Saipem — Investor Presentation 2018

Jun 14, 2018

FUTURE OF THE OFFSHORE: TECHNOLOGIES TO ENHANCE LONG TERM COMPETITIVENESS

J.P. Morgan's 'Future of the field' Roundtable Series 14th June 2018

Giovanni Chiesa

Saipem E&C Offshore Division Head of Subsea Engineering & Underwater Technologies

TODAY'S PRESENTATION

3	EXECUTION EFFICIENCY

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5	CLOSING REMARKS

STRATEGY AND VISION

E&C OFFSHORE – STRATEGIC TECHNOLOGY TARGETS

INNOVATION for GLOBAL SOLUTIONS

THE SUBSEA-TO-SHORE LONG TERM VISION

Moving Topside Operations onto Seabed

• Moving Subsea is a Key for Cost Reduction
• Technology Innovation to Enable Seabed Production Operations

THE SUBSEA-TO-SHORE LONG TERM VISION

Opportunities & Challenges

Cost Reduction through Novel Field Development Schemes based on:

• Longer Tie-backs to Onshore Receiving Facilities or to Existing Floating Hubs with Simplified Gathering and Transportation Systems
• Assurance of Production Delivery over Longer Distances
• No In-Field Surface Support for Auxiliary Functions
• Smarter Subsea Systems for Reduced Communication to/from Shore
• SPS URF Integration, Standardization of Interfaces and Open Framework Strategy

TECHNOLOGIES ENABLING CAPEX EFFICIENCY

CAPEX EFFICIENCY TECHNOLOGIES (1/3)

CAPEX EFFICIENCY TECHNOLOGIES (2/3)

CAPEX EFFICIENCY TECHNOLOGIES (3/3)

Controls & Electric Novel Development Schemes All Electric SMART Control • Development and Qualification of a Subsea Control System based on a OPEN FRAMEWORK • Extendable Platform of Software and Hardware Components SUBSEA BUSTM DigiGRID Conventional X-Section LV Quads/Hydraulics/FO/Chem All-Electric Power for Valves Actuation

• Completion of System Qualification by End 2018

Maturity: Under Qualification

• Substitute Hydraulic Power with Electric
• Simplification of Umbilical Cross Section and Integration of Power & Telecommunication

LV Quads/FO/Chem

Maturity: Available / DC-FO Offered Integrated DC-FO Chem/FO

Chem / Power Distr. DC-FO / HV Power

TECHNOLOGIES ENABLING EXECUTION EFFICIENCY

EXECUTION EFFICIENCY

• Fast Track Shared Approach
• Early Engagement
• Efficient Selection of Technical and Technological Solutions

New Model

• High Pipelay and Subsea Construction Productivity
• Automation
• De-Risking Offshore Operations

Shortest Ever Time-to-Market

EXECUTION EFFICIENCY TECHNOLOGIES (1/3)

EXECUTION EFFICIENCY TECHNOLOGIES (2/3)

EXECUTION EFFICIENCY TECHNOLOGIES (3/3)

Integrity Tools De-Risking

Anti-Flooding System

• Plug prevention pipe flooding
• Autonomous system
• Wireless real time communication

Maturity: Available

IAU Integrated Acustic Unit

• Non intrusive pipeline integrity monitoring during installation
• Real time localization of water & buckles using acoustic reflectometry

Maturity: Available

TECHNOLOGIES ENABLING OPEX EFFICIENCY

OPEX EFFICIENCY

Opportunities and Challenges

Lifecycle Support to Subsea Systems with Increased Functionalities through:

• Production Support
• Asset Integrity Assessment
• Condition Assessment
• Planned Maintenance and Intervention
• Emergency Intervention
• Take over of End of Life Operations as Duty Holders Decommissioning Plug and Abandonment, Facilities Removal and Disposal

OPEX EFFICIENCY TECHNOLOGIES (1/3)

OPEX EFFICIENCY TECHNOLOGIES (2/3)

OPEX EFFICIENCY TECHNOLOGIES (3/3)

CLOSING REMARKS

CLOSING REMARKS

• New field architectures that combine different "building blocks", some new and some existing
• To provide new added values to Clients, as the reduction of CAPEX and/or OPEX costs
• Early engagement with Clients is the way to exploit all the potential of such as architectures