UK Norway Share Fair 2006- BP NorwayApril 20th 2006, Aberdeen

Terje Ohrstrand - Supply Chain Management, BP Norge ASKjell M. Madsen – SCM Lead, Skarv Project

Topics

• BP Norway – Assets & Licenses

• How to become a supplier to BP Norway

• What we look for in a supplier

• Estimated spend 2006

• Possible Contract Opportunities 2006

• Valhall Re-Development Project

• Skarv Development Project

• Entry points to BP Norway

Key facts

• BP Norge Exploration and production− 564 employees

− Average daily production: 82 200 barrels of oil equivalents BP net

− Turnover: NOK 16.2 billion

− Result: NOK 8.1 billionFigures as pr. January 2006

• BP Fuels & Lubricants− 57 employees

− Turnover NOK 244 million

Activities on the Norwegian shelf

• Participant in 16 licences

• Operator for 12 of those

• Operates

− Ula & Tambar

− Valhall & Hod

• Projects

− Valhall Re-Development

− Skarv-Idun Development

• Partner in the Draugen field

PL 006B

VØRINGBASSENGET

VØRINGBASSENGET

MØREBASSENGET

BPs interesser

Andre lisensområder

Baser

Valhall

Ekofisk

Sleipner

Frigg

Oseberg

Heimdal

Troll

Visund

Snorre

Statfjord

Gulfaks

Ormen Lange

Njord

Heidrun

Norne

Ula

Draugen

Skarv

Sandnessjøen

Kristiansund

Trondheim

Stavanger

Bergen

Florø

OSLO

PL 093PL 158

PL 218

PL 033

PL 187

PL 065PL 019A

2°

4°

6° 8°

66°

62°

64°

58°

PL 262PL 261

10°

PL 025

PL 033B

PL 212b

PL 300

PL 212

PL 176

Core areas

Valhall and Hod

• Valhall production started 1982• Production to 2050 +• Remaining reserves 750 millioner boe• Estimated 2006 production 105 000 boe/d• 200 beds

• Hod production started 1990• Estimated 2006 production 8 500 boe/d • Unmanned wellhead platform remotely controlled from Valhall

Ula and Tambar

• Ula production started in 1986• Production to 2028+• Remaining reserves 92.7 mill boe• Estimated 2006 production 22 000 boe/d• 169 beds

• Tambar production started 2000• Estimated 2005 production 20 500 boe/d • Remaining reserves 24.2 mill boe• Unmanned wellhead platform remotely controlled from Ula

How to become a supplier to BP Norway

• Identify and connect with customer (BP end user)

• Registered in Achilles as approved supplier with updated info

• HSE - Self assesment (NORSOK S-006)

• Products/Services

• Track Record of Documented Capabilities

• Meet minimum HSEQ Req.

• HSEQ System and Processes

• HSE Performance

HSE matters for allocation of work!

We will not find you if your capabilities are not registered!

What we look for in a supplier

• Leadership in HSE .

• Track Record of Documented Capabilities

• The right Products / Services

• Execution Ability

• Desired Attributes

• Better use of technology

• Improved Ops Efficiency

• Value Creation

• Innovative, Creative, Proactive

• Willing to Share Ideas

BP’s SCM Strategy: STARSSector strategies – Clear strategies

for each sector maximising value whilst ensuring security of supply, enabled by a deep understanding of both BP’s demand and the characteristics of the market

Transparency – Clarity on all major cost and performance elements within the supply chain and their comparability with industry benchmarks

Aggregation – Aggregating spend to the highest level feasible and to the extent that this increases value

Relationships – Distinctive relationships based on performance, market reality, and technology development – access intellectual capital

Supply Chain Management – BP’s role in the supply chain understood and optimised

Investments in Norway

Capex

-

200

400

600

800

1 000

1 200

1 400

2006 2007 2008 2009 2010 2011

Cap

ex (

US

$ G

ross

) Skarv

Ula

Valhall

Estimated 2006 Spend (mill USD gross)

3

71

75

107

152

254

Seismic

Logistics

Business Office Support

Facilities Engineering & Construction

Production Operations

Drilling & Wells

Drilling & Wells• Drilling Fluids (NCS+UKCS)

• Directional/MWD Service (NCS+UKCS)

• Slick Line Services (NCS+UKCS)

Logistics• Platform Support Vessels (NCS)

(Stand-By Boats)

Valhall Re-Development Project

Skarv Development Project

Operations• RE Maintenance (NCS+UKCS)

• Compressors

• Pumps

• Vendor Based Maintenance Services (NCS)

• Valves, Cranes & Lifting Eqm’t

• Instrumentation FA’s (NCS)

• Industrial gas FA (NCS)

• Electrical Consumables FA’s (NCS)

Other Projects• Tambar Multi-Phase Pump

• Ula Gas Upgrade

• Valhall Flank De-Bottelnecking

•Valhall Re-Development Sub-Sea Installation

•Valhall DP Derrick De-Commissioning

Possible Contract Opportunities 2006

Valhall Re-Development – New Production & Hotel Facility

• New Facility Design Life - 40 years

• Hotel - 150 single bed cabins

• Oil production capacity - 150 mbopd

• Gas handling capacity - 5 million Sm3/day

• Total liquid capacity - 250 mbpd (oil & water)

• Weight topside + hotel ~13 000 tne Weight jacket ~ 5 000 tne

• Power from Shore - 292 km HVDC cable

• Oil Export - Future offshore loading/EOR

Valhall Redevelopment – Preliminary Schedule

ITTs will be issued either directly from BP or via Mustang in HoustonSee Procurement plan at www.bp.no

Key events

Engineering

Procurement

Transport & Install

Skids / Packages

Deck fab / Integration

Jacket & P iles

Power from shore m odule

Living Q uarters m odule

G as com pression m odule

Brownfield m ods

Subsea installation

Hook-up / Com m issioning

Flotel

NewPlatformStart-up

Define

Award

2006 2007 2008 2009

OperateFabricationComplete

ProjectSanction

Engineer / Design Follow-on / Support

ITT Engineer / Procure Inst

ITT and Awards Fabricate and Deliver

ITT

Award

Fabricate / Integrate and Pre-Commission

ITT

Award

Fabricate

ITT

Award

Fabricate / Outfit

ITT

Award

Engineer / Procure / Fabricate

ITT Fabricate

ITT Fabricate

ITT Engineer / Execute

S/D

S/D

ITT

Award

Engineer HUC

Award

Award

Award

Previous plan

Skarv - Project overview

Export Pipeline :80 km, 26”, Water depth 300 - 400 m

ÅTS – Tie InGassco commence FEED April 06

Skarv FPSO

• FPSO with subsea tie-backs.

• FPSO Design Capacity : 85mbd & 670MMSCFD

• Largest Harsh Water Gas Processing FPSO

• Oil Export via shuttle tanker.

• Design for 95% OperatingEfficiency

• Timing:

− FEED thru 4Q 2006,

− PDO 1Q 2007

− Operate 3Q 2010

Skarv Subsea layout

• Largest undeveloped hydrocarbon resource offshore Norway

- Skarv A, B, C, Tilje- Idun- Snadd (Future)

• Water Depth: 350 - 400m

Subsea Production System• Development wells 13 wells• Subsea Templates 5 (Skarv Idun Tilje)• Flowlines Rigid, Flex, Bdles• Risers #11 flexibles• Seabed Challenging

WasteWaterWasteWater

1 x 4 slot template1 x 6 slot template

Tilje

4 slot template

Idun

Skarv BC

Snadd S

Gas Export

Skarv A

Flowlines2 x 12” Prod2 x 10” Prod1 x 10” Gas Inj

1 x 4 slot template1 x 6 slot template

4 slot template

10” ProdFlowline

26” ExportPipeline

Risers2 x 10” Prod2 x 8” Prod

Risers2 x 10” Prod1 x 10” Gas Inj1 x 8” Water 10” Prod

Riser

FPSO2 x 12” ExportRisers

10” ProdRiser

Flowlines2 x 12” Prod1 x 10” Gas Inj1 x 10” Water

ProductionGasWaste WaterUmbilical

Risers:11 + 1 Snadd + 2 umbilical+ spare riser slots

12” ProdFlowline

Gas Export• 80km, 26” OD spur pipeline to ÅTS• Capacity Upgrade at Kårstø (Gassled)

Skarv FPSO Contract Structure

Skarv FPSO Contract Overall Schedule

Skarv SURF Contract Overall Schedule

BP Norway PSCMEntry Points

Supply Chain ManagerHans Ole Lørup

loerupho@bp.com

Operations & LogisticsArnfinn Bærheim

baerheag@bp.com

Bjørn LandsvikBjoern.Landsvik

@no.bp.com

Crawford Pagepagec@bp.com

Wells

Ian Kerr Millarmillari@bp.com

Reidar Hålandhaalanr@bp.com

Agreements/ Purchasing

Jarl Iverseniversej@bp.com

Performance Management

Terje Ohrstrandohrstrt@bp.com

VRD PSCMSimon BatesonSimon.Bateson@no.bp.com

Valhall and Ula PUs

Development Projects PU

Skarv PSCMKjell Magne Madsenmadsenkm@bp.com