INTSOK Annual Market Report (2011-2014) ANGOLA

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INTSOK Annual Market Report 2010 Main Markets - Angola 1.4 Well CUBEAUTO Chart S(ChartType:ColumnStacked ;Legend:Custom;GridLinesX:off;GridLinesY:off;LegendX:0;LegendY:0;Legend Rows:2;LegendCols:2;Palette:Default;PaletteText:off;MaxValue:6000) F(Country:Angola;On Off Shore:Offshore;INTSOK Category:Well) C(INTSOK Market Definition) R(Year:2004-2014) V(Value:USD million) Figure 6: Offshore Well Market by Definition – Angola Table 6: Offshore Well Market by Definition – Angola CUBEAUTO USD millionReport 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Rigs S(FontSize:6;Format:#,##0) and Drilling 695 1 058 1 196 2 042 2 292 F(Country:Angola;On Off Shore:Offshore;INTSOK Category:Well) Drilling C(Year:2004-2014) Systems 281 389 389 560 609 2 064 548 2 438 609 1 878 460 1 344 348 1 546 341 2 150 478 Downhole R(INTSOK and Market Well Definition 656 Table) 928 940 1 322 1 456 1 345 1 523 1 157 877 901 1 236 Total V(Value:USD million) 1 632 2 375 2 526 3 923 4 356 3 957 4 570 3 494 2 569 2 788 3 865 The well related market offshore Angola has traditionally been dominated by rig spend due to a high level of exploration drilling. The market grew steadily from 2004 to 2008. The financial crisis had a noticeable effect on the market as it dropped slightly in 2009. Development drilling for Pazflor (Total) and PSVM (BP), and infill wells in existing fields will grow the well market through 2010 but this will be followed by a period of less drilling before the market picks up again in 2014. 1.5 Operations CUBEAUTO Chart S(ChartType:ColumnStacked ;Legend:Custom;GridLinesX:off;GridLinesY:off;LegendX:0;LegendY:0;Palette :Default;PaletteText:off;MaxValue:4000;MajorUnit:1000;MinorUnit:1000) F(Country:Angola;On Off Shore:Offshore;INTSOK Category:Operations) C(INTSOK Market Definition) R(Year:2004-2014) V(Value:USD million) Figure 7: Offshore Operations Market by Definition – Angola Table 7: Offshore Operations Market by Definition – Angola CUBEAUTO Report S(FontSize:6;Format:#,##0) F(Country:Angola;On Off Shore:Offshore;INTSOK Category:Operations) C(Year:2004-2014) R(INTSOK Market Definition Table) V(Value:USD million) USD million 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Operational Services 459 489 585 842 1 026 809 737 778 699 713 994 Maintenance 443 471 562 809 985 772 702 743 666 680 956 EI&T 66 70 84 121 147 115 105 111 99 102 143 Logistics 316 436 481 742 825 733 808 645 487 551 717 Decommissioning 0 0 0 1 0 0 0 7 0 22 27 Total 1 284 1 465 1 711 2 515 2 984 2 428 2 353 2 284 1 951 2 068 2 837 Operations related spend has increased steadily offshore Angola as an increasing number of facilities have come on stream. As many of the services within this segment are exposed to capex fluctuations and price cuts forced on the suppliers by the operators in the wake of the financial crisis, there was a drop in 2009 from USD 3.0 billion to USD 2.4 billion. From 2009 the market is expected to decline towards 2013. Decommissioning is not a large market offshore Angola, but there is some smaller platform decommissioning work to be carried out in the period 2011-14. 6
INTSOK Annual Market Report 2010 Main Markets - Angola 1.6 INTSOK priority projects Block 14 Lianzi, Lucapa, and Negage projects – Chevron Block 14 is operated by Chevron (31% ownership) with partners Eni (20%), Total (20%), Sonangol (20%) and Galp Energia (9%). Block 14 has been through significant development activities in recent years, including the BBLT complex with the Belize-Benguela (BB) compliant piled tower (CPT) and the Lobito and Tomboco subsea tie backs to the BB CPT with first oil during 2006. During the second half of 2009, first oil was produced from the Tombua-Landana CPT. Chevron contemplates tie back of smaller discoveries to the new infrastructure. The most advanced opportunity is the Lianzi discovery located within the shared Angola- Congo Joint Development Area, 25 km west of the BBLT area in 900 m water depth. The expected development solution is subsea tie back to the BB platform. Chevron awarded FEED contract for the subsea system connecting pipelines and topsides modifications on the BB platform to Granherne in 2008. Preliminary requirements are expected to include 3 production and 3 water injection wells, 1 each of contingency production and injection wells, and 45 km pipelines to the BB platform. Peak production of 40 kbblpd is expected by 2014, subject to final investment decisions. The second opportunity in Block 14 is the Lucapa field, located in 1,200 m water depth. Chevron is expected to award a pre-FEED contract to assess 3 potential development scenarios including standalone FPSO, TLP with FSU, and TLP with FPSO. Partner Galp Energia expects the project to come online 2014 at rate of 100- 130 kbblpd. Chevron plans for FEED award by end 2010. The third opportunity is the Negage discovery from 2002 in the southwest portion of Block 14, located in 1,450 m water depth. Uncertainty on the reserves size and need for unitization and revenue sharing agreement between Angola and the Democratic Republic of Congo (DRC) continues to delay the project investment decisions. Chevron’s original preference was for a standalone FPSO, with early EOIs issued 2004 for a vessel with 1.5 mbbl storage, processing 75 kbblpd crude and 100 Mcfpd gas. An alternative solution is now though to include a 32 km subsea tieback to Eni’s planned FPSO in Block 15/06. Block 15 Kizomba Satellites Phase 1 – ExxonMobil Block 15 is operated by ExxonMobil (40% ownership) with partners BP (26.7%), Eni (20%) and Statoil (13.3%). Block 15 development activities to date include the Kizomba A, B, and C FPSOs and has made Block 15 one of the most prolific blocks in Angola, having produced 1 billion bbl oil by end 2009. Current development projects in Block 15 include satellite developments with subsea tie back of additional wells to the FPSOs. Phase I will include production from Clochas (discovered 2003) and Mavacola (2001) fields with subsea tiebacks of 5-6 wells to Kizomba A & B FPSOs, targeting 250 mbbl oil reserves, first oil 2013, and peak production of 140 kbblpd. ExxonMobil received government approval of the Phase I contractors during 2009. AMEC carried out FEED, and provided detailed design, procurement and logistics support services in conjunction with local JV partner Paragon Angola. Saipem won contracts for pipelines, umbilicals, risers and subsea installation. Oceaneering will provide electro-hydraulic steel tube umbilicals, while GE Vetco Gray will supply subsea production equipment, including deepwater tree connectors, manifolds, jumpers and connectors and controls equipment. Saipem is expected to commence drilling during 2011. Future phases for Block 15 include discoveries located near the current FPSO hubs, such as Bavuca, Reco-Reco, Vicango, Kakocha, and Mbulumbumba. These discoveries will most likely be tied in to the Kizomba C FPSO. 7
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INTSOK Annual Market Report (2011-2014) ANGOLA

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