The Greater Britannia Area –

History, Integration and Beyond

Markel Hübinette - Greater Britannia Area Asset Manager, ConocoPhillips

SPE Aberdeen Evening Dinner Meeting 25 January 2017

Agenda

• Greater Britannia Area• Infrastructure• GBA Assets• Field History • GBA Operatorship• BOL Integration

• Why?• How?

• What's next• Questions

January 26, 20172

GBA Area

History

BOL Integration

Beyond

Geographic overview

January 26, 20173

Britannia

GBA Area

History

BOL Integration

Beyond

Area infrastructure

January 26, 20174

SAGE

CATS

Gassled-Langeled

Forties

Gas Export Routes

Liquids Export Routes

FPSOs

Kinneil

GBA Area

History

BOL Integration

Beyond

Greater Britannia Area overview

Legacy asset with infill potential and exploration prospect

• 2nd largest gas producer in UKCS

• Excellent safety and operational performance

• Further Britsats opportunities

Challenges• Offset production decline

• Thrive in volatile price environment

External Factors• Britannia strongest gas hub in area

• Dedicated infrastructure for gas and liquids

• Co-venture alignment

1, Remaining in 2017 LRP

TEMPLE WOOD

ALDER

January 26, 20175

GBA Area

History

BOL Integration

Beyond

Greater Britannia Area assets

January 26, 20176

First production 1998 14 well slot manifold, 10 drilled ; 4 still producing Tied back to Britannia via a 37” carrier / 14” production pipeline

First production Nov 2016 Single well development 27 km 16”/ 10” tie-back to

800T module on BLP

First production July 2008 4 wells, gas lifted 12” tie-back to BLP, 25km

First production in Aug 1998 Hub Processing and Export Facility 36 well slots

47 wells drilled 2/3 on production

3-Phase separation plus gas and liquid processing to export specification Design export capacity

815 MMSCFD gas 72,000 bpd oil/condensate

Export routes Gas via dedicated line to SAGE Liquids to FPS

Offshore POB 184

Britannia SubseaAlder Britannia & BLP Platforms

First production July 2008 2 subsea wells initially H3 currently producing 12” tie-back to BLP, 42 km Continuous MEG injection

Brodgar

Callanish

First production June 2015 Single well development 8km tie-back to Callanish

Enochdhu

GBA Area

History

BOL Integration

Beyond

Britannia timeline

January 26, 20177

GBA Area

History

BOL Integration

Beyond

Britannia field development history – Exceeding expectations

Late Life Strategies

3 YearDrilling Hiatus

5 YearDrilling Hiatus

Britsats

Rig Tepid Stacked

Re-wheel

LTC

B11zB12

B13z

B14

B15B16M8

B17

M9B18

B19B20

B21B22

B23z

B24

B25zB26

B27

B28

B29B30B31

B32

B33

B34

B35

B36B37

B38z

B40zB41zB42

B43B44

B45

B46

B47

Nov

/98

Mar

/99

Jun/

99O

ct/9

9Fe

b/00

Jun/

00O

ct/0

0Fe

b/01

Jun/

01O

ct/0

1Fe

b/02

Jun/

02O

ct/0

2Fe

b/03

Jun/

03O

ct/0

3Fe

b/04

Jun/

04Se

p/04

Jan/

05M

ay/0

5Se

p/05

Jan/

06M

ay/0

6Se

p/06

Jan/

07M

ay/0

7Se

p/07

Jan/

08M

ay/0

8Se

p/08

Jan/

09M

ay/0

9Se

p/09

Jan/

10M

ay/1

0Au

g/10

Dec/

10Ap

r/11

Aug/

11De

c/11

Apr/

12Au

g/12

Dec/

12Ap

r/13

Aug/

13De

c/13

Apr/

14Au

g/14

Dec/

14Ap

r/15

Aug/

15De

c/15

Gas Rate Production Profile Britannia Annex B Gas Condensate Rate

January 26, 20178

GBA Area

History

BOL Integration

Beyond

Drilling Breaks

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Gas Rate Oil / Condensate

Britsats timeline

January 26, 20179

Brits

ats P

roje

ct S

anct

ione

d by

ow

ners

BLP

Jack

et +

Sub

sea

Inst

alla

tion

Cono

co-P

hilli

ps M

erge

r

Chev

ron-

Texa

co M

erge

r

Brits

ats F

DP su

bmitt

ed

Discovery Year

Brodgar 1985

Callanish 1999

Enochdhu 2005

Alder 1975

Calla

nish

Disc

over

y W

ell 1

999

Brod

gar D

iscov

ery

Wel

l 198

5

Alde

r Disc

over

y W

ell 1

975

Enoc

hdhu

Disc

over

y W

ell En

ochd

hu o

n-lin

e

Alde

r 0n-

line

Brodgar & Callanish

GBA Area

History

BOL Integration

Beyond

Brita

nnia

firs

t gas

Operatorship

January 26, 201710

1994 – 2015• Britannia Operator Limited created 1994

• Two shareholders (COP, CVX)

•370 onshore staff

• 1/3 ConocoPhillips / Chevron

• 2/3 Contract (Petrofac, AMEC, Lockheed Martin etc.)

2016 and beyond ……•ConocoPhillips operated assets*

•Reducing complexity

•Retain equity model

50%

50%

58.65%32.38%

8.97%

ConocoPhillips*

Chevron

Mitsui

Britannia

Brodgar

25%Chevron

75%ConocoPhillips*

16.5%Chevron

83.5%ConocoPhillips*

Callanish

50%Chevron

50%ConocoPhillips*

Enochdhu

74%Chevron*

26%ConocoPhillips

Alder

Satellites

*operator

Greater Britannia Area

16.5%

83.5%

GBA Area

History

BOL Integration

Beyond

* Chevron operates Alder

BOL Integration – drivers and method

January 26, 201711

Identify risks, issues, actions by function

Agree required actions,

owners, due dates

Define launch state

for Day 1

Execute integration

actions for full

integration

Execute integration

actions for Day 1

• Management Of Change• No external support• Dedicated integration team

Why Integrate?

Integration Objectives

• Seek further efficiency improvements• Larger pool of resources available where and when required• Reduce headcount and OPEX

• Maintain safe and reliable operations• Achieve sustainable cost reductions• Successfully incorporate secondees

Driver

Method

GBA Area

History

BOL Integration

Beyond

Integrated Operations - onshore operating centre

January 26, 201712

GBA Area

History

BOL Integration

Beyond

• State of the Art Onshore Operating Centre• One Operating Model

– Reduce Risk– Improve Efficiency

• Through– Collaboration– Innovation & Technology– Simplification & Standardisation

Britannia – the key gas hub in the region

6,684 852

Reserves ProducedReserves remaining

536 316

Onstream/Under developmentContingent/Probable dev/Good technicalField Status Number of

Fields

On-stream 37

Under Development 2

Ceased Production 13

Abandoned 7

Contingent 30

Probable Development 2

Good Technical 2

Total number of fields <60KM from Britannia 93

Forties: ~50% Britannia: ~10% Other Fields >100mmboe: Alba, Scott

Andrew, Telford Area, Everest, Flemming, Balmoral

Forties & Britannia still largest remaining volumes

Currently no C/P/GT fields above 50 mmboe

Source: Wood Mackenzie

January 26, 201713

GBA Area

History

BOL Integration

Beyond

Greater Britannia Area next steps

January 26, 201714

• Evaluate further infill drilling

• Screen area for ILX opportunities

• Aligned with OGA and supporter of the MER principle

• Strong hub for equity and third party production

GBA Area

History

BOL Integration

Beyond

Greater Britannia Area

January 26, 201715

Thank You

Questions?

GBA Area

History

BOL Integration

Beyond