Owen Kratz, Helix ESG Chairman and CEO

Well Intervention
Overview
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What is well intervention?

Well intervention is the ability to safely enter a well with well control for the
purpose of doing a number of tasks other than drilling.

Well intervention historically was done with drill rigs, with an 18-3/4 BOP and
21 marine riser as the only means of well access with well control.

In the 80s, technology was developed that afforded for re-entry into wells with
alternatives to the drilling well control systems and rigs for delivery of non-
drilling services.

As technology is developed, water depth increases, well head design evolves

and well construction changes, intervention also evolves and demand grows.

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Intervention Today

Vessel
Monohull Semi
Smaller Larger
Intervention System
SIL SIL/IRS IRS IRS 18 3/4 BOP

Well <7" >7" >7" 21" IRS

Intervention Smaller
Cat A Cat A+ Cat A++ Cat B Cat C

Wireline Wireline Wireline Wireline Drilling

<7" riser <7" riser <7" riser
Coiled tubing Coiled tubing Coiled tubing
Pull tubing

Wireline Coiled Tubing

E-line reservoir/annulus Cement plug placement-reservoir/
Well perforating-tubing/casing intermediate/shallow
DHSV repair Fishing
SSSV/sleeve insets/storm chokes Gas lift valves
Fishing Sand screen repair
Guage cutting Tubing/seal failure-mechanical
Well P/T/F gauges plugs/patches (well integrity)
Services Gas lift valves Zone isolation/re-perforating
Sand screen repair Scale squeeze/hydrates soak
Tubing/seal failure-mechanical Scale mill-out
plugs/patches (well integrity) Well stimulation
Downhole video/camera surveillance
Perforating
E-line plug setting/removal/sand removal
Pressure/temp flow monitoring
Downhole seismic calliper survey
Well logging

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Related Operations with Intervention Assets

Xmas tree recovery/installation

Xmas tree/wellhead maintenance
Choke change-out
Light construction
Saturation diving (inspection, repair & maintenance)
ROV support services

Future Applications of Some Intervention Assets:

Through tubing well intervention
Top hole drilling
Extended top hole drilling
Riserless Mud Return
Subsea Rotary Controlled Device
Well flowback and Well testing
Subsea Construction

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Downhole Well Intervention Solutions

Straddles or patches to Milling or high pressure

repair tubing jetting to remove scale

Milling and underreaming

Wellbore cleanout, fill to remove wellbore scale
Wellbore unloading removal with long or
with nitrogen reverse circulation
Formulation matrix or
fracture stimulation

Heavy duty fishing with

simultaneous removal Perforating long sections
of fill

Selective zonal isolation,

mechanical or chemical
Helix Intervention Industry Firsts

First Subsea Intervention Lubricator

operations in the North Sea
First build and launch of dedicated
intervention vessel - Seawell
First coil tubing deployed on a
subsea well from a rig alternative
monohull
Build and operation of prototype
vessel Q4000
First rig alternative decommissioning
of offshore production facility with
multiple subsea wells
First application of Huisman
multipurpose tower
Growing Market

As production goes to deeper water, subsea well count grows.

As the number of subsea wells increase and they age, the demand and
frequency of required servicing through intervention grows.

The market is in its infancy with huge growth potential.

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Well Intervention Demand Drivers

Global subsea trees by onstream year

700
607
600
497
500 Declining shallow water
396 407
400 344 361 340 resources have spurred
262 285 technical advances that allow
300
200
offshore exploration and
production in deeper, harsher
100
environments
0
2007A 2008A 2009A 2010A 2011E 2012E 2013E 2014E 2015E New discoveries and
pressure to improve recovery
Global offshore rig count rates from developed fields
increase demand for subsea
500
412 429 intervention
379 396
400 361 361 348
336
321 Subsea trees are expected to
300 increase at an 18.3% CAGR
200 and global offshore rig count
is expected to increase at a
100 5% CAGR from 2010 to 2015
0
2007A 2008A 2009A 2010A 2011E 2012E 2013E 2014E 2015E

The global subsea intervention market is expected to expand as the focus of offshore drilling shifts
to more challenging environments
Source: Spears & Associates, Quest Offshore Resources 8
Intervention Needs Rises with Subsea Well Count

Subsea wells installed base (2002 2012)

7,000
Installed subsea completion base over 5 yrs 6,500
old
Installed subsea completion base 5 yrs Need for intervention typically
6,000 or younger occurs after 5 years of
production, due to:

5,000 3,000 Reduced pressure in wells

Increased water or sand
production
4,000
3,500 Scaling in wells
Other factors
3,000 Oil wells generally have a
1,700 +94% greater need for intervention
than gas and injection wells
2,000 1,800
3,500
1,200 +200
1,000 % 1,800
600
0
2002A 2007A 2012E
Note: Total installed base includes all subsea well completions from 1990, not adjusted for wells decommissioned 2007-2012

Source: Quest Offshore Resources

Market Outlook for Well Intervention

Subsea well intervention expenditures

$4,000 $3,752
$3,446
$3,100
$3,000 $2,630
$ in millions

$2,230 $2,305
$2,000 $1,786
$1,043
$1,000

$0
2007A 2008A 2009A 2010A 2011E 2012E 2013E 2014E

Subsea intervention demand driven by increasing activity and rising

subsea well counts
Maintenance intensity expected to rise as greater share of production
moves into deepwater fields and as operators face increasing oil
recovery needs from maturing fields
Global expenditures on intervention are expected to grow 11% annually
from 2009 to 2014, reaching nearly $3.8 billion

Source: Douglas-Westwood 10
2011 Market for Well Intervention Services

Norway
SS Intervention spend: $303mm
Offshore rigs: 19
Offshore wells drilled: 188

United Kingdom
SS Intervention spend: $272mm
Offshore rigs: 16
North America Offshore wells drilled: 157
SS Intervention spend: $470mm
Offshore rigs: 31
Offshore wells drilled: 260 Asia Pacific
SS Intervention spend: $375mm
Offshore rigs: 80
Offshore wells drilled: 1,072

Latin America
SS Intervention spend: $427mm
Offshore rigs: 88
Offshore wells drilled: 572 Africa
SS Intervention spend: $746mm
Offshore rigs: 37
Offshore wells drilled: 531

Source: Douglas-Westwood, Spears & Associates 11

Regulatory Limitations

Vessel Class Many independent classing societies

Most Prominent DNV (Det Norske Veritas),
ABS (American Bureau of Shipping)
MODU Notation Specific requirements for a vessel used in intervention
including zoning for handling hydrocarbons.
Government No international standard. All strictly enforced by each country.
Prescription vs. Safety Case

Client Every client and sometimes every engineer has a different set of
compliance standards. Now driven by SEMS.

Industry Many depositories of guidance principles.

Voluntary Compliance
Generally accepted by Industry but different clients will look at different
sets of guidance.
APL Most generally accepted.

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Wireline Deployment via SIL

7-3/8 bore, 10ksi WP single trip

600 m water depth rated
Various wireline & coiled tubing modes
with sub-modes (long and short tools,
etc.)
Live well decommissioning & stimulation
modes
Balanced stabs with valves
Modular design
LRA / URA VXT, HXT & CT riser
URA only VXT wireline
Dual BOP position
18.5 m or 22 m toolstrings
Norwegian compliant
Except DNV-E-101 re: QOD
Minor lessons learned in next version

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SIL Overview MUX Controls

MUX EH control system

Mode Screens
Auto Set Interlocks
Configuration, Set Up & Test, Lifting Ops
Slickline, Braided Line & Riser

ROV electronics technology

Grease system same as Seawell & Enhancer

Not electric pump - seawater powered from surface
No wireline shear upon subsea comms failure
6hrs POOH batteries & surface grease pump
Auxiliary umbilical option to LRA / URA & extend

ROV controls
Full LRA WCE
Primary URA safety functions

Client Mimic Screen

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Intervention Riser System for CT Deployment

As water depth increases, the cost of intervention increases. If a problem

is encountered, wireline alone is limited in being an effective remediation
tool.

To run coiled tubing into a well requires either an absurdly complicated

well head mounted system or requires a riser back to the surface. This
creates an extremely complicated interface occurring between the
stationing riser and a mooring vessel. These relative motions and the fact
that the interface between the wells high pressured hydrocarbons and
the low ambient pressures on the vessel creates technical challenges.

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Helix Coiled Tubing Setup

Multi Purpose Tower

MPT

Compensation
Frame CCTLF

Flow Tee and Swivel

Riser Centraliser

Moonpool Joint

Fatigue Enhanced Riser

Mid Joint Connector

Stress Joint

SIL including EDP

Assembly
Vessels Category A Intervention

Category A Wireline only deployed via a SIL. Typically, a monohull due to

capital cost and cost of transit.

Smaller the better to keep costs down commensurate with limited

capability.
Limited deck area required for necessary equipment. $110 million and
larger typically.
Operability limited if size is so small that motions become too great for
safe operating. Has even greater effect in harsh environments
Water depth is limited by seal technology and cost associated with
complexity of system required to accommodate depth.

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Vessels Category A+ Wireline

Category A + wireline and coiled tubing deployed via SIL and sub 7 riser,
i.e. drill pipe. Also typically, a monohull.

Greater capability with CT but unable to work full bore 7 which restricts
what can be done.
Advantage of being smaller and lower cost.
Motions are high thus complexity is difficult.
High motions result in narrow operating envelope resulting in more
down time and higher risk if emergency disconnect is required. Smaller
vessel makes it difficult to be able to operate on station in high seas.
High motions adds to safety risk, i.e. man riding.

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Vessels Category A++ Intervention

Category A ++ - Wireline and CT deployed via a 7 riser.

Has full bore capability with coiled tubing through full 7 bore of the
well.
May have limited capability of pulling tubing.
Size of the vessel increases deck space required for equipment and
riser handling.
Larger size vessels handle sea motion better.
System required to compensate for motions is still relatively complex.
Overall cost is now getting high.

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Vessels Category B Intervention

Category B Semi Submersible

Ample deck area

Motions are the best and allows for less complexity and risk in systems
design.
Greatest number of applications possible.

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Industry Considerations

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Conclusion

Determining which solution makes sense is a balance between

small, low cost vessel with a complex high risk system. (Technology
is not fully developed)

Or

Larger, high cost vessel with simpler low risk system.

Primary Focus: Semi Platform Deploying IRS

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Colin Johnston, Helix Well Ops Senior Engineer

Well Intervention
Fleet Overview
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Well Intervention Assets

MSV DP3 Well Enhancer Vessel of opportunity

MSV DP2 Seawell

MODU DP3 Q4000

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Providing World Class Intervention Services

Helix is the leader in subsea through-tubing

intervention
Global Reach
24 years experience in the North Sea on more
than 600 wells
14 years experience in the Gulf of Mexico on
more than 100 wells
5 years experience in Australia & Sea East Asia
on more than 20 wells
Successful application of prototype equipment
Q4000 IRS, HFRS, MPT, VDS
Well Enhancer
Track record of cooperative contracting and
scheduling
Gulf of Mexico
North Sea Collaboration Multi client
Helix Well Containment Group
Proven capability to manage:
Marine vessels,
Crewing
Subsea systems
Subsea controls, downhole services, diving,
construction, and WROV operations
Well Enhancer CT system
WOUS IRS MUX upgrade

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History and Evolution Seawell

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History and Evolution Well Enhancer

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History and Evolution Vessels of Opportunity

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History and Evolution Q4000

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Where the value is found

Efficiency Main Driver

Time efficient
Cost efficient
Campaign Based
Shared across BU, Assets,
Operators
Broad Functionality
Minimal Built-ins
Variable deck lay out
Construction Support
Construction and well intervention
capability
Seabed access and recovery
Emergency Response
Knowledgeable, integrated crews
Integrated Onshore Management
Assessment and investment in new
technology
Integration of Technology
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Seawell Light Well Intervention Vessel

Active heave-comp Derrick

Twin Crane & Well
18 man saturation Services spread:
1 x WROV Slickline
1 x Obs ROV E-line
Pumping
Accommodation (122) Well test
& project offices

114m
Derrick Lifting Capacity 80Te Main deck
Crane 130Te (twin lift) (Client supplied)
2 x 15k psi OPI triplex pumps Below deck
2 x drill water tanks 258m3
4 x bulk fluid tanks 240 m3 (1509 bbl)

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Well Enhancer Light Well Intervention Vessel

Active heave-comp Tower, Crane, Riser Handling & Skidding system Well Services
spread:
Slickline
E-line
Accommodation (120) Pumping
& project offices Well test
18 man saturation Coiled Tubing
1 x WROV
1 x Obs ROV

Tower Lifting Capacity 100Te Main deck

132m Crane 150Te 1 x bulk fluid tank 150m3 (943bbls)
2 x 10k psi SPM600 pumps Below deck
2 x drill water tanks 90m3 each
1 x bulk fluid tank 190m3

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Subsea Intervention Lubricators (SILs)

7 3/8 SIL in the Well Enhancer Tower 7 1/16 SIL in the Seawell Derrick 5 1/8 SIL in the Seawell Derrick

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 Well Enhancer Overview

Tower, Riser Handling Crane & Well Services

& Skidding systems
Slickline
E-line
Pumping
Well test
Coiled Tubing

2 x SPM600 673kw 10k pumps Tower Lifting Capacity = 150Te

Helix 1Danny
x s/steel frac
pipe-in-pipe tanks = 200
welding m3fabrication
On-site (1260 capabilities
bbl) Tower Active Heave Comp = 130Te
Aerial view of Ingleside Shore Base
2 x drill water tanks = 190m3 Crane = 100Te
Deck tanks = >266m3 Guide Line Tensioner = 4 off (10te)
Active Pod Line Tensioner = 2 off (15te)
Well Enhancer Coiled Tubing Setup

Multi Purpose Tower

MPT

Compensation
Frame CCTLF

Flow Tee and Swivel

Riser Centraliser

Moonpool Joint

Fatigue Enhanced Riser

Mid Joint Connector

Stress Joint

SIL including EDP

Assembly
Q4000 DP3 MODU Semi-submersible

Active heave-comp Tower, Crane,

Riser Handling & Skidding system Well Services spread:
Slickline
E-line
MPT Tower Lifting Pumping
Capacity 600 mT Well test
Active and Passive Heave Coiled Tubing
Comp
360 mT Huisman crane
with
10,000 ft capacity traction Accommodation (133)
winch & project offices

4,000 mT variable main deck load

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Well Ops 7-3/8 Intervention Riser System

7 3/8 system internal

diameter
Standard Riser 6 5/8 pipe
10,000 psi rated
Dual barrier in Lower Riser
Package (LRP)
Emergency Disconnect
Package (EDP)
Retainer valve at EDP
Annulus hose or 2 3/8 tubing
Direct and MUX Hydraulic
Controls
Future Vessels

Through tubing well intervention

Top hole drilling
Extended top hole drilling
Riserless Mud Return
Subsea Rotary Controlled Device
Well flow back, well testing
Subsea construction
Subsea processing support
Open Water Completions
Kurt Hurzeler, Helix Well Ops Commercial Manager

Well Intervention
Methodologies
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Consistent Success Requires

Critical Skill Sets Vessel Functions

Specialized vessels and vessel Adequate usable Deck space
management Adequate Accommodation
Down hole & Service Options Certified and classed for
expertise hydrocarbons on deck
ROV expertise Lifting Capacity and Stability
In-house Subsea expertise Heavy weather dynamic positioning
Construction expertise Fluid storage and handling
Saturation Diving expertise
Multi Functional Crew Management IRS tubular handling and tensioning
Where the Value is Found

Facilitate Wellbore Access

Flexibility of system to interface with all subsea well types with minimal
modification.
Provide systems on a day rate basis to reduce end users cost
Minimize complication, deployment and testing time
Reduce rig requirements and costs
Reduce Decommissioning Liability
Lower cost well abandonment
Reliable and successful completion
Improve Intervention Response
Provide a rig alternative with 4 season capability.
Minimize mobilization, demobilization and transit time
Pre-engineer capability to allow rapid response for clients needs
Stay in the field
Provide Surveillance & Flow Assurance
Reduce access costs for subsea production evaluation
Reduce Inspection, Repair & Maintenance (IRM) Costs
Where the Value is Found

Campaign Based
Shared costs across BUs, fields and operators
Reduced transit time
Minimal port and duty costs
Construction Support
Ability to carry out construction and well intervention
Lift and/or transport heavy equipment from port to location, install via
crane or drill pipe, assist platform operation
Emergency Response
Offshore fire fighting, diving and ROV support
Ready availability, construction, accommodation, intervention and
general operations support
Operational overview Seawell North Sea

The Client objective was to maximise

the operational functionality of the
MSV Seawell in order to complete the
following well workscopes:

Mechanical repair/well
maintenance/integrity
Production logging
Mechanical repair/well
maintenance; tree change-out;
well integrity
Well suspension operations
(temporary abandonment)
3 x well P&A and wellhead
removal
Pumping scale-squeeze
operations
Operational overview Seawell North Sea

5 1/8 SIL in the MSV Seawell Derrick

In field 16 days Highlander Field
In field 16 days Tartan Field
In field 14 days Enoch / South Wood
In field 17 days Claymore
In field 9 days Tweedsmuir
Seawell Operation summary

Number of well locations = 7

Water depth range = 90 141m

Full demobilisation of 5 1/8 SIL in order to mobilise 7 1/16 SIL for TNT

Total days = 68
Vessel off-hire 0 days
Wait on Weather 9.5 days
Uptime 58.1 days

Well-work completed:
4 Interventions (Well Maintenance & Production Enhancement)
3 wells P&Ad (Decommissioning)
All the above workscopes were supported with Saturation Diving operations

All procedures developed and work supported by in-house WOUK project engineers
Q4000 Gulf of Mexico Snapshot
Q4000 Gulf of Mexico Snapshot
Deck Space- More is Better

Q4000 Deck Layout for Well Stimulation

Intervention Deck Space and Positioning

Drilling module roofs with complete coiled tubing system,

E-Line, Slick Line, fluids and second WROV system
Critical Components Remain Onboard

Coil-tubing Lift Frame

Intervention Riser Package
Flowhead
H4 Connector
Riser
3rd Party Service Equipment
Construction - Dock to Seabed

280 MT Manifold being deployed

Construction - Concurrent Operations

Seabed debris recovery

Flowline plug and burial
Debris cap recovery and
Flowline clean out
reinstall
Jumper disconnect and
recovery
Q4000 Versatility and Capabilities

Dynamic Kill Static Kill

Oil & Gas Burn Arrived in staging area within

SIMOPS
3 days of call-off
Multi functional and ease of
adaptability between operating
modes
Containment
Dynamic Kill
Flaring
Static Kill
Recovery
Control platform for
LMRP/BOP yellow pod
Summary

Helix Well Ops Provides

A unique combination of specialized skills and equipment
A clear understanding of Client value
Recognition of operational technical limits
The means, ability and experience to manage and control diverse assets and
personnel effectively and reliably