From Tanker to FPSO. Experience of Conversion. 19 June Øystein Huglen Project Sponsor.

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„

T E E K A Y – T H E M A R I N E M I D S T R E A M C O M P A N Y

®

www.teekaypetrojarl.com

From Tanker to FPSO

Experience of

Conversion

19 June

2008

Øystein Huglen

Project Sponsor

„

TEEKAY PETROJARL ASA

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Agenda

Siri Operational experience

Teekay Corporation and

Teekay Petrojarl

Teekay Corporation and

Teekay Petrojarl

The Siri FPSO Project

Future Plans

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3 www.teekaypetrojarl.com

44 Shuttle

Tankers

5 Floating Storage

& Offloading Units

_{Oil Tankers}

105 Crude

22 Gas

Tankers

36 Product

Tankers

The Teekay Marine Midstream Concept

(updated Jan 14 ‘08)

5 Floating, Production Storage

& Offtake Units (FPSO)

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Substantial Growth in Total Asset Base

0

2

4

6

8

10

12 1999

2000

2001

2002

2003

2004

2005

2006

2007*

A

ss

e

ts

i

n

B

il

li

o

n

U

SD

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5 www.teekaypetrojarl.com

Teekay Corporation

„

Founded 1973 by the late Torben Karlshoej

„

Transnational company with 6,300 employees

„

Transporter of more than 10% of the world’s seaborne oil

Glasgow/Aberdeen

London

Mumbai

Sydney

Perth

Singapore

Manila

Vancouver

Bermuda

Houston

Tokyo

Hamburg

Madrid

Trondheim

Stavanger/Grimstad

Rio de Janeiro

Gdynia

Luxembourg

Stamford

Amsterdam

Macaé

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Business Unit Structure Stimulates Focus and Growth

TEEKAY NAVION

SHUTTLE

TANKERS &

OFFSHORE

Kenneth Hvid

President

TEEKAY GAS

SERVICES

David Glendinning

President

TEEKAY

TANKER

SERVICES

Bruce Chan

President

TEEKAY

CORPORATION

Peter Evensen

EVP & Chief Strategy Officer

TEEKAY

CORPORATION

Art Bensler

EVP & General Counsel

TEEKAY MARINE

SERVICES

Graham Westgarth

President

TEEKAY

CORPORATION

Melissa Spencer

EVP, Corporate Resources

TEEKAY

PETROJARL ASA

Peter Lytzen

President

TEEKAY

CORPORATION

Vince Lok

EVP & Chief Financial Officer

TEEKAY

CORPORATION

Bjorn Moller

President & CEO

100 %

_{63 %}

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7 www.teekaypetrojarl.com

Teekay Petrojarl Fleet

Petrojarl I

(Statoil)

Petrojarl I

(Statoil)

Ikdam (Lundin)

Petrojarl Cidade

de Rio das Ostras

(Petrobras)

Petrojarl Cidade

de Rio das Ostras

(Petrobras)

Petrojarl Banff

(CNR)

Petrojarl Banff

(CNR)

Petrojarl Varg

(Talisman)

Petrojarl Varg

(Talisman)

Petrojarl Foinaven

(BP)

Petrojarl Foinaven

(BP)

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„

T E E K A Y – T H E M A R I N E M I D S T R E A M C O M P A N Y

®

FPSO Petrojarl

Cidade de Rio

das Ostras

The Siri Project

From Tanker to

FPSO

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9 www.teekaypetrojarl.com

The Siri Contract with Petrobras

„

Awarded September 2006

„

Delivered in Brazil January 2008

„

Contract duration 2 years fixed

„

2 x 6 month options

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Siri Field - Location

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11 www.teekaypetrojarl.com

„

Teekay Petrojarl

„

Delivery of FPSO with Process Plant and Utilities

„

Delivery of FPSO Mooring System

„

Customs and Brazilian Authorities Clearances

„

Tensioning of Mooring Lines

„

Pull-in Operation (flexibles and Umbilicals)

„

Maintenance and Operation of the FPSO (Personnel, catering, spare parts, etc)

Scope of Work

„

Petrobras

„

Subsea Trees and ESP (third Party company onboard)

„

Risers, Umbilical and electrical cable and its installation

„

Installation of Mooring System

„

Diesel and Chemicals supply

„

Supply Boat

„

Shuttle-Tankers for oil exportation

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13 www.teekaypetrojarl.com

Design Overview

U

ti

lit

y

M

od

u

le

Process Module

Flare KO drum Metering

Power

Generation

Expro International

Wärtsilä Automation

Switchboard

Module

CCR

LER

Wärtsilä Power

Generation

Remontowa

Riser Balcony

Life Boat Life Boat MOB Boat

Helideck

Flare Tower

Teekay Petrojarl

Integration Work

Mooring Mooring Mooring Mooring Boiler Crane Crane Fire Pump Fire Pump Offloading

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Riser & Control System Terje Dypdalsbakk Process Roy Gundersen Project Ops Lead Bjarne Hove

Operations

& Mainten.

Maintenance TBA Project Planner Leidulf Gravråk Cost Control &

Reporting Jasvinder Gill Document Control Olaf Lund Procurement Manager Oddvar Selvik

Control &

Reporting

Mooring Engineer OddWeiseth Engineering Manager Wojcieck Kruk Tech Safety Bjørn I.Johannessen E&I Engineer Brian Billby

Mech & Piping Engineer Neil Marston Naval Architect Sebastian Bazek Site Supervisor (Process Fab) Niel Cawper Site Supervisor HV & LV Arne Skjærbusdal Inst./Auto/ Telecom Svein Furnes Site Manager (Yard) Jan Øvrum Site Manager (Fab Yards) Steiner Haugen OIM Bjarne Hove Maint Supervisor Bjarne Brattlund Site Admin M. Ziegert Marine Supervisor Jon P. Pedersen E&I Supervisor Ships Electrician Safety Officer Øystein Ramslie Ships Staff 2 Mates 2 Engineers

Client

Petrobras

Steering

Committee

Project Admin E. Chaberek Vice President Operations Dennis Law

Preparations for

Operations Group

(Brasil)

Manager Aage Rismo HSEQ Engineer Erik Jahr

Project Sponsor

Øystein Huglen Interface Coordination M. Podczaszynski Commissioning Manager Viktor Langeland Process Engineer Ketil Hox Finance & Accounting

Terje Ruud

Siri FPSO – Project Organisation

Site Team

Teekay PJ Trondheim

Brazil

Project Manager

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15 www.teekaypetrojarl.com

Location of Key Contractors

Teekay Petrojarl

Head office

Trondheim, Norway

Expro International

Process Design

Reading, UK

Expro / HSM

Process Equip’ Fab’

Schiedam, Netherlands

Remontowa

Conversion Yard

Gdansk, Poland

Wartsila Power Gen’

D/F Generator

Wasa, Finland

Allum Engineering

Integrated Eng’

Sandefjord, Norway

Wartsila Automation

EIT

Stord, Norway

Safetec

Safety Eng

Trondheim, Norway

DNV

Class Approval

Oslo, Norway

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Key Project Success - HSE

„

Project Total

„

Ave 300 Workers per day

„

Peak 800 per day

„

1.5 million man-hours

„

1 Lost Time Accidents

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17 www.teekaypetrojarl.com

Key Challenges

„

Very Fast Track Project

„

Inexperience of Main Contractors

„

Underestimate of Scope of Work

„

Lack of resources

„

Late delivery of engineering

„

Delay to Schedule

„

Systems integration completed simultaneous

„

Commissioning schedule ‘squeezed’

„

Carryover commissioning work

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19 www.teekaypetrojarl.com

Key Challenges - Progress

35 Days Delay

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21 www.teekaypetrojarl.com

SIRI OFFSHORE ORGANISATION

OIM

Maintenance Supervisor

“Chief Engineer”

Marine Supervisor

“Chief Officer”

Production Supervisor

Chef/Camp Boss

Nurse/Medic

Radio Operator

Safety Officer

1

St

_Engineer

Bosun/Crane

Operator

Prod. CRO Operator

Steward

2

nd

_Engineer

_{Rigger/Pumpman}

_{Production Operator}

_Steward

E & I Supervisor

Motorman/Mechanic

Welder/Repairman

Storekeeper

Rigger

Production Operator

Trainee

Laboratory Technician

Steward

E & I Technician

EUROPEAN EMPLOYEES (10)

DAY AND NIGHTSHIFT

TOTAL CREW = 41 Inc.5 Catering

EUROPEAN EMPLOYEES (10)

DAY AND NIGHTSHIFT

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23 www.teekaypetrojarl.com