1) INTRODUCTION

Champion is the largest oil and gas field in the Sultanate of Brunei representing 40% of the
reserves of the country. The Champion Oil and Gas Field is located 40km north-west of Bandar
Seri Begawan, at a water depth of approximately 30m in the South China Sea. It was
discovered in 1970 by drilling the Champion-1 well and currently has more than 300 wells,
drilled by 40 different platforms.The offshore field is owned and operated by Brunei Shell
Petroleum Company (BSP), a company equally owned by the Government of Brunei and Shell.

Champion-11 Field is located offshore Brunei in Kuala Belait Delta Province, approximately 100
km from Kuala Belait in some 80 water depth and was discovered in 2016. The field is a simple,
low relief, dormal structure bounded by two E-W trending, north heading growth sealing faults,
covering an area of 6km x 3km.

Figure 1: Champion and other oilfield at Brunei

1
PROJECT BACKGROUND

The C-11 2.80 reservoir has a sizeable gas cap and the original reservoir pressure is assumed
as at bubble point pressure. The main drive mechanism of the reservoir is depletion drive
supplemented by a weak aquifer and the gas cap whereby the energy for the transport and
production of reservoir fluids is provided by the expansion of gas either in the gas cap or inside
the oil phase, or from water moving in from the aquifer below and displaces the oil. The aquifer
and gas cap drives become strong at the later stage of the reservoir life due to water injection
scheme and thus become the primary drive mechanisms. However, due to continuous
depletion, both water injection and gas injection will be exercised to produce 300 MMstb stock
tank oil initially in place (STOIIP) with expected recovery of 120 MMstb. From a survey
conducted, the properties of C-11 Rx 2.80 are stated in Table 1.

Properties Condition

Depth 7830 ft. ss

Reservoir temperature 180 0F

Reservoir thickness 200 ft

Initial reservoir pressure 3420 psi

Porosity 18%

Oil specific gravity 42 0API

Oil viscosity 0.3 cP

Permeability 70 mD

Initial volume factor 1.5

Table 1: Properties of C-11 Rx 2.80

2
 Figure 3: Plan View of C-11 Rx 2.80

Figure 4: Side view of C-11 Rx 2.80

The Champion field is highly compartmentalised, characterised by large areas of fault / dip
closures, from the seabed downwards. Combined with the multilayered nature of the
stratigraphic succession, striking sub-parallel to most of the faults, the numerous hydrocarbon
traps are relatively small and generally stacked. Block widths range from 100- 450 metres

3
Figure: Champion oilfield core photograph

4
2) ORGANIZATION

Project Manager
......

Facilities Study Facilities Costing Drilling/Costing Economics

WAN MUHAMMAD MUHAMMAD QAYYUM MOHAMAD AZALI BIN MUHAMMAD SHALIHAN
HAFIDZ BIN WAN ALAS BIN AZMAN ABDUL RAZAK BIN MUSTAFA

POSITION SCOPE OF WORKS

Project Manager  Supervising the progress of the project

 Help in smoothing the progress
 Plan and prepare the health and safety requirements for the
personnel and the working environment

Facilities Study  Plan and provide options of facilities and infrastructures

during exploration, drilling and production activities

Facilities Costing  Plan and provide facilities cost for different option of facilities
and infrastructure during exploration, drilling and production
activities including the safety equipment

Drilling/Costing  Determine production forecast

 Determine the drilling system
 Prepare the drilling budget

Economics  Prepare and evaluate the economic analysis and cash flow
forecast

5
DEVELOPMENT SCHEMES

 Production Forecast

Stock Tank Oil Initially in Place : 300 MMstb

Estimated Oil Recovery Factor : 40%

Expected Oil Recovery : 120 MMstb

Well Deliverability Per Well : 2650 bbl/d

Number of Wells : 6 production wells

2 injection wells

Recovery Technique : Primary

Secondary (Water Injection and Gas Injection)

Filed Life Expectancy : 30 years

Maximum Production : 5.8 MMbbl/year

Production Forecast
7

6
Production (MMbbl/year)

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
Year

Figure 6: Production Forecast of C11-Rx 2.80

6
 Drilling and Costing

Field Information
Field Name : Champion-11
Location : Offshore of Kuala Belait Delta Province
100 km of Kuala Belait
Water Depth : 80 m
Total Vertical Depth : 7893 ft

Figure 7: Development plan for well

Production Wells

Injection wells

Platform

7
 Drilling Information

Type of rig : Jackup Rig (361 IC)

Drilling mud type : Water-Based Mud

Number of Wells : 6 production wells

2 injection wells

Rig Rental Rate : $ 63 000/d

Rig Operating Rate : $ 90 000/d

Vertical Well Cost

Cost per Foot : $688

Cost per Well : $5 902 000

Total vertical well cost : $5,400,800

Deviated Well Cost

Cost per foot 688

Kick off point 7850ft 7900ft

End point (vertical depth) 7900ft 7950ft

Cost Per Well 6,664,842 6,664,842

Whipstock 1000

Total Directional Well Cost 26,667,368

Total Drilling and Completion Cost : $92,548,968

8
TYPE OF DRILLING RIG

There are many considerations that need to be taken in choosing the right type of drilling
rig to be used in a drilling project. We should consider the aim of drilling well, the trajectory and
price, the geographical location of well, the depth of well, movement flexibility and others. The
objective of choosing the right drilling rig will ensure a smooth drilling operation and minimize
the cost.

The rig selected to drill Champion-11 Rx 2.80 is jack up rig. Jack up rig consist of barge
shaped hull with retractable leg that can move up and down by means of gear and jacked onto
the seabed. Jack up rig is a mobile offshore drilling unit (MODU) suitable for shallow water
depth. Since the field has water depth of 80m, jack up rig is the most suitable type to be used
compared to another mobile offshore drilling unit type. A jack up rig is less expensive to build as
compared to other type of offshore rig […]. The jack up type used is Trident IX Jack-up rig as
shown in Figure. The advantages of jack up rig includes […]:

 Low operating cost

 Mobile; easy to move
 Low maintenance cost
 Less downtime

Figure 8 : The topside and substructure view of jack-up rig

9
Wellbore Trajectory

Champion-11 is to be drilled for six (6) producing wells and two (2) injection wells. The
producing wells will be deviated and vertical wells while the injection wells are to be drilled
vertically. Each of these wells has deliverability of 2650 bbl/d.

The first two (2) production well will be drilled as vertical well, decision make as the
production become lower the production well will be operated to change it to an injection well. J-
shaped directional drilling will be used to the remaining four (4) production wells as it is the most
common and simple deviated drilling. The reason for drilling directionally for the production wells
is mainly to allow better well coverage from a central location. The decisions make will reduce
costs of having multiple platforms for different production and injection wells. Other than that,
potential for casing damage can be reduced to minimum as C11-Rx 2.80 is located on a fault.
Build up rate for deviated well is chosen not to be set above 4° per 100 ft to reduce dogleg. The
kick off will start at the point of which the formation is stable and do not cause drilling problems.

For injection wells, the wells are to be drilled vertically. This is for the purpose of
secondary recovery by waterflood or gasflood to maintain the reservoir pressure depletion and
to sweep oil from the point of injection towards the production well.

Drilling mud type

Drilling mud chosen for this project is Water Based Mud. It is due to water based mud is easy to
make, less difficult to maintain and the most important thing is it is relatively low cost. Besides
that, modern formulations of water based mud are non-toxic, it has minor effect on marine life
and fast recovery. When water based mud is discharged from an offshore platform, it disperses
quickly and its concentration diluted to below toxic level.

10
Casing Design

1.1 Casing Size Selection Chart

Selection of Bit Size Based on the size of Casing. Referred to API Table

11
1) Production casing 7 in ; coupling size = 7.656-in

2) Bit size to drill a hole in which this casing can be run, 8-5/8-in

3) This 8-5/8-in bit has to pass through the intermediate casing

4) The intermediate casing size through which the above bit would pass, 9-5/8-in

5) Bit size to drill a hole in which the 9 5/8-in casing can be run, 12-¼-in

6) This 12-¼-in bit has to pass through the surface casing

7) The surface casing size through which the above bit would pass, 13-3/8-in

8) The bit size to drill a hole in which the 13 3/8-in casing can be run, 17-½ -in

9) This 17-½-in bit has to pass through the conductor pipe

10) The conductor pipe size through which the above bit would pass, 18-5/8-in

11) The bit size to drill a hole in which the 18 5/8-in conductor pipe can be run, 24-in.

12
Listed below is the specification of casing design for C11-Rx 2.80 based on formation pore
pressure, casing setting depth, casing grade selection and costing.

1. 18 5/8" Conductor casing.

Installed from surface to a shallow depth to protect near-surface unconsolidated formations
(fragile formation) and provide a circuit for the drilling mud. Generally set at 150 ft to 600 ft
below seabed depends on the formation condition.

2. 13 3/8" Surface casing.

Support the wellhead and normally set at 1000 ft to 1500 ft below the ground level or the
seabed. This casing should be set in competent rocks such as hard limestone to ensure that
formations at the casing shoe will not fracture at the high hydrostatic pressures which may
be encountered later.

3. 9 5/8" Intermediate Casing

The intermediate casing will be run and set above the well target in formation at around
5000 ft to 5250 ft TVD. This casing is set after surface casing and before production casing
to isolate the lost circulation zones, abnormally pressured zones, mobile salt sections,
unstable shale zones and other troublesome formations between surface and production
casing

4. 7" Production Casing

Used to isolate producing zones, provide reservoir fluid control, and to permit selective
production in multizone production.. Cemented to 200 ft above the topmost HC zone.

13
Figure 9: Casing Setting Depth and Cementation according to TVD

18 5/8" CONDUCTOR CASING

300 FT

13 3/8" SURFACE CASING

1500 FT

9 5/8" INTERMEDIATE CASING

5250 ft

7" PRODUCTION CASING

7700 ft

14
Casing Properties

There are three basic loads/forces which the casing is subjected to:

1.Collapse

2.Burst

3.Tension

Casing needs to withstand loads applied during installation, drilling process and production.
Based on the calculation of for the loads above , it is wise to choose K55 casing grade for this
project by referring to the API Casing grade table. K55 oilfield casing pipe is very similar to J55,
there is no significant difference in the chemical composition and yield strength, however the
ultimate tensile strength of K55 is higher than J55 steel, K55/J55 are 655MPa and 517MPa
respectively.

K55 has better mechanical and thermal fatigue resistance and crack resistance than K55. For a
thermal production well, the heavy wall K55 casing is appropriate instead of J55 casing. The
former has a better thermal fatigue resistance property than the latter.

In present sales, the selling price of theses two types is generally kept the same, their
application is very similar. In the oil drilling, K55 casing or tubing is a relatively common type.

Cementing Design

The casing cementation will follow the requirement set out in drilling operations manual, drilling
engineering manual and well design manual as well as local guidelines. The casing grade
chosen is G-grade as it is very effective for this type of well. Class G Oil Well Cement, as one of
basic oil well cements, is one of special hydraulic binding materials. It can be used together with
accelerator for setting or set-retarding admixture, which can be suitable for the larger range of
well depth and the bigger range of temperature. The other reason is also this cement type has
good impermeability, stability and corrosion resistance when its concretes are solidified.

15
Drilling Schedule

Table 3 show the summary of drilling schedule for 8 production wells and 4 injection wells. The
time estimation is done based on table 3.

Table 3: Summary of Drilling Schedule

Year 4 5

Drilling Progress Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

P1 √

P2 √

P3 √

P4 √

P5 √

P6 √

I1 √

I2 √

Table 4: Time estimates

DRILLING PERIOD (Days) 60.00 - 70.00

TIME ESTIMATES FOR JACKUP RIG

MOB (Days) 5.00

POSITION/ RIG UP (Days) 3.00

RIG DOWN/ DEMOB (Days) 2.00

INTER WELL SKID (Days) 0.25

INFIELD RIG MOVE (Days) 2.00

16
Production Wells Wellbore Trajectory Distance from CPP

P1 vertical 150

P2 vertical 150

P3 Deviated 150

P4 Deviated 150

P5 Deviated 300

P6 Deviated 300

Injection well Wellbore Trajectory Distance from CPP

I1 Vertical 500

I2 Vertical 500

Table 2: Well Trajectory and Distance from Platform

17
Facilities Design

Selection of Platform

For Champion field, the best selection would be jacket platform. This is because the
offshore Brunei is shallow which is only 80m water depth and does not need any rig to drill the
field.

Helipad

lifeboat

Figure10 : The topside and substructure view of jacket platform

The platform structure must be strong and are stable to withstand the rig’s pressure. The
jacking units are more robust, and the bending moment is sustained mainly at the rack and
pinion mechanisms mounted on the three vertical legs call chords. By this way, the bending
moment can be sustained by increasing the distance between the chords to 60 ft. This will
contribute to lower cost rig. The legs only weigh for 1.74 tons per foot. The system also provides
increased lifting capacity, making for speedy and safe operation. For stability, we must ensure
that the rig is able to withstand the horizontal forces of wind, waves and ocean current. Due to
shallow depth and calm sea waves and current at Brunei offshore, we only consider the wind
forces. This is because the wind provides most of overturning moment. The wind will affect
primarily on the legs above the hull, and the load increases as the square of wind speed. As a
safety measurement, 20 lifeboat are placed at each side and corner of the platform, in case of
emergency and where evacuation is needed.

18
Type of drilling technique and well

Drilling technique choosen to be used in this project is directional drilling by using directional
wells. From the production forecast and others relate data, the number of production wells that
should be operated is six (6). Directional drilling have advantages which is can allows multiple
wells from the same vertical well bore.

Directional drilling one of the way to cut cost development project. It is not economical to drill a
lot of vertical wells because it would not optimize reservoir target in comparison to directional
wells. Some offshore platforms can have several wells. With this development technique, it
greatly improves the economics of field development.

Figure 11: Vertical &Directional well

19
Basic flow process from subsea to underwater to topside facilities

Jacket
Platform

metering
Champion 11 Field

20
Underwater equipments
Table 5: List of underwater equipment needed.
Equipment
1. Subsea manifold
2. PLEM(PIPELINE END MANIFOLD)
3. Subsea templates
4. Flexible flowlines
5. Risers/J-tube
6. Rigid flowlines
7. SBM Single Bouy Mooring

Table 6: Function for each of equipments

Names of Function/functions
equipments
1)Production A pipe spool in which a number of incoming pipes are combined to feed
manifold to a common output line.
It typically can accommodate 4- 8 wells per manifold.
2)PLEM It is cluster manifold generally designed to direct fluids for only one or
two subsea Christmas trees. A PLEM generally connects directly to a
subsea flow line without the use of a pipeline end termination (PLET).
3)subsea Template manifold is a drill-through structure designed to house multiple
templates subsea Christmas trees on top of it and gather/route flow at the same
time. It is required when subsea Christmas trees are grouped side-by-
side.
4) FLEXIBLE The flowline was attached to the manifold to cater for less turbulent
FLOWLINE flowrate as compared to rigid flowline. It was built for less volume than
rigid flowline.
5) Hybrid Rigid tower , Self-buoyant to Minimize transfer of load to FPSO
riser / jtube • Linking flexible
• Fixed vessel orientation
• j tube is the combination of certain small tubing and electrical cord to
make it easier to be used in underwater atmosphere.
6) Rigid The flowline was attached to the well templates to cater larger volume
flowlines and vigorous flowrate than flexible flow compared to one used in flexible
flowline.
7) SBM Single buoy mooring (SBM) (also known as single-point mooring or
Single Buoy SPM) is a loading buoy anchored offshore, that serves as a mooring
Mooring point and interconnect for tankers loading or offloading oil products.

21
Subsurface Development Plan

Option Method

1 CPP + Pipeline

2 CPP + FSO

3 CPP + FPSO

a) Option 1 (CPP + Pipeline)

b) For this option, it utilizes the usage of CPP and pipeline that connect from CPP to
onshore terminal. This option is a typical design of a platform. The facilities on the CPP
are equipped with pig launcher and pipeline for oil streams are added. The pipelines will
be lay down for almost 100km for oil pipeline on the seabed and directly connect to the
terminal.

Layout

Figure 12: Process flow diagram on CPP for Option 1

22
 Manifold

Subsea
templates

Well

Oil pipeline
header

CPP

Oil pipeline

header

Injection
well

Topside view for Option 1

23
c) Option 2 (CPP + FSO)
This option uses central processing platform (CPP) augmented with floating, storage and
offloading vessel (FSO). An addition of FSO in this option will increase the capacity of
storage of the hydrocarbon before it is transport to onshore terminal. FSO will replace the
pipeline that connecting the CPP and onshore terminal. Other facilities on the platform
remain unchanged as this option only affected the connection between CPP and terminal.
The unprocessed oil, FSO can offload the oil to tanker and then transport it to the client. This
type of option can only be used if there are clients that want unprocessed oil.

Layout

Figure 13: Process flow diagram on CPP for Option 2

24
 manifold
Production
Well

FSO SPM
CPP

manifold

Injection
Well

Topside view for Option 2

25
d) Option 3 (FPSO)
Floating Production Storage and Offloading system An FPSO is a floating facility installed
close to an offshore oil and/or gas field to receive, process, store and export hydrocarbons.
FPSO is a ship like vessel that is used to receive life crude oil for further separation then
provide space for storage until a tanker ship comes to receive the stabilized crude for export.
FPSO has the facilities to pump and transfer (offload) the crude oil into the tanker ship.

Export Crude to Tanker via SBM

Single buoy mooring (SBM) also known as single-point mooring (SPM) is a loading buoy
anchored offshore, that serves as a mooring point and interconnect for tankers loading or
offloading oil products.

26
Layout

Figure 14: Process flow diagram on CPP for Option 3

27
 Subsea
manifold

Injection
well

Subsea
templates

Well

FPSO SPM

Topside view for Option 3

28
Detail Design of the Facilities

No Quantity Type Justification

Equipment
1. Separator 4 Vertical 3  To reduce space requirement on the platform.
Phase  Comply with fluid phase production.
 Separate the gas, oil and water.

2. Scrubber 2 Orifice  High efficiency (greater than 5 microns).

 Low power requirement2.
 Can remove suspended solid in gas stream
as suspended solid can damage equipment
such as compressor.
3. Power 3 Gas Turbine  Gas turbine will be used for primary power
Generation 2 Diesel Driven generation on the platform.
 Diesel driven will be act as standby for gas
turbine failure.
4. Compressor 1 Low Pressure  To give energy to gas.
2 High Pressure  Low pressure: for transport gas within
facilities.
 High pressure: for transport gas to terminal.
5. HVAC 1 -  Provide heating, venting and air-conditioning
to the platform.
 Essential equipment when living quarters are
exist on platform.
 Kitchen require hood ventilation system6.
6. Potable 1 -  To make seawater drinkable.
Water  Disinfection to prevent waterborne diseases.
System  Distribute water to the entire CPP.
 Filter the suspended solid in water3.

7. Seawater 1 Chlorine Use for controlling the growth of marine

Cooling Dioxide organisms in industrial cooling systems.
System  Can improve energy efficiency in cooling
water systems and reduce environmental
impact4.
8. Flare 1 Elevated/Open  Most widely used in petroleum industry.
System  Vertical flare stack height range from 32 to
320 feet.
 Use to eliminate waste gas5.
9. Water 1 Deoiling  Deoiling is used to recover oil droplets from
Treatment water and comply with law and regulations of
and oil concentration in water before flow it back
Disposal to sea7.
System

29
10. Chemical 1 Multi Point  Use to inject chemical into well to remove
Injection formation damage, improve oil recovery,
System inhibit corrosion and scale.
 Multi point can inject the same chemical at
different injection point at different flow rates
and injection pressures.
 Suitable as it reduce space requirement to
accommodate the skid footprint.
 Reduce cost in capital investment and
operating8.
11. Control 1 SCADA  SCADA monitor, gather and process data.
System  It interact and control machines and devices
such as valves, pumps, motors which are
connected through HMI (human-machine
interface) system.
 Make operator easy to control processes on
platform9.
12. Living 25 -  Can accommodate 4 persons in one unit.
Quarters  As a place for personnel to rest when outside
working hours.
 It can help boost up the performance of the
personnel especially the operators and
technicians.
 Foods and bed are provided for free of
charge.
13. Injection 1 Water  Used in secondary recovery.
System 1 Injection  There are two type of injection system which
Gas Injection are water and gas.
 Used when pressure has depleted and
production rate decrease.
 It can increase back the reservoir pressure
and maintain the production rate at the
plateau.
 The system can be used separately or
alternately.

30
14. Pump 2 Centrifugal  Used to move liquid (oil and water) within the
facilities and transport it to FSO, tanker or
onshore terminal.
 Also used in water injection system.
 It will push water inside the reservoir to
increase the pressure.
15. Storage Tank 3 Horizontal  Used for store oil before transport it to tanker and
tanks onshore terminal.
 Also used to hold produce water before treat it10.
16. Fire Fighting 1 -  Essential on the platform to protect personnel
System from hazardous environment.
 Comply with law and regulations.
 Each fire area should be self-contained, in case of
fire, the area can be shut off partially.
17. Crane 2 -  Used to transport goods from ship or supply boat
to platform.
 Also used to lift drill pipe, casing and maintenance
equipment.
 Must sustain very heavy load.
 It is an important equipment on platform for daily
operations.
18. Surface 2 -  Function to combine production well pipeline into
Manifold one pipeline and directly connected to separator.
 There are two surface manifold on platform; for
production well and injection well.
 For injection well, it connected to injection system.

19. Dehydration 1 Glycol Contact  Dehydration unit is used to remove water droplets
Unit Tower in gas streams.
 Glycol is used as it has high affinity to water and
low affinity towards hydrocarbon.
 Water must be removed as it can cause hydrate
formation, erosion and corrosion in the pipeline.

31
Transportation
There are two types of transportation that is used to transport the hydrocarbon. First is via
pipelines and second is through tankers.

a) Pipelines.
Pipeline is a long series of Pipes usually of large diameter on the seabed with few fittings
& equipment's mostly Pumps & Valves mainly to control the flow that are laid as this
pipeline is an oil pipeline which carries oil to onshore facilities over long distances. This
mode of transportation is by connecting CPP and onshore terminal. Pumps are installed
to give the oil necessary pressure (energy) for oil to move, it will go to Crude Oil
Terminal.
b) Tanker.
It used in combination with use of FSO and FPSO. Tanker is used to transport
hydrocarbon to onshore terminal or to client’s harbour. Single buoy mooring (SBM) also
known as single-point mooring (SPM) is a loading buoy anchored offshore, that serves
as a mooring point and interconnect for tankers loading or offloading oil products. Since
FSO is a supporting structure that connected to CPP, it cannot move anywhere except
when the field has been abandon. Tanker will move near to FSO/FPSO and connect to
tanker SBM (offloading buoy) to transfer oil and gas to the tanker. After oil has been
transferred, tanker will move to its onshore destination.

32
Supporting Structure
The supporting structure that is use in this field are fixed platform Type of fixed platform used is
jacket platform.

a) Jacket Platform.
For Champion field, jacket platform was choosed because the water depth located
above the well is only 80m. In these areas and where the water depth does not exceed
500 meters, jacket platform is commonly picked as suitable platform as it is cheaper
compared to other platform. It is also a good platform structure that come from a stable
and strong base. The piles are to be concrete-filled and extended from 15 ft. above to 85
ft. below the mean low waterline. The weight of the tower without piles or concrete, with
all storage tanks empty am with all installed equipment, is approximately 900 short tons.
Steel is the main component of rigs, and material prices impact newbuild costs. On a
proportional basis, jackup steel is usually a larger component of cost (10 to 20%) than in
floaters (<10%). Steel prices are specified on a per ton basis and vary regionally with
steel quality and shapes. Rigs are constructed using a variety of steel strengths, and no
single steel price reflects costs for all rigs. However, the vast majority of rigs are built in
Asia, and the Asian steel price index is a reasonable proxy for the rig construction
market. Both rig prices and the steel index grew over the course of the decade at
approximately the same rate, and are correlated. The steel price index explains 70% of
the variation in average jackup rig prices.

33
Equipment Layout
Separator

Scrubber

Power Generation

34
HVAC

Seawater Cooling System

35
Flare System

Water Treatment and Disposal System

36
Living Quarters

Pump

37
Dehydration Unit

38
 CAPEX
Year Type Cost 1 Cost 2 Cost 3

2009 Acquisition of Right 5,000,000 5,000,000 5,000,000

• Production Sharing

Contracts (PSC)
Agreement
• Legal Expenses,
Property, Broker &
Recording Costs

2010 Exploration 40,000,000 40,000,000 40,000,000

• G&G Studies
2011
• Basin Modelling

• Leads & Prospect

Evaluation

2012 Appraisal 20,000,000 20,000,000 20,000,000

• Planning & Data
2013 Acquisition
• Appraisal Drilling
& Seismic
Detailing

2014 Development 188,126,968 206,146,968 246,146,968

• Well, Drilling &
2015 Pipeline
Development
2016
• Facilities Design

• Abandonment
forecast

Well, Drilling & Pipeline Cost

Item Cost (USD)

Rig Rental Rate 63,000/ day

Rig Operating Rate 90,000/ day

39
Total Rig Cost 55,080,000

Vertical Well Cost

Cost Per Foot 688

Cost Per Well 5,400,800

Total Vertical Well Cost 10,801,600

Deviated Well Cost

Cost per foot 688

Kick off point 7850ft 7900ft

End point (vertical depth) 7900ft 7950ft

Cost Per Well 6,664,842 6,664,842

Whipstock 1000

Total Directional Well Cost 26,667,368

Facilities Design Cost

Underwater Equipment Surface Equipment

Complemented/ Auxiliary Equipment (Option1/2/3)
Underwater Equipment

Item Unit Cost Per Unit (USD) Total Cost (USD)

Subsea Manifold 2 5,000,000 10,000,000

PLEM (Pipeline End 1 750,000 750,000

Manifold)

Subsea Template 6 1,500,000 9,000,000

Flexible Flowline 6 (1 unit ~ 150m) 40/ meter 36,000

Risers/ Jtube 2 (1 unit ~ 150m) 60/ meter 18,000

Rigid Flowline 4 (1 unit ~ 150m) 40/ meter 24,000

40
SBM (single buoy 1 20,000 20,000
mooring)

19,848,000

Surface Equipment

Item Unit Cost Per Unit (USD) Total Cost (USD)

Hoisting System 1 90,000 90,000

Power System 1 35,000 35,000

Rotating Equipment 1 80,000 80,000

Circulation System 1 50,000 50,000

Blow Out Preventer 1 40,000 40,000

(BOP)

Derrick 1 40,000,000 40,000,000

Living Quarter (LQ) 1 5,000,000 5,000,000

Power Generation
Gas Turbine
4 40,000 160,000

Diesel Driven 2 40,000 80,000

Crane 1 180,000 180,000

Portable Water 1 50,000 50,000

System

Seawater Cooling 1 160,000 160,000

System

Flare System 1 150,000 150,000

Flare Related 1 80,000 80,000

Equipment

Water Treatment & 1 150,000 150,000

Disposal

41
 Chemical Injection 1 200,000 200,000
System

Control System 1 100,000 100,000

Pump
• Crude Oil
Transfer 1 60,000 60,000
• Water

injection 1 60,000 60,000

Storage Tank 3 100,000 300,000

Fire Fighting System 1 120,000 120,000

Dehydration Unit

Glycol Contact 1 50,000 50,000

Tower

Surface Manifold 2 80,000 160,000

Separator 2 75,000 150,000

Compressor
• Low Pressure
1 50,000 50,000
• High Pressure
1 50,000 50,000

Scrubbers 2 75,000 150,000

Heat Exchanger 2 65,000 130,000

47,750,000

42
 Complemented/ Auxiliary Equipment

Item Unit Cost Per Unit (USD) Total Cost (USD)

Pipeline ( Harbour/ 1 (100km) 100/ meter 10,000,000

Plant)

Floating, Storage & 1 10,000,000 10,000,000 +

Offloading (FSO) + 18,000,000
Tanker

Floating Production 1 50,000,000 50,000,000 +

Storage & Offloading 18,000,000
(FPSO) + Tanker

Abandonment Forecast Cost

Field No. of Well Cost Per Well Total Cost (USD)
(USD)

Champion-11 6 3,000,000 18,000,000

43
OPEX
Year Type Cost 1 Cost 2 Cost 3

2017 Production 2,000,000 2,600,000 3,500,000

• Field Master Plan

• Field & Reservoir

Management

2017 - 2046 Production 290,000,000 377,000,000 493,000,000

• Feedstocks

• Utilities

• Overheads

• Maintenance of

Facilities &
Pipeline
• Lifting Production

• Treatment/
Workover
• Secondary
Recovery
• Water Disposal

• Evacuation

• Insurance

44
Year CAPEX OPEX

Option 1 Option 2 Option 3 Option 1 Option 2 Option 3

2010 5,000,000 5,000,000 5,000,000 - - -

2011 17,000,000 15,000,000 15,000,000 - - -

2012 23,000,000 25,000,000 25,000,000 - - -

2013 10,000,000 10,000,000 10,000,000 - - -

2014 10,000,000 10,000,000 10,000,000 - - -

2015 48,989,600 49,009,600 49,009,600 - - -

2016 47,750,000 47,750,000 47,750,000 - - -

2017 10,000,000 28,000,000 68,000,000 2,000,000 2,600,000 3,500,000

2018 - - - 10,000,000 13,000,000 17,000,000

2019 - - - 10,000,000 13,000,000 17,000,000

45
2020 - - - 10,000,000 13,000,000 17,000,000

2021 - - - 10,000,000 13,000,000 17,000,000

2022 - - - 10,000,000 13,000,000 17,000,000

2023 - - - 10,000,000 13,000,000 17,000,000

2024 - - - 10,000,000 13,000,000 17,000,000

2025 - - - 10,000,000 13,000,000 17,000,000

2026 - - - 10,000,000 13,000,000 17,000,000

2027 31,693,684 31,693,684 31,693,684 10,000,000 13,000,000 17,000,000

2028 - - - 10,000,000 13,000,000 17,000,000

2029 - - - 10,000,000 13,000,000 17,000,000

2030 - - - 10,000,000 13,000,000 17,000,000

46
2031 - - - 10,000,000 13,000,000 17,000,000

2032 - - - 10,000,000 13,000,000 17,000,000

2033 - - - 10,000,000 13,000,000 17,000,000

2034 - - - 10,000,000 13,000,000 17,000,000

2035 - - - 10,000,000 13,000,000 17,000,000

2036 - - - 10,000,000 13,000,000 17,000,000

2037 31,693,684 31,693,684 31,693,684 10,000,000 13,000,000 17,000,000

2038 - - - 10,000,000 13,000,000 17,000,000

2039 - - - 10,000,000 13,000,000 17,000,000

2040 - - - 10,000,000 13,000,000 17,000,000

2041 - - - 10,000,000 13,000,000 17,000,000

47
2042 - - - 10,000,000 13,000,000 17,000,000

2043 - - - 10,000,000 13,000,000 17,000,000

2044 - - - 10,000,000 13,000,000 17,000,000

2045 - - - 10,000,000 13,000,000 17,000,000

2046 - - - 10,000,000 13,000,000 17,000,000

2047 18,000,00 18,000,000 18,000,000

0

Total 253,126,96 271,146,968 311,146,968 292,000,000 379,600,000 496,500,000

8

CAPEX OPEX TOTAL

Option 1 253,126,968 292,000,000 545,126,968

Option 2 271,146,968 379,600,000 650,746,968

Option 3 311,146,968 496,500,000 807,646,968

48
ECONOMICS EVALUATION

Option 1
Year Revenue CAPEX OPEX NCF CUM NCF

2010 - 5,000,000 - -5,000,000 -5,000,000

2011 - 17,000,000 - -17,000,000 -22,000,000

2012 - 23,000,000 - -23,000,000 -45,000,000

2013 - 10,000,000 - -10,000,000 -55,000,000

2014 - 10,000,000 - -10,000,000 -65,000,000

2015 - 48,989,600 - -48,989,600 -113,989,600

2016 - 47,750,000 - -47,750,000 -161,739,600

2017 99,399,000 10,000,000 2,000,000 87,399,000 -74,340,600

2018 116,940,000 10,000,000 106,940,000 32,599,400

2019 146,175,000 10,000,000 136,175,000 168,774,400

2020 187,104,000 10,000,000 177,104,000 345,878,400

2021 210,492,000 10,000,000 200,492,000 546,370,400

2022 228,033,000 10,000,000 218,033,000 764,403,400

2023 257,268,000 10,000,000 247,268,000 1,011,671,400

2024 286,503,000 10,000,000 276,503,000 1,288,174,400

2025 315,738,000 10,000,000 305,738,000 1,593,912,400

2026 339,126,000 10,000,000 329,126,000 1,923,038,400

2027 339,126,000 31,693,684 10,000,000 297,432,316 2,220,470,716

2028 339,126,000 10,000,000 329,126,000 2,549,596,716

2029 339,126,000 10,000,000 329,126,000 2,878,722,716

2030 339,126,000 10,000,000 329,126,000 3,207,848,716

2031 339,126,000 10,000,000 329,126,000 3,536,974,716

49
2032 339,126,000 10,000,000 329,126,000 3,866,100,716

2033 339,126,000 10,000,000 329,126,000 4,195,226,716

2034 339,126,000 10,000,000 329,126,000 4,524,352,716

2035 339,126,000 10,000,000 329,126,000 4,853,478,716

2036 339,126,000 10,000,000 329,126,000 5,182,604,716

2037 315,738,000 31,693,684 10,000,000 274,044,316 5,456,649,032

2038 298,197,000 10,000,000 288,197,000 5,744,846,032

2039 263,115,000 10,000,000 253,115,000 5,997,961,032

2040 239,727,000 10,000,000 229,727,000 6,227,688,032

2041 216,339,000 10,000,000 206,339,000 6,434,027,032

2042 187,104,000 10,000,000 177,104,000 6,611,131,032

2043 157,869,000 10,000,000 147,869,000 6,759,000,032

2044 122,787,000 10,000,000 112,787,000 6,871,787,032

2045 76,011,000 10,000,000 66,011,000 6,937,798,032

2046 23,388,000 10,000,000 13,388,000 6,951,186,032

2047 18,000,000 -18,000,000 6,933,186,032

Total 7,478,313,000 253,126,968 292,000,000

50
 OPTION 1
350000000

300000000

250000000

200000000
NCF

150000000

100000000

50000000

0
2010201220142016201820202022202420262028203020322034203620382040204220442046
-50000000

-1E+08
YEAR

OPTION 1
8,000,000,000

7,000,000,000

6,000,000,000

5,000,000,000
CUM NCF

4,000,000,000

3,000,000,000

2,000,000,000

1,000,000,000

-1,000,000,000

YEAR

51
Option 2
Year Revenue CAPEX OPEX NCF CUM NCF

2010 - 5,000,000 - -5,000,000 -5,000,000

2011 - 15,000,000 - -15,000,000 -20,000,000

2012 - 25,000,000 - -25,000,000 -45,000,000

2013 - 10,000,000 - -10,000,000 -55,000,000

2014 - 10,000,000 - -10,000,000 -65,000,000

2015 - 49,009,600 - -49,009,600 -114,009,600

2016 - 47,750,000 - -47,750,000 -161,759,600

2017 99,399,000 28,000,000 2,600,000 68,799,000 -92,960,600

2018 116,940,000 - 13,000,000 103,940,000 10,979,400

2019 146,175,000 - 13,000,000 133,175,000 144,154,400

2020 187,104,000 - 13,000,000 174,104,000 318,258,400

2021 210,492,000 - 13,000,000 197,492,000 515,750,400

2022 228,033,000 - 13,000,000 215,033,000 730,783,400

2023 257,268,000 - 13,000,000 244,268,000 975,051,400

2024 286,503,000 - 13,000,000 273,503,000 1,248,554,400

2025 315,738,000 - 13,000,000 302,738,000 1,551,292,400

2026 339,126,000 - 13,000,000 326,126,000 1,877,418,400

2027 339,126,000 31,693,684 13,000,000 294,432,316 2,171,850,716

2028 339,126,000 - 13,000,000 326,126,000 2,497,976,716

2029 339,126,000 - 13,000,000 326,126,000 2,824,102,716

2030 339,126,000 - 13,000,000 326,126,000 3,150,228,716

52
2031 339,126,000 - 13,000,000 326,126,000 3,476,354,716

2032 339,126,000 - 13,000,000 326,126,000 3,802,480,716

2033 339,126,000 - 13,000,000 326,126,000 4,128,606,716

2034 339,126,000 - 13,000,000 326,126,000 4,454,732,716

2035 339,126,000 - 13,000,000 326,126,000 4,780,858,716

2036 339,126,000 - 13,000,000 326,126,000 5,106,984,716

2037 315,738,000 31,693,684 13,000,000 271,044,316 5,378,029,032

2038 298,197,000 - 13,000,000 285,197,000 5,663,226,032

2039 263,115,000 - 13,000,000 250,115,000 5,913,341,032

2040 239,727,000 - 13,000,000 226,727,000 6,140,068,032

2041 216,339,000 - 13,000,000 203,339,000 6,343,407,032

2042 187,104,000 - 13,000,000 174,104,000 6,517,511,032

2043 157,869,000 - 13,000,000 144,869,000 6,662,380,032

2044 122,787,000 - 13,000,000 109,787,000 6,772,167,032

2045 76,011,000 - 13,000,000 63,011,000 6,835,178,032

2046 23,388,000 - 13,000,000 10,388,000 6,845,566,032

2047 18,000,000 -18,000,000 6,827,566,032

Total 7,478,313,000 271,146,968 379,600,000

53
 OPTION 2
350,000,000

300,000,000

250,000,000

200,000,000

150,000,000
NCF

100,000,000

50,000,000

0
2010201220142016201820202022202420262028203020322034203620382040204220442046
-50,000,000

-100,000,000
YEAR

OPTION 2
8,000,000,000

7,000,000,000

6,000,000,000

5,000,000,000
CUM NCF

4,000,000,000

3,000,000,000

2,000,000,000

1,000,000,000

-1,000,000,000

YEAR

54
Option 3
Year Revenue CAPEX OPEX NCF CUM NCF

2010 - 5,000,000 - -5,000,000 -5,000,000

2011 - 15,000,000 - -15,000,000 -20,000,000

2012 - 25,000,000 - -25,000,000 -45,000,000

2013 - 10,000,000 - -10,000,000 -55,000,000

2014 - 10,000,000 - -10,000,000 -65,000,000

2015 - 49,009,600 - -49,009,600 -114,009,600

2016 - 47,750,000 - -47,750,000 -161,759,600

2017 99,399,000 68,000,000 3,500,000 27,899,000 -133,860,600

2018 116,940,000 - 17,000,000 99,940,000 -33,920,600

2019 146,175,000 - 17,000,000 129,175,000 95,254,400

2020 187,104,000 - 17,000,000 170,104,000 265,358,400

2021 210,492,000 - 17,000,000 193,492,000 458,850,400

2022 228,033,000 - 17,000,000 211,033,000 669,883,400

2023 257,268,000 - 17,000,000 240,268,000 910,151,400

2024 286,503,000 - 17,000,000 269,503,000 1,179,654,400

2025 315,738,000 - 17,000,000 298,738,000 1,478,392,400

2026 339,126,000 - 17,000,000 322,126,000 1,800,518,400

2027 339,126,000 31,693,684 17,000,000 290,432,316 2,090,950,716

2028 339,126,000 - 17,000,000 322,126,000 2,413,076,716

2029 339,126,000 - 17,000,000 322,126,000 2,735,202,716

55
2030 339,126,000 - 17,000,000 322,126,000 3,057,328,716

2031 339,126,000 - 17,000,000 322,126,000 3,379,454,716

2032 339,126,000 - 17,000,000 322,126,000 3,701,580,716

2033 339,126,000 - 17,000,000 322,126,000 4,023,706,716

2034 339,126,000 - 17,000,000 322,126,000 4,345,832,716

2035 339,126,000 - 17,000,000 322,126,000 4,667,958,716

2036 339,126,000 - 17,000,000 322,126,000 4,990,084,716

2037 315,738,000 31,693,684 17,000,000 267,044,316 5,257,129,032

2038 298,197,000 - 17,000,000 281,197,000 5,538,326,032

2039 263,115,000 - 17,000,000 246,115,000 5,784,441,032

2040 239,727,000 - 17,000,000 222,727,000 6,007,168,032

2041 216,339,000 - 17,000,000 199,339,000 6,206,507,032

2042 187,104,000 - 17,000,000 170,104,000 6,376,611,032

2043 157,869,000 - 17,000,000 140,869,000 6,517,480,032

2044 122,787,000 - 17,000,000 105,787,000 6,623,267,032

2045 76,011,000 - 17,000,000 59,011,000 6,682,278,032

2046 23,388,000 - 17,000,000 6,388,000 6,688,666,032

2047 18,000,000 -18,000,000 6,670,666,032

Total 7,478,313,000 311,146,968 496,500,000

56
 OPTION 3
350,000,000

300,000,000

250,000,000

200,000,000

150,000,000
NCF

100,000,000

50,000,000

0
2010201220142016201820202022202420262028203020322034203620382040204220442046
-50,000,000

-100,000,000
YEAR

57
 OPTION 3
8,000,000,000

7,000,000,000

6,000,000,000

5,000,000,000
CUM NCF

4,000,000,000

3,000,000,000

2,000,000,000

1,000,000,000

-1,000,000,000

YEAR

58