Weekly Sales Update

Subsea Internet of Things

Brendan Hyland WFS Technologies Subsea Controls Down UnderOctober 2016

Good morning. I would like to thank the organisers for the opportunity to present this morning.

Yesterdays Keynote from Sean Salter threw down the gauntlet to the supply base: if we are to deliver a viable subsea business we need to halve our costs. Woodsides message is consistent. BP is also implementing a program to reduce inspection costs by 50%.

At WFS we share Seans view that one of the keys to reducing subsea costs is introducing best practices from other industries and in particular intelligent process automation and analytics.1

Subsea Internet of Things- AgendaAbout WFS TechnologiesSeatooth TechnologyWhat is the Subsea Internet of Things?Applications: Asset IntegrityFlow AssuranceSummary

Seatooth PipeLogger- Smart, Wireless Pipeline Temperature Logger

The focus of this paper is the Subsea Internet of Things, a disruptor that is here today. It can be used to increase production output and reduce opex on existing production and have a major impact on CAPEX/OPEX of the next generation of subsea production.2

About WFS Technologies- BackgroundFounded Edinburgh, Scotland in 2003Privately ownedHead office Edinburgh, ScotlandSales/Projects offices in Houston, VietnamWorld leader in radio based subsea wireless automationSeatooth radio technology developed in-house>200 man-years of research >7000 Seatooth products deliveredWFS Oil & GasAsset Integrity SolutionsFlow Assurance solutionsIRMWFS DefenseDiver wireless Personal Area Networks (wPAN)AUV communications and dockingSeatooth Wireless Network

WFS Headquarters, nr Edinburgh, Scotland

3First, background on WFS TechnologiesWe are based near Edinburgh in Scotland.The companys core technology is low frequency radio. We undertook a 7 year program of fundamental research with UK MoD and DoD to develop the a solid understanding of radio communications through conductive media and media boundaries. We call our technology Seatooth, because underwater radio us used in a similar way to Bluetooth, providing short range, energy efficient point-to-point communications and networkingWFS is regarded by DOD and MoD as the world experts in this niche and we continue to deliver into advanced diver and AUV programsBut the bulk of our work today is using Seatooth technology to deliver subsea wireless automation solutions

About WFS Technologies- Seatooth TechnologyPropagation loss through water/air boundary 3bBUnaffected by turbidity, biofouling, aeration, thermal layers, engine noiseUltra low power receive technology key to deployments of 10 years +

Propagation through Water-Air BoundarySeatooth: radio communications Media: water, water/air boundary, seabed, ice, metalAttenuation is a function of frequency & conductivity 55dB/l in seawater Propagation velocity is a function of frequency: 100x velocity of sound at 3kHz in seawater

Radio finds path of least resistance

Radio is not supposed to communicate through water. To an extent, this is true.But light, which is another part of the EM spectrum does go through waterThe attenuation of radio waves in water is pretty aggressive about 55dB/lambda. A practical subsea radio system will communicate over around 2 lambda. So driving down the frequency increases range. The trade-off is bandwidth which reduces with frequencyBut radio also propagates through the water-air boundary and through the seabed.A radio signal will find the path of least resistance. So if a radio is placed near the seabed, the range is extended The attached chart shows the bandwidth/range tradeoff for practical subsea radios4

Seatooth Video- Total, Laggan Tormore

This is video footage of a subsea wireless camera taken last year on Laggan Tormore field in the N SeaThe Seatooth Video system has been configured to steam at 75kbps through approx. 4m of seawater.It was used to avoid the cost and hazards of deploying a 2nd ROV to monitor the installation of a XT

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Source: Subsea Wireless Group (SWiG), 2013SWIG is an open standards JIP feeding into API 17FSubsea Wireless- Comparison of options

Complementary wireless technologiesAcousticRadioopticalThere is no silver bulletSelect technology that best matches applicationFuture of subsea wireless is Hybrid

There are 3 wireless technologies available for underwater communications acoustic, radio and optical.Each has its pros and cons None is better than the otherAcoustic delivers the longest rangeOptical delivers the highest bandwidthRadio is the most resilientIn general, acoustic and optical systems are ideally suited for deep water and radio for shallow water or very long term deploymentsWFSs view is that the future is hybrid: combining all technologies to make use of the channel best suited to a particular application6

What is the Subsea Internet of Things?

Subsea Internet of Things: is a network of smart, wireless sensors and devices configured to provide performance, condition and diagnostic information

So what is the Subsea Internet of Things?its basically the Internet of Things adjusted to match the realities of the subsea environmentIt comprises Smart devicesWireless NetworkingData analytics

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What is the Subsea Internet of Things?- Smart DevicesMulti-parameter sensorAsset Integrity: Temp, UT, CP, VibrationFlow Assurance: Temp, Flow, VibrationLocal data processingLocal process model correctionIntelligent power managementLocal power generation

Whats a smart subsea device?At the most basic level, smart devices are compact PLCs with multiple sensorsThe sensor package will change according to the requirement.Typical sensors will include temperature, corrosion, vibration, flow, strain, positionThe device has data storage and onboard algorithms to run basic control and data processingIf the device is wireless, it will have power management technology and perhaps even local power generationBut Smart devices will also have local computing to run data analytics, matching the long term performance of the process plant against predictive models: fatigue, corrosion, flow. It will use this information to characterise the process or equipment and correct the In IoT jargon, these are called Fog nodes8

What is the Subsea Internet of Things? - WirelessWireless = Hybrid incorporating wirelessHard wiredCopperFibre opticWirelessRadioAcousticFree space opticsSelect the most appropriate technologyCostResiliencePerformance Flexibility

Seatooth Radio modem Acoustic modemSubsea Umbilical

I have used the term wireless, but this is euphemistic for communications. We see subsea IoT systems as hybrid networks comprising both hard wired and wireless componentsIndeed, Sean described how the Pluto AGRU data analytics system uses several wireless technologies as well as hard wired elements9

What is the Subsea Internet of Things?- InformationSmart devices process data to deliver informationderived values, control outputs, graphs, histograms, Information v dataDataare the facts or details from whichinformationis derived. Individual pieces of data are rarely useful alone. For data to become information, data needs to be put into context.Why Information?Reduced costExtended lifeIncrease resilienceDistributed control

TemperatureDate/Time3113:00:003114:00:003115:00:003116:00:003117:00:003118:00:003119:00:003120:00:003121:00:003122:00:003123:00:003100:00:003101:00:003102:00:003103:00:003304:00:00

Convert data to Information

Steve Fasham from Sonardyne described yesterday how they have implemented a subsea smart system that processes large quantities of raw data to transmit only useful information.This strategy is fundamental to extending the battery life of subsea systems 10

Subsea Internet of Things - ApplicationsAsset IntegrityField-wide Cathodic Protection (CP)Pipe wall thickness (UT)Crack (ACFM)VibrationImpressed Current (ICCP)Flow induced pulsation (FLIP)Riser fatigueCompletion fatigueMooring fatigueLeak detection

Production Optimisation & Flow AssuranceEOR water/gas injectionHydrate/waxChemical injectionSlug management

How can a Subsea Internet of Things help Woodside, BP and the industry to deliver a step change in economics of subsea operations?In the first instance these architectures can be used to deliver immediate cost savings and increases in production outputId like to take you through a few applications11

Subsea Internet of Things- Asset IntegrityReduce inspection costs extend interval between inspectionImprove quality of information location, timeliness, reliability, frequencyFlexibility to extend sensor network subsea wireless SCADACP Inspection Automation

Cathodic Protection (CP) monitoring Is a necessary but expensiveSacrificial anodes are visually inspected regularly by diver or ROV to assess depletion and to measure the protection voltage is within rangeWFS has developed a Seatooth CP smart monitoring system jointly with Stork that takes regular CP stabs, measuring both voltage and current.The data can be harvested wirelessly through the water-air boundary or by fly-by eyeball ROVThe cost savings are substantialInspection intervals can be extendedCorrosion problems are identified early allow for planned maintenanceThe wireless network can be used for other sensors12

Subsea Internet of Things- Asset IntegrityUse PIG as AUV on tram tracks to harvest data from remote sensorsSeatooth PigTracker supports low bandwidth, 2-way comms through up to 50mm steelWFS solution Smart sensor on outside of pipe takes periodic readings (eg UT, temp, flow, vibration)Local data processing Data harvested by PIGBenefitsReduced OPEX: vessel timeImproved quality of informationImproved safety

Pipeline Corrosion Monitoring with PIG

WFS is also able to support 2-way data communications through a pipe wallOne application of this capability is to use Smart PIGs to harvest asset integrity information from smart sensors in remote locationsWhere pigs are used on a regular basis to clean lines, this approach can deliver cost savings as well as improved quality and timeliness of informationSmart sensors are deployed at locations of concern to monitor corrosion, pipewall thickness, pipe movement etcILI intervals can be extendedROV or diver based inspections can be reduced or eliminated

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Subsea Internet of Things- Asset Integrity

FIV/VIV/Free-Span MonitoringReduce data monitoring costs extend interval between battery swap-outsImprove reliability of data collection verify system performance without recovering loggerFlexibility to extend sensor network subsea wireless SCADA

Olav from Clampon described the benefits of deploying vibration monitoring sensors to help with the management of flow line fatigueBattery swaps often dominate the cost of deploying vibration monitoring sensorsSeatooth enabled smart sensors can be deployed for extended periods using modest battery packs, reducing the cost of long term monitoringLong term vibration monitoring can be key to extending asset life

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Subsea Internet of Things- Flow AssuranceIncrease production Extend reservoir lifeSolutionRetrofit wireless network of smart flow metersImplement control strategy

EOR Water/Gas Injection Control

In this challenging economic environment many operators are pushing decommissioning dates to the right and looking for ways to increase production outputOlder fields with water or gas injection often have no metering or the meters are beyond economic repairSmart wireless ultrasonic flow meters can be retrofitted to characterise water or gas flows. With this information EOR systems can then be optimised leading to near term production increases as well as providing information needed for long term reservoir management15

Subsea Internet of Things- Production ControlReduced CAPEX lower electrical load, reduced installation cost Increased reliability fewer connectors and jumpersIncreased flexibility futureproof control system expansion

Industrial Wireless production control is one of the fastest areas of growth. The benefits are clear: reduced cabling costs, increased flexibility and increased reliabilityThe commercial case for subsea wireless production control is even more compellingWe see hybrid production control as the key to enabling many brown field expansions and reducing both capex and opex of the next generation of production systems16

SummarySubsea Internet of ThingsHybrid architectureSmart wireless sensorsLocal data processing and controlSeamless extension of wireless through splash zone

BenefitsIncrease productionReduce CAPEXReduce OPEX

In summary, all the components of the Subsea Internet of Things are already here and in use todayEmbracing this disruptive technology is key to delivering brownfield extensions and to delivering the cost case for future green fields

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Thank YouBrendan@wfs-tech.com+44 845 862 1560

I thank you for listening

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