

• A collaborative and innovative solution was required from across our supply chain partners

• 7 possible options developed but decided on a hybrid solution which enabled Fairfield to be operational in just 9 months

• Adoption of new technology enabled platform well P&A and conductor removal scopes to run in parallel

• Removal of the clamps and braces was done whilst working on an underdeck

platform which can only be done during moderate weather conditions

Conductor RemovalCase Study

Some Context

£15.1bn decom

expenditure in UKCS alone over next 10

years

Well decom. accounts for

49% of

expenditure

658,000tTopsides to be

removed

Is decom an attractive market?

Treat as a liability or a core business?

How does the Energy Transition fit in?

Estimated Global Decommissioning Spend Over Next Decade

Source: Wood MacKenzie Lens, December 2020 Source: OGUK Decommissioning Insight 2020

Cost Reduction or Value Creation?

£39bn 2022 Target

£27bn £15bn £6bn £4bn

~£9-18bn ~£2-5bn ~£2-3bn ~£1-2bn

Well P&A 46%

Removals 26%

Subsea Infra.10%

Post CoPRunning

Cost7%

Reduce by Reduce by Reduce by Reduce by

(35-65%) (15-30%) (30-50%) (20-40%)

17% 21% 29% 12%Achieved to date

£59.7bn 2016 baseline

Source: OGA Decommissioning Estimate 2020

35%

Build

Own

Operate

E&P Company

DecommissionDecommissionDecom Operator

LiabilityBusiness

The Right Assets in the Right Hands

• Operators currently weigh up 3 key factors when assessing COP decisions and may have a natural E&P production bias

• In an Energy Transition world, environmental factors should also be considered

Inherent production bias and drive to meet MER

Indirect costs often overlooked

Based on historic estimates and conventional models

Add emission intensity as a 4th

decision driver

The Decom Trilemma

0

10

20

1997 2001 2005 2009 2013

CO2 Emission per barrel(kg CO2/barrel)

Example – Draugen Source: Rystad Energy

Solving the COP

Conundrum

Revisit COP decision making process

Rising to the ChallengeTime to Think and Act Different

We create value by managing, integrating and executing ultra-late life operations and decommissioning.

This is what we call…

Next Generation Decommissioning

Our Heritage

A uniquely powerful

combination of three

leaders in offshore

decommissioning

Fairfield Decom is the first and only Decom Operator in the North Sea.

With a unique, core focus on next generation decommissioning, we use

our combined capabilities to manage, integrate and execute the entire

scope of ultra-late life operations, creating value, enabling MER and

allowing operators to focus on E&P activities.

Our Corporate Culture

We are proud of our diverse heritage. Embracing and harnessing

the power of our differences we have aligned our vision, mission and

values to become a thought-leader on energy transition and to create

the perfect platform for collaboration.

Everything we do is

underpinned by a

shared vision and

set of values

Our vision is to be the innovative and

sustainable solution for the offshore

decommissioning industry.

Our mission is to manage and execute

the entire scope of late-life operations

and decommissioning – creating

efficiencies, managing risk, and enabling

Operators to concentrate their resources

on core E&P business activities.

We have developed a set of values that

ensures Fairfield Decom’s activities are

undertaken to the highest ethical

standards, with integrity, transparency

and honesty at the heart of the business.

VISION MISSION VALUES

INTEGRITY EXCELLENCE RESPONSIBILITY TEAMWORK COURAGE

Our sustainability framework is built upon the underlying

principles of the UN sustainability goals and the three pillars of

economy, society, and the environment otherwise referred to a

Profit, People, Planet

Our Sustainability Framework

Sustainability is an

integral part of our

everyday operations

We are a trusted, fair and

respectful employer, partner and

customer who wants to build a

sustainable business that will

positively impact our industry

and economy, leaving a positive

legacy for future generations.

Trusted, Fair

& Respectful

Mindful of the arena in which we

operate and the part we have to

play in the energy transition, we

constantly look for the most

efficient use and re-use of our

resources. We actively look to

reduce the energy intensity,

emissions and waste across our

business.

Climate & Energy

Transition

Health and safety is at the

forefront of very thing we

do. We strive to ensure healthy

lives, a safe work environment

and promote well-being for all.

Good Health

& Well-being

We harness the power of our

differences. We are open-

minded and strive to achieve the

right balance balance within our

business structure by embracing

our different cultures,

nationalities, ethnicities and

genders.

Equality &

Diversity

Excellence in Everything We Do

Decommissioning Programme (DP)

Preparation

Surveys & Studiesto support DP/ Scope/Method

Project MgmtCore Team

DP Management

Stakeholder Engagement

DP Reporting & Closeout

IM/IT & Support Services

JOA Mgmt

Regulator Liaison

Late Life Operations

Transition Management

Core Crew Deployment

Production Optimisation

Integrity Re-assessment

Decom Strategy

Power Systems

HSE Excellence

Workforce Engagement

Supply Chain Management

Commercial Operations

Decommissioning Project Management

Logistics, Aviation & Marine

Operations Team

Deck Crew

Licenses & Consents

Power Generation

Platform Services

Temporary Utilities

Integrity Mgmt, Inspection & Maintenance

Operations Specialist Services

Rig Upgrades

Well Inspection & Intervention Equip.

Surveys & Studies to support Well Programmes

Well Engineering & Project Mgmt.

Well Decommissioning

Drilling Units & Vessels

Operations Support

Specialist Services incl. wireline & coil tubing

Conductor Recovery

Cleaning & Recycling

Operations – Drain, Flush, Purge & Vent

Engineering Down –Physical Isolation

Engineering Down –Cleaning

Pipeline Cleaning & Pigging

Waste Mgmt.

Module, Process & Utilities Separation

Engineering Up – Temp. Utilities

Dropped Object Strategy

Waste Mgmt.

Structural Separation for Removal

Removal Preparation

Removal

Vessels

Sea-Fastenings & Transportation

Off-load and Load in

Waste Mgmt.

Preparation for Removal

Lifting & Removal

Vessels

Sea-Fastenings & Transportation

Off-load and Load in

Waste Mgmt.

Transfer Interface

Decontamination

Cleaning/Handling Hazardous Waste

Deconstruction

Reuse, Recycle & Disposal

Waste Mgmt. Accounting

Reporting

Studies to Support Subsea Programmes

Subsea Surveys

Subsea Project Mgmt.

Specialist Services

Subsea Decommissioning

Vessels

Seafastening & Transportation

Waste Mgmt. Accounting

Reporting

Renegotiable Pipeline Agreements

Cuttings Pile Management

Site Debris Clearance –

500m Zones

Pipeline Debris Clearance –

200m Corridors

Over-trawl Surveys

Legacy Monitoring Programme

Navigation Aids & Maintenance

Post COP Running Costs

Well Decommissioning

Facilities/Pipelines Permanent

Isolation/CleaningTopsides Preparation

Topsides Removal

Substructure Removal Onshore RecyclingSubsea Facilities & Pipeline Removal

Site Remediation & Post-Decom Monitoring

Thinking in Traditional Silos?

Decommissioning Programme (DP)

Preparation

Surveys & Studiesto support DP/ Scope/Method

Project MgmtCore Team

DP Management

Stakeholder Engagement

DP Reporting & Closeout

IM/IT & Support Services

JOA Mgmt

Regulator Liaison

Late Life Operations

Transition Management

Core Crew Deployment

Production Optimisation

Integrity Re-assessment

Decom Strategy

Power Systems

HSE Excellence

Workforce Engagement

Supply Chain Management

Commercial Operations

Decommissioning Project Management

Logistics, Aviation & Marine

Operations Team

Deck Crew

Licenses & Consents

Power Generation

Platform Services

Temporary Utilities

Integrity Mgmt, Inspection & Maintenance

Operations Specialist Services

Rig Upgrades

Well Inspection & Intervention Equip.

Surveys & Studies to support Well Programmes

Well Engineering & Project Mgmt.

Well Decommissioning

Drilling Units & Vessels

Operations Support

Specialist Services incl. wireline & coil tubing

Conductor Recovery

Cleaning & Recycling

Operations – Drain, Flush, Purge & Vent

Engineering Down –Physical Isolation

Engineering Down –Cleaning

Pipeline Cleaning & Pigging

Waste Mgmt.

Module, Process & Utilities Separation

Engineering Up – Temp. Utilities

Dropped Object Strategy

Waste Mgmt.

Structural Separation for Removal

Removal Preparation

Removal

Vessels

Sea-Fastenings & Transportation

Off-load and Load in

Waste Mgmt.

Preparation for Removal

Lifting & Removal

Vessels

Sea-Fastenings & Transportation

Off-load and Load in

Waste Mgmt.

Transfer Interface

Decontamination

Cleaning/Handling Hazardous Waste

Deconstruction

Reuse, Recycle & Disposal

Waste Mgmt. Accounting

Reporting

Studies to Support Subsea Programmes

Subsea Surveys

Subsea Project Mgmt.

Specialist Services

Subsea Decommissioning

Vessels

Seafastening & Transportation

Waste Mgmt. Accounting

Reporting

Renegotiable Pipeline Agreements

Cuttings Pile Management

Site Debris Clearance –

500m Zones

Pipeline Debris Clearance –

200m Corridors

Over-trawl Surveys

Legacy Monitoring Programme

Navigation Aids & Maintenance

Post COP Running Costs

Well Decommissioning

Facilities/Pipelines Permanent

Isolation/CleaningTopsides Preparation

Topsides Removal

Substructure Removal Onshore RecyclingSubsea Facilities & Pipeline Removal

Site Remediation & Post-Decom Monitoring

Daring to Think Different

Bridging The Capabilities Gap

Contractor CapabilityUltra-Late Life and Decom Operator

Fairfield Decom occupies a unique position in the market as

“Decom Operator”

Developed in response to industry need for specialist decom

companies

Resolves traditional conflict between E&P and decom activities

The new entity has been welcomed and encouraged by the

OGA, OPRED & HSE

Removes requirement for Operators to build up in-house teams

Enables Operator in-house resources to focus on core

business activities

Decom Execution Capability

Independent E&P and

Late Life ProducersIOCs

Production Focused E&P Companies

Asset Ownership / Operator Capability

Fairfield Decom bridges the gap

– blending operator experience

with contractor expertise

Our Value Proposition

Looking To The Future

• North Sea is a mature basin with ageing assets

• Oil and gas industry must be mindful of the climate change agenda and industry perception

• Energy transition is a key industry focus

• OGUK Roadmap 2035 looks at reducing carbon emissions, but also developing people and skills, driving technology and innovation, and growing the economy and exports

• Decommissioning as an industry is inherently aligned with principles of energy transition and a net zero future

• Huge potential for transferring and developing people within an exciting industry that is set to grow exponentially over the next ten years in the UK alone

• Fairfield Decom is a disruptor and innovator that has created a first of kind Decom Operatorentity that is ideally positioned to benefit from first mover advantage and act as an exemplar in the North Sea and beyond

We’ve taken the time to Think Different, now it’s time for industry to Act Different